Candlestick patterns are shapes made by the lines on a graph showing how the price of something like a stock or currency changes over time. These patterns help traders guess what might happen next based on what’s happened before.

Here are some common ones:

  1. Doji: When the opening and closing prices are almost the same, it shows that people are unsure about what to do next.
  2. Hammer: If there’s a small line at the top and a longer one at the bottom, it might mean the price will go up after going down for a while.
  3. Shooting Star: If there’s a small line at the bottom and a longer one at the top, it might mean the price will go down after going up for a while.
  4. Engulfing Pattern: When one line is much bigger than the one before it, it could mean the price will change direction.
  5. Morning Star: Three lines show up, with the last one being bigger than the first. It might mean the price will go up after going down for a while.
  6. Evening Star: It’s like the Morning Star but the other way around. Three lines show up, with the last one being smaller than the first. It might mean the price will go down after going up for a while.

These patterns can help traders make decisions about buying or selling, but they should be careful and not rely only on these patterns. It’s best to use them along with other ways of understanding the market and being smart about risks.

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