6) Three Side Up
The Three Inside Up is a multiple candlestick patterns formed after a downtrend
indicating a bullish reversal.
It consists of three candlesticks, the first one is a long bearish candle, and the second
one is a short bullish candle that should be in the range of the first candlestick.
The third candlestick should be a long bullish candlestick that confirms a bullish
reversal.
The first and second candlesticks should belong to the Bullish Harami
candlestick pattern.
Traders can take long positions after the completion of this candlestick pattern.
7) Boolish Harami Pattern
A Bullish Harami is a multiple candlestick chart pattern formed after a
downtrend indicating a Bullish Reversal.
It consists of two candlestick charts, the first candlestick is a long bearish candle
and the second is a short bullish candle that should be in the range of the first
candlestick.
The first bearish candle shows the continuation of the bearish trend and the
second candle shows that the bulls are back in the market.
Traders can take long positions after the completion of this candlestick pattern.
8) Tweezer Bottom
Tweezer Bottom Candlestick Pattern is a Bullish Reversal candlestick pattern
that forms at the end of a downtrend.
It consists of two candlesticks, one is Bearish and the other is Bullish
candlestick.
Both candlesticks make almost or the same low. When the Tweezer Bottom
candlestick pattern is formed the prior trend is a downtrend.
A bearish tweezer candlestick is formed that looks like a continuation of an
ongoing downtrend. The next day, the low of the second day's bullish candle
shows the support level.
Bottom candles with almost identical lows indicate the strength of support and
also indicate that the downtrend may reverse to form an uptrend. Due to this the
bulls come into action and drive the price upwards.
This bullish reversal is confirmed the day after the bullish candle is formed.
9) Inverted Hammer
An inverted hammer is formed at the end of the downtrend and signals a bullish
reversal.
In this candle, the real body is located at the end and there is a long upper
shadow. This is the inverse of the Hammer candlestick pattern.
This pattern is formed when the opening and closing prices are close to each
other and the upper shadow should be more than twice the actual body.
10) Three Inside Up
The Three Outside Up is a multiple candlestick patterns formed after a
downtrend indicating a bullish reversal.
It consists of three candlesticks, the first one is a short bearish candle, and the
second one is a large bullish candle that should cover the first candlestick.
The third candlestick should be a long bullish candlestick that confirms a bullish
reversal.
The first and second candlestick charts should be related to the Bullish
Engulfing candlestick pattern.
Traders can take long positions after the completion of this candlestick pattern.
11) On-Neck Pattern
The on-neck pattern is followed by a downtrend when a long real-bodied bearish
candle is followed by a short real-bodied bullish candle that gaps at the open but
then closes near the close of the previous candle.
The pattern is called a neckline because two closing prices are the same or
nearly identical in two candles, forming a horizontal neckline.
12) Hanging man
A hanging man is a single candlestick pattern that forms at the end of an
uptrend and signals a bearish reversal.
The actual body of this candle is smaller and is positioned on the top with a
lower shadow that should be more than twice that of the actual body. There is
no upper shadow or lower in this candlestick pattern.
The psychology behind the formation of this candle is that the prices opened up
and the sellers pushed the prices down.
Suddenly buyers came into the market and pushed the prices up but failed to do
so as the prices closed below the opening price.
This resulted in the formation of a bearish pattern and indicates that the sellers
have returned to the market and the uptrend may be over.
If a bearish candle is formed the next day traders can enter a short position and
place a stop-loss at the height of the hanging man.
13) Dark cloud cover
Dark Cloud Cover is a multiple candlestick patterns formed after an uptrend
indicating a bearish reversal.
It is formed by two candles, the first candle is a bullish candle which indicates
the continuation of the uptrend.
The second candle is a bearish candle that opens the gap but closes more than
50% of the actual body of the previous candle indicating that the bears are back
in the market and a bearish reversal is about to take place.
If a bearish candle is formed the next day traders can enter a short position and
place a stop-loss at the high of the second candle.
14) Bearish Engulfing
Bearish Engulfing is a multiple candlestick pattern formed after an uptrend that
signals a bearish reversal.
It is formed by two candlesticks, the second candlestick surrounds the first
candlestick. The first candle being a bullish candle indicates the continuation of
the uptrend.
The second candlestick chart is a long bearish candle that completely engulfs
the first candle and shows that the bears are back in the market.
If a bearish candle is formed the next day traders can enter a short position and
place a stop-loss at the high of the second candle.
15) The Evening Star
An evening star is a multiple candlestick patterns formed after an uptrend
indicating a bearish reversal.
It is made up of 3 candlesticks, the first one is a Bullish candle, the second one is Doji
and the third one is a Bearish candle.
The first candle indicates the continuation of the uptrend, the second candle a Doji indicates indecision in the market, and the third bearish candle
indicates that the bears are back in the market and a reversal is about to occur.
The second candle should be completely outside the actual bodies of the first
and third candles.
If a bearish candle is formed the next day, traders can enter a long position and
place a stop-loss at the high of the second candle.
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