Candlestick charts are used by traders to determine possible price movement based on past patterns.
Candlesticks are useful when trading as they show four price points (open, close, high, and low) throughout the period of time the trader specifies.
4 Data Points in Candlestick Pattern:
OPEN – The Opening Price.
HIGH – The Highest Price over a fixed time period.
LOW – The Lowest Price over a fixed time period.
CLOSE – The Closing Price.
A hammer is a candlestick pattern that plots on the indicator chart when the security trades are low than openings. This pattern draws hammer-shaped candlestick pattern in which shadows are at least twice the real size of the pattern body. Hammer has a small body, it occurs when the price is dead.
It is a visual pattern that has three candlesticks. It follows a downtrend and it indicates the startup of an upward climb. It is a sign of a reversal candlestick pattern. It is made up of tall black candlesticks that have short bodies and long wicks. One of the morning stars captures the moment of the market.
Morning doji star
It is a bullish candlestick pattern. This pattern is similar to the morning star pattern. It also consist of a long bearish candle, it has characteristics to gap down between different candlesticks. It consists of three bodies, the first stick has long black bod, the second bar opens it open near the lower point and the last one is for the final midpoint of the candlestick pattern.
It is a type of candlestick pattern which opens when the security opens in the market trend. It is a bearish trend because price rises many times during a day but the sellers push the price back at its original place.
It is a stock price candlestick pattern.it is used for technical analysis when the trend is going for a reversal pattern. It also contains three bodies, a large body, a small body, and a red body candle. It is related to up trend and downtrend in the market trend. It is used to detect future price lines. This pattern is also a reliable technical trend pattern. This star is opposite to morning star. One of them is bullish and the other one is bearish.