Bullish Hammer
The Bullish Hammer is a single-candlestick reversal pattern
that forms at the bottom of a downtrend. It signals that selling pressure
is weakening and buyers are beginning to regain control.
Recognition Criteria
- A strong prevailing downtrend
- A small real body near the top of the trading range
- A long lower shadow at least twice the size of the body
- No or very small upper shadow
Trader’s Behavior
After a sharp sell-off, prices recover strongly during the session,
indicating that sellers are losing momentum. This shift creates doubt
among short sellers and improves the outlook for bullish participants.
Buy & Stop Loss Levels
Buy Confirmation: A breakout above the top of the Hammer’s body.
Stop Loss: Below the previous low. If prices close below this
level or make two consecutive lower lows, the stop loss is triggered.
Bullish Belt Hold
The Bullish Belt Hold is a strong single-candle reversal
pattern that appears during a downtrend. It reflects a sudden shift
from bearish to bullish sentiment within a single trading session.
Recognition Criteria
- A dominant downtrend
- Price opens at the day’s low with a gap down
- A long white body closing near the day’s high
- Little to no lower shadow (Opening Marubozu)
Trader’s Behavior
The market initially opens weak, reinforcing bearish expectations.
However, strong buying pressure quickly reverses sentiment, forcing
short sellers to cover positions and often triggering a bullish trend
reversal.
Buy & Stop Loss Levels
Buy Confirmation: A move above the closing price of the Belt Hold.
Stop Loss: Below the most recent low. If prices close or
make two consecutive lows below this level without a bearish signal,
the stop loss is activated.
Bullish Engulfing
The Bullish Engulfing pattern is a strong two-candlestick
reversal signal that appears during a downtrend. It occurs when a large
white candle completely engulfs the body of the previous black candle,
indicating a decisive shift in market sentiment.
Recognition Criteria
- A dominant downtrend
- A black candle on the first day
- A white candle on the second day
- The white body fully engulfs the previous black body
Trader’s Behavior
After continued selling pressure, bearish momentum begins to weaken.
Although prices open lower on the second day, buyers step in aggressively.
Selling pressure is overwhelmed by buying demand, and the market closes
higher, signaling a potential trend reversal.
Buy & Stop Loss Levels
Buy Confirmation: A breakout above the final closing price.
Stop Loss: Below the previous low. If prices close or form
two consecutive lows below this level without a bearish pattern, the
stop loss is activated.
Bullish Harami
The Bullish Harami is a two-candlestick reversal pattern
that signals a slowdown in bearish momentum. It consists of a small white
candle contained entirely within the body of a preceding large black candle,
resembling a “pregnant” formation.
Recognition Criteria
- A strong prevailing downtrend
- A long black candle on the first day
- A small white candle on the second day
- The white body is fully contained within the black body
Trader’s Behavior
Strong selling pressure dominates initially, reinforcing bearish sentiment.
On the following day, prices stabilize and rise slightly as short sellers
begin covering positions. The reduced candle size indicates weakening
bearish strength and the potential for a trend reversal.
Buy & Stop Loss Levels
Buy Confirmation: A move above the last close or the midpoint
of the first black candle, whichever is higher.
Stop Loss: Below the lowest of the previous two lows.
If prices close or form two consecutive lows below this level without
a bearish signal, the stop loss is triggered.
Bullish Harami Cross
The Bullish Harami Cross is a powerful bullish reversal pattern
and is considered more significant than the standard Bullish Harami. It consists
of a black candle followed by a Doji that forms entirely within the prior candle’s
body, highlighting strong market indecision after a decline.
Recognition Criteria
- A dominant downtrend
- A black candle on the first day
- A Doji on the second day
- The Doji lies completely within the first candle’s body
Trader’s Behavior
Bearish sentiment dominates initially, reinforced by the first day’s black candle.
On the second day, prices open higher or near the prior close, but the market fails
to commit in either direction, resulting in a Doji. This growing indecision,
combined with short-covering activity, increases the probability of a bullish
trend reversal.
Buy & Stop Loss Levels
Buy Confirmation:
• If the first black body is short, confirmation is above its body top.
• Otherwise, confirmation is above the last close or the midpoint of the first
black body, whichever is higher.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is triggered.
Bullish Piercing Line
The Bullish Piercing Line is a two-candlestick bottom reversal
pattern that appears after a downtrend. It signals a strong shift in momentum
when buyers regain control after an aggressive bearish opening.
Recognition Criteria
- A strong prevailing downtrend
- A black candle on the first day
- The second day opens with a gap down
- The second day closes more than halfway into the first candle’s body
- The second day does not close above the first candle’s body
Trader’s Behavior
The first black candle confirms bearish dominance. The next day opens sharply
lower, reinforcing negative sentiment. However, buyers step in aggressively,
pushing prices higher and closing well above the midpoint of the prior candle.
Bears lose confidence, and bulls begin positioning for a potential trend reversal.
Buy & Stop Loss Levels
Buy Confirmation: A move above the final closing price.
Stop Loss: Below the previous low. If prices close or form two
consecutive lows below this level without a bearish pattern, the stop loss
is activated.
Bullish Doji Star
The Bullish Doji Star is a trend reversal pattern that appears
during a downtrend. It consists of a strong black candlestick followed by a
Doji that gaps downward, signaling growing indecision and a weakening bearish
trend.
Recognition Criteria
- A strong prevailing downtrend
- A black candlestick on the first day
- A Doji on the second day that gaps downward
Trader’s Behavior
The first black candle reinforces bearish dominance. The next day opens lower,
but trading remains within a narrow range, closing at or near the opening price.
The formation of a Doji reflects balance between buyers and sellers, suggesting
that bearish momentum is fading and a reversal may be approaching.
Buy & Stop Loss Levels
Buy Confirmation: A move above the midpoint between the Doji
and the preceding black candlestick.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is triggered.
Bullish Meeting Line
The Bullish Meeting Line is a two-candlestick reversal pattern
that forms during a downtrend. It resembles the Bullish Piercing Line but is
slightly weaker, as the second candle closes at or near the same level as the
first candle.
Recognition Criteria
- A strong downward trend
- A black candlestick on the first day
- A white candlestick on the second day
- Both days close at the same or nearly the same price level
Trader’s Behavior
The initial black candle confirms bearish strength. The following day opens
sharply lower, boosting bearish confidence. However, bulls respond aggressively,
pushing prices upward and closing near the prior day’s close. This standoff
signals a break in the downtrend and hints at a potential reversal.
Buy & Stop Loss Levels
Buy Confirmation: A breakout above the final closing price.
Stop Loss: Below the previous low. If prices close or form two
consecutive lows below this level without a bearish pattern, the stop loss
is activated.
Bullish Homing Pigeon
The Bullish Homing Pigeon is a two-candlestick reversal pattern
that appears during a downtrend. It consists of two black candlesticks, where
the first candle has a larger body that completely contains the smaller black
body of the second candle, indicating weakening selling pressure.
Recognition Criteria
- A strong prevailing downtrend
- A black candlestick on the first day
- A smaller black candlestick on the second day
- The second candle’s body is fully contained within the first
Trader’s Behavior
The first black candle reflects aggressive selling and reinforces bearish
sentiment. On the following day, a smaller black body forms, showing reduced
selling strength. This loss of momentum among sellers signals a potential
trend reversal as bearish conviction weakens.
Buy & Stop Loss Levels
Buy Confirmation: A move above the last close or the midpoint
of the first black candle, whichever is higher.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is triggered.
Bullish Matching Low
The Bullish Matching Low is a bottom reversal pattern that
occurs during a downtrend when two consecutive black candlesticks close at
the same price level, signaling the formation of strong support.
Recognition Criteria
- A dominant downward trend
- A black candlestick on the first day
- A second black candlestick on the next day
- Both candlesticks close at the same or nearly the same level
Trader’s Behavior
The first black candle confirms continued selling pressure. On the second day,
although prices trade higher intraday, they close at the same level as the
previous day. This failure to push prices lower highlights strong support and
causes concern among bearish traders, increasing the likelihood of a reversal.
Buy & Stop Loss Levels
Buy Confirmation: A move above the midpoint of the first black
candle.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is activated.
Bullish Kicking
The Bullish Kicking pattern is a powerful bullish reversal signal
that appears during a downtrend. It consists of a black Marubozu followed by a
white Marubozu, with a noticeable gap between the two candlesticks, indicating
a sharp and decisive shift in market sentiment.
Recognition Criteria
- A strong prevailing downtrend
- A black Marubozu or strong black candlestick on the first day
- A white Marubozu or strong white candlestick on the second day
- A body gap with the second day opening higher
Trader’s Behavior
The first black Marubozu reinforces bearish dominance. On the following day,
the market opens sharply higher, creating a gap that forces short sellers to
reassess their positions. Strong buying pressure drives prices higher throughout
the session, forming a white Marubozu and signaling a decisive bullish reversal.
Buy & Stop Loss Levels
Buy Confirmation: A move above the final closing price.
Stop Loss: Below the previous low. If prices close or form two
consecutive lows below this level without a bearish pattern, the stop loss
is triggered.
Bullish One White Soldier
The Bullish One White Soldier pattern appears during a downtrend
and signals the early stages of a bullish reversal. It consists of a black
candlestick followed by a white candlestick that opens and closes above the
previous day’s close.
Recognition Criteria
- A dominant downward trend
- A black candlestick on the first day
- A white candlestick on the second day
- The second day opens above the previous close and closes higher than its open
Trader’s Behavior
The initial black candle strengthens bearish confidence. On the next day, prices
open higher, unsettling short sellers. Buying pressure continues throughout the
session, pushing the close above the prior day’s opening price. If follow-through
buying occurs, this pattern can mark the beginning of a meaningful trend reversal.
Buy & Stop Loss Levels
Buy Confirmation: A breakout above the final closing price.
Stop Loss: Below the previous low. If prices close or form two
consecutive lows below this level without a bearish pattern, the stop loss
is activated.
Bullish Morning Star
The Bullish Morning Star is a powerful three-candlestick bottom
reversal pattern that appears after a downtrend. It signals a gradual but
meaningful transition from bearish control to bullish dominance.
Recognition Criteria
- A strong prevailing downtrend
- A black candlestick on the first day
- A short-bodied candlestick on the second day that gaps down
- A white candlestick on the third day
Trader’s Behavior
The first black candle confirms bearish strength. The second day gaps down,
showing continued selling pressure, but the small body reflects uncertainty.
On the third day, strong buying pushes prices higher, closing deep into the
first day’s black candle. This shift signals that bulls have regained control
and a notable trend reversal is underway.
Buy & Stop Loss Levels
Buy Confirmation: A breakout above the final closing price.
Stop Loss: Below the lower of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is triggered.
Bullish Morning Doji Star
The Bullish Morning Doji Star is an enhanced version of the
Morning Star pattern. It replaces the second day’s small candle with a Doji,
indicating even stronger market indecision before a bullish reversal.
Recognition Criteria
- A strong downward trend
- A black candlestick on the first day
- A Doji on the second day that gaps downward
- A white candlestick on the third day
Trader’s Behavior
The first black candle confirms ongoing bearish momentum. The Doji on the
second day gaps down, showing bears are still attempting to push prices lower,
but the narrow trading range highlights uncertainty. On the third day, strong
bullish activity drives prices higher into the first day’s body, confirming a
significant shift in trend.
Buy & Stop Loss Levels
Buy Confirmation: A move above the final closing price.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is activated.
Bullish Abandoned Baby
The Bullish Abandoned Baby is a rare and highly significant
three-candlestick bottom reversal pattern. It is similar to the Bullish Morning
Doji Star, with the key difference being that the Doji is completely isolated,
with gaps on both sides including shadows.
Recognition Criteria
- A strong prevailing downtrend
- A long black candlestick on the first day
- A Doji on the second day whose shadows gap below the first day
- A white candlestick on the third day that gaps upward without overlapping shadows
Trader’s Behavior
The first black candle confirms continued bearish dominance. The Doji that follows
gaps away completely, reflecting extreme uncertainty and hesitation among traders.
On the third day, strong bullish activity lifts prices sharply, recovering much of
the previous losses and signaling a decisive reversal in market sentiment.
Buy & Stop Loss Levels
Buy Confirmation: A breakout above the final closing price.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is triggered.
Bullish Tri Star
The Bullish Tri Star is an extremely rare reversal pattern
composed of three consecutive Doji. When it appears after a prolonged downtrend,
it signals severe market indecision and the exhaustion of bearish momentum.
Recognition Criteria
- A strong and extended downtrend
- Three Doji candlesticks appearing consecutively
- The second Doji gaps below the first and third
Trader’s Behavior
After a prolonged decline, selling pressure begins to lose strength. The first
Doji raises early warning signs. The second Doji, which gaps lower, highlights
extreme uncertainty. The third Doji confirms the loss of bearish control, signaling
a potential end to the downtrend and an impending bullish reversal.
Buy & Stop Loss Levels
Buy Confirmation: A move above the final closing price.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is activated.
Bullish Downside Gap Two Rabbits
The Bullish Downside Gap Two Rabbits is a three-candlestick bullish
reversal pattern that appears after a strong downtrend. The pattern is identified
by a downside gap followed by two consecutive white candlesticks, suggesting that
bearish momentum is weakening.
Recognition Criteria
- A strong prevailing downtrend
- A normal or long black candlestick on the first day
- A short white candlestick that gaps down on the second day
- A second white candlestick on the third day closing above the prior close but below the first day’s open
Trader’s Behavior
The first black candle reinforces bearish dominance. The second day opens lower
but manages to form a small white candle, showing early buying interest without
threatening bears. On the third day, prices rebound more strongly, closing higher
than the previous session. The appearance of two consecutive white candles raises
doubts about the sustainability of the downtrend.
Buy & Stop Loss Levels
Buy Confirmation: A breakout above the final closing price.
Stop Loss: Below the previous low. If prices close or form two
consecutive lows below this level without a bearish pattern, the stop loss
is triggered.
Bullish Unique Three River Bottom
The Bullish Unique Three River Bottom is a three-candlestick
reversal pattern that shares similarities with the Morning Star. It signals
diminishing bearish strength after the market tests new lows.
Recognition Criteria
- A strong prevailing downtrend
- A black candlestick on the first day
- A second black candlestick that opens higher, makes a new low, and closes near the high
- A small white candlestick on the third day closing below the second day’s close
Trader’s Behavior
The first black candle confirms the bearish trend. The second day initially opens
higher but sellers regain control, pushing prices to new lows before the market
recovers near the opening price. The third day forms a small white candle, signaling
that sellers are losing conviction and a potential reversal is developing.
Buy & Stop Loss Levels
Buy Confirmation: A move above the final closing price.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is activated.
Bullish Three White Soldiers
The Bullish Three White Soldiers is a strong and reliable
reversal pattern that appears after a prolonged downtrend. It consists of
three consecutive rising white candlesticks, forming a staircase-like
advance that signals sustained buying pressure.
Recognition Criteria
- A dominant downtrend
- Three normal or long white candlesticks in succession
- Each candle opens within the previous candle’s body
- Each candle closes progressively higher than the previous day
Trader’s Behavior
After an extended decline, the first white candle signals the initial
bullish attempt. The next two sessions confirm continued strength as prices
close higher each day. This steady advance forces bears to cover short
positions and marks a decisive trend reversal.
Buy & Stop Loss Levels
Buy Confirmation: A breakout above the final closing price.
Stop Loss: Below the previous low. If prices close or form two
consecutive lows below this level without a bearish pattern, the stop loss
is triggered.
Bullish Deliberation Block
The Bullish Deliberation Block is a subtle bottom reversal
pattern that forms after a downtrend. It consists of three black candlesticks
with progressively shrinking bodies, signaling weakening bearish momentum.
Recognition Criteria
- A strong downward trend
- A black candlestick on the first day
- A second black candlestick opening within the first and closing lower
- A short black candlestick, spinning top, or Doji on the third day with a gap down
Trader’s Behavior
The first two black candles confirm bearish control and attract additional
sellers. On the third day, the candle’s smaller body and gap-down opening
indicate hesitation and indecision. The shrinking ranges reveal that bearish
strength is weakening, setting the stage for a potential bullish reversal.
Buy & Stop Loss Levels
Buy Confirmation: A move above the midpoint between the prior
close and the bottom of the second day’s body.
Stop Loss: Below the lowest of the previous two lows. If prices
close or form two consecutive lows below this level without a bearish pattern,
the stop loss is activated.
