Candlestick charts visualize price action over a chosen time interval — each candle shows the open, high, low, and close. Traders use candlestick patterns like doji, hammer, engulfing, morning star, and shooting star to identify potential reversals and continuations in TSX, US, and crypto markets.
Common candlestick patterns
Doji — open and close are nearly equal, signaling indecision.
Hammer / Hanging Man — long lower wick suggesting rejection of lower prices.
Engulfing (bullish / bearish) — a candle whose body fully engulfs the prior one, often a reversal cue.
Morning Star / Evening Star — three-candle reversal patterns at swing lows or highs.
Shooting Star — long upper wick at the top of an uptrend, hinting at reversal.