Japanese candlesticks are the most popular and trustworthy trading charts because they provide 4 key price points, i.e. open, close, top and bottom, in a visually appealing way. In fact, the shape of a single candlestick can hint towards an upcoming price reversal . These swing points are great opportunities to trade so learning to read charts and look for patterns is very important.
Popular patterns to look out for in single candlesticks are:
Single candlesticks may suggest an imminent reversal of the price trend, but we’d strongly encourage you to observe surrounding candlesticks to see whether your forecasting is accurate. Here are the most popular formations to watch out for:
Seeing the wider picture in a chart, rather than individual candlesticks, confirms your predictions and helps you make decision on when to best enter and exit the market . This is the greatest skill for any trader.
Ranked best trading platform in 2021