Candlestick patterns are a core part of technical analysis.
They help traders spot potential reversals or continuations — often before the majority notices.
Here are five powerful bullish reversal patterns every trader should master.
1. Hammer 🛠
📍 Appearance: After a sustained downtrend
📈 Indication: Potential bullish reversal
✅ Confirmation: Wait for a strong bullish candle after the hammer
🔍 Characteristics: Small body + long lower shadow, little to no upper shadow
2. Bullish Engulfing 🟢
📍 Appearance: At the bottom of a dip
📈 Indication: Strong buying pressure overtaking sellers
✅ Confirmation: Green candle fully engulfs the previous red candle
🔍 Characteristics: Small red candle → large green candle
3. Dragonfly Doji 🪰
📍 Appearance: After a decline
📈 Indication: Rejection of lower prices, possible reversal
✅ Confirmation: Confirm with higher-than-average volume
🔍 Characteristics: Flat top, long lower shadow
4. Piercing Line 💥
📍 Appearance: At the bottom of a downtrend
📈 Indication: Bulls regaining control
✅ Confirmation: Green candle closes above 50% of the preceding red candle
🔍 Characteristics: Red candle → green candle closing halfway up or more
5. Tweezer Bottom ✌️
📍 Appearance: At or near strong support
📈 Indication: Double rejection of lower prices
✅ Confirmation: Best when combined with RSI or demand zone analysis
🔍 Characteristics: Two consecutive candles with identical or nearly identical lows
💡 Pro Tip:
Mastering these patterns can help you filter out false signals, enter trades with confidence, and align with market sentiment before the crowd reacts.