Master these candlestick patterns โ and never trade blind again! โ ๐
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Understanding candles can help you identify reversals before they happen. Here are the key patterns every trader should know:
๐ Bullish patterns (Tip: Possible growth ahead)
1๏ธโฃ Bullish Engulfing
๐น Small red candle โ followed by a large green one that fully engulfs it.
๐น Strong buy signal.
2๏ธโฃ Morning Star
๐น 3-part reversal:
โ1. Long red candle
โ2. Small indecisive candle
โ3. Strong green candle
๐น Signals a possible trend reversal from bearish to bullish.
3๏ธโฃ Bullish Pin Bar
๐น Small body + long lower wick.
๐น Rejection of lower prices = buyers start to enter the game.
4๏ธโฃ Bullish Harami
๐น Large red candle โ followed by a small green one inside it.
๐น Shows that bearish momentum is weakening.
๐ Bearish patterns (Watch out for the risk of decline)
1๏ธโฃ Bearish Engulfing
๐น Small green candle โ followed by a large red one that fully engulfs it.
๐น Indicates that sellers are taking control.
2๏ธโฃ Evening Star
๐น 3-part reversal:
โ1. Strong green candle
โ2. Small indecisive candle
โ3. Large red candle
๐น Indicates 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 Large green candle โ followed by a small red one inside its body.
๐น Signals that buyers are losing strength.
โจ Tips: Candlestick patterns are more effective when combined with volume, RSI, and moving averages. Donโt trade solely based on patterns โ confirm with convergence!
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