What Are Candlestick Patterns?June 24th, 2021
“All candles tell a story,” says Kristoffer Lassen, co-founder of LizardIndicators.
In his recent webinar Analyzing Candlestick Patterns, Lassen explained that every candle is unique. Though every candle has an open, high, low and close, no two bars will have the same timestamp and price action.
This is particularly important to remember when identifying candlestick patterns. These patterns are time-based, meaning a pattern is often created when there is very little price action in one candle but much more activity in the next.
There are many different kinds of candlestick patterns that fall into two main categories – continuation patterns and reversal patterns. These patterns can be identified across just one bar or across two or three (or even more) bars. It is also possible to use multiple patterns in combination with one another.
In this short clip, Lassen introduces candlestick patterns and displays a number of examples. If you are interested in learning more about candlestick patterns, be sure to check out Lassen’s full webinar here.
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