- Bullish hammer pattern
The hammer candlestick pattern is formed of a short body with a long lower wick and is found at the bottom of a downward trend. This pattern is a strong indication that a reversal is about to occur. It tells you that sellers are giving up, and buyers are taking over.
- Bullish engulfing candlestick
The bullish engulfing pattern is formed of two candlesticks. The first candle is a short red body that is fully engulfed by a bigger green candle.
It is perhaps the most sought after bullish candlestick patterns as it is more confirming of a bullish move in the price of a stock. This pattern shows pure and unquestionable control by the buyers, and almost always results in higher trending prices.
- Bullish morning star candlestick
The morning star candlestick pattern forms at the bottom of a downtrend and is made up of three candles. The first candle is any long and bearish candle, the second one is a small and indecisive, and the third candle is any long and bullish candle.
This pattern indicates that the selling pressure is cooling, and a bull is on the horizon.