Candlestick chart patterns were first developed in the 18th century, by a wealthy Japanese businessman, Munehisa Homma, to analyse rice contract prices. But these patterns were so efficient, they soon became the basis of trading in Japan. Today, they are one of the most versatile technical indicators for predicting market movements.
In total, there are 42 recognized candlestick chart patterns. But not all of them are equally reliable. Here are 5 candlestick patterns that perform well for traders of all levels.