Ever felt like the market is out to get you? You buy, and prices drop. You sell, and suddenly, the market pumps. It’s not bad luck—it’s bad timing.
Most traders unknowingly buy at resistance and sell at support, reacting emotionally instead of anticipating market shifts. The key? Spotting trend reversals before they happen.
5 Powerful Candlestick Patterns for Reversals (4H Timeframe)
1️⃣ Engulfing Candle (Bullish/Bearish)
A strong candle fully engulfs the previous one.
Bullish: Forms after a downtrend → signals an upward reversal.
Bearish: Appears after an uptrend → indicates a downward shift.
2️⃣ Morning Star / Evening Star
A three-candle formation showing trend exhaustion.
Morning Star: Downtrend → small-bodied candle → strong bullish candle = Buy signal.
Evening Star: Uptrend → small-bodied candle → strong bearish candle = Sell signal.
3️⃣ Hammer & Inverted Hammer
Small body, long lower wick → buyers stepping in.
Appears after a downtrend → bullish reversal signal.
4️⃣ Shooting Star
The opposite of a hammer: small body, long upper wick.
Appears at the top of an uptrend → bearish reversal signal.
5️⃣ Doji (Indecision Candle)
Tiny body, nearly equal open/close price
→ signals uncertainty.
Why Does the Market Always Move Against You? Here’s How to Fix It!
If seen at the end of a trend, wait for the next candle to confirm direction.
How to Avoid Buying at the Top & Selling at the Bottom
✔ Wait for Confirmation – A pattern alone isn’t enough; follow-through candles matter.
✔ Check Volume – A real trend shift comes with strong volume.
✔ Use Support & Resistance – Avoid buying into resistance or selling into support.
✔ Be Patient – The best trades come to those who wait for the right signals.
Before making your next trade, take a step back. Check the 4H chart, look for key candlestick patterns, and trade with confidence—no more FOMO!