Price action and candlesticks are a powerful trading concept and even research has confirmed that some candlestick patterns have a high predictive value and can produce positive returns. Especially interesting is a research paper by Gaginalp and Laurent in which they showed that the candlestick patterns:
How many candlestick patterns are there?
How many candlestick patterns are there? Around 80-100 known candlestick patterns have been identified. Don't worry, we won't be going over all. Just the important ones you ought to know of. The important candlestick patterns are the ones that signal a trend reversal.
How to use candlestick patterns for day trading?
How to use candlestick patterns for day trading? The candlesticks give you 4 different pieces of information, the first being open which means the opening price of the day in the green candle if you look the open is plotted at the bottom and the red candle if you see the opening is plotted on the top the close that is the closing price of the candle.
