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As you all know, our main goal to identify the trend, so that we can take trade and make maximum profit. In the stock market, there are three types of trend, upside,downside and flat. Everyone knows this thing right, but one thing they don’t have is proper knowledge of candlestick pattern. Because trading patterns are identified with the help of candle in candlestick chart analysis. Traders will get practical approach which will help them to take the trade.
In this article we are going to understand about the bullish candlestick pattern which is definetely going to help you to take trade.
Also, click on the link to learn about the bearish candlestick pattern
What is Bullish Candlestick Pattern ?
Bullish candlestick patterns are the patterns which are made of single candle or more than two candle which is based on the trading pattern repeated by the traders. These patterns occurs when prices drift lower. And give a signal that market can go up from here.
Advantages of Bullish Candlestick pattern
- It give you signal to buy a stock.
- You can identify your risk.
- Easily predict the trend
Now we are going to know the best 6 bullish candlestick pattern. This will definitely help you in taking trade. firstly you can go for backward testing after that you can go for forward testing.
1. Three White Soldiers
IThe three white soldiers is a very strong bullish signal that occurs after a downtrend. It consists of consecutive long green candles with small wicks, which open and close price progressively higher than the previous day. This pattern have high reliabilty.
The bullish engulfing pattern is formed of two candlesticks. The first candle is a short red candle .Red candle body is completely engulfed by a bigger green candle.
This pattern occurs in downtrend and it has very high reliability.
3. Inverted Hammer
The inverted hammer candlestick has a small body in the lower end and a long upper wick. It usually forms during a downtrend. It indicates a buying pressure, and give the signal to buy. It has very high reliability for bullish reversal.
Hammer is formed on one candlestick pattern. It usually forms in the downtrend. It has a low body in the upper end and has a long lower wick. It looks like a hammer and it has high reliability of bullish reversal.
5. The Morning Star
The morning star is formed of 3 candlestick pattern that usually forms in a downtrend. The first candle is bearish, second candle has a small body, and the third candle is bullish and closes beyond the midpoint of the first candle. It has very high reliability of bullish reversal.
6. Piercing Line
Piercing line pattern made of two candlestick pattern. It usually form in the downtrend and give the signal to buy. There is usually a gap down between the first candlestick’s closing price, and the green candlestick’s opening. Green candle more than than the 50 percent of red candle. It has high reliability of bullish reversal.
You can learn more about bullish candlestick patterns from this given link.
I hope this article helps you to know bullish candlestick pattern. I always recommend first to take a backward and forward testing and then take a trade. Have a happy investing.