the candle stick analysis invented by japanese by using demand and supply. later it was adopted by western. candlestick charts mainly for a week traders. its for a short term trend. here we have engulfing pattern, piercing pattern, doji pattern and hammer/hanging man pattern.
engulfing : the price should open low with previous day close and ends higher than previous day open. the latest body covers fully on previous day body for bullish trend.. vice versa for bearish trend. high volume expected during engulfing pattern.
piercing : the body should cover previous day low, and the latest body should cover 50% of the previous day body. upper tail small in size.
doji : its a neutral, when the price open and close same the doji appears. its look like a star. after a price fall or rally when doji appears with high volume the reversal can expected.
hammer : its a strong hand like bullish trend. bottom tail 2 times higher than the body no upper tail. filled with green colour.
hanging man ; its show the weakness of the trend bearish trend. the upper tail is 2 times higher than the body. no bottom tail.
if the hammer/hanging man appears with high volumes the bullish/ bearish trend expected.