Candlestick patterns are visual representations used in financial markets to analyze price movements of assets like stocks or currencies. Each candlestick shows the opening, closing, high, and low prices for a specific time period, helping traders identify potential market trends and reversals. Traders often look for specific formations, such as doji, hammer, or engulfing patterns, which can indicate bullish or bearish sentiment. By recognizing these patterns, traders can make more informed decisions about when to buy or sell, ultimately aiming to improve their trading strategies and outcomes.