What Are Candlestick Charts?
Candlestick charts originated in 18th century Japan for rice trading. Each candlestick shows four key price points for a specific time period:
- Open: Starting price
- High: Highest price reached
- Low: Lowest price reached
- Close: Ending price
Pattern Explorer
Hammer
Ein Hammer bildet sich am Ende eines Abwärtstrends. Er hat einen kleinen Körper oben und einen langen unteren Docht, der zeigt, dass Käufer die Preise wieder nach oben gedrückt haben.
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Pattern Categories
Bullish Patterns
Signal potential upward price movement. Look for these at the bottom of downtrends.
- • Hammer
- • Bullish Engulfing
- • Morning Star
- • Three White Soldiers
Bearish Patterns
Signal potential downward price movement. Look for these at the top of uptrends.
- • Shooting Star
- • Bearish Engulfing
- • Evening Star
- • Three Black Crows
Neutral Patterns
Signal market indecision. Often precede significant moves in either direction.
- • Doji
- • Spinning Top
- • Inside Bar
Trading Tips
Do
- • Wait for confirmation before acting
- • Consider the overall trend context
- • Combine with other indicators
- • Use proper risk management
Don't
- • Trade patterns in isolation
- • Ignore volume as confirmation
- • Forget about support/resistance
- • Over-leverage based on one pattern
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Key Takeaways
Candlestick patterns show the battle between buyers and sellers in a visual format
Context matters - the same pattern can mean different things in different trends
Always wait for confirmation before entering a trade based on patterns
Combine candlestick analysis with other indicators for best results
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