The most profitable candlestick patterns according to traders

The most profitable candlestick patterns - There are many types of candlestick patterns used by traders to generate profits for them. However, not all patterns can work well. In some cases, the possibility of profit only depends on the situation and other factors in the market.

Meskipun kamu harus selalu memantau perdagangan dan mempertimbangkan setiap faktor yang dapat membentuk pergerakan pasar, ada baiknya kamu harus mengetahui pola candlestick mana yang paling menguntungkan saat digunakan untuk berdagang. 

Check out the information that will be shared by the GIC Journal below to find out what patterns you can use when trading. Here is the information below.

A Little Understanding of Candlestick Patterns

Before going into the core discussion about accurate candlestick patterns, what are candlestick patterns? Candlestick patterns are visual tools used to describe price fluctuations in assets in the past and present. This pattern consists of 3 candles, namely: upper shadow, the real body, and lower shadow. Traders and stock market analysts use this pattern to anticipate future asset movements. After you understand the meaning of candlestick patterns, now let's go into the core discussion. Below are profitable candlestick patterns that you can use when trading.

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Examples of Profitable Candlestick Patterns

Bullish Abandoned Baby

One of the most profitable candlestick patterns is a reliable reversal pattern and has a high probability with an accuracy rate of 70%. However, keep in mind that there is a big problem with this pattern, namely that this candlestick is very rare to find.

You don't need to worry too much about it, because the good news is that if you find a bullish abandoned baby pattern, then it is a great opportunity because this pattern rarely appears, but don't forget to be careful.

Doji

Considered one of the most important single candlestick patterns, it gives you insight into the sentiment in the market. The doji candlestick pattern forms when the opening and closing prices of a stock are the same. Since the opening and closing prices of the market are the same, the pattern appears to have no body. The doji pattern looks like a plus sign or a cross. In most cases, the probability of the opening and closing prices is very small, which is a big reason why traders assume that this pattern is formed even though only a very thin body can be seen on the candle.

When a doji pattern appears during a bearish or bullish trend, it is a sign that there is a pause in the trend and market participants (traders and buyers) are unsure about the price movement. The signal on the doji is interpreted as a possible trend reversal in the future.

Spinning Top

Similar to the doji, the spinning top is a single candlestick pattern that traders use to signal uncertainty in the market. The spinning top pattern forms when the closing price is close to the opening price.

The long shadow in the pattern indicates that buyers and sellers are both fighting for control, however, neither of them is winning, thus requiring certainty.

When the spinning top pattern appears, it is a sign of loss of momentum and this pattern is also used as an indicator of a trend reversal.

Of course you are asked to be alert when you find this pattern. Because there is only about a 50% chance that the trend can reverse direction with this pattern. Sometimes, the spinning pattern will only turn into a pause with the prevailing trend without a reversal.

Evening star dan morning doji

The next most profitable candlestick patterns are the evening star and morning doji patterns. The evening star is a reversal pattern observed from the top of a trend when prices are rising, and is expected to be followed by a bearish pattern.

Meanwhile, the morning star pattern is observed when the price falls followed by a bullish movement.

Inside bar

This pattern is a two candlestick pattern where the first bar is the mother bar, and the other bar is the inside bar. The inside bar is shorter than the mother bar and is located between the high and low ranges of the mother bar pattern.

In the inside bar pattern, the asset price follows the direction of the market trend, so traders are free to choose a short position in a downtrend and a long position in an uptrend.

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