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Course: The art of Japanese Candlesticks

Lesson Insights

Trend reversal formations

Trend reversal formations are candlestick patterns that indicate a potential change in trend. These patterns are typically classified as either bullish reversal patterns or bearish reversal patterns, depending on the expected direction of the new trend.

Some of the most common trend reversal formations include:

  • Bullish Reversal Patterns:
    • Hammer
    • Bullish Engulfing
    • Morning Star
  • Bearish Reversal Patterns:
    • Shooting Star
    • Bearish Engulfing
    • Evening Star

The use of trend reversal candles is described first generally, then the formations in this group are shown individually with examples.

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