Bullish EngulfingTimeframe: 15 Minutes
Reliability: Moderate
A reversal pattern.
During a downtrend, the Bullish Engulfing depicts an opening at a new low and closes at or above the previous candle’s open. This signifies that the downtrend has lost momentum and the bulls may be gaining strength.
Factors increasing the pattern's effectiveness are:
1) The first candlestick has a small real body and the second has a large real body.
2) Pattern appears after protracted or very fast move.
3) Heavy volume on second real body.
4) The second candlestick engulfs more than one real body.
Harami BullishTimeframe: 5 Hours
Reliability: Low
A reversal pattern.
The Harami Bullish Pattern is characterized by a small white real body contained within a prior relatively long black real body. 'Harami' is old Japanese word for pregnant. The long black candlestick is 'the mother' and the small candlestick is 'the baby'.
The smaller the second candlestick, the stronger is the reversal signal.
The shadows of the second candlestick do not have to be contained within the first candle’s body, though it's preferable if they are.
Pattern needs confirmation on the next candlestick.
Morning Doji StarTimeframe: 15 Minutes
Reliability: High
A reversal pattern.
During a downtrend, the market strengthens the bearish trend with a long black candlestick. The second candlestick 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 candlestick.
The Morning Doji Star is a fully realized bullish Doji Star pattern.
It is important reversal signal.
Three Inside UpTimeframe: 15 Minutes
Reliability: High
A reversal pattern.
This pattern is a more reliable addition to the standard Harami pattern.
A bullish Harami pattern occurs in the first two candles.
The third candle is a white candle with a higher close than the second candle and the confirmation of the bullish trend reversal.
