Understanding The 10 Key Reversal Candlestick Patterns

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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. The recognition of the pattern is subjective and programs that are used for charting have to rely on predefined rules to match the pattern. There are 42 recognized patterns that can be split into simple and complex patterns.

We cut through the noise and introduce you a detailed guide to 10 most highly used candlestick reversal patterns and explain how to use them in your day trading.  Doji, Hammer ,Hanging man and Shooting Star just to name a few.