Technical Analysis - II

I. Bullish Patterns

1. Plain White Candle (with or without sticks)
This is a bullish line. It occurs when open price near the low and close is significantly higher than periods high.

2. Hammer
This is a bullish line if it occurs after a significant downtrend. If the line occurs after a significant up-trend, it is called a Hanging Man. A Hammer is identified by a small real body (i.e., a small range between the open and closing prices) and a long lower shadow (i.e., the low is significantly lower than the open, high, and close). The body can be empty or filled-in.

3. Bullish Piercing
This is a bullish pattern and the opposite of a dark cloud cover. The first line is a long black line and the second line is a long white line. The second line opens lower than the first line's low, but it closes more than halfway above the first line's real body. Here the open can be -0.5 % higher than the previous close.


4. Bullish Engulfing
This pattern is strongly bullish if it occurs after a significant downtrend (i.e., it acts as a reversal pattern). It occurs when a small bearish (filled-in) line is engulfed by a large bullish (empty) line


5. Morning Star
This is a bullish pattern signifying a potential bottom. The "star" indicates a possible reversal and the bullish (empty) line confirms this. The star can be empty or filled-in



Will be continued...