Trading #candlesticks is all about understanding the battle between buyers and sellers. ⚔️
Here’s a breakdown of the most common patterns and what they tell you:
Bullish Signals 🟢
These patterns indicate buyers are in control and the price is likely to go up.
Big Green Candle: Shows strong bullish momentum. The price surged, and buyers dominated the trading session. 📈
Long Lower Wick: Buyers fought off a price drop. Even though sellers tried to push the price down, buyers quickly stepped in and pushed it back up. This is a sign of buying strength. 💪
Hammer: A bullish reversal pattern often found after a downtrend. It has a small body with a long lower wick, signaling that buyers regained control after sellers tried to push the price down.
Bearish Signals 🔴
These patterns suggest sellers are in charge,
and a downtrend may continue or begin.
Big Red Candle: Indicates heavy selling pressure, showing a strong bearish trend where sellers dominated. 📉
Long Upper Wick: Sellers rejected a price increase. Buyers attempted to push the price higher, but sellers crushed the move, forcing a pullback. ⚠️
Shooting Star: A bearish reversal pattern found at the top of an uptrend. It has a small body with a long upper wick, showing that buyers were rejected and sellers are taking over.
Market Indecision ⚪
These patterns signal a pause in the market, often before a big move.
Doji or Small Body: Neither buyers nor sellers are in charge. The open and close prices are very close, indicating market indecision. A trend reversal or a breakout could be coming. ⚖️
By learning these simple patterns, you can read the psychology behind the market and make more informed decisions. 🧠