Candles patterns that identify Trend Reversal.

In trading, both buying and selling, or as it is formally called long or short are opportunities that every trader looks for to make profits. One good thing about trading is that whichever direction the market is going either up or down at any point in time, the traders are involved in making money if they predict the movement rightly.

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So one major thing that aids proper prediction is technical analysis. And how does this technical analysis work? This is what we are going to be discussing in this section today. You may not need indicators to properly analyze a chart because most times they deceive a trader into entering the wrong direction.

So that being said, the major thing that helps you to identify the trend movement of an asset is the candle itself. By merely looking at the movement, you can ascertain if the market is in an uptrend or it is on a downtrend. Aside from that we also need to know when a trend is about to change its movement because it is also a great opportunity to enter the market either long or short and make your profit.

There are a few basic candles that whenever we see them we will know that the trend is about to change. I will list and discuss most of them below. As the lesson goes ahead, I will through more light on them. So let's just know their names for today.

• Bullish and Bearish Engulfing
• Morning and Evening Star ✨
• Bullish and bearish pin bar (Hammar)
• Bullish and bearish Harami pattern

There are many more but the ones we see most often in our charts are the ones I have listed above. Now these patterns are all full courses on their own so they need more attention and in-depth review so that you can understand and identify them when you see them. For that reason, I will discuss them one after the other in subsequent posts.

It is also important to understand support and resistance in trading because you see these patterns mostly in the support and the resistance level. Now if you see them in support, you should prepare to long or buy whereas when you see it in the resistance level you should prepare to short or sell.

So in my next publication, we will discuss briefly on support and resistance before we can go into the patterns one after the other. Enjoy reading through this post guys and if you have any questions please do well to ask me. Best of luck guys as we move to the trading world.