Bullish growth can be identified by analyzing candlestick patterns, support and resistance levels, and other indicators. Here are the main signs that indicate a possible bullish growth:
1. Candlestick patterns
Some candlestick combinations often predict growth:
• Bullish Engulfing: A large green candle completely covers the previous red candle.
• Hammer: A small body at the top of the candle with a long lower shadow.
• Three White Soldiers: Three consecutive green candles with long bodies.
2. Support level
When the price touches a certain level multiple times and bounces back up, it may indicate the beginning of a bullish trend.
3. Trading volume
• If the volume increases along with the price rise, it confirms that the market is moving in a bullish direction.
• Increasing volume shows interest from buyers.
4. Breakthrough of resistance level
When the price breaks through an important resistance level, it may signal the beginning of an upward trend.
5. Indicators
• SMA/EMA (moving averages): If the short moving average crosses the long moving average from below, it is a growth signal.
• RSI (Relative Strength Index): If the indicator is below 70 but trending upwards, it indicates bullish strength.
• MACD: When the MACD lines cross from below.
Go for it!!
