📊 "7 Powerful Candlestick Patterns Every Trader Must Know!"
🚀 Every candle tells a story — learn it and become a smart trader!
---
1. Doji – Sign of Market Confusion
📉📈
Meaning: When the opening and closing prices are nearly equal.
Signal: Market is indecisive, a trend reversal might occur.
Tip: Always check the next candle for confirmation.
---
2. Hammer – Reversal from Downtrend to Uptrend
🔨
Meaning: A long lower wick with a small body at the top.
Signal: Market may reverse upward from a downtrend.
Tip: More reliable if formed near a support zone.
---
3. Shooting Star – Reversal from Uptrend to Downtrend
🌠
Meaning: A long upper wick with a small body at the bottom.
Signal: Market may start falling after a rise.
Tip: Stronger when it appears near a resistance zone.
---
4. Bullish Engulfing – Strong Uptrend Signal
🟩🟥
Meaning: A large green candle that completely engulfs a smaller red candle.
Signal: Market may shift from downtrend to uptrend.
Tip: Confirm with volume and the next candle.
---
5. Bearish Engulfing – Strong Downtrend Signal
🟥🟩
Meaning: A large red candle that engulfs the previous small green one.
Signal: Uptrend may reverse into a downtrend.
Tip: Look for confirmation with the next candle.
---
6. Morning Star – Bullish Reversal Pattern
🌞
Meaning: A three-candle pattern – first red, second small (doji or hammer), third big green.
Signal: Downtrend could reverse to an uptrend.
Tip: Works best at support levels.
---
7. Evening Star – Bearish Reversal Pattern
🌆
Meaning: A three-candle pattern – first green, second small (doji or shooting star), third big red.
Signal: Uptrend could reverse to a downtrend.
Tip: Works best at resistance zones.
---
💡 Pro Tip: To make better decisions, always check for confirmation using volume, RSI, and support/resistance levels.