Description

A variety of candlestick patterns can be used to help predict future prices. The patterns can be broken down into categories of bearish, bullish, and neutral. The bearish category consists of the dark-cloud cover, shooting star, and hammer. The bullish category consists of the long-legged doji, bullish engulfing, and morning star. The neutral category consists of the spinning top and evening star. A dark-cloud cover is a pattern where the opening and closing prices are the same or very close to each other. The trading range is large and the open and close are at the same price. The candlestick is filled in black or red depending on the direction of the opening price. A shooting star is a pattern where the opening and closing prices are the same or very close to each other. The trading range is small and the open and close are at the same price. The candlestick is empty. A hammer is a pattern where the opening and closing prices are the same or very close to each other. The trading range is small and the open and close are at the same price. The candlestick is filled in black or red depending on the direction of the opening price. A long-legged doji is a pattern where the open and close are very close to each other. The trading range is small and the open and close are at the same price. The candlestick is empty. A bullish engulfing is a pattern where the open and close are very close to each other. The trading range is small and the open and close are at the same price.