Understanding candlestick patterns can give you a significant edge in the market. Learn these essential patterns and make smarter trading decisions every time you open a chart.
📈 Bullish Candlestick Patterns
These patterns often signal the start of an upward trend.
1️⃣ Hammer
Small body with a long lower wick
Appears at the bottom of a downtrend
Indicates strong buying pressure
Reversal is confirmed if followed by a bullish candle
2️⃣ Inverted Hammer
Small body with a long upper wick
Also forms at the bottom of a downtrend
Suggests a possible bullish reversal upon confirmation
3️⃣ Bullish Engulfing
A small red candle followed by a large green one that fully engulfs it
Signifies a shift from bearish to bullish sentiment
More effective at key support levels
4️⃣ Piercing Line
A red candle followed by a green one that closes above the midpoint of the red
Signals a potential bullish reversal
5️⃣ Morning Star
A three-candle formation: red candle, small-bodied candle (indecision), and a strong green candle
Often seen at support zones
Indicates the end of a downtrend and a shift to bullish momentum
6️⃣ Three White Soldiers
Three consecutive strong green candles
Each opens within the previous candle's body and closes higher
Demonstrates strong and sustained bullish pressure
📉 Bearish Candlestick Patterns
These patterns suggest a possible downward trend is starting.
1️⃣ Hanging Man
Small body with a long lower wick
Appears at the top of an uptrend
Signals a potential reversal
2️⃣ Shooting Star
Small body with a long upper wick
Forms at the top of an uptrend
Indicates strong selling pressure
3️⃣ Bearish Engulfing
A small green candle followed by a large red candle that completely engulfs it
Strong reversal signal, especially near resistance levels
4️⃣ Evening Star
Three candles: green, small-bodied candle (indecision), and a strong red candle
Seen at the top of an uptrend, indicating a bearish reversal
5️⃣ Three Black Crows
Three strong red candles in a row
Each opens within the previous candle’s body and closes lower
Suggests a sustained bearish trend
6️⃣ Dark Cloud Cover
A green candle followed by a red candle that closes below the midpoint of the green
Indicates a potential trend reversal
🔄 Continuation Candlestick Patterns
These patterns imply that the current trend (bullish or bearish) may continue.
1️⃣ Doji Candle
Small body with long upper and lower wicks
Signals indecision in the market
Direction depends on the next confirming candle
2️⃣ Spinning Top
Small body with wicks on both ends
Suggests uncertainty
Can precede either continuation or reversal depending on follow-up candles
3️⃣ Bearish Tri-Star
Long red candle, followed by small green candles within its range, then another red candle
Reinforces continuation of the bearish trend
4️⃣ Bullish Tri-Star
Long green candle, followed by small red candles within its range, then another green candle
Confirms bullish trend continuation
✨ Pro Tip:
These candlestick patterns are powerful tools for recognizing market sentiment and making informed entry or exit decisions. Always combine them with other forms of technical analysis and confirmation signals for best results.
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