Make sure that both candlesticks are either marubozus (i.e. they do not have any wicks at all) or they have very short wicks. The bullish kicking pattern is quite reliable, but as always waiting for a confirmation of the reversal is recommended. This confirmation could appear as a bullish candlestick, a higher close on the third day or a large gap higher. • Abandoned baby This is a very rare bullish reversal signal. It is comprises a doji star, which gaps down from the previous day. The third candlestick gaps up from the doji star.
The reliability of this Japanese candlestick pattern is very high, but as always waiting for a confirmation of the reversal is recommended. This confirmation could appear as a bullish candlestick, a higher close on the third day or a large gap higher. • Morning doji star This is a 3-candlestick trading pattern pointing to the imminence of a big-time reversal. It comprises a long bearish candlestick followed by a doji gapping down to form a doji star. Later on, a third white candlestick is formed. Its closing is well into the first period’s bearish body.
The doji that get formed may be more than one or two. Their gaps are not meaningful. You are well advised to wait for confirmation as always. • Morning star First, we’ve got a long bearish body, a second teeny-weeny real body of either color, gapping down and forming a star. These two candlesticks define the basic pattern called ‘star’. The third candlestick is a bullish one which closes well into the first trading period’s bearish real body. The third stick indicates that the market is starting to turn bullish.
The stars may be more than one or two. The color of the star and the direction of its gaps are of no importance. Confirm by a subsequent bullish candlestick with a higher close or an upwards gap. • 3 inside up
The other name for this candlestick trading pattern is confirmed bullish harami pattern. (‘Harami’ means ‘pregnant’ in Japanese.) The third stick confirms the bullish trend reversal. • 3 outside up
The other name for this candlestick trading pattern is confirmed bullish engulfing pattern. The third stick confirms the bullish trend reversal. • 3 white soldiers This Japanese candlestick pattern points to a strong reversal in the market. You will see three long sticks going up in steps. The opening of each trading session is a bit lower than previous close followed by a soaring rally to a new high.
The opening prices of the second and the third time periods can be anywhere within the previous day's body. In any case, you’d be better off if see the opening prices above the middle portion of the previous session's body. If the white candlesticks are too long, watch out. It could signal an overbought market. As always, it’s not a bad idea to wait for a confirmation (we keep repeating this for a reason!). • Concealing baby swallow We’ve got two bearish marubozus one after the other. The thirds stick shows prices went up during the third session but we driven down by sellers. After that there is another huge bearish marubozu. All of this might make traders who have been holding shorts to start covering their short positions and reverse the trend into a bullish one.
Make sure you wait for a confirmation of the new trend.