Candlestick is used to understand trading patterns. Know about Candlestick Patterns and Their Types.
A pattern is the repetition of a certain kind of event that gives a certain way of indicating what is to come next.
Let us tell you that in the stock market, the technical analyst decides his trade based on the pattern only.
The pattern consists of two or more candles arranged in a particular way. The pattern can also be understood from a candlestick.
Candlestick patterns can be divided into two parts single candlestick patterns and multiple candlestick patterns.
Types of single candlestick patterns: 1- Marubozu 2- Doji 3- Spinning Tops 4- Hammer 5- Hanging man 6- Shooting Star
Types of Multiple Candlestick Patterns 1- Engulfing pattern 2-Harami 3-Piercing Pattern 4- Dark cloud cover 5- Morning Star 6- Evening Star
Let us tell you that candlestick patterns help a trader or investor to strategize a trade and create an attitude.
In these candlestick patterns, the risk strategy as well as the entry and stop loss signals about the price.