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What are the most common candlestick patterns used in Japanese candlestick charting?
There are many candlestick patterns used in Japanese candlestick charting, but some of the most common ones include the doji, hammer, hanging man, engulfing, morning star, and evening star patterns. The doji pattern represents a period of indecision in the market, while the hammer and hanging man patterns are considered reversal patterns. The engulfing pattern occurs when a candle completely engulfs the previous candle, indicating a potential trend reversal. The morning star and evening star patterns are three-candlestick patterns that can signal a reversal from a bullish to bearish or vice versa. Traders often use these candlestick patterns in conjunction with other technical analysis tools to make informed trading decisions.
Japanese candlestick charting uses a variety of patterns that help traders interpret market sentiment and make decisions. Some of the most common patterns include:

1. Doji: A candlestick with almost the same open and close prices, signaling indecision in the market. It often suggests a reversal if found in an uptrend or downtrend.

2. Hammer and Hanging Man: Both have small bodies and long lower wicks. A hammer appears in a downtrend and suggests a bullish reversal, while a hanging man occurs in an uptrend and may signal bearish reversal.

3. Engulfing Pattern: Bullish or bearish engulfing patterns show strong reversal signals, with the second candle engulfing the previous one.

4. Shooting Star and Inverted Hammer: The shooting star suggests a bearish reversal in an uptrend, while the inverted hammer signals a bullish reversal in a downtrend.

These patterns guide traders in predicting possible price movements.

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