1. Hammer (Bullish Reversal)
• Appearance: A small upper body with a long lower wick.
• Meaning: Occurs after a downtrend, indicating a potential reversal to the upside.
The long lower wick shows that sellers tried to push the price down, but buyers regained control.
2. Inverted Hammer (Bullish Reversal)
• Appearance: A small lower body with a long upper wick.
• Meaning: Occurs at the end of a downtrend, suggesting a potential reversal to the upside.
The long upper wick shows buying pressure, but sellers have temporarily pushed the price down.
3. Pendulum Man (Bearish Reversal)
• Appearance: A small upper body with a long lower wick.
• Meaning: Occurs at the top of an uptrend, indicating a potential reversal to the downside.
The long lower wick shows increasing selling pressure, despite buyers maintaining control.
4. Shooting Star (Bearish Reversal)
• Appearance: A small body at the bottom with a long upper wick.
• Meaning: Occurs at the top of an uptrend, signaling a possible downside reversal.
The long upper wick shows that buyers have tried to push the price higher, but sellers have taken control.