Candlestick Formations

Candlestick Formations

*****Bullish engulfing is a bullish candlestick chart pattern that occurs during a downtrend, where a large bullish candle completely engulfs the prior bearish candle. Itsuggests a potential trend reversal, indicating that buyers have gained control and may lead to an upward price movement.

******Bearish engulfing is a candlestick chart pattern in technical analysis that typically indicates a reversal of an upward trend. It occurs when a large bearish candlecompletely engulfs the previous smaller bullish candle, suggesting a shift in market sentiment from bullish to bearish.

********tweezer top/bottom is a candlestick pattern in technical analysis that consists of two consecutive candles with matching highs or lows. In a tweezer top, the patternoccurs at the end of an uptrend and suggests a potential reversal, while in a tweezer bottom, it occurs at the end of a downtrend and indicates a possible bullishreversal.

***********Hanging man is a bearish candlestick pattern in technical analysis that typically appears at the end of an uptrend. It is characterized by a small body located at theupper end of the trading range and a long lower shadow, indicating potential selling pressure and a possible trend reversal.

*************Shooting star is a bearish candlestick pattern in technical analysis that occurs at the end of an uptrend. It is characterized by a small body near the lower end of thetrading range and a long upper shadow, suggesting a potential reversal in the market as buyers lose control and sellers step in.

****************Morning star is a bullish candlestick pattern in technical analysis that signals a potential trend reversal from bearish to bullish. It consists of three candles, starting witha long bearish candle, followed by a smaller bullish or bearish candle, and concluding with a long bullish candle, indicating a shift in market sentiment and potentialbuying pressure. ***********Hammer is a bullish reversal candlestick pattern typically found at the end of a downtrend. It is characterized by a small body located at the upper end of the overallcandle range, with a long lower shadow, indicating that buyers have stepped in to push the price higher after a significant decline. *********Doji candle is a specific candlestick pattern characterized by its short body and almost equal opening and closing prices. It indicates a state of indecision in the market,where buyers and sellers are in equilibrium, often signaling a potential trend reversal or a period of consolidation. *************Inside bar candle is a candlestick pattern that forms when the entire price range of a candle is engulfed within the price range of the preceding candle. It suggests aperiod of consolidation and indecision in the market, often indicating a potential breakout or continuation of the existing trend depending on the subsequent price action.