Candlestick patterns are powerful tools to spot trend reversals, continuations, and market sentiment. Learn these key formations to boost your trading edge!

#### **📈 Bullish Reversal Patterns (Signaling Potential Uptrend)**

1️⃣ **Hammer**

- Short body, long lower wick.

- Forms at the **end of a downtrend**.

- Shows buyers stepping in aggressively.

- **Confirmation**: Next candle should be bullish.

2️⃣ **Inverse Hammer**

- Small body, long upper wick.

- Appears after a downtrend.

- Suggests a possible reversal if followed by bullish momentum.

3️⃣ **Bullish Engulfing**

- Small red candle **fully engulfed** by a large green candle.

- Indicates a strong shift from **selling to buying pressure**.

- Most reliable near **support levels**.

4️⃣ **Piercing Line**

- Red candle followed by a green candle closing **above its midpoint**.

- Early sign of bullish reversal.

5️⃣ **Morning Star**

- **3-candle pattern**: Red → Small-bodied (indecision) → Green.

- Signals **downtrend exhaustion** and bullish takeover.

6️⃣ **Three White Soldiers**

- **Three consecutive strong green candles**.

- Each opens within the prior candle’s body and closes higher.

- Shows **sustained buying pressure**.

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#### **📉 Bearish Reversal Patterns (Signaling Potential Downtrend)**

1️⃣ **Hanging Man**

- Small body, long lower wick.

- Forms **after an uptrend**.

- Warns of **possible bearish reversal**.

2️⃣ **Shooting Star**

- Small body, long upper wick.

- Appears at **peak of uptrend**.

- Suggests sellers are taking over.

3️⃣ **Bearish Engulfing**

- Small green candle **swallowed by a large red candle**.

- Strong reversal signal, especially near **resistance zones**.

4️⃣ **Evening Star**

- **3-candle pattern**: Green → Indecision candle → Red.

- Indicates **bullish exhaustion** and bearish reversal.

5️⃣ **Three Black Crows**

- **Three consecutive red candles** closing lower.

- Shows **strong selling momentum**.

6️⃣ **Dark Cloud Cover**

- Green candle followed by red candle closing **below its midpoint**.

- Early warning of **trend reversal**.

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#### **🔄 Continuation Patterns (Trend Resumption)**

1️⃣ **Doji**

- **Tiny body with long wicks** (market indecision).

- Needs **confirmation** to determine next move.

2️⃣ **Falling/ Rising Three Methods**

- Brief pause in trend before continuation.

**💡 Pro Tip:** Always **confirm patterns** with volume, support/resistance, and other indicators!

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