📊 Engulfing Patterns

Definition: When the body of the current candle fully covers the body of the previous candle.

• Bullish Engulfing: Appears after a downtrend. A small red candle is followed by a larger green candle that completely engulfs it — signaling strong buyer momentum and a possible trend reversal upward.

• Bearish Engulfing: Appears after an uptrend. A small green candle is followed by a larger red candle — indicating rising selling pressure and a potential downward reversal.

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🔄 Multiple Engulfings → Orderblock

Definition: When two or more engulfing candles appear back-to-back.

• Bullish Orderblock: A series of green engulfing candles suggesting strong institutional buying.

• Bearish Orderblock: Consecutive red engulfing candles may reveal aggressive selling by major players.

💡 Pro Tip: Orderblocks are often reliable zones of support or resistance and can offer high-probability trade setups.

✨ Doji Candles

Definition: Candles where the open and close prices are nearly identical, forming a small or nonexistent body.

• Star Doji: Indicates indecision; often appears before a trend reversal.

• Dragonfly Doji: A bullish reversal signal, especially effective after a downtrend.

• Gravestone Doji: A bearish reversal signal, commonly seen at the top of an uptrend.

• Spinning Tops: Small body with long wicks on both sides — reflects market uncertainty.

🏓 Long-Tailed Candles

Definition: A long wick on one end shows price rejection at that level.

• Hammer: Long lower wick; bullish reversal pattern after a decline.

• Inverted Hammer: Long upper wick; suggests bullish reversal, usually confirmed by a strong green candle.

• Shooting Star: Appears after an uptrend; bearish reversal indicator.

• Hanging Man: Similar to the hammer but appears after a rally; warns of a potential drop.

✂️ Tweezer Patterns

• Bullish Tweezer: Two candles at the bottom of a downtrend with matching lows — hints at a price floor.

• Bearish Tweezer: Appears at a market top with matching highs — potential for a bearish turn.

💎 Bonus Insight

The reliability of candlestick patterns increases with higher timeframes. Daily, weekly, and monthly charts often yield more accurate and actionable signals than shorter intervals.

🎯 Final Thoughts

Understanding and mastering candlestick patterns can give traders an edge in predicting market movements. Whether you’re new or experienced, using these visual cues can help improve timing, reduce risk, and enhance your overall trading performance.

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