Avoid Fakeouts, False Rallies, and Emotion-Driven Trades
If you’re seeking greater clarity in your trading decisions, mastering candlestick patterns can provide a significant edge. These nine key patterns offer reliable insights into market sentiment and help you anticipate movements with greater precision—whether you're a beginner or a seasoned trader.
Rising Three Method
Signal: BUY
An uptrend pauses briefly before continuing upward. Ideal for entering ahead of a confirmed breakout.
Gravestone Doji
Signal: SELL
Buyers push the price up, but sellers regain control. Appearing near resistance, it often signals a reversal.
Falling Three Method
Signal: SELL
A downtrend interrupted by a short-lived bounce. Signals continued bearish momentum.
Bullish Exhaustion & Impulsion
Signal: BUY
Sideways consolidation breaks upward with strength. Indicates bullish momentum gaining traction.
Bearish Fakeout
Signal: SELL
A deceptive upward move quickly reverses. Useful for identifying traps and shorting strategically.
Bearish Exhaustion & Impulsion
Signal: SELL
Bulls lose momentum; a sharp bearish move follows. Watch for small candles followed by a strong red candle.
Dragonfly Doji
Signal: BUY
Sellers dominate early, but buyers close the session strong. Often marks a key reversal at support.
Bullish Fakeout
Signal: BUY
A deceptive drop followed by a sharp upward move. Capitalize when market panic turns to opportunity.
Spinning Top
Signal: INDECISION
Indicates market uncertainty. Prepares traders for potential breakouts or breakdowns.
Why These Patterns Matter
By recognizing these signals, you can:
• Enter trades with greater conviction
• Avoid impulsive, emotionally-driven decisions
• Align with institutional moves rather than retail sentiment
Understanding these patterns may significantly enhance your strategy—and help protect your capital in volatile markets.