16 Must-Know Candlestick Patterns for a Successful Trade


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The technical analysis proposes various tools to help traders determine trends and anticipate their reversals. Besides technical indicators, another great approach to analyzing the price action is the candlestick chart and its patterns.
As you may know, there are several ways to display the historical price of an asset, be it a forex pair, company share, or cryptocurrency. The three most popular chart types are the line chart, bar chart, and candlestick chart. Most traders prefer the latter since it can provide great patterns that anticipate trend reversals or continuations with a certain degree of accuracy.
A candlestick pattern is a movement in an asset’s price shown graphically on the candlestick chart to anticipate a specific market behavior. Traders observed that the price had moved in similar ways when specific patterns preceded on the candlestick chart. So, they isolated these patterns and organized them into different categories to be used as technical analysis tools. But, what’s a candlestick is all about?
What Is A Candlestick?
A candlestick chart is a method of displaying the historical price movement of an asset in time. Each candlestick represents a certain period, depending on the time-frame selected by the trader. For example, if you set the D1 chart, each candlestick stands for one day.
Researchers agree that a Japanese rice trader was the first to conceptualize candlestick. While the abstraction of candlesticks was subsequently reached to the Western world with Steve Nison’s book titled “Japanese Candlestick Charting Techniques.”
Here are several vital components that make the price analysis intuitive to comprehend the candlestick’s purpose.

Candle Body
The body represents the open and close price of an asset. The open or close points’ position depends on whether the candlestick and hence the price is bullish or bearish in a given period. In a bullish market, the close will be above the open and vice versa.