Candlestick patterns are visual representations used in technical analysis to predict future price movements in financial markets. Each candlestick shows the open, high, low, and close prices for a specific time period, allowing traders to assess market sentiment. These patterns can indicate potential reversals or continuations in price trends. Common patterns include Doji, Hammer, and Engulfing, each providing insights into market dynamics. By recognizing these formations, traders can make more informed decisions about buying or selling assets.