Candlestick patterns in forex
Pin bar, engulfing and inside bar explained with context-first thinking.
Candles show behavior
Candlestick patterns summarize buying and selling pressure. They are more useful at important zones than in the middle of random price action.
Pin bar
A pin bar has a long wick and small body. It can show rejection, especially near support or resistance.
Engulfing candle
An engulfing candle covers the previous candle body. It can show a shift in pressure, but context matters.
Inside bar
An inside bar sits within the range of the previous candle. It can show compression before a breakout.
Do not trade patterns alone
Ask: where did the pattern appear, what is the trend, where is invalidation, and does the risk reward make sense?
Content is for reference only, not investment advice. Forex trading carries high risk.
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