Various charting tools and chart settings are used to analyze price action. The most common ones include the bar chart, line chart, and the Japanese candlestick chart. Candlestick patterns, in particular, are a crucial part of price action trading. They are simply reoccurring formations in price action that traders can easily identify and then use to create trade ideas that can be applied in the market. The idea behind this form of trading is that these patterns tend to behave in similar ways. Thus, the trade ideas created using these patterns might have higher chances of profitability.