Powerful Candle Patterns Every Trader Should Know!
✅ 1. Hammer Candle 🔨
Type: Bullish Reversal
When? After a Downtrend
Signal: Buyers step in and push the price up after sellers fail to continue.
📍 Entry: After confirming the green candle.
🛡️ Stop Loss: Below the bottom of the hammer.
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🌟 2. Shooting Star ⭐
Type: Bearish Reversal
When? After an Uptrend
Signal: Sellers take control after buyers fail to maintain the high price.
📍 Entry: After confirming the red candle.
🛡️ Stop Loss: Above the top of the shooting star.
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🟢 3. Bullish Engulfing 🐂
Type: Bullish Reversal
When? After a Downtrend
Signal: The green candle completely engulfs the previous red candle → Strong buying pressure!
📍 Entry: After closing the engulfing candle.
🛡️ Stop Loss: Below the lowest point of the engulfing candle.
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🔴 4. Bearish Engulfing 🐻
Type: Bearish Reversal
When? After an Uptrend
Signal: The red candle completely engulfs the previous green candle → Seller dominance!
📍 Entry: After closing the engulfing candle.
🛡️ Stop Loss: Above the highest point of the engulfing candle.
This is the candle image 👇
✅ Professional Tip: Always make sure to use volume and trend indicators before entering any trade!
💬 What pattern do you use the most? Share your thoughts below!👍
