Appears after a downtrend
Signals strong buying interest
Confirmation with a bullish candle strengthens the signal
2️⃣ Inverse Hammer
Small body with a long upper wick
Found at the end of a downtren
Suggests a potential reversal if confirmed
3️⃣ Bullish Engulfing
A small red candle followed by a larger green candle that completely engulfs it
Signifies a strong shift to bullish momentum
Especially effective near key support zones
4️⃣ Piercing Line
Red candle followed by a green one that closes above its midpoint
Indicates a potential bullish reversal when confirmed
5️⃣ Morning Star
Three candles: a red candle, a small-bodied candle (indecision), and a green candle
Marks a transition from bearish to bullish
Works well around support levels
6️⃣ Three White Soldiers
Three strong green candles in a row
Each opens within the previous candle and closes higher
Signals sustained bullish strength
📉 Bearish Candlestick Patterns (Signal a Potential Downtrend)
1️⃣ Hanging Man
Small body with a long lower wick
Appears at the top of an uptrend
Warns of a possible bearish reversal
2️⃣ Shooting Star
Small body with a long upper wick
Forms at the peak of an uptrend
Indicates selling pressure and a potential reversal
3️⃣ Bearish Engulfing
A small green candle followed by a larger red one that engulfs it
Signals a shift to bearish sentiment
Stronger at resistance areas
4️⃣ Evening Star
Three candles: green, small-bodied (indecision), and red
Suggests a reversal from bullish to bearish at the top
5️⃣ Three Black Crows
Three strong red candles in succession
Each opens within the previous body and closes lower
Reflects strong bearish momentum
6️⃣ Dark Cloud Cover
A green candle followed by a red one closing below its midpoint
Suggests a bearish reversal setup
🔄 Continuation Candlestick Patterns (Indicate Trend Continuation)
1️⃣ Doji
Tiny body with long wicks on both ends
Reflects indecision in the market
Requires confirmation to predict trend direction
2️⃣ Spinning Top
Small body with long upper and lower wicks
Shows market uncertainty
Could signal either continuation or reversal, depending on context
3️⃣ Falling Three
A strong red candle, followed by small green candles within its range, ending with another red
Confirms the continuation of a bearish trend
4️⃣ Rising Three
A strong green candle, followed by small red candles within its range, ending with another green
Confirms the continuation of a bullish trend
✨ Understanding these patterns can help traders anticipate market moves and make better decisions.
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