Master These Candlestick Patterns โ And Never Trade Blind Again! โ ๐
Understanding candlesticks can help you spot reversals before they happen. Here are the key patterns every trader must know:
๐ Bullish Patterns (Hint: Possible Uptrend Ahead)
1๏ธโฃ Bullish Engulfing
๐น Small red candle โ followed by a larger green one that completely engulfs it.
๐น Strong signal of buyer momentum.
2๏ธโฃ Morning Star
๐น 3-part reversal:
โ1. Long red candle
โ2. Small indecisive candle
โ3. Strong green candle
๐น Signals a potential trend reversal from bearish to bullish.
3๏ธโฃ Bullish Pin Bar
๐น Small body + long lower wick.
๐น Rejection of lower prices = buyers stepping in.
4๏ธโฃ Bullish Harami
๐น Big red candle โ followed by a small green one inside it.
๐น Shows bearish momentum is weakening.
๐ Bearish Patterns (Watch for Downside Risk)
1๏ธโฃ Bearish Engulfing
๐น Small green candle โ followed by a large red one that fully engulfs it.
๐น Indicates sellers are taking control.
2๏ธโฃ Evening Star
๐น 3-part reversal:
โ1. Strong green candle
โ2. Small indecisive candle
โ3. Big red candle
๐น Suggests a shift from bullish to bearish.
3๏ธโฃ Bearish Pin Bar
๐น Small body + long upper wick.
๐น Rejection of higher prices = bearish pressure.
4๏ธโฃ Bearish Harami
๐น Big green candle โ followed by a small red one within its body.
๐น Signals buyers are losing strength.
โจ Pro Tip: Candlestick patterns are more powerful when used alongside volume, RSI, and moving averages. Donโt trade off patterns alone โ confirm with confluence!
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