📈 Bullish patterns you shouldn't miss
1️⃣ Hammer
Small body with a long lower wick
Appears at the bottom of a downtrend
Indicates strong buying pressure
Confirmation of reversal: a bullish candle follows
2️⃣ Inverted Hammer
Small body with a long upper wick
At the bottom of a downward trend
Indicates a potential bullish reversal after confirmation
3️⃣ Bullish Engulfing
A small red candle followed by a large green candle that engulfs it
Strong shift from bearish to bullish
Effective at major support levels
4️⃣ Piercing Line
A red candle followed by a green candle that closes above the middle of the red candle
Bullish reversal upon confirmation
5️⃣ Morning Star
Three candles: red → small body → green
Indicates a shift from bearish to bullish
Works well at support areas
6️⃣ Three White Soldiers
Three consecutive strong green candles
Each candle opens within the body of the previous one and closes higher
Strong bullish momentum
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📉 Bearish patterns warn of reversal
1️⃣ Hanging Man
Small body with a long lower wick
Appears at the top of an uptrend
Indicates a potential reversal
2️⃣ Shooting Star
Small body with a long upper wick
Appears at the top of an uptrend
Strong selling pressure
3️⃣ Bearish Engulfing
A small green candle followed by a large red candle that engulfs it
Potential bearish reversal
Stronger at resistance levels
4️⃣ Evening Star
Three candles: green → small body → red
Bearish reversal at the top of an uptrend
5️⃣ Three Black Crows
Three consecutive strong red candles
Each candle opens within the body of the previous one and closes lower
Strong downward trend
6️⃣ Dark Cloud Cover
A green candle followed by a red candle that closes below its middle
Possible trend reversal
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🔄 Continuation patterns to confirm the trend
1️⃣ Doji
Small body with long wicks on both sides
Market hesitance, needs confirmation
2️⃣ Spinning Top
Small body with long upper and lower wicks
Market uncertainty
Trend continuation or reversal depending on confirmation
3️⃣ Three Downside
Long red candle → small green candles within its range → red candle
Confirmation of continuation of the downtrend
4️⃣ Three Upside
Long green candle → small red candles within its range → green candle
Confirmation of continuation of the uptrend
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✨ Remember: Understanding these patterns gives you the ability to make informed trading decisions and reveals market movements before others!
