INVERTED HAMMER
Formed after a southward trend, a bullish belt hold formation gives first indication of
This formation has a higher probability of successfully indicating a change in an
While it is a bullish formation, inverted hammer rather than being an indication of
exact point of reversal of trend, normally gets formed as a first step in process of reversal
of trend from bearish to bullish. This formation is an indication that the bulls have made
their first attempt to fight back. Long upper wick indicates that some selling pressure did
emerge at a higher level. The appearance of an inverted hammer requires more
confirmation in terms of breakout of prices above downward sloping trend line along with a gap up opening on the day after the formation appeared.
BULLISH BELT HOLD
a possible change in trend from bearish to bullish. The difference between it and other
bullish candle formations is that if the bullish belt hold formation gets confirmed by
subsequent moves. Which should come in form of stock price staying above the lows
formed in this formation, reversal in trend lasts for a longer time period. If accompanied by
higher volumes, then the probability of the bulls making a comeback increases
BULLISH ENGULFING
ongoing trend. Traders need to check where the bullish engulfing pattern has emerged. If it
is appearing after a phase of downward movement, it is indicative of possible reversal
from bearish to bullish. If it appears after a sideways movement or just after a short
correction of two to four trading sessions with shallow price damage, it may be an
indication of resumption of the upward trend. So, a Bullish Engulfing pattern may be a
reversal pattern or continuation pattern. Longer the second green candle, stronger the
strength of bullish indication emerging on the charts
