50 Candlestick Patterns Explained With Examples: Complete Trading Guide
FiveTec Editorial Team | Published on September 11, 2026 | 10 min read
Introduction
When I started learning technical analysis, candlestick patterns were one of the first tools that helped me understand what was actually happening inside the market.
A price chart does not only show numbers. It shows the battle between buyers and sellers. Every candle tells a story about market sentiment, momentum, hesitation, fear, and confidence.
Candlestick patterns are visual formations created by one or more candles on a price chart. Traders use these patterns to identify possible trend reversals, continuation moves, and potential entry or exit opportunities.
A single candlestick represents four important price points:
- Open price
- Highest price
- Lowest price
- Closing price
The body shows the difference between the opening and closing price, while the wick shows how far buyers or sellers pushed the price during that period.
However, one important lesson I learned through years of studying charts is that candlestick patterns are not magic signals. Professional traders do not enter a trade simply because they see a pattern. They combine candlestick signals with volume, support and resistance, market structure, and risk management.
According to technical analysis experts like Steve Nison, who introduced Japanese candlestick techniques to Western traders, candlesticks are mainly a way to understand market psychology rather than simply predicting prices.
Today, candlestick patterns are still widely used across Forex, stocks, cryptocurrencies, commodities, and futures markets because they provide a quick visual understanding of price behaviour.
What Are Candlestick Patterns
A candlestick pattern is a specific formation created by one or multiple candles that may indicate a possible future price movement.
For example:
- A long bullish candle means buyers controlled the session
- A long bearish candle means sellers dominated
- A candle with long wicks shows rejection of certain price levels
- A small body candle shows market uncertainty
The Three Main Categories of Candlestick Patterns
Traders mainly divide candlestick patterns into three categories.
1. Bullish Reversal Patterns
These appear after a downtrend and suggest buyers may start gaining control.
Examples: Hammer, Morning Star, Bullish Engulfing
2. Bearish Reversal Patterns
These appear after an uptrend and suggest sellers may take control.
Examples: Shooting Star, Evening Star, Bearish Engulfing
3. Continuation Patterns
These suggest the existing trend may continue.
Examples: Rising Three Methods, Falling Three Methods, Inside Bar.
50 Candlestick Patterns Explained With Examples
1. Hammer Candlestick Pattern
Type: Bullish Reversal Pattern
The Hammer is one of the most popular bullish candlestick patterns.
What It Looks Like
- A small real body near the top
- A long lower wick
- Little or no upper wick
Market Psychology
The sellers initially pushed the price lower, but buyers stepped in strongly and recovered most of the losses before the candle closed. This shows rejection of lower prices.
Example
Imagine EUR/USD is falling from 1.1200 to 1.0800. A Hammer forms with an opening price of 1.0820, a low of 1.0750, and a closing price of 1.0815. The market tried to move lower but buyers rejected that level. If the next candle closes above the Hammer high, traders may consider a possible bullish reversal.
Trading Tip
A Hammer works better near strong support zones, previous swing lows, and oversold conditions.
2. Inverted Hammer
Type: Bullish Reversal Pattern
The Inverted Hammer looks similar to a Shooting Star but appears after a downtrend.
What It Looks Like
- Small body
- Long upper wick
- Little lower wick
Market Psychology
Buyers attempted to push the price higher, but sellers pushed it back down. Although sellers still have control, the buying pressure indicates a possible shift.
Example
Gold falls from $2,400 to $2,250. An Inverted Hammer appears where price opens at $2,255, moves to $2,300, and closes near $2,260. The candle shows buyers are entering the market. A bullish confirmation candle can indicate possible upward momentum.
3. Hanging Man
Type: Bearish Reversal Pattern
The Hanging Man looks exactly like a Hammer but appears after an uptrend.
Market Psychology
The long lower wick shows sellers attempted to take control. Although buyers recovered the price, the rejection warns that momentum may be weakening.
Example
Apple stock rises from $180 to $220. A Hanging Man forms near $220. The next candle breaks below the Hanging Man low. This may indicate sellers are becoming stronger.
4. Shooting Star
Type: Bearish Reversal Pattern
The Shooting Star appears after a strong upward movement.
Structure
- Small body
- Long upper wick
- Little lower wick
Market Psychology
Buyers pushed the price higher, but sellers rejected those higher levels.
Example
Bitcoin rises from $60,000 to $68,000. A Shooting Star forms with a high of $69,000 and a close of $67,500. The rejection at higher prices shows possible selling pressure.
5. Doji Candlestick Pattern
Type: Neutral Pattern
A Doji forms when the opening and closing prices are almost identical.
Market Psychology
Neither buyers nor sellers have clear control. The market is showing hesitation.
Example
A stock opens at $100. During the day the high reaches $104, the low touches $97, and the close returns to $100. This creates a Doji. A Doji does not automatically mean reversal. Traders usually wait for confirmation from the next candle.
6. Dragonfly Doji
Type: Bullish Reversal Pattern
The Dragonfly Doji has a long lower wick, almost no upper wick, and closes near its opening price.
Example
A stock drops from $50 to $42. During the session buyers push it back to $50. This shows strong rejection of lower prices.
7. Gravestone Doji
Type: Bearish Reversal Pattern
The Gravestone Doji is the opposite of Dragonfly Doji. It has a long upper wick and closes near its opening price.
Example
Tesla rises to $260. Sellers reject the level and price closes near $250. This may indicate weakness.
8. Spinning Top
Type: Neutral Pattern
A Spinning Top has a small body with long upper and lower wicks.
Market Psychology
Both buyers and sellers are fighting, but neither side wins.
Example
After a strong rally, a Spinning Top appears. This can warn traders that momentum is slowing.
9. Marubozu
Type: Strong Momentum Pattern
A Marubozu candle has a large body with almost no wicks.
Bullish Marubozu Example
A stock opens at $100 and closes at $115 without meaningful pullback. This shows aggressive buying.
Bearish Marubozu Example
A stock opens at $115 and closes at $100. Sellers controlled the entire session.
10. Bullish Engulfing Pattern
Type: Bullish Reversal Pattern
The Bullish Engulfing pattern consists of a small bearish candle followed by a large bullish candle that completely covers the previous candle.
Example
On Day 1 the stock closes lower at $95. On Day 2 the stock opens at $94 and closes at $102. The buyers completely reverse the previous selling pressure.
11. Bearish Engulfing Pattern
Type: Bearish Reversal Pattern
This is the opposite of Bullish Engulfing.
Example
A stock moves from $100 to $130. A small green candle forms. The next candle opens higher but closes below the previous candle's entire body. This suggests sellers are taking control.
12. Bullish Harami
Type: Bullish Reversal Pattern
A Bullish Harami contains a large bearish candle followed by a small bullish candle inside the previous candle.
Example
A stock falls for several days. A small green candle appears inside the previous red candle. This suggests selling pressure may be decreasing.
13. Bearish Harami
Type: Bearish Reversal Pattern
The opposite formation contains a large bullish candle followed by a small bearish candle inside it.
Example
A currency pair rises strongly. A small red candle forms inside the previous green candle. This warns of possible weakness.
14. Harami Cross
Type: Reversal Pattern
The second candle is a Doji inside the previous candle body.
Example
After a strong rally, a Harami Cross appears. The Doji shows uncertainty after aggressive buying.
15. Piercing Line Pattern
Type: Bullish Reversal Pattern
A Piercing Line consists of a large bearish candle followed by a bullish candle closing above the midpoint of the previous candle.
Example
Gold falls from $2,000 to $1,900. A strong bullish candle appears and closes above $1,950. This shows buyers are returning.
16. Dark Cloud Cover Pattern
Type: Bearish Reversal Pattern
The Dark Cloud Cover is a bearish candlestick pattern that usually appears after an uptrend.
What It Looks Like
It contains two candles: a strong bullish candle followed by a bearish candle that opens above the previous candle's close and closes below the midpoint of the first candle.
Market Psychology
The first candle shows strong buyer confidence. However, the next candle creates a gap higher, making traders believe the uptrend will continue. During the session, sellers aggressively enter and push the price lower. This shows that buyers are losing control.
Example
Suppose EUR/USD moves from 1.0800 to 1.1200. A green candle closes at 1.1200. The next day the price opens at 1.1230, falls, and closes at 1.1080. The candle closes below the midpoint of the previous bullish candle. This indicates possible selling pressure.
Trading Tip
Dark Cloud Cover becomes stronger when it appears near resistance levels, previous highs, and overbought market conditions.
17. Morning Star Pattern
Type: Bullish Reversal Pattern
The Morning Star is a three candle bullish reversal pattern.
Structure
- First candle: Large bearish candle
- Second candle: Small body showing uncertainty
- Third candle: Strong bullish candle
Market Psychology
The first candle shows sellers dominating the market. The small middle candle shows that selling momentum is slowing. The final bullish candle confirms buyers are returning.
Example
Bitcoin falls from $70,000 to $60,000. On Day 1 a strong red candle appears. On Day 2 a small Doji candle forms. On Day 3 a large green candle emerges. This suggests sellers are losing control.
Trading Tip
The Morning Star is stronger when it forms near a major support zone.
18. Evening Star Pattern
Type: Bearish Reversal Pattern
The Evening Star is the opposite of the Morning Star.
Structure
- First candle: Strong bullish candle
- Second candle: Small candle
- Third candle: Strong bearish candle
Market Psychology
Buyers push the price higher, but momentum slows. The final bearish candle confirms that sellers are entering.
Example
Gold rises from $2,200 to $2,450. An Evening Star forms near resistance. The next sessions show price declining. This can indicate a possible trend reversal.
19. Morning Doji Star
Type: Bullish Reversal Pattern
The Morning Doji Star is a stronger version of the Morning Star. The middle candle is a Doji.
Market Psychology
The Doji represents complete market uncertainty. After a strong decline, it shows sellers are losing strength.
Example
A stock falls continuously for several weeks. A Morning Doji Star appears near a long-term support level. Buyers regain confidence and the price starts recovering.
20. Evening Doji Star
Type: Bearish Reversal Pattern
The Evening Doji Star appears after an uptrend.
Example
A stock rises from $150 to $200. A Doji forms after strong buying. A large bearish candle follows. This suggests buyers are exhausted.
21. Three White Soldiers
Type: Bullish Reversal Pattern
The Three White Soldiers pattern consists of three consecutive strong bullish candles.
Structure
- Three large green candles
- Each candle opens inside the previous candle's body
- Each candle closes higher
Market Psychology
This shows consistent buying pressure. The sellers are unable to regain control.
Example
A stock falls from $100 to $70. Then three strong bullish candles appear. Day 1 closes at $75, Day 2 closes at $82, and Day 3 closes at $90. This shows a possible trend reversal.
Trading Tip
Avoid entering immediately if the pattern appears after an already extended rally because the market may become overbought.
22. Three Black Crows
Type: Bearish Reversal Pattern
Three Black Crows is the bearish opposite of Three White Soldiers.
Structure
- Three consecutive bearish candles
- Each candle closes lower
- Selling pressure remains consistent
Example
A cryptocurrency rises to $80,000. Three large red candles appear closing at $78,000, $74,000, and $69,000. This indicates sellers are gaining control.
23. Rising Three Methods
Type: Bullish Continuation Pattern
The Rising Three Methods indicates that an existing uptrend may continue.
Structure
- One large bullish candle
- Three small bearish candles
- Another strong bullish candle
Market Psychology
The temporary decline represents profit booking. However, buyers return and continue the trend.
Example
A stock moves from $50 to $70. It pulls back to $65 for several days. Then a strong bullish candle pushes it above $75. The uptrend continues.
24. Falling Three Methods
Type: Bearish Continuation Pattern
The Falling Three Methods is the opposite of Rising Three Methods.
Example
A stock falls from $100 to $80. A temporary recovery happens. Then sellers return and push the price lower. This confirms continuation of the downtrend.
25. Tweezer Bottom Pattern
Type: Bullish Reversal Pattern
The Tweezer Bottom forms when two candles create almost the same low price.
Market Psychology
The market tested a certain price level twice but failed to break below it. This indicates strong support.
Example
Gold falls twice to $2,000. Both attempts fail. Buyers defend this level. The price starts moving higher.
26. Tweezer Top Pattern
Type: Bearish Reversal Pattern
The Tweezer Top is the opposite. Two candles create almost the same high price.
Example
A stock reaches $250 twice. Both attempts fail. Sellers defend the resistance level. The price starts declining.
27. Inside Bar Pattern
Type: Continuation Pattern
An Inside Bar forms when one candle is completely inside the previous candle's range.
Market Psychology
The market is temporarily consolidating. Traders are waiting for a breakout.
Example
Bitcoin moves strongly upward. A small candle forms inside the previous large candle. The next candle breaks higher. This can signal continuation.
28. Outside Bar Pattern
Type: Reversal or Continuation Pattern
An Outside Bar completely covers the previous candle's high and low.
Example
A stock creates a large bullish Outside Bar after a decline. This shows buyers aggressively entered the market.
29. Pin Bar Pattern
Type: Reversal Pattern
A Pin Bar has a small body, a very long wick, and shows strong rejection of a price level.
Market Psychology
The market attempted to move in one direction but was strongly rejected.
Example
GBP/USD falls to 1.2500. It quickly drops to 1.2450 but closes back near 1.2600. This creates a bullish Pin Bar.
30. Bullish Pin Bar
Type: Bullish Reversal Pattern
A Bullish Pin Bar has a long lower wick.
Example
A stock reaches a support zone. Sellers push the price lower. Buyers quickly recover the price. This shows demand.
31. Bearish Pin Bar
Type: Bearish Reversal Pattern
A Bearish Pin Bar has a long upper wick.
Example
A stock reaches $500. Buyers push it higher to $520. Sellers reject the level and price closes lower. This suggests resistance.
32. Belt Hold Pattern
Type: Reversal Pattern
A Belt Hold is a strong opening move without a significant opposite wick.
Bullish Belt Hold
A strong bullish candle opens near the low and closes much higher.
Bearish Belt Hold
A strong bearish candle opens near the high and closes lower.
Example
A currency pair opens at resistance and immediately starts falling strongly. This indicates seller dominance.
33. Kicking Pattern
Type: Strong Reversal Pattern
The Kicking Pattern is considered one of the stronger candlestick reversal signals.
Structure
- A Marubozu candle
- A gap
- An opposite Marubozu candle
Example
A company announces unexpected positive news. A bearish candle is followed by a strong bullish candle gap. This shows a complete shift in sentiment.
34. Abandoned Baby Pattern
Type: Reversal Pattern
The Abandoned Baby pattern includes a strong candle, a Doji gap, and an opposite strong candle.
Example
After a long market decline, a bearish candle appears, a Doji gaps lower, and a bullish candle gaps higher. This shows a possible bottom reversal.
35. Three Inside Up Pattern
Type: Bullish Reversal Pattern
The Three Inside Up pattern combines Harami and confirmation.
Structure
- First candle: Large bearish candle
- Second candle: Small bullish candle inside it
- Third candle: Strong bullish candle
Example
A stock falls from $200 to $150. A small bullish candle forms inside the previous candle. The next candle breaks higher. This confirms buyers are taking control.
36. Three Inside Down Pattern
Type: Bearish Reversal Pattern
The Three Inside Down pattern is the bearish opposite of Three Inside Up.
Structure
- First candle: Large bullish candle
- Second candle: Small bearish candle inside the first candle
- Third candle: Strong bearish candle confirming the reversal
Market Psychology
The first candle shows buyers are still controlling the market. The second candle creates uncertainty. The third candle confirms that sellers have taken control.
Example
A stock rises from $100 to $150. A small red candle forms inside the previous green candle. The next candle closes sharply lower. This suggests that buyers are losing momentum.
37. Three Outside Up Pattern
Type: Bullish Reversal Pattern
The Three Outside Up pattern is an extended version of the Bullish Engulfing pattern.
Structure
- First candle: Bearish candle
- Second candle: Large bullish candle completely engulfing the first candle
- Third candle: Another bullish candle confirming strength
Example
A currency pair falls from 1.2000 to 1.1500. A large bullish candle completely covers the previous bearish candle. The next candle continues higher. This indicates buyers are entering aggressively.
38. Three Outside Down Pattern
Type: Bearish Reversal Pattern
The Three Outside Down pattern is the opposite of Three Outside Up.
Structure
- First candle: Bullish candle
- Second candle: Large bearish engulfing candle
- Third candle: Additional bearish confirmation
Example
Gold rises from $2,000 to $2,300. A bearish engulfing candle appears. The next candle continues lower. This indicates a possible trend reversal.
39. Upside Gap Two Crows
Type: Bearish Reversal Pattern
This pattern usually appears after a strong bullish movement.
Structure
- First candle: Strong bullish candle
- Second candle: Small bearish candle with a gap higher
- Third candle: Another bearish candle closing inside the previous range
Market Psychology
The market initially continues upward, attracting buyers. However, sellers begin entering and the upward momentum weakens.
Example
A stock rises from $80 to $120. Two bearish candles appear after a gap higher. This suggests buyers may be losing control.
40. Downside Gap Three Methods
Type: Bearish Continuation Pattern
This pattern appears during a downtrend.
Structure
Three candles create a continuation signal: a strong bearish candle, a gap lower, and a recovery candle that does not fully reverse the trend.
Example
A stock falls from $150 to $100. A temporary bounce occurs. Selling pressure returns and the downtrend continues.
41. Upside Gap Three Methods
Type: Bullish Continuation Pattern
The Upside Gap Three Methods appears during an uptrend.
Example
A stock rises from $50 to $90. A small pullback occurs. The price breaks higher again. This indicates the trend may continue.
42. Stick Sandwich Pattern
Type: Bullish Reversal Pattern
The Stick Sandwich contains three candles.
Structure
- First candle: Bearish candle
- Second candle: Bearish candle closing near the same level
- Third candle: Bullish candle
Market Psychology
The market tests a support area twice. When sellers fail to break lower, buyers gain confidence.
Example
A stock drops twice near $100. Both times buyers defend that level. The price starts recovering.
43. Matching Low Pattern
Type: Bullish Reversal Pattern
The Matching Low pattern occurs when two bearish candles close at nearly the same price.
Market Psychology
The same price level attracts buying interest.
Example
A stock falls with Day 1 closing at $80 and Day 2 closing at $80. The repeated rejection suggests possible support.
44. Matching High Pattern
Type: Bearish Reversal Pattern
The Matching High pattern is the opposite of Matching Low.
Example
A stock rises with Day 1 high at $150 and Day 2 high at $150. The market repeatedly rejects the same resistance level. This may indicate selling pressure.
45. Ladder Bottom Pattern
Type: Bullish Reversal Pattern
The Ladder Bottom appears after a prolonged downtrend.
Structure
- Several bearish candles
- A strong bullish candle
- Recovery begins
Example
A cryptocurrency falls from $90,000 to $65,000. After several declining candles, a strong bullish candle appears. This indicates buyers may be returning.
46. Advance Block Pattern
Type: Bearish Reversal Pattern
The Advance Block appears during an uptrend.
Structure
- Three bullish candles
- Each candle becomes weaker
- Upper wicks increase
Market Psychology
Buyers are still pushing higher, but their strength is decreasing.
Example
A stock moves from $100 to $110, then $110 to $116, then $116 to $119. The smaller gains indicate weakening momentum.
47. Deliberation Pattern
Type: Bearish Reversal Pattern
The Deliberation pattern shows exhaustion after a strong rally.
Structure
- Three bullish candles
- Third candle has a smaller body or gap
Example
A stock rallies strongly for weeks. The final candles become smaller. This suggests buyers are becoming exhausted.
48. Concealing Baby Swallow Pattern
Type: Bullish Reversal Pattern
This is a rare bullish reversal pattern.
Structure
- Four bearish candles
- The final candle completely covers previous candles
Example
A stock experiences heavy selling. A large final bearish candle appears but buying pressure enters immediately afterward. This can signal seller exhaustion.
49. Island Reversal Pattern
Type: Strong Reversal Pattern
An Island Reversal occurs when price gaps away from the previous trend and later gaps back.
Types
- Bullish Island Reversal
- Bearish Island Reversal
Example
A stock falls sharply. A gap down creates an isolated price area. Later, a gap upward breaks the previous trend. This shows a major sentiment change.
50. Long Legged Doji
Type: Neutral Reversal Warning Pattern
A Long Legged Doji has a small body and very long upper and lower shadows.
Market Psychology
Both buyers and sellers strongly fight during the session. Neither side achieves control.
Example
A stock trades between a high of $110 and a low of $90, with both open and close at $100. The large movement but unchanged closing price shows uncertainty.
How Professional Traders Use Candlestick Patterns
One of the biggest mistakes beginners make is treating candlestick patterns as guaranteed signals. Experienced traders usually combine candlestick patterns with the following.
1. Market Trend
A Hammer during a strong downtrend near support is more meaningful than a random Hammer in the middle of a range.
2. Support and Resistance
Patterns become stronger when they appear at important price zones. For example, a Bullish Engulfing pattern at a previous support level has more value than one appearing randomly.
3. Trading Volume
Volume helps confirm whether the move has real participation. A reversal candle with increasing volume is generally considered stronger.
4. Risk Management
Even the best candlestick patterns fail sometimes. Professional traders focus on position size, stop loss, risk reward ratio, and capital protection.
Common Mistakes Traders Make With Candlestick Patterns
1. Trading Every Pattern
Not every Hammer or Doji creates a profitable opportunity. Market context matters.
2. Ignoring Confirmation
Many traders enter immediately after seeing a pattern. Professional traders usually wait for confirmation.
3. Using Candlesticks Alone
Candlestick patterns work best with other technical tools.
4. Ignoring Risk Management
A good setup can still fail. Protecting capital is more important than predicting every move.
Frequently Asked Questions About Candlestick Patterns
What are the most reliable candlestick patterns?
Some commonly watched patterns include Bullish Engulfing, Bearish Engulfing, Morning Star, Evening Star, Hammer, and Shooting Star. However, reliability depends on market conditions, confirmation, and location on the chart.
Are candlestick patterns accurate?
Candlestick patterns are probability-based tools, not guaranteed predictions. Their effectiveness improves when combined with trend analysis, volume, and risk management.
Which candlestick pattern is best for beginners?
Beginners usually start with Hammer, Doji, Engulfing patterns, Morning Star, and Evening Star. These patterns are easier to identify and understand.
Can candlestick patterns be used in Forex trading?
Yes. Forex traders commonly use candlestick patterns because currency markets operate continuously and price psychology plays an important role.
Do professional traders use candlestick patterns?
Yes. Many professional traders use candlesticks as part of a larger trading system that includes technical analysis, market structure, and risk management.
Final Thoughts
Candlestick patterns are not about memorising shapes. They are about understanding market behaviour.
Every candle represents a battle between buyers and sellers.
A strong trader does not ask "Which pattern guarantees profit?" Instead, they ask "Why did this pattern appear here, and what does it tell me about market psychology?"
Learning 50 candlestick patterns can improve your ability to read charts, but consistent trading results come from combining knowledge, discipline, patience, and proper risk management.
Disclaimer
Trading financial markets involves significant risk and may not be suitable for every individual. Candlestick patterns are educational tools used for market analysis and do not guarantee profitable trades. Past market behaviour does not guarantee future results. Always conduct your own research, understand the risks involved, and consider seeking advice from a qualified financial professional before making any investment or trading decisions.