Candlestick Patterns Explained: Doji, Engulfing, Hammer, Pin Bar, Head and Shoulders, Double Tops, Flags, Wedges and Triangles
Candlestick patterns are the market's shorthand for who won the fight inside one or a few candles; chart patterns are the same story over weeks. This guide covers the nine that traders actually use, the doji, engulfing candle, hammer and pin bar, head and shoulders, double top and bottom, bull flag, wedge and triangle, with what each one measures, where it is worth trading and where it is noise, and the one rule that makes all of them work: location first, pattern second.