candle#đš Master These Candlestick Patterns to Minimize Losses! â đ
Understanding these key candlestick patterns can significantly improve your trading decisions. Learn to spot them and gain an edge in the markets!
1. Bullish Engulfing
âą A small red candle followed by a large green candle that completely engulfs the red one.
âą Signals a possible reversal to an uptrend.
âą Stronger confirmation with high trading volume.
2. Bearish Engulfing
âą A small green candle followed by a large red candle engulfing the green one.
âą Indicates a potential bearish reversal.
âą More reliable when seen at the peak of an uptrend.
3. Dark Cloud Cover
âą A green candle followed by a red candle opening above the previous close.
âą The red candle closes below the midpoint of the green one.
âą Suggests a bearish reversal, especially in an uptrend with high volume.
4. Cloud Break
âą Occurs when the price breaks through a resistance level.
âą A strong green candle confirms the continuation of an uptrend.
âą Most effective with increasing volume.
5. Tweezers (Top & Bottom)
âą Tweezer Top: Two nearly identical highs with small candle bodies, signaling resistance.
âą Tweezer Bottom: Two nearly identical lows, indicating support.
âą Both patterns suggest a possible reversal.
6. Bullish Harami
âą A large red candle followed by a small green candle within its body.
âą Hints at a reversal from bearish to bullish.
âą Stronger when it appears at a support level.
7. Bearish Harami
âą A large green candle followed by a small red candle inside its body.
âą Suggests a bearish reversal, especially near# resistance.
âą Confirmation with a third bearish candle strengthens the signal.
8. Division Pattern
âą Alternating green and red candles showing market indecision.
âą May indicate a breakout in either direction.
âą Confirm with volume or trend analysis.
9. Bullish Counter-Attack
âą A red candle followed by a green one opening at the same price.
âą The green candle closes near or at the previous open.