Candlestick Patterns Guide
1. Basic Candlestick Patterns
Doji: A candle with a very small body and long wicks. It indicates indecision in the market.
Hammer: A candle with a small body and long lower wick. It often signals a bullish reversal.
Inverted Hammer: Similar to the hammer but with a long upper wick. It suggests a potential bullish reversal after a downtrend.
Bullish Engulfing: A larger bullish candle fully engulfs a smaller bearish candle, indicating a potential reversal to the upside.
Bearish Engulfing: A larger bearish candle fully engulfs a smaller bullish candle, indicating a potential reversal to the downside.
2. Advanced Candlestick Patterns
Morning Star: A three-candle pattern that signals a bullish reversal. It consists of a long bearish candle, a small indecision candle
Evening Star: The opposite of a morning star. It signals a bearish reversal and consists of a long bullish candle, a small indecisio
Three White Soldiers: Three consecutive long bullish candles. It is a strong bullish reversal pattern.
Three Black Crows: Three consecutive long bearish candles. It signals a strong bearish reversal.
Shooting Star: A bearish reversal pattern with a small body and long upper wick. It shows rejection of higher prices.
