• A candlestick pattern is a pattern formed by a single candlestick or a specific sequence of two or more candlesticks grouped together.
• A pattern helps traders study the current and past price movements of a stock.
• By using patterns, traders can estimate when trends will reverse or continue. This is why candlestick patterns are so popular for identifying trading opportunities.
• A candlestick pattern shows us what buyers and sellers are doing.

There are two kinds of candlesticks: bullish and bearish.

Bullish Candlestick: A candlestick is bullish when its closing price is higher than its opening price. The body of this candlestick is usually filled with white or green. This type of candlestick shows a positive sentiment, suggesting the security's price will likely go up in the future.

Bearish Candlestick: A candlestick is bearish when the opening price is higher than the closing price. The body of this candlestick is usually filled with black or red. This type of candlestick shows a negative sentiment, suggesting that the security's price will likely drop in the future.

Upper Shadow Time Frame - 1 Day

• For a Bullish Candle: The upper shadow is the vertical line between the high price of the day and the closing price.
• For a bearish candle: The upper shadow is the vertical line between the high price of the day and the opening price.

Body

The body is the main part of the candlestick, showing the difference between the opening and closing prices. When the opening price is lower than the closing price, the candlestick is bullish, and its body is white or green. If the closing price is lower than the opening price, the candlestick is bearish and has a black or red body.

Lower Shadow

• Bullish Candlestick: The lower shadow is the vertical line between the low price of the day and the opening price.
• Bearish Candlestick: The lower shadow is the vertical line between the low price of the day and the closing price.