Types of candles in trading
Perforating Line: This is a candlestick that has a long lower wick and a small body that closes above the midpoint of the previous candlestick. It is often interpreted as a signal of a possible trend change.
Shooting Star: It is a candlestick that has a long upper wick and a small body that closes below the midpoint of the previous candlestick. It is often interpreted as a sign of a potential top.
Engulfing Pattern: An engulfing pattern is a two candlestick pattern in which the second candlestick completely engulfs the first candlestick. It is often interpreted as a sign of a trend reversal.
Harami Pattern: A two candlestick pattern in which the second candlestick is contained within the body of the first candlestick. It is often interpreted as a sign of indecision or a possible change in trend.