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6 candlestick patterns that EVERY crypto trader must master ( and why )
Have you been observing charts for months and still can't predict where the price will go? Candlestick patterns are like the market's language: once you understand them, every movement tells a story.
The Hammer: When Buyers Say “Enough”
Imagine this: the price drops all day, but in the last hours, someone presses the buy button hard. The result? A small body on top and a long tail pointing down. Traders call it a Hammer, and it's the first warning that sellers are running out of ammunition. A green body makes the signal even stronger.
Bullish Engulfing: The reversal you cannot ignore
A red candle completely engulfs the previous green candle. It literally wraps it. This means that power changed hands in a matter of hours. The bears had their day, now the bulls take control. Many traders consider this one of the most reliable signals to enter long.
The Morning Star: The dawn after the storm
Three candles, one story: fall → doubt → strong recovery. After a prolonged downtrend, a small doji (indecisive candle) appears, followed by a massive green candle that closes in bullish territory. It is the moment when the market realizes that buying is a good idea.
Inverted Hammer: The Pressure of the Bulls
This is the cousin of the Hammer, but reversed. The long shadow is at the top, not the bottom. It means that buyers tried to push the price up throughout the session. Although they did not manage to close above, the attempt is a clear bullish signal.
Drilling Line: The Silent Breakthrough
Two candles: red and green. The key? The green candle opens below the previous minimum (scaring the shorts), but closes above the midpoint (trapping them). This shows unexpected buying momentum and is perfect for reversal trades.
Three White Soldiers: The confirmation you are waiting for
Three consecutive green candles, each one a little bigger than the last. This is not luck; it is evidence of consistent and increasing buying. When you see this pattern, it's as if the market is telling you: “Yes, we are serious in this direction.”
And now what?
Mastering these six patterns gives you a real edge, but it's not enough. The magic happens when you combine technical analysis + fundamentals + risk management. The best trader is not the one who predicts all the moves, but the one who loses little when they are wrong and wins a lot when they are right.