Lesson 3: Reversal & Continuation Patterns

Lesson Overview
Candlestick patterns can signal either trend reversal or trend continuation.

Reversal Patterns
Doji indicating indecision
Hammer at support levels
Engulfing patterns after strong moves

Continuation Patterns
Rising and falling three methods
Strong trend candles with small pullbacks

Confirmation Techniques
Using volume
Support and resistance alignment
Trend direction confirmation

Key Takeaway
Confirmation increases the reliability of candlestick signals.