The candle patterns that really MATTER - my no-filter guide for beginners

Let's get to the point! After losing thousands in the crypto market by ignoring clear signals, I decided to share what really works with Japanese candles, not the garbage they sell you in 500€ trading courses.

Japanese candlesticks are the secret language of the market. Each candle tells a story about the battle between buyers and sellers, and trust me, learning to read them can be the difference between eating instant noodles or enjoying a good steak.

1. Bullish Envelope - My favorite!

This pattern is BRUTAL. When you see a small red candle completely "swallowed" by a large green one, it's as if the market is shouting at you "BUY NOW, IDIOT!". Buyers have mercilessly crushed sellers.

The University of Michigan says it has a 65% success rate, but in my personal experience in crypto, this number rises to 75% in strong supports. The "experts" often ignore the context in which this pattern appears, big mistake!

2. Bullish Harami - The Confuser

This pattern with a green candle inside the range of a large red one has saved me from several disasters. It indicates that sellers are losing strength.

Bulkowski says it has a 54% success rate. Honestly, it's mediocre if you use it alone, but combined with low volume, it's quite reliable. Most platforms won't show you this correlation.

3. Lower clamp - The double hit

Two candles with identical lows are like a shout of "enough already!" from buyers. I have seen it work spectacularly in Bitcoin during several cycles.

With 61% effectiveness according to Bulkowski, it is quite respectable. But beware, not all are the same - those that form after prolonged drops are pure gold.

4. Morning Star - The Resurrection

This three-candle pattern is precious. A large red candle, an indecisive doji, and then a powerful green one. It's like witnessing the story of a rebirth.

It has a 65% success rate according to studies, but the reality is that many platforms misidentify it. A real gap between the candles is needed for it to be valid, something that many beginners ignore.

5. Morning star Doji - The super pattern

Similar to the previous one but with a doji in the middle, it is more powerful. When I see it in cryptocurrencies after large drops, I usually enter without hesitation.

68% effectiveness according to Dr. Chen, but in my experience it is even higher on daily timeframes. On minute charts it is practically useless, something else that the "gurus" don't tell you.

6. Abandoned Bull Baby - The Dramatic

This pattern with its gaps is pure drama. It means that the sellers abandoned ship and the buyers came in full force.

66% effectiveness according to Aronson. I have seen it work wonderfully on altcoins after sell-off panics.

7. Three out up - The Crusher

This pattern shows how buyers simply crush sellers in three consecutive moves. It is powerful.

70% effectiveness according to Park and Irwin. Quite high, but rarely appears in low-cap crypto charts where the volume is irregular.

8. Three from the inside out - The strategic

A pattern of three candles where buyers are strategically gaining ground.

64% effectiveness according to Lo, Mamaysky, and Wang. Respectable, but needs confirmation with increasing volume, something many ignore.

9. Bullish Kicker - The Explosive

This pattern with its bullish gap is like an explosion of buying power. When I see it, I usually enter quickly.

68% success rate according to CXO Advisory. In my experience, it works better after positive news about the project.

10. Drilling Line - The Durable

This pattern shows how buyers break through the bearish resistance. It is a sign of hope.

60% effectiveness according to TAST. It's decent, but you need to confirm with other indicators. Alone, I wouldn't fully trust it.

Do you know what? These patterns are tools, not magic. The crypto market is wild and manipulated. A pattern can work perfectly until a whale decides otherwise.

The best traders not only look at patterns - they integrate volume, supports/resistances, and the market context. And above all, they control their emotions!