In the world of cryptocurrency trading, candlestick patterns speak louder than words. They reveal the struggle between buyers and sellers, giving you a psychological edge over the market. Knowing when to buy or sell is not just a guess, but an understanding of patterns.
Here are some basic candlestick patterns every trader should know:
๐ต Buy Signals
These patterns often appear at the bottom of a downtrend - indicating a potential reversal or bounce:
Doji Dragonfly - A strong sign of rejection from lower prices.
Bullish Harami - Indicates slowing selling and potential upward movement.
Hammer - A classic bottom reversal candle.
Strong bullish reversal with volume support.
Three Inside Up - A three-candle pattern confirming a trend change.
The Three White Soldiers - Steady upward momentum over 3 candles.
Three Outside Up - A strong engulfing pattern confirming buying pressure.
The Piercing Line - Signals that bulls are regaining control.
Abandoned Baby Bullish - A rare but highly reliable bottom signal.
๐ด Sell Signals
These patterns appear near the top and often warn of a bearish trend or correction:
Doji Gravestone - Indicates strong rejection from higher levels.
Hanging Man - Beware! Appears at market tops.
Bearish Harami - A reversal signal in an uptrend.
Three Inside Down - A reversal from bullish to bearish.
Sharp Decline - A sudden change in sentiment with heavy selling.
Three Black Crows - Strong and sustained bearish momentum.
Three Outside Down - Confirmation of bearish breakdown.
Morning Star - Contrary to its name, there is a selling pattern here (misnamed image).
Dark Cloud Cover - A sudden selling pressure following a bullish candle.
Professional Tip: Don't rely on candlestick patterns alone. Always combine them with trading volume, trend lines, and support/resistance levels for stronger confirmation.
๐ฅSmart traders donโt predict - they prepare.
Save this. Study it. Trade with confidence.
