📊 Candlestick Patterns Every Trader Must Know
Understanding candlestick patterns is essential for successful trading. They reveal market psychology and help predict price movements. Here's a simplified cheat sheet to help you trade smarter:
🟩 Bullish Patterns (Buy Signals)
Reversal (Bearish to Bullish):
Hammer: Long lower wick — signals a possible upward reversal.
Inverted Hammer: Weak selling — bulls may step in.
Bullish Engulfing: Big green candle swallows red — trend reversal.
Tweezer Bottom: Double low — strong support zone.
Morning Star: Reversal pattern after a downtrend.
Three Stars in the South: Rare but powerful bullish sign.
Continuation (Bullish Trend Continues):
Bullish Three Line Strike: Short dip before another rally.
Rising Three Methods: Small pullback during an uptrend.
Bullish Mat Hold: Buyers quickly overcome the dip.
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🟥 Bearish Patterns (Sell Signals)
Reversal (Bullish to Bearish):
Hanging Man: Looks like a hammer but signals a drop.
Shooting Star: Sharp upper wick — likely reversal down.
Bearish Engulfing: Red candle overtakes green — trend change.
Tweezer Top: Price fails to rise again — time to sell.
Evening Star: Marks the end of an uptrend.
Continuation (Bearish Trend Continues):
Bearish Three Line Strike: Brief green, then more downside.
Falling Three Methods: Weak upward move — trend stays down.
Bearish Mat Hold: Short squeeze followed by strong selling.
Advance Block: Momentum slowing — watch for reversal.
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💡 Final Tip:
These patterns reflect real emotions in the market. Study them well — every great trader started with the basics!
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