Basic candlestick patterns: Bullish

To a beginner investor, the sheer variety and complexity of candlestick patterns can seem overwhelming. Nevertheless, the ability to recognize various patterns can give you price action insights that can help you better plan your next moves.
Furthermore, once you can handle basic patterns, you can better predict future prices, trends, and overall market momentum. In other words, you will enjoy a greater possibility of making profitable trades while minimizing your risk.
This lesson will study the most important patterns to familiarize yourself with in a bullish market. Just as you would when picking up a new sport, you first learn the basics so the more complex moves will come naturally to you afterwards.
Before diving into this lesson, learn about candlestick charts and how to read them!
Lea las siguientes lecciones para obtener más conocimientos comerciales para principiantes:

5 bullish candlestick patterns

Let’s go through the simple Japanese candlestick patterns every crypto trader should know. In this lesson, we will concentrate on the bullish patterns.
1. 3 White Soldiers
Characterization: This pattern consists of 3 green candles inside of a down-trend (multiple red candles in a row). These three consecutive candles open and close one after another, with each new candle located higher than the previous one. In addition, the candles have little to no lower wicks (thin lines), meaning the bulls are keeping the price at the top of the range for the time interval.
Indication: 3 White Soldiers is a very bullish signal indicating strong buying pressure. The size of the candles indicates the strength of this pressure — the bigger the candles, the stronger the pressure.
2. Bullish Hammer
Characterization: This pattern is characterized by a long wick below with a short body above, resembling the shape of a hammer. The body doesn’t often have an upper wick at all. While the Bullish Hammer is just a single candle pattern, it’s still important to wait until a change of direction is confirmed when following bullish candles.
Indication: As the Bullish Hammer indicates a trend’s likely bottom, the trend may be reversing, with the price possibly switching paths to the upside. This pattern shows that bears are pushing the price down, only to retake the price action with their buying pressure.
3. Bullish Engulfing
Characterization: This pattern comprises 2 candlesticks occurring at the bottom of a down-trend. The first candle is red and the second is green, with the latter engulfing the former. In traditional finance, there is usually a gap between these 2 candles. However, in crypto, there is usually no gap as crypto markets function 24/7. Therefore, an identical bottom qualifies as a Bullish Engulfing pattern.
Indication:  The bullish engulfing indicates an increase in buying pressure. This might also be a beginning of an uptrend as buyers are driving the price higher. But note that this pattern is not valid in a bull trend. Instead, you can only use it when it appears at the bottom of a trend.
4. Rising Three Methods
Characterization: The Rising 3 Methods candlestick pattern is characterized by 3 short bearish candles inside 2 larger bullish candles.
Indication: This candlestick pattern signals bulls are retaining control of the market despite the selling pressure from bears. Note that this is not the sign of a bottom or reversal but instead, a continuation pattern of a bullish trend.
5. Morning Star
Characterization: The Morning Star pattern consists of 3 candles that form a U-shape — the first candle is a large bearish daily candle at the bottom of a down-trend, the second a small bearish candle, and the last a large green daily candle. Note that the second candle usually has long wicks and a small body, making the pattern a bullish reversal pattern that appears at the bottom of a down-trend.
Indication: This pattern indicates that sellers have lost momentum and buyers have taken control of the price in an up-trend. Therefore, you can expect the current trend to end, with the third candle signaling an up-trend. 
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