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Color is a huge determining factor for candle analysis but identifying the difference between a solid and hollow candle chart can be just as important.

However, their usefulness is not in what an individual candlestick can do, but the patterns that they form and the information that can be used from them.As many of these patterns can be grouped into subgroups, we will explore each group below and explain their significance.The hammer pattern describes a candle that has a long wick underneath (the shadow) and a small body at the top that is at most half the length of the shadow.Recognizing candle patterns is one of the first skills you should learn in your trading journey, but it’s not just about seeing the pattern, understanding what it is showing you and how you can develop profitable candlestick trading strategies is key.The value in all the patterns that are commonly used for trading is that they can be used to potentially predict future price action.