🚨 Master These Candlestick Patterns to Minimize Losses! ✅👇
Understanding these key candlestick patterns can significantly improve your trading decisions. Learn to spot them and gain an edge in the markets!
1. Bullish Engulfing
• A small red candle followed by a large green candle that completely engulfs the red one.
• Signals a possible reversal to an uptrend.
• Stronger confirmation with high trading volume.
2. Bearish Engulfing
• A small green candle followed by a large red candle engulfing the green one.
• Indicates a potential bearish reversal.
• More reliable when seen at the peak of an uptrend.
3. Dark Cloud Cover
• A green candle followed by a red candle opening above the previous close.
• The red candle closes below the midpoint of the green one.
• Suggests a bearish reversal, especially in an uptrend with high volume.
4. Cloud Break
• Occurs when the price breaks through a resistance level.
• A strong green candle confirms the continuation of an uptrend.
• Most effective with increasing volume.
5. Tweezers (Top & Bottom)
• Tweezer Top: Two nearly identical highs with small candle bodies, signaling resistance.
• Tweezer Bottom: Two nearly identical lows, indicating support.
• Both patterns suggest a possible reversal.
6. Bullish Harami
• A large red candle followed by a small green candle within its body.
• Hints at a reversal from bearish to bullish.
• Stronger when it appears at a support level.
7. Bearish Harami
• A large green candle followed by a small red candle inside its body.
• Suggests a bearish reversal, especially near resistance.
• Confirmation with a third bearish candle strengthens the signal.
8. Division Pattern
• Alternating green and red candles showing market indecision.
• May indicate a breakout in either direction.
• Confirm with volume or trend analysis.
9. Bullish Counter-Attack
• A red candle followed by a green one opening at the same price.
• The green candle closes near or at the previous open.