Candle Patterns Explained

Doji Candle – Indicates market indecision where opening and closing prices are almost equal.

Hammer Candle – A bullish reversal signal appearing after a downtrend with a long lower wick.

Shooting Star – A bearish reversal pattern with a small body and a long upper shadow at the top of an uptrend.

Bullish Engulfing – A large bullish candle fully engulfs the previous bearish candle, signaling potential trend reversal upward.

Bearish Engulfing – A large bearish candle fully engulfs the previous bullish candle, hinting at a possible downward reversal.