Candlesticks Formations - Bullish Reversal Patterns
If Candlesticksare trending down and these next candlestick formations come in then a possble trend reversal may take place and the day trader prepares to exit their short positions or enter and go long.
HIGH PROBABILITY BULLISH REVERSAL PATTERNS:
Piercing Line, Kicking, Abandoned Baby, Morning Doji Star, Morning Star,
Three Inside Up, Three Outside Up, Three Red Soldiers, Concealing Baby Swallow
 3 Green Soldiers - Candlesticks Reversal Pattern
Three Green soldiers is a strong reversal sign to the bullish trend. In fact many would consider this as an obliteration of the downward trend.
****** HIGH BULLISH REVERSAL PATTERN ******
Kicking- Candlesticks Reversal Pattern
Kicking is when a green candlestick
with no or very little shadows appears after a gap upwards.
****** HIGH BULLISH REVERSAL PATTERN ******
3 Inside Up - Candlesticks Reversal Pattern
3 inside up is another name for the Confirmed Bullish Harami.
****** HIGH BULLISH REVERSAL PATTERN ******
3 Outside Up - Candlesticks Reversal Pattern
3 Outside Up is another name for After an engulfing green candlestick.
****** HIGH BULLISH REVERSAL PATTERN ******
Piercing Line Pattern - Candlesticks Reversal Pattern
The Piercing Pattern is shown by a green candlestick which opens below the previous red body and closes above (pierces above) the 50 percent mark of the previous red candle.
****** HIGH BULLISH REVERSAL PATTERN ******
Abandonded Baby - Candlesticks Reversal Pattern
An abandonded baby is a bullish reversal sign named bacause it is untouched by other candlesticks.
****** HIGH BULLISH REVERSAL PATTERN ******
Morning Star - Candlesticks Reversal Pattern
An abandonded baby is a bullish reversal sign named bacause it is untouched by other candlesticks.
****** HIGH BULLISH REVERSAL PATTERN ******
Morning Star Doji - Candlesticks Reversal Pattern
An abandonded baby is a bullish reversal sign named bacause it is untouched by other candlesticks.
****** HIGH BULLISH REVERSAL PATTERN ******
Trading Psychology
1. Each candlestick pattern shows an indication of possible trend reversal. Learn to recognize these candlestick patterns and formations so that you don't get caught out or miss out when day trading.
2. Long green candlesticks indicate that the Bulls are in control and buyers are far greater than sellers.
3. Long Red candlesticks indicate that the Bears are in control and sellers are far greater than buyers.
4. Small candlesticks indicate that neither Bulls or bears are in control. There is not much buying or selling.
5. A long lower shadow indicates that the Bears (sellers) were greater but the bears (buyers ) came back to overcome the selling pressure.
6. A long upper shadow indicates that the Bulls (buyers) were greater but the bears (sellers) made an impressive comeback.
7. Long upper and lower shadows on the same candlestick indicates that both Bears and Bulls had control but they were even in the end.
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