"Discover the 6 Most Powerful Candlestick Patterns Every Trader Must Master"
1. Hammer
Description: The Hammer is a bullish reversal pattern that forms after a decline. It has a small body near the top of the candlestick with a long lower wick.
Implication: It signals that sellers drove prices lower during the session, but strong buying pressure pushed the price back up, indicating a potential trend reversal.
2. Bullish Engulfing
Description: The Bullish Engulfing pattern occurs when a small bearish candle is followed by a larger bullish candle that completely engulfs the previous candle.
Implication: It suggests a shift from bearish to bullish sentiment, indicating potential upward momentum.
3. Bearish Engulfing
Description: The Bearish Engulfing pattern occurs when a small bullish candle is followed by a larger bearish candle that completely engulfs the previous candle.
Implication: It signals a shift from bullish to bearish sentiment, indicating potential downward momentum in the market.
4. Doji
Description: A Doji forms when the opening and closing prices are nearly equal, resulting in a small or nonexistent body with long upper and lower wicks.
Implication: It represents market indecision and can signal a potential reversal or continuation depending on the context.
5. Evening Star
Description: The Evening Star is a bearish reversal pattern that consists of three candles â an upward candle, a small body, and a downward candle.
Implication: It signals a potential trend reversal, as the upward movement loses momentum, and sellers may be gaining control
6. Morning Star
Description:The morning star is a three-candle bullish reversal pattern which are
A long bearish candle.
A small indecisive candle with a gap down.
A long bullish candle with a gap up
Implication:It signals potential upward price movement, as the downward movement loses momentum, and buyers may be gaining control.
