Price Action Candlesticks Cheatsheet — The Best Patterns!These different price action patterns are great for various situations. They can be identified at a Lower time frame or Higher timeframe, pick a chart and start looking at the candles!
If you identify any of these in a chart you are looking at today, feel free to share them below.
Here is a little more about bullish and bearish candlesticks:
Bullish and bearish candlesticks represent opposite market sentiments in technical analysis.
They are used to identify the buying and selling pressure in a financial market, and help traders to predict the direction of price movement.
A bullish candlestick is represented by a green or white candlestick that has a long body and a short wick or no wick. A long green or white body indicates that the closing price of the asset is higher than the opening price. It signifies that buyers are in control and that there is bullish sentiment in the market.
The longer the body of the candle, the more significant the bullish sentiment.
On the other hand, a bearish candlestick is represented by a red or black candlestick that has a long body and a short wick or no wick.
A long red or black body indicates that the closing price of the asset is lower than the opening price. It signifies that sellers are in control and that there is bearish sentiment in the market.
The longer the body of the candle, the more significant the bearish sentiment.
Traders use bullish and bearish candlesticks to identify trend reversals, support and resistance levels, and to confirm other technical indicators.
When a bullish candlestick pattern appears after a series of bearish candlesticks, it may indicate a potential reversal of the trend.
Conversely, when a bearish candlestick pattern appears after a series of bullish candlesticks, it may indicate a potential reversal of the trend. No single candlestick should be used to make trading decisions, and traders should always consider other technical indicators and fundamental analysis before making any trading decisions.
