Candlestick patterns
Read the relationship between a candle’s open, high, low and close.
What to notice
A long body shows a large move from open to close. A long wick shows price moved farther, then pulled back. Multi-candle patterns compare those shapes across closed candles.
The context that matters
Name a pattern only after its required candles close. Check the preceding trend, nearby levels, volume and whether a later candle confirms the idea.
Common mistake
Treating a named candle as a forecast. The same wick can mean different things after an advance, a decline or in a range.
Try it on a chart
Pause a chart before the next candle. Record the candle shape, trend and a level that would weaken your interpretation.
Open Paper Signal LabPaper Signal Lab provides educational chart analysis and simulated research. Patterns and historical paper outcomes do not guarantee future market results. Public research does not grant real-money trading access.
Further reading: StockCharts ChartSchool: Introduction to Candlesticks