👉 Bearish Candle Patterns (Indicate a Potential Downtrend)
1️⃣ Shooting Star
- Small body at the bottom with a long upper wick.
- Indicates a possible reversal after an uptrend.
2️⃣ Hanging Man
- Small body at the top with a long lower wick.
- Appears after an uptrend, warning of a bearish reversal.
3️⃣ Inverted Hammer
- Small body at the bottom with a long upper wick.
- Often found at the end of a downtrend, signaling a possible reversal.
4️⃣ Evening Star
- A three candle pattern: large bullish candle → small indecisive candle → bearish candle.
- Strong indicator of a reversal from an uptrend to a downtrend.
5️⃣ Doji Star
- A Doji followed by a strong bearish candle.
- Indicates indecision before a potential downtrend.
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📈 Bullish Candle Patterns (Indicate a Potential Uptrend)
6️⃣ Marubozu
- Full body candle with no wicks.
- Green Marubozu = strong bullish momentum.
- Red Marubozu = strong bearish momentum.
7️⃣ Long-Legged Doji
- Long upper and lower wicks with a small or nonexistent body.
- Indicates indecision in the market.
8️⃣ Bullish Harami
- A small green candle inside the body of a larger red candle.
- Indicates a possible reversal from a downtrend to an uptrend.
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📊 Neutral Candle Patterns (Indicate Market Indecision)
9️⃣ Doji
- The opening and closing prices are almost the same.
- Indicates uncertainty; more confirmation is needed for the trend direction.
🔟 Small Turn
- Small body with long upper and lower wicks.
- Suggests market indecision, often seen in consolidations.
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🌟 Key Conclusions
✅ Individual candle patterns provide early signals of trend reversal.
✅ Confirmation with volume and other indicators improves reliability.
✅ Combining patterns with support/resistance strengthens predictions.
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