📊 Learn Technical Analysis: Types of Candlesticks 🕯️
If you are trading in the financial markets, you must understand the language of candlesticks! Here are some of the most famous types:
1️⃣ Doji Candle
🕯️ Shape: Very small body, with long upper and lower shadows
📉 Meaning: Confusion in the market and potential reversal of trend
2️⃣ Hammer Candle
🔨 Shape: Small body at the top and long lower shadow
📈 Meaning: Could indicate a bullish reversal after a downtrend
3️⃣ Hanging Man Candle
🪓 Shape: Like the hammer, but occurs after an uptrend
📉 Meaning: Could be a signal of a potential decline
4️⃣ Engulfing Candle
🔥 Shape: A large candle that completely engulfs the previous candle
🔁 Meaning: Strong signal for trend reversal (bullish or bearish depending on color and order)
5️⃣ Morning Star Candle
🌟 Shape: Composed of 3 candles – bearish, doji/small, then bullish
🚀 Meaning: Signal for strong upward movement ahead
💡 Important Reminder:
Do not rely on candlesticks alone – combine them with indicators and support and resistance for stronger analysis!