Earn $50 Daily Using Simple Candlestick Patterns
For beginners, trading can feel overwhelming, but understanding basic candlestick patterns can simplify market analysis. These patterns help identify potential reversals or continuations, allowing traders to make confident entry and exit decisions. By applying these strategies consistently, you could target daily profits of $50 or more on platforms like Binance. Here's a guide to using these patterns effectively:
1. Hammer (Bullish Reversal): This pattern suggests a bullish reversal after a downtrend. It appears as a candle with a small body and a long lower wick, showing that buyers are stepping in. A trade can be entered when the price moves above the high of the hammer, with a stop loss set below the wick.
2. Inverted Hammer (Bullish Reversal): The inverted hammer is similar to the hammer but has a long upper wick. This pattern signals a potential bullish reversal after a decline. Enter a trade above the candleâs high, placing your stop loss below the candle's low.
3. Dragonfly Doji (Bullish Reversal): This pattern forms when there is no upper shadow, and the lower wick is long. It suggests buyer strength, typically appearing at the end of a downtrend. Entry is above the high, with a stop loss set below the low.
4. Bullish Engulfing (Bullish Reversal): A two-candle pattern, where a smaller bearish candle is followed by a larger bullish one, engulfing the previous candle. This indicates the beginning of an upward movement. Enter after the bullish candle closes, with a stop loss below the low of the bearish candle.
5. Shooting Star (Bearish Reversal): This pattern indicates a potential bearish reversal after an uptrend. The small body with a long upper wick reflects rejection of higher prices. Enter a trade below the low of the shooting star, with a stop loss above its high.
6. Bearish Engulfing (Bearish Reversal): A larger bearish candle engulfs a smaller bullish candle, signaling a potential downward reversal. Enter below the low of the bearish candle, and place your stop loss above the high of the bullish candle.
7. Three White Soldiers (Bullish Continuation): This pattern occurs after a downtrend, showing three consecutive bullish candles, each closing higher than the last. Enter after the third candle closes, setting a stop loss below the low of the first candle.
8. Morning Star (Bullish Reversal): A three-candle pattern signaling the end of a downtrend. It starts with a bearish candle, followed by a small candle (indicating indecision), and ends with a large bullish candle. Enter above the high of the bullish candle, with a stop loss below the low of the small candle.
9. Evening Star (Bearish Reversal): The opposite of the Morning Star, this pattern signals the end of an uptrend. It starts with a bullish candle, followed by indecision, and concludes with a large bearish candle. Enter below the low of the bearish candle, with a stop loss above the high of the small candle.
10. Bearish Harami (Bearish Reversal): A small bearish candle forms within the body of a larger bullish one, indicating a potential reversal. Enter a trade below the low of the bearish candle, with your stop loss above the high of the bullish candle.
By consistently identifying and applying these candlestick patterns on Binance, traders can develop a deeper understanding of market behavior. With discipline and adherence to these patterns, itâs possible to steadily improve your profits, with the goal of earning $50 daily.#BTCâ $BTC
