Candlestick patterns are crucial tools for traders to analyze price movements and predict future market behavior. Below are the top 5 candlestick patterns with full details:

💥 1. Doji

The Doji represents indecision in the market, as the open and close prices are almost the same. It’s a neutral pattern but can signal a reversal when it appears in a trend.

📌 Key Features:

- Shape: The body is very small (open and close prices are nearly identical), and it may have long wicks or shadows.

- Interpretation:

- In an uptrend, a Doji suggests that buying momentum is weakening, and a potential reversal to the downside may occur.

- In a downtrend, it signals that selling momentum is weakening, which may lead to an upward reversal.

💥 Variants:

- Long-legged Doji: Both upper and lower shadows are long, showing significant indecision.

- Dragonfly Doji: Has no upper shadow and a long lower shadow, signaling potential bullish reversal.

- Gravestone Doji: Has no lower shadow and a long upper shadow, signaling potential bearish reversal.

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🔷 2. Hammer

A bullish reversal pattern that forms at the bottom of a downtrend, the Hammer signals that the market may soon reverse to the upside.

💥 Key Features:

- Shape: A small body at the top with a long lower wick (at least twice the size of the body).

- Interpretation: It shows that although sellers pushed the price lower during the session, buyers stepped in strongly and drove prices back up, indicating buying pressure.

🔶 Variants:

- Inverted Hammer: Similar but with the long wick above the body. It signals a possible reversal after a downtrend but needs confirmation with the next candle.

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🔶 3. Engulfing Pattern

An Engulfing pattern involves two candles, where the second one completely engulfs the body of the first. It is a strong signal of reversal.

🔷 Key Features:

- Bullish Engulfing: Appears at the bottom of a downtrend. A small bearish candle is followed by a large bullish candle that fully engulfs the previous one.

- Bearish Engulfing: Appears at the top of an uptrend. A small bullish candle is followed by a larger bearish candle that fully engulfs the previous one.

💥 Interpretation:

- Bullish Engulfing: Indicates a reversal to the upside as buyers take control.

- Bearish Engulfing: Signals a potential reversal to the downside as sellers overpower buyers.

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💥 4. Morning Star / Evening Star

Both of these are three-candle reversal patterns that signal a major change in direction.

💥 Morning Star (Bullish Reversal):

- Structure:

1. Large bearish candle.

2. Small-bodied candle (can be bullish or bearish), showing indecision.

3. Large bullish candle that closes well into the body of the first bearish candle.

- Interpretation: Signals the end of a downtrend and the beginning of an upward reversal.

🎴Evening Star (Bearish Reversal):

- Structure:

1. Large bullish candle.

2. Small-bodied candle, showing indecision.

3. Large bearish candle that closes well into the body of the first bullish candle.

- Interpretation: Signals the end of an uptrend and the beginning of a downward reversal.

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💥5. Shooting Star

The Shooting Star is a bearish reversal pattern that appears at the top of an uptrend.

Key Features:

- Shape: A small body at the bottom with a long upper wick (at least twice the size of the body), resembling an inverted hammer.

- Interpretation: It shows that although buyers pushed the price up during the session, sellers stepped in strongly, driving prices back down. This indicates potential exhaustion of the uptrend and a shift towards a downward movement.

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Summary:

These patterns help traders gauge market sentiment and the potential direction of price movements. Here's a quick overview of when these patterns are most useful:

- Doji: Signals indecision or potential reversal.

- Hammer: Indicates a bullish reversal.

- Engulfing Pattern: Confirms strong reversals (bullish or bearish).

- Morning/Evening Star: Strong indicators of trend reversals.

- Shooting Star: Signals bearish reversal.

Each of these patterns must be used in conjunction with other indicators or $ETH

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