Understanding candlesticks can help you spot reversals before they happen. Here are the key patterns every trader must know:
📈 Bullish Patterns (Hint: Possible Uptrend Ahead)
1️⃣ Bullish Engulfing
🔹 Small red candle ➜ followed by a larger green one that completely engulfs it.
🔹 Strong signal of buyer momentum.
2️⃣ Morning Star
🔹 3-part reversal:
1. Long red candle
2. Small indecisive candle
3. Strong green candle
🔹 Signals a potential trend reversal from bearish to bullish.
3️⃣ Bullish Pin Bar
🔹 Small body + long lower wick.
🔹 Rejection of lower prices = buyers stepping in.
4️⃣ Bullish Harami
🔹 Big red candle ➜ followed by a small green one inside it.
🔹 Shows bearish momentum is weakening.
📉 Bearish Patterns (Watch for Downside Risk)
1️⃣ Bearish Engulfing
🔹 Small green candle ➜ followed by a large red one that fully engulfs it.
🔹 Indicates sellers are taking control.
2️⃣ Evening Star
🔹 3-part reversal:
1. Strong green candle
2. Small indecisive candle
3. Big red candle
🔹 Suggests a shift from bullish to bearish.
3️⃣ Bearish Pin Bar
🔹 Small body + long upper wick.
🔹 Rejection of higher prices = bearish pressure.
4️⃣ Bearish Harami
🔹 Big green candle ➜ followed by a small red one within its body.
🔹 Signals buyers are losing strength.
✨ Pro Tip: Candlestick patterns are more powerful when used alongside volume, RSI, and moving averages. Don’t trade off patterns alone — confirm with confluence!
#TrendingTopic #TradingCommunity
Pro Reward $BNB
Claim your reward for learning
Scan and win exclusive rewards and prize 🏆
Scan below 👇
