Candlestick Pattern Ultimate Guide 2023

Check out complete guide about candlestick pattern which can apply in stock, forex, and crypto currency trading, including cheat sheet.

Complete Guide of Candlestick Pattern 2023

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What is Candlestick Pattern?

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Candlestick charts are the most basic tool in technical analysis. This is because candlestick charts do not interfere with almost any chart format, but they characteristically show the stock price movement of the day. This is the oldest technical analysis tool in use today, and is said to have been created by a man named Munehisa Honma in the 18th century.

Meanwhile, according to Steve Neeson, who first introduced candle charts to the West, it is unlikely that Munehisa Honma, widely known as the developer of candle charts, was the actual developer, and it is speculated that it was only in the Meiji period of the 19th century, about 100 years after Munehisa Honma’s death. do. Originally, Honma Munehisa’s Five Methods of SAKEDA was a type of wave theory that was created while analyzing the patterns of Micah in the Osaka area, but as this was later explained through candle charts, it seems as if he was confused as the developer of candle charts.

Meanwhile, candle charts, which had been used on a small scale by some during the Meiji era, became widespread throughout modern Japan day by day due to the development of the Japanese financial industry, and over a hundred years later, as Japan became an economic powerhouse, it became an investment technique not only in Japan but also in many countries. It has been ranked.

A candle is largely composed of an opening price, closing price, high price, and low price. The opening price represents the price at which the stock price started that day, and the closing price represents the last traded stock price that day. The high price represents the highest price of the day and the low price represents the lowest price of the day.

Although it is made from only four pieces of data, there are dozens of types of candles that can be created by combining these four pieces, and each has a different meaning. Basically, the upper tail means selling and the lower tail means buying. Conversely, the upper body indicates a buying trend and the lower body indicates a selling trend. Candlestick charts are a very convenient tool for simply showing the competition between buying and selling forces of the day and are the most basic tool for technical analysis, but most people use them with only a superficial understanding of them.

List of all Candlestick Pattern

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• Hammer Candle Pattern
• Inverted Hammer Candle Pattern
• Doji Candle Pattern
• Dragonfly Doji Candle Pattern
• Gravestone Doji Candle Pattern
• Morning Star Candle Pattern
• Evening Star Candle Pattern
• Shooting Star Candle Pattern
• Bullish Engulfing Candle Pattern
• Bearish Engulfing Candle Pattern
• Hanging Man Candle Pattern
• Spinning Top Candle Pattern
• Reversal Candle Pattern

Bullish Candlestick Patterns

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Bearish Candlestick Patterns

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