Here are 10 powerful candlestick patterns that are widely used in trading markets
1. Bullish Engulfing
Signal: Strong uptrend
Description: A small red candle is followed by a large green candle that completely engulfs it.
2. Bearish Engulfing
Signal: Strong downtrend
Description: A small green candle is followed by a large red candle that completely engulfs it.
3. Doji
Signal: Market indecision or potential reversal
Description: The opening and closing prices are almost the same, forming a cross or plus sign.
4. Hammer
Signal: Bullish reversal (especially after a downtrend)
Description: Small body, long lower wick, little to no upper wick.
5. Shooting Star
Signal: Bearish reversal (especially after an uptrend)
Description: Small body, long upper wick, little to no lower wick.
6. Morning Star
Signal: Bullish reversal
Description: Three candles — a long red candle, a small indecisive candle, and a strong green candle.
7. Evening Star
Signal: Bearish reversal
Description: Three candles — a long green candle, a small candle, then a strong red candle.
8. Tweezer Bottom
Signal: Bullish reversal
Description: Two candles with almost identical lows, usually after a downtrend.
9. Tweezer Top
Signal: Bearish reversal
Description: Two candles with almost identical highs, usually after an uptrend.
10. Marubozu
Signal: Strong bullish or bearish trend
Description: A candle with no wicks — just a full body. Green Marubozu = strong buyers, Red = strong sellers.
Would you like images or diagrams for each of these patterns as well?