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2. Candlestick Engulfing Pattern Bearish or bullish engulfing, both display significant reversal charactersticks. Whenever spotted on a daily chart or even a 1 hr chart, it indicates that market is about to reverse. They are pretty reliable forex patterns 3. Morning or Evening Stars fomation.

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When this happens, a trader should know in which direction the market will move. If there is a rate hike, the currency will appreciate, which means that traders will buy. If there is a cut, traders will probably sell and buy currencies with higher interest.

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