New traders often ignore candlestick signals — and that’s when the losses begin.
Here are 3 powerful patterns that helped me avoid fake breakouts and dumps 👇
---
1️⃣ Bearish Engulfing (Top Reversal)
🕯️ A small green candle followed by a large red candle that engulfs the previous one.
📍Seen near resistance = strong warning sign of incoming drop.
✅ I avoided a long when I saw this near a 4H supply zone — price dumped right after.
---
2️⃣ Doji (Indecision & Reversal Signal)
➖ Candle with a tiny body and long wicks on both sides.
🧠 Means buyers and sellers are confused. Often shows up before a trend reversal.
⚠️ If you see this after a strong rally — wait! The momentum might be dying.
---
3️⃣ Hammer (Bottom Reversal)
🔨 Small body with a long wick below. Usually forms after a downtrend.
📌 Signals buyers are stepping in — potential bounce setup.
💡 I spotted this near support + volume confirmation = low-risk long, big bounce.
---
📈 How to Use Them:
Look for these patterns at key support/resistance zones
Confirm with volume, trendlines, or EMAs
Always set Stop Loss in case it fails — no setup is 100%
---
💬 Have these patterns ever helped you avoid a bad trade or catch a bounce?
Comment your favorite candlestick pattern below 👇