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Educational Lesson Candlestick patterns are divided into two categories: Positive: 1️⃣ Bullish Continuation Candlestick Patterns These occur in an uptrend and indicate the continuation of the rise. 2️⃣ Bullish Reversal Candlestick Patterns These occur in a downtrend and indicate a reversal to bullish. -- Negative: 3️⃣ Bearish Continuation Candlestick Patterns These occur in a downtrend and indicate the continuation of the decline. 4️⃣ Bearish Reversal Candlestick Patterns These occur in an uptrend and indicate a reversal to bearish.