12 must learn candlestick patterns – Technical Analysis

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Three white Soldiers Candlestick Pattern

12 must learn candlestick patterns – Technical Analysis


Charts are the heart of Technical Analysis for any Day-Stock traders to identify the Patterns and Trends of a Stock or Share. Forecasting a stock is nothing but understanding a stock with its Price Action. For the long term investors, the buy and sell price of a stock lies in the business – Fundamental Analysis.

Where for the Day traders (Intraday), the entry and exit points were followed by its Charts – Patterns (Technical Analysis). In Technical Analysis, there are so many tools to identify the patterns and trends – but in common everyone eases with the Candlestick Pattern. It is a very useful and powerful tool, so that anyone can understand the price action of a particular stock.

A movement in prices of a stock were shown graphically on a Candlestick Chart. These movement of prices will gives an indication whether to buy or sell a share. Candlestick Patterns are introduced by the Japanese in the 18th Century, that was used to track the prices of Rice. Later, it was become a Technical Analysis chart for a Stock Market.

There are totally 42 different Candlestick patterns available including simple and Complex types. Here now, we are going to see the 13 Must learn candlestick patterns – It is a basic pattern for the Chart also.

Learn 12 important Candlestick Patterns:

  • Bullish Engulfing Pattern
  • Bearish Engulfing Pattern
  • Hanging Man
  • Hammer & Inverted Hammer
  • Morning Star
  • Evening Star
  • Piercing Line Pattern
  • Three White Soldiers
  • Three Line Strike Candlestick Pattern
  • Two Black Gapping
  • Two Black Crows
  • Abandoned Baby

The above twelve candlestick patterns are the most important and powerful one to analyze the trend of the market or a stock. Generally, a Candlestick comes with four elements – Open, Close, High and Low. Beginners can easily understand and learn these type of Candlestick Patterns.

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