10 Candle Patterns That Can Help You Avoid Losing Money
These 10 candle patterns can help you spot when the market might be about to go down, so you can make smart investment decisions and save your money:
1. Bearish Engulfing: A big bearish candle swallows up a smaller bullish candle, meaning sellers are taking control.
2. Evening Star: A big bullish candle, followed by a small candle, and then a bearish candle, signals a top reversal.
3. Three Black Crows: Three long bearish candles in a row, with small or no wicks, means strong bearish momentum.
4. Dark Cloud Cover: A bearish candle opens high but closes low, indicating strong selling pressure.
5. Shooting Star: A candle with a small body and long upper wick shows buyers are losing control.
6. Bearish Harami: A small bearish candle inside a larger bullish candle suggests indecision and potential reversal.
7. Hanging Man: A candle with a small body and long lower wick shows strong selling pressure.
8. Gravestone Doji: A candle with no body and long upper wick, closing at the low, signals a strong bearish reversal.
9. Falling Three Methods: A bearish candle followed by three small bullish candles and another strong bearish candle confirms a downtrend.
10. Bearish Abandoned Baby: A rare pattern with a doji after a gap up, followed by a bearish gap down, signals a strong bearish reversal.
By recognizing these patterns, you can make informed investment decisions and protect your money.
