There are so many candlestick patterns, you're probably thinking. 'How am I going to remember them all?' You don't have to, however. Because if you grasp the three concepts I'm going to teach you, you'll be able to interpret any candlestick pattern like a pro. This page may be thought of as a candlestick pattern cheat sheet. Here's what you'll need to know:

• The hue of the body reveals who is in charge.
• Price rejection is represented by the length of the shadow.
• The 'Full picture' is shown by the Body-to-Shadow Ratio

Let me get right in and show you how to decipher any candlestick like a pro and become an unstoppable and wealthy trader.

Long bodies, as we all know, suggest significant buying or selling pressure, but the shadows or wick imply price rejection. The rejection of higher prices is represented by the upper shadow, whereas the rejection of lower prices is represented by the lower shadow. As a result, we don't need to worry about the body or the shadow. To gain the whole image, we need to integrate the two. It's similar to how a judge must listen to both the plaintiff and the defendant before rendering a decision in a court case.

Let's look at some situations to better grasp price rejection and the body-wick ratio.

The above image shows that buyers are in charge, as indicated by a strong, lengthy body of candlestick. And the selling pressure is light, as shown by the candlestick's tiny upper shadow.

The extended upper shadow in the above graphic indicates that the sellers are in charge, since they have reversed much of the previous gains. The body is small, indicating that the buyers are losing power and that the sellers are triumphant. Despite the fact that it is a bullish candle since the price is close to the open price and the candlestick is green, the entire picture is bearish at the time. Because the lengthy upper shadow indicates that the bulls have lost control and the bears are in command.

The ability to understand candlesticks may assist traders in becoming successful traders. To intercept any candlestick pattern, we just need to know the basic three things. We now realize that the lengthy body represents who is in command. The price's rejection is represented by the shadows.

If the candle price closes above the open, it indicates that the buyers have taken control. If the candle body is green and large, it indicates that buyers are stronger at this time. If the candle price is open above the closing price, it indicates that the sellers are in control, and the lengthy red body indicates that the sellers are stronger.

If the top shadow is longer than the body, it indicates that the sellers are stronger and are driving the price down. Although the candle is a bullish green candle, we will consider it a bearish candle since the upper tall shadows indicate that the sellers are stronger than the buyers. The same logic applies to the bearish candle if the bottom shadow is longer than the body.