๐ Bullish Candlestick Patterns (Indicate a Potential Uptrend)
1๏ธโฃ Hammer
- Small body with a long lower wick.
- Appears at the bottom of a downtrend.
- Indicates strong buying pressure.
- Confirms reversal if followed by a bullish candle.
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2๏ธโฃ Inverse Hammer
- Small body with a long upper wick.
- Found at the bottom of a downtrend.
- Suggests potential bullish reversal after confirmation.
3๏ธโฃ Bullish Engulfing
- A small red candle followed by a large green candle engulfing it.
- Indicates a strong shift from bearish to bullish.
- Works well at key support levels.
4๏ธโฃ Piercing Line
- A red candle followed by a strong green candle.
- The green candle closes above the midpoint of the red candle.
- Suggests bullish reversal when confirmed.
5๏ธโฃ Morning Star
- Three candles: Red, small-bodied (indecision), and green.
- Indicates transition from bearish to bullish.
- Works well at support zones.
6๏ธโฃ Three White Soldiers
- Three consecutive strong green candles.
- Each opens within the previous candleโs body and closes higher.
- Indicates strong bullish momentum.
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๐ Bearish Candlestick Patterns (Indicate a Potential Downtrend)
1๏ธโฃ Hanging Man
- Small body with a long lower wick.
- Appears at the top of an uptrend.
- Indicates possible bearish reversal.
2๏ธโฃ Shooting Star
- Small body with a long upper wick.
- Appears at the top of an uptrend.
- Suggests strong selling pressure.
3๏ธโฃ Bearish Engulfing
- Small green candle followed by a large red candle engulfing it.
- Signals a bearish reversal.
- Stronger when appearing at resistance levels.
4๏ธโฃ Evening Star
- Three candles: Green, small-bodied (indecision), and red.
- Indicates a bearish reversal at the top of an uptrend.
5๏ธโฃ Three Black Crows
- Three consecutive strong red candles.
- Each opens within the previous candleโs body and closes lower.
- Suggests a strong bearish trend.
6๏ธโฃ Dark Cloud Cover
- A green candle followed by a red candle closing below its midpoint.
- Indicates potential trend reversal.
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๐ Continuation Candlestick Patterns (Indicate Trend Continuation)
1๏ธโฃ Doji
- Small body with long wicks on both sides.
- Shows market indecision.
- Needs confirmation for trend direction.
2๏ธโฃ Spinning Top
- Small body with long upper and lower wicks.
- Indicates market uncertainty.
- Signals possible continuation or reversal based on confirmation.
3๏ธโฃ Falling Three
- A long red candle followed by small green candles inside its range, then another red candle.
- Confirms continuation of the bearish trend.
4๏ธโฃ Rising Three
- A long green candle followed by small red candles inside its range, then another green candle.
- Confirms continuation of the bullish trend.
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โจ These patterns help traders make informed decisions about market trends.
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