Bullish Candlestick Pattern let you grow your account fast
For almost every bearish signal, there tends to be an equal and opposite bullish candlestick pattern. For example, signals suggesting a bearish Dark Cloud Cover would become a bullish Piercing the Line when reversed and inverted within the proper corresponding trend. To make this even more confusing, some bullish and bearish candlestick pattern signals have very similar names.
Sometimes they have identical names - just different contexts. The difference may simply be the position and prior trend within the chart. So, certain candlestick patterns may look the same but actually have very different meanings. The pattern is most reliable when it is properly positioned on the chart.
Bullish Abandoned Baby (similar as Morning Doji Star) - a rare but very reliable 3 candle pattern reversal in a down trend, the opposite of its bearish namesake. A long black candle is followed by a gap down into a very short or spinning top candle of either color. Another gap (up this time) follows on the 3rd day, forming a long white candle nearly the length of the 1st day.
Morning Doji Star - the opposite of an Evening Doji Star. A long black candle is followed by a gap down in the morning, creating a Doji for day 2. The 3rd day creates a gap up with a white candle, which should be long enough to indicate the breaking of the old trend line (crossing the midpoint of the 1st day).
Three Inside Up - 3 candle reversal pattern. In a downtrend, black then white Harami candles form. The 3rd day opens at the midpoint of the 2nd day and trades up. The 3rd day white candle should be long enough to extend above the 1st day's opening and clearly break the old trend line.
Three Outside Up - 3 candle reversal pattern. In a downtrend, a black then white Engulfing pattern forms. The 3rd day opens at the midpoint of the 2nd day's range and trades up above the previous close. This clearly breaks the prior trend.
Three White Soldiers - a reliable 3 day reversal pattern. In a downtrend, 3 consecutive long white candles form. Each candle opens within the body of the previous day's candle.
Here are some moderately reliable bullish candlestick pattern signals:
Doji Star - A Doji indicates indecision. In a downward trend, a long black candle forms. The 2nd day gaps down and forms the Doji. This odd placement of indecision suggests a reversal as support is evident. The Doji Star is the beginning of the Abandoned Baby or Morning Doji Star without the confirmation.
Dragonfly Doji - A single candlestick formation that is only bullish within context and during a downward trend. Here, the long bottom shadow gives the story. Trading pushes the price substantially lower but recovers completely before the close of the day. This is an intraday reversal signal that may be carried forward into the following day or longer.
Engulfing - A short day is engulfed by the trading range of the second day during a downward trend. This indicates a good chance for a reversal but needs confirmation. It may look the same as a bearish engulfing but the position in the chart is very different.
Hammer - Similar to the bearish Hammer but in a different position and during a downward trend. A single day long shadow is combined with a small body for the upper portion of the candle.
Morning Star - the same as the Morning Doji Star, except with a very short 2nd day instead of a Doji.
Piercing the Line - 2 day reversal pattern. In a downtrend, a long black candle forms. The 2nd day open gaps down substantially but trades up. The white candle that forms closes within but above the midpoint of the 1st day's trading range.
Finally, here are some marginally reliable bullish candlestick pattern signals:
Bullish Belt Hold - Single day pattern. In a downtrend, a long white candle forms with no lower shadow. Any upper shadow is short. This is similar to a white Marubozu (long candle with no shadow).
Bullish Gravestone Doji - The open and close of the day are the same with a long upper shadow. There is very little or no lower shadow. This is only bullish at the bottom of a downtrend.
Bullish Inverted Hammer - A short day during a downtrend that has a long upper shadow. Color does not matter.
Bullish candlestick patterns coupled with a solid momentum indicator are all that is necessary to take advantage of a strong bull move in the markets. It doesn't matter if you're trading a single stock or forex.