Price Action Pattern
Candlesticks are great signals and it’s important to know how to read them, but complete chart patterns can be even more reliable because they include more information.
The concept is similar to support & resistance: At any one-time market participants have one of three choices - to buy, sell or stand aside. As this ratio between the three groups changes over time, so do the supply and demand for any given market. As this force changes, so does the price. This is all based upon participants' (and groups of) opinions of where the price ‘should’ be. As the battle towards the ‘correct’ market price unfolds we see trends and oscillations develop, which when combined form familiar patterns. If we can identify familiar patterns, technical analysts believe that [to a certain degree] price can become predictable.
Here you are going to learn some of the important most frequently occurring patterns.