Candle Patterns (fusion)
Candle formations signaling reversal or continuation
Beginner-friendly explanation
Candle patterns are shapes formed by two or more Japanese candlesticks. They help tell if the market will continue or reverse. Example: Two candles form: one red, then a green one that covers it. That’s a bullish engulfing pattern.
Intermediate-level insight
Candle patterns include fusions like engulfings, haramis, or stars. Their meaning depends on context: trend, volume, support. Reading them takes skill and discipline. Example: On daily support, a hammer followed by a bullish engulfing gives a buy signal for swing trading.
Advanced perspective
Merged candle patterns are condensations of market psychology. Their probability depends on volatility, location (liquidity zones, order blocks), and confirmation from indicators (RSI, OBV). Example: A trader measures the success of an evening star in a FVG zone, along with MACD bearish divergence: prime short setup.
Technical Analysis & Charting
candlestick, candles, pattern, engulfing, harami, star, reversal, continuation, chart analysis