If you want to dominate the trading game, understanding candlestick patterns is a must! These patterns help identify trend reversals and market momentum shifts before they even happen. Letâs dive into the must-know bullish and bearish candlestick patterns that can level up your trading strategy.
đ„ BULLISH CANDLESTICK PATTERNS (BUY SIGNALS) These patterns indicate potential upward movement and can be great entry points for buyers.
1ïžâŁ Bullish Engulfing đ
A small red candle is followed by a large green candle, fully engulfing the previous one. đ Signals a bullish reversal after a downtrend.
2ïžâŁ Piercing Pattern đ
A red candle followed by a green candle that opens lower but closes above 50% of the previous red candle. đ Indicates that bears are losing strength, and bulls are taking control.
3ïžâŁ Bullish Harami đ
A small green candle forms inside the previous large red candle. đ Suggests a potential shift from bearish to bullish momentum.
4ïžâŁ Morning Star đ
Three-candle pattern: large red candle â small-bodied candle â large green candle closing above the first candleâs midpoint. đ Strong bullish reversal signal.
5ïžâŁ Bullish Abandoned Baby đ
A red candle, followed by a gap down and then a big green candle opening above the previous one, forming gaps on both sides. đ Powerful reversal pattern signaling a strong uptrend.
6ïžâŁ Rising Three Methods đ
A long green candle â three small red candles within the first candleâs body â another strong green candle. đ Confirms an ongoing uptrend.
đ„ BEARISH CANDLESTICK PATTERNS (SELL SIGNALS) These patterns indicate a potential downward movement and serve as warning signs for traders.
1ïžâŁ Bearish Engulfing đ
A small green candle followed by a big red candle that engulfs the previous one. đ Signals a bearish reversal after an uptrend.
2ïžâŁ Dark Cloud Cover đ
A green candle followed by a red candle that opens above the previous high but closes below 50% of the first candle. đ Indicates bears are taking control.
3ïžâŁ Bearish Harami đ
A small red candle within the previous large green candle. đ Potential reversal from an uptrend to a downtrend.
4ïžâŁ Evening Star đ
A three-candle pattern: large green candle â small-bodied candle â large red candle closing below the midpoint of the first candle. đ Strong bearish reversal pattern.
5ïžâŁ Bearish Abandoned Baby đ
A green candle, followed by a gap up, then a strong red candle forming gaps on both sides. đ Strong indication of an upcoming downtrend.
đ HOW TO USE THESE PATTERNS IN TRADING
â Bullish Patterns â Look for buying opportunities at support levels and confirm trends with indicators like RSI & Moving Averages.
â Bearish Patterns â Consider selling or shorting when these appear near resistance levels with high volume.
â Always Use Risk Management â Set stop-losses and take-profit levels to minimize risk!
đź FINAL THOUGHTS Mastering candlestick patterns can seriously boost your trading game! But remember, donât rely on them aloneâalways combine with volume analysis, trend lines, and key support/resistance levels.
đ If you found this helpful, donât forget to LIKE, SHARE & COMMENT your favorite candlestick pattern below! Letâs make those profits together!
Here is the candle imageđ

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