Technical Patterns 🔥
Technical analysis could be a useful tool to determine how crowd psychology affects the stock price over time.
A few key technical patterns to look for reversal patterns is as follows:
- morning & evening star
- dragonfly doji
- gravestone doji
- engulfing patterns... etc
Doji is a common reversal pattern because when the momentum is depleted there are not a lot of people who are willing to buy and sell, and that causes the price to stall and stay in a range. Also, generally speaking, candlestick patterns work better on a weekly level than on a daily level but keep in mind they are not an exact science. Use it wisely!