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🔥 *Candlestick Patterns Cheat‑Sheet for Traders* 🔥
Ever wonder how pros read the market’s mood just by looking at a few bars? 📊 Here are the 12 classic bullish & bearish patterns you need to know:
1. *Engulfing* - _Bullish Engulfing_: a big green candle swallows the previous red one → signals a potential *uptrend*. - _Bearish Engulfing_: a big red candle swallows the green one → warns of a *downtrend*.
2. *Marubozu* - _Bullish Marubozu_: a solid green candle with no wicks → strong buying pressure, expect *upward* move. - _Bearish Marubozu_: a solid red candle with no wicks → intense selling, expect *downward* move.
3. *Hammer* - _Bullish Hammer_: small body, long lower wick → buyers are stepping in after a dip, hints at *reversal up*. - _Bearish Hammer_ (Hanging Man): same shape in an uptrend → possible *reversal down*.
4. *Pin Bar* - _Bullish Pin Bar_: long lower tail, small body → price rejects lower levels, signals *buy*. - _Bearish Pin Bar_: long upper tail → rejects higher levels, signals *sell*.
5. *Harami* - _Bullish Harami_: small green body inside a larger red one → potential *upturn*. - _Bearish Harami_: small red body inside a larger green one → possible *downturn*.
6. *Spinning Top* - _Bullish Spinning Top_: small body with long wicks → market indecision, can lead to *up* if confirmed. - _Bearish Spinning Top_: similar indecision, may lead to *down* move.
💡 *Tip*: Always confirm these patterns with volume or other indicators before making a trade. The market loves to throw false signals, so stay sharp and use proper risk management.
👉 Which of these patterns do you use most in your trading? Are you looking for tips on how to spot them in real-time charts? 🤔
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🔥 *How to Draw a Trendline Like a Pro* 🔥 please Follow me
Yo, check out this simple guide on nailing a trendline in trading! 📈 The chart shows two key things:
1. *The right way* (top chart ✅): connect *higher lows* to form an upward trendline. You need at least *2 points* (Point 1 & Point 2), but the more touches you get, the stronger the trend becomes. The line should run through *higher highs* and *higher lows*, confirming an uptrend.
2. *The wrong way* (bottom chart ❌): drawing a trendline with just 2 points that don’t respect the higher-low pattern makes the trend weak and unreliable.
💡 *Bottom line*: a trendline needs *2 initial points* and should be validated by subsequent higher lows (for an uptrend) or lower highs (for a downtrend). The more touches, the stronger the trend signal.
Want to know how to use trendlines for actual trading decisions? 🤔
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As you might have guessed by now, the falling wedge pattern is the bullish version of the rising wedge pattern chart. The descending wedge pattern is made out of at least two lower highs and two lower lows.
So, regardless of the trend, the falling wedge breakout will signify an entry into a bull market.