learn forex(Bullish Candlestick Patterns)

Single day bullish patterns
For the most part, daily candlestick reversal patterns are quite subjective with the exception of the "long-legged shadows' Doji" and the "hangman and hammer" which are more commonly used and provide more significance to the trader
Yo-Sen (single white candle)
Reliability Rating: Very Low
The easiest type of signal is the single white candlestick (yo-sen). The longer the body (jittai) the more bullish is the candle.






The Hammer
Reliability Rating: low/moderate
The Hammer, consists of a small body (either color) with a very long lower shadow. This pattern is typically found at the top or bottoms of trends. When the pattern occurs at the top of a up trend it is called a hangman (when it is found at the bottom of a down trend it is called a hammer).

The hammer can be either a black or a white candle.


Two day bullish patterns
Bullish Doji
Reliability Rating: moderate

A bullish Doji starts with a large black candle and then a down gapping Doji. Since on the second day is trades within a small range, it shows many positions have changed and potential for a reversal.
Waiting for the next day to open into a white candle would be prudent to confirm the trend however when the bullish Doji occurs it is worthwhile having a look.



Kirikomi or Kirihaeshi or Piercing Line candlestick pattern
Reliability Rating: Low/moderate
This two day candlestick opens with a black marubozu candlestick and is followed by a kirikomi candlestick ( a kirikomi candlestick is a marubozu candlestick which has opened lower than the previous low and closes above the 50% level, but below the black marubozu's opening price.)

The first candle shows a down. On the second day, the candle opens lower than the previous day's low. This creates an "overnight price gap". Typically the pattern does not weaken further (if it does it's marginal), the market then fills the gap.
By closing above the 50% level, the kirikomi candlestick is considered a stong bullish signal.
Bullish Belt Hold
Reliability Rating: Low

The bullish belt hold pattern is when a white candle occurs in a downtrend with no lower shadow and opens at a new low. This pattern shows a rally from the buyers towards the end of the trading session and gives some indication of a potential trend reversal














Bullish Meeting Lines
Reliability Rating: Moderate
The first candle in this pattern is a black candle, the second day a white candle gaps open with a lower body closes at the same price as the previous black candle. This signifies that the price has hit resistance and a short uptrend should ensue.

Bullish Kicking Pattern
Reliability Rating: High
This pattern consists of a black marabuzo followed by a gapped up white marabuzo.

This pattern is a strong sign that an uptrend will ensue. The major trend is not as important with this pattern as with other patterns and is considered a highly reliable signal















Bullish Engulfing Pattern (Bullish Tsutsumi)
Reliability Rating: Moderate
This pattern composes of "a second day long white candlestick that opens lower and closes higher than the preceding small black body."

The name comes from the idea that the white candle "engulfs" the black candle. This can also be know as a "bullish key reversal" and is a signal to reverse and go bullish.
It is common to see a neutral period follow this pattern since it takes time for the market to react to the large one day movement.
Bullish Tasuki Candlestick
Reliability Rating: Low
The bullish tasuki candlestick comprises of "a long black candlestick that opens within the range of the previous day's long white body, and closes marginally below the previous day's low". (Candlesticks do not have to have long bodies if the two days ranges are about the same size). The second day of the formation, the candle opens lower than the previous close. (This black candle occurs in an otherwise uptrending market). This move can be interpreted as profit taking. At this point, the profit taking during an uptrend where the bullish tasuki occurs.







Upside Gap Tasuki Candlestick
Reliability Rating: Moderate
The upside gap tasuki is "a second day black candle that closes an overnight gap opened on the preious day by a white candle."

The pattern is similar to a common gap. It provides a short term opportunity to sell to fill the gap. The filling of the upside gap is an indication that the uptrend will resume



Three day bullish patterns
Bullish Sanpei (three parallel candlesticks / three soldiers)
Reliability Rating: high
This pattern is intented to singal either a trend reversal or the trend continuation. It consists of three white candlesticks of similar increments and size. It signifies a continuation of the trend.






If the second and third day candlesticks open at or above the midrange of the previous day, this signifies that the trend will continue.

Three River Morning Doji Star
Reliability Rating: High
This pattern start with a long black candle (part of a downtrend), it is followed by a gap down doji and finally on the third day a white candle is formed with a gap up.

This pattern shows a potential rally. Many positions have changed for seller to buyer in this instance. It is the third white candle where the bullish signal can be confirmed. Be concious of the gaps since this will give you information as to the strength of the signal.

Three River Morning Star
Reliability Rating: High
The three river morning star is the opposite of the three river evening star, this is it's bullish equivalent.

Complex Bullish patterns
Bullish Sanpo (rising three methods)
Reliability Rating: high
The idea behind the sanpo pattern is that no price movement moves straight up or down, there always exists some retracement before the movement makes a new high or low. Therefore this pattern is to indicate whether a trader should "pause" during the trend (a short term consolidation will occur with a direction opposite to that of the major trend).
Bullish Formation (rising three methods)

Bullish Breakaway
Reliability Rating: Moderate
This is a multiple day pattern. It starts with an established downtrend. On the second day the stock gaps down with a smaller black candle. On day 3 and 4 the candles are small but closing downward. On the last day of the pattern a large white candle is formed.

In this pattern, day 4 in not necessary, an equally valid pattern is where days 1,2,3, and 5 occur.
This only shows the potential for a short term breakout and does not give indication about the strength of the breakout.