Bullish Candlestick Formations
Hammer -
it is a very strong bullish signal when it occurs after a significant downtrend. The candle has a small body and a long wick. The body can be clear or filled in.
![](https://www.forex4you.com/my-en/wp-content/uploads/sites/45/2020/02/3-3-1.jpg)
Piercing Line -
the first candle is a long bear candle followed by a long bull candle, signaling buyers are coming into the market.
![](https://www.forex4you.com/my-en/wp-content/uploads/sites/45/2020/02/3-3-2.jpg)
Bullish Engulfing Lines -
it is a strongly bullish pattern if it occurs after a significant downtrend. The first bear candle is engulfed by a large bullish candle. It may serve as a reversal pattern.
![](https://www.forex4you.com/my-en/wp-content/uploads/sites/45/2020/02/3-3-3.jpg)
Bearish Candlestick Formations
Hanging Man -
the hanging man is identified by small candle bodies and a long wick below. It might serve as a bearish signal if it occurs after a significant uptrend.
![](https://www.forex4you.com/my-en/wp-content/uploads/sites/45/2020/02/3-3-1.jpg)
Dark Cloud Cover -
a bearish pattern, which gains mores significance if the second candle's body is below the center of the previous candle's body.
![](https://www.forex4you.com/my-en/wp-content/uploads/sites/45/2020/02/3-3-4.gif)
Bearish Engulfing Lines -
it is defined by a small bullish candle is engulfed by a large bearish candle. It is strongly bearish if it occurs after a significant uptrend.
![](https://www.forex4you.com/my-en/wp-content/uploads/sites/45/2020/02/3-3-5.jpg)
Doji -
a classic reversal pattern. It has the same opening and closing price, which makes it look like a cross or a T. The T shaped Doji is also known as a Dragonfly Doji, while an inverted T is known as a Tombstone Doji. It might also communicate indecision, when the range between the high and the low is relatively small.
![](https://www.forex4you.com/my-en/wp-content/uploads/sites/45/2020/02/3-3-6.jpg)