Remember a basic principle: candlestick charting techniques are a tool and not a system. For example, one must view a candlestick pattern within the context of the surrounding technical picture. Without doing so would be, as the Japanese proverbs says, “Like leaning a ladder against the clouds” With candle charts, one can use candle charting techniques, or Western techniques, or a combination of both. This union of Eastern and Western techniques provides traders with uniquely effective tools to help enhance profits and decrease market risk exposure. Here are 7 candlestick patterns every trader should know. Engulfing This pattern consists of two candles and a bullish engulfing pattern is when a white real body engulfs (hence the name) a small black real body during a downtrend. It doesn’t mean a stronger rally on a candlestick chart but it does increase the likelihood of that being excellent support and could be the start of an ascent. Be careful. The dual bullish engulf