Here is an explanation of the bullish candlestick patterns.
Three Green Soldiers
This pattern consists of three consecutive long green (bullish) candles with progressively higher closes.
It indicates strong buying pressure and is typically seen as a signal that a bullish reversal or uptrend may continue.
Morning Star
This is a three-candle pattern where the first candle is long and bearish, the second is a small candle (which can be bullish or bearish) showing indecision, and the third is a strong bullish candle.
The Morning Star indicates a potential reversal from a downtrend to an uptrend.
Marubozu
A Marubozu is a single long green candle with no wicks or shadows, meaning it opens at the low and closes at the high.
This shows strong bullish sentiment as there were no price rejections, and buyers were in control throughout the session.
Dragonfly Doji
A Dragonfly Doji has a long lower shadow with no upper shadow, indicating that buyers pushed the price back up to the opening level.
When found after a downtrend, it suggests a potential reversal to the upside.
Inverted Hammer
This pattern has a small body with a long upper shadow and little to no lower shadow.
The Inverted Hammer appears after a downtrend and suggests a potential reversal, as buyers have pushed the price up but were unable to hold it.
Hammer
The Hammer has a small body at the top with a long lower shadow.
This pattern appears in a downtrend and indicates a potential reversal, showing that sellers pushed the price down but buyers were able to push it back up.
Bullish Engulfing
The Bullish Engulfing pattern consists of a small bearish candle followed by a large bullish candle that completely "engulfs" the previous one.
This shows strong buying pressure and suggests a potential bullish reversal.
Morning Doji Star
This pattern is similar to the Morning Star but has a Doji (where the open and close are almost the same) as the middle candle.
The Morning Doji Star suggests indecision followed by a bullish reversal.
Bullish Piercing
The Bullish Piercing pattern has a bearish candle followed by a bullish candle that opens lower but closes more than halfway up the previous bearish candle.
It shows buying pressure and can indicate a reversal in a downtrend.
Each of these patterns is used by traders to identify potential bullish reversals, especially when they appear after a downtrend. They can be combined with other indicators to improve the accuracy of trade signals