Bullish Patterns

Pattern Index   Bearish Patterns

Abandoned Baby in Downtrend

 

 

In a downtrend, a black candle is followed by a Doji that gaps below it completely. The next day is a white candle that gaps completely above the Doji.

 

Confirmation: Not Required 

 

Breakout (Up)

This is an example of a breakout pattern, included to show that not only traditional candlestick patterns can be searched for.  It scans items that have been trading relatively flat for the previous 20 bars and then have an above-average-length white bar that closes near its high and whose high is higher than the highest high of the previous 20 bars.  It also must have an increasing volume over the last 3 bars.

 

Confirmation: Not Required 
 

Bullish Engulfing

 

 

In a downtrend, a black candle is followed by a white candle that engulfs the body of the first black candle.

 

Confirmation: Required (See Three Outside Up

 

Bullish Harami

 

 

In a downtrend, a long black candle with average volume is followed by a white candle that gaps open and closes within the body of the first day. The white candle has higher volume than the first day.

 

Confirmation: Required (See Three Inside Up

 

Concealing Baby Swallow

 

 

In a downtrend, two black Marubozu candles are followed by a black candle that gaps down, but trades into the body of the second Marubozu. The last day is also black and engulfs the previous day completely.

 

Confirmation: Not Required 

 

Counter Punch Long

This is a contrarian pattern described by Thomas Stridsman in his book 'Trading Systems and Money Management' that is shown by him to be very profitable.  He also includes additional rules on position sizing and stop loss methods.  The pattern has been modified from his version to include confirmation, i.e., the current bar must close up and also close higher than the previous day's close.  The pattern basically looks for stocks that have been trending too long and so are ready for a pullback.  The pattern Stridsman describes can be formulated as 'C<C1 AND C1<C2 AND C<C5 AND C5<C10', which we have modified to 'C1<C2 AND C2<C3 AND C1<C6 AND C6<C11 AND WC AND C>C1' for confirmation.

 

Confirmation: Not Required 
 

Dave Paxton Bullish Star Confirmation

 

 

An example of a user-defined scan from Dave Paxton of Y2Kseminars.com.  It's purpose is to confirm a Bullish (Morning) Star and looks for either of two sequences:

(a) A black candle is followed by a bar that gaps below it, closes at or below the previous close and has a low that is the lowest of the last 5 bars. This bar is followed by a white candle that closes above the open of the starting black bar.

(b) A black candle is followed by a bar that gaps below it, closes at or below the previous close and has the lowest low of the past 5 bars. This bar is followed by a white candle that opens at or above the previous close. The next (last) bar is also white and closes above the open of the original black bar.

 

Confirmation: Not Required 

 

 

Gary Smith Long

This is a breakdown pattern described by Gary Smith of TheStreet.Com in Technical Analysis of Stocks & Commodities Magazine, October 2000. It is included as an example of a non-traditional candlestick pattern.

It scans only items with a current price greater than 20 and an average daily volume greater than 500,000. It then finds items whose current close is higher than the highest close of the previous 5 bars and is also at least one point higher than the previous day's close. Finally the breakout day's volume must be at least 50% greater than the average daily volume over the previous 50 bars.

 

Confirmation: Not Required 
 

Hammer

 

 

In a downtrend, a small body appears near the top of its daily range. Lower shadow should be at least twice as long as the body.

 

Confirmation: Required 

 

Highest High

 

 

Highest-high patterns are included for 25, 50 and 100 day lookback periods.  In editable pattern mode you can define alternate lookback periods. These patterns are most useful as prescans, to filter your list down to the more-promising ones before running other scans on them.

 

Inverted Hammer

 

 

In a downtrend, a black candle is followed by a candle with a small body near the bottom of its range.

 

Confirmation: Required 
 

Kicking Bullish

 

A white marubozu gaps over a black marubozu. The prior trend is not important.

 

Confirmation: Not Required 
 

Mat Hold

 

 

In an uptrend, a long white candle is followed by a black candle that gaps above it. This is followed by two black candles that close successively lower than the first black candle, but do not fall lower than the open of the first long white candle. The last day is a white candle that gaps up and closes above the three black candles preceding it.

 

Confirmation: Not Required 
 

Meeting Lines Downtrend

 

In a downtrend, a long black candle is followed by a long white candle that closes near the close of the previous day.

 

Confirmation: Suggested 
 

Morning Doji Star

 

 

In a downtrend, a long black candle is followed by a Doji that gaps down. This is followed by a white candle that opens above the Doji.

 

Confirmation: Not Required 
 

Morning Star

 

 

In a downtrend,  a long black candle is followed by a day that gaps below it. This is followed by a white candle that gaps above the day before it and closes above the close of the first day.

 

Confirmation: Not Required 
 

Rising Three Methods

 

 

In an uptrend, a long white candle is followed by three black candles that open and close successively lower, but not lower than the open of the first long white candle. The last day is a white candle that closes above the close of the first white candle.

 

Confirmation: Not Required 
 

Side by Side White Lines

 

In an uptrend, two white candles are side by side after gapping above another white candle. The last two candles should be about the same size and open close to each other.

 

Confirmation: Not Required 
 

Tasuki Gap in Downtrend

 

 

In a downtrend, a black candle gaps under a black candle. The next day opens up within the body of the previous black candle and closes a part, but not all, of the gap between the first and second bars.

 

Confirmation: Recommended - NB This pattern is normally rated as Bearish Continuation, but tends to be Bullish for a few bars.

 

Three Inside Up

 

 

In a downtrend, a long black candle with average volume is followed a white candle that gaps open and closes within the body of the first day. The white candle has higher volume than the first. The third day is a white candle that closes above the first, confirming the move.

 

Confirmation: Not Required 

 

Three Outside Up

 

 

In a downtrend, a black candle is followed by a white candle that engulfs the body of the first black candle. This is followed by another white candle that closes above the prior white candle.

 

Confirmation: Not Required 

 

Three White Soldiers

 

After a downtrend, three similar white lines open and close successively higher.

 

Confirmation: Not Required 

Unique Three River Bottom

 

 

In a downtrend, a long black candle is followed by a black Harami that opens above the close of the previous day, but trades lower than the previous day. The next day is a small white candle that opens and closes below the body of the previous day.

 

Confirmation: Suggested