candlestick pattern trading strategy
a candlestick pattern trading strategy involves recognizing various patterns and using them to make informed trading decisions. Here are some common candlestick patterns you might consider: 1. Bullish Patterns: Hammer: A small body at the top with a long lower wick, indicating potential reversal. Bullish Engulfing: A small bearish candle followed by a larger bullish candle that engulfs it. Morning Star: A three-candle pattern where a bearish candle is followed by a small body (indecision) and then a bullish candle. 2. Bearish Patterns: Shooting Star: A small body at the bottom with a long upper wick, suggesting a potential reversal. Bearish Engulfing: A small bullish candle followed by a larger bearish candle that engulfs it. Evening Star: A three-candle pattern with a bullish candle followed by a small body and a bearish candle. 3. Continuation Patterns: Doji: Indicates indecision; can be a signal of a potential reversal or continuation depending on the preceding candles. ...