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Jul 27, 2025 • 25 min read

Complete Candlestick Patterns Guide

Master the complete collection of candlestick patterns - from basic hammer and doji formations to advanced three-candle reversal patterns. Learn to identify high-probability trading opportunities with proven success rates and professional trading strategies.

Complete Guide to 59 Candlestick Patterns for Trading Success

What Are Candlestick Patterns?

Candlestick patterns are visual representations of price movements within a specific time frame displayed on a candlestick chart. Each candlestick shows four key pieces of information: the opening price, the closing price, the highest price, and the lowest price during the period.

Originally developed by Japanese rice traders in the 18th century, candlestick analysis has become one of the most powerful tools in modern technical analysis. These patterns work across all timeframes and markets, from forex and stocks to cryptocurrencies and commodities, providing insights into market psychology and potential future price movements.

Understanding Candlestick Anatomy

Candlestick Anatomy - Body, Wicks, Open, High, Low, Close

Before diving into the 59 specific patterns, it's essential to understand the basic structure of a candlestick:

  • Body: The thick part representing the difference between opening and closing prices
  • Upper Shadow (Wick): The thin line above the body showing the highest price reached
  • Lower Shadow (Wick): The thin line below the body showing the lowest price reached
  • Color: Green/white for bullish candles (close > open), red/black for bearish candles (close < open)

Complete List of 59 Candlestick Patterns

This comprehensive table lists all 59 candlestick patterns recognized by professional traders worldwide. Each pattern is categorized by its signal type and includes a detailed description of its market psychology.

#Candlestick PatternSignalDescription
1Hammer PatternBullish ReversalSmall body near the top of the candlestick with a long lower wick, indicating buying pressure overcoming selling pressure.
2Inverted Hammer PatternBullish ReversalSmall body with a long upper wick after a downtrend, indicating resistance but potential for upward movement.
3Piercing Line PatternBullish ReversalTwo-candlestick pattern where the second candlestick closes above the midpoint of the first, signaling a shift to bullish sentiment.
4Bullish Engulfing PatternBullish ReversalA small bearish candle followed by a larger bullish candle that engulfs the previous one, signaling a shift in control.
5Bullish Spinning Top PatternBullish ReversalSmall body and long wicks on both sides, showing indecision but weakening selling pressure after a downtrend.
6The Morning Star PatternBullish ReversalThree-candlestick pattern with a long bearish, a small-bodied candlestick, and a long bullish one, indicating a bullish reversal.
7Three White Soldiers PatternBullish ContinuationThree consecutive long bullish candles with small or no wicks, signaling strong buying pressure and uptrend continuation.
8Three Inside Up PatternBullish ReversalThree-candlestick pattern with a long bearish, a smaller bullish, and a third bullish that closes above the first, showing a reversal.
9Bullish Harami PatternBullish ReversalA small bullish candle within the body of a preceding large bearish candle, signaling weakening selling pressure.
10Tweezer Bottom PatternBullish ReversalTwo candlesticks with matching lows, indicating strong support and a potential upward reversal.
11Bullish Counterattack PatternBullish ReversalBearish followed by a bullish candlestick that closes at the same level as the previous candle, signaling reversal.
12Bullish Kicker PatternBullish ReversalBullish candle gapping up and continuing upward after a bearish candle, indicating strong reversal to the upside.
13Bullish Abandoned Baby PatternBullish ReversalThree-candle pattern with a long bearish, doji, and bullish candle gapping up, signaling strong reversal.
14Morning Star Doji PatternBullish ReversalSimilar to the morning star pattern but includes a doji as the middle candle, indicating indecision before reversal.
15Dragonfly Doji PatternBullish ReversalA doji with a long lower wick, indicating buying pressure overcoming selling pressure at the bottom of a downtrend.
16Bullish Tri-Star PatternBullish ReversalThree doji candles in a row, signaling market indecision but potential for reversal at the bottom of a downtrend.
17Bullish Hikkake PatternBullish ReversalInside bar pattern followed by a bullish breakout, indicating reversal after a period of consolidation or indecision.
18Concealing Baby Swallow PatternBullish ReversalFour bearish candles followed by a bullish candle after exhaustion, indicating a potential reversal to the upside.
19Unique Three Rivers PatternBullish ReversalThree-candlestick pattern indicating buying pressure overcoming selling after a downtrend, signaling potential reversal.
20Hanging Man PatternBearish ReversalSmall body at the top of the candlestick with a long lower wick, signaling sellers are gaining control.
21Dark Cloud Cover PatternBearish ReversalTwo-candlestick pattern with a bearish candle closing below the midpoint of the previous bullish candle.
22Bearish Engulfing PatternBearish ReversalSmall bullish candle followed by a larger bearish candle that completely engulfs the previous one.
23The Evening Star PatternBearish ReversalThree-candlestick pattern with a long bullish, a small-bodied, and a bearish candle signaling reversal.
24Three Black Crows PatternBearish ReversalThree consecutive long bearish candlesticks with small or no wicks, indicating strong selling pressure.
25Three Inside Down PatternBearish ReversalThree-candlestick pattern with a long bullish, a smaller bearish, and a third bearish candle signaling reversal.
26Bearish Harami PatternBearish ReversalA small bearish candle forms within the body of a preceding large bullish candle, signaling weakening buying pressure.
27Shooting Star PatternBearish ReversalSmall body with a long upper wick, signaling resistance and a potential downward reversal.
28Tweezer Top PatternBearish ReversalTwo candlesticks with matching highs, indicating strong resistance and a potential downward reversal.
29Bearish Counterattack PatternBearish ReversalBullish candle followed by a bearish candle that closes at the same level, signaling reversal.
30Bearish Spinning Top PatternBearish ReversalSmall body with long wicks on both sides, signaling indecision but weakening buying pressure after an uptrend.
31Bearish Kicker PatternBearish ReversalBullish candle followed by a bearish candle that opens below the previous close, signaling strong reversal.
32Evening Star Doji PatternBearish ReversalEvening star pattern with a doji as the middle candle, signaling indecision before a bearish reversal.
33Bearish Abandoned Baby PatternBearish ReversalThree-candle pattern with a long bullish, a doji, and a bearish candle gapping down, signaling strong reversal.
34Gravestone Doji PatternBearish ReversalA doji with a long upper wick, signaling selling pressure overcoming buying at the top of an uptrend.
35Bearish Tri-Star PatternBearish ReversalThree doji candles in a row, signaling indecision but potential for reversal at the top of an uptrend.
36Deliberation PatternBearish ReversalThree bullish candles progressively getting smaller, signaling weakening buying pressure before a reversal.
37Upside Gap Two Crows PatternBearish ReversalThree-candle bearish pattern with a gap up followed by two bearish candles, signaling trend reversal.
38Advance Block PatternBearish ReversalThree bullish candles progressively getting smaller, signaling weakening buying pressure before reversal.
39Falling Three Methods PatternBearish ContinuationLong bearish candle followed by three smaller bullish candles within its range, and another long bearish candle.
40Rising Three Methods PatternBullish ContinuationLong bullish candle followed by three smaller bearish candles within its range, and another long bullish candle.
41Upside Tasuki Gap PatternBullish ContinuationA bullish candlestick gaps up from the previous one, followed by a bearish candlestick that partially fills the gap.
42Downside Tasuki Gap PatternBearish ContinuationA bearish candlestick gaps down from the previous one, followed by a bullish candlestick that partially fills the gap.
43Rising Window PatternBullish ContinuationGap between two bullish candles, indicating strong buying pressure and continuation of the uptrend.
44Falling Window PatternBearish ContinuationGap between two bearish candles, indicating strong selling pressure and continuation of the downtrend.
45Three Outside Up PatternBullish ContinuationA bearish candle followed by a larger bullish candle that engulfs it, and another bullish candle closing higher.
46Three Outside Down PatternBearish ContinuationA bullish candle followed by a larger bearish candle that engulfs it, and another bearish candle closing lower.
47White Marubozu PatternBullish ContinuationBullish candle with no wicks, opening at its low and closing at its high, indicating strong buying pressure.
48Black Marubozu PatternBearish ContinuationBearish candle with no wicks, opening at its high and closing at its low, indicating strong selling pressure.
49On-Neck PatternBearish ContinuationA bearish candle followed by a smaller bullish candle closing near the low of the previous candle.
50Mat-Hold PatternBullish ContinuationA long bullish candle followed by three smaller bearish candles, and then another bullish candle closing higher.
51Long Legged Doji PatternNeutralA small body with long wicks on both sides, signaling volatility and indecision in the market.
52Cup and Handle PatternBullishIndicates a continuation of an uptrend; shaped like a teacup with a handle.
53Rounding Bottom PatternBullishSuggests a gradual reversal from a downtrend to an uptrend, forming a "U" shape.
54Rounding Top PatternBearishSignals a potential reversal from an uptrend to a downtrend, forming an "n" shape.
55Triple Top PatternBearishRepresents three failed attempts to break resistance, often leading to a reversal downward.
56Bullish Stick Sandwich PatternBullishSignals a potential reversal from a downtrend to an uptrend, as two bearish candles enclose a bullish candle at the same closing level.
57Bearish Stick Sandwich PatternBearishSuggests a reversal from an uptrend to a downtrend, where two bullish candles enclose a bearish candle at the same closing level.
58Bullish Breakaway PatternBullishIndicates a shift from a downtrend to an uptrend, with a strong bullish breakout after a series of smaller bearish candles.
59Bearish Breakaway PatternBearishMarks a transition from an uptrend to a downtrend, with a strong bearish breakout following a sequence of smaller bullish candles.

Complete Candlestick Pattern Analysis

Bullish Reversal Patterns (1-19)

1Hammer Pattern

Bullish Reversal

The hammer pattern appears at the bottom of downtrends and signals potential bullish reversal. It shows that despite initial selling pressure, buyers managed to push the price back up significantly.

Formation:

Small body near the top with a long lower wick (at least 2x the body size)

Market Psychology:

Sellers initially drove price down, but buyers strongly recovered, showing potential trend reversal

Trading Strategy:

Enter long positions after confirmation from next bullish candle, especially at support levels

Hammer Candlestick Pattern - Bullish Reversal Signal
Inverted Hammer Pattern - Bullish Reversal Signal

2Inverted Hammer Pattern

Bullish Reversal

The inverted hammer appears after a downtrend and suggests potential bullish reversal. Despite the long upper wick showing resistance, it indicates buying interest.

Formation:

Small body with long upper wick, appearing after a downtrend

Market Psychology:

Buyers attempted to push price higher but met resistance, indicating potential upward movement

Trading Strategy:

Wait for confirmation from subsequent bullish candle before entering long positions

Bullish Reversal Patterns (1-19)

3Piercing Line Pattern

Bullish Reversal

A two-candlestick formation signaling a potential bullish reversal. The second candlestick opens lower but closes above the midpoint of the previous bearish candlestick.

Formation:

First candlestick is bearish, second opens lower but closes above 50% of first candle

Market Psychology:

Suggests a strong shift in market sentiment from bearish to bullish

Trading Strategy:

Look for this pattern after a clear downtrend for best results

Piercing Line Pattern - Bullish Reversal Signal
Bullish Engulfing Pattern - Strong Reversal Signal

4Bullish Engulfing Pattern

Bullish Reversal

A reversal signal with a small bearish candlestick followed by a larger bullish candlestick that completely engulfs the previous one.

Formation:

Small bearish candle completely engulfed by larger bullish candle

Market Psychology:

Indicates that buyers have taken control, overpowering the sellers

Trading Strategy:

Strong signal suggesting potential upward movement

5Bullish Spinning Top Pattern

Bullish Reversal

Small body with long wicks on both sides appearing after a downtrend. Indicates market indecision with weakening selling pressure.

Formation:

Small body with long upper and lower wicks of similar length

Market Psychology:

Shows indecision but selling pressure is weakening

Trading Strategy:

Suggests potential bullish reversal is imminent, wait for confirmation

Bullish Spinning Top Pattern
Morning Star Pattern - Three Candle Bullish Reversal

6Morning Star Pattern

Bullish Reversal

Three-candlestick bullish reversal pattern consisting of a long bearish candle, small-bodied star, and long bullish candle.

Formation:

Long bearish candle, small star that gaps down, long bullish candle closing near midpoint of first

Market Psychology:

Indicates a shift from selling to buying pressure

Trading Strategy:

Strong reversal signal, enter long after pattern completion

7Three White Soldiers Pattern

Bullish Continuation

Three consecutive long bullish candlesticks with each opening within the previous body and closing near its high.

Formation:

Three consecutive long bullish candles with small wicks

Market Psychology:

Indicates strong buying pressure and bullish momentum

Trading Strategy:

Suggests potential start of sustained uptrend

Three White Soldiers Pattern
Three Inside Up Pattern

8Three Inside Up Pattern

Bullish Reversal

Bullish reversal signal with long bearish candlestick, smaller bullish within first body, and third bullish closing above first.

Formation:

Long bearish, smaller bullish inside, third bullish above first close

Market Psychology:

Shows gradual shift from bearish to bullish sentiment

Trading Strategy:

Confirms bullish reversal, enter long positions

9Bullish Harami Pattern

Bullish Reversal

A small bullish candle within the body of a preceding large bearish candle, suggesting weakening selling pressure.

Formation:

Small bullish candle completely contained within large bearish candle body

Market Psychology:

Selling pressure weakening, buyers may be gaining control

Trading Strategy:

Potential trend reversal from bearish to bullish

Bullish Harami Pattern
Tweezer Bottom Pattern

10Tweezer Bottom Pattern

Bullish Reversal

Two candlesticks with matching lows, indicating the downtrend has found a strong support level.

Formation:

Two consecutive candlesticks touching the same low point

Market Psychology:

Strong support level found, potential buying interest emerging

Trading Strategy:

Potential upward price reversal from support level

11Bullish Counterattack Pattern

Bullish Reversal

Bearish candle followed by a bullish candlestick that closes at the same level as the previous candle.

Formation:

Bearish candle followed by bullish candle closing at identical level

Market Psychology:

Buyers have countered the selling pressure effectively

Trading Strategy:

Potential trend reversal signal, consider long positions

Bullish Counterattack Pattern
Bullish Kicker Pattern

12Bullish Kicker Pattern

Bullish Reversal

Bullish candle gapping up and continuing upward after a bearish candle, indicating strong sentiment shift.

Formation:

Bearish candle followed by bullish candle that gaps up and moves higher

Market Psychology:

Significant shift in market sentiment from bearish to bullish

Trading Strategy:

Strong potential for upward trend continuation

13Bullish Abandoned Baby Pattern

Bullish Reversal

Three-candle pattern with long bearish, doji, and bullish candle gapping up, signaling strong sentiment shift.

Formation:

Long bearish candle, doji gapping down, bullish candle gapping up

Market Psychology:

Strong shift in market sentiment from bearish to bullish

Trading Strategy:

Potential significant trend reversal signal

Bullish Abandoned Baby Pattern
Morning Star Doji Pattern

14Morning Star Doji Pattern

Bullish Reversal

Similar to morning star pattern but includes a doji as the middle candle, indicating indecision before reversal.

Formation:

Long bearish candle, doji candle, long bullish candle

Market Psychology:

Market indecision followed by bullish sentiment emergence

Trading Strategy:

Strong reversal signal with doji confirmation

15Dragonfly Doji Pattern

Bullish Reversal

A doji with a long lower wick, indicating buying pressure overcoming selling pressure at the bottom of a downtrend.

Formation:

Open and close at top, long lower shadow showing rejection of lower prices

Market Psychology:

Sellers pushed down but buyers recovered completely

Trading Strategy:

Most effective at major support levels, watch for bullish follow-through

Dragonfly Doji Pattern

16Bullish Tri-Star Pattern

Bullish Reversal

Three doji candles in a row, signaling market indecision but potential for reversal at the bottom of a downtrend.

Formation:

Three consecutive doji candles showing extreme indecision

Market Psychology:

Market is at a standstill, often preceding reversal

Trading Strategy:

Wait for strong bullish confirmation before entering

Bullish Tri-Star Pattern
Bullish Hikkake Pattern

17Bullish Hikkake Pattern

Bullish Reversal

Inside bar pattern followed by a bullish breakout, indicating reversal after a period of consolidation or indecision.

Formation:

Inside bar followed by upside breakout above the mother bar

Market Psychology:

Brief consolidation before bulls take control

Trading Strategy:

Enter on breakout with stop below the inside bar low

18Concealing Baby Swallow Pattern

Bullish Reversal

Four bearish candles followed by a bullish candle after exhaustion, indicating a potential reversal to the upside.

Formation:

Four consecutive bearish candles with fourth being a marubozu

Market Psychology:

Selling exhaustion creates opportunity for reversal

Trading Strategy:

Rare pattern - wait for additional bullish confirmation

Concealing Baby Swallow Pattern
Unique Three Rivers Pattern

19Unique Three Rivers Pattern

Bullish Reversal

Three-candle bullish reversal pattern found at market bottoms, representing a shift from bearish to bullish sentiment.

Formation:

Long black candle, hammer, small white candle covering the hammer

Market Psychology:

Bears lose steam as bulls gradually take control

Trading Strategy:

Enter long on close above pattern high with tight stop

Bearish Reversal Patterns (20-38)

Hanging Man Pattern

20Hanging Man Pattern

Bearish Reversal

Small body at the top of the candlestick with a long lower wick, signaling sellers are gaining control at trend tops.

Formation:

Small body near top with long lower wick, appears after uptrend

Market Psychology:

Despite recovery, underlying selling pressure is building

Trading Strategy:

Wait for bearish confirmation before entering short positions

21Dark Cloud Cover Pattern

Bearish Reversal

Two-candlestick pattern with a bearish candle closing below the midpoint of the previous bullish candle.

Formation:

Bullish candle followed by bearish candle opening above but closing below 50% of first

Market Psychology:

Initial optimism overcome by selling pressure

Trading Strategy:

Strong bearish signal, place stop above dark cloud high

Dark Cloud Cover Pattern
Bearish Engulfing Pattern

22Bearish Engulfing Pattern

Bearish Reversal

Small bullish candle followed by a larger bearish candle that completely engulfs the previous one.

Formation:

Small bullish candle completely engulfed by larger bearish candle

Market Psychology:

Sellers overwhelm buyers, taking control of the market

Trading Strategy:

Strong bearish signal, consider short positions

23Evening Star Pattern

Bearish Reversal

Three-candlestick pattern with a long bullish, a small-bodied, and a bearish candle signaling reversal.

Formation:

Long bullish candle, small star, long bearish candle

Market Psychology:

Bullish momentum exhausted, bearish sentiment emerging

Trading Strategy:

Strong reversal signal, increasing volume strengthens pattern

Evening Star Pattern
Three Black Crows Pattern

24Three Black Crows Pattern

Bearish Reversal

Three consecutive long bearish candlesticks with small or no wicks, indicating strong selling pressure.

Formation:

Three consecutive long bearish candles opening within previous body

Market Psychology:

Sustained and intense selling pressure

Trading Strategy:

Strong continuation signal, bearish trend likely to persist

25Three Inside Down Pattern

Bearish Reversal

Three-candlestick pattern with a long bullish, a smaller bearish, and a third bearish candle signaling reversal.

Formation:

Long bullish, smaller bearish inside, third bearish below first close

Market Psychology:

Gradual shift from bullish to bearish sentiment

Trading Strategy:

Confirms bearish reversal, consider short positions

Three Inside Down Pattern
Bearish Harami Pattern

26Bearish Harami Pattern

Bearish Reversal

A small bearish candle forms within the body of a preceding large bullish candle, signaling weakening buying pressure.

Formation:

Small bearish candle completely contained within large bullish candle body

Market Psychology:

Buying pressure weakening, sellers may be gaining control

Trading Strategy:

Potential trend reversal from bullish to bearish

27Shooting Star Pattern

Bearish Reversal

Small body with a long upper wick, signaling resistance and a potential downward reversal.

Formation:

Small body with long upper shadow, little to no lower wick

Market Psychology:

Bulls tried to rally but bears took control

Trading Strategy:

Most effective at resistance levels, enter short on break below low

Shooting Star Pattern
Tweezer Top Pattern

28Tweezer Top Pattern

Bearish Reversal

Two candlesticks with matching highs, indicating strong resistance and a potential downward reversal.

Formation:

Two consecutive candlesticks touching the same high point

Market Psychology:

Strong resistance level found, selling pressure emerging

Trading Strategy:

Potential downward reversal from resistance level

29Bearish Counterattack Pattern

Bearish Reversal

Bullish candle followed by a bearish candle that closes at the same level, signaling reversal.

Formation:

Bullish candle followed by bearish candle closing at identical level

Market Psychology:

Sellers counter initial buying pressure

Trading Strategy:

Potential reversal signal, consider short positions

Bearish Counterattack Pattern
Bearish Spinning Top Pattern

30Bearish Spinning Top Pattern

Bearish Reversal

Small body with long wicks on both sides, signaling indecision but weakening buying pressure after an uptrend.

Formation:

Small body with long upper and lower wicks

Market Psychology:

Indecision with weakening buying pressure

Trading Strategy:

Wait for bearish confirmation

31Bearish Kicker Pattern

Bearish Reversal

Bullish candle followed by a bearish candle that opens below the previous close, signaling strong reversal.

Formation:

Bullish candle followed by gapping down bearish candle

Market Psychology:

Sudden shift from bullish to bearish sentiment

Trading Strategy:

Strong bearish signal with gap confirmation

Bearish Kicker Pattern
Evening Star Doji Pattern

32Evening Star Doji Pattern

Bearish Reversal

Evening star pattern with a doji as the middle candle, signaling indecision before a bearish reversal.

Formation:

Long bullish candle, doji star, long bearish candle

Market Psychology:

Bullish momentum exhausted, indecision before bearish turn

Trading Strategy:

Strong reversal with doji confirmation

33Bearish Abandoned Baby Pattern

Bearish Reversal

Three-candle pattern with a long bullish, a doji, and a bearish candle gapping down, signaling strong reversal.

Formation:

Long bullish, doji gapping up, bearish gapping down

Market Psychology:

Dramatic sentiment shift from bullish to bearish

Trading Strategy:

Very strong reversal signal

Bearish Abandoned Baby Pattern
Gravestone Doji Pattern

34Gravestone Doji Pattern

Bearish Reversal

A doji with a long upper wick, signaling selling pressure overcoming buying at the top of an uptrend.

Formation:

Open and close at bottom, long upper shadow

Market Psychology:

Buyers pushed up but sellers recovered control

Trading Strategy:

Most effective at major resistance levels

35Bearish Tri-Star Pattern

Bearish Reversal

Three consecutive doji candles signaling extreme market indecision at the top of an uptrend, often preceding a significant reversal.

Formation:

Three doji candles appearing consecutively after an uptrend

Market Psychology:

Extreme indecision with neither bulls nor bears in control

Trading Strategy:

Wait for bearish confirmation before entering short positions

Bearish Tri-Star Pattern
Deliberation Pattern

36Deliberation Pattern

Bearish Reversal

Three progressively smaller bullish candles after an uptrend, indicating weakening buying momentum and potential reversal.

Formation:

Three bullish candles each smaller than the previous one

Market Psychology:

Diminishing buying pressure suggests trend exhaustion

Trading Strategy:

Look for bearish confirmation to enter short positions

37Upside Gap Two Crows Pattern

Bearish Reversal

A bullish candle followed by a gap up and two bearish candles, signaling failed buying attempt and potential reversal.

Formation:

Bullish candle, gap up, then two consecutive bearish candles

Market Psychology:

Initial optimism followed by selling pressure taking control

Trading Strategy:

Enter short on completion of second bearish candle

Upside Gap Two Crows Pattern
Advance Block Pattern

38Advance Block Pattern

Bearish Reversal

Three bullish candles with progressively smaller bodies and longer upper wicks, showing weakening upward momentum.

Formation:

Three bullish candles with decreasing bodies and increasing upper wicks

Market Psychology:

Bulls struggling to maintain control as selling pressure increases

Trading Strategy:

Warning sign for trend exhaustion, prepare for bearish reversal

Continuation Patterns (39-59)

39Falling Three Methods Pattern

Bearish Continuation

Long bearish candle followed by three smaller bullish candles within its range, and another long bearish candle.

Formation:

Long bearish, three small bullish consolidation, final long bearish

Market Psychology:

Brief pause in downtrend before continuation

Trading Strategy:

Strong continuation signal when complete

Falling Three Methods Pattern
Rising Three Methods Pattern

40Rising Three Methods Pattern

Bullish Continuation

Long bullish candle followed by three smaller bearish candles within its range, and another long bullish candle.

Formation:

Long bullish, three small bearish consolidation, final long bullish

Market Psychology:

Brief pause in uptrend before continuation

Trading Strategy:

Strong bullish continuation, measure target from pattern height

41Upside Tasuki Gap Pattern

Bullish Continuation

A bullish candle gaps up, followed by a bearish candle that partially fills the gap but doesn't close it completely.

Formation:

Bullish gap up, bearish candle partially filling gap

Market Psychology:

Temporary pullback in strong uptrend

Trading Strategy:

Gap remains unfilled, uptrend likely to continue

Upside Tasuki Gap Pattern
Downside Tasuki Gap Pattern

42Downside Tasuki Gap Pattern

Bearish Continuation

A bearish candle gaps down, followed by a bullish candle that partially fills the gap but doesn't close it completely.

Formation:

Bearish gap down, bullish candle partially filling gap

Market Psychology:

Brief relief rally in strong downtrend

Trading Strategy:

Gap remains open, downtrend likely to continue

43Rising Window Pattern

Bullish Continuation

A gap between two bullish candles indicating strong buying pressure and continuation of the uptrend.

Formation:

Gap up between two bullish candles

Market Psychology:

Strong bullish sentiment with buying urgency

Trading Strategy:

Gap acts as support, continuation signal

Rising Window Pattern
Falling Window Pattern

44Falling Window Pattern

Bearish Continuation

A gap between two bearish candles indicating strong selling pressure and continuation of the downtrend.

Formation:

Gap down between two bearish candles

Market Psychology:

Strong bearish sentiment with selling urgency

Trading Strategy:

Gap acts as resistance, continuation signal

45Three Outside Up Pattern

Bullish Continuation

A bearish candle followed by a larger bullish candle that engulfs it, and another bullish candle closing higher.

Formation:

Bearish candle, bullish engulfing, bullish confirmation

Market Psychology:

Bears overwhelmed by strong bullish momentum

Trading Strategy:

Strong bullish reversal/continuation signal

Three Outside Up Pattern
Three Outside Down Pattern

46Three Outside Down Pattern

Bearish Continuation

A bullish candle followed by a larger bearish candle that engulfs it, and another bearish candle closing lower.

Formation:

Bullish candle, bearish engulfing, bearish confirmation

Market Psychology:

Bulls overwhelmed by strong bearish momentum

Trading Strategy:

Strong bearish reversal/continuation signal

47White Marubozu Pattern

Bullish Continuation

A bullish candle with no wicks, opening at its low and closing at its high, indicating extremely strong buying pressure.

Formation:

Long bullish body with no upper or lower wicks

Market Psychology:

Overwhelming bullish control throughout the session

Trading Strategy:

Strong momentum signal, expect continuation

White Marubozu Pattern
Black Marubozu Pattern

48Black Marubozu Pattern

Bearish Continuation

A bearish candle with no wicks, opening at its high and closing at its low, indicating extremely strong selling pressure.

Formation:

Long bearish body with no upper or lower wicks

Market Psychology:

Overwhelming bearish control throughout the session

Trading Strategy:

Strong momentum signal, expect continuation

49On-Neck Pattern

Bearish Continuation

A bearish candle followed by a smaller bullish candle that closes near the low of the previous candle.

Formation:

Long bearish candle, small bullish closing at previous low

Market Psychology:

Weak bullish attempt fails to recover

Trading Strategy:

Bearish continuation, downtrend likely to resume

On-Neck Pattern
Mat-Hold Pattern

50Mat-Hold Pattern

Bullish Continuation

A long bullish candle followed by three smaller bearish candles, then another strong bullish candle closing higher.

Formation:

Long bullish, three small bearish, strong bullish

Market Psychology:

Brief consolidation before bullish continuation

Trading Strategy:

Strong bullish pattern, expect upward breakout

51Long Legged Doji Pattern

Neutral

A doji with very long upper and lower wicks, indicating extreme volatility and market indecision.

Formation:

Small body with very long wicks on both sides

Market Psychology:

Extreme indecision with high volatility

Trading Strategy:

Wait for direction confirmation before trading

Long Legged Doji Pattern
Cup and Handle Pattern

52Cup and Handle Pattern

Bullish Continuation

A U-shaped consolidation followed by a smaller downward drift, resembling a teacup with a handle.

Formation:

U-shaped cup followed by small handle formation

Market Psychology:

Gradual accumulation before breakout

Trading Strategy:

Enter on handle breakout with strong volume

53Rounding Bottom Pattern

Bullish Reversal

A gradual reversal pattern forming a U-shape, indicating a slow transition from downtrend to uptrend.

Formation:

Extended U-shaped bottom formation

Market Psychology:

Gradual shift from selling to buying sentiment

Trading Strategy:

Long-term bullish signal, patience required

Rounding Bottom Pattern
Rounding Top Pattern

54Rounding Top Pattern

Bearish Reversal

A gradual reversal pattern forming an inverted U-shape, indicating a slow transition from uptrend to downtrend.

Formation:

Extended inverted U-shaped top formation

Market Psychology:

Gradual shift from buying to selling sentiment

Trading Strategy:

Long-term bearish signal, patience required

55Triple Top Pattern

Bearish Reversal

Three peaks at approximately the same level, indicating strong resistance and potential bearish reversal.

Formation:

Three roughly equal peaks with valleys between

Market Psychology:

Repeated failure to break resistance

Trading Strategy:

Enter short on breakdown of support line

Triple Top Pattern
Bullish Stick Sandwich Pattern

56Bullish Stick Sandwich Pattern

Bullish Reversal

Two bearish candles with identical closes sandwiching a bullish candle, indicating potential bullish reversal.

Formation:

Bearish candle, bullish candle, bearish candle with same close

Market Psychology:

Support level tested and held

Trading Strategy:

Bullish reversal signal at support levels

57Bearish Stick Sandwich Pattern

Bearish Reversal

Two bullish candles with identical closes sandwiching a bearish candle, indicating potential bearish reversal.

Formation:

Bullish candle, bearish candle, bullish candle with same close

Market Psychology:

Resistance level tested and held

Trading Strategy:

Bearish reversal signal at resistance levels

Bearish Stick Sandwich Pattern
Bullish Breakaway Pattern

58Bullish Breakaway Pattern

Bullish Reversal

Five-candle pattern starting with a bearish candle, three smaller candles, and ending with a strong bullish candle.

Formation:

Long bearish, three small candles, strong bullish breakout

Market Psychology:

Consolidation followed by strong bullish momentum

Trading Strategy:

Enter long on final bullish candle close

59Bearish Breakaway Pattern

Bearish Reversal

Five-candle pattern starting with a bullish candle, three smaller candles, and ending with a strong bearish candle.

Formation:

Long bullish, three small candles, strong bearish breakout

Market Psychology:

Consolidation followed by strong bearish momentum

Trading Strategy:

Enter short on final bearish candle close

Bearish Breakaway Pattern

Professional Trading Strategies

Entry and Exit Rules

Entry Strategies

  • ✅ Wait for complete pattern formation
  • ✅ Confirm with volume analysis
  • ✅ Check multiple timeframe alignment
  • ✅ Enter on confirmation candle close
  • ✅ Use limit orders at key levels

Risk Management

  • 🛡️ Stop losses beyond pattern extremes
  • 🛡️ Risk maximum 1-2% per trade
  • 🛡️ Target minimum 2:1 risk-reward
  • 🛡️ Scale out at resistance/support
  • 🛡️ Trail stops with trend momentum

Advanced Pattern Combination Strategies

Multi-Pattern Confluence

The most successful traders combine multiple candlestick patterns with other technical analysis tools:

  • Pattern + Support/Resistance: 75-85% success rate when patterns form at key levels
  • Pattern + Volume: Volume confirmation increases success by 15-20%
  • Pattern + Momentum: RSI/MACD divergence adds 10-15% reliability
  • Pattern + Market Structure: Confluence with SMC concepts boosts accuracy

Trading Different Market Sessions

Market SessionBest Pattern TypesKey CharacteristicsTrading Tips
London SessionReversal PatternsHigh volatility, strong trendsFocus on major pairs, watch for breakouts
New York SessionContinuation PatternsTrend continuation, news impactTrade with trend, manage news events
Asian SessionRange PatternsLower volatility, consolidationTrade range-bound patterns, smaller positions
Session OverlapsStrong Reversal SignalsIncreased volume and volatilityBest opportunities for major moves

Key Takeaways for Trading Success

  • Pattern Context Matters: Success rates increase dramatically when patterns appear at key support/resistance levels
  • Volume Confirmation: Always check volume - higher volume on pattern completion increases reliability by 15-20%
  • Multiple Timeframe Analysis: Confirm patterns on higher timeframes before entering trades
  • Risk Management is Crucial: Never risk more than 1-2% per trade, regardless of pattern strength
  • Practice Makes Perfect: Use demo accounts to practice pattern recognition before risking real capital
  • Combine with Other Tools: Integrate candlestick patterns with momentum indicators, market structure, and sentiment analysis

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