The best candle patterns in trading, including on platforms like Quotex, are those that provide reliable signals for potential price movements. Here are a few of the most commonly used and effective candlestick patterns:
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1. **Doji**: A Doji candlestick forms when the open and close prices are virtually the same, indicating indecision in the market. It's a potential reversal signal, especially after a strong trend.
2. **Engulfing Pattern**: This pattern can be bullish or bearish. A bullish engulfing pattern occurs when a small bearish candle is followed by a large bullish candle that completely engulfs the previous one. Conversely, a bearish engulfing pattern happens when a small bullish candle is followed by a larger bearish candle.
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3. **Hammer and Hanging Man**: These patterns are single candlesticks with small bodies and long lower shadows. A hammer forms after a downtrend and suggests a potential reversal to the upside. The hanging man appears after an uptrend, signaling a potential reversal to the downside.
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4. **Morning Star and Evening Star**: The morning star is a bullish reversal pattern that occurs at the bottom of a downtrend, consisting of three candles: a long bearish candle, a short-bodied candle (indicating indecision), and a long bullish candle. The evening star is the opposite, appearing at the top of an uptrend.
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5. **Shooting Star**: A bearish reversal pattern that looks like an inverted hammer, appearing at the top of an uptrend, indicating that the price might start to fall.
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6. **Three Black Crows and Three White Soldiers**: The three black crows pattern consists of three consecutive long bearish candles, signaling a strong reversal after an uptrend. Three white soldiers are three consecutive long bullish candles, indicating a strong reversal after a downtrend.
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When using these patterns, it's crucial to consider other factors such as market context, volume, and additional technical indicators to confirm the signals before making a trade.
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