Basic stock market lessons

Candlestick
Patterns

introduction

Patterns in technical analysis

Chart Patterns plays an important role in technical analysis to predict the momentum and sentiments of the stock market. Candle stick patterns are formed graphical representations of price movements for a given period of time. They are commonly formed by the opening, high, low, and closing prices of a financial instrument.

Chart patterns can be of two types, continuational and reversal in nature. Some patterns are that are formed in the past gives a hint about what will happen in the near future.

Reversal & Continuation

Traditional Chart Pattern

Included in this type are the most common patterns such as reversal and continuation patterns :

Fibonacci aspects

Harmonic Pattern


Harmonic Pattern utilizes the recognition of specific structures that possess distinct and consecutive Fibonacci ratio alignments that quantify and validate harmonic patterns.

simple and complex patterns

Candlestick Pattern

In technical analysis, a candlestick pattern is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement.

Reversal

Reversal

Reversal

Reversal