Candlestick Patterns Every Trader Should Know

Candlesticks show open, high, low, and close prices. Green/white candles close higher than open (bullish); red/black candles close lower (bearish).

Doji candles have nearly equal open and close, showing indecision. They often appear at turning points and signal potential reversals.

Hammer and hanging man patterns have small bodies with long lower wicks. Hammers at lows are bullish; hanging man at highs is bearish.

Engulfing patterns occur when a candle completely covers the previous one. Bullish engulfing at lows signals reversal up; bearish engulfing at highs signals reversal down.

Always confirm candlestick signals with other indicators, support/resistance levels, or volume. Single patterns are less reliable than patterns with confirmation.