Here are the 8 essential candle patterns to enhance your trading skills:

Bullish Patterns

- *Hammer*: Appears after a downtrend, indicating a strong reversal signal as bears lose control and bulls take over.

- *Inverted Hammer*: Although it looks weak, this pattern signifies buyers testing the upside, potentially leading to bullish momentum.

- *Dragonfly Doji*: Characterized by a flat open/close and long lower wick, indicating buyers stepping in hard and potentially leading to a bullish move.

- *Bullish Spinning Top*: Features a small body with big wicks, suggesting market uncertainty but potential bullish momentum after a downtrend.

Bearish Patterns

- *Hanging Man*: Appears at the top of an uptrend, signaling sellers gaining control and potentially leading to a reversal or profit-taking opportunity.

- *Shooting Star*: Indicates a failed pump, with a long upper wick signifying a buyer trap and potential reversal.

- *Gravestone Doji*: Signals strong rejection as price goes high and then drops, often leading to a reversal.

- *Bearish Spinning Top*: Appears after an uptrend, indicating fading momentum and potential stall or reversal.

Tips for Effective Use

- *Combine with Support/Resistance*: Candle patterns work best when used with support and resistance levels.

- *Volume Confirmation*: Look for volume confirmation to strengthen your trading decisions.

- *Next Candle Behavior*: Pay attention to the next candle's behavior to gauge market direction.

By mastering these candle patterns and incorporating them into your trading strategy, you'll be better equipped to spot reversals early and make informed decisions ¹.