Candlestick patterns provide valuable information about market sentiment from "summary" of Charting and Technical Analysis by Fred McAllen
Candlestick patterns are a valuable tool for traders as they offer insights into market sentiment. By analyzing the formations of candlesticks on a price chart, traders can gain a deeper understanding of the emotions driving market participants. These patterns can provide clues about whether buyers or sellers are in control of the market at a given time. For example, a long green candlestick indicates that buyers are strong and in control, while a long red candlestick suggests that sellers are dominating the market. In addition to identifying who is in control, candlestick patterns can also reveal pot...
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