Here’s Why:

• Forms after an uptrend or strong bullish move.

• The candle has a small real body near the low and a long upper wick, showing price was pushed up but rejected hard.

• Buyers tried to continue the rally, but sellers took control and pushed the price back down

• This wick signals rejection at higher levels and hesitation from bulls.

What It Indicates:

• A potential bearish reversal.

• Momentum may be shifting from buyers to sellers.

• Traders often look for confirmation on the next candle(e.g., a red candle closing lower) before acting.

• Commonly used as an early warning to tighten stops or look for short entries.

Here’s Why:

• Forms after an uptrend or strong bullish move.

• The candle has a small real body near the top and a long lower wick, with little or no upper shadow.

• Shows that sellers entered the session aggressively, pushing price down, but buyers managed to close it back near the open.

• Despite the recovery, the long lower shadow reveals weakness in bullish momentum.

What It Indicates:

• A potential bearish reversal.

• Suggests buying pressure is fading and sellers are gaining strength.

• Traders often look for confirmation from the next candle (like a strong red close) to validate the pattern.

• It’s a warning sign that the uptrend could be ending.

Here’s Why:

• Forms after a downtrend or bearish move.

• The candle has a small real body near the top and a long lower wick , with little or no upper shadow.

• The long lower wick shows sellers tried to push the price lower, but buyers fought back and closed near the high.

• This shows a shift in control from sellers to buyers.

What It Indicates:

• A potential bullish reversal.

• Signals that downward momentum may be weakening , and buyers are stepping in.

• Traders look for confirmation (like a strong green candle next) to validate the reversal.

• Often used as an early entry point in a trend change to the upside.

Here’s Why:

• Appears after a downtrend or strong bearish move.

• The candle has a small real body near the bottom and a long upper wick, with little or no lower shadow.

• Shows that buyers tried to push price up, but sellers brought it back down slightly — however, buyers still held ground.

• The long upper wick signals early buying interest even if the session closed lower.

What It Indicates:

• A potential bullish reversal.

• Suggests buyers are starting to test control, even if they haven’t fully taken over yet.

• Traders typically wait for confirmation on the next candle — like a strong bullish close — before entering.

• It’s often seen as a warning sign that the downtrend may be losing steam.

Here’s Why:

• A strong two-candle pattern forms where the second candle’s body fully engulfs the body of the first.

• This shift shows that the previous trend is weakening, and momentum is flipping.

• In a Bullish Engulfing, a small red candle is followed by a large green candle that engulfs it — signaling buyers have stepped in forcefully.

• In a Bearish Engulfing, a small green candle is followed by a large red candle that engulfs it — showing sellers have taken control.

• This often happens at the end of a trend, hinting at exhaustion and a reversal.

What It Indicates 

• A possible reversal in the current trend.

• Signals a strong shift in sentiment, either from bearish to bullish or bullish to bearish.

• Traders use it to spot momentum changes and may enter in the direction of the engulfing candle, often placing stop losses beyond the engulfing candle’s high or low.

Here’s Why:

• A two-candle pattern where the second candle’s body is fully contained within the body of the first — like a “baby” candle inside a “parent” candle.

• In a Bullish Harami, a large red candle is followed by a small green candle, signaling that selling pressure has weakened and buyers are stepping in cautiously.

• In a Bearish Harami, a large green candle is followed by a small red candle, suggesting bullish momentum is fading and sellers may regain control.

• This formation often appears after a strong trend and represents indecision or potential reversal.

What It Indicates 

• A pause or shift in trend direction — often the early sign of a reversal.

• It reflects market hesitation, where the dominant force (buyers or sellers) is losing strength.

• Traders use Haramis to anticipate reversals with tighter risk setups, often placing stop losses beyond the range of the larger candle.

Here’s Why:

• Two consecutive candlesticks appear with matching highs or matching lows, forming a visual “tweezer” shape.

• The second candle often rejects the same price level as the first, showing hesitation or reversal at a key level.

• The pattern typically occurs at the end of a strong trend—either up or down—signaling exhaustion of momentum.

• The identical highs or lows suggest that buyers or sellers failed to push past a critical level twice in a row.

What It Indicates 

• A potential reversal in the current trend.

• It shows a shift in market sentiment—from bullish to bearish or vice versa.

• Traders often use it to identify turning points and may enter a trade in the opposite direction of the current trend, placing stop losses just beyond the tweezer highs or lows.