Candlestick Patterns

You can recognize momentum, change of direction (rejection) and/or price confirmation.

As we will see, price action traders separate between 1, 2 and 3 candlestick patterns.

The 2 and 3 pattern formations are usually an alternation of the 1 candlestick patterns so it’s important that we start here first.

Generally, 2 and 3 candlestick patterns carry more weight because they offer more context in our opinion.