Candlestick analysis

This analysis were used by japanese when they first developed candlestick charts. It was used for rice prices forecast on japanese stocks hundreds years ago. It gave good results to analytics of that time. This method is simple enough because it doesn't take much time to find candlestick patterns and make conclusions.

There are 2 types of candlestick patterns, first one called reversal pattern, and second one called continuation pattern. These patterns are used to forecast the rate behaviour whether it's going to reverse or to continue the current trend.

I would recommend to read a book "Japanese candlestick charting techniques" by Steve Nison. This book covers all possible candlestick patterns.

These days, I don't think this method is working as well as before. I would recommend to use it only as an additional indicator to your trading system. Check your chart to see if these patterns were working on historical prices of your trading chart.