All of us know about the candlestick method of charting. In my last post. I have shown u how to plot a candlestick bar. The components of candle stick bar is quite similar to that of an OHLC bar, and I am sure that many of u wonder why should we prefer the candle stick bar against a simple OHLC bar? I did so in my early days


Its true that candle stick bar and OHLC bar are made from the same data, but the position of candle stick bar in the chart itself tells us about the possible way of future price movements


One or more candlestick bar can form very strong signals especially during bull to bear and bear to bull reversals. And though now a day we are blessed with certain indicators that gives us same signals, stick candlestick bars are still very important for a trader. In fact if we use candlestick bar with a few indicators then the importance of the signals increases more and more.


While the list of candlestick patterns are long enough, still there are only a few patterns which u can find in the day-to-day market activity. Among all these easily available patterns some gives very strong signals and some gives moderate ones. In the following posts. I will give some the descriptions of all these easily available patterns and their reliability, so that u can use them without any bias.