@wll__enzo2: part 72 mbappe argaxa real medrid 33k 👈 wax yar ka dhiman ascabta

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Friday 29 August 2025 06:43:01 GMT
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What Are Candlestick Patterns? Candlestick patterns are a form of technical analysis used by traders to interpret price movements and predict potential future market direction. Originating from 18th-century Japanese rice traders (most notably Munehisa Homma), they visualize the emotional
What Are Candlestick Patterns? Candlestick patterns are a form of technical analysis used by traders to interpret price movements and predict potential future market direction. Originating from 18th-century Japanese rice traders (most notably Munehisa Homma), they visualize the emotional "battle" between buyers (bulls) and sellers (bears) within a specific time frame—be it one minute, one hour, one day, or one week. Each candlestick provides four key pieces of information: 1. Open: The price at which the asset started the period. 2. High: The highest price reached during the period. 3. Low: The lowest price reached during the period. 4. Close: The final price at the end of the period. The main body (the "real body") is formed between the open and close prices. If the close is higher than the open, the candle is typically colored green or white (a bullish candle). If the close is lower than the open, it is colored red or black (a bearish candle). The thin lines above and below the body are called wicks (or shadows). They represent the highest and lowest prices of the period. The Psychology Behind the Patterns Candlesticks are a visual representation of market sentiment. They tell a story of struggle and momentum. · A long green body indicates strong buying pressure; bulls are in control. · A long red body indicates strong selling pressure; bears are in control. · Small bodies (Dojis) indicate indecision; the battle between bulls and bears is nearly equal. · Long upper wicks signify that buyers pushed the price up, but sellers eventually forced it back down by the close. · Long lower wicks signify that sellers pushed the price down, but buyers eventually forced it back up by the close. Types of Candlestick Patterns Patterns are generally categorized into three groups: 1. Reversal Patterns: Signal a potential change in the current trend. 2. Continuation Patterns: Suggest the existing trend is likely to resume after a pause. 3. Indecision Patterns: Signal market uncertainty. Let's look at some of the most common and reliable patterns. 1. Common Reversal Patterns Bullish Reversal Patterns (Appear in a Downtrend) · Hammer: A single-candle pattern with a small body at the top and a long lower wick (at least twice the length of the body). It appears in a downtrend and signals that sellers drove prices lower, but buyers aggressively stepped in to push the price back near its open. It's a sign of potential bullish reversal. · Bullish Engulfing: A two-candle pattern. The first is a red candle. The second is a larger green candle that completely "engulfs" the body of the first candle. This shows that buying pressure has completely overwhelmed the prior day's selling · Morning Star: A three-candle pattern in a downtrend. 1. A long red candle (selling pressure). 2. A small-bodied candle (indecision, a "star") that gaps down. 3. A long green candle that closes well into the body of the first red candle (new buying pressure). Bearish Reversal Patterns (Appear in an Uptrend) · Hanging Man: Identical in shape to the Hammer but appears after an uptrend. It signals that significant selling pressure emerged during the period, even if buyers managed to push the price back up. It's a warning of potential weakness. · Bearish Engulfing: The opposite of the Bullish Engulfing. A green candle is followed by a larger red candle that completely engulfs it. This shows that sellers have taken control. · Evening Star: The bearish counterpart to the Morning Star. It's a three-candle pattern in an uptrend: a long green candle, a small indecision candle that gaps up, and a long red candle that closes well into the body of the first green candle. #candlestick #candlestickpatterns #ChartPatterns #reversalpatterns #allcandlestic candlestick

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