Candlestick patterns

A chart is (usually) formed by Japanese candlesticks; each candlestick represents the price movement during the chosen time frame. On a 4-hour BTCUSD chart, each candlestick represents the price movement during a 4-hour period.

The way the price moves inside that candlestick (or that candlestick, and a few more) can generate a pattern that we can use in trading.

Warnings

First warning—Don’t trade by one candlestick pattern! Trade using a confluence of patterns and indicators so that your chances of success are increased.

Second warning—It’s extremely hard to test the patterns presented. Some, such as Thomas N. Bulkowski, have tried doing this for stocks, but still, even with the statistics at hand, the right moment to enter and exit is, again, debatable.

My recommendation—Look at the market’s emotion, at the story behind the price. And yes—I know I’m repeating myself, but I’m doing it...