Candlestick patterns aren’t magic they’re the market talking. Each candle is a snapshot of who’s winning, buyers or sellers. Get them wrong, and charts feel like chaos. Read them right and the noise starts making sense.
Continuation patterns are the market catching its breath, not flipping the trend. Rising Three Methods or Three White Soldiers? Buyers are quietly tightening grip even during small pullbacks. Falling Three Methods? Sellers shrug off minor bounces and keep control. These patterns pay off when traded with the trend jumping in mid-pattern is a trap.
Reversal patterns hint at a shift, but they can lie. Morning Star, Hammer, Bullish Engulfing sellers fading, buyers stepping in aggressively. Evening Star, Shooting Star, Bearish Engulfing buyers stumble, sellers take over. They scream loudest at support, resistance, or old highs and lows; elsewhere, they whisper.
Context matters. A hammer in the wrong spot? Useless. At support? Suddenly valuable. Confirmation is your friend wait for the next candle to nod before betting. Volume tells the truth: strong patterns with rising volume? Worth attention. Alone? Probably noise.
Never isolate a single pattern. Combine it with trend, market structure, and risk management. Candlesticks don’t predict the future. They reveal the psychology driving the market right now. Master that, and charts stop guessing and start guiding.