A candlestick is a charting technique used in financial markets to represent the price movement of an asset, such as stocks, forex, or commodities. Each candlestick typically shows the opening, closing, high, and low prices for a specific time period. The body of the candlestick represents the price range between the opening and closing prices, while the "wick" or "shadow" indicates the high and low prices during the period. Candlestick charts are widely used for technical analysis by traders to analyze trends and make informed decisions.
TYPES OF CANDLESTICK PATTERN
1.Single candlestick pattern
2.double candlestick pattern
3.triple candlestick pattern
SINGLE CANDLE STICK PATTERN
A single candlestick pattern is like a snapshot of how the price of a financial asset changed in a specific time period. For example, a "doji" shows that the opening and closing prices were very close, signaling uncertainty in the market. Each pattern gives a quick visual clue about the mood of traders during that time.
Hammer
Hammer is single candlestick pattern its appear bottom end of Down trend. chart pattern indicate trend reversal (Down trend to Uptrend)
Inverted Hammer
inverted hammer is single candle stick pattern its appeared bottom end of down trend.it indicate trend reversal (downtrend to uptrend)
Other candles we can discuss next blog
I hope you understood
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