Bullish Reversal Patterns

Bullish Hammer
Indication: Bullish reversal
Reliability: Low
Description: During a downtrend, there is a sell
off after the candle starts. However, the candle
closes at or near its high. This signifies a
weakening of the previous bearish sentiment.
The longer the lower shadow, the smaller the upper shadow, and
the smaller the real body, the more significant the pattern is.
White real body is more bullish than black body.

Inverted Hammer
Indication: Bullish reversal
Reliability: Low
Description: During a downtrend, the open is
lower, then it trades higher, but closes near its
open, therefore looking like an inverted lollipop.
It needs bullish verification on the next
candlestick.

Bullish Engulfing
Indication: Bullish reversal
Reliability: Medium
Description: 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.

Bullish Harami
Indication: Bullish reversal
Reliability: Low
Description: 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.