Candlestick Patterns
Read the story behind every candle. Learn to identify and trade the most important single-candle and multi-candle reversal patterns used by professional traders across all markets and timeframes.
14 free comprehensive guides
Why Candlestick Patterns Matter
Japanese candlestick charting, developed by rice trader Munehisa Homma in the 1700s, remains the most popular way to visualise price action more than 250 years later. Each candlestick tells a story: where the battle between buyers and sellers began (open), how far each side pushed (high and low), and who won by the close. Patterns formed by one, two, or three candles signal potential reversals or continuations with remarkable consistency.
The power of candlestick patterns lies in what they reveal about market psychology. A hammer at support shows that sellers pushed price lower during the session but buyers absorbed all the selling and drove price back up by the close — a clear sign of demand. An evening star after an extended uptrend shows that buyers are exhausting and sellers are taking control across three consecutive sessions.
Candlestick patterns work across every market (forex, stocks, crypto, commodities) and every timeframe. Higher timeframes (daily, weekly) produce more reliable signals than lower timeframes. The guides below cover the essential patterns every trader should know, from simple single-candle signals like the doji and hammer to powerful multi-candle patterns like the morning star and engulfing.
Bullish Reversal Patterns
Appear at the bottom of downtrends and signal potential upward reversal. Key patterns: Hammer, Inverted Hammer, Bullish Engulfing, Morning Star, Piercing Line, Tweezer Bottoms. Look for these at support levels with increasing volume.
Bearish Reversal Patterns
Appear at the top of uptrends and signal potential downward reversal. Key patterns: Shooting Star, Hanging Man, Bearish Engulfing, Evening Star, Dark Cloud Cover, Tweezer Tops. Look for these at resistance levels after extended moves.
Important: No candlestick pattern is 100% reliable. Always confirm patterns with context: Is the pattern at a key support or resistance level? Does volume support the signal? Is the pattern on a higher timeframe? A hammer at a random price level is far less significant than a hammer at a major weekly support zone.
All Candlestick Patterns Guides
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