#Gate Alpha晒单挑战 There are many common reversal signals in Candlestick, here are some typical ones:
- Hammer and Hanging Man: Both have similar shapes, with small bodies and long lower shadows. The Hammer appears during a downtrend and is a bottom reversal signal, indicating strong support below; the Hanging Man appears during an uptrend and may be a top signal, suggesting significant selling pressure above.
- Engulfing Pattern: Consists of two candlestick bodies with opposite colors, where the body of the latter candlestick completely engulfs the body of the former. When it appears in a downtrend, it is a bullish engulfing pattern, reflecting stronger buying sentiment in the market than selling; when it appears in an uptrend, it is a bearish engulfing pattern, indicating that selling pressure dominates the market.
- Dark Cloud Cover Pattern: This is a top reversal pattern consisting of two Candlesticks. It usually appears after an uptrend; the first one is a hollow body Candlestick, and the opening price on the second day exceeds the previous day's highest price, but the closing price is close to the day's lowest price, and the closing price dips into the previous day's hollow body, with the deeper the penetration into the body, the higher the likelihood of a top reversal.
- Morning Star and Evening Star: The Morning Star is a bottom reversal pattern consisting of three Candlesticks. The first day has a longer solid body Candlestick, the second day has a smaller body star, which forms a gap with the body of the first Candlestick, and the third day shows a hollow body that clearly advances into the body range of the first day's Candlestick. The Evening Star is a top reversal pattern, the top equivalent of the Morning Star, also consisting of three Candlesticks. The first one is a longer hollow body Candlestick, the second one is a star, and the third solid Candlestick dips down into the hollow body of the first Candlestick.
- Morning Star and Rising Sun: The Morning Star is a common bullish reversal candlestick pattern that appears at the end of a downtrend, consisting of two candlesticks. The first is a medium bearish candlestick or a large bearish candlestick, and the second is a gap-up open medium bullish candlestick or large bullish candlestick, with the closing price above the previous day's bearish candlestick closing price, penetrating more than half of the bearish candlestick's body. The Rising Sun is similar to the Morning Star, but the opening price of the second bullish candlestick is not lower than the lowest price of the previous bearish candlestick, and the bullish candlestick body completely engulfs the bearish candlestick body, making it a stronger bottom signal.
- Double Black Crows: Appearing in an uptrend, it is a reversal pattern composed of two bearish candlesticks. The body of the first bearish candlestick creates a gap with the previous candlestick, and the body of the second bearish candlestick is longer and opens higher than the previous day's opening price, then closes lower, forming a pattern similar to a bearish engulfing. This pattern indicates that bulls have doubts about the future market and begin to take profits, resulting in downward adjustment pressure.
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#Gate Alpha晒单挑战 There are many common reversal signals in Candlestick, here are some typical ones:
- Hammer and Hanging Man: Both have similar shapes, with small bodies and long lower shadows. The Hammer appears during a downtrend and is a bottom reversal signal, indicating strong support below; the Hanging Man appears during an uptrend and may be a top signal, suggesting significant selling pressure above.
- Engulfing Pattern: Consists of two candlestick bodies with opposite colors, where the body of the latter candlestick completely engulfs the body of the former. When it appears in a downtrend, it is a bullish engulfing pattern, reflecting stronger buying sentiment in the market than selling; when it appears in an uptrend, it is a bearish engulfing pattern, indicating that selling pressure dominates the market.
- Dark Cloud Cover Pattern: This is a top reversal pattern consisting of two Candlesticks. It usually appears after an uptrend; the first one is a hollow body Candlestick, and the opening price on the second day exceeds the previous day's highest price, but the closing price is close to the day's lowest price, and the closing price dips into the previous day's hollow body, with the deeper the penetration into the body, the higher the likelihood of a top reversal.
- Morning Star and Evening Star: The Morning Star is a bottom reversal pattern consisting of three Candlesticks. The first day has a longer solid body Candlestick, the second day has a smaller body star, which forms a gap with the body of the first Candlestick, and the third day shows a hollow body that clearly advances into the body range of the first day's Candlestick. The Evening Star is a top reversal pattern, the top equivalent of the Morning Star, also consisting of three Candlesticks. The first one is a longer hollow body Candlestick, the second one is a star, and the third solid Candlestick dips down into the hollow body of the first Candlestick.
- Morning Star and Rising Sun: The Morning Star is a common bullish reversal candlestick pattern that appears at the end of a downtrend, consisting of two candlesticks. The first is a medium bearish candlestick or a large bearish candlestick, and the second is a gap-up open medium bullish candlestick or large bullish candlestick, with the closing price above the previous day's bearish candlestick closing price, penetrating more than half of the bearish candlestick's body. The Rising Sun is similar to the Morning Star, but the opening price of the second bullish candlestick is not lower than the lowest price of the previous bearish candlestick, and the bullish candlestick body completely engulfs the bearish candlestick body, making it a stronger bottom signal.
- Double Black Crows: Appearing in an uptrend, it is a reversal pattern composed of two bearish candlesticks. The body of the first bearish candlestick creates a gap with the previous candlestick, and the body of the second bearish candlestick is longer and opens higher than the previous day's opening price, then closes lower, forming a pattern similar to a bearish engulfing. This pattern indicates that bulls have doubts about the future market and begin to take profits, resulting in downward adjustment pressure.