Candlestick and chart patterns are commonly used tools in technical analysis to help traders identify potential trends and reversals in financial markets. Candlestick patterns involve analyzing the open, high, low, and close prices of an asset over a specific time frame to identify patterns that can indicate a potential price movement. For example, a bullish engulfing pattern occurs when a small bearish candle is followed by a larger bullish candle that completely engulfs the previous candle, indicating a potential shift towards a bullish trend.
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