🔼 BULLISH CANDLESTICK PATTERNS
1. Hammer
Structure: Small body, long lower wick.
Meaning: Appears after a downtrend. Shows rejection of lower prices and potential reversal upward.
Psychology: Sellers pushed the price down, but buyers fought back and closed near the open.
2. Bullish Engulfing
Structure: A small red candle followed by a larger green candle that completely engulfs it.
Meaning: Strong reversal signal in a downtrend.
Psychology: Buyers have taken control, overwhelming previous sellers.
3. Morning Star
Structure: Three candles – red (down), small indecisive candle (doji or spinning top), then a green candle.
Meaning: Reversal from bearish to bullish trend.
Psychology: Sellers lose momentum, buyers regain strength.
4. Piercing Line
Structure: Large red candle followed by a green candle that opens lower but closes more than halfway into the red candle’s body.
Meaning: Sign of reversal at support.
Psychology: Bears lose grip, bulls push back strongly.
5. Inverted Hammer
Structure: Small body with long upper wick, found after a downtrend.
Meaning: Potential reversal; buyers attempted to push higher.
Psychology: Indicates buying interest after prolonged selling.
🔽 BEARISH CANDLESTICK PATTERNS
6. Shooting Star
Structure: Small body with a long upper wick, appears at the top of an uptrend.
Meaning: Potential reversal to the downside.
Psychology: Bulls pushed price higher, but bears rejected the move.
7. Bearish Engulfing
Structure: Small green candle followed by a large red candle that engulfs it.
Meaning: Reversal pattern at the top of an uptrend.
Psychology: Sellers overtook buying momentum completely.
8. Evening Star
Structure: Green candle, followed by a small indecision candle, then a strong red candle.
Meaning: Reversal signal at the top.
Psychology: Buyers lose control, and sellers take over.
9. Dark Cloud Cover
Structure: Green candle followed by a red candle that opens above but closes below the midpoint of the green one.
Meaning: Reversal signal at resistance.
Psychology: Bullish sentiment is quickly overwhelmed.
10. Hanging Man
Structure: Similar to hammer but appears after an uptrend.
Meaning: Potential top signal.
Psychology: Bears are starting to appear as buyers weaken.
✅ BONUS EDUCATION TIPS FOR CANDLESTICK PATTERNS
Always confirm with volume, support/resistance zones, or indicators.
Look for patterns on higher timeframes (1H and above) for stronger signals.
Don’t trade on candlestick patterns alone—use them as part of a full trading setup.
