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Bullish
Candlestick Patterns
Three
day bullish patterns
Bullish
Sanpei (three parallel
candlesticks / three
soldiers)
Reliability
Rating: high
This
pattern is intented
to singal either
a trend reversal
or the trend continuation.
It consists of three
white candlesticks
of similar increments
and size. It signifies
a continuation of
the trend.
If
the second and third
day candlesticks
open at or above
the midrange of
the previous day,
this signifies that
the trend will continue.
Three
River Morning Doji
Star
Reliability
Rating: High
This pattern start
with a long black
candle (part of
a downtrend), it
is followed by a
gap down doji and
finally on the third
day a white candle
is formed with a
gap up.
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This
pattern shows
a potential
rally. Many
positions
have changed
for seller
to buyer in
this instance.
It is the
third white
candle where
the bullish
signal can
be confirmed.
Be concious
of the gaps
since this
will give
you information
as to the
strength of
the signal.
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Three
River Morning Star
Reliability
Rating: High
The
three river morning
star is the opposite
of the three river
evening star, this
is it's bullish
equivalent.
Complex
Bullish patterns
Bullish
Sanpo (rising three
methods)
Reliability
Rating: high
The
idea behind the
sanpo pattern is
that no price movement
moves straight up
or down, there always
exists some retracement
before the movement
makes a new high
or low. Therefore
this pattern is
to indicate whether
a trader should
"pause"
during the trend
(a short term consolidation
will occur with
a direction opposite
to that of the major
trend).
Bullish
Formation (rising
three methods)
Bullish
Breakaway
Reliability
Rating: Moderate
This is a multiple
day pattern. It
starts with an established
downtrend. On the
second day the stock
gaps down with a
smaller black candle.
On day 3 and 4 the
candles are small
but closing downward.
On the last day
of the pattern a
large white candle
is formed.
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In
this pattern,
day 4 in not
necessary,
an equally
valid pattern
is where days
1,2,3, and
5 occur.
This
only shows
the potential
for a short
term breakout
and does not
give indication
about the
strength of
the breakout. |
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