Welcome to the Bullish Bears Candlesticks eBook.

This eBook is a
Quick Start Guide that’s meant to go along with our Candlesticks
Courses. Also, make sure to download our desktop wallpaper
backgrounds that came with your eBook download. Our eBook and
wallpaper backgrounds are beneficial trading resources.

This eBook will show you when to enter a potential trade on each
pattern and where to place your stop losses. We recommend using
this eBook along with our Candlesticks Courses since our courses
show you several real-world video examples of all these patterns.

Candlesticks tell a significant story between the bulls vs. the bears
when trading. This story forms patterns that show essential support
and resistance levels. Support and resistance are the names of the
game when trading. Price action is the first and most important line
of defense when trading. All the other technical indicators do not
matter unless you know support and resistance first.

The charts' most common bullish candlestick colors are green, white,
and blue. The most common bearish candlestick patterns are red,
black, and orange.

Our eBook and wallpapers show blue for bullish and orange for
bearish. Our course videos show a combination of blue and orange
and green and red candlesticks.

1
BULLISH CANDLESTICKS

There are two types of candlesticks when trading.

Bullish and bearish. The stock market is a tug-of-
war between the buyers (bulls) and sellers
(bears). The bulls go long, and the bears go
short. This battle forms candlesticks, which is
price action, and price action is king!

Bullish candlesticks are formed when the buyers

(bulls) have control. The real bodies of the
candlesticks are blue, green, or white on most
traders’ charts.

The open price forms the bottom of the candlestick. The close price
forms the top of the candlestick.

The opening and closing prices together form the real body. Any
wicks or shadows seen are the highs and lows of the day. Many
traders call wicks a shadow instead, and vice versa. Wicks and
shadows are the same things. You may also hear them called tails.

You can see in the picture above that the closing price is higher than
the opening price.

How to Trade: Enter a long position when the price breaks above
the high of the previous candlestick. Stop loss would be a
candlestick close below the low of the last candlestick. Learn More

2
BEARISH CANDLESTICKS

Bearish candlesticks are formed when the

sellers have control of the day. Price is driven
down throughout the day. In other words, this
candlestick forms when the price opens higher
and then closes lower for the day.

They are typically orange, red, or black in color

on most traders’ charts. The high and low of the
day forms the wicks and shadows. The opening
and closing of the day include the real body.

Shorting or bearish options strategies are common ways to trade

bearish patterns. We recommend spreads for a higher win-rate
percentage and better risk management when trading options.

How to Trade: Enter a short position after the price breaks the low of
the previous candlestick. Stop loss would be a candle close above the
high of the previous candlestick. Learn More

3
HAMMERS (BULLISH)

Hammers are bullish reversal candlesticks.

They hammer out a base so that the price
can go back up. Hammer candlesticks have
a small real body with a long shadow at the
bottom.

This means that sellers tried to drive the

price down, hence the long shadow, but
buyers came back in and drove the price
back up. It finished where it started and had a
strong day, as you can see in the picture.

Hammer candlesticks “hammer out” a strong support level. Price then

becomes very attractive to the bulls, and they stop the panic selling.

How to Trade: Enter a long position when the price breaks the high of
the hammer candlestick. Stop loss would be a candle close below the
low of the hammer. Learn More

4
INVERTED HAMMERS (BULLISH)
Inverted hammer candlesticks are bullish
reversal candles that form at the bottom of
downtrends. They’re just upside-down
hammers, as you can see in the picture. The
hammer has a small real body with a wick at
least two times the size of the real body.

This pattern also looks like a shooting star but

tells a different story. I’ll discuss the shooting
star pattern a bit later.

Inverted hammer candlesticks show that the bulls came in and there
was buying pressure. The bulls could not sustain it, and the price
ended up closing near where it opened because the bears drove the
price back down.

How to Trade: Enter a long position when the price breaks above the
high of the inverted hammer candlestick. Stop loss would be a
candlestick close below the low of the inverted hammer. Learn More

5
 DOJIS (INDECISION)

Doji candlesticks are indecision or

consolidation candles. They look like a plus
sign, with little to no real body. They could be
bullish or bearish in color. Buyers and sellers fight
to take over, but neither side wins.

Doji candles by themselves are neutral. When

paired with other candlesticks, they take on a
different meaning, whether bullish or bearish.
Doji candlesticks can be part of continuation patterns or reversal
patterns. Hence the importance of the candlesticks surrounding a doji.

An indecision candle, such as the doji, tells a story of a shift in control,

also known as the war between the bulls and bears.

How to Trade: Enter a long position when the price breaks above
the high of the doji. Stop loss would be a candlestick close below
the low of the doji.

Enter a short position when the price drops below the low of the doji.
Stop loss would be a close above the top of the doji. Learn More

6
DRAGONFLY DOJIS (BULLISH)

Dragonfly doji candlesticks are members of

the doji family, which shows indecision in
price action. It's in the shape of a T and
looks like a hammer but has little to no real
body. It’s a bullish reversal candle.

When the dragonfly doji forms, traders see it

as a bullish reversal signal if found at the
bottom of a down channel.

The dragonfly doji is formed when sellers have control for most of
the day, but buyers come in and drive the price back up to close
where it opened. There’s no real body because the price opened
and closed around the same levels. The shadow is evidence of
selling pressure. There should be no upper wick.

How to Trade: Enter a long position when the price breaks the high
of the dragonfly candlestick. Stop loss would be a candlestick close
below the low of the candlestick. Learn More

7
GRAVESTONE DOJIS (BEARISH)

Gravestone doji candlesticks are the bearish

version of the dragonfly doji. It's shaped like an
upside-down T, as seen in the picture.

Bulls had control for much of the day, hence

the long wick. Then the bears came in and
drove the price back down, so it closed near
its opening.

Gravestones are a member of the doji family.

This means they’re indecisive candlesticks, also. They’re mostly
a common bearish reversal sign.

How to Trade: Enter a short position when the price breaks below
the low of the gravestone candlestick. Stop loss would be a close
above the high of the candlestick. Learn More

8
LONG-LEGGED DOJIS (INDECISION)

Long-legged doji candlesticks form the shape of a cross,

as seen in the picture. This candlestick is one of the
more indecisive candlesticks of all the indecision
candles.

The reason is the small to the almost non-existent real

body in the middle. The upper and lower wicks tell the
story of buyers and sellers trying to wrestle control from
the other. It didn’t work. They could be bullish or bearish
in color.

How to Trade: The same rules apply for trading these candles as
regular doji candlesticks. Risk management is a bit more difficult due
to the longer wicks and shadows, so be careful. The bigger the candle,
the bigger the risk. Learn More

9
HIGH WAVE CANDLES (INDECISION)

High wave candles consist of large wicks and shadows

and can have a small or big real body depending on the
size. The high wave candlestick in the picture is the big
orange candle in between the two blue candles.

They are another indecision candlestick that has been

coupled with volatility. This candle is like the long
legged doji but has a larger real body. High wave
candles form because traders need clarification about
the direction of a stock. They could be bullish or
bearish in color.

How to Trade: Trade this pattern like a long-legged doji. Risk

management is also a bit more difficult due to the longer wicks and
shadows, so be careful. Remember, the bigger the candle, the
bigger the risk. Learn More

10
 SPINNING TOPS (INDECISION)

Spinning top candlesticks are indecision or

consolidation but also show signs of a reversal.
It’s essential to see where the spinning top
forms in a trend. They could be bullish or
bearish in color.

As the picture shows, the spinning top has a

small real body with smaller wicks and
shadows. Spinning tops form when one side or
the other is losing control.

A spinning top forming in an uptrend means the bulls are losing their
stranglehold. The opposite is true for the bears. A spinning top at the
bottom of a downtrend is good news for buyers.

How to Trade: Trade this like a doji candlestick. Learn More

11
HANGING MAN CANDLES (BEARISH)

Hanging man candlesticks form at the top of an

uptrend signaling a potential bearish reversal is
on the way. The hanging man has a small real
body and a larger shadow below.

This means there was a significant sell-off at

the market opening, but buyers came in and
drove the price back up. It's a red flag to buyers
that they’re losing control.

This pattern looks like a hammer, but they tell a different story.
Hanging man candles are found in uptrends rather than downtrends
like a hammer.

How to Trade: Enter a short position when the price breaks the low
of the hanging candle. Stop loss would be a candle close above the
high of the hanging candle. Learn More

12
 GAP UP AKA BULLISH KICKERS (BULLISH)

Gap up patterns form when prices move up

substantially after hours or premarket from the
previous day’s close. Earnings or news is
typically the cause of a bullish kicker pattern. They
are a bullish pattern. Another name for this pattern
is the gap and go, the most popular day trading
strategy.

Price moves up a lot after closing, so the next

day’s opening is higher than the close of the
previous day. These gaps form solid support
and resistance levels.

There's a saying…All gaps must be filled, so pay close attention to

gap patterns. Price will more than likely fall to fill the gap. It may not
happen right away, but it will probably happen later down the road.
Gap up patterns are bullish because of the excitement surrounding
the stock.

How to Trade: Enter a long position when the retest of the gap
holds. Stop loss would be a candle close back into the gap or below
it. Be careful using the gap as a stop area because that could be a
lot of risk. Learn More

13
 GAP DOWN AKA BEARISH KICKERS (BEARISH)

Bearish kickers, aka gap down

patterns, form when the price
opens a lot lower than the
previous day’s close. Again, gap
patterns usually occur around
earnings or news. They are a
bearish pattern.

If earnings after hours are bad,

then the price will typically fall.
Any news that's not good after
hours or a premarket will affect
the stock opening.
The gap then becomes support and resistance. Price will move to test
that at some point in the future. It may not fill it right away, but in the
picture, notice that the price went to fill the gap shortly after it fell.

How to Trade: Enter a short position when the retest of the gap down
confirms failure. Stop loss would be a candlestick close back into the
gap or above it. Be careful using the gap as a stop area because that
could be a lot of risk. Learn More

14
THREE WHITE SOLDIERS (BULLISH)

Three white soldiers are bullish patterns. They’re made up

of three bullish candles that have long bodies. Price is
moving up like a set of stairs, as the picture shows.

It’s a bullish reversal pattern, as the price moves

consistently during those three days. Notice in the picture
that the price opens inside the previous day’s candle.

This pattern is a strong reversal pattern, especially for

swing traders. The picture shows the long entries that you
could take with this pattern.

How to Trade: Enter a long position when the price breaks the first
previous high. Stop loss would be a candlestick close below the last
candle. The next long entry would be a break above the second high.
Stop loss below the previous candle. Learn More

15
THREE BLACK CROWS (BEARISH)

Three black crows are the bearish counterpart of the three

white soldiers. This bearish reversal pattern is a strong one.
The price falls in a series of three bearish candlesticks in the
photo.

Each candlestick opens near the close of the previous day.

Typically, there aren’t any wicks with these candlesticks,
although that’s not always the case.

How to Trade: Enter a short position when the price breaks

below the first candlestick. Stop loss would be a candlestick
close above the high of the candlestick.

The second short position would be when the price breaks below the
second candle. Stop loss would be a candlestick close above the
previous candle. Learn More

16
BULL FLAGS (BULLISH)

Bull flag patterns are bullish patterns. They are a

very popular chart pattern and are easy to spot.
They’re one of the most accessible and reliable
bullish patterns to trade.

Bullish candles form the flagpole. It can be one

long candle or a series of grouped candles. It
depends on the time frame that the pattern is
forming.

Consolidation candles form the flag. Price can either

trade sideways or down for a period. The
continuation happens after the price breaks out of
the flag, as seen in the picture.

How to Trade: Enter a long position when the price breaks out
of the flag’s upper trend line. Stop loss would be a candle below
the flag’s base or middle. Learn More

17
BEAR FLAGS (BEARISH)

Bear flags are bearish patterns that are popular

and easy to spot on charts. They’re one of the
most accessible and reliable bearish trade
patterns.

The flagpole forms as the stock moves down,

and the flag forms with consolidation. This
consolidation period moves upwards. Then
price breaks to the downside as the lower trend
line fails.

How to Trade: Enter a short position when the price breaks below
the flag’s lower trend line at the last candle. Stop loss would be a
candle close above the middle or high of the flag. Learn More

18
RISING THREE METHODS (BULLISH)

The rising three methods are made up of five

candlesticks that signal a continuation. It’s a bullish
pattern. Notice in the picture that it looks like a bull flag.
They’re one of the most accessible and reliable
bullish patterns to trade.

It has a long bullish candlestick, three bearish

candlesticks, and another bullish candle. The three
bearish candlesticks are a short consolidation period.

Sellers tried to take over, and they were not successful.

Now the bulls are back and in control.

How to Trade: Enter a long position when the price breaks above the
high of the third bearish candlestick. Stop loss would be a candlestick
close below that same candle. Learn More

19
FALLING THREE METHODS (BEARISH)

Falling three methods are a bearish pattern that looks

like a bear flag. They’re one of the most accessible
and reliable bearish trade patterns.

It's made up of five candlesticks. The first candlestick

is a bearish candle. The next three candlesticks are
bullish candles. The last candle is another bearish
candle. The bulls try to change the trend but need
to be stronger to overtake the bears. The bears came
back after three consolidation days and drove the
price further down.
How to Trade: Enter a short position when the price breaks
the low of the third bullish candle. Stop loss would be a
candle close above the third bullish candle. Learn More

20
BULL PENNANTS (BULLISH)
Bull pennants are bullish patterns that look a lot
like a bull flag. They’re one of the most
accessible and reliable bullish patterns to
trade.

The difference is the formation of the pennant. The

pennant is triangular rather than a flag.

Trend lines are part of pennants—the trend lines

formed during consolidation. The flagpole is formed
by a larger volume, while the pennant is formed
when volume decreases.
How to Trade: Enter a long position when the price breaks out of the
upper trend line at the apex. Stop loss would be a candle close below the
mid-way point of the pennant. Learn More

21
BEAR PENNANTS (BEARISH)
Bear pennants are bearish patterns. They’re one of
the most accessible and most reliable bearish
patterns to trade.

The flagpole down is part of the existing trend. The

consolidation candles form a triangle (pennant),
which looks slightly different from a flag but tells the
same story.

The consolidation forms as buyers and sellers fight

for control. The buyers looked like they could do it,
but they couldn’t. Price then continues downward.

How to Trade: Enter a short position when the price breaks below
the pennant’s lower trend line at the apex. Stop loss would be a
close above the middle of the pennant. Learn More

22
 ASCENDING TRIANGLES (BULLISH)

Triangle patterns are found on most

charts. The ascending triangle is a bullish
pattern. It’s important to learn trend lines as
a trader because they make up the
foundation of many different patterns in all
time frames.

Trend lines are an integral part of triangle

pattern formations. Those trend lines
become essential to support and resistance
levels, as you can see in the picture.

The horizontal trendline is a strong resistance level that needs to be

broken for the uptrend to continue. It’s also known as a flat top.

The ascending triangle pattern forms during a consolidation period. It

would be best to have at least two connected highs and lows for this
pattern to form. The more touches to the trend lines, the stronger the
pattern.

How to Trade: Enter a long position when the price breaks above the
upper horizontal resistance level. This is called a flat-top breakout.
You could also wait for the price to do a backtest/retest to confirm the
strength of the new support level. Once that retest candle holds
support, you could go long above that candle.

Stop loss would be halfway down the lower trend line. If you’d like to
keep your risk smaller, you could use a candle below the flat top as a
stop. Learn More

23
 DESCENDING TRIANGLES (BEARISH)

Descending triangle patterns are bearish

patterns. They form a downward-sloping
trendline that connects with a horizontal base.
The horizontal base is essential to this
formation because it’s critical support. Price
needs to break below that support level for
the pattern to continue downwards.

There need to be at least two lows that hit the

support level to confirm the base. This pattern
tells traders that the stock is getting ready to
break down.

How to Trade: Enter a short position when the price breaks below the
triangle’s base. Or you could wait for the price to do a backtest/retest
to confirm the strength of the new resistance level. Once that retest
candle fails resistance, you could go short below that candle.

Stop loss would be halfway above the upper trend line. If you’d like to
keep your risk smaller, you could use a candlestick close above the
base as a stop. Learn More

24
 SYMMETRICAL TRIANGLES (INDECISION)

Symmetrical triangle patterns form in both

bullish and bearish trends. While
considered indecision patterns,
symmetrical triangles can also continue the
current trend. Take note of pennant
patterns!

Volume plays a vital role in this triangle

formation. The more volume decreases, the
smaller the triangle gets.

This begins the apex formation. The apex is where the breakout or
breakdown occurs. Since this is an indecision pattern, confirmation of
price direction is needed to trade it. Again, trend lines are essential for
triangle patterns. Once those trend lines break, they may be tested to
prove their strength.

How to Trade: Enter a long position when the price breaks above
the apex. Stop loss would be midway below the lower trend line.
Take a short position when the price falls below the apex point. Stop
loss would be midway above the upper trend line. Learn More

25
FALLING WEDGES (BULLISH)

Falling wedge patterns are bullish patterns but

may not look like them. As seen in the picture, the
price begins to fall, forming a cone or wedge
shape when trendlines are drawn. This is a bullish
reversal pattern because the price reverses after
the bearish pattern.

Price moves lower as the pattern begins to

complete, so it forms the shape of a cone. Price
should have at least two connected highs and
lows, although three would be better as it
strengthens the pattern.

They look like a more prominent bull flag pattern. The break of
resistance is key to this pattern.

How to Trade: Enter a long position when the price breaks out of the
upper-sloping trend line near the wedge’s apex. Stop loss would be a
close below the low of the wedge. Learn More

26
 RISING WEDGES (BEARISH)
Rising wedge patterns are bearish patterns.
Price moves up along trendlines to form the
cone or wedge shape.

Volume decreases near the top as buying

pressure weakens. The trendlines that form
the wedge pattern also act as support and
resistance.

The break of support is imperative to

this pattern. Hence the importance of
trendlines as support and resistance
levels.

Price should have at least two connected highs and lows, although
three would be better as it strengthens the pattern. They look like a
larger bear flag pattern.

How to Trade: Enter a short position when the price breaks the
lower trend line near the top of the apex area of the wedge. Stop loss
would be a close above the top of the wedge. Learn More

27
HEAD AND SHOULDERS (BEARISH)

Head and shoulders patterns are bearish and

signal a potential trend reversal to the downside.
They get their name from the shape of the pattern.
There’s a head, left and right shoulder, and a
neckline.

Price moves up, creating a new candle high. After

this happens, the price typically falls (not shown in
this pic), making the left shoulder. Then price moves
up to break the previous high candle, which forms the
head. Price then falls and gets a bounce back up
below or equal to the first candle high (left shoulder),
creating a lower high. This makes the right shoulder.

The neckline is an important part of this pattern. Price needs to

break below the neckline for the bearish pattern to be
confirmed and the reversal to occur.

It’s also known as the FU pattern if it happens quickly. It’s a

less defined head and shoulders pattern. Yes, you heard that
right, ha-ha! Make a fist, reverse it, then flip the bird to your
computer screen. Can you see it? The FU pattern burns a lot of
new traders, especially with penny stocks. It happens when a
stock pumps and dumps quickly.

How to Trade: Enter a short position as the price fails the neckline
area of the head and shoulders or FU pattern. Stop loss would be a
candle close above the right shoulder area. You could also place
your stop when a candle closes back above the neckline area to
limit risk. Learn More

28
INVERSE HEAD AND SHOULDERS (BULLISH)

Inverse head and shoulders patterns are

bullish patterns. The left shoulder forms
as the price hits a low and then
consolidates. The head forms as the
price falls again, creating a new low,
then consolidates.

The right shoulder is either equal to or

slightly higher than the left shoulder.

The neckline of this pattern is a key

resistance level. Price needs to break
above the neckline and hold for the major
breakout.

How to Trade: Enter a long position once the price breaks above
the neckline. You could also wait for the price to retest the neckline
area and hold. Stop loss would be a close below the low of the right
shoulder or wait for a close below the neckline if you want to
minimize your risk. Learn More

29
 CUP AND HANDLES (BULLISH)
Cup and handle patterns are
bullish patterns. The pattern is
shaped like a “U” with a handle
that either trades sideways or
diagonally downwards. It looks
like a cup and handle, hence the
pattern’s name.

The cup or “U” shape is formed

by consolidation during a bullish
trend. The cup is a key support
level.

The more rounded the cup, the better chance for continuation upwards.
It’s also called a rounded bottom. The handle forms during a pullback.
It doesn’t take as long to form. It always forms the right side of the cup.

How to Trade: Enter a long position when the price breaks the top of
the cup. You could also wait for a retest to confirm support at the top of
the cup. Stop loss would be a close below the handle or wait for a close
below the top of the cup to minimize your risk. Learn More

30
 INVERTED CUP AND HANDLES (BEARISH)

Inverted cup and handle patterns are

bearish patterns. It’s an upside-down
cup and handles. The upside-down
“U” shape forms during
consolidation.

It forms key resistance levels. The

more rounded the cup, the better it is
for continuation downwards.

The handle forms during a pullback. It always forms to the right. Pay
close attention to the handle formation because it’s important to see
when the price fails the handle area.

How to Trade: Enter a short position when the price breaks below
the base of the cup. You could also wait for a retest to confirm
resistance failure at the previous bottom of the cup. Stop loss at the
top of the handle or wait for a close above the bottom of the cup to
minimize risk. Learn More

31
DOUBLE BOTTOMS (BULLISH)

Double bottoms are bullish patterns.

This pattern forms two equal lows
that become key support levels.

It’s shaped like a “W, “meaning it

has two lows with a peak in
between. The first bottom forms a
new low as part of the trend. A
correction occurs, creating the
peak—a second bottom forms with
a low equal to the first. Price
ended up holding support.

It’s called a double bottom breakout when the price breaks above
the middle peak area.

How to Trade: Enter a long position when the price breaks above the
middle peak area. Stop loss would be a close below the second
bottom area. Learn More

32
DOUBLE TOPS (BEARISH)

Double tops are a bearish pattern. The bulls tried to

push the price twice, but the bears would not allow it.
The double top is shaped like an “M.”

The two highs should be equal or close together in

price. This forms key resistance levels. The second
peak can’t break above the first peak level, which
creates a double-top failure.

The base, which is the middle low, is a key support

level that comes into play when trading this
pattern.

How to Trade: Enter a short position when the price falls below the
base level. Stop loss would be a candle close above the top of the
second peak. Learn More

33
TRIPLE BOTTOMS (BULLISH)

Triple bottom patterns are a bullish pattern.

There should be three co-equal or close-to-
equal lows. This forms a strong support
level that the bears cannot break.
Each time the bears try to push the price
lower, the bulls come in and stop it. By the
second low, the bulls are gaining momentum
to reverse the bearish trend. Once the third
low can’t break, and the price holds support,
the bears give in and allow the bulls to take
control.

How to Trade: Enter a long position when the price breaks above the
middle peak level or angular resistance. Stop loss would be a
candle close below the third bottom support level. Learn More

34
 TRIPLE TOPS (BEARISH)
Triple top patterns are bearish
patterns. The bulls try three times
to push prices higher and fail
each time. The highs that form is
close to equal in price.

This forms a strong resistance

level that both the bulls and
bears are aware of. Each side
sees that it can’t be broken.

The bears see an opportunity to reverse the trend and push prices
back down. The triple top can look like a head and shoulders, except
that each peak is nearly equal in price. When the price fails to break
resistance at the third peak, it’s a triple top failure.

How to Trade: Enter a short position when the price breaks below
the base of the neckline area. You could also wait for a retest of the
neckline resistance failure for confirmation. Stop loss would be
placed at the high of the third peak or wait for a candle close above
the neckline area to minimize risk. Learn More

35
TWEEZER TOPS (BEARISH)
Tweezer tops are very common bearish reversal
patterns. They are made up of two candlesticks
with highs that are exact or close to it in price.

The first candlestick could have a long body,

but this is only sometimes the case.

The second candlestick can be any shape or

size if the high is equal to the previous
candle. The second candle starts the trend
reversal.

How to Trade: Enter a short position when the price breaks the
bottoms of the Tweezers. Stop loss would be a candle close above
the top of the tweezers. Learn More

36
TWEEZER BOTTOMS (BULLISH)
Tweezer bottom patterns are made of two
candlesticks that signal a bullish reversal. There are
two days with equal lows.

This becomes a key support level that can’t be

broken, so the price turns and heads upwards. The
first candlestick is usually a part of the current trend.

The second candlestick can be any size or

shape. Either bullish or bearish. The thing that
they have in common is their equal lows.

How to Trade: Enter a long position when the price breaks above
the tops of the tweezers. Stop loss would be a close below the base
of the tweezers. Learn More

37
DARK CLOUD COVERS (BEARISH)
Dark cloud cover patterns are made up of two candlesticks.
It is a bearish reversal pattern.
This pattern is effective on daily charts. It forms when a
second bearish candlestick covers at least half of the
previous candlestick.

The first candlestick is a part of the current trend. The

second candlestick opens above the first, but the bears push
the price down, forming a bearish candlestick.

How to Trade: Enter a short position once the price breaks the low of
the second candlestick. Stop loss would be a candle close above the high
of the second candlestick. Learn More

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PIERCING PATTERNS (BULLISH)
Piercing patterns are made up of two candlesticks that
signal a bullish reversal. The first candlestick in the
pattern is part of the current downtrend.
The bulls then stop the downtrend from taking over. The
second candlestick opens with a new low but ends up
closing midway through the first candlestick.

The second candlestick is usually bullish because the

price increases after the opening. It got its name
because the bulls pierce the current downtrend by trying
to reverse it to the upside.

How to Trade: Enter a long position when the price breaks above
the high of the second candle. Stop loss would be a candle close
below the second candlestick. Learn More

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BULLISH ENGULFING (BULLISH)
Bullish engulfing patterns are a reversal pattern
that forms at the end of a downtrend. It's made
up of two candlesticks. The first candlestick in the
pattern is small and bearish.

This allows the second candle to engulf the first

one. Hence the name of the pattern.

The second candlestick is a long bullish candle. It

opened low and moved up all day. The bulls
would not allow the continued downtrend and
came in to take over.

It shows much-buying interest, so traders who missed the first wave

can come in. Then the price reverses to the upside.

How to Trade: Enter a long position when the price breaks above the
high of the second candlestick. Stop loss would be a candle close
below the second candlestick. Learn More

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BEARISH ENGULFING (BEARISH)
Bearish engulfing patterns consist of two candlesticks
and signal a bearish reversal. The first candlestick is
a small bullish candle, usually in keeping with the
current trend. It has a smaller real body.

This pattern typically occurs near resistance levels

and invites the bears to come in on the third candle.

The second candle is a long bearish candle that

completely engulfs the first. That's how the pattern
gets its name. The selling pressure is noticeable,
and the bulls will jump ship allowing the bears to
gain control.

How to Trade: Enter a short position when the price breaks the low
of the second candlestick. Stop loss would be a candle close above
the second candlestick. Learn More

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BULLISH HARAMIS (BULLISH)
Bullish harami’s are a pattern that consists of two
candlesticks and signal a bullish reversal to the upside.
The first candlestick is a long bearish candlestick.

The second candlestick is a small bullish one that forms

inside the first candlestick. This is how the pattern gets
its name. It’s the opposite of the engulfing pattern.

Harami is the Japanese word for pregnant. The outline of

this two-candlestick pattern looks like a pregnant
silhouette.

How to Trade: Enter a long position when the price breaks above
the high of the second candlestick. Stop loss would be a candle
close below the second candlestick. Learn More

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BEARISH HARAMIS (BEARISH)
Bearish harami’s are a reversal pattern made
up of two candlesticks. The first candlestick is a
long bullish candle in keeping with the trend.

The second candlestick is a small bearish

candlestick. It's small enough to form
inside the first candlestick. This is a signal
to traders that sellers are gaining
momentum.

Harami is the Japanese word for pregnant. The outline of this two-
candlestick pattern looks like a pregnant silhouette.

How to Trade: Enter a short position when the price breaks the low of
the second candlestick. Stop loss would be a candle close above the
high of the second candlestick. Learn More

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THREE LINE STRIKES (BULLISH)
Three line strikes are made up of four candlesticks. This
is a rare pattern and is harder to find on larger
timeframes. The first three candlesticks are known as
strikes.
Depending on the trend, they can be bullish or bearish.
The last candlestick in the pattern is a large candlestick
that can be bullish or bearish.

If the three line strike is bullish, there would be three

bearish strike candles and a long bullish candle, as
seen in the picture. If it’s bearish, the strike candles
would be bullish with a long bearish candle.

How to Trade: Enter long when the price breaks above the high of the
third strike candle. Stop loss would be a candle close below the third
strike candle. Learn More

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MORNING STARS (BULLISH)
Morning star patterns are bullish reversals made up of
three candlesticks. The first candlestick in the pattern
is bearish, which keeps with the current trend.

The second candle is small, usually a doji or a

spinning top. It typically trades below the first candle.
This shows indecision and gives a clue to a potential
upcoming reversal.

The last candlestick in the pattern is a large bullish

candle. The story of this pattern tells us that the
bears were in control on the first day.

On the second day, both sides battled hard, but no decision was
made. Hence the indecision. The third candlestick shows that the bulls
took full control and sent the bears home.

How to Trade: Enter a long position when the price breaks above the
high of the third candlestick. Stop loss would be a candle close below
the third candlestick. Learn More

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 EVENING STARS (BEARISH)

Evening star patterns consist of three candlesticks that

show a bearish reversal. The first candlestick in the
pattern is a long bullish candle that keeps with the
current uptrend.

The second candle is a small doji or spinning top

candle, which usually trades above the first
candlestick. This shows indecision among traders
as neither side gained control that day.

The last candlestick to form in the pattern is a long bearish one. The
bears finally took over. This causes a change in the direction of price
movement to the downside.

How to Trade: Enter a short position when the price breaks the
low of the third candlestick. Stop loss would be a candle close
above the high of the third candlestick. Learn More

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THREE INSIDE UP (BULLISH)

Three inside up patterns are made up of three

candlesticks. It's a bullish reversal pattern. The first
candlestick is usually a long bearish candle
keeping with the downward trend.

The second candle is a small bullish candlestick

housed inside the first candle. Does this look
familiar? It’s a bullish harami pattern. What makes
it a different pattern is the formation of the third
candle.

The third candlestick should also be bullish, which confirms the

current reversal. Traders trust the three inside up patterns more
because of the confirmation candle that forms.

How to Trade: Enter a long position when the price breaks above the
third candlestick. Stop loss would be a candle close below the base of
the third candlestick. Learn More

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 THREE INSIDE DOWN (BEARISH)
Three inside down patterns are bearish reversal
patterns and are made up of three candlesticks.

The first candle is a large bullish candle that

continues the current trend. The second candle is a
small bearish candlestick engulfed inside the first—a
bearish harami forms.

The third candlestick is the confirmation candle.

Another bearish candlestick makes the chances of a
reversal even stronger.

The confirmation of the trend reversal is why traders like the three
inside down. It gives extra assurance.

How to Trade: Enter a short position when the price breaks below
the low of the third candle. Stop loss would be placed above the
high of the third candle. Learn More

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THREE OUTSIDE UP (BULLISH)
Three outside up patterns are bullish reversals made up
of three candlesticks. The first candlestick is a smaller
bearish candle. This shows indecision among traders as
to the continuation of the current trend.
The second candlestick that forms is a long bullish
candle that engulfs the first candle. Recognize that
pattern? It's a bullish engulfing pattern.
The strength of the three outside up is the formation of a
third candle. The first two form a bullish engulfing
pattern, but the third candle confirms it. Traders like that
confirmation candle.

How to Trade: Enter a long position when t h e price breaks above

the third confirmation candle. Stop loss would be placed below the
third candle. Learn More

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 THREE OUTSIDE DOWN (BEARISH)
Three outside down patterns are bearish reversals.
Three candlesticks make up this pattern and house
another reversal pattern. The first candlestick is a small
bullish candle in keeping with the trend. It also signals
indecision.

The second candlestick that forms is a long

bearish candle that engulfs the first. Hence the
formation of the bearish engulfing.

The third candlestick that forms is another bearish candle. This

confirms the reversal of the bullish trend. With the third candle
confirmation, a new bearish trend is in place.

How to Trade: Enter a short position when the price breaks below
the low of the third candlestick. Stop loss would be a candle close
above the third candlestick. Learn More

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BULLISH BEARS TRADING COMMUNITY

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community members learn how to trade with a no-nonsense
approach. We tell it like it is and don’t sugarcoat things.

Our team works hard, is ethical, knows our stuff, and cares about
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It feels good to help others! Do we want everyone to become

successful traders? Of course, but that’s not realistic.

We do our best to make learning how to trade affordable for most

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Again, we are all about giving back to our community, and that vision is
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Check out our courses and community at BullishBears.com.

Lucien Bechard,
Bullish Bears Owner

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