Recently, I’ve noticed that many beginners, when learning technical analysis, still have a superficial understanding of candlestick charts. In fact, mastering a few core candlestick pattern analysis methods can significantly improve the accuracy of market predictions.

Our domestic stock market has been using candlestick charts since 1990, but honestly, over the years, research on candlesticks has mainly been a copy of the Japanese theory, mostly staying at the scattered statistics of single, double, and multiple candlesticks, without forming a truly systematic and complete cognitive framework. Indicators and candlestick charts are indeed essential trading tools, but don’t over-rely on them. Even the most classic patterns and the most commonly used indicators are not 100% accurate; real trading requires flexibility and adaptation, not rigid application.

Candlestick charts originated from rice market trading in Japan’s Edo period, used to track rice price fluctuations. Later, they spread to Southeast Asia and then entered the stock market. They are popular because they are intuitive and three-dimensional, capable of relatively accurately predicting future market directions and clearly judging the balance of buying and selling forces. Candlestick patterns are divided into 24 types of bullish and bearish lines; larger bodies indicate stronger forces, while the length of the shadows reflects the outcome of the battle between buyers and sellers.

I think the most worth mastering are these five common combinations. The Morning Star usually appears at the end of a decline; over three days, the pattern shows a drop, then contraction, and finally a rebound—this is a bottoming signal. The Evening Star is the exact opposite; it appears suddenly during an uptrend and is a clear warning of reversal, so consider taking profits at this point. The Three Red Soldiers are three consecutive bullish lines, each closing at a new high; the market is usually bullish afterward, but volume should also be considered. The Three Black Crows are the opposite of the Three Red Soldiers; three consecutive bearish lines at high levels indicate that the stock price may continue to fall. The Two Black Gaps are more subtle; two days of failed attempts by the bulls to push higher suggest weakness, and the probability of a reversal pattern increases significantly.

These candlestick pattern combinations may seem complex, but the core logic is simply observing the changes in the forces of bulls and bears. I recommend that beginners repeatedly verify these patterns in real trading, combined with volume and other indicators; this will greatly improve accuracy. Don’t rush to place orders—first develop a keen eye and sharp judgment.