Candlestick Patterns Every Forex Trader Should Know

Candlestick patterns are a vital part of technical analysis in forex trading. They visually represent price action and help traders understand market psychology.

Bullish Candlestick Patterns

Common bullish patterns include bullish engulfing, hammer, and morning star. These patterns often signal potential upward price movements.

Bearish Candlestick Patterns

Bearish patterns such as shooting star, bearish engulfing, and evening star indicate potential downward trends.

Continuation Patterns

Patterns like doji and spinning tops can signal market indecision and possible trend continuation.

How to Trade Candlestick Patterns

Candlestick patterns are most effective when combined with support, resistance, and overall trend direction.

Conclusion

Mastering candlestick patterns improves timing and decision-making for forex traders at all experience levels.