candlestickguide

Here’s a quick guide to understanding market psychology using candlestick formations. Candlestick patterns help traders anticipate price direction by reflecting past price behavior and crowd sentiment. They are grouped into single, double, or multi-candle formations each offering clues for bullish, bearish, or neutral outcome
𝑆𝑖𝑛𝑔𝑙𝑒-𝐶𝑎𝑛𝑑𝑙𝑒 𝑃𝑎𝑡𝑡𝑒𝑟𝑛𝑠:
• Bullish: Hammer, Inverted Hammer, Dragonfly Doji
• Bearish: Shooting Star, Hanging Man, Gravestone Doji
𝑫𝒐𝒖𝒃𝒍𝒆-𝑪𝒂𝒏𝒅𝒍𝒆 𝑷𝒂𝒕𝒕𝒆𝒓𝒏𝒔:
• Bullish Reversals: Bullish Engulfing, Piercing Line, Tweezer Bottom
• Bearish Reversals: Bearish Engulfing, Dark Cloud Cover, Tweezer Top
𝑻𝒓𝒊𝒑𝒍𝒆 𝒐𝒓 𝑴𝒖𝒍𝒕𝒊-𝑪𝒂𝒏𝒅𝒍𝒆 𝑷𝒂𝒕𝒕𝒆𝒓𝒏𝒔:
• Bullish: Morning Star, Three White Soldiers, Three Inside Up
• Bearish: Evening Star, Three Black Crows, Three Inside Down
𝑵𝒆𝒖𝒕𝒓𝒂𝒍 𝑷𝒂𝒕𝒕𝒆𝒓𝒏𝒔:
Doji, Spinning Top, Marubozu these often signal market indecision or a potential reversal depending on the context.
𝑺𝒕𝒓𝒖𝒄𝒕𝒖𝒓𝒆 𝑹𝒆𝒎𝒊𝒏𝒅𝒆𝒓:
The candle body reveals open/close prices, wicks show highs/lows. Green candles signal bullishness, red indicates bearishness.
𝑷𝒓𝒐 𝑻𝒊𝒑:
Always pair candlestick patterns with volume analysis and trend direction for higher trade accuracy.

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