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The support and resistance patterns that every trader should know, if you are not aware, support and resistance act as the market's floor and ceiling.
support = the price level at which buyers intervene to stop the decline (bottom).
resistance = the price level at which sellers intervene to stop the rise (ceiling).
When the price touches these areas, it may bounce back or break through, and here the Japanese candlestick patterns give us signals.
Here are some patterns worth following:
🔥 Bullish signals ( The price may rise ):
Morning Star - Three candles indicating a shift from selling to buying near support.
Bullish breakout - the price breaks through the resistance level after several attempts.
Bullish rejection - the price drops to the support level but bounces back strongly.
The three white soldiers - three strong green candles at the support level - bullish momentum.
⚠️ Bearish signals ( the price may drop )
Bearish engulfing - A large red candle engulfs a green candle near the resistance level.
Bearish rejection - the price is attempting to break through the resistance level but fails.
Three red crows - three consecutive red candles near the resistance level - strong bearish trend.
Evening Star - Three candles indicate a shift from buying to selling near the resistance level #Gate July Transparency Report# #BTC ETFs Top $153B in Holdings# #Fed Ends Novel Activities Supervision# .