What are candlestick patterns & confirmation candles?

Candlestick patterns are widely used by traders to anticipate potential movements in the markets and capitalize on them. A confirmation candle can make the difference between winners and losses. Every trader must understand not only candlestick patterns but confirmation candles as well.

What is a candlestick confirmation strategy?

The distance between the head and the neckline can provide an estimate of the potential price target once the pattern is confirmed. Candlestick confirmation strategies offer valuable insights into market sentiment and can assist traders in making informed trading decisions.

How do you interpret Candlestick confirmation?

Accurate interpretation of candlestick confirmation requires an understanding of individual candlestick formations and their significance within the broader market context. Patterns such as the bullish engulfing or bearish harami can signal reversals or continuations in price movement when confirmed by subsequent candles.