📊 Top 5 Reversal Candlestick Patterns Every Trader Should Know 🔄
Whether you’re trading crypto, forex, or stocks, reversal patterns can help you spot early trend changes. Here are the 5 most reliable ones used by experienced traders:
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🔹 1) Hammer 🛠️ & Hanging Man 💀
• Hammer: Bullish reversal at the bottom of a downtrend.
• Hanging Man: Bearish reversal at the top of an uptrend.
🔍 Both have small bodies, long lower wicks, and signal momentum shift.
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🔹 2) Inverted Hammer & Shooting Star 🌠
• Inverted Hammer: Bullish signal after a downtrend.
• Shooting Star: Bearish signal after an uptrend.
🔍 Look for long upper wicks & confirmation on the next candle.
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🔹 3) Three Black Crows 🦅 vs Three White Soldiers ⚔️
• Three Black Crows: Three bearish candles → downtrend incoming.
• Three White Soldiers: Three bullish candles → strong uptrend.
🔍 Perfect for spotting momentum shifts over multiple sessions.
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🔹 4) Engulfing Patterns 🔄
• Bullish Engulfing: Large green candle swallows a red one → trend reversal.
• Bearish Engulfing: Big red candle covers a green one → potential drop.
🔍 Two-candle pattern, powerful when paired with volume.
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🔹 5) Piercing Line 🌤️ & Dark Cloud Cover ☁️
• Piercing Line: Bullish – green candle closes above the midpoint of prior red.
• Dark Cloud Cover: Bearish – red candle closes below midpoint of prior green.
🔍 Stronger signals with bigger gaps and follow-through candles.
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📌 Pro Tips:
✅ Wait for confirmation (next candle closing in the reversal direction)
✅ Use stop losses just beyond the pattern
✅ Combine with volume, trendlines, and key support/resistance
