Candlestick theory, also known as candlestick charting or candlestick analysis, is a popular method used in technical analysis to interpret and analyze price movements in financial markets, such as stocks, commodities, forex, and cryptocurrencies. It originated in Japan in the 18th century and was developed to track and analyze the price movement of rice in the Japanese commodity markets. Today, it is widely used by traders and analysts worldwide.

 Traders use patterns formed by these candlesticks to make predictions about future price movements. It's based on the idea that historical price patterns repeat themselves, helping traders make informed decisions about buying or selling assets. Candlestick analysis is a valuable tool in technical analysis but is best used alongside other analytical methods for a comprehensive view of market conditions