Here’s a summary of common candlestick types in technical analysis:
1. **Bullish Engulfing**:
- **Description**: A large green candle completely engulfs the previous smaller red candle.
- **Indication**: Potential bullish reversal.
2. **Bearish Engulfing**:
- **Description**: A large red candle completely engulfs the previous smaller green candle.
- **Indication**: Potential bearish reversal.
3. **Doji**:
- **Description**: A candle with a very small body and long wicks above and below.
- **Indication**: Market indecision and potential reversal.
4. **Hammer**:
- **Description**: A candle with a small body at the top and a long lower wick. The body can be green or red.
- **Indication**: Potential bullish reversal after a downtrend.
5. **Hanging Man**:
- **Description**: Similar to the Hammer but appears after an uptrend.
- **Indication**: Potential bearish reversal.
6. **Shooting Star**:
- **Description**: A candle with a small body at the bottom and a long upper wick. The body can be green or red.
- **Indication**: Potential bearish reversal after an uptrend.
7. **Inverted Hammer**:
- **Description**: A candle with a small body at the bottom and a long upper wick, similar to the Shooting Star but appearing after a downtrend.
- **Indication**: Potential bullish reversal.
8. **Marubozu**:
- **Description**: A candle with a long body and no wicks.
- **Indication**: Strong buying (green) or selling (red) pressure during the period.
These candlestick patterns help traders analyze price movements and make informed trading decisions.
