Candlestick patterns are chart formations in technical analysis that display the price movement of an asset within a specific time frame, using candlestick-shaped figures. Each candlestick shows the opening, closing, high, and low prices, providing traders with visual insights into market sentiment and potential trend reversals or continuations. Common candlestick patterns include doji, hammer, engulfing, shooting star, and morning star, each signaling different market behaviors. Traders use these patterns to identify buying or selling opportunities, often in combination with technical indicators and support/resistance levels, making them a vital tool for predicting future price movements in forex, stocks, and other financial markets.