#TradingTypes101

📊 Key Candlestick Patterns Every Trader Should Know 🕯️

1. Hammer – A bullish reversal candle forming after a downtrend, signaling potential upside momentum.

2. Hanging Man – Bearish reversal candle seen at the top of an uptrend, warning of a possible decline.

3. Doji – Represents market indecision where the open and close are nearly identical, often preceding reversals or continuation.

4. Bullish Engulfing – A two-candle pattern where a strong bullish candle fully engulfs the previous bearish candle, suggesting upward price movement.

5. Bearish Engulfing – A bearish candle that engulfs a prior bullish one, often indicating downside pressure.

6. Morning Star – A three-candle bullish reversal pattern after a downtrend.

7. Evening Star – The bearish counterpart, signaling a potential top after an uptrend.