Bullish candlesticks

Investors trade stock markets and use their emotions a lot. Most of them are too much greedy or fearful. Trading stock market successfully means often to recognize current thinking of other investors.

Personal note: If you want to learn more about candlesticks, consider education provided by Steve Nison, the father of modern Candlesticks.

Greed as positive emotion is not as strong as fear. This negative state of mind is often overwhelming investors and they are sometimes panicking and selling their stocks. Therefore it is very important to protect your trade with stop loss orders and money management rules.

Bullish candlesticks patterns represent positive emotions about stock. There are more buyers than sellers. You need to find these kinds of signs for stock if you want to enter a long trade.

These patterns can consist of one, two or more candlesticks.

When I am waiting for a good entry point for a long trade, I look for one of these two types of candlesticks with a bullish interpretation.

• Long, white body candlestick
• Big, lower shadow candlestick (like this hammer candlestick type)

There are several hammer candlesticks on this first EIX stock chart in the support area 52-53 USD. They’re signaling a strong buying interest in this support area.

Use volume to confirm positive sentiment

When positive candlesticks are accompanied by larger then usual volume then it gives you additional confirmation of positive development. There is much higher probability of continuation of uptrend move in near future.

Return from Bullish candlesticks to stock chart analysis