Candlestick chart invented by Munehisa Homma (Japan, 1700s) for rice trading. Each candle shows Open, High, Low, Close (OHLC). Body color indicates direction.
📊 Anatomy
- Green/White body: Close > Open (bullish)
- Red/Black body: Close < Open (bearish)
- Upper wick: High minus body top
- Lower wick: Low minus body bottom
🎯 Top 10 Patterns
- Hammer/Hanging Man: Reversal — small body + long lower wick
- Doji: Indecision — open ≈ close
- Bullish/Bearish Engulfing: Strong reversal — second candle engulfs first
- Shooting Star: Bearish reversal at top
- Morning Star / Evening Star: 3-candle reversal pattern
- Marubozu: Strong momentum — no wicks