CryptoYash

Candlestick Patterns
🔸The Japanese have used candlesticks as a charting and analysis technique for centuries. Candlestick Patterns Candlesticks mostly help pick tops and bottoms and are most powerful when they confirm a western indicator. Candlestick patterns are psychological imprints of what traders are thinking at any given time. There are approximately 40 reversal candle patterns that vary from single candlesticks to groupings of up to five candlesticks.

Understanding Candlesticks

🔸"A" – wide range body with no tails or shadows – very bullish or bearish for a trend move "B" - opening and closing prices are practically identical – no real control – a pause "C" shows a very small trading range with a narrowrange body – a pause with no major follow-thru "D" shows the opening and closing near the high with a long bottoming tail or shadow "E" shows the opening and closing near the low with a long topping tail or shadow.
🔸You might say that “A” is the most bullish or bearish candle. And it is very bullish or bearish in a strong up- or down-trend. But in some cases, “D” on the left can be more bullish and “E” on the right can be more bearish.
In the case of “D”, a battle was fought, and at one point, the shorts were in control. By the end of the bar, the longs fought all the way back and actually brought the currency pair above the opening price. This candle, if located at the bottom of a down-trend, can potentially signal a reversal in the trend. The same is true for the sellers in “E” on the right.
Bullish and Bearish Patterns
1.Bullish Patterns
Hammer Inverted Hammer Piercing Pattern Tweezer BottomBullish EngulfingMorning Star
2.Bearish Patterns
Bearish Engulfing Evening Star Hanging Man Shooting Star Dark Cloud Cover Tweezer Top

1.Bullish Engulfing Pattern
🔸Market is in a definable downtrend.
🔸Candle 1 has a small red real body.
🔸Candle 2 reverses where the green body completely engulfs the previous day’s red body.
🔸A stronger signal occurs when the green reversal candle body engulfs two or more bodies.
2.Bearish Engulfing Pattern
🔸Market is in a definable uptrend.
🔸Candle 1 has a small green body in an uptrend.
🔸Candle 2 reverses where the red body completely engulfs the previous day’s green body.
🔸A stronger signal occurs when the red reversal candle body engulfs two or more bodies.
3.Bullish Morning Star Pattern
🔸Bullish three-candle pattern at swing lows.
🔸Candle 1 has a tall red real body.
🔸Candle 2 has a small red or green body.
🔸Candle 3 closes at least 50% into the first real body and is a tall green candle.
4.Bearish Evening Star Pattern
🔸Bearish three-candle pattern at swing highs.
🔸Candle 1 has a tall green real body.
🔸Candle 2 has a small green or red real body.
🔸Candle 3 closes at least 50% into the first real body and is a tall red candle.

5.Bullish Inverted Hammer
🔸The Inverted Hammer is a bottom reversal candle, and the following day is a strong bullish day, that confirms the reversal signal.
6.Bearish Shooting Star
🔸The Shooting Star is a top reversal candle, just like the hanging man. However, it displays a long upper shadow, and its small real body is at or near the lows of the session. The Japanese say that the shooting star shows “troubleoverhead”. Because of the bearish long upper shadow, we don’t need as much bearish confirmation as we do with a hanging man.

Candlestick Patterns: Bullish and Bearish Patterns Dojis....
🔸Characterized by equal open and close prices. When the Doji appears at a major trend line, channel line, key support and resistance, it is an indication of a potential reversal.