#TradingTypes101

Master These 7 Powerful Candlestick Patterns 📈

Ready to decode the secrets behind price movements? Here are 7 essential candlestick patterns every trader must know to spot market trends and reversals like a pro:

1️⃣ Hammer Candle

🪓 Bullish Reversal Signal

Spotted at the end of a downtrend, this pattern suggests a potential shift upwards. It shows buyers stepping in after heavy selling pressure.

2️⃣ Hanging Man Candle

💀 Bearish Reversal Alert

Looks like a Hammer, but forms at the top of an uptrend—a warning that sellers might be gaining control.

3️⃣ Doji Candle

⚖️ Market Indecision

A tiny candle with near-equal open and close prices. It means the market is in a state of uncertainty—a key point to watch for upcoming moves.

4️⃣ Bullish Engulfing Candle

🐂 Strong Buy Signal

Two candles: the second bullish candle fully engulfs the first bearish one. This often hints at rising momentum and a potential uptrend.

5️⃣ Bearish Engulfing Candle

🐻 Sell-Off Warning

The bearish twin to the previous pattern—when a large red candle swallows a smaller green one, it often signals downward pressure ahead.

6️⃣ Morning Star Pattern

🌅 Bullish Trend Reversal

A powerful 3-candle pattern that marks the end of a downtrend and the possible start of a bullish move.

7️⃣ Evening Star Pattern

🌇 Bearish Trend Reversal

The bearish counterpart to the Morning Star. Appears at the end of an uptrend, often forecasting a market downturn.