Candlestick Charting & Patterns Explained

Welcome to our new web site.
We are currently adding content to the web site so please bear with us during this “development” phase but please be sure to bookmark the site, as we will not only provide candlestick chart theory, but crucially PRACTICAL information on applying and trading using this ancient technical analysis technique.

Like the popular OHLC charts, candlestick charts also require the same open, high, low and close price data to draw them for the period you wish to display, however it is believed by many that candlestick charts help to give an easy to interpret, visual representation of the price action.

Trading With Candlestick Chart Patterns

A key to ALL candlestick chart patterns is that they must always be interpreted in context with the current market structure, not solely in isolation! I can’t stress this enough.

Too many traders get focused solely on the actual candlestick pattern that appears, however the CONTEXT is equally as important, if not more important.
There is no doubting the incredible power of candlesticks but we must not lose sight of the critical component of the context of the candle formation we are interpreting ie market structure, support/resistance, have we had an extended trending move, etc.

Below is a great example of candlestick charting in practice, however if you are unsure of how a candlestick chart is drawn please refer to our how to read a candlestick chart article.