Candlestick Patterns Every Trader Should Kn Six Bullish Candlestick Patterns
Bullish patterns form after a market downtrend and signal a possible price reversal. They indicate that it might be a good time to consider buying.
1. **Hammer**
- The hammer has a small body and a long lower shadow (at least twice the length of the body). It appears at the end of a downtrend. It suggests that despite selling pressure during the day, buyers pushed the price back up. Green hammers are more bullish than red ones. A bullish move the next day confirms the reversal.
2. **Inverted Hammer**
- Similar to the hammer, but the long shadow is above the body. This pattern shows buying pressure followed by some selling, but buyers might soon take control. It's not as strong a signal as the regular hammer.
3. **Bullish Engulfing**
- This pattern involves two candles. The first is a short red candle, followed by a larger green candle that fully "engulfs" the red one. It suggests strong buying pressure that could signal an upward reversal.
