Candlesticks analysis takes advantage of Japanese candlesticks and price patterns to track possible scenarios that indicate the quality of movement in act. Although this is an objective methodology, it can have different interpretations when the formation does not correspond exactly with the pattern ideal model. However, it is a great tool to confirm formations, trendlines or congestion areas, or their breakout.
The above example shows a primary candlestick pattern, the bearish engulfing. The characteristic of this pattern is to indicate, with a high degree of reliability, the interruption of current uptrend.