Message for All Beginner Traders:
In trading, some candles act as confirmation signals, helping you understand if the market will move up or down.
The first candle shown is known as a Hammer. When a hammer forms after a downtrend, it usually signals a potential upward reversal.
Next, we see two green candles called Engulfing Candles. Why this name?
Because they completely cover the previous red candle. Notice that the red candle has small wicks (both top and bottom) and a large body — this pattern typically appears during a downtrend. In an uptrend, the candle colors are simply reversed.
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