In technical analysis, there are several types of Japanese candlesticks that indicate the possibility of an upward trend. The most famous of these candlesticks that indicate a reversal of the trend to an upward trend are:
1. Hammer candle
It appears at the end of a downtrend.
Its shape is characterized by a small body and a very long lower shadow compared to the body, with a short or non-existent upper shadow.
It indicates the price's refusal to fall further and the presence of purchasing power.
2. Inverted Hammer Candlestick
It appears at the end of a downtrend.
Its shape is similar to a hammer, but with a long upper shadow and a short or non-existent lower shadow.
It indicates a possible trend reversal to an upward trend.
3. Bullish Engulfing Candle
It consists of two candles.
The second candle (bullish) completely covers the body of the first candle (bearish).
It indicates that buyers are entering strongly and controlling the market.
4. Morning Star Candle
It consists of 3 candles:
1. Large bearish candle.
2. A small candle (doji or small body) indicates indecision.
3. A large bullish candle confirms the reversal.
Indicates a change in trend to upward.
5. Doji candle
It is not always a bullish signal, but if it appears at the end of a downtrend and is accompanied by other signals, it may be an indication of a trend reversal.
6. Three White Soldiers candlestick
It consists of three consecutive bullish candles with long bodies and short shadows.
Indicates strong upward momentum.
comments:
Using Japanese candlesticks requires additional confirmation, such as being at important support levels or within a specific price pattern.
The overall market context and the time frame used should be taken into account.