Candlestick patterns are visual tools used in technical analysis to interpret price movements and potential market reversals or continuations. They consist of individual candles that display the open, high, low, and close prices for a specific period, with various formations signaling bullish or bearish sentiments. Common patterns include doji, hammer, shooting star, engulfing, and morning/evening stars, each providing traders with insights into market psychology and potential future trends. Recognizing these patterns can help traders make informed decisions about entry and exit points in the market.