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Master crypto trading with these 5 essential candlestick patterns, from Bullish Engulfing to Doji. Learn how to spot reversals, trends, and market signals using real chart examples. A beginner-friendly guide by Extsy Crypto Exchange.
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Top 5 Candlestick Patterns Every Crypto Trader Should Know ? Why Candlestick Patterns Matter Candlestick patterns are visual cues that help traders predict market direction based on past price movements. Mastering them can give you an edge in spotting reversals, trends, and smart entry/exit points — especially in the fast-moving crypto market. Here are 5 essential candlestick patterns every crypto trader should know in 2025: 1. ? Bullish Engulfing ● What it means: A strong reversal signal where a green (bullish) candle completely “engulfs” the previous red (bearish) candle. ● When to use: At the bottom of a downtrend — signals a possible shift to an uptrend. ● Trader Tip: Confirm with volume spike or support zone. 2. ⚠ Bearish Engulfing ● What it means: A red (bearish) candle fully covers the previous green (bullish) candle. ● When to use: At the top of an uptrend — may signal a price reversal downward. ● Trader Tip: Use in conjunction with RSI or resistance levels. 3. ✨ Doji
● What it means: A candle with little to no body — meaning open and close prices are almost the same. ● When to use: Indicates indecision in the market. Can appear before reversals. ● Trader Tip: Best used when found near key support/resistance areas. 4. ? Shooting Star ● What it means: A small body with a long upper wick. Suggests price tried to rise but failed. ● When to use: After a strong uptrend — bearish reversal signal. ● Trader Tip: Look for confirmation with a red candle after the shooting star. 5. ? Hammer ● What it means: Small body with a long lower wick. Price dropped and recovered within the same session. ● When to use: After a downtrend — bullish reversal signal. ● Trader Tip: Works best with volume confirmation and near support zones. ? Final Thoughts Candlestick patterns are not magic — they’re tools, and they work best with confirmation (like volume, RSI, or support/resistance). Start with these 5 essentials, practice spotting them on real charts, and you’ll sharpen your crypto trading instincts. ✅Pro Move: Use platforms like Extsy with advanced charting tools so you can apply candlestick knowledge directly while trading.