Candlestick patterns consist of small clusters of 1 to 5 candlestick bars, which offer predictive value on the direction of the short term price action.
In this guide, I will cover all the major reversal and continuation candlestick patterns, and what are the best strategies to use them to pinpoint your entries and exits in trading.
Before delving into the various candlestick patterns, let us first familiarise with what candlestick bars and patterns are, and the different types of candlestick patterns.
They indicate a pause or change in direction of the prevailing short-term trend. Here is a long list of all the major reversal candlestick patterns:
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They indicate a temporary pause before a resumption of the prevailing short-term trend. Here is a long list of all the major continuation candlestick patterns:
After learning all the different candlestick patterns, the next step is to incorporate this into your trading, to increase the precision of your market timing and to better pinpoint your entry and exit levels.
Conclusion
I hope you have enjoyed this guide on candlestick patterns and how to trade them.
Now I’ll like to hear from you: what is your key take-away from this trading guide?
Which part of candlestick patterns are you struggling with the most?
Which is your favourite candlestick pattern that you use the most in your trading?
Are there any other candlestick patterns that we have missed out?
Let me know by leaving a quick comment below right now.
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