#CryptoCharts101 📉 Reversal Candlestick Patterns

1. Hammer (Hammer)

• 🟩 Appears at the bottom of a downtrend.

• Shape: short body, long lower shadow.

• ✅ Signal for a potential upward reversal.

2. Hanging Man (Hanging Man)

• 🟥 Appears at the top of an uptrend.

• Shape is like the hammer, but at the top.

• ⚠️ Warning of a possible downward reversal.

3. Engulfing (Engulfing)

• Bullish Engulfing: green candle covers the body of the previous red one — upward reversal.

• Bearish Engulfing: red candle engulfs green one — downward reversal.

4. Morning and Evening Star (Morning/Evening Star)

• Morning Star = upward reversal (at the bottom): red → small → green.

• Evening Star = downward reversal (at the top): green → small → red.

5. Doji (Doji)

• Almost no body (opening price ≈ closing price), long shadows.

• Indicates indecision in the market, may foreshadow a reversal.

📈 Trend Continuation Patterns

6. Three White Soldiers (Three White Soldiers)

• Three long green candles in a row.

• Indicates a strong bullish trend.

⚠️ Useful Tips for Interpretation:

Use indicators (RSI, MACD) to confirm the signal.

• The longer the timeframe, the more reliable the signal (e.g., daily > 1h > 15m).