Great question! Here's a clear and practical guide to #Candlestick_Patterns โ including how they work, where to use them, which patterns to follow, how to trade them step-by-step, and how to profit using them in crypto, forex, or stocks.
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๐ฏ๏ธ #Candlestick_Patterns โ Master Guide
๐ What Are Candlestick Patterns?
Candlestick patterns are visual price signals on a chart that reflect market psychology. They help predict reversals, continuations, or indecision in price action.
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๐งญ Where to Use Candlestick Patterns:
Crypto (BTC, ETH, altcoins)
Forex (currency pairs like EUR/USD)
Stocks/Indices
Platforms: TradingView, Binance, MetaTrader, KuCoin
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โ Most Useful Candlestick Patterns (Simplified)
๐ Reversal Patterns
(Help you catch trend changes = buy low, sell high)
Pattern Meaning Use When...
Hammer Bullish reversal (buy) After downtrend
Inverted Hammer Bullish reversal After downtrend
Shooting Star Bearish reversal (sell) After uptrend
Engulfing (Bull/Bear) Strong reversal At support/resistance zones
Morning Star Bullish reversal (3 candles) End of bearish trend
Evening Star Bearish reversal (3 candles) End of bullish trend
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โ Continuation Patterns
(Show the trend will likely continue)
Pattern Meaning Use When...
Doji Indecision, possible reversal Wait for confirmation
Rising Three Bullish continuation Uptrend
Falling Three Bearish continuation Downtrend
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๐ ๏ธ How to Use โ Step-by-Step
๐ฏ Example: Trade With a Bullish Hammer
โ Step-by-Step:
1. Identify a Downtrend
Look for falling candles with lower lows.
2. Find a Hammer Candle
Small body, long lower wick, little/no upper wick.
3. Confirm With Volume or RSI
Check for increased volume or RSI < 30 (oversold).
4. Enter Trade
Buy after the next candle closes green.
5. Set Stop-Loss
Just below the hammerโs wick.
6. Set Target
1.5x to 2x risk, or next resistance level.
7. Trail or Exit
Use trailing stop-loss or exit at signal of reversal.
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๐ฐ How to Profit with Patterns
๐ก Pro Tips:
Always combine patterns with indicators: RSI, Moving Averages, MACD.
Donโt trade patterns alone โ confirm with support/resistance zones or volume.
Use backtesting on TradingView to learn each pattern's reliability.
๐ง Risk Management:
Use 2% rule: donโt risk more than 2% of your account on one trade.
Always use stop-loss and take-profit plans.
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๐ Chart Example (Summary):
Pattern Action Trend Success Rate
Hammer Buy Downtrend High w/ volume
Engulfing Buy/Sell At reversal High
Doji Wait/Watch Any Low alone
Shooting Star Sell Uptrend Medium-High
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๐ Final Tip:
> โThe pattern is the signal. The profit is in the confirmation and discipline.โ
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Would you like a PDF cheat sheet or TradingView template for these patterns?
