Candlestick analysis is used to identify short term reversal indicates. These can be used for short (3-5 days) trades.
Four key candlestick patterns,
1. Engulfing
2. Piercing
3. DOJI
4. Hammer / Hanging man
Engulfing and Piercing are relatively common and may appear without significant volume.
DOJI and Hammer are relatively uncommon and but powerful indicators of reversal. They should appear with increase in volume.
All these patterns should be traded only if the price moves above the pattern candlestick high point (for buying) and stop loss should be maintained below the candlestick low.