6 Candlestick Patterns for Bullish Reversals ๐
Master these patterns to spot bullish reversals and trade with confidence. Always confirm signals for stronger trades.
1. Bullish Hammer ๐ ๏ธ
Shape: Small body, long lower wick.
Location: Bottom of a downtrend.
Signal: Sellers rejected; buyers stepping in.
Confirmation: Next candle must be green.
2. Inverted Hammer ๐
Shape: Small body, long upper wick.
Location: End of a downtrend.
Signal: Buyers attempted a push; next candle confirms reversal.
3. Bullish Engulfing ๐
Shape: Small red candle fully engulfed by a larger green candle.
Location: After a sharp decline.
Signal: Bulls overpower bears.
4. Morning Star ๐
Pattern: 3 candles:
1. Large red candle (downtrend).
2. Small indecision candle.
3. Large green candle (reversal).
Signal: Strong bullish reversal.
5. Piercing Line โก
Pattern: 2 candles:
1. Strong red candle.
2. Green candle opens lower, closes above redโs midpoint.
Signal: Buyers outmuscle sellers.
6. Three White Soldiers๐๏ธ
Pattern: 3 consecutive green candles with small wicks, each opening within the prior candleโs body.
Signal: Powerful bullish momentum.
Key Tips:
โ Confirm with rising volume.
โ Check support/resistance levels for stronger signals.
โ Use RSI or moving averages for extra validation.
๐ก Stronger confirmation = bigger potential move.
#TradingTips #CandlestickPatterns #bullishreversal $XRP
