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Bottom Reversals

The following rules are applicable for a bottom reversal:
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A bottom reversal is only possible AFTER a downtrend. Most of the patterns need a confirmation. A confirmation must appear one up to three candles after the pattern. This confirmation is a big white candle, high volume with the new up-move, a rising window, or breaking a resistance. A reversal pattern during price reaction must be considered a continuation pattern. For the best result, you must combine candlestick patterns with Western technical analysis. An unconfirmed pattern has no further meaning.

Engulfing Bullish

In a downtrend, there is a small black body, not a doji, followed and enclosed by a bigger white body. Though not necessary, it is better when the white body also encloses the short shadows of the black candle. An exceptional occurrence at the end of a downtrend is a white body followed by a bigger black body; this is called a last engulfing pattern.
Piercing Line

In a downtrend, a bigger black body is followed by a white body with a lower opening price than the low of the black body; however, the white candle closes above the midpoint of the black body.

Bullish Counterattack

A bullish counterattack is a bigger black candle in a downtrend, followed by a bigger white candle. Closing prices of both candles are at the same price level. Confirmation is needed.

followed by one or more small black or white bodies below the closing price of the first black body. A bullish harami cross pattern needs confirmation. Blackwhite and black-black (called homing pigeon) combinations are the most common. Morning Star A bigger black body. This is a stronger reversal signal than a morning star. The white candle that follows ideally lays 50% or more within the first black body and has a rising window with the previous doji body. A bottom reversal signal after confirmation. Bullish Abandoned Baby . Bullish Harami Cross In a downtrend.Bullish Harami In a downtrend. followed by one or more doji’s with a falling window below the closing price of the first black body. The white candle that follows ideally lays 50% or more within the first black body and has a rising window with the previous candle body. Morning Doji Star A bigger black body. a white (but preferably a black) body is followed by a small white or black candle that is completely covered by the first candle body. a white (but preferably a black) body is followed by a doji that is completely covered by the first candle body.

Size and color are not important. Tweezer Bottoms Two or more candles making lows together. at minimum.An abandoned baby pattern is a morning doji star with a window between the doji and the black and white candle. Preferably. most of the time. twice the size of the body. It only has a very small shadow or no shadow below. It has a long shadow above that is. resulting in an island reversal. This is a reversal pattern that. is part of another pattern. but they also can be combinations of any of the other prices. Inverted Hammer An inverted hammer is a small black ( but preferably a small white) body near the low price. The island can have more candles and more than one doji. A bottom reversal only after confirmation. It has a long shadow below with a minimum size of twice the height of the body. the lows are made with low prices. Search the Internet Search Hammer A hammer is a small white or black body close to the high price. Fry Pan Bottom . A dragonfly doji is a specific version of the hammer pattern. A gravestone doji is a specific version of the inverted hammer. A white body is more positive. There is a very small shadow or no shadow at the top. Confirmation is required.

Many times. there will be a small reaction before the new uptrend is resumed. . there is a bigger black candle on the first day of this pattern. The third day opens lower and forms a small white body with a closing price below the closing price of the second day. After this bottoming pattern. confirmation is required. the price usually makes an up-move with a rising window. close to the high of the bar.The fry pan bottom is formed with a number of smaller candles. A fry pan bottom is a powerful reversal pattern. The second day starts with a higher opening price. Three White Soldiers Three white candlesticks with each bar having higher closing prices. Opening prices of candles two and three are within the body of the previous candles. A rare bottom reversal pattern. Three River Bottom During a downtrend. then makes a new lower low and closes the day below the opening price.