🎯 Learn to differentiate the most important bullish signals in trading
I aim to improve your technical analysis and help you enter the market.
Next, I will explain the 4 key bullish patterns that can signal the start of an upward movement. 📈
📌 1. Double Bottom
It is one of the easiest reversal patterns to detect.
It appears when the price forms two equal lows, creating a “W” shape.
Confirmation occurs when the price breaks the resistance line between the two peaks.
👉 Clear signal that buyers are regaining control.
📌 2. Inverted Head and Shoulders (IHS)
This pattern indicates a change from a bearish to a bullish trend.
It is formed with three valleys: the middle one (the “head”) being lower than the other two (“shoulders”).
When it breaks the “neckline,” a strong upward impulse usually follows.
👉 It is very reliable if accompanied by increasing volume.
📌 3. Bullish Engulfing
A very powerful candlestick pattern.
It appears when a large green candle completely engulfs the previous red candle.
👉 Signal that the bulls (buyers) are taking control right after a decline.
📌 4. Ascending Triangle
Continuation pattern. If it has been rising, it may be a pause before the next impulse.
It is formed with a flat resistance and an upward sloping support line.
👉 The breakout to the upside usually comes with volume and can lead to an explosive rise.
💡 My advice, do not rely solely on one pattern.
Always confirm with volume, supports, RSI, or other tools.
Later, I will also explain about bearish patterns! 📉
Share if you found it helpful. 🫂