BULLISH CANDLESTICK PATTERN EXPLAINED
- In this article, we will discuss about the Bullish Candlestick Pattern.
- You can increase your knowledge about technical analysis by reading this article.
• There are three types of Candlestick Patterns :
- [A] Bullish Candlestick Pattern
- [B] Bearish Candlestick Pattern
- [C] Continuation Candlestick Pattern
BULLISH CANDLESTICK PATTERNS
1) Hammer
- Hammer candle has a long lower wick (double of the real body) and small body at the top with a very small or no upper wick.
- This candle indicates the buyers are stronger than the sellers.
- Hammer candle work well , if it formed at support level after downside rally.
- The Hammer candle is a signal of a Bullish Reversal.
2) Dragonfly Doji
- Dragonfly Doji is similar to Hammer Candle , but the difference is that Dragonfly Doji has no any body.
- Open and Close is almost same.
- This candle indicates the buyers are very strong compared to the sellers.
- Dragonfly Doji is the most bullish candlestick.
- Dragonfly Doji work similarly to Hammer Candle.
3) Green (White) Marubozu
- Green Marubozu has a long green body with no upper or lower wick.
- Open,Low is almost the same and Close,High is almost the same.
- If this candle formed after a downside rally , Market has a high probability of turning upside.
- Very strong Bullish Signal.
4) Inverted Hammer
- The Inverted Hammer has a long upper wick and small body at the bottom, with very small or no lower wick.
- Inverted Hammer is the inverse of a Hammer candle.
- If an Inverted Hammer formed after a downside rally , it signal of a bullish reversal.
5) Bullish Engulfing
- A Bullish Engulfing candlestick is the combination of two candles , that is formed after a downtrend indicates a bullish reversal.
- In this candlestick , the second Candle is bullish candle (green candle) , which engulfs the first bearish candle (red candle).
- It indicates the buyers are stronger than the sellers.
6) Bullish Harami
- Bullish Harami candlestick is the combination of two candles , that is formed after downtrend, indicates a bullish reversal.
- In this candlestick, the second candle is a small bullish candle that is located inside the first bearish candle.
- Bullish Harami candlestick also known as the Inside Candle.
7) Piercing Candlestick
- A Piercing candlestick is the combination of two candles , that is formed after downtrend, indicates a bullish reversal.
- In this candlestick , the first candle is bearish (red) and the second candle is bullish (green).
- The second candle (green) open gap down below the first candle (red) , but close above the 50% of real body of the first candle , which indicates buyers are strong.
8) Tweezer Bottom
- A Tweezer Bottom candlestick is the combination of two candles , that is formed after a downtrend, indicates a bullish reversal.
- In this candlestick , the first candle is bearish (red) and the second candle is bullish (green).
- Both candles make almost the same low , which indicates buyers are strong.
9) The Morning Star
- The Morning Star candlestick is the combination of three candles , that is formed after a downtrend, indicates a bullish reversal.
- In this candlestick , the first candle is bearish (red), the second candle is a Doji (any colour) and the third candle is bullish(green).
- The body of the Doji candle should be completely out of the real bodies of the first and third candles.
10) Three White (Green) Soldiers
- Three white Soldiers candlestick is the combination of three candles , that is formed after a downtrend, indicates a bullish reversal.
- In this candlestick , all three candles are bullish (green) and do not have any wicks and are open within the real body of previous candle.
11) Three Inside Up
- Three Inside Up candlestick is the combination of three candles , that is formed after a downtrend, indicates a bullish reversal.
- In this candlestick , the first candle is bearish (red) and the second candle is small bullish (green) candle that is located inside the first bearish (red) candle and the third candle is a strong bullish candle.
- Similar to Bullish Harami.
12) Three Outside Up
- Three Outside Up candlestick is the combination of three candles , that is formed after a downtrend, indicates a bullish reversal.
- In this candlestick , the first candle is small bearish(red) and the second candle is bullish (green) , which engulfs the first candle and the third candle is also bullish candle.
- Similar to Bullish Engulfing.
IMPORTANT
• All Bullish Candlestick work well, if it formed at Support level after downside rally.
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