Mastering candlestick patterns can give you a major edge in the markets. Here are some of the most powerful patterns to spot trend reversals and continuations:
🔥 Reversal Patterns
1️⃣ Hammer 🛠️Signals a bullish reversal after a downtrend.Key Tip: Look for a small body and a long lower wick.
2️⃣ Shooting Star 🌠Indicates a bearish reversal after an uptrend.Key Tip: Small body at the top with a long upper wick.
3️⃣ Engulfing Pattern 📈📉Bullish Engulfing: A larger green candle fully "engulfs" the previous red one.Bearish Engulfing: A larger red candle engulfs the prior green candle.
4️⃣ Doji 🕯️Represents indecision in the market. Watch for confirmation of the next move.
🚀 Continuation Patterns
1️⃣ Bullish Marubozu 📈A strong, full-bodied green candle with little to no wicks.Key Tip: Signals strong buying momentum.
2️⃣ Bearish Marubozu 📉A strong red candle with minimal wicks, showing heavy selling pressure.
3️⃣ Morning Star 🌅A 3-candle bullish pattern signaling a reversal from a downtrend.
4️⃣ Evening Star 🌆A 3-candle bearish pattern indicating the end of an uptrend.
💡 Pro Tip:Combine candlestick patterns with other indicators (like volume, support, and resistance) for more accurate trade signals.
💬 Which candlestick pattern do you use the most? Share your thoughts below and let’s discuss strategies!
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