• Open
• High
• Low
• Close

A candlestick consists of:

• Real body (the wide part): Shows the range between the open and close.
• Upper shadow: The high of the session.
• Lower shadow: The low of the session.
• Bullish candle: Close is higher than the open.
• Bearish candle: Close is lower than the open.

How to Read Candlestick Chart Patterns

• Large real bodies indicate strong buying or selling pressure.
• Small bodies suggest consolidation or indecision.
• Long shadows show price volatility during the session.

Candlestick chart patterns are powerful because they give immediate visual insight into market sentiment and potential reversals. Traders use these patterns to time entries and exits effectively.

Summary

Candlestick chart patterns provide one of the most effective ways to visually interpret price action. Unlike simple line or bar charts, candlesticks instantly reveal who’s in control—buyers or sellers—giving you real-time insight into market psychology.

When you understand these patterns, you can:

• Avoid emotional trading by relying on visual cues backed by market behavior
• Spot momentum shifts before they fully develop
• Identify potential reversals at key support or resistance zones
• Time your entries and exits with greater precision

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