Here is an explanation of bullish candlestick patterns.


Three Green Soldiers

This pattern consists of three consecutive green (bullish) candles with progressively higher closes.

It indicates strong buying pressure and is often seen as a signal that a bullish reversal or uptrend may resume.

Morning Star

This is a three candlestick pattern, where the first candle is long and bearish, the second candle is a small candle (can be bullish or bearish) showing indecision, and the third candle is a strong bullish candle.

The morning star indicates a potential reversal from downtrend to uptrend.

Marubozu

A Marubozu is a single long green candle with no wicks or shadows, meaning it opens at the low and closes at the high.

This shows strong bullish sentiment as there was no price rejection, and buyers were in control throughout the entire trading session.

Dragon Doji

A Dragon Doji has a long lower shadow with no upper shadow, indicating that buyers pushed prices back to the open.

When it appears after a downtrend, it suggests a potential reversal to the upside.

Hammer

This pattern has a small body with a long upper shadow and little or no lower shadow.

The inverted hammer appears after a downtrend and suggests a potential reversal, as buyers pushed the price up but were unable to hold.

Bua

The hammer has a small body at the top with a long shadow at the bottom.

This pattern appears in a downtrend and indicates a potential reversal, showing that sellers pushed the price down but buyers were able to push it back up.

Increasing Coverage Model

The bullish engulfing pattern consists of a small bearish candle followed by a large bullish candle that completely "engulfs" the previous candle.

This shows strong buying pressure and suggests a potential bullish reversal.

Morning Doji Star

This pattern is similar to the Morning Star but has a Doji (where the open and close prices are almost the same) as the middle candle.

Morning Doji star suggests indecision followed by a bullish reversal.

Increased penetration model

The bullish piercing pattern consists of a bearish candle followed by a bullish candle that opens lower but closes more than half the height of the previous bearish candle.

It shows buying pressure and can indicate a reversal in a downtrend.

Each of these patterns is used by traders to identify potential bullish reversals, especially when they appear after a downtrend. They can be combined with other indicators to improve the accuracy of trading signals.

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