How to interpret the most common Japanese candlestick patterns? 📊
(Bullish, bearish, continuation)

1. Bullish Reversal Patterns (Indicate Possible Rise)

✅ Hammer
Small body, long lower wick, and little or no upper wick.
Appears after a downtrend.

✅ Hanging Man
Similar to the hammer, but appears after an uptrend.

✅ Bullish Engulfing
A large green candle completely engulfs the previous red candle.

✅ Morning Star
A bearish red candle.
A small indecisive candle (can be a Doji).
A strong green candle.

✅ Double Bottom
Two lows at a similar support level, with a bounce in between.

Bearish Reversal Patterns (Indicate Trend Change from Bullish to Bearish)

⭕️ Hanging Man
Same as the Hammer, but appears after an uptrend.

⭕️ Shooting Star
Small body with a long upper wick and little or no lower wick.

⭕️ Bearish Engulfing
Description: A large red candle completely engulfs the previous green candle.

⭕️ Evening Star
Sequence of three candles:
A bullish green candle.
A small indecisive candle (Doji or small body).
A strong red candle.

⭕️ Double Top
Two highs at a similar resistance level, with a drop in between.

3. Continuation Patterns (Confirm the Current Trend)

➡️ Bullish Flag
A strong rise followed by a consolidation in the form of a descending channel.

➡️ Ascending Triangle
Highs at the same resistance and ascending lows.