1. 🛠️ Bullish Hammer
- Small body with a long lower wick.
- Appears at the bottom of a downtrend.
- Indicates that sellers are pushing prices down, but buyers take control.
- Confirmation is required with a green candle afterward. 2. 🔄 Inverted Hammer
- Similar to the hammer, but with a long upper wick instead of a lower wick.
- Indicates buyers attempting to push prices up after a decline.
- Requires confirmation with the next bullish candle.
3. 🐂 Bullish Engulfing
- A small red candle followed by a large green candle that completely engulfs the previous candle.
- Signifies strong buying momentum.
- More reliable if it occurs after a strong decline.
4. 🌟 Morning Star
- A three-candle pattern:
1️⃣ Long red candle.
2️⃣ Candle with a small body (red or green) indicating market indecision.
3️⃣ Strong green candle confirms the reversal.
- Indicates a shift from bearish sentiment to bullish.
5. ⚡ Piercing Line
- A two-candle pattern where:
1️⃣ The first candle is a strong red body.
2️⃣ The second green candle opens lower but closes more than half of the first red candle.
- Indicates buying strength and potential reversal.
6. 🎖️ Three White Soldiers
- Three consecutive long green candles with small wicks.
- Each candle opens within the body of the previous candle and closes higher.
- A strong bullish reversal pattern.
📌 How to Use These Patterns?
- Always confirm with volume, support levels, and additional indicators like RSI or moving averages.
- The stronger the confirmation (e.g., large bullish candle, increased volume), the more reliable the reversal.
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