A candlestick consists of three main points: closing price, opening price, and wicks. Candlestick indicates the direction of price, either bullish or bearish, showing information about price action.

  1. Open price: opening price indicates the first traded price of a specific pair exchanged during that time

  2. Close price: closing price indicates the last traded price of a specific pair exchanged during that time.

  3. Wick: wick indicates the variation in price relative to a specific pair’s opening and closing price.

Types of candlestick patterns

Candlesticks patterns are categorized into two major types based on the direction of the trend.

1. Bullish candlesticks patterns

2. Bearish candlesticks patterns

These two patterns are further classified into trend reversal, trend continuation, and ranging market patterns.

There have 37 Candlestick patterns

With next posts Lets talk about what are they.

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