Candlestick Patterns Every Trader Should Know
Inline illustrations + quick signals. Use as a reference or embed on your learning pages.
Hammer
Bullish Reversal
Small body near top and a long lower wick after a downtrend. Shows buyers stepping in after selling pressure.
Signal: Potential bullish reversal — consider long setup with confirmation.
Hanging Man
Bearish Reversal
Appears at the top of an uptrend: small body at top and long lower shadow — shows possible shift from buyers to sellers.
Signal: Caution — possible trend change to downside after confirmation.
Inverted Hammer
Bullish Reversal
Small body near bottom with long upper wick after a downtrend — suggests buyers tried to push price higher.
Signal: Watch for bullish confirmation next candle.
Shooting Star
Bearish Reversal
Long upper shadow and small body near low of the candle at the top of an uptrend — indicates selling pressure at higher prices.
Signal: Look for confirmation of bearishness; risk reversal.
Bullish Engulfing
Strong Bullish Reversal
A large bullish candle fully engulfs previous small bearish candle after a downtrend — strong sign buyers regained control.
Signal: Bullish reversal; consider long after confirmation.
Bearish Engulfing
Strong Bearish Reversal
A large bearish candle engulfs previous bullish candle at the top of an uptrend — sellers overwhelm buyers.
Signal: Possible downside; wait for confirmation.
Morning Star
Bullish Reversal (3-candle)
Three-candle pattern: big bear, small indecision candle, then big bull — classic reversal signal after downtrend.
Signal: Strong reversal if volume confirms.
Evening Star
Bearish Reversal (3-candle)
Opposite of Morning Star — uptrend top + indecision + strong bearish close — signals a trend top.
Signal: Confirm with next bearish candle and volume.
Piercing Line
Bullish Reversal
A bullish candle opens below the prior close and closes above midpoint of prior bearish candle — signals buying pressure.
Signal: Bullish bias; best when followed by another strong green candle.
Dark Cloud Cover
Bearish Reversal
Bearish candle opens above prior close but closes below midpoint of prior bullish candle — bearish sign at top.
Signal: Watch for follow-through to confirm trend change.
Bullish Harami
Bullish Reversal (two-candle)
A small bullish candle is contained within the prior large bearish candle — suggests indecision then potential reversal.
Signal: Confirmation needed; not as strong as engulfing.
Bearish Harami
Bearish Reversal (two-candle)
Small bearish candle inside prior larger bullish candle — can signal weakening bulls at a top.
Signal: Wait for confirmatory bearish move.
Three White Soldiers
Strong Bullish Continuation/Reversal
Three consecutive long bullish candles with higher closes — strong bullish confirmation after a bottom.
Signal: Bullish momentum — follow trend while stops are respected.
Three Black Crows
Strong Bearish Continuation/Reversal
Three long bearish candles in succession with lower closes — strong sell-side momentum after a top.
Signal: Bearish momentum — consider protective actions.
Doji (Long-legged)
Indecision / Reversal Signal
Open and close are almost equal, with long wicks — indicates market indecision and possible reversal when at trend extremes.
Signal: Neutral — wait for confirmation direction after a Doji.
Dragonfly Doji
Bullish Reversal (at bottom)
Very long lower wick, open & close at or near high — shows buyers reclaimed price after selling, bullish at bottoms.
Signal: Bullish if appears after downtrend with confirmation.
Gravestone Doji
Bearish Reversal (at top)
Open & close at/near low with long upper shadow — shows buyers failed to hold highs; bearish at tops.
Signal: Bearish if at the top with follow-through.
Spinning Top
Indecision / Pause
Small body with upper and lower shadows — market uncertainty; often signals pause in trend or upcoming reversal if at extremes.
Signal: Neutral — require follow-up candle for direction.
Tweezer Top
Bearish Reversal
Two candles with similar highs at top of uptrend — suggests resistance and possible reversal.
Signal: Look for confirming break to downside.
Tweezer Bottom
Bullish Reversal
Two candles with similar lows after a downtrend — indicates support and potential reversal to the upside.
Signal: Watch for bullish follow-through.
Marubozu
Strong Momentum Candle
A candle with little or no shadow (open = low & close = high for bullish), showing strong directional conviction.
Signal: Directional momentum — can continue trend strongly in that direction.
Tips: Always use these patterns alongside volume, support/resistance, and your risk management rules. Candle patterns are best used as part of a broader trading plan — they are signals, not guarantees.