Question 1

Which is the most reliable candlestick pattern?

Accepted Answer

In our opinion, there are five candlestick patterns that we think are most accurate and time-tested. They are Doji, Engulfing pattern, Morning star, bearish engulfing pattern, bullish engulfing pattern, and evening star.

Question 2

Which are the most bearish candlestick patterns?

Accepted Answer

The bearish patterns can contain multiple or single candlesticks. Other than this, it should also form after the uptrend. If not, they will only seem like continuation patterns. The most potent bearish candlesticks are hanging man, the evening star, bearish engulfing, dark cloud cover, and the three black crows.

Question 3

What is a Candlestick Chart?

Accepted Answer

It is a Japanese chart that you can use to describe the financial movement of stocks, currency, or security. Each candle refers to one day of a month. So, if there are 20 trading days in a month, there will be 20 candles in the chart.

Question 4

What is a Doji Candle?

Accepted Answer

The Doji candlestick chart is formed when the stock's opening and closing are the same for the specified period. The Japanese meaning of Doji is mistake or blunder. It implies that there are scarce chances that the opening of stock and closing prices are the same.

Question 5

Does the Candlestick pattern work?

Accepted Answer

To answer this, you must know that the candlestick patterns are created according to the up and down price of a stock. Because of this, sometimes, a random chart is made, and sometimes, there is a pattern of these candlesticks. When the patterns are formed, different traders can use them to analyze the movement in the stock. But, if you ask if they always work, Well, NO.

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