#TradingTypes101
Key Candlestick Reversal Patterns
Bullish Engulfing Candle
This pattern features two candles: a small bearish candle followed by a larger bullish candle that completely engulfs the previous body. It signals a potential upward price reversal.
Bearish Engulfing Candle
The inverse of the bullish engulfing pattern, this consists of a small bullish candle followed by a larger bearish candle that engulfs it, suggesting a possible downward trend.
Morning Star Pattern
A three-candle formation indicating a shift from a downtrend to an uptrend. It includes a bearish candle, a small-bodied candle (often signaling indecision), and a strong bullish candle confirming the reversal.
Evening Star Pattern
This is the opposite of the Morning Star. It begins with a bullish candle, followed by a small-bodied candle, and ends with a strong bearish candle, signaling a potential trend reversal to the downside.