Traders rely on candlesticks because they convey a great deal of information as regards to the price action for each trading period in a visual format making it easy to interpret, allowing traders to compare the behavior of price in different time periods with a quick glance at a chart.
Each candlestick details is a significant part of the developing price structure. They communicate the “market sentiment”: whether (and to what extent) bears or bulls were in control, and how far traders managed to push price in both directions.
For example, a long candle’s body with no wicks indicates a strong shift in the struggle for power, whereas a candle with a long upper wick beyond its body indicates a more contentious period with an effort by bulls to push price higher that was pushed back by pressure from bears before the close of the candle.
Therefore, certain re-occurring candlestick patterns have become popular among traders as reliable signals of future market behavior. The ability to read candlesticks allows the price action trader to become a meta- Strategist.
Yes, the understanding of candles stick patterns is important and they help Traders, so they work.
