Sunday 8 August 2021

Best Candlestick Patterns

 



Long Wick (Shadow) Candle: Buyers or sellers tried to push the price further but failed




The inside bar: After a long wick could mean price change




Also engulfing is a reversal signal.

Momentum candle: 


Multiple rejections: Good resistance and sign of price rejection and reversal


Shrinking candles: Loss of momentum


3 consecutive candles in the same colour: indicate the start of a new trend.


Big red candle: bearish

Doji: Open and close are similar and we have shadows on both sides. Can be a signal for reversal if the next candle shapes in a different colour from the previous one.


Hammer: bullish 


Inverted hammer: bearish




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