Candlestick Patterns
Candlestick patterns are specific formations created by one or more candlesticks that signal potential trend reversals or continuations. Each candle shows open, close, high, and low prices for a time period.
Understanding the Concept
Candlesticks are the language of the market. A hammer at support? Buyers just stepped in hard. A shooting star at resistance? Sellers took control. These patterns work because they represent actual supply and demand battles. The wick shows rejected prices—where one side tried to push but got overpowered. You can learn to read market psychology just by studying candle formations. Don't memorize every pattern that exists (there's like 50+). Focus on the heavy hitters: hammer, shooting star, engulfing patterns, doji. These show up constantly and actually mean something. The rest is noise.
Real-World Example
Bitcoin's dropping and prints a bullish engulfing candle at $38k support—a huge green candle that completely swallows the previous red one. That's buyers overwhelming sellers. You go long right there.
How Strykr Helps
Strykr's AI monitors Candlestick Patterns signals across 5,000+ assets in real-time. Get instant alerts when significant patterns emerge, with context about market conditions and confluence factors.
Try Strykr Free