Two
day bullish patterns
Bullish
Doji
Reliability
Rating: moderate
 |
A
bullish
Doji starts
with a large
black candle
and then
a down gapping
Doji. Since
on the second
day is trades
within a
small range,
it shows
many positions
have changed
and potential
for a reversal.
Waiting
for the
next day
to open
into a white
candle would
be prudent
to confirm
the trend
however
when the
bullish
Doji occurs
it is worthwhile
having a
look.
|
Kirikomi
or Kirihaeshi
or Piercing Line
candlestick pattern
Reliability
Rating: Low/moderate
This
two day candlestick
opens with a black
marubozu candlestick
and is followed
by a kirikomi
candlestick (
a kirikomi candlestick
is a marubozu
candlestick which
has opened lower
than the previous
low and closes
above the 50%
level, but below
the black marubozu's
opening price.)
 |
The
first candle
shows a
down. On
the second
day, the
candle opens
lower than
the previous
day's low.
This creates
an "overnight
price gap".
Typically
the pattern
does not
weaken further
(if it does
it's marginal),
the market
then fills
the gap.
By
closing
above the
50% level,
the kirikomi
candlestick
is considered
a stong
bullish
signal. |
Bullish
Belt Hold
Reliability
Rating: Low
 |
The
bullish belt
hold pattern
is when a
white candle
occurs in
a downtrend
with no lower
shadow and
opens at a
new low. This
pattern shows
a rally from
the buyers
towards the
end of the
trading session
and gives
some indication
of a potential
trend reversal.
|
Bullish
Meeting Lines
Reliability
Rating: Moderate
The
first candle in
this pattern is
a black candle,
the second day
a white candle
gaps open with
a lower body closes
at the same price
as the previous
black candle.
This signifies
that the price
has hit resistance
and a short uptrend
should ensue.
Bullish
Kicking Pattern
Reliability
Rating: High
This
pattern consists
of a black marabuzo
followed by a
gapped up white
marabuzo.
 |
This
pattern is
a strong sign
that an uptrend
will ensue.
The major
trend is not
as important
with this
pattern as
with other
patterns and
is considered
a highly reliable
signal |
Bullish
Engulfing Pattern
(Bullish Tsutsumi)
Reliability
Rating: Moderate
This
pattern composes
of "a
second day long
white candlestick
that opens lower
and closes higher
than the preceding
small black body."
 |
The
name comes
from the
idea that
the white
candle "engulfs"
the black
candle.
This can
also be
know as
a "bullish
key reversal"
and is a
signal to
reverse
and go bullish.
It
is common
to see a
neutral
period follow
this pattern
since it
takes time
for the
market to
react to
the large
one day
movement.
|
Bullish
Tasuki Candlestick
Reliability
Rating: Low
The
bullish tasuki
candlestick comprises
of "a
long black candlestick
that opens within
the range of the
previous day's
long white body,
and closes marginally
below the previous
day's low".
(Candlesticks
do not have to
have long bodies
if the two days
ranges are about
the same size).
The second day
of the formation,
the candle opens
lower than the
previous close.
(This black candle
occurs in an otherwise
uptrending market).
This move can
be interpreted
as profit taking.
At this point,
the profit taking
during an uptrend
where the bullish
tasuki occurs.
Upside
Gap Tasuki Candlestick
Reliability
Rating: Moderate
The
upside gap tasuki
is "a
second day black
candle that closes
an overnight gap
opened on the
preious day by
a white candle."
 |
The
pattern is
similar to
a common gap.
It provides
a short term
opportunity
to sell to
fill the gap.
The filling
of the upside
gap is an
indication
that the uptrend
will resume. |
