Mastering Bullish Reversal Candlestick Patterns: How to Spot the Market Bottom

Introduction

Every trader chases the same golden moment: the exact point where a downtrend ends and a new uptrend begins. While catching the absolute “bottom” is nearly impossible, Bullish Reversal Candlestick Patterns are the closest tool we have to identifying that turning point.

Whether you are trading stocks, forex, or crypto, these patterns act as early warning signals. They tell you that the sellers are exhausted, and the buyers are stepping in to take control.

In this guide, we will break down the most reliable bullish reversal patterns, the psychology behind them, and exactly how to trade them with proper risk management.

What is a Bullish Reversal pattern?

A bullish reversal pattern is a formation of one or more candles that appears at the bottom of a downtrend. It signals that the selling pressure is dissipating and buying momentum is building.

Key Rule: Context is everything. A bullish reversal pattern is only valid if it appears during a downtrend or at a significant support level. If you see these patterns in a sideways market, they often result in false signals.

Pattern NameCandlesComplexityHook for Post
Hammer1Basic“The rejection of lower prices.”
Inverted Hammer1Basic“Buyers are testing the waters.”
Dragonfly Doji1Intermediate“Perfect price rejection.”
Bullish Engulfing2Basic“Buyers completely overwhelm sellers.”
Piercing Line2Intermediate“The 50% recovery rule.”
Tweezer Bottoms2Basic“Support held twice.”
Bullish Harami2Intermediate“The market takes a breath (Pregnant Mother).”
Bullish Harami Cross2Advanced“Intense indecision before a move up.”
Homing Pigeon2Advanced“A trap inside the range.”
Morning Star3Basic“The sun rising on a new trend.”
Morning Doji Star3Intermediate“Explosive reversal signal.”
Three White Soldiers3Intermediate“Marching steadily higher.”
Three Inside Up3Advanced“Confirmed Harami reversal.”
Three Outside Up3Advanced“Confirmed Engulfing reversal.”
Bullish Abandoned Baby3Expert“Rare gap island reversal.”
Bullish Kicker2Expert“Sudden violent momentum shift.”

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