📉 Bearish Candlestick Patterns (Indicate Possible Downward Trend)
1️⃣ Hanging Man - Small body with a long lower wick. - Appears at the top of an upward trend. -
Reversal. 2️⃣ Shooting Star - Small body with a long upper wick. - Appears at the top of an upward trend. - Indicates strong selling pressure.
3️⃣ Bearish Engulfing - A small green candle followed by a large red candle that engulfs it. - Indicates a bearish reversal. - Stronger when appearing at resistance levels.
4️⃣ Evening Star - Three candles: green, small body (indecision), and red. - Indicates a bearish reversal at the top of an upward trend.
5️⃣ Three Black Crows - Three consecutive strong red candles. - Each opens within the body of the previous candle and closes lower. - Indicates a strong downward trend.
6️⃣ Dark Cloud Cover - A green candle followed by a red candle that closes below its midpoint. - Indicates a potential reversal of the trend. ---
🔄 Continuation Candlestick Patterns (Indicate Continuation of Trend)
1️⃣ Doji Candle - Small body with long wicks on both sides. - Indicates market indecision. - Needs confirmation to determine the direction of the trend.
2️⃣ Spinning Top Candle - Small body with long upper and lower wicks. - Indicates uncertainty in the market. - Indicates potential continuation or reversal of the trend based on confirmation.
Confirmation.
3️⃣ Bearish Three Methods - A long red candle followed by small green candles within its range, then a red candle.