Reversal candlestick patterns can assist in identifying market changes. Nevertheless, it is advisable to verify with additional indicators such as volume to ensure you remain aligned with the market.
Bullish reversals indicate possible growth; however, it is essential to establish stop losses to manage your risk prudently.
Bearish reversals suggest potential price declines, thus employing tools like RSI or support/resistance levels can help eliminate misleading signals.
What Is a Reversal Candle Pattern?
A reversal candlestick pattern is characterized as either a bullish or bearish reversal pattern, which can be formed by one or more candles. These patterns can be utilized to detect a potential reversal in asset prices.
Bullish vs. Bearish Reversal Candle Patterns
Reversal candlestick patterns can manifest as either bullish or bearish. Bullish reversal patterns arise when the market is experiencing a downtrend and subsequently forms a bullish reversal pattern. Conversely, bearish reversal patterns develop when the market is in an uptrend and creates a bearish reversal pattern.
Complete List of All Reversal Candlestick Patterns:
Bullish Reversal Candlestick Patterns
Hammer
Inverse Hammer
Bullish Engulfing
Piercing Line
Morning Star
Morning Doji Star
Three White Soldiers
Dragonfly Doji
Tweezer Bottoms
Abandoned Baby Bottom
Bullish Harami
Bullish Harami Cross
Bullish Kicker
Bullish Meeting Lines
Three Inside Up
Three Outside Up
Bullish Stick Sandwich
Bullish Breakaway
Bullish Belt Hold
Ladder Bottom
Bearish Reversal Candlestick Patterns
Hanging Man
Shooting Star
Bearish Engulfing
Evening Star
Evening Doji Star
Three Black Crows
Gravestone Doji
Dark Cloud Cover
Tweezer Tops
Abandoned Baby Top
Bearish Harami
Bearish Harami Cross
Bearish Kicker
Bearish Meeting Lines
Three Inside Down
Three Outside Down
Bearish Stick Sandwich
Bearish Breakaway
Bearish Belt Hold
Upside Gap Two Crows
