Understanding Bullish Candlestick Patterns
Bullish candlestick patterns
Bullish candlestick patterns help to identify uptrends or trend reversals to uptrends.
Morning star pattern
The stock must have been in a definite downtrend before this signal occurs.
This is a 3-star pattern. The first day of the signal must be a long red body. The second day must be a day of indecision (star shape). The third day should be a long green candle reaching at least halfway into the body of the first day's red candle.
Hammer candle
The stock must have been in a definite downtrend before the signal occurs.
On the the day of the hammer candle, there is strong selling, often beginning at the opening. As the day goes on, however, the market recovers and closes near the unchanged mark, or in may even be higher. The lower shadow must be at least twice the size of the body. There should be no or a very small upper shadow. The colour of the body does not matter, but a green body would be more positive than a red body.
The day after the hammer candle, there should be continued buying.
Bullish engulfing candle
A bullish engulfing candle happens after a significant downtrend. Tthe engulfing candle must engulf the body of the previous day's candle, but need not surround the shadow.
The second day of the signal should be a green candle opening below the close of the previous day and closing above the open of the previous day's red candle.
Inverse hammer candle
The inverse hammer only occurs after a definite downtrend, the stock is most probability already oversold. Therefore, the inverse hammer signifies that traders who have held long positions in the stock, most of whom are now showing large losses, often are quick to dump their shares by selling into strength. The body can be green or red.
Three white soldiers patterns
The three white soldiers pattern is a 3-day pattern, most effective when it occurs after a substained downtrend and a period of subsequent consolidation. When a particular stock posts a downtrend followed by sideways movement, the appearance at that point of three white soldiers signals that higher prices are likely ahead. The first of the three white soldiers is a reversal candle. It either ends a downtrend or signifies that the stock Is moving out of a period of consolidation after a decline. The candle on day two may open within the body of day one. The pattern is valid as long as the candle of day two opens in the upper half of day one's ra nge. By the end of day two, the stock should close near its high leaving a very small or no upper shadow. The same pattern is then repeated on day three.
Use with technical indicators
A significant increase in volume supports a bullish trend reversal. To confirm an uptrend and reversal, we can use technical indicators with the candles and patterns. In the the figure above, the uptrend continued until the SIA stock was severely overbought with RSI at 92.6. The MACD, being a lagging indicator, confirmed the trend reversal to bearish a few days later with a bearish crossover.
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73392386 : thanks for that information what about those of us who want to buy and hold
73392386 : I am trying to learn how to do trailing stop have any tips thanks in advance
只做科技股 73392386: A stop loss can be set on a purchase ticket
bullrider_21OP 73392386: np. For those who buy and hold, you don't need to know technical analysis.
bullrider_21OP 73392386: For Trailing Limit,
When you place your order, set Order type: Trailing Stop
Trailing Type: Amount
Trailing Amount: Your amount
For Trailing Stop Limit (For eg, sell when price drops 10%),
Set Order type: Trailing Stop Limit
Trailing Type: Ratio
Trailing Ratio: 10%
Your order will be auto-placed, when the trailing limit or trailing stop limit is met.
LEng LEng : Thanks for sharing @bullrider_21 is useful
Panda Paw : Stop saying MULN was $275k a share, u sound like an AI bot
, are you? 1 Share worth an Airplane 
Sure buddy 
bullrider_21OP Panda Paw: Who are you talking about?
bullrider_21OP LEng LEng: Glad to share. @LEng LEng