Beyond a mere graph showing the moving of prices, the candlestick pattern does reflect a psyche in terms of market participants' emotional makeup. This becomes important as a guide toward how the state of mind might be in trading any particular day or at the given time of candlestick presentation. These patterns would reveal to a trader the psychology behind it, thus knowing much more about the market sentiment that he can use in order to make better decisions in the process of trading.

Market sentiment is a very broad and complex idea surrounding Powerful Candlestick Patterns that hold within its premise that the collective attitude of investors concerning any given market or asset makes up market sentiment. Several things can cause market sentiment. These can be economic news, geopolitical news, or even technical indicators. In candlestick analysis, each candle is based on the open, close, high, and low prices for a specific time frame. Between the open and close will be the body of the candle, and the wicks or shadows will represent the high and low. The length of shadows with the size and shape of the body gives an impression as to the psychology of the participants for that period.

The most powerful trend form of the candles that offer an impression regarding the change of trend is the Doji candle. The variation of the prices opens at a point but closes with close similarity; to the eye, it looks like there is hardly anybody so very small though rather long. It is the sign of indecision, for in this interval neither the bulls nor bears have been in charge. A Doji by itself does not indicate in which direction the market is going to take, but if other patterns are present simultaneously, such as the Engulfing pattern or continuation of the strong trend, then it can be assumed that reversal or a change of trend may be happening. It involves psychological equilibrium among buyers and sellers in that sense. It has now matured into a stage in which neither buying nor selling pressure is so intense that it is forcing prices in one direction. If that type of confusion does begin to emerge in an uptrend or a downtrend, it very often transmits the message that a strong trend can get lost and may change sooner.

The Doji signifies a possible shift in the market sentiment, and the Engulfing pattern represents an intense change in the market sentiment. A bullish engulfing pattern means a small bearish candle followed by a larger bullish candle that engulfs the whole previous candle. This pattern therefore indicates that the buyers have taken control and managed to outsmart the selling pressure, which had been pushing the market downwards. This is termed a bearish engulfing pattern after an uptrend in the index, whereby a larger bearish candle engulfs a smaller bullish candle, and the indication would be that sellers are better positioned, and it could very well be a trend moving down. The psychology of the Engulfing pattern depicts a total swing in the power of one set of traders over another set. This would therefore mean that there would be a bullish engulfing pattern and this would indicate that the trend would reversion to be positive since, as noted before, the sentiments had been on the bearish side and hence the bearish engulfing pattern would translate the fact that the general trend that had positive sentiments would change into bearish sentiments.

Hammer and Hanging Man patterns: Both look like each other but appear as opposite psychological perspectives in each case and Hammer is always a reversal after the downtrend had a negative direction. That would mean heavy selling pressure during the session which pushed prices up at the close, thereby showing that the bulls are on top, and perhaps a turn-around to the upside may just be in order. However, The Hanging Man follows a sequence of highs, and here, after the initial rally, it closes low, thus is sure to fall into sellers' hands soon. Psychology of this kind in these patterns illustrates how market confidence has turned its coin. For example, Hammer indicates selling exhaustion and turns out to be a starting point for buying control. The Hanging Man says that the buyers are losing their grip, and the reversal in the downside is possible.

Morning Star and Evening Star are two major changes that occur in market sentiments and are carried over by the three-candle formation. It has three candles the most important one being that when after the trend has become small-bodied to signal a stage of indecision and then it presents long bullish candles which would fix this reversal into the formation of the Morning Star. Morning Star could therefore mean that those sellers of this significant chunk of the market who had initially controlled it have now started to lose control over and more strength is gaining in its place. But Evening Star comes much later within the trend upside, and mostly that is an inversion of the strength bearishness in the bull. It is a giant bullish candle with a couple of tiny-bodied candles on it, followed by the termination by a large bearish candle, meaning only that there had been some form of buying pressure that has taken it upwards, but now this would be coming weak and would easily sell take over. The psychology behind the pattern is due to the changing power of the buyer or seller; that is, the morning star is related to a trend that is a bearish trend to a bull, while on the contrary, the evening star is associated with a bull reversal to a bearish trend.