📊 How do the main candlestick patterns work on the chart?
Learn the signals that the market gives before rising or falling! Here are the most important candlestick patterns used in technical analysis:
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🔴 1. Bearish Engulfing
➡️ The red candle completely engulfs the previous one (green). 📉 Signal of a reversal to bearish, after a bullish trend.
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🟢 2. Bullish Engulfing
➡️ The green candle engulfs the previous red one. 📈 Signal of a reversal to bullish, after a bearish trend.
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🔨 3. Hammer
➡️ Small body with a long lower shadow. 📈 Indicates a possible reversal from bearish to bullish, after a decline.
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🕯️ 4. Doji
➡️ Opening and closing are practically equal. ⚠️ Signal of indecision. Can indicate reversal or continuation, depending on the context.
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⭐ 5. Morning Star
➡️ Three candles: decline, indecision, and a strong rise. 📈 Strong signal of a reversal from bearish to bullish.
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🌒 6. Evening Star
➡️ Three candles: rise, indecision, and strong decline. 📉 Strong signal of a reversal from bullish to bearish.
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💥 7. Shooting Star
➡️ Small body and long upper shadow. 📉 Indicates that the price tried to rise but was rejected — signal of a decline.
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🟢🟢🟢 8. Three White Soldiers
➡️ Three consecutive green candles, each opening within the body of the previous one. 📈 Strong continuation or reversal to bullish.
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🔴🔴🔴 9. Three Black Crows
➡️ Three consecutive red candles. 📉 Strong signal of a reversal to bearish after a rise.
🔄 10. Long Wick
➡️ Small body and long shadow (usually upper or lower). 📌 Shows strong price rejection — can indicate reversal.
💡 Final tip: No pattern works alone. Use it along with volume, trend, and support/resistance.