To trade well in the cryptocurrency market, one must first understand the 'language' of candlestick charts. Candlestick patterns contain signals of the battle between bulls and bears, especially these bullish and bearish patterns, which can help you assess the likelihood of market reversals.

I. Bullish Candlestick Patterns: Indicates that the downtrend is ending and an uptrend is coming.
1. Hammer
Appears at the bottom of a downtrend, with the most obvious feature being a long lower shadow, at least twice the length of the body (real body). This indicates that although there was considerable selling pressure that pushed the price down, buyers quickly stepped in to pull the price back close to the opening price. If it is a green hammer (closing price higher than the opening price), the bullish signal is stronger than that of a red hammer.

2. Inverted Hammer
The pattern is similar to the hammer but has a long upper shadow above the body. It usually also appears at the bottom of a downtrend, indicating that while sellers once pushed the price to a low, buyers began to resist, preventing further price declines, suggesting that the market may turn bullish.

3. Three White Soldiers
Composed of three consecutive green candlesticks, each opening within the range of the previous candlestick but closing above the previous candlestick's highest point, with short lower shadows. This indicates sustained buying strength, with buyers actively purchasing, representing a relatively clear bullish signal.

4. Bullish Engulfing Pattern
First, a long red candlestick (downtrend) appears, followed by a shorter green candlestick that is completely 'contained' within the body of the red candlestick. This indicates that the previous downtrend momentum is weakening and may be coming to an end, with a bullish trend likely to begin.


II. Bearish Candlestick Pattern: Indicates that the uptrend is ending and a downtrend is coming.
1. Hanging Man
Looks like a hammer pattern but appears at the end of an uptrend. Although buyers pushed the price higher, a large amount of selling pressure caused the price to pull back, suggesting that the uptrend may be coming to an end and that a downturn could occur at any time.

2. Shooting Star
The candlestick has a long upper shadow, a short body, and is close to the bottom, often appearing at the end of an uptrend. This indicates that after the price surged to a high level, sellers suddenly exerted pressure, driving the price down, suggesting that upward momentum is insufficient and a decline may be imminent.

3. Three Black Crows
Composed of three consecutive red candlesticks, each opening within the range of the previous candlestick but closing lower than the previous candlestick's lowest point. This indicates continuous selling pressure, with persistent selling driving the price lower, signaling a clear downtrend.

4. Bearish Engulfing Pattern
First, a long green candlestick (uptrend) appears, followed by a shorter red candlestick that is completely 'contained' within the body of the green candlestick. This indicates that buyer strength is weakening, and the uptrend may struggle to continue, potentially turning into a downtrend.

5. Dark Cloud Cover
The previous candlestick is green (uptrend), and the following candlestick is red (downtrend). The opening price of the red candlestick is higher than the closing price of the previous green candlestick, but the closing price drops below the midpoint of the green candlestick body, often accompanied by high trading volume. This resembles 'dark clouds' covering the previous uptrend, indicating that the market is likely to shift from rising to falling.


These candlestick patterns are essentially 'result records' of the battle between bulls and bears. Understanding them allows for more acute detection of market reversal signals. However, it is important to remember that a single pattern cannot be used as an absolute basis; signals are more reliable when combined with trends and trading volume.

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