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Category: Bullish reversals

Bullish reversal candlestick patterns typically appear at the end of an downtrend. They suggest that selling momentum has decreased and soon the trend will turn bullish. The reliability of bullish reversal formations – as always – depends very much on the timeframe and the instrument, however in an established uptrend, bullish reversal candles can safely predict the end of a bearish correction phase. These ‘end of correction signals’ tend to be pretty powerful.
Often the reversal signal precedes the reversal by several candles, therefore apply stoplosses carefully.