Some Common Candlestick Patterns (Part 1.2 )
Yesterday we wrote about 2 common candlesticks, today we are going to share other two common candlesticks.
3. Shooting Star
The Shooting Star candlestick pattern has a small body near the bottom of the price range and a long upper shadow. It suggests that despite a significant rally during the period, sellers were able to push the price back down. It basically indicates a potential reversal from an uptrend to a downtrend.
Example:
Suppose Ripple (XRP) experiences a strong upward movement from $1.00 to $1.50 during a trading session but closes near the low of the day at $1.10, forming a Shooting Star candlestick. This pattern suggests that sellers overwhelmed buyers despite the initial rally, potentially signaling a reversal in the uptrend.
4. Bullish Engulfing
The Bullish Engulfing candlestick pattern consists of two candlesticks. The first candlestick is bearish, followed by a larger bullish candlestick that "engulfs" the body of the previous candlestick. It indicates a potential reversal from a downtrend to an uptrend.
Example:
Suppose Litecoin (LTC) experiences a bearish day, with the price dropping from $200 to $180. However, on the following day, the price opens at $185 and rallies to close at $210, completely engulfing the body of the previous day's candlestick. This Bullish Engulfing pattern suggests a potential reversal in the downtrend.
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VEIGO (Community Mod)
Upvoted! Thank you for supporting witness @jswit.
I have seen your first part and second part 2 on candlestick patterns, very helpful posts
both are important candlesticks, especially the shooting star candlestick. thanks for sharing knowledgeable information here.