Bullish Harami:

Bullish Harami: candle pattern is a reversal pattern appearing at the bottom of a downtrend. It consists of a bearish candle with a large body, followed by a bullish candle with a small body enclosed within the body of the prior candle. As a sign of changing momentum, the small bullish candle ‘gaps’ up to open near the mid-range of the previous candle.

The opposite of the Bullish Harami is the Bearish Harami and is found at the top of an uptrend.

The Bullish Harami Cross

Traders will often look for the second candle in the pattern to be a Doji. The reason for this is that the Doji shows indecision in the market. The colour of the Doji candle (black, green, red) is not of too much importance because the Doji itself, appearing near the bottom of a downtrend, provides the bullish signal. The Bullish Harami Cross also provides an attractive risk to reward potential as the bullish move (once confirmed) is only just starting.

Simple Moving Average

 Simple Moving Average: Simple Moving Average or SMA is a moving average which is calculated by adding the closing price of security prices for the last n-periods and dividing it by the total number of time periods. For example, suppose we want to calculate the 9 periods SMA of a security price. First, we will add the last 9 Days Closing Price of the security and then it will be divided by the 9 periods. 

Calculation for 9 periods SMA: 

(P9+P8+P7+P6…. +P1)/9 

Where, P=Price  P9= Closing Price 9 days ago SMA is a Technical indicator which is represented by a line and it is directly plotted on the security price. As per the choice of the trader, the periods can be changed in the SMA indicator. For shorter-term SMA, we can use 5,8,13 etc. For Medium term 20, 34, 50 and for longer term 100,200 can be used. If a medium term moving average is having a positive slope, the trend is considered to be positive in medium term and vice versa. Price breaching a particular moving average from down to up is considered a bullish sign. Similarly, price breaching a particular moving average from upside and closing below is considered bearish. If we find a shorter term moving average crossing a medium term moving average from below, often this is called bullish crossover. On the other hand if a shorter term moving average crosses a medium term moving average from upside to below that is called a bearish crossover and often considered a signal of bearishness.

Doji:

Doji: The Doji is a single candlestick pattern. The Doji assumes significance, when it appears after a trending move, be it up or down. The Doji symbolizes indecision and after a Doji the incumbent trend can reverse, go sideways or continue uptrend. However, appearance of a Doji is a signal of caution that the probability is high that the erstwhile trend may be coming to an end. Doji is a candle which has open and close almost at similar level. There can be upper shadows and lower shadows of various proportions.

Dark Cloud Cover

  Dark Cloud Cover: The Dark cloud cover is a two candlestick bearish reversal pattern and much similar to the bearish engulfing pattern. In this pattern, the second candle, unlike the bearish engulfing pattern falls short of engulfing the first candle, instead it crosses 50% the body of the first candle. The confirmation comes when a candle breaches the bottom of the pattern. On confirmation a short trade can be taken with stop loss above the high of the candle.

Piercing Pattern

2. Piercing Pattern:

Piercing pattern is a multiple candlestick chart pattern formed after a downtrend indicating a bullish reversal.

Two candles form it, the first candle being a bearish candle which indicates the continuation of the downtrend.

The second candle is a bullish candle which opens the gap down but closes more than 50% of the real body of the previous candle, which shows that the bulls are back in the market and a bullish reversal is going to take place.

Traders can enter a long position if the next day a bullish candle is formed and can place a stop-loss at the low of the second candle.

Below is an example of a Piercing Candlestick Pattern:

Bullish Engulfing Pattern:

3. Bullish Engulfing:

Bullish Engulfing is a multiple candlestick chart pattern that is formed after a downtrend indicating a bullish reversal.

It is formed by two candles, the second candlestick engulfing the first candlestick. The first candle is a bearish candle that indicates the continuation of the downtrend.

The second candlestick is a long bullish candle that completely engulfs the first candle and shows that the bulls are back in the market.

Traders can enter a long position if next day a bullish candle is formed and can place a stop-loss at the low of the second candle.

Below is an example of Bullish Engulfing Candlestick Pattern:

Hanging Man

 Hanging Man: Hanging Man is a single candlestick bearish reversal pattern. This appears after a sustained up-move. The candle looks like a hammer; only difference is that it appears at the end of an up-trend. The candle should have a small body at the top (red/green) and a lower shadow at least twice the length of the body. There should be very small or no upper shadow. A red colored body of hanging man pattern is more bearish than a hanging man pattern with green body. The confirmation of the pattern happens when price moves below the low of the candle. On confirmation a trader may take short trade with stop-loss above the high of the candle. The hanging man pattern is bearish counterpart of Bullish inverted hammer. However this appears much less frequently than shooting star which is another bearish reversal pattern.

Inverted-Hammer

 Inverted-Hammer: An inverted hammer is a single candlestick bullish reversal pattern. The pattern appears after a sustained down-trend. At the beginning of the day there should be a gap-down opening. However, bulls should push the price higher during the course of the day. Eventually the bears should push the price lower during the course of the day and close near the open price. The resulting candle should have a small body, red or green, the upper wick should be at least twice the body of the candle and the lower shadow should be quite small or negligible in size. If the body is green it is relatively bullish than if it is red. This looks like an inverted hammer as the name suggests. The philosophy is that bears were not able to push the price below the opening price during the course of the day. This pattern, however, is considered to be little less bullish than the hammer itself, because in hammer bulls are able to force a higher close by the end of the day. The confirmation of the pattern comes once the price moves above the high of the candle. On confirmation a buy trade can be initiated with a stop loss below the low of the candle. Inverted hammer occurs little less frequently in market as compared to hammer pattern.

Shooting Star

Shooting Star: A shooting star is just like a mirror image of a hammer candle. First there should be a sustained up trend and then there has to be a gap up opening. The bulls should push price higher in the initial part of the day. Then, later in the day bears should take in the control of the stock and push prices down. Eventually the closing price should be very close to the opening price, resulting in a candle with a small green or red body, a big upper shadow and a small or negligible lower shadow. The upper shadow of the candle should be at least twice the length of the body. Now a confirmation of the shooting star pattern comes if price moves below the low of the candle within next 2-3 candles. On confirmation, a short trade should be taken with stop loss above the high of the high of the candle. A shooting star pattern with a red body is considered slightly more bearish than one with a green body. It is often observed that shooting star candlestick pattern acts as bearish reversal pattern and triggers a down move after an uptrend.