Some Common Candlestick Patterns (Part 2.2)
Second part continuation. Today we are going to share the other 2 candle stick patterns.
Evening Star
The Evening Star candlestick pattern is the bearish counterpart of the Morning Star pattern and also consists of three candlesticks. The first candlestick is bullish, followed by a small-bodied candlestick that opens higher but closes lower (forming a gap), and finally, a bearish candlestick that closes near the low of the first candlestick.
Example:
Suppose Stellar (XLM) experiences an uptrend, with the price rising from $0.50 to $0.70. However, on the third day, a small-bodied candlestick forms with a gap up, followed by a bearish candlestick that closes near the low of the first candlestick. This Evening Star pattern suggests a potential reversal in the uptrend.
Three White Soldiers
The Three White Soldiers candlestick pattern is a bullish reversal pattern that consists of three consecutive long-bodied bullish candlesticks with higher closes. It indicates a strong buying pressure and potential continuation of an uptrend.
Example:
Suppose Chainlink (LINK) experiences three consecutive days of bullish momentum, with each day's candlestick opening lower than the previous day's close and closing higher. This Three White Soldiers pattern suggests a strong bullish sentiment and potential continuation of the uptrend.
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