$BTC

Key candlestick patterns every trader should know 🕯️

1. Hammer – A bullish reversal candle formed after a downtrend, signaling potential upward movement.

2. Hanging Man – A bearish reversal candle observed at the peak of an uptrend, warning of a possible decline.

3. Doji – Represents market indecision where the opening and closing are nearly identical, often preceding reversals or continuations.

4. Bullish Engulfing – A two-candle pattern where a strong bullish candle completely engulfs the previous bearish candle, suggesting upward price movement.

5. Bearish Engulfing – A bearish candle that engulfs a prior bullish candle, often indicating downward pressure.

6. Morning Star – A three-candle bullish reversal pattern following a downtrend.

7. Evening Star – The bearish counterpart, signaling a potential peak after an uptrend.