Previously, Fay had discussed three reversal marking candle patterns: three line strikes, two black gapping, and three black crows.

So, this time, Fay wants to talk again about other reversal marker candle patterns. Let’s study together!

Hi, back again with Fay at Indodax Academy!

In this video, Fay will discuss three other patterns of candle reversals.

You can watch it here for those who don’t know what a reversal candle is!

Come on, let’s discuss three other types of candle reversal patterns.

Hammer and Hanging Man

The hammer and hanging man is a bullish reversal candle pattern indicating a potential turning point from a downtrend to an uptrend. A long shadow indicates the appearance of this pattern under a small body candle.

The hammer itself is a candle marked with a small body and a long shadow under the body of the candle, which shows that the buyer has succeeded in controlling the market and stopping the price decline.

This also shows buyers have entered the market and are trying to increase prices.

Meanwhile, the hanging man pattern appears during an uptrend, showing sellers are starting to enter the market and trying to push the price down.

Well, this is what distinguishes this pattern from the hammer pattern. In addition, the hanging man pattern indicates that the market will start to lose its bullish momentum and has the potential for a trend-turning point.

Morning Star and Evening Star

This morning and evening, stars can also show potential turning points from a downtrend to an uptrend.

These two patterns consist of three candles: the first candle is bearish, the second candle is a doji, and the third candle is bullish.

Morning stars appear during a downtrend showing buyers have entered the market and are trying to increase prices.

The morning star pattern is marked by a bearish first candle followed by a doji candle indicating indecision in the market, and a bullish third candle indicating that buyers have managed to control the market and push prices up.

Meanwhile, the evening star pattern appears during an uptrend and shows sellers are starting to enter the market and trying to push the price down.

This evening star pattern is marked by a bullish first candle followed by a doji candle, which indicates indecision in the market. A third bearish candle indicates that the sellers managed to control the market and push the price down.

Bullish Engulfing and Bearish Engulfing

These two candle patterns can clearly show a change in trend direction.

Bullish engulfing can show a potential turning point from a downtrend to an uptrend. Meanwhile, bearish engulfing shows a possible turning point from an uptrend to a downtrend.

This pattern is marked by a candle that engulfs the previous candle.

Bullish engulfing is marked by a bullish candle that is larger than the previous bearish candle and closes above the opening price of the last bearish candle.

This shows that buyers are starting to enter the market and trying to push the price up, which indicates a potential turning point from a downtrend to an uptrend.

Meanwhile, bearish engulfing is marked by a bearish candle larger than the previous bullish candle and closes below the opening price of the last bullish candle.

This shows that sellers are starting to enter the market and trying to push the price down, which indicates a potential turning point from an uptrend to a downtrend.

All the patterns Fay explained earlier are considered strong trend-turning signals that appear after a long or uptrend period.

Remember, this pattern should also be combined with analysis such as indicators, volume, support resistance levels, and others to strengthen trading decisions!

Hopefully, this video adds to your knowledge!

Keep up with Indodax Academy for other exciting information about crypto assets. Bye!