Candlestick Pattern

A candlestick pattern is a visual formation created by a stock's price movement over a specific time period—usually shown on a price chart where each "candle" represents one day (or hour, week, etc.). The pattern's shape—formed by the opening price, closing price, and high/low prices—can suggest what traders think might happen next. You'll see these patterns everywhere in technical analysis, the practice of predicting price moves by studying charts rather than company fundamentals. Traders watch for repeating shapes because history sometimes rhymes: for example, a pattern called a "hammer" (where price drops sharply then recovers) has historically preceded price bounces. They're not foolproof, but they're a useful tool in your research toolkit.