🔥 4 Must-Know Candlestick Patterns for Every Trader! 🔥

🔨 1. Hammer Candle

Type: Bullish Reversal

Appears: After a downtrend

Meaning: Buyers regain control after sellers fail to push further down.

📌 Entry: Wait for a confirming green candle.

🛡️ Stop Loss: Just below the hammer’s low.

⭐ 2. Shooting Star

Type: Bearish Reversal

Appears: After an uptrend

Meaning: Sellers step in as buyers fail to hold higher levels.

📌 Entry: Confirmed by a red candle.

🛡️ Stop Loss: Above the star’s high.

🐂 3. Bullish Engulfing

Type: Bullish Reversal

Appears: After a downtrend

Meaning: A strong green candle fully engulfs the prior red candle → clear buying strength.

📌 Entry: After the engulfing candle closes.

🛡️ Stop Loss: Below the engulfing candle’s low.

🐻 4. Bearish Engulfing

Type: Bearish Reversal

Appears: After an uptrend

Meaning: A strong red candle engulfs the previous green candle → sellers take charge.

📌 Entry: After the engulfing candle closes.

🛡️ Stop Loss: Above the engulfing candle’s high.

📊 Check out the candlestick chart below 👇