📈 Types of Candlesticks and How to Use Them
✨
📊 Stock prices in the stock market never move in a straight line, nor can they move.
🔄 Prices sometimes go up over time.
📉 So never read. And the history of these fluctuations is engraved on the stock price chart.
🧠 Analyzing the historical chart of share prices shows that sometimes these price changes follow certain patterns.
🔍 And those are the future stock price potential used by traders during technical analysis.
📌 To predict the movement and make a trade plan accordingly.
📊 Demand-Supply Zones, Support-Resistance Lines in Share Trading,
📈 Along with trend lines, volume, various indicators, etc.,
🧩 some special chart-patterns are also very effective.
📝 In this article we will discuss some such classical chart patterns.
📚 Basic Concepts of Candlestick Chart Patterns
❓ Why are chart patterns created?
💰 Share price is the most important thing in the stock market, above all.
👥 And this price depends on the buyer of the shares.
🤝 When and at what price the seller agrees to buy and sell.
⚖️ In other words, demand and supply determine how much the share price will be or in which direction it will go.
📈 When the demand for shares exceeds the supply:
🟢 Buyers bid higher and higher
🚀 Prices continue to rise
📉 If supply is higher than demand:
🔴 Sellers want to sell at any price
⬇️ Prices fall again
🔄 This cycle of price fluctuations goes on and on.
🌍 This is the universal truth of the stock market.
🧩 Sometimes buyers and sellers act together in special situations
📍 At special price levels of shares
⚡ They show unique reactions that affect supply and demand
📊 When candlesticks or charts are plotted:
👀 Traders see these reactions forming special patterns
🔁 These patterns repeat again and again in different places
📈 When a pattern reappears in the live market, it gives a signal
🔮 About what might happen next
👉 That is the foundation of pattern trading
📊 Chart Pattern Types
Based on direction, patterns are divided into two categories:
🔵 Continuation Chart Pattern
🔴 Reversal Chart Pattern
⏳ In both cases:
📏 The longer the pattern forms
📊 The bigger the price range
🚀 The bigger the move after the breakout
⚠️ Important Note:
❓ It is not always clear whether the trend will continue or reverse during formation
👀 So always: 📌 Watch the main trend
📈 Watch trendlines carefully
💥 Look for breakouts
💡 Final Tip:
🔄 The trend usually continues in the same direction
❗ Unless there is a strong signal for reversal
