On a chart, a candlestick is simply a representation of one session's worth of price movement demonstrating how traders acted during that session of trading. A trader's toolbox can be filled with extremely powerful tools when they learn how to trade price action and candlesticks properly. Traders have direct insight into the behavior of other traders and the market as a whole based on what the price action does and how it behaves. By looking at whether the entire candle is either completely bullish or completely bearish and closes near the highs or near the lows of the previous day's trading session, you can tell if the bulls or bears are in control. A move higher followed by the bears snapping the price lower, or the opposite, can be used to determine if a false move occurred during the session.

Candlestick patterns in financial trading convey crucial insights into future market movements. Each pattern reflects market sentiment, indicating potential shifts in direction. For instance, a "hammer" pattern suggests potential bullish reversal, indicating buyers outweighing sellers after a downtrend. Similarly, a "doji" signifies market indecision, potentially foreshadowing a reversal. Understanding these patterns empowers traders to anticipate market behavior, guiding their decisions on buying or selling assets. However, relying solely on one pattern may be insufficient; it's crucial to consider broader market context and additional indicators for comprehensive analysis. Nonetheless, a single candlestick pattern serves as a valuable tool, offering valuable clues about forthcoming market dynamics and aiding traders in making informed decisions.