Learn these candles and say good bye to losses
📈 Bullish Reversal Patterns (Signaling Price Rises)
Hammer, Bullish Engulfing, Inverted Hammer, Morning Star, Three White Soldiers, and Bullish Tweezers all signal potential upward reversals after downtrends. These patterns share a common story: buyers overpowering sellers. For example:
- The Hammer shows sellers failing to keep prices low (long lower wick).
- Bullish Engulfing reveals bulls violently seizing control (green candle swallowing red).
- Three White Soldiers marks relentless buying momentum (3+ strong green candles).
Note: "Three in the QD" likely means "Three Inside Up" (bullish).
📉 Bearish Reversal Patterns (Signaling Price Drops)
Bearish Engulfing Evening Star، Shooting Star, Three Black Crows، Three Inside Down, and Bearish Tweezers warn of downtrends after uptrends. These reflect sellers crushing buyer optimism:
- Shooting Star shows buyers rejected at highs (long upper wick).
- Three Black Crows indicates panic selling (3+ plunging red candles).
- Bearish Engulfing signals bulls being overwhelmed (red candle swallowing green).
⚖️ Key Differences
- Trigger: Bullish patterns emerge in downtrend bearish patterns in uptrends۔
- Psychology: Bullish = buyers gaining courage; Bearish = sellers exploiting exhaustion.
- Confirmation: Both require validation (e.g., the next candle’s close or volume).
- Neutral Patterns (like Spinning Tops) suggest indecision and need context.
> 💡 Remember: Candlesticks tell market emotion stories.
> Bullish patterns scream: "Bears are tired – bulls are charging!"
> Bearish patterns whisper: "This rally is over – take profits now."