📘 **Chart Reading Education Series – Lesson Two: Japanese Candlestick Patterns** 🕯️
After we understood in the first lesson the components of a candlestick, now we will talk about **candlestick patterns** that help you predict the upcoming price movement.
🔍 **There are two main types of patterns:**
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🔥 **Reversal Patterns:**
Indicates that the current trend may reverse
Examples:
✅ **Hammer:**
A small candle with a long shadow below → appears after a decline and may indicate an uptrend
✅ **Shooting Star:**
The opposite of the hammer → appears after an uptrend and may indicate a downtrend
✅ **Engulfing:**
A candle that completely engulfs the previous candle → a strong sign of a trend change
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📈 **Continuation Patterns:**
Indicates that the current trend may continue
✅ **Doji:** A very small candle (approximately open = close) → indicates indecision and if it appears in a strong trend, it may continue the trend
✅ **Three White Soldiers / Three Black Crows:**
3 strong candles in a row in the same direction → confirms the continuation of the trend
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💡 Important Tip:
Candlesticks should always be viewed in the **context of the market**, meaning if they appear near resistance or support, their significance increases.
👇 The next post will be about:
**How to identify support and resistance on the chart?**
If you’re excited, leave me a comment or like to speed things up 🔥