🔥 Candlestick Patterns — The Secret Price Action Guide

The price doesn't lie. But the candles tell you the story behind the numbers.

👉 Learn how to decode market sentiment and spot opportunities before they happen! 🔮


Welcome to Episode 12 of:

"Understand indicators like a pro" 🔍

Today's topic: Candlestick patterns — the hidden language of price action



🧠 What are Japanese candlestick patterns?


Candlestick patterns represent price movement over a specific period of time.

It reflects market psychology — are traders inclined to buy or sell?


The best?

Candlestick patterns can predict the next move by displaying the psychological struggle between bulls and bears.



📌 The most important candlestick patterns you should know:


1. Bullish Engulfing Candle

A large bullish candle engulfs a small bearish candle.

👉 Indication of a bullish reversal after a downtrend


2. Bearish Engulfing Candle

A large bearish candle engulfs a small bullish candle.

👉 Indication of a bearish reversal after an uptrend


3. Doji candle

Small body and long shadows — indicate market indecision

👉 It may indicate a reversal or continuation of the trend, depending on the context.


4. Hammer candle

Small body on top and long lower shadow

👉 Bullish reversal pattern if it appears after a decline


5. Shooting Star Candle

Small body at the bottom and a long upper shadow

👉 Bearish reversal pattern if it appears after an uptrend



📊 How to use it in trading?


✅ Wait for confirmation: Don't trade based on just one candle — wait for the next candle or signals from other indicators.

✅ Combine it with support and resistance: The appearance of a candle pattern at a support or resistance level gives it greater credibility.

✅ Use volume: Having high trading volume during the pattern's appearance enhances its strength.



🚀 Professional trading strategy:


  • Wait for a bullish engulfing pattern at support or a bearish engulfing pattern at resistance.


  • Enter the trade when the next candle is confirmed.


  • Place the stop loss below or above the bottom/top of the pattern.


  • Take profits at the next support or resistance areas.





📌 Next episode: RSI Indicator — Your guide to entering and exiting at the perfect time 🕹️📉

Follow me now to discover the secrets of overbought and oversold areas!