Comprehensive Candlestick Patterns Guide
Bullish Engulfing
A Bullish Engulfing pattern occurs when a small red (bearish) candlestick is followed by a large
green (bullish) candlestick that completely 'engulfs' the red one. This pattern typically signals a
potential reversal from a downtrend to an uptrend.
Bearish Engulfing
A Bearish Engulfing pattern forms when a small green (bullish) candlestick is followed by a large red
(bearish) candlestick that completely covers the green one. It usually signals a reversal from an
uptrend to a downtrend.
Hammer
A Hammer candlestick has a small body at the top with a long lower shadow. It often appears after a
downtrend and signals a potential reversal to the upside.
Shooting Star
A Shooting Star has a small body at the bottom with a long upper shadow. It typically appears after
an uptrend and suggests a potential bearish reversal.
Doji
A Doji occurs when the opening and closing prices are virtually equal, forming a cross or plus sign. It
signifies market indecision and can indicate a possible reversal or continuation depending on
context.
Morning Star
The Morning Star is a three-candle pattern that signals a bullish reversal. It consists of a long red
candle, followed by a small-bodied candle, and then a long green candle.
Evening Star
The Evening Star is a bearish reversal pattern composed of three candles: a long green candle, a
small-bodied candle, and a long red candle. It typically occurs at the top of an uptrend.
Inverted Hammer
The Inverted Hammer looks like an upside-down hammer with a small body at the bottom and a long
upper shadow. It often signals a potential reversal to the upside after a downtrend.
Hanging Man
The Hanging Man is similar to the Hammer but appears after an uptrend. It has a small body and a
long lower shadow, indicating potential weakness in the uptrend and a possible reversal to the
downside.
Spinning Top
A Spinning Top has a small body with upper and lower shadows of similar length. It shows
indecision in the market, where neither buyers nor sellers are in control.
Marubozu
A Marubozu is a candlestick with no shadows, meaning it opens at the high or low and closes at the
opposite end. A bullish Marubozu indicates strong buying pressure; a bearish Marubozu indicates
strong selling pressure.
Three White Soldiers
Three White Soldiers is a bullish reversal pattern consisting of three long green candlesticks in a
row, each closing higher than the previous. It signals strong buying momentum.
Three Black Crows
Three Black Crows is a bearish reversal pattern made up of three consecutive long red candlesticks,
each closing lower than the previous one. It signals strong selling pressure.
Piercing Line
The Piercing Line is a two-candle bullish reversal pattern. A long red candle is followed by a green
candle that opens lower but closes more than halfway up the red candle. It indicates buying
pressure.
Dark Cloud Cover
The Dark Cloud Cover is a bearish reversal pattern. A long green candle is followed by a red candle
that opens higher but closes below the midpoint of the green candle. It signals selling pressure.
Harami
A Harami is a two-candle pattern where a small candle is completely within the range of the previous
larger candle. A Bullish Harami suggests a potential reversal to the upside; a Bearish Harami
suggests a potential reversal to the downside.
