A bullish candlestick pattern is a chart pattern that consists of three candles, where the first candle is white and the second and third are black.
A bearish candlestick pattern is a chart pattern that appears when the opening and closing prices of a security are below the midpoint of the range between those two prices.
Candlestick patterns are important tools in technical trading. Understanding them allows traders to interpret possible market trends and form decisions from those inferences. There are various types of candlestick patterns which can signal bullish or bearish movements.
Candlestick patterns are technical trading indicators that have been used to predict market movement for centuries. Three line strike, two black gapping, three black crows, evening star, and abandoned infant are some of the candlestick patterns used to identify price direction and momentum.
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