What are the best bullish reversal candles pattern
11/9/2024 03:32am
Bullish reversal candlestick patterns are a powerful tool for traders and investors looking to capitalize on potential market reversals. Here are some of the best bullish reversal candlestick patterns to know:
1. **Three White Soldiers**: This is a strong bullish reversal pattern in a downtrend, consisting of three rising tall white candles with partial overlap, each closing near the high.
2. **Morning Star**: A reliable bullish reversal pattern in a downtrend, it involves a tall black candle followed by a smaller candle, then a gap up to a third white candle that closes above the mid-point of the first candle.
3. **Three Line Strike**: A reliable bullish reversal in a downtrend, it features three falling black candles with lower closes, followed by a tall white candle that opens below or equal to the preceding close and closes above the highest open.
4. **Morning Doji Star**: A reliable bullish reversal in a downtrend, it resembles the Morning Star but with a Doji candle instead of a small candle, and the third white candle closes above the mid-point of the first candle.
5. **Three Outside Up**: A reliable bullish reversal in a downtrend, it involves an engulfing white candle followed by a second white candle with a higher close.
6. **Engulfing**: A reliable bullish reversal in a downtrend, it features a black candle followed by a taller white body that opens below the preceding body and closes above it.
7. **Belt Hold**: A reliable bullish reversal in a downtrend, it's a tall white candle where the open and close are near the high.
These candlestick patterns are considered strong, reliable, or weak in terms of their likelihood of resolving in the indicated direction. Strong patterns are at least 3 times as likely to resolve in the bullish direction, while weak patterns are at least 1.5 times as likely to fail. It's important to note that while these patterns are useful indicators, they should be used in conjunction with other forms of analysis and not relied on solely.