Bullish Reversal Candlestick Patterns

Bullish Japanese Candlestick reversal patterns are displayed below from strongest to weakest. Reversals are patterns that tend to resolve in the opposite direction to the prevailing trend:

• Bullish reversals are likely to resolve in an up-trend; and
• Bearish reversals are likely to resolve in a down-trend.

Candlestick pattern strength is described as either strong, reliable, or weak.

• Strong candlestick patterns are at least 3 times as likely to resolve in the indicated direction.
• Reliable patterns at least 2 times as likely.
• Weak patterns are (only) at least 1.5 times as likely to resolve in the indicated direction, meaning that 2 out of 5 patterns are likely to fail.

Three White Soldiers

Strong bullish reversal in a downtrend

Three rising tall green candles, with partial overlap and each close near the high.

Morning Star

Strong bullish reversal in a downtrend

Tall red candle followed by a lower small candle, either green or red, with a gap between the two bodies. Then a gap up leads to a third, tall green candle that closes above mid-point on the body of the first candle.

Three Line Strike

Reliable bullish reversal in a downtrend

Three falling red candles, with lower closes, followed by a tall green candle that opens below (or equal to) the preceding close and closes above the highest open.

Morning Doji Star

Reliable bullish reversal in a downtrend

Tall red candle followed by a lower Doji candle (where the open and close are nearly equal) with a gap between the two bodies. Then a gap up to the body of a third, green candle that closes above mid-point on the body of the first candle.

Three Outside Up

Reliable bullish reversal in a downtrend

An Engulfing green candle followed by a second candle with a higher close.

Engulfing

Reliable bullish reversal in a downtrend

Red candle followed by a taller green body that opens below the preceding body and closes above it.

Belt Hold

Reliable bullish reversal in a downtrend

Tall green candle where the open gaps down from the previous close and is the low for the day. There is no lower shadow and the close is near the high.

Abandoned Baby

Reliable bullish reversal in a downtrend

Tall red candle followed by a lower Doji candle with a gap between the two bodies. Then a long green candle that opens above the body of the second candle.

Three Inside Up

Weak bullish reversal in a downtrend

A Harami formation (a tall red candle is followed by a smaller green candle where the body is enclosed within the body of the first candle) is followed by a green candle that closes above the body of the first candle.

Piercing Line

Weak bullish reversal in a downtrend

A tall red candle immediately followed by a tall green candle that closes above mid-point on the preceding body.

Breakaway

Weak bullish reversal in a downtrend

A tall red candle gaps down to a shorter red candle. This is followed by two short candles, each with a lower close.
The sequence culminates with a tall green fifth candle that closes above the highs (shadows) of the preceding three candles.

Downside Gap Three Methods

Weak bullish reversal in a downtrend

The Downside Gap Three Methods formation contains three key elements.

It starts with a tall red candle that gaps down to second red candle. This is followed by a long green candle that closes decisively within the body of the first candle.

Hammer

Weak bullish reversal in a downtrend

A hammer is a single candlestick pattern that appears during a downtrend, characterized by a short body and a long tail or lower shadow.

The body can be either green or red and is located near the top of the trading range. The tail (or lower shadow) must be at least twice the length of the body, signalling support.

If a hammer candle appears after an uptrend it forms part of the hanging man formation and is traditionally considered a bearish revesal signal.