Candlestick Patterns - How to read them like a ProOverview
Candlestick charts serve as a cornerstone in technical analysis, presenting price activity in a visually digestible format. By examining how prices move over a given timeframe, traders gain key insights into potential market direction, sentiment shifts, and trend strength.
Mastering candlestick interpretation is essential for identifying bullish or bearish sentiment, as well as for spotting possible trend reversals or continuations. Still, candlesticks alone don’t paint the full picture—using them without broader context increases the risk of false signals.
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What You'll Learn
What are candlestick charts?
Common bearish candlestick patterns
Common bullish candlestick patterns
How to apply candlestick analysis in trading
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What is a Candlestick Chart?
A candlestick provides a snapshot of an asset’s price behavior during a specific time interval, whether it's one minute, one hour, or one day. This format allows traders to quickly assess how the price has moved within that period.
Each candle reveals four price points:
* Open – the price at the beginning of the interval
* Close – the price at the end of the interval
* High – the highest price reached
* Low – the lowest price during that time
Anatomy of a Candlestick:
* Body: The thick section between the open and close. A green (or white) body means the close was higher than the open (bullish), while red (or black) means the opposite (bearish).
* Wicks (or Shadows): Thin lines extending from the body to indicate the high and low.
* Upper wick: Marks the highest traded price
* Lower wick: Marks the lowest traded price
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Bearish Candlestick Patterns
Understanding bearish candlestick patterns helps traders identify moments when buying momentum might be running out—setting the stage for a potential downward shift.
Evening Star
A three-candle formation that signals a shift from buying pressure to selling dominance. It starts with a strong bullish candle, followed by a small-bodied candle of indecision, and concludes with a large bearish candle that cuts deep into the first. This pattern often appears at the end of an uptrend.
Bearish Engulfing
This setup includes a small bullish candle followed by a large bearish candle that completely swallows the previous one. It indicates that sellers have seized control, potentially marking the beginning of a downward trend.
Shooting Star
With a small real body near the low and a long upper wick, this pattern reflects strong early buying that is ultimately rejected by the close—suggesting fading bullish momentum.
Gravestone Doji
This candle opens, closes, and hits its low all around the same price, leaving a long upper wick. It suggests that bulls pushed higher during the session but were overpowered by bears by the close.
Three Crows
Three consecutive bearish candles, all approximately the same size. These indicate that a sell off is coming soon.
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Bullish Candlestick Patterns
Bullish patterns can alert traders to possible reversals after a downtrend or strengthen conviction during an uptrend.
Morning Star
This three-candle formation marks a potential turning point from bearish to bullish. It begins with a strong bearish candle, followed by a smaller candle showing indecision, and ends with a large bullish candle breaking upward—signaling buying strength is returning.
Bullish Engulfing
This two-candle pattern begins with a bearish candle, then a larger bullish candle that completely envelops the previous body. It reflects a sharp transition in sentiment, suggesting renewed buying pressure.
Dragonfly Doji
A single candle where the open, close, and high are all very close, with a long lower wick. It shows sellers pushed prices lower but buyers stepped in and brought them back up—an early sign of possible reversal.
Hammer
A classic bullish reversal signal that features a small real body near the top and a long lower shadow. It indicates a battle where sellers initially dominated, but buyers managed to close near the open price.
Three soldiers
Three consecutive bullish candles, all approximately the same size. These indicate that a big buy is coming soon.
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Trading with Candlestick Patterns
Candlestick patterns become more meaningful when they align with major chart areas—such as previous support or resistance, trendlines, or retracement zones. A bullish signal at a support level can hint that the downward pressure is fading, while a bearish pattern at resistance may warn of an upcoming decline.
To increase the reliability of your trades, combine candlestick patterns with other forms of technical analysis:
* Support & Resistance Zones: These are price levels where the market has historically reacted. Candlestick patterns forming near these zones have stronger potential implications.
* Fibonacci Levels : These help identify likely retracement areas. When a candlestick pattern forms near a key Fibonacci level like 61.8%, it adds strength to a potential reversal setup.
* Liquidity Areas: Clusters of orders (buy or sell) tend to create strong reactions. When patterns appear in these zones, they often precede more decisive moves.
* Technical Indicators : RSI, MACD, Moving Averages, and Stochastic RSI can provide confirmation. For instance, a bullish reversal pattern that appears when RSI is oversold strengthens the signal.
💡 Tip: Don’t rush into trades based on one candlestick alone. Always wait for the next candle or price confirmation (e.g., a break of a previous high/low) to validate your signal.
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BTC
BTC - Bullflag Pattern points to new ATHMarket Context
Bitcoin has been trading within a well-defined descending channel for several weeks now, respecting both upper and lower boundaries with precision (3 touches on the top, 2 on the bottom). This structure suggests an orderly pullback after a strong impulsive leg to the upside in Q2. As price compresses within this flag-like pattern, market participants are watching closely for signs of breakout or breakdown.
Bullish Fair Value Gap Reaction
Recently, price dipped into a Daily Fair Value Gap (FVG) and bounced strongly — a key bullish signal indicating that demand stepped in at the inefficiency. The FVG also aligns with a retest of the channel’s resistance-turned-support, further validating the bounce. This confluence zone acts as a springboard for potential continuation.
Channel Breakout & Liquidity Above ATH
Price has now broken above the channel structure, shifting the market narrative from consolidation to potential expansion. The breakout zone is located just beneath the All-Time High (ATH) — an area that’s likely loaded with stop orders and breakout buys. A sweep or clean break above the ATH would not only invalidate the prior bearish structure but also trigger a fresh wave of bullish momentum.
Bull Flag Continuation Potential
Structurally, this chart presents a classic bull flag breakout. After a strong impulsive leg up and a controlled consolidation phase, we now see bullish continuation potential toward the 112,000–114,000 region. If the ATH gets breached and reclaimed, it could become strong support in the next leg higher.
Final Thoughts
This is the type of setup that blends both technical precision and market psychology — structure, liquidity, and momentum all coming together. Whether you're already long or watching for confirmation, this move could set the tone for Bitcoin’s next major rally.
If you found this analysis helpful or thought-provoking, please give it a like! And let me know in the comments — do you see this as a true breakout or a trap in disguise?
Bitcoin's Consolidation Almost Over —200-220 DaysBitcoin's consolidation period before a bullish breakout tends to last some 200-220 days on average. We have four instances of this pattern since the 2022 bear market counting 2025. Let's look at those. This proves that Bitcoin is set to grow in a matter of days. Continue reading below and make sure to boost. When you reach the end of the article leave a comment with your opinion about this issue. Do you agree? Do you disagree? Can you see what I mean?
» Back in 2022 Bitcoin consolidated for 203 days before a bullish breakout.
» Back in 2023 Bitcoin consolidated for 203 days before a bullish breakout.
» Back in 2024, last year, Bitcoin consolidated for 217 days before a bullish breakout.
It really depends on where you start counting for the total days but it all adds up to 200-220 days. With 220 being the maximum.
» Currently, in 2025, Bitcoin has been consolidating for 210 days. Looking at previous patterns, this means that only a few days are left before Bitcoin produces a bullish continuation.
We also saw that once Bitcoin breaks out of a this long-term consolidation range/period/phase, it never moves back to the lows of the consolidation range. That is, Bitcoin will never trade below 80K nor 90K once it resumes growing.
I am estimating that the next jump can start as early as next week. The entire move can take months to develop. After a peak is reached, Bitcoin will then start a new consolidation phase with a bearish bias first. This bearish bias produces a low after several months yet a strong higher low compared to the previous consolidation period which is current prices. After this low, more consolidation and then a new bullish jump.
If we take into consideration a bear market, then the dynamics can be different. Bear markets only happen once every four years. Seeing how different market conditions are now, the next bear market will be interesting because it won't be anything like the bear markets of the past. Bitcoin will remain much stronger but that is an analysis for another time.
Summary
Bitcoin is going up. It is very close now. When Bitcoin breaks up and hits a new all-time high, just to continue growing, the altcoins market will explode. You've been warned.
Now you can leave your comment.
Share your opinion on the comments section below. I know you have something to say. You've been trading Cryptocurrencies for years, buying and selling, making profits so... Are you ready for the 2025 bull market?
Thank you for reading.
Namaste.
Bitcoin can rebound from resistance level and start to declineHello traders, I want share with you my opinion about Bitcoin. Recently, the price broke above a local resistance and quickly approached the key resistance level at 110000, which also aligns with the upper boundary of the seller zone (110000 - 110700 points). This area has already proven its strength multiple times, causing sharp rejections in the past. Moreover, the price has tested it again recently and failed to break through. In addition, we can see a triangle structure, which fits the logic of a pennant pattern after a bullish wave. However, the latest move upward has already lost momentum near the apex, and the price is now trading just under the upper edge of this formation. That makes this zone technically overloaded and vulnerable to a downside reversal. Based on this, I expect Bitcoin to test the resistance level one more time and then roll back down toward TP 1 at 106000 points, a zone near previous liquidity accumulation and a local consolidation range. If selling pressure increases, the price might aim for the buyer zone (103800 - 103100). Given the current rejection at resistance, the structure of the triangle, and the reaction inside the seller zone, I remain bearish and expect further decline toward the support. Please share this idea with your friends and click Boost 🚀
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BITCOIN - Price can drop from resistance area to $103000Hi guys, this is my overview for BTCUSD, feel free to check it and write your feedback in comments👊
Some days ago, price entered a pennant pattern, where it at once made an upward impulse from support line.
Then the price reached $98700 level and soon broke it, after a small correction, and then continued to move up.
Later BTC rose to the resistance line of the pennant, but soon turned around and started to decline, breaking $110000 level.
Price little corrected and then tried to bounce back and failed, after which it fell to $98700 level and then started to grow.
In a short time, BTC rose to a $110000 resistance level and tried to break it again, but recently turned around and started to fall.
Now, I expect that BTC can grow to the resistance area and then drop to $103000 support line of the pennant.
If this post is useful to you, you can support me with like/boost and advice in comments❤️
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HelenP. I Bitcoin may correct to support level and continue growHi folks today I'm prepared for you Bitcoin analytics. If we look at the chart, the price has formed a clean upward channel after bouncing from the strong support zone at 103500 - 103000 points. This movement marked the beginning of a new bullish phase. Price continued to rise step by step, confirming the structure with higher highs and higher lows. After reaching above 110000 points, it made a minor pullback but still trades above Support 1 - 108800 points. This zone, 108800 - 108200 points, aligns well with the midline of the channel and may serve as a strong area for buyers to re-enter. The price is currently trading around 110382 points and is still respecting the channel structure. As long as BTCUSD stays above the support zone and inside the ascending channel, I expect a potential continuation toward the upper boundary. My current goal is 114000 points - near the resistance line of this bullish channel. Given the strong trendline support, clean reaction at each correction, and buyer activity on lows, I remain bullish and anticipate further growth. If you like my analytics you may support me with your like/comment ❤️
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SOLANA → Pre-breakdown consolidation may lead to distributionBINANCE:SOLUSDT is declining and testing the support of the trading range as Bitcoin pauses after strong growth and enters a correction phase...
SOL looks a bit weaker than Bitcoin technically, but SOLANA has some positive fundamentals, though that might not be enough.
After forming a false breakout of key daily resistance, Bitcoin is moving into a correction phase. An update of local lows on the chart could trigger a drop across the entire cryptocurrency market.
In SOL, the focus is on the two nearest levels of 148.75 and 145.64. A breakdown of support could trigger the distribution of accumulated energy within the specified range as part of a downward momentum.
Resistance levels: 148.75, 151.2, 153.88
Support levels: 145.64, 138.59
The ideal scenario would be a false breakout of 148.75 (liquidity capture) and a retest of 145.64, followed by a break of support. Consolidation below 145.65 could trigger a drop to the zone of interest at 138.59.
Best regards, R. Linda!
BTC - Bulls Getting Ready!!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈BTC has been bullish trading within the flat rising wedge marked in blue and it is currently retesting the lower bound of the wedge.
Moreover, the orange zone is a strong demand.
🏹 Thus, the highlighted blue circle is a strong area to look for buy setups as it is the intersection of demand and lower blue trendline acting as a non-horizontal support.
📚 As per my trading style:
As #BTC approaches the blue circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...)
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Bitcoin Roadmap => Short-termBitcoin ( BINANCE:BTCUSDT ) is moving above a Heavy Resistance zone($110,720-$105,820) , Cumulative Short Liquidation Leverage($110,300-$111,177) and is approaching All-Time High(ATH) .
Do you think Bitcoin will create a new All-Time High(ATH) in this rally?
In terms of Elliott Wave theory , Bitcoin's rise over the last two days appears to have been in the form of wave 5 .
Also, we can see the Regular Divergence(RD-) between Consecutive Peaks.
I expect Bitcoin to start declining in the coming hours. Targets are marked on the chart.
Cumulative Long Liquidation Leverage: $106,750-$106,202
Note: Stop Loss(SL)= $111,223
Please respect each other's ideas and express them politely if you agree or disagree.
Bitcoin Analyze (BTCUSDT), 1-hour time frame.
Be sure to follow the updated ideas.
Do not forget to put a Stop loss for your positions (For every position you want to open).
Please follow your strategy and updates; this is just my Idea, and I will gladly see your ideas in this post.
Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
Volatility period likely to continue until July 11th
Hello, traders.
Please "Follow" to get the latest information quickly.
Have a nice day today.
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This volatility period is expected to last until July 11th.
The first volatility period, July 1-7, 3 days passed, and the second volatility period began on July 6.
It is important to explain it in words, but I think it would be better if you could intuitively understand the flow by looking at the chart.
For that reason, I divided the chart into a chart with a trend line drawn and a chart with indicators.
Since the trend line is used as a tool to calculate the volatility period, it is not necessary to show it after the volatility period is displayed.
What we need to look at is the support and resistance points drawn on the 1M, 1W, and 1D charts after the calculated volatility period, or the support in the indicator to find the trading point.
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It seems that support is being checked around 108316.90, which is the HA-High indicator point of the 1D chart.
Therefore, we need to see if it can rise after receiving support near 108316.90 during this volatility period.
If not, it will eventually show a downward trend.
As a basic trading strategy, we use buying near the HA-Low indicator and selling near the HA-High indicator.
Therefore, considering the current price position, it can be said that it is a section where we should sell to make a profit.
However, since the HA-Low and HA-High indicators are intermediate values, if it falls from the HA-Low indicator, it is possible to show a stepwise downward trend, and if it rises from the HA-High indicator, it is possible to show a stepwise upward trend.
Therefore, we need to respond with a split transaction.
Conditions for continuing the uptrend include:
1. When OBV is above the High Line and shows an upward trend,
2. When PVT-MACD oscillator is above the High Line,
3. When StochRSI is above K > D, showing an upward trend,
If the above conditions are met, there is a high possibility that the uptrend will continue.
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If it falls below the M-Signal indicator on the 1D chart, it is highly likely that it will select the trend again when it meets the M-Signal indicator on the 1W chart.
At this time, whether there is support near 99705.62 is important.
If it rises, you should check whether it is supported near 111696.21.
If it is not supported, it means that it has not broken through the high point section, so you should prepare for a decline.
The high point boundary section is the 108316.90-111696.21 section.
Therefore, if the price is maintained within this section, there is a possibility that it will continue to attempt to break through upward.
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Thank you for reading to the end.
I hope you have a successful trade.
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- Here is an explanation of the big picture.
(3-year bull market, 1-year bear market pattern)
I will explain more details when the bear market starts.
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ES, SPY, SPX will be testing key support on Sunday After a welcome rally into new highs for the s&p, there appears to be a critical crossroad forming. Using the ES continuous contract I have placed 2 anchored VWAP's. The first being anchored to the last higher low on Thursday, June 19. And the the second, being anchored to this last Thursdays high on July 3rd.
For this post we will call the anchor from June 19 - VWAP1. And for the July 3rd anchor - VWAP2
VWAP1 r1 has acted as a key support line since the higher low was set. Successfully bouncing and holding support several times.
As we headed lower on this Thursdays July 3rd session, we remained between the center and r1 of VWAP2 indicating strong selling pressure for the day. With it being a shortened trading day with less liquidity however, I have less concern over the days price action. The forming crossroads and the upcoming Sundays open will be more telling for where we likely head this week.
The blue Horizontal Line at 6266 is placed directly on VWAP1s r1 (green line) which has acted as support. If we trade into this level on the Sunday open, it's a clear signal the sellers are still in control. If however, price can consolidate at that level (6266) and form structure, a breakout of the structure would be evidence of sellers backing off and buyers stepping in creating a good buying opportunity for the week.
Another possible scenario, if we first manage to trade up into s1 of VWAP2 (orange line) around the 6300 level, I will be looking for a short scalp down to the r1 of VWAP1 at 6266. From here it would be prudent to sit and wait for more confirmation on if this is a reversal, or just another pullback in the uptrend.
These are my two trade setups and ideas for Sunday's open. Hope this analysis helps. Happy trading 🤙💰📈
BITCOIN ANALYSIS - What's Next for for BTC?🎯 KEY LEVELS DECODED
🛡️ FORTRESS SUPPORT: $102,800 - $103,200
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NEUTRAL STRATEGY:
Buy Zone: $102,800 - $102,600
Sell Zone: $110,000 - $112,000
Stop Loss: $100,500 (range breakdown)
Target: Opposite end of range
Position Size: 3-5% of portfolio
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🎢 SCENARIO : (Probability: 35%)
If BTC consolidates between $102K-$108K :
Range-bound trading for 2-3 weeks
Accumulation phase before next major move
Key levels: Buy $102K, Sell $110K
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🛡️ RISK MANAGEMENT 🚨 DISCLAIMER 🛡️ DYOR
BTC - Channel is Broken, Now What?
The most bullish scenario right now is that the price stays in the upper part of the channel, tests the top of the channel and continues to rise.
If this breakout in BTC remains a manipulation, the price may also make the same manipulation downwards. When the price breaks through, my first thought is that it may find support at the midpoint of the channel, but this is a low probability. The higher probability is that it will make the same manipulation downwards and then re-enter the channel.
#BTC Update #2 – July 5, 2025🟠 #BTC Update #2 – July 5, 2025
I still see $112,000 as Bitcoin’s next major target. That said, the $110,000 zone continues to offer strong resistance, and price hasn’t managed to break through it with conviction yet.
If BTC can’t clear $110K with momentum, I expect a potential pullback. For now, I consider price action to be stuck in a decision zone. Without a clean breakout above $110K, I wouldn’t be surprised to see a deeper correction before any meaningful upside continues.
Bitcoin Recovers Above 105,000, Extremely Bullish +AltcoinsBitcoin produced only two days red, a bear-trap, and is now trading daily back above $107,000, an extremely bullish development.
Good morning my fellow Cryptocurrency trader, I hope you are having wonderful day.
The altcoins market bull market is confirmed and what Bitcoin is currently doing gives further strength to the bullish case and bias. It will be only a matter of days before the entire altcoins market turns strongly bullish with major momentum.
The range is still valid though, $100,000 - $110,000. But this time around the upper-boundary is likely to break and the last ATH tested, a new all-time high is even possible and also highly probable which is what will propelled the altcoins to hit multi-year highs and some even new all-time highs. Many pairs will move ahead.
With each passing day, the Cryptocurrency market will continue to heat up. We can expect growth long-term.
The 2025 bullish cycle started with the 7-April market low. The start of the third wave started 22-June and should go for 2-3 months. Then we will have a correction, the fourth wave followed by one final jump, the fifth wave.
We can expect growth now and all through late 2025. The entire period will be bullish. Only when the marketwide correction comes there will be a pause but many pairs will grow even at this point.
Choose wisely. Low risk vs high potential for reward.
Aim high. Focus on the long-term.
Thanks a lot for your continued support.
Namaste.
BTCUSD – Long Setup (2H Chart)👆👆🚀🚀Boost it if you like it (Thanks)🚀🚀👆👆
Idea:
Bitcoin is breaking out above the descending Flag after testing the upper boundary multiple times, showing bullish momentum confirmed by price holding above the 15 EMA and 50 EMA. The breakout aligns with strong impulse candles and sustained buying pressure.
Entry:
✅ Buy near $110,000
Stop Loss:
🔴 Below $108,500, under the breakout structure to protect against a false breakout.
Take Profit:
🟢 Tp1 $111,245
🟢 Tp2 $112,600
Rationale:
Clear breakout of the channel top resistance.
Bullish EMAs crossover with sustained slope.
Strong impulse move suggesting continuation.
Risk Management:
Position size accordingly, max risk 1–2% capital per trade.
#Bitcoin #BTCUSD #CryptoTrading #Breakout #LongSignal #TradingView #TechnicalAnalysis
STORJ/ USDT - SHORT SET-UP 📊 Key Technical Insights
1. Price Structure
Price recently rejected near 0.2550–0.2575 zone (supply/resistance).
Lower highs forming, indicating bearish market structure.
Current price (~0.2444) is just under minor resistance, which may confirm the start of a new leg down.
2. Risk-Reward Ratio
Risk: ~0.0131 (from 0.2444 to 0.2575)
Reward: ~0.0258 (from 0.2444 to 0.2186)
RRR: ~1:2 — Good risk-to-reward ratio.
3. Support Zones
Minor support: 0.2330–0.2300 area — could act as TP1.
Major support (TP2): 0.2186 — aligns with historical price reaction.
4. Candlestick Behavior
Rejection wicks seen near the 0.2550 zone, confirming supply presence.
Recent candles show selling pressure dominating.
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📉 Trade Plan Summary
Component Level
Sell Entry ~0.2444
Stop Loss 0.2575
TP1 ~0.2300
TP2 (Main) 0.2186
Trend Bearish
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✅ Confluences Supporting the Short Setup
Double/triple top formation around 0.2570.
Lower highs and bearish market structure.
Price rejected strongly from resistance zone.
Clean support zones below offer logical targets.
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🚨 Caution
If price breaks and closes above 0.2575 with strength, the bearish setup becomes invalid.
Watch for fakeouts or consolidation between 0.2400–0.2500.