CANDLESTICK PATTERNS – COMPLETE BREAKDOWN & EXPLANATION Bitcoin / U.S. dollarBITSTAMP:BTCUSDCRYPTOMOJO_TA📊 CANDLESTICK PATTERNS – COMPLETE BREAKDOWN & EXPLANATION The chart you shared is a comprehensive visual guide to candlestick patterns, divided into two major categories: Continuation Patterns Reversal Patterns These patterns help traders understand market psychology, momentum, and potential future price direction. Let’s break down everything shown in the chart in detail 👇 🔵 CONTINUATION PATTERNS Continuation patterns suggest that the current trend is likely to continue after a brief pause or consolidation. 🟢 BULLISH CONTINUATION PATTERNS These appear during an uptrend and suggest the uptrend will resume. 1️⃣ Rising Three Methods Structure: 1 strong bullish candle Followed by 3 small bearish candles (consolidation) Ends with another strong bullish candle breaking higher Psychology: Buyers remain in control. Sellers try to push price down but lack strength. Signal: Continuation of the uptrend. 2️⃣ Three White Soldiers Structure: Three strong bullish candles in a row Each closes higher than the previous Small or no lower wicks Psychology: Aggressive buying pressure. Strong trend confirmation. Signal: Strong bullish continuation. 3️⃣ Bullish Side-by-Side Structure: Strong bullish candle Followed by small candles moving sideways Breakout upward Psychology: Market pauses but buyers are still dominant. Signal: Uptrend continuation. 🔴 BEARISH CONTINUATION PATTERNS These appear during a downtrend and suggest the downtrend will continue. 4️⃣ Falling Three Methods Structure: 1 strong bearish candle 3 small bullish candles (weak pullback) 1 strong bearish candle breaking lower Psychology: Temporary relief rally, but sellers remain dominant. Signal: Continuation of the downtrend. 5️⃣ Three Black Crows Structure: Three strong bearish candles Each closes lower than the previous Small upper wicks Psychology: Strong selling pressure. Signal: Bearish continuation. 6️⃣ Bearish Side-by-Side Structure: Strong bearish candle Small sideways candles Breakdown downward Psychology: Sellers pausing before pushing price lower. Signal: Downtrend continuation. 🔁 REVERSAL PATTERNS Reversal patterns suggest the trend may change direction. 🟢 BULLISH REVERSAL PATTERNS These appear at the bottom of a downtrend and suggest price may rise. 7️⃣ Morning Star Structure: Large bearish candle Small indecision candle (gap or small body) Strong bullish candle closing deep into first candle Psychology: Sellers lose strength. Buyers step in aggressively. Signal: Downtrend reversing into uptrend. 8️⃣ Hammer Structure: Small body at top Long lower wick Appears after a decline Psychology: Sellers pushed price down, but buyers rejected lower prices. Signal: Potential bullish reversal. 9️⃣ Bullish Engulfing Structure: Small bearish candle Large bullish candle fully engulfs previous candle Psychology: Buyers completely overpower sellers. Signal: Strong reversal to upside. 🔟 Bullish Harami Structure: Large bearish candle Small bullish candle inside previous candle body Psychology: Selling pressure is weakening. Signal: Possible trend reversal upward. 🔴 BEARISH REVERSAL PATTERNS These appear at the top of an uptrend and suggest price may fall. 1️⃣1️⃣ Evening Star Structure: Large bullish candle Small indecision candle Large bearish candle closing deep into first candle Psychology: Buyers lose momentum. Sellers take control. Signal: Uptrend reversing into downtrend. 1️⃣2️⃣ Shooting Star Structure: Small body at bottom Long upper wick Appears after an uptrend Psychology: Buyers pushed higher but were rejected. Signal: Potential bearish reversal. 1️⃣3️⃣ Bearish Engulfing Structure: Small bullish candle Large bearish candle fully engulfs previous candle Psychology: Sellers overwhelm buyers. Signal: Strong bearish reversal. 1️⃣4️⃣ Bearish Harami Structure: Large bullish candle Small bearish candle inside previous body Psychology: Buying pressure weakens. Signal: Possible reversal downward. 🧠 What This Chart Is Teaching The chart is essentially teaching: ✔ Market Psychology Candlesticks represent a battle between buyers and sellers. ✔ Trend Continuation vs Trend Reversal Continuation = trend pauses, then continues Reversal = trend direction changes ✔ Pattern Confirmation Patterns work best: At support/resistance With volume confirmation With trend context On higher timeframes (like weekly) ⚠ Important Notes No pattern is 100% accurate. Always wait for confirmation. Combine with: Support & resistance Trendlines Moving averages Volume RSI / MACD 📈 Why This Matters (Especially for Crypto & BTC) On volatile markets like BTC: Continuation patterns help you ride trends. Reversal patterns help you catch bottoms/tops early. Weekly timeframe patterns are especially powerful. 🔥 Final Summary This chart is a complete visual cheat sheet of: • 6 Continuation patterns • 8 Reversal patterns • Bullish and Bearish versions • Market psychology behind each formation Mastering these patterns allows you to: Understand price action deeply Trade without relying only on indicators Improve entry & exit timing Candlestick patterns need to be one of your trading arsenal's most effective weapons. We can determine the direction of the market using several candlestick patterns. All timeframes exhibit these patterns, but the daily candlestick patterns seem to be the most reliable. Once you recognize these patterns, you may be ready for your next move and use other tools to join the market, including the previously discussed MA approach and flag patterns (see attached charts). This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you