To All Beginner Traders,

Today, let’s talk about two important confirmation candles — they help determine if the price is likely to go up or down.

The first candle (on the left) is called a Hammer Candle. When it appears after a downtrend, it signals a potential price reversal to the upside.

The two green candles (on the right) are known as an Engulfing Pattern. Why? Because together, they completely engulf the previous red candle. Notice that the red candle has small wicks (both upper and lower) and a large body compared to its wicks — all happening during a downtrend.

In an uptrend, the same rules apply but the candle colors are reversed.

Good luck to everyone!

Make sure to follow — I’ll be sharing four confirmed personal trades daily to help you learn and grow as a trader.

Stay well and trade smart!

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