#velasjaponesas. Understanding candle patterns can change your trading game.
These formations tell the story of buyers vs. sellers — and when learned correctly, they can signal powerful entries and exits before the big move begins.
Here are 5 patterns every trader should know:
🔹 Hammer
Looks like: Small body with a long lower wick
Appears: After a downtrend
Signals: Buyers are entering, trend reversal
Tip: Wait for the next green candle for confirmation
🔹 Bullish Engulfing
Looks like: Small red candle followed by a larger green candle
Appears: After a downtrend
Signals: Strong bullish momentum
Tip: Entry after the engulfing candle closes
🔹 Dragonfly Doji
Looks like: No upper wick, long lower shadow
Appears: After a decline
Signals: Rejection of lower prices
Tip: Check volume for strength
🔹 Piercing Line
Looks like: Red candle followed by a green candle that closes more than halfway up the red
Appears: At the bottom of a downtrend
Signals: Buyers are taking control
Tip: Watch for continuation candles
🔹 Tweezer Bottom
Looks like: Two candles with the same low
Appears: At the bottom of a drop
Signals: Double rejection of low prices
Tip: Combine with RSI or support zone for confidence
🔥 Master these patterns and start recognizing price action like a pro.
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