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Been trading for a while now, and I've realized that spotting reversals early really comes down to recognizing the right candlestick patterns. There are some genuinely strong bullish candlestick patterns that show up again and again before major moves, and I want to break down the ones that actually work.
First up is Three White Soldiers. This is straightforward but powerful—three consecutive green candles, each one closing higher than the previous. When you see this after a downtrend, it's usually a solid signal that buyers are taking back control. The key is watching the volume though. If those candles are climbing on weak volume, it's not as reliable. I always wait for volume confirmation before I make a move.
Then there's the Three River Bottom pattern, which is a bit more nuanced. You get a big red candle, followed by a small indecisive candle that's kind of caught in the middle, then a strong green candle closes above. What this tells you is that the bears are losing steam. Their momentum is fading, and the bulls are stepping in. I've found this works best when it's happening near a strong support level—that's when it tends to be most predictive.
Three Inside Up is another one I watch closely. Large red candle gets followed by a small green candle that stays inside its range, then you get a strong breakout green candle. This is an early signal of a bullish reversal, but honestly, it shows up more reliably on higher timeframes. On the 1H or lower, it can be noisy.
Three Outside Up is basically a bullish engulfing followed by another strong green candle. This is where you see real confirmation. When the second candle completely engulfs the previous red one and then you get another green follow-through, that's when you know reversal conviction is there. I've noticed this pattern frequently appears right before major rallies.
Last one is the Bullish Meeting Line—red candle followed by green closing at the same level. Simple but effective. It shows buyers regaining control at that price point. I like to combine this with RSI oversold zones to get more accuracy.
Honestly, once you start recognizing these strong bullish candlestick patterns in real time, you catch so many reversals you would've otherwise missed. What about you—which of these patterns do you find most reliable in your trading? Would love to hear what's working for you.