Attention Beginner Traders:
These two candle patterns are known as confirmation candles—they help validate whether the price is likely to move up or down.
The first one on the left is a Hammer Candle. When it appears after a downtrend, it signals a potential bullish reversal, suggesting that the price may rise.
The next two green candles are known as Engulfing Candles. Why? Because they completely engulf the previous red candle.
Here’s what to note about the red candle:
It has two small wicks (top and bottom) and a large body, appearing within a downtrend. In an uptrend, the candle colors are simply reversed.
Good luck out there!
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