Candlestick patterns here show emotion visually and eventually represent the size of price moves with different colors. Traders use candlesticks to make their trading decisions based on irregularly occurring patterns for market purposes that help forecast the short-term with minimal direction of the price.

• Traders use candlestick charts to determine possible price movement based on past patterns for better trading patterns.
• Candlestick patterns are helpful when trading in boom and crash as they show four price points (open, close, high, and low) throughout the period and time duration the trader specifies and features.
• Many algorithms are based on the same price and amount of information shown in candlestick charts.
• Emotion often dictates trading, which can be read in candlestick charts.

How to Read a Single Candlestick in boom and crash market

Each candlestick represents one day’s worth of price data and all its ranges about a trading market through four pieces of information: the opening price, the closing price, the high price, and the low price. The color of the central rectangle (the natural body) tells investors whether the opening or closing price is higher.

Types of Candlesticks patterns

There are several types of candlestick patterns for trading. However, they are divided and explained into two main categories—bullish and bearish—and have subcategories. After a market downtrend, bullish trends can form, signaling a price pattern rebound. They indicate that investors consider opening an extended position to benefit from an increasing trend. For example, bullish patterns are a hammer, an inverse hammer, bullish engulfing, a piercing line, and the morning star.

1. Interpreting single candle formations pattern

Individual candlestick patterns can offer valuable insight and various strategies into current market sentiment. Candlesticks like The Hammer, Shooting Star, and Hanging Man, and any type, offer clues about changing momentum and where market prices may trend.

2. Recognizing price patterns in multiple candles patterns

Candlestick patterns help boom and crash traders organize price amount patterns that occur and take place in the charts with patterns. By identifying these price patterns, like the bullish engulfing or triangle patterns, you can use them as entry into or exit signals out of the market.

• Bullish pattern: A bullish engulfing pattern indicates and pretends a strong uptrend that is helpful which plays a vital role in the candlestick pattern in boom and crash trading. It forms when a more significant bullish candle engulfs a small, bearish candle as a reading purpose signaling a continuation of the uptrend.
• Hammer: A hammer pattern forms when a small bearish candle has a long lower shadow, indicating a potential reversal. This can signal a brief pullback in a booming market before the uptrend continues.
• Bearish pattern: A bearish engulfing pattern indicates a strong downtrend, which is why the main pattern helps boom-and-crash trading. It forms when a larger bearish candle engulfs a small bullish candle. By this pattern, we can also read and understand, signaling a continuation of the downtrend.
• Shooting Star: A shooting star pattern forms when a small bullish candle has a long upper shadow, indicating a potential reversal. In a crash market, this can signal a brief rally before the downtrend continues.
• Confirmation: Look for confirmation from other indicators or chart patterns before trading.
• Context: Consider the market context, including trends, support, resistance levels, and news events.
• Size and Colour: Pay attention to the size and color of the candles, as more prominent and pronounced colors can indicate more robust trends.
• Series: Look for a series of candlestick patterns to confirm a trend rather than relying on a single pattern, which will be helpful and the main thing. Understanding these candlestick patterns can help you improve your trading decisions in boom and crash markets and build your market strategy. Use proper risk management and combine candlestick analysis with other technical and fundamental analyses.