The most common candlestick patterns

What is a candlestick?

A candlestick is a way of displaying information about an asset’s price movement. Candlestick charts are one of the most popular components of technical analysis, enabling traders to interpret price information quickly and from just a few price bars.

Candlestick Patterns

Single candlestick patterns

Hammer

Hammer Candlestick Pattern

bullish reversal

1. Small real body
2. Real body is at the top end of the session’s range
3. Very small or no upper shadow
4. The lower shadow should be at least twice the
height of the real body
5. The color of the real body is not important
6. Market must be in a downtrend 

Hanging man

Hammer Candlestick Pattern

bearish reversal

1. Small real body
2. Real body is at the top end of the session’s range
3. Very small or no upper shadow
4. The lower shadow should be at least twice the
height of the real body
5. The color of the real body is not important
6. Market must be in an uptrend

Shooting Star

Shooting star Candlestick Pattern

bearish reversal

1. Small real body
2. Real body is at the bottom end of the session’s range
3. Very small or no lower shadow
4. The upper shadow should be at least twice the
height of the real body
5. The color of the real body is not important
6. Market must be in an uptrend

Inverted Hammer

Shooting star Candlestick Pattern

bullish reversal

1. Small real body
2. Real body is at the bottom end of the session’s range
3. Very small or no lower shadow
4. The upper shadow should be at least twice the
height of the real body
5. The color of the real body is not important
6. Market must be in a downtrend 

Dragonfly Doji

Dragonfly Doji Chandlestick Patterns

bullish reversal

1. No (or very small) real body
2. Open and close are at (or very close to) the top of
the candle
3. No (or very small) upper shadow
4. Long lower shadow
5. Market must be in a downtrend 

Gravestone Doji

bearish reversal

1. No (or very small) real body
2. Open and close are at (or very close to) the bottom
of the candle
3. No (or very small) lower shadow
4. Long upper shadow
5. Market must be in an uptrend

Long-legged Doji

Long-legged Doji Candlestick Pattern

bullish reversal or bearish reversal

1. No (or very small) real body
2. Open and close are at (or very close to) the middle
of the candle
3. Long shadows, equal in length
4. Market can be either in an uptrend or a downtrend 

Bullish Marubozu

Bullish Marubozu Candlestick Pattern

Bullish continuation (or reversal)

1. Long real body and no shadows
2. The candle must be green

Bearish Marubozu

Bearish Marubozu Candlestick Pattern

Bearish continuation (or reversal)

1. Long real body and no shadows
2. The candle must be red

Two candlestick patterns

Bullish Engulfing

Bullish Engulfing Candlestick Pattern

Bullish reversal

1. Two candle pattern
2. Market must be in a downtrend 
3. The first candle must be red
4. The second candle must be green
5. The real body of the second candle surrounds the
real body of the first
6. The position of the shadows, on either candles,
doesn’t matter

Bearish Engulfing

Bearish Engulfing Candlestick Pattern

Bearish reversal

1. Two candle pattern
2. Market must be in an uptrend
3. The first candle must be green
4. The second candle must be red
5. The real body of the second candle surrounds the
real body of the first
6. The position of the shadows, on either candles,
doesn’t matter

Tweezers Top

Tweezers Top Candle Pattern

Bearish reversal

1. Two candle pattern
2. Market must be in an uptrend
3. The first and the second candle have the same high

Tweezers Bottom

Tweezers Bottom Candle Pattern

Bullish reversal

1. Two candle pattern
2. Market must be in a downtrend 
3. The first and the second candle have the same low

Dark Cloud Cover

Dark Cloud Cover Candle Pattern

Bearish reversal

1. Two candle pattern
2. Market must be in an uptrend
3. The first candle must be green
4. The second candle must be red
5. The market gaps higher on the open of the second
candle
6. The real body of the second candle must close into
the body of the first candle

Piercing Pattern

Piercing Pattern Candlestick Pattern

Bullish reversal

1. Two candle pattern
2. Market must be in a downtrend. The first candle must be red
4. The second candle must be green
5. The market gaps lower on the open of the second
candle
6. The real body of the second candle must close into
the body of the first candle

Bullish Harami

Bullish Harami Candle Pattern

bullish reversal

1. Two candle pattern
2. Market must be in a downtrend
3. The first candle must be red
4. There’s a gap high between the two candles
5. The second candle has a very small real body,
the color is not important

Bearish Harami

Dark Cloud Cover Candle Pattern

Bearish reversal

1. Two candle pattern
2. Market must be in an uptrend
3. The first candle must be green
4. There’s a gap low between the two candles
5. The second candle has a very small real body,
the color is not important

Three candlestick patterns

Rising three method

Bullish continuation

1. Composed of 5 candles
2. The market must be in an uptrend
3. The 1st and the 5th candle must be long green candles
4. The three candles in the middle must be small
candles, ideally dojis or small red candles.

Falling three method

Falling three method

Bearish continuation

1. Composed of 5 candles
2. The market must be in a downtrend
3. The 1st and the 5th candle must be long red candles
4. The three candles in the middle must be small
candles, ideally dojis or small green candles.

Master Candle

Bullish or Bearish continuation

1. Composed of 5 or more candles (max 11)
2. It is like a falling or rising three method with more
candles in the second phase

Scroll to Top