🔥 Candlestick Patterns — The Ultimate Price Action Cheat Sheet!

Price never lies. But candlesticks tell you the story behind the price.

👉 Learn to decode market sentiment and spot opportunities before they happen! 🔮


Welcome to Episode 12 of:

"Learn Indicators Like a Pro" 🔍

Today’s topic: Candlestick Patterns — The Price Action Code You Need to Master



🧠 What Are Candlestick Patterns?


Candlestick patterns represent price movements over a specific time period.

They reflect market psychology — whether traders are feeling bullish or bearish.


The best part?

Candlestick patterns predict future price action by showing us the psychological battle between buyers and sellers.



📌 Key Candlestick Patterns to Know:


1. Bullish Engulfing

A large bullish candle engulfs a smaller bearish candle.

👉 This signals bullish reversal after a downtrend.


2. Bearish Engulfing

A large bearish candle engulfs a smaller bullish candle.

👉 This signals bearish reversal after an uptrend.


3. Doji

A small body with long wicks, signaling indecision in the market.

👉 Can indicate potential trend reversal or continuation, depending on context.


4. Hammer

A candlestick with a small body at the top and a long lower wick.

👉 Bullish reversal pattern if found at the bottom of a downtrend.


5. Shooting Star

A candlestick with a small body at the bottom and a long upper wick.

👉 Bearish reversal pattern if found at the top of an uptrend.



📊 How to Use Them in Trading:


✅ Wait for confirmation: Don’t trade on one candlestick alone — look for confirmation from the next candle or other indicators.

✅ Combine with support/resistance: Patterns at key levels (support/resistance) give them more weight.

✅ Use volume: Higher volume during a pattern strengthens its significance.



🚀 Pro Trading Strategy:


  • Wait for a bullish engulfing pattern near support or bearish engulfing near resistance.


  • Enter on confirmation from the next candle.


  • Set stop loss below or above the pattern's low/high.


  • Take profits at key levels of support/resistance.





📌 Next Episode: How to Use the RSI for Timing Perfect Entries & Exits 🕹️📉

Follow now to uncover the secrets behind overbought/oversold zones!