Candlestick Patterns and Their Meanings
Hammer: This is a bullish reversal pattern that appears after a downtrend. It indicates that buyers have stepped in to push the price back up, suggesting a potential change in trend.
Shooting Star: A bearish reversal pattern that forms after an uptrend. It signifies that buyers are losing strength and the price is likely to fall.
Bullish Engulfing: A large green candle that completely "engulfs" the previous small red candle. It is a strong bullish signal.
Bearish Engulfing: A large red candle that completely "engulfs" the previous small green candle. It is a strong bearish signal.
Doji: A small candlestick where the open and close prices are the same, forming a thin line. It indicates market indecision and a potential trend reversal.
Morning Star: A three-candlestick pattern that forms after a downtrend, signaling the start of a new bullish trend.
Evening Star: A three-candlestick pattern that forms after an uptrend, signaling the start of a new bearish trend.
Three White Soldiers: Three consecutive large green candles that indicate a strong bullish trend.
Three Black Crows: Three consecutive large red candles that indicate a strong bearish trend.
Spinning Top: A small-bodied candle with long upper and lower shadows. It indicates market indecision and a potential trend reversal, as neither buyers nor sellers are in control.