1. ๐ ๏ธ Bullish Hammer
- A small body with a long lower wick.
- Appears at the bottom of a downtrend.
- Indicates that sellers pushed prices down, but buyers regained control.
- Confirmation needed with a green candle after it. 2. ๐ Inverted Hammer
- Similar to a hammer, but with a long upper wick instead of a lower wick.
- Shows buyers attempting to push the price up after a downtrend.
- Requires confirmation with the next bullish candle.
3. ๐ Bullish Engulfing
- A small red candle followed by a large green candle that completely engulfs the previous one.
- Signals strong buyer momentum.
- More reliable if it appears after a strong downtrend.
4. ๐ Morning Star
- A three-candle pattern:
1๏ธโฃ A long red candle.
2๏ธโฃ A small-bodied candle (red or green) showing market hesitation.
3๏ธโฃ A strong green candle confirming the reversal.
- Indicates a shift from bearish to bullish sentiment.
5. โก Piercing Line
- A two-candle pattern where:
1๏ธโฃ The first candle is a strong red body.
2๏ธโฃ The second green candle opens lower but closes more than halfway up the first red candle.
- Shows buying strength and a potential reversal.
6. ๐๏ธ Three White Soldiers
- Three consecutive long green candles with small wicks.
- Each candle opens within the previous oneโs body and closes higher.
- Strong bullish reversal pattern.
๐ How to Use These Patterns?
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- Always confirm with volume, support levels, and additional indicators like RSI or moving averages.
- The stronger the confirmation (e.g., large bullish candle, increased volume), the more reliable the reversal.
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