Charting Stocks:

  • Bar chart and Japanese candlestick chart
  • Point and Figure charts
  • Line chart

Major Chart Patterns Price-Based Indicators Basic Technical Tools:

  • Trend
  • Candlestick
  • Trend Lines
  • Moving Averages
  • Price Patterns
  • Indicators

Candlestick Chart:

Candlestick charts are an effective way of visualizing price movements. There are two basic candlesticks:

  • Bullish Candle: When the close is higher than the open (Green)
  • Bearish Candle: When the close is lower than the open (Red)
Forex Trading Chart Type Analysis & How to Read Forex Trading Charts

Candlestick Parts:

There are three main parts.

Upper shadow: The vertical line between the high of the day and the close (bullish candle) or open (bearish candle).

Real Body: The difference between the open and closed; colored portion of the candlestick.

Lower shadow: The vertical line between the low of the day and the open (bullish candle) or close (bearish candle).

Candlestick Patterns

A Candlestick chart is with multiple candlesticks forming reversal and continuation patterns.

  • Bullish engulfing pattern
  • Bearish engulfing pattern
  • Hanging Man
  • Hammer
  • Inverted Hammer
  • Evening star
  • Morning star
  • Shooting star
  • Doji
  • Harami (Bullish and Bearish)
  • Dark cloud cover
  • Piercing Line pattern
  • Bullish Marubozu Candle
  • Bearish Marubozu Candle
  • Bullish Spinning Top
  • Bearish Spinning Top
  • Tweezer Bottom
  • Tweezer Top
  • Three White Soldiers
  • Three Black Crows
  • Three Inside Up
  • Three Inside Down
  • Three Outside Up
  • Three Outside Down
  • Rising Three Method
  • Falling Three Method

“Candlestick patterns are like the DNA of the market, containing the history and behavior of price movements.”