Top Reversal Candlestick Patterns (with Examples)
This guide summarizes the most important reversal candlestick patterns used in technical analysis.
These patterns help traders identify potential reversals in market trends and make better entry/exit
decisions.
Hammer (Bullish Reversal)
Description: A small body with a long lower wick at the bottom of a downtrend. Indicates potential
bullish reversal.
Confirmation: Next candle closes above the hammer's body.
Inverted Hammer (Bullish Reversal)
Description: Occurs at the bottom of a downtrend with a long upper wick. Signals potential reversal
to the upside.
Confirmation: Next candle closes above the inverted hammer.
Hanging Man (Bearish Reversal)
Description: Looks like a hammer but appears at the top of an uptrend. Suggests selling pressure.
Confirmation: Next candle closes below the hanging man's body.
Shooting Star (Bearish Reversal)
Description: Small body with a long upper wick at the top of an uptrend. Signals potential reversal to
the downside.
Confirmation: Next candle closes below the shooting star.
Bullish Engulfing (Bullish Reversal)
Description: A small red candle followed by a large green candle that completely engulfs the red
one.
Confirmation: Engulfing candle closes above previous highs.
Bearish Engulfing (Bearish Reversal)
Description: A small green candle followed by a large red candle that engulfs it.
Confirmation: Engulfing candle closes below previous lows.
Morning Star (Bullish Reversal)
Description: Three candles: a large red, a small-bodied candle, then a large green candle.
Confirmation: Green candle closes above 50% of red candle.
Evening Star (Bearish Reversal)
Description: Three candles: a large green, a small-bodied candle, then a large red candle.
Confirmation: Red candle closes below 50% of green candle.
Doji (Indecision / Reversal (context dependent))
Description: Small body with wicks on both sides. Shows indecision.
Confirmation: Next candle closes strongly in direction of breakout.
Advanced/Nuanced Reversal Patterns
Marubozu (Strong Momentum (Trend Continuation))
Description: A long candle with no wicks. Indicates strong bullish or bearish momentum. Useful for
confirming trend continuation.
Confirmation: Appears after breakout or trend pullback. Use with volume.
Bullish/Bearish Kicker (Rare but Powerful Reversal)
Description: A gap between two candles in opposite directions. Very rare in crypto but strong in
stocks/forex.
Confirmation: Requires a gap and immediate strong movement in the opposite direction.
Harami / Harami Cross (Potential Reversal (Weak))
Description: A small candle within the range of the previous large candle. Shows slowing
momentum.
Confirmation: Needs confirmation candle closing beyond harami pattern.
Tweezer Tops / Bottoms (Double Rejection Reversal)
Description: Two candles with same highs (tops) or same lows (bottoms). Shows double rejection.
Confirmation: Best near support/resistance with high volume confirmation.
Three White Soldiers / Three Black Crows (Trend Reversal / Continuation)
Description: Three consecutive bullish (white soldiers) or bearish (black crows) candles. Strong
momentum signal.
Confirmation: Best after a clear reversal or breakout. Use with RSI/volume.
