Top 3 Candlestick Patterns Every Trader Should Know 🔍

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1. Morning & Evening Star Patterns 🌟

Triple candlestick formations. They hint at trend changes. The Morning Star shows up at downtrend bottoms - first you'll see a bearish candle, then something small in the middle, and finally a strong bullish one with some reversal energy. Kind of magical how they form.

Evening Stars? The opposite. They appear at uptrend peaks. A bullish candle starts it off. Then that small middle candle. Finally, a bearish one suggests things might head down. Not always perfect signals, but worth watching.

2. Three White Soldiers & Black Crows 🚀🔥

Three White Soldiers means three bullish candles in a row. They tend to show up after downtrends. It seems recent 2025 backtesting puts their success at about 65% across markets. Only 15% false signals when you confirm them right. Pretty good odds.

For best results:

  • Each candle closes higher
  • Second candle bigger than first
  • Third should match or beat the second

Spot this pattern? Maybe go long. Put stops under that first candle. Works really well in crypto, especially after those boring sideways periods.

The flip side? Three Black Crows. Uptrend peaks. Three bearish candles in a row. Same size rules apply - each new candle should be at least as big as the last one. Not entirely clear why this works so consistently, but traders swear by it.

3. Three Inside Up & Inside Down 📈📉

Three Inside Up forms at downtrend bottoms. Long bearish candle first. Then a bullish one that reaches halfway up the first. Third candle? It closes above the first candle's high. Simple.

Three Inside Down? Reverse it all. Starts with a long bullish candle. Then a bearish one hitting the midpoint. Last candle closes below the first one's low. Bears taking control.

These patterns shine when you add other indicators. Crypto traders in 2025 still find them valuable. You just need to spot them correctly on your charts. No guarantees, but the signals are surprisingly reliable when market conditions align 🌕

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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