Glossary
Candlestick Patterns
Visual price-chart formations used to identify potential reversals or continuation signals.
Candlestick patterns such as doji, hammer, engulfing, and morning star provide clues about market sentiment. They are most reliable when confirmed by volume, support/resistance, or trend context.
Key Points
- A doji signals indecision and possible reversal.
- Engulfing patterns show a shift in momentum.
- Always backtest pattern-based rules before trading them.