Still guessing your way through the market? It's time to level up. Understanding these 14 candlestick patterns can help you make smarter and more confident trading decisionsâjust like professional traders.
Whatâs a Candlestick?
A candlestick is a charting tool that shows how the price of an asset moved during a specific time period.
It includes:
* The body, which shows the open and close prices
* The wicks (or shadows), which indicate the highest and lowest price points during that period
Colors:
* Green means the price increased
* Red means the price decreased
Bullish Patterns: Signals That Price May Rise
Single-Candle Patterns:
1. Hammer â A long lower wick can mean the price is about to rise
2. Inverted Hammer â Could signal a possible upward breakout
3. Dragonfly Doji â Suggests strong buying interest
4. Spinning Top â Indicates indecision but can flip bullish
Two-Candle Patterns:
5. Bullish Kicker â A strong gap up points to aggressive buying
6. Bullish Engulfing â A green candle fully overtakes a red one, showing buyer dominance
7. Piercing Line â Indicates price bouncing back from a low
8. Bullish Harami â A small green candle inside a larger red one, suggesting a slow reversal
9. Tweezer Bottom â Two candles forming a bottom support zone
Strong Multi-Candle Setups:
10. Morning Star â Often signals a trend reversal from down to up
11. Three White Soldiers â Points to the beginning of a strong upward trend
12. Engulfing Sandwich â Suggests buyers are taking over
13. Morning Doji Star â Shows weak selling pressure followed by strong buying
14. Rising Three Method â Confirms an ongoing uptrend
Why These Patterns Matter:
* Spot trend reversals early
* Ride strong market moves
* Avoid fake signals
* Sharpen your entry timing
Study them, apply them, and start trading smarter.
Want to learn bearish patterns too?
Comment: âBEAR MODEâ
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