Here are some of the candlestick patterns we’ve discussed:

Three White Soldiers – the most bullish of candlestick patterns with a strong reliability, this patterns shows three up days with long candles after a downturn.

Piercing Line – this is a moderately reliable bullish indicator where the bullish candlestick retraces above the midpoint of a heavy sell off.

Bullish Engulfing Pattern – this is a reversal pattern with moderate reliability, must close well above previous day’s high.  Fast moves down or a long down period can make this pattern more reliable.

The next graph below shows what a bullish morningstar pattern looks like.  This is a reversal pattern with a strong signal.  You’re looking for a three-day signal after a long downtrend.  You have a long downward candle, followed by the “indecision candle”, and then the morningstar bullish candlestick.  The best signal has a gap before and after the morningstar day.