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Bullish Candlestick Chart Patterns

  Reversal Patterns Continuation Patterns
 

Abandoned Baby Bullish

Pattern: Reversal
Trend: Bullish
Reliability: High

How to Identify it

  • First day is usually a long black day

  • Second day is a doji that gaps in the direction of the previous trend

  • The third day is a white day, gapping in the opposite direction, with no overlapping shadows

What it Means

In a downtrend, the market bolsters the bearish trend with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario definitely shows the potential for a rally, as many positions have been changed. Confirmation of the trend reversal is given by the white third day, and is well defined by the upward gap.


 

Concealing Baby Swallow Bullish

Pattern: Reversal
Trend: Bullish
Reliability: High

How to Identify it

  • The first two days are Black Marubozu days

  • The third day is black day that gaps downward, but trades into the body of the second day

  • The fourth day is a Black Marubozu day that engulfs the third day

What it Means

In a strong downtrend, highlighted by two consecutive Black Marubozu days, a gapping black day trades into the body of the previous day. The last day, another Black Marubozu, shows investors selling off, as it closes at a new low. This provides an opening for the shorts to cover their positions. A bullish reversal should ensue.


 

Kicking Bullish

Pattern: Reversal
Trend: Bullish
Reliability: High

How to Identify it

  • The first day is a Black Marubuzo day

  • The second day is a White Marubuzo day that gaps upward

What it Means

This pattern is a strong sign that the market is headed upward. With this indicator, the previous market direction is not as important as with other indicators.


 

Morning Doji Star Bullish

Pattern: Reversal
Trend: Bullish
Reliability: High

How to Identify it

  • First day is a long black day

  • Second day is a doji that gaps in the direction of the previous trend

  • The third day is a white day

What it Means

In a downtrend, the market bolsters the bearish trend with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows the potential for a rally, as many positions have been changed. Confirmation of the trend reversal is given by the white third day. The Morning Doji Star is a fully realized bullish Doji Star pattern.


 

Morning Star Bullish

Pattern: Reversal
Trend: Bullish
Reliability: High

How to Identify it

  • First day is a long black day

  • Second day is a small day that gaps in the direction of the previous trend

  • The third day is a white day

What it Means

In a downtrend, the market bolsters the bearish trend with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows the potential for a rally, as many positions have been changed. Confirmation of the trend reversal is given by the white third day.


 

Three Outside Up Bullish

Pattern: Reversal
Trend: Bullish
Reliability: High

How to Identify it

  • A bullish Engulfing pattern occurs in the first two days

  • The third day is a white day with a higher close than the second day

What it Means

This pattern is a more reliable addition to the standard Engulfing pattern. The third day is confirmation of the bullish trend reversal.


 

Three Inside Up Bullish

Pattern: Reversal
Trend: Bullish
Reliability: High

How to Identify it

  • A bullish Harami pattern occurs in the first two days

  • The third day is a white day with a higher close than the second day

What it Means

This pattern is a more reliable addition to the standard Harami pattern. The third day is confirmation of the bullish trend reversal.


 

Three White Soldiers Bullish

Pattern: Reversal
Trend: Bullish
Reliability: High

How to Identify it

  • Three long white days occur, each with a higher close than the previous day

  • Each day opens within the body of the previous day and closes near the high of the day

What it Means

In a downtrend three long white days occur with consecutively higher closes. Generally this suggests future market fortitude, as a reversal is in progress that is building on moderate upward steps.


  Rising Sun Bullish

 

Pattern: Reversal
Trend: Bullish
Reliability: High

What it Means


A Bullish Bottom in the Stock.  In a Downtrend a long filled candlestick followed by a clear candlestick that opens below the previous day low.  The Stock then Closes well into the Filled Candlestick's real body.  This can indicate the start of a major uptrend.


 

Breakaway Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • The first day is a long black day

  • The second day is a black day that gaps below the first day

  • The third and fourth days continue to in the direction of the second with lower consecutive closes

  • The fifth day is a long white day that closes into the gap between the first and second days

What it Means

A downtrend sees prices bottoming out and leveling off. The result is a long white day which does not close the gap into the body of the first day. This suggests a short term reversal.


 

Doji Star Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • First day is a long black day

  • Second day is a doji that gaps in the direction of the previous trend

  • The shadows of the doji should not be long

What it Means

In a downtrend, the market bolsters the bears with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows the potential for a rally, as many positions have been changed. Confirmation of the trend reversal would be a higher open on the next trading day.


 

Engulfing Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • A long black day occurs

  • The second day is a white that completely engulfs the real body of the first day

What it Means

Occurring in a downtrend, the Engulfing depicts an opening at a new low, followed by a high buy-in that closes at or above the previous dayís open. This signifies that the downtrend has lost momentum and the bulls may be gaining strength. The Engulfing indicator is also the first two days of the Three Outside patterns.


 

Homing Pigeon Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • The first day is a long black day

  • The second day is a smaller black day that is within the body of the first day

What it Means

In a downtrend, the bears continue to have their way. However, the second day opening and closing within the body of the first day suggests an erosion of the downtrend. Ensuing sell-offs, followed by buy-ins could result in a bullish reversal.


 

Ladder Bottom Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • Three black days occur with consecutively lower opens and closes

  • The fourth day is black with some upper shadow

  • The fifth day is a white day that opens above the body of the fourth day

What it Means

In a considerable downtrend, the shorts may have a chance to sell and take in any profits by the fourth day. This results in a gap upward on the fifth day. If the body of the fifth day is long, or the volume of trading is high, a bullish reversal has likely occurred.


 

Matching Low Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • The first day is a long black day

  • The second day is a black day with a close equivalent to the first dayís close

What it Means

In a downtrend two black days occur with equal closes. This suggests short-term support, and can cause a reversal on the next day of trading.


 

Meeting Lines Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • The first day is a long black day, and has a body that is lower than the previous trend

  • The second day is a long white day, and has a body that is also lower than the previous trend.

  • Both days have identical closes

What it Means

In a downtrend two days open below the previous trend. Even though the second day open low, it rallies to close at the close of the previous day. This typically means a benchmark has be defined by traders, and a reversal is likely.


 

Piercing Line Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • First day is a long black day

  • Second day is a white day with an open below previous days low

  • Second days close is within but above the midpoint of the first days body

What it Means

In a downtrend the market gaps open, but rallies strong to close above the previous days midpoint. This pattern suggests an opportunity for the bulls to enter the market and support the trend reversal. The Piercing Line pattern is the opposite of the Dark Cloud Cover.


 

Stick Sandwich Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • The first day is a black day

  • The second day is a white day that trades above the close of the first day

  • The third day is a black day with a close equivalent to the first day

What it Means

This pattern shows three days consecutive higher opens, but results in an eventual close equal to the first dayís close. This pattern is indicative of the market finding a support price. The overall trend has the potential to reverse, building on the new support price.


 

Three Stars in the South Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • The first day is a long black day with a long lower shadow

  • The second day is a black day similar to the first, but smaller, with a low above the first days low

  • The third day is a small Black Marubozu that lies within the second days trading range

What it Means

In a downtrend three black days occur. However each day is consecutively weaker within the trend, suggesting that some buying is occurring. Small rallies on each day keep the marketís lows from reaching that of the first day. All indications are that the tide is slowly turning toward the bulls.


 

Tri Star Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • A doji occurs on three consecutive trading days

  • The second doji gaps below the first and third

What it Means

In an long downtrend, the market shows signs of a rally as the real bodies have grown progressively smaller. The trend culminates with the bullish Tri Star, identifying that many bearish positions may be reversing


 

Unique Three River Bottom Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Moderate

How to Identify it

  • The first day is a long black day

  • The second is a black Harami day, with a shadow that sets a new low

  • The third day is a short white day which closes below the close of the second day

What it Means

Two black days occur consecutively, with the second dayís body within that of the first day. However, the long lower shadow shows the bearish tide may be reversing. The third day opens lower, reinforcing the indecision of the market and ends in a rally. The bulls should take over.


 

Hammer / Dragonfly Doji Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Low/Moderate

How to Identify it

  • Small real body at the upper end of the trading range

  • Lower shadow at least twice as long as the real body

  • No (or almost no) upper shadow

What it Means

There is a sharp sell off after the market opens during a downtrend. However, by the end of the trading day, the market closes at or near its high for the day. This signifies a weakening of the previous bearish sentiment, especially if the real body is white (the close is higher than the open price). Since the certainty for a Hammer indicator is low, the trend reversal can be confirmed by a higher open and an even higher close on the next trading day. If the open and the close are identical, the indicator is considered a Dragonfly Doji. The Dragonfly Doji has a higher reliability associated with it than a Hammer.


 

Inverted Hammer / Gravestone Doji Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Low/Moderate

How to Identify it

  • Small real body at the lower end of the trading range

  • Upper shadow usually no more than twice as long as the real body

  • No (or almost no) lower shadow

What it Means

As the market opens below the close of the previous day, the bulls rally briefly, but not enough to close above the previous dayís close. As this leaves shorts in a losing position, the Inverted Hammer presents the potential for an upcoming rally. Confirmation of the trend reversal would by an opening above the body of the Inverted Hammer on the next trading day. If the open and the close are identical, the indicator is considered a Gravestone Doji. The Gravestone Doji has a higher reliability associated with it than an Inverted Hammer.


 

Belt Hold Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Low

How to Identify it

  • A white body occurs in a downtrend with no lower shadow

What it Means

In a downtrend, a white body occurs with an open that is also the low for the day. This may signify a rally for the bulls.


 

Harami Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Low

How to Identify it

  • A long black day occurs

  • The second day is a white day where the real body is completely engulfed by the real body of the first

What it Means

After a long black day at the low end of a downtrend, a white candlestick opens higher than the previous dayís close. The price is driven up, as many shorts are covered, which encourages further buy-ins. The Harami indicator should be confirmed with the next trading dayís candlestick following the reversal trend. The Harami pattern is also the first two days of the Three Inside patterns.


 

Harami Cross Bullish

Pattern: Reversal
Trend: Bullish
Reliability: Low

How to Identify it

  • A long black day occurs

  • The second day is a doji within the real body of the previous day

What it Means

After a long black day at the low end of a downtrend, the market opens higher than the previous dayís close and closes at the open. The Harami Cross indicator is more definite than the basic Harami indcator, and signifies a reversal for the bulls.


      

Continuation Patterns


 

Rising Three Methods Bullish

Pattern: Continuation
Trend: Bullish
Reliability: High

How to Identify it

  • The first day is a long white day

  • The second, third, and fourth days have small real bodies and follow a brief downtrend pattern, but stay within the range of the first day

  • The fifth day is a long white day that closes above the close of the first day

What it Means

In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in strong to close at a new high. This small downtrend, in between two long white days, is consistent with investors taking a break. The upward trend should continue.


 

Side-by-Side White Lines Bullish

Pattern: Continuation
Trend: Bullish
Reliability: High

How to Identify it

  • The first day is a white day

  • The second day is a white day that gaps up

  • The third day is a white day of about the same body length and close as the second day

What it Means

In an uptrend three white days occur with an upward gap between the first two and a similar body length and close for the last two. This suggests a definite building of the uptrend.


 

Mat Hold Bullish

Pattern: Continuation
Trend: Bullish
Reliability: High

How to Identify it

  • The first day is a long white day

  • The second day gaps up and is a black day

  • The second, third, and fourth days have small real bodies and follow a brief downtrend pattern, but stay within the range of the first day

  • The fifth day is a long white day that closes above the close of the first day

What it Means

The Mat Hold pattern is similar to the Rising Three Methods pattern. In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in strong to close at a new high. It appears that attempts to reverse the trend occurred, but failed. The upward trend should continue.


 

Upside Gap Three Methods Bullish

Pattern: Continuation
Trend: Bullish
Reliability: Moderate

How to Identify it

  • Two long white days occur with a gap between them

  • The third day is a black day that fills the gap between the first two days

What it Means

An uptrend is followed by two long white days with a gap upward between them. The third day is a black day, but one that closes the gap between the first two. This should be seen as support for the upward trend, and may be caused by temporary profit taking.


 

Upside Tasuki Gap Bullish

Pattern: Continuation
Trend: Bullish
Reliability: Moderate

How to Identify it

  • The first two days are white days with an opening gap

  • The third day is a black day that opens within the body of the second day and closes within the gap of the first two days

What it Means

In an uptrend a white day occurs, followed by another white day that gaps up. A black day ensues, and is likely the result of temporary profit taking. The trend should continue to follow the direction of the upward gap.


 

Separating Lines Bullish

Pattern: Continuation
Trend: Bullish
Reliability: Low

How to Identify it

  • The first day is a black day

  • The second day is a white day that has the same opening price as the first day

What it Means

In an uptrend a long black day occurs. The second day, however, picks up where the previous dayís trading left off and rallies to close higher. This suggests that the uptrend should remain intact.


 

Three-Line Strike Bullish

Pattern: Continuation
Trend: Bullish
Reliability: Low

How to Identify it

  • Three long white days occur with consecutively higher closes

  • The fourth day opens higher and closes below the open of the first day

What it Means

The black day drives prices back to where they were at the start of the pattern. If the bullish trend was strong before the pattern, then it should continue.

 

 


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MasterDATA - the only source for Index and ETF composite / breadth historical data, charts and reports - Home


www.masterdata.com
support@masterdata.com


SEO by MasterMedia

Disclaimer: This material is for your private information. We are not soliciting any action based upon it. Opinions expressed are present opinions only. The material is based upon information considered reliable, but we do not represent that is accurate or complete, and it should not be relied upon as such. We, or persons involved in the preparation or issuance of this material may, from time to time, have long or short positions in, and buy or sell the securities or options of companies mentioned herein.

 

 


MasterDATA - the only source for Index and ETF composite / breadth historical data, charts and reports - Home


www.masterdata.com
support@masterdata.com


SEO by MasterMedia

Disclaimer: This material is for your private information. We are not soliciting any action based upon it. Opinions expressed are present opinions only. The material is based upon information considered reliable, but we do not represent that is accurate or complete, and it should not be relied upon as such. We, or persons involved in the preparation or issuance of this material may, from time to time, have long or short positions in, and buy or sell the securities or options of companies mentioned herein.