Most Appealing Chart Analysis: Japanese Candlestick Charts

candlestick is a chart that displays the high, low, opening and closing prices of a security for a specific period. The wide part of the candlestick is called the “real body” and tells investors whether the closing price was higher or lower than the opening price.
Important single candle stick pattern are Hammer,Hanging Man and Doji .All these are reversal patterns.
A doji is a candlestick where the opening price is almost the exact same as the opening price, with long shadows in one direction or both. What this can signal is indecision between buyers and sellers. If these occur at the top or bottom of a trend it can signal a reversal as it shows a slowing of momentum.The hammer chart pattern is a Japanese candlestick that has a small body with a short to no shadow on top of the body with a long shadow on the bottom. When this candlestick occurs at the bottom of a trend, it can signal for a reversal.The hanging man candlestick pattern has the exact same candlestick as the hammer but has different price action before it, so it signals for a reversal downwards.
Most important two candle patters are Engulfing and Piercing. A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body. Conversely, a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous red candle’s body.
Most important Three Candles Patterns are Morning Star and Evening Star .