What is a bullish or bearish Candlestick?

There are no set rules as to what is considered a bullish or bearish candlestick, though there are commonly accepted characteristics that tend to accompany these candlestick types. How Can You Tell If a Candle Is Bearish? If you think the market is moving lower, you can use candlestick patterns to confirm this.

Is a small bearish candle a valid engulfing pattern?

The small bearish candle doesn’t matter if it appears in the middle of the body of the previous bearish candle. If the bullish candle is able to engulf the body of the bearish candles formed, it is a valid bullish engulfing pattern. To form an engulfing pattern there has to be a prior ongoing trend.

What are the best bearish reversal candlesticks?

Just like its bullish counterpart, the bearish engulfing candle pattern is one of the best bearish reversal candlesticks, and is just as accurate signalling market tops.

What is a bullish Harami Candlestick?

The Bullish Harami is a trend reversal pattern that takes place when the market is heading down. It can be spotted when a white/green small-bodied candlestick appears after a series of bearish (black/red) candlesticks. Aside from that, the bullish Harami candlestick should be contained within the body of the previous day’s candlestick.