CANDLESTICK PATTERNS FOR BEGINNERS READ MARKETS LIKE A PRO❗
Reading candlestick patterns like the ones in your chart can dramatically improve your trading accuracy but remember no pattern guarantees 100% profits. However if used with proper confirmation and risk management, these bullish reversal patterns can give you a strong edge.
Here’s a quick breakdown of some key patterns from the chart:
1. Bullish Engulfing – A large green candle completely engulfs the previous red one. Strong reversal signal.
2. Hammer – Small body with a long lower wick. Appears after a downtrend, indicating possible reversal.
3. Morning Star – A 3-candle setup signaling the end of selling pressure and start of bullish momentum.
4. Piercing Pattern – Green candle closes over halfway into the prior red candle. Signals strength returning.
5. Doji / Dragonfly Doji – Indecision candles often seen at the end of a downtrend. Use with volume confirmation.
6. Double Bottom – Price forms two lows at a similar level. Breakout above neckline = strong bullish continuation.
7. Head & Shoulders Inverse – Classic reversal pattern. Break above the neckline confirms the trend change.
Pro Tip: Combine these with volume spikes, RSI divergence, and support levels for more accurate entries. Candlestick patterns work best when part of a full strategy not in isolation.
The charts speak… only winners listen.