Candlestick Patterns School

Candlestick Patterns Categories

There are three main categories of Japanese Candlestick Patterns.

  1. Bullish Reversal Candlestick Patterns.
  2. Bearish Reversal Candlestick Patterns.
  3. Continuation Candlesticks.

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Japanese Candlestick Explanation

  • Definition: Japanese candlestick is a price chart in trading platforms. They are used to display prices for a certain period. They are showing open, close, high, and low in a specific period.


  1. If the price closes above the open, then we have to buy a (long) candlestick. On our charts, it is a green candle.
  2. If the price closes below the open, then we have to sell a (short) candlestick In our examples it is the red candlestick.
  3. The center (filled part) is called the body.
  4. Thin lines up and down are called shadows.
  5. The upper shadow is high (the highest price reached in that period)
  6. Lower shadow represents low (the lowest price in that time frame).

Learn more about Japanese candlesticks.