Candlestick Patterns

Candlestick patterns are a form of technical analysis used in the stock market and other financial markets to predict future price movements. Candlestick patterns are created by plotting the opening, high, low, and closing prices of a security over a specific period of time. The patterns are then used to identify potential reversals in the market, as well as potential breakouts and continuation patterns. Candlestick patterns are often used in conjunction with other forms of technical analysis, such as trend lines, moving averages, and support and resistance levels.

History of Candlestick Patterns

Candlestick patterns have been used for centuries by Japanese rice traders. The patterns were first introduced to the West by Steve Nison in his 1991 book, Japanese Candlestick Charting Techniques. Since then, the patterns have become popular among traders and investors around the world. Candlestick patterns are now widely used in the stock market, forex market, and other financial markets.

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Summary

Candlestick patterns are a form of technical analysis used to predict future price movements in the stock market and other financial markets. The patterns are created by plotting the opening, high, low, and closing prices of a security over a specific period of time. Candlestick patterns are often used in conjunction with other forms of technical analysis, such as trend lines, moving averages, and support and resistance levels. For more information on candlestick patterns, visit Investopedia, Investing.com, and StockCharts.com.

See Also

• Technical Analysis
• Trend Lines
• Moving Averages
• Support and Resistance Levels
• Price Action
• Chart Patterns
• Volume
• Indicators
• Oscillators
• Fibonacci Retracements

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