Which candle is best for day trading?

The Hammer and inverted Hammer are two of the most reliable candlestick patterns for day trading. These patterns indicate potential market reversals. The Hammer forms at the bottom of a downtrend, with a long lower wick and a small real body. Conversely, the inverted Hammer appears at the top of an uptrend, featuring a long upper wick and a small real body.

The Hanging Man pattern is similar to the Hammer but signals a potential bearish reversal. It occurs at the end of an uptrend, with a long lower wick and a small real body that gaps up from the previous candle. This pattern indicates that sellers are taking control of the market.

The Shooting Star pattern is the bearish counterpart of the inverted Hammer. It forms at the top of an uptrend, featuring a long upper wick and a small real body. This pattern suggests that buyers have lost momentum, and a market reversal may be imminent.

The Evening and Morning Star patterns are two-candlestick formations that signal potential reversals. The Evening Star forms at the top of an uptrend, consisting of a large real body, a small star-like candlestick, and another large real body in the opposite direction. The Morning Star forms at the bottom of a downtrend, with a similar structure but in reverse.

Bullish and bearish engulfing patterns are powerful candlestick formations that indicate strong momentum in the market. The bullish engulfing pattern occurs at the bottom of a downtrend, with a large white candlestick completely engulfing the previous black candlestick. The bearish engulfing pattern forms at the top of an uptrend, with a large black candlestick engulfing the previous white candlestick.