1. Doji – Indecision Signal
A small candle with long wicks that shows a market balance. If it appears after a trend, it might signal a reversal.
Tip: Look for a bearish candle after an uptrend or a bullish candle after a downtrend.
2. Engulfing – Reversal Signal
Two candles where the second “engulfs” the first. Bullish engulfing signals a possible uptrend, bearish an upcoming downtrend.
Tip: Confirm with the next candle before trading in the engulfing direction.
3. Hammer & Inverted Hammer – Bottom Reversal Signals
Hammer has a small top body with a long lower wick; inverted has a small bottom body with a long upper wick.
Tip: Wait for a bullish confirmation candle before entering.
Master these simple patterns to spot trends and make smarter trading decisions!