🚀 Bullish patterns:
1️⃣ Rails (bullish rail lines)
- Two strong candles of opposite colors.
- The second (green) candle completely negates the first red candle.
- Indicates a sharp reversal from bearish to bullish.
- Confirmation is needed with high volume or subsequent green candles.
2️⃣ Three White Soldiers (similar to three white swans)
- Three consecutive strong green candles.
- Each candle opens within the body of the previous candle and closes higher.
- Indicates a strong continuation of the bullish trend.
- Works best in an oversold market.
3️⃣ Mat Hold (bullish continuation pattern)
- A strong green candle followed by several smaller candles in consolidation.
- The last green candle breaks the consolidation level.
- Confirms the continuation of bullish momentum.
- Reliable in an uptrend with high volume.
4️⃣ Pin-bar (bullish reversal signal)
- A small body with a long lower shadow.
- Shows a deviation from lower prices and a potential bullish reversal.
- Stronger when at a key support level.
- Needs confirmation with a bullish candle after this.
5️⃣ Engulfing (bullish engulfing)
- A small red candle followed by a large green candle.
- A green candle completely engulfs the previous red candle.
- Signals a strong bullish reversal.
- Works best at the end of a downtrend.
6️⃣ Harami (bullish harami)
- A large red candle followed by a small green candle inside its body.
- Indicates a potential reversal from bearish to bullish.
- A stronger signal when it occurs at a support level.
- Confirmation is needed with a third bullish candle.
7️⃣ Morning Star
- A three-candle pattern: a large red candle, a small indecisive candle, and a strong green candle.
- Signals a transition from bearish to bullish.
- The middle candle can be a doji or a candle with a small body.
- Confirmation is mandatory with a strong green candle.
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🐻 Bearish patterns:
1️⃣ Rails (bearish rail lines)
- Two strong candles of opposite colors.
- The second (red) candle completely negates the first green candle.
- Indicates a sharp reversal from bullish to bearish.
- Confirmation is needed with high volume or subsequent red candles.
2️⃣ Three Black Crows
- Three consecutive strong red candles.
- Each candle opens within the body of the previous candle and closes lower.
- Indicates a strong continuation of the bearish trend.
- Works best in an overbought market.
3️⃣ Mat Hold (bearish continuation pattern)
- A strong red candle followed by several smaller candles in consolidation.
- The last red candle breaks the consolidation level.
- Confirms the continuation of bearish momentum.
- Reliable in a downtrend with high volume.
4️⃣ Pin-bar (bearish reversal signal)
- A small body with a long upper shadow.
- Shows a deviation from higher prices and a potential bearish reversal.
- Stronger when at a key resistance level.
- Needs confirmation with a bearish candle after this.
5️⃣ Engulfing (bearish engulfing)
- A small green candle followed by a large red candle.
- A red candle completely engulfs the previous green candle.
- Signals a strong bearish reversal.
- Works best at the end of an uptrend.
6️⃣ Harami (bearish harami)
- A large green candle followed by a small red candle inside its body.
- Suggests a possible bearish reversal.
- More effective at the peak of an uptrend.
- Requires confirming bearish candle.
7️⃣ Morning Star
- A three-candle pattern: a large green candle, a small indecisive candle, and a strong red candle.
- Signals a transition from bullish to bearish.
- The middle candle can be a doji or a candle with a small body.
- Confirmation is mandatory with a strong red candle.
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