James S428 Martinez#94

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What are candlestick patterns and how do they help forex traders?

Candlestick patterns visually represent market psychology. Patterns like doji, engulfing, or hammer indicate indecision, reversals, or momentum continuation. Institutions use pattern recognition software, while retail traders often apply them manually. Benefits: easy-to-read signals for entry or exit confirmation. Risks: false signals in choppy markets. Combining candlesticks with trend or support zones increases accuracy. Candlestick analysis is valuable because it compresses price action into clear visual cues—helping traders interpret supply and demand quickly.