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9 powerful candlestick patterns will help you spot market Ups and Downs.
1. Morning Star – Hope Rises
After a downtrend, a big red candle, followed by a small indecisive candle, and a strong green candle.
Signals potential reversal and an upward trend.
2. Hammer – Buyer’s Comeback
Found at the bottom of a downtrend.
Long lower wick (sellers tried to push price down), close near the top (buyers take control).
A strong green hammer signals bullish reversal.
3. Bullish Engulfing – Dominance Displayed
A small red candle followed by a big green candle that completely engulfs it.
Indicates buyers have taken full control, signaling a potential market surge.
4. Inverted Hammer – Hidden Strength
Looks like an upside-down hammer after a downtrend.
Long upper wick (buyers tried to push higher), close near the open.
When followed by a green candle, signals reversal.
5. Piercing Pattern – Fight Back Begins
Starts with a red candle, followed by a green candle that closes more than halfway into the red candle.
Suggests buyers are regaining control and the market could reverse.
6. Three White Soldiers – March of the Bulls
Three consecutive strong green candles, each closing higher than the last.
A strong bullish signal that the market could be entering a major uptrend.
7. Rising Three Method – The Calm Before the Charge
Big green candle followed by small red candles, then another green candle.
Indicates a continuation pattern and a potential run-up in the market.
8. Dragonfly Doji – The Silent Reversal
Long lower wick, price closing near the top.
Sellers pushed hard, but buyers took control, often signaling a reversal at the end of a downtrend.
9. Bullish Harami – Trend in Trouble
A large red candle followed by a small green candle inside the red candle’s body.
Shows uncertainty and potential loss of momentum in the downtrend.
These candlestick patterns reveal emotional footprints of traders. When paired with tools like support/resistance levels, trendlines, and volume, they give you an edge in the market.