Master these chart patterns to avoid losses forever!
🟢 Bullish Candle Patterns 🟢 Bullish Candle Patterns (indicating a trend reversal to the upside)
1. Bullish Engulfing – A large green candle completely engulfs the previous red candle, signaling strong buying momentum.
2. Bullish Harami – Two candles have similar lows, indicating strong support levels and a potential reversal.
3. Morning Star – A three-candle pattern where a small-bodied candle appears between a red candle and a green candle, indicating a change from selling pressure to buying pressure.
4. Hammer – A candle with a small body and a long lower shadow, showing that sellers pushed the price down but buyers regained control.
5. Inverted Hammer – Similar to the hammer, but with a long upper shadow, signaling a potential bullish reversal after a downtrend.
6. Three Inside Up – A three-candle pattern where the first candle is red, followed by two green candles confirming the reversal.
7. Three White Soldiers – Three consecutive green candles with closing prices that progressively rise, indicating strong bullish momentum.
🔴 Bearish Candle Patterns (indicating a trend reversal to the downside)
8. Bearish Engulfing – A large red candle engulfs the previous green candle, signaling strong selling pressure.
9. Bearish Harami – Two candles have similar highs, indicating strong resistance and potential downside.
10. Evening Star – A three-candle bearish reversal pattern where a small-bodied candle appears between a green candle and a red candle, signaling a shift from buying to selling.
11. Shooting Star – A small-bodied candle with a long upper shadow, showing that buyers pushed the price up but failed to maintain momentum.
12. Three Black Crows – Three consecutive red candles with closing prices that progressively decline, indicating strong bearish momentum.
13. Three Inside Down – A bearish reversal pattern where the first candle is green, followed by two red candles confirming the downtrend.
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⚪ Neutral or Uncertainty Patterns
14. Spinning Top – A candle with a small body and long shadows on both sides, indicating market uncertainty.
15. Doji – A candle with an opening and closing price that are nearly the same, indicating market indecision.
These patterns help traders predict market movements and make informed trading decisions.