Candlestick patterns are a type of chart pattern that can be used to predict the direction of price movements.
The reliability of a candlestick pattern can depend on various factors, such as the time frame it is used on and the context in which it occurs.
That being said, here are most commonly used and reliable candlestick patterns:
Bullish Engulfing:
This pattern consists of a small bearish candlestick followed by a large bullish candlestick that completely “engulfs” the previous candlestick.
It is often seen as a strong bullish reversal pattern.
Bearish Engulfing:
This pattern is the opposite of the Bullish Engulfing pattern, and consists of a small bullish candlestick followed by a large bearish candlestick that engulfs the previous candlestick.
It is often seen as a strong bearish reversal pattern.
Doji:
A Doji candlestick is formed when the open and close prices are almost equal.
It suggests indecision in the market and can be a sign of a potential trend reversal.
Hammer:
A Hammer candlestick is formed when the open, high, and close prices are all close together, with a long lower wick.
Hanging Man:
A Hanging Man candlestick is similar to a Hammer, but it occurs at the top of an uptrend and is often seen as a bearish reversal pattern.
Bullish Harami:
This pattern consists of a large bearish candlestick followed by a small bullish candlestick,
with the small candlestick’s body contained within the large candlestick’s body.
It is often seen as a bullish reversal pattern.
Bearish Harami:
This pattern is the opposite of the Bullish Harami, and consists of a large bullish candlestick followed by a small bearish candlestick,
with the small candlestick’s body contained within the large candlestick’s body.
It is often seen as a bearish reversal pattern.
Shooting Star:
This is a bearish candlestick pattern having a long upper shadow and no lower shadow at all.
It occurs at the end of uptrend and signals bearish reversal.
Morning Star:
This pattern consists of a large bearish candlestick, a small bullish or bearish candlestick, and a large bullish candlestick.
It is often seen as a bullish reversal pattern.
Evening Star:
This pattern is the opposite of the Morning Star, and consists of a large bullish candlestick, a small bullish or bearish candlestick,
and a large bearish candlestick.
It is often seen as a bearish reversal pattern.
YouTube: https://www.youtube.com/daytradeideas
Join Telegram
https://t.me/daytradeideas
Get 5 free eBooks & a free mentor session with Jason Sen now:
https://members.daytradeideas.co.uk/5questions
https://members.daytradeideas.co.uk/free-mentor-session
Read our reviews:
https://www.sitejabber.com/reviews/daytradeideas.co.uk
Pass the Funded Trader challenges:
https://daytradeideas.kartra.com/page/FXsignals
