What is one of the first steps to becoming a trader? Learn to read candlesticks.
If you've ever looked at a chart and felt confused by the number of red and green bars, you are not alone. But once you understand candlestick patterns, you will start to see the story behind price movement.
I just found this incredibly useful guide that divides the most important candlestick patterns into two main types:
Bullish Patterns (price is likely to rise)
Bearish Patterns (price is likely to fall)
These patterns are also divided into:
• Reversals: Indicate a potential change in trend
• Continuations: Indicate that the trend may continue
Some key patterns to watch for:
• Hammer and Inverted Hammer (Bullish Reversal)
• Bullish/Bearish Engulfing
• Morning Star and Evening Star
• Three Line Strike
• Three Methods for Up/Down
This guide makes it easy to memorize and identify patterns in real charts.
Stay tuned for more!