If you're learning technical analysis, you need to know that types of Japanese candlesticks are very important for understanding market movement. Reversal candles in particular are the ones that help you see when the trend might reverse.

Let me explain to you the most common types of reversal candles that appear on the chart:

First, the Hammer - this appears when the market is going down. It features a very small body and a long lower wick, which means the price rejected continuing to fall. Usually, after it, prices tend to rise a little.

Second, the Shooting Star - exactly the opposite of the Hammer. It appears in an uptrend, with a small body and a long upper wick, indicating the price rejected further upward movement. Afterwards, prices often go down.

The Doji candle is a bit strange - it has a very small body but long wicks on both ends. This reflects market indecision, meaning everyone is hesitant, and it often precedes a trend reversal.

The last one, the Engulfing Candle - very strong. If it appears in a downtrend and is bullish, it means a full bullish candle has engulfed the previous candle, which is a strong sign of a new upward move. The opposite is true if it’s bearish.

Honestly, the importance of reversal candlestick types is that they give you clear entry and exit points. Especially if they appear at strong support or resistance levels, their reliability increases a lot.

But don’t forget that you shouldn’t rely solely on reversal candles. You need to confirm the signal with other indicators like trading volume, RSI, or even subsequent candles that confirm the new trend. This way, you can be more confident in your move in the market.