Candlestick patterns are known as financial language of crypto market .you must learn CANDLESTICK PATTERNSto survive in crypto . Here are some most powerful candlestick patterns.
1. Hammer
The hammer candlestick consists of a short body with a much longer lower shadow. It’s called a hammer pattern because the candlestick resembles the shape of an upright hammer. As a rule, you’ll find the hammer at the bottom of a downtrend. This pattern indicates that bulls have resisted the selling pressure during a given period, and have pushed the price back up. While there may be hammer patterns with either green or red candles, the former points to a stronger uptrend than red hammers.
2. Inverted Hammer
The inverted hammer is similar to the standard hammer pattern, but it has a much longer upper shadow, while the lower wick is very short. This pattern suggests buying pressure, followed by bears’ failed attempts to drag the price down. As a result, buyers come back with even stronger pression, pushing prices higher.
3. Bullish Engulfing
Unlike the previous two patterns, the bullish engulfing is made up of two candlesticks. The first candle should be a short red body, engulfed by a green candle, which has a larger body. While the second candle opens lower than the previous red one, the buying pressure increases, leading to a reversal of the downtrend.
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