Recognizing 50+ Candlestick patterns
Description
Candlestick patterns are representations of price action. They're called "candlestick" patterns because they are displayed as candles on a chart, with the body of the candle representing the range between the opening and closing prices and the wicks representing the high and low prices for the period.
There are several different candlestick patterns that can be used to identify potential trends and reversals including the doji, hammer, hanging man, and shooting star patterns. Each pattern has its own specific characteristics and can indicate different things about the crypto.
Doji pattern is a candle with a small body and long wicks on both sides, indicating indecision or a lack of trend.
Hammer pattern is a candle with a small body and a long lower wick, indicating a potential trend reversal.
Hanging man pattern is similar to the hammer pattern, but occurs at the top of an uptrend and can indicate a potential trend reversal.
Shooting star pattern is a candle with a small body and a long upper wick, also indicating a potential trend reversal.
Use in combination with our other tools, such as support and resistance levels, to gauge a more complete picture of the market.
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