The 6 Most Powerful Candlestick Signals Every Trader Must Know
Understanding candlestick signals can help you avoid costly mistakes and make better trading decisions. Here are the most effective patterns every trader should know:
1. Rising 3 Method (BUY)
A bullish continuation pattern where small candles temporarily pause the trend before buyers push price higher. It reflects strong confidence from bulls.
2. Gravestone Doji (SELL)
Formed with a long upper shadow and little to no real body at the base. It shows that buyers failed to hold gains and often signals a bearish reversal.
3. Falling 3 Method (SELL)
A bearish continuation pattern within a downtrend. Small upward candles appear briefly, followed by renewed decline, confirming that sellers remain in control.
4. Exhaustion & Impulsion (BUY)
When price slows with smaller candles and is followed by a strong bullish candle that breaks upward. This often signals the start of a breakout.
5. Bearish Fakeout (SELL)
Price appears to break upward but quickly reverses downward. This move traps traders before a sharp decline and confirms strong bearish momentum.
6. Exhaustion & Impulsion (SELL)
Buyers lose strength after a slowing upward move, then a strong bearish candle takes over. This confirms that sellers have regained full control.
Mastering these candlestick patterns will help you trade with confidence, avoid traps, and identify shifts in market momentum early. Save this guide and apply it to your charts.