🔼 Bullish Candlestick Patterns (Indicate upward trend or reversal)
1. Dragonfly Doji
Meaning: Strong reversal signal, often found at the bottom of downtrends.
Shape: Open, high, and close are at the same price; long lower shadow.
Signal: Buyers took control by the end of the session.
2. Hammer
Meaning: Reversal signal at the bottom of a downtrend.
Shape: Small body with long lower shadow.
Signal: Bears pushed the price down but bulls regained control.
3. Bullish Engulfing
Meaning: Strong reversal pattern.
Shape: Small red candle followed by a large green candle that fully "engulfs" it.
Signal: Buyers have taken over.
4. Piercing
Meaning: Reversal after a downtrend.
Shape: Red candle followed by a green candle that opens lower but closes above the midpoint of the red candle.
Signal: Buying pressure increasing.
5. Tweezer Bottom
Meaning: Reversal at the bottom.
Shape: Two candles with matching lows.
Signal: Support level holding strong.
6. Three White Soldiers
Meaning: Strong bullish trend.
Shape: Three long green candles consecutively closing higher.
Signal: Sustained buying pressure.
7. Morning Star
Meaning: Bullish reversal pattern.
Shape: A red candle, a small-bodied candle (star), then a green candle closing above the midpoint of the first.
Signal: Shift from sellers to buyers.
---
🔽 Bearish Candlestick Patterns (Indicate downward trend or reversal)
1. Gravestone Doji
Meaning: Reversal at the top of an uptrend.
Shape: Open, low, and close are at the same price; long upper shadow.
Signal: Buyers lost control to sellers.
2. Shooting Star
Meaning: Reversal signal at the top.
Shape: Small body with a long upper shadow.
Signal: Price rejected at high levels.
3. Bearish Engulfing
Meaning: Strong reversal pattern.
Shape: Small green candle followed by a large red candle engulfing it.
Signal: Selling pressure has overtaken buying.
4. Dark Cloud Cover
Meaning: Reversal from an uptrend.
Shape: Green candle followed by a red candle that opens higher but closes below the midpoint of the green candle.
Signal: Shift from buyers to sellers.
5. Tweezer Top
Meaning: Reversal at the top.
Shape: Two candles with matching highs.
Signal: Resistance level is holding.
6. Three Black Crows (Dark Crows)
Meaning: Strong bearish signal.
Shape: Three long red candles consecutively closing lower.
Signal: Sustained selling pressure.
7. Evening Star
Meaning: Bearish reversal pattern.
Shape: Green candle, small-bodied candle (star), then red candle closing below the midpoint of the first.
Signal: Buyers losing control to sellers.
