🧠 12 Must-Know Candlestick Patterns for Crypto Traders

🔼 Bullish Reversals

1. Hammer

Long lower wick. Signals strong buying after a sell-off. Bullish if followed by a green candle.

2. Inverted Hammer

Long upper wick. Appears after a downtrend. Signals potential bullish reversal.

3. Bullish Harami

Small green candle inside a large red one. Selling pressure weakens.

4. Three White Soldiers

Three strong green candles. Indicates trend reversal and strong buyer control.

🔽 Bearish Reversals

5. Hanging Man

Looks like a hammer but at the top. Warns of trend exhaustion.

6. Shooting Star

Long upper wick. Bulls lose momentum. Bearish if confirmed by a red candle.

7. Bearish Harami

Small red candle inside a large green one. Buying pressure weakens.

8. Three Black Crows

Three red candles in a row. Strong selling momentum.

9. Dark Cloud Cover

Red candle opens above previous green but closes below its midpoint. Trend may reverse.

🔁 Continuations

10. Rising Three Methods

Green → few small reds → big green. Uptrend continues.

11. Falling Three Methods

Red → few small greens → big red. Downtrend resumes.

⚖️ Doji – Indecision Signals

12. Doji

Open ≈ Close. Signals hesitation.

Variants:

Dragonfly – Bullish

Gravestone – Bearish

Long-legged – Uncertainty

📌 Tips

✅ Use with RSI, MACD, volume

✅ Wait for confirmation

✅ Respect trend context

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