Hammer
Consisting of a short body and a long lower core, the Hammer candlestick pattern is at the bottom of a downtrend.
The gavel shows that despite selling pressure during the day, strong buying pressure ultimately pushed prices higher. Although body colors vary, green hammers indicate a stronger bull market than red hammers.
Inverse hammer
An equally bullish pattern is the inverted hammer. The only difference is that the top wick is longer and the bottom wick is shorter.
Indicates buying pressure followed by selling pressure that has not been strong enough to push market prices down. An inverted hammer suggests that buyers will soon dominate the market.
Bullish engulfing
A bullish entanglement pattern consists of two candlesticks. The first candle is a red short body completely engulfed by a large green candle.
Day 2 opened lower than Day 1, but the bullish market is pushing prices higher, a clear win for buyers.
Piercing line
The Pierce Line is also a two bar pattern consisting of a long red candlestick followed by a long green candlestick.
There is usually a large drop between the closing price of the first candle and the opening price of the green candle. The price has been pushed above the previous day's midpoint, indicating strong buying pressure.
Morning star
A Morning Star candlestick pattern is seen as a hopeful sign in a dark market downtrend. This is his three-legged pattern: a short candlestick between a long red and a long green. Traditionally, 'stars' do not cross longer bodies because there is a gap in the market at both opening and closing prices.
Opening day selling pressure has eased, indicating that a bull market is on the horizon.
Three white soldiers
The pattern of 3 white soldiers occurs over 3 days. It consists of a series of long green (or white) candles with small wicks that open and close gradually higher than the previous day.
This is a very strong bullish signal coming after a downtrend and shows steadily increasing buying pressure.
