Candlestick patterns are visual representations of price movements in financial markets (like crypto, stocks, or forex) that help traders understand market sentiment and make predictions about future price movements.

📊 What is a Candlestick?

Each candlestick shows the price movement for a specific time period (like 1 minute, 15 minutes, 1 hour, 1 day, etc.) and is made of 4 key parts:

  1. Open – the price at the start of the time period

    Close – the price at the end of the time period


    High – the highest price reached during that period

    Low – the lowest price during that period

    A candlestick has:

  2. Body – area between open and close

    Wicks (or shadows) – lines showing the high and low

🟩 Green candle: price closed higher than it opened (bullish)

🟥 Red candle: price closed lower than it opened (bearish)

🧠 What Are Candlestick Patterns?

Candlestick patterns are specific formations made by one or more candles that can signal a potential price move.

They are generally divided into two types:

1. Bullish Patterns (may signal price going up)

  • Hammer 🔨

    Bullish Engulfing

    Morning Star

    Piercing Pattern

    2. Bearish Patterns (may signal price going down)

Shooting Star 🌠

  • Bearish Engulfing

    Evening Star

    Dark Cloud Cover


    ⚠️ Important:

  • Patterns don't guarantee price direction. They're just signals.

    Always use with other tools like support/resistance, volume, RSI, etc.

Look at the picture:- 👉🏼

Here’s a sample candlestick chart showing basic price movement over 10 days.

You can see:

Green candles = price went up (close > open)

Red candles = price went down (close < open)

Wicks = the thin lines showing the high and low of the day

If you want, I can now show examples of famous candlestick patterns like:

Hammer

Doji

Engulfing

Shooting Star

With explanation.

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