📈 Master These Candlestick Patterns to Minimize Losses
Understanding candlestick patterns is essential for identifying potential price reversals and continuations.
🕯 Single-Candle Reversal Patterns
These patterns consist of a single candlestick and often appear at market turning points:
Hammer (🔨)
A small body with a long lower wick, typically after a downtrend. Indicates potential bullish reversal.
Inverted Hammer (⏫)
A small body with a long upper wick. Found at the bottom of a downtrend and may signal a reversal.
Marubozu (🟢)
A strong bullish candle with no wicks. Demonstrates intense buying pressure and confidence.
Dragonfly Doji (🐉)
A doji with a long lower shadow and little to no upper wick.
Spinning Top (🌀)
A candle with a small real body and long upper and lower wicks, indicating indecision in the market.
🕯🕯 Two-Candle Reversal Patterns
These two-candle patterns often indicate shifts in market sentiment:
Bullish Engulfing (🟢🔴)
A small red candle followed by a larger green candle that completely engulfs it.
Piercing Line (↗️)
A red candle followed by a green candle that closes above the midpoint of the previous candle. Indicates potential reversal.
Tweezer Bottom (✂️)
Two consecutive candles with nearly identical lows.
Bullish Harami (🤰)
A large red candle followed by a small green candle contained within its body.
Bullish Kicker (🚀)
A sharp transition from a red to a green candle with a noticeable price gap.
🕯🕯🕯 Three-Candle Continuation & Reversal Patterns
These three-candle formations typically confirm stronger market moves:
Three White Soldiers (💂💂💂)
Three consecutive green candles with higher closes.
Morning Star (🌟)
A red candle, followed by a small-bodied candle (indecision)
Morning Doji Star (🌠)
Similar to the Morning Star, but the second candle is a doji. Suggests a powerful reversal setup.
Three Inside Up (📈)
Begins with a Bullish Harami, followed by a confirming green candle. A strong sign of trend reversal.
