HOW TO READ CANDLESTICK PATTERNS — A SIMPLE GUIDE! ✅
One of the first steps to improve your trading skills? Learn how to read candlesticks.
If you've ever looked at a chart and felt confused by all the red and green bars, you're not alone. But once you understand candlestick patterns, you'll start to see the story behind price action.
I just found this extremely useful cheat sheet that classifies the most important candlestick patterns into two main types:
🔹 Bullish Patterns (price likely to rise)
🔹 Bearish Patterns (price likely to fall)
And they are divided into:
• Reversal: Signals a potential trend change
• Continuation: Confirms that the trend may continue
Some key patterns to pay attention to:
• Hammer & Inverted Hammer (bullish reversal)
• Bullish/Bearish Engulfing
• Morning Star & Evening Star
• Three Candle Pattern
• Three Methods Bullish/Bearish
This cheat sheet makes it really easy to remember the patterns and spot them in actual charts.