To trade well in the cryptocurrency market, first learn how to read candlestick charts

1. Bullish Candlestick Patterns

1. Hammer

The hammer appears at the bottom of a downtrend, with a long lower shadow that is at least twice the body of the candle. It indicates that despite significant selling pressure, buyers have pushed the price up to near the opening level. A green hammer is more bullish than a red one.

2. Inverted Hammer

The inverted hammer is similar to the hammer, but the long shadow is above the body of the candle. It usually appears at the bottom of a downtrend and indicates potential upward movement. Even if sellers push it down to the opening level, the price does not continue to fall, suggesting the market may turn bullish.

3. Three White Soldiers

The three white soldiers pattern consists of three consecutive green candles, with the opening price within the range of the previous candle and the closing price exceeding the high of the previous candle. A short lower shadow indicates sustained buying pressure.

4. Bullish Engulfing

The bullish engulfing pattern consists of a long red candle followed by a shorter green candle, where the green candle is completely within the body range of the red candle, indicating a slowdown or potential end of the bearish trend.

2. Bearish Candlestick Patterns

1. Hanging Man

The hanging man is similar to the hammer, but appears at the end of an uptrend, indicating that despite buyers pushing the price up, large-scale selling suggests the market may soon turn bearish.

2. Shooting Star

The shooting star is a candle with a long upper shadow, a short body close to the bottom, and typically appears at the end of an uptrend, indicating that after reaching a high, sellers dominate and push the price down.

3. Three Black Crows

The three black crows pattern consists of three consecutive red candles, with the opening price within the range of the previous candle and the closing price below the low of the previous candle, indicating ongoing selling pressure driving the price down.

4. Bearish Engulfing

The bearish engulfing pattern consists of a long green candle followed by a shorter red candle, where the red candle is completely within the body range of the green candle, indicating that buying pressure is weakening.

5. Dark Cloud Cover

The dark cloud cover consists of a green candle followed by a red candle, where the opening price of the red candle is higher than the closing price of the previous green candle, but the closing price is below the midpoint of the green candle, usually accompanied by high trading volume, indicating a shift from bullish to bearish.