The image illustrates four of the most important candlestick patterns:⬇
1. Hammer: A bullish candle with a small body and a long lower shadow, often appearing after a decline and indicating a potential upward movement.
2. Hanging Man: Similar to the hammer, but it appears after an upward movement and indicates a potential downward movement.
3. Bullish Engulfing: A large green candle that engulfs a previous red candle, indicating a reversal towards the upside.
4. Bearish Engulfing: A large red candle that engulfs a previous green candle, indicating a reversal towards the downside.
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