Here’s a quick guide to the most common candlestick patterns, divided into bullish (price likely to go up) and bearish (price likely to go down):
🔼 Bullish Patterns (Buy Signal)
Hammer
Small body, long lower wick.
Found at bottom of a downtrend.
Shows buyers stepping in.
Bullish Engulfing
Small red candle followed by big green candle.
Green fully covers (engulfs) the red one.
Strong reversal signal.
Morning Star
3 candles: red → small candle (any color) → strong green.
Appears after a downtrend.
Signals upward reversal.
Piercing Line
First candle is red, second is green and opens below but closes above 50% of the red.
Shows bulls taking over.
🔻 Bearish Patterns (Sell Signal)
Shooting Star
Small body, long upper wick.
Found at top of uptrend.
Suggests rejection of higher prices.
Bearish Engulfing
Small green candle followed by large red candle that engulfs it.
Signals trend reversal downward.
Evening Star
3 candles: green → small candle → strong red.
Appears after an uptrend.
Signals bearish reversal.
Dark Cloud Cover
Green candle followed by red one that opens higher but closes below midpoint of the green.
Bearish sign.
🧠 Tips:
Always check volume for confirmation.
Use patterns with support/resistance levels.
Combine with indicators (like RSI, MACD) for better accuracy.
