Six bullish candlestick patternsīullish patterns may form after a market downtrend, and signal a reversal of price movement. There are a great many candlestick patterns that indicate an opportunity within a market – some provide insight into the balance between buying and selling pressures, while others identify continuation patterns or market indecision.īefore you start trading, it’s important to familiarise yourself with the basics of candlestick patterns and how they can inform your decisions. Over time, individual candlesticks form patterns that traders can use to recognise major support and resistance levels. The color, which reveals the direction of market movement – a green (or white) body indicates a price increase, while a red (or black) body shows a price decrease.The wick, or shadow, that indicates the intra-day high and low.The body, which represents the open-to-close range.This article focuses on a daily chart, wherein each candlestick details a single day’s trading. Candlestick charts are one of the most popular components of technical analysis, enabling traders to interpret price information quickly and from just a few price bars. A candlestick is a way of displaying information about an asset’s price movement.
