Candlesticks are the most strongest form of trading. If we know how to read candlesticks, we would not need the various indicators and oscillators that we use now a days to trade. But the key is to know where and at which position we consider reading the candlesticks. It’s not that we can take up any position randomly and say that, it’s making a Bullish Engulfing pattern, hence it’s time for a bullish reversal. No, this is not how it works. We need to know the right position on the charts to make this statement. It takes a fair amount of time to learn this but we need to make it a practice to keep seeing and watching the candlesticks in order for us to be familiar with them and their moves.

Below mentioned are some of the most important candlestick patterns.

  • Doji
  • Bullish Engulfing
  • Bearish Engulfing
  • Bullish Piercing
  • Bearish Piercing
  • Morning Star
  • Evening Star
  • Bullish Harami
  • Bearish Harami
  • Tweezer Top
  • Tweezer Bottom
  • Abandoned baby
  • Shooting Star
  • Hanging Man
  • Hammer
  • Inverted Hammer

So having that said, let’s start getting ourselves familiar with the various candlesticks and learn to hear what they are trying to tell us.