The Trader’s Blueprint: Reading Charts, Market Structure, and Analysis
📍 Why Candlestick Patterns Matter
Patterns reveal the battle between buyers and sellers at key levels.
They help confirm reversals, continuations, and momentum shifts.
Every pro trader knows these—if you don’t, you’re trading at a disadvantage.
📍 Single Candlestick Patterns (Quick but Powerful Signals)
1️⃣ Doji – Market indecision, signals a potential reversal if found at key levels.
2️⃣ Hammer (Bullish Reversal) – Price rejects lower levels and closes strong.
3️⃣ Shooting Star (Bearish Reversal) – Price spikes up but gets slapped back down hard.
4️⃣ Marubozu (Momentum Candles) – A candle with no wick = strong buying or selling force.
5️⃣ Spinning Top – Small body, long wicks = market is confused, wait for confirmation.
📍 Double Candlestick Patterns (Stronger Confirmations)
🔹 Bullish Engulfing – A big green candle completely covers the previous red one. Shows strong buyers stepping in.
🔹 Bearish Engulfing – Opposite of the bullish engulfing. A strong red candle takes over a weak green one. Sellers in control.
🔹 Tweezer Tops & Bottoms – Two candles with equal highs or lows, showing rejection and potential reversals.
📍 Triple Candlestick Patterns (High-Probability Setups)
🚀 Morning Star (Bullish Reversal) – Three candles: a big red one, a small indecisive one, then a strong green one. Signals price is reversing upwards.
🔥 Evening Star (Bearish Reversal) – The opposite of the Morning Star. A big green candle, followed by indecision, then a strong red candle = downward move ahead.
📈 Three White Soldiers (Strong Bullish Move) – Three consecutive big green candles = buyers are in full control.
📉 Three Black Crows (Strong Bearish Move) – Three consecutive big red candles = market is dumping.
📍 How to Use Candlestick Patterns in Your Trading
Patterns are strongest at key levels (support, resistance, order blocks).
Always look for confirmation – Don’t just enter based on one candle.
Use multiple timeframes – If a pattern forms on a higher timeframe, it’s more reliable.
🔑 Key Takeaway:
Candlestick patterns are like cheat codes for trading. They show you when the market is about to shift gears. Learn them, spot them at the right places, and you’ll start catching trades before they even pop off.