Indicators

Bullish Reversal Candlestick Patterns

Hammer, Morning Star, Three White Soldiers and 12 more -- patterns that signal a potential shift from downtrend to uptrend.

Bullish Reversal Patterns

These 15 patterns appear during or at the end of a downtrend and signal that selling pressure may be fading. They do not guarantee a reversal -- they indicate that the balance between buyers and sellers is shifting. The signal is stronger when it appears at a support level or is confirmed by other indicators.

Mirror pairs
Many bullish reversal patterns have a bearish mirror. The Hammer mirrors the Shooting Star. The Morning Star mirrors the Evening Star. See the bearish reversal patterns for the counterparts.

Single-Candle Patterns

Hammer[1 candle]

Small body near the top of the candle with a long lower shadow (at least twice the body length). Sellers pushed the price down during the candle, but buyers drove it back up near the open. The long lower shadow shows that selling pressure was absorbed.

Inverted Hammer[1 candle]

Small body near the bottom with a long upper shadow. Buyers attempted to push the price up but were partially pushed back. Despite the failed rally, the attempt itself signals that buying interest is emerging after a downtrend.

Dragonfly Doji[1 candle]

Open and close are at (or very near) the high, with a long lower shadow. Similar to a Hammer but with an even smaller body -- effectively a Doji at the top of the range. The long lower shadow shows strong rejection of lower prices.

Takuri (Dragonfly Doji with very long lower shadow)[1 candle]

A Dragonfly Doji variant where the lower shadow is exceptionally long -- at least three times the body. The extreme length of the shadow indicates very aggressive rejection of lower prices. Stronger signal than a standard Dragonfly Doji.

Two-Candle Patterns

Piercing Line[2 candles][penetration]

A bearish candle followed by a bullish candle that opens below the first candle's low but closes above the midpoint of the first candle's body. The second candle 'pierces' into the first candle's territory, showing buyers taking control from sellers.

Matching Low[2 candles]

Two bearish candles that close at the same (or nearly the same) price. The repeated failure to close lower suggests a support level is forming -- sellers could not push the price below this level on two separate attempts.

Homing Pigeon[2 candles]

Two bearish candles where the second is entirely contained within the range of the first (a bearish Harami variant). The shrinking range on the second candle indicates that selling momentum is fading.

Three-Candle Patterns

Morning Star[3 candles][penetration]

A large bearish candle, followed by a small-bodied candle (the 'star') that gaps below, followed by a large bullish candle that closes well into the first candle's body. The star represents indecision, and the third candle confirms the reversal. One of the most recognized bullish reversal patterns.

Morning Doji Star[3 candles][penetration]

Same structure as the Morning Star but the middle candle is a Doji (open equals close). The Doji in the star position represents even stronger indecision than a small-bodied candle, making this a slightly more specific signal.

Three White Soldiers[3 candles]

Three consecutive bullish candles, each closing higher than the previous one, with each opening within the body of the prior candle. This shows sustained buying pressure over three candles -- buyers are in control and pushing the price steadily higher.

Three Stars in the South[3 candles]

Three bearish candles where each successive candle has a smaller body and shorter shadows than the one before. The shrinking size shows that the downtrend is losing energy with each candle -- selling pressure is exhausting itself.

Stick Sandwich[3 candles]

A bearish candle, followed by a bullish candle that closes above the first candle's close, followed by another bearish candle that closes at or near the same level as the first. The matching closes of the first and third candles form a support level.

Unique Three River Bottom[3 candles]

A large bearish candle, followed by a Harami-like second candle with a long lower shadow, followed by a small bullish candle that closes below the second candle's close. The pattern shows exhaustion through progressively weaker selling and a final small bullish candle.

Multi-Candle Patterns

Concealing Baby Swallow[4 candles]

Four bearish candles: the first two are large Marubozus (no shadows), the third gaps down and has an upper shadow reaching into the second candle's body, and the fourth engulfs the third entirely. A rare pattern representing complete exhaustion of selling pressure.

Ladder Bottom[5 candles]

Three or more bearish candles in a staircase pattern (each closing lower), followed by a candle with an upper shadow, followed by a bullish candle that opens above the previous candle's body. The staircase descent ends when buyers finally step in.

Where to Go Next

Bearish Reversal Candlestick Patterns -- the mirror patterns that signal potential downtrend reversals.

Candlestick Patterns: Bidirectional, Continuation & Gap -- patterns like Engulfing and Harami that can signal in either direction.

Candlestick Patterns Overview -- how Simula detects patterns and realistic expectations.