Most Important Candle Patterns:

1. Hammer:

Long lower wick, small body. Usually appears at bottoms and indicates the possibility of a rise.

2. Hanging Man:

Similar to the hammer but appears after a rise, and may indicate a bearish reversal.

3. Bullish Engulfing:

A green candle that completely covers a previous red candle, a strong signal for a bullish reversal.

4. Bearish Engulfing:

A red candle that completely covers a previous green candle, a potential bearish signal.

5. Doji:

Very small body (open ≈ close), reflects indecision in the market.