This image is a candlestick pattern guide, explaining various bullish (market upward), bearish (market downward), and neutral candlestick patterns used in trading.
Now based on this photo, I am providing a step-by-step analysis:
๐ข Bullish Patterns (Signals that the market will go up)
โ 1. Single Candle Patterns
Hammer: Long wick down, small body; indicates trend reversal.
Inverted Hammer: Wick up, small body; bullish reversal at the end of a bearish trend.
Dragonfly Doji: Long lower wick, open-low-high at the same point, strong reversal signal.
Bullish Spinning Top: Small body, wicks on both sides; bullish potential despite uncertainty.
โ 2. Double-Candle Patterns
Bullish Kicker: The first candle is bearish, the second starts with a gap up and is bullish.
Bullish Engulfing: The second candle completely engulfs the first one.
Piercing Line: The second bullish candle covers 50% or more of the first bearish candle.
Bullish Harami: Small-bodied bullish candle, contained within the previous large bearish candle.
Tweezer Bottom: Two candles' lows at the same point; reversal signal.
โ 3. Multi-Candle Patterns
Morning Doji Star: Bearish โ Doji โ Bullish; reversal signal.
Three White Soldiers: Three consecutive bullish candles, indicating a strong uptrend.
Bullish Engulfing Sandwich: Bearish candle in the middle, bullish on both sides.
Bullish Abandoned Baby: Gap down Doji โ Gap up bullish candle.
Morning Star: Bearish โ Small body candle โ Bullish.
Rising Three: One large bullish candle โ several small bearish โ then a large bullish again.
โซ Neutral Patterns (Neutral signals)
โ๏ธ 1. Single/Double Candle
Spinning Top: Small body, wicks on both sides; uncertainty.
Doji: Open and close are the same; high reversal potential.
Harami: Small candle, contained within a larger candle.
Marubozu: No wick, full body; strong trend.
๐ด Bearish Patterns (Signals that the market will go down)
โ 1. Single Candle Patterns
Hanging Man: Long wick down after an upward trend; reversal signal.
Shooting Star: Long wick up, body down; bearish reversal.
Gravestone Doji: Wick on top, open-low-close are the same; bearish.
Bearish Spinning Top: Small body, uncertainty but bearish potential.
โ 2. Double-Candle Patterns
Bearish Engulfing: The second candle engulfs the first one and is bearish.
Bearish Kicker: The first candle is bullish, the next one starts with a gap down and is bearish.
Dark Cloud Cover: A bearish candle covers 50% or more of the first bullish candle.
Bearish Harami: Small-bodied bearish candle, contained within the previous large bullish candle.
Tweezer Top: Two candles' highs at the same point.
โ 3. Multi-Candle Patterns
Falling Three: One large bearish โ several small bullish โ then a large bearish again.
Bearish Engulfing Sandwich: Bullish in the middle, bearish on both sides.
Three Black Crows: Three consecutive bearish candles.
Evening Doji Star: Bullish โ Doji โ Bearish.
Bearish Abandoned Baby: Gap up Doji โ Gap down bearish.
๐ Understanding Candles (Understand the structure of candles)
Wick: High and low.
Body: The part between open and close.
Green Candle: Close > Open (Bullish).
Red Candle: Close < Open (Bearish).
๐ Final words:
If you regularly observe these candlestick patterns in trading, you can easily understand market trends and make entry and exit decisions.
๐ If you want, I can teach you with real examples of each pattern (with charts). Let me know which pattern to start with?
