Candlestick Trading patterns - Forex Crypo Stocks-Candlestick Trading Insights

Example

The 'Hammer' pattern, with a small body and long lower shadow, signals strong buying interest after a price decline, indicating potential upward reversal.

Scenario

In a downtrend in the Forex market, a trader spots a Hammer, interprets this as a buying signal, and decides to enter a long position.

Example

The 'Bearish Engulfing' pattern, where a small green candle is followed by a large red candle, suggests a shift from buying to selling pressure.

Scenario

A crypto trader sees a Bearish Engulfing pattern at the end of an uptrend in Bitcoin's price chart and decides to sell, anticipating a downward trend.

Example

The 'Falling Three Methods' pattern, consisting of a long red candle, small green candles, and another long red candle, indicates bearish trend continuation.

Scenario

A stock trader observes the Falling Three Methods pattern during a downtrend in a stock's price, confirming the continuation of the sell-off, and holds onto their short position.