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Candlestick patterns are a part of technical analysis, where traders use them to analyze the price movements. This helps traders predict prices faster and more accurately, as it's based on the price data we have analyzed.
Candlestick patterns are a strategy that traders have used since the 18th century, invented by a rice merchant, Honma Munehisa. He created the candlestick charts by analyzing past price data and news to predict where candlestick formations indicate the price will move.
You can use these candlesticks to analyse price and create your trading strategies to make a profit. Let’s dig deeper and explore how many types of candlestick are there are and how to identify them.
The candlestick patterns or charts were invented by Honma Munehisa (AKA Sokyu Honma or Sokyu Homma) in the 18th century.
There are more than 75+ candlestick patterns, but we have covered the top 43 candlestick patterns.
You can download this candlestick pattern guide, including all 40+ candlestick patterns in PDF format.
Candlestick patterns show price data that helps you predict future prices.
Each candlestick shows when the price starts and ends, indicating when buying or selling pressure pushes the market.
So instead of watching a single candlestick, the candlestick pattern will help you spot faster and more accurately, based on the expert research that traders have been using for decades.
Identifying and understanding the candlestick structure helps traders interpret shifts in market sentiment and recognize valuable candlestick formations for decision-making.
Each candlestick has four key parts:
Open – price at the start
Close – price at the end
High – highest price
Low – lowest price
Thumb Rule
Green Candlestick - price closed higher than it opened
Red Candlestick - price closed lower than it opened
The body shows the open-to-close prices.
The shadow shows daily high and low prices.
The colour shows the direction of the price movements.
Common interpretations:
Long wick > rejection
Large body > strong momentum
Small body > indecision
Example:
A bullish candle opens at 100, closes at 110, with a high of 115 and a low of 95.
A bearish candle opens at 110, closes at 100, with a high of 115 and a low of 95.
Candlestick patterns fall into two primary categories: bullish candlesticks and bearish candlesticks.
Bullish Candlestick Patterns indicate potential upward movement, usually forming after a downtrend.
These candlestick patterns indicate that buyers are gaining strength, reversing prior selling pressure, and hinting at a possible price increase.
Bearish Candlestick Patterns signal potential downward movement after an uptrend.
These candlestick patterns suggest sellers are taking control, overpowering buyers, and increasing the likelihood of a price decline.
This table provides an overview of the top 43 most useful candlestick patterns for all types of traders.
#
Candlestick Pattern
Type
Reliability Score
Best Timeframe
1
Hammer
Bullish Reversal
9/10
All
2
Inverted Hammer
8/10
H1–H4
3
Bullish Engulfing
H4–Daily
4
Piercing Line
7/10
5
Bullish Marubozu
Bullish Continuation
6
Three White Soldiers
7
Three Inside Up
8
Bullish Harami
9
Tweezer Bottom
10
Bullish Counterattack
6/10
11
Bullish Kicker
10/10
12
Bullish Abandoned Baby
Daily
13
Morning Star Doji
Daily–Weekly
14
Dragonfly Doji
15
Bullish Tri-Star
16
Bullish Hikkake
17
Concealing Baby Swallow
18
Unique Three Rivers
19
Rounding Bottom
20
Bullish Belt Hold
21
Mat Hold (Bullish)
22
Rising Three Methods
23
Homing Pigeon
24
Stick Sandwich
25
Hanging Man
Bearish Reversal
26
Dark Cloud Cover
27
Bearish Engulfing
28
Bearish Marubozu
Bearish Continuation
29
Three Black Crows
30
Three Inside Down
31
Bearish Harami
32
Shooting Star
33
Tweezer Top
34
Bearish Counterattack
35
Bearish Spinning Top
36
Bearish Kicker
37
Evening Star Doji
38
Bearish Abandoned Baby
39
Gravestone Doji
40
Bearish Tri-Star
41
Deliberation
42
Upside Gap Two Crows
H4 - Daily
43
Advance Block
Get your hands on the candlestick patterns PDF 2026, the ultimate visual cheat sheet trading reference for both new and experienced traders.
This candlestick patterns PDF guide for offline trading includes every major bullish and bearish setup used by professional analysts to read market sentiment and time entries with confidence.
Here is what is inside the free PDF:
40+ fully illustrated candlestick formations, including Hammer, Engulfing, Morning Star, Evening Star, and Three Black Crows.
Quickly summarizing all top candlestick patterns and how they appear on the chart, as well as the key signals and their reliability.
Practical usage tips on confirmation, volume context, and timeframe selection.
Candlestick Patterns PDF
Here is a detailed breakdown of the top candlestick patterns under the Bullish category.
The Hammer candlestick pattern is characterized by a short body and a long lower shadow. When you see this candlestick pattern in a downtrend, it suggests the price might go up. The pattern shows that price pressure has pushed the price up from the bottom, indicating that buyers are more dominant.
Key Insight: Most effective when it forms after a sharp decline near a key support level.
The Inverted Hammer candlestick pattern shows a small body with a short to medium lower shadow and a long upper shadow. The pattern suggests that buyers are pushing the price higher during sessions. This confirms the next bullish reversal is coming.
Key Insight: Confirmation from the next bullish candle increases reliability.
The Bullish Engulfing candlestick pattern consists of two candlesticks: a small bearish candle followed by a larger bullish candle. The small bearish candlesticks indicate that selling pressure is weakening, while the large bullish candlestick shows that buyers are coming in strong.
Key Insight: Often marks a decisive shift in market sentiment when accompanied by high trading volume.
The Piercing Line shows two candlestick patterns. Once a large bullish candlestick is followed by bullish candlesticks in which the price closes above the previous bearish candlestick by 50%. The patterns show that the buyers are strongly controlling the market and will turn the downtrend market into an uptrend.
Key Insight: Stronger when the second candle opens with a downward gap and closes deep into the prior body.
The Morning Star candlestick pattern consists of three candlesticks, indicating that the downtrend is weakening and is ready for an uptrend reversal. The pattern shows that sellers are losing control and buyers are starting to buy at the lowest prices.
Key Insight: One of the most reliable reversal patterns is confirmed by strong volume.
The Three White Soldiers candlestick pattern shows three bullish candlesticks with higher opens and closes. This shows buyers are entering the market strongly, and it suggests the potential for an uptrend, which could confirm buyers' buying momentum.
Key Insight: Reflects sustained buying momentum; often appears after a consolidation phase.
The Three Inside Up candlestick pattern shows three candlesticks. The large bearish candlestick is followed by a bullish green candlestick, which is considered as half of the first candle, then followed by the bullish candle that closes above the first candlestick (bearish candlestick). The pattern suggests a potential price chart reversal.
Key Insight: Works best with confirmation from volume or a bullish breakout.
The Bullish Harami candlestick pattern shows two candlesticks that signal a possible upward reversal. The first candlestick appears as a large bearish candlestick, followed by a smaller bullish candlestick. It indicates that selling pressure is weakening, suggesting a bullish reversal.
Key Insight: Suggests indecision and weakening of downward pressure.
The Tweezer bottom candlestick pattern consists of 2 candlesticks: a bearish candlestick with a longer bottom wick, followed by a bullish candlestick of the same size. It shows that even though the market is going down, the buyers are preventing and taking control by pushing the price quickly.
Key Insight: Reinforced when accompanied by a volume spike or momentum divergence.
The Bullish Counterattack candlestick pattern forms with two candlesticks. It begins with a bearish candlestick, followed by a bullish candlestick that closes at the previous day's low. It indicates that buyers are entering the market and pushing prices higher after the downtrend exhausts.
Key Insight: Confirmation is required; works best with a following bullish candle.
The Bullish Kicker candlestick pattern consists of two candlesticks and appears in a downtrend. It starts with a bearish candlestick, followed by an upper gap and a bullish candlestick above the gap and the previous bullish price.
It suggests that buyers are coming in strong to flip the market and take full control. This candlestick pattern often appears after major news and when the market has strong momentum.
Key Insight: Often signals major news or strong buying interest; rarely fails.
The Bullish Abandoned Baby candlestick pattern is a rare but highly reliable three-candle reversal formation. It begins with a long bearish candle, followed by a doji that gaps down, and ends with a bullish candle that gaps up.
The separation between the candles reflects the complete exhaustion of selling pressure. This candlestick pattern typically marks a major turning point in the market, signaling the end of a prolonged downtrend.
Key Insight: Extremely rare but powerful, shows market capitulation and reversal.
The Bullish Marubozu candlestick pattern is just a single candlestick. It shows a full bullish candlestick body with no upper or lower shadow. This tells us that the market is fully controlled by the buyers. The candlestick often indicates that the market is going up or continuing to go up.
Key Insight: Demonstrates clear bullish control; often appears at the start of strong upward momentum or breakout.
The Dragonfly Doji candlestick pattern is represented as a T-shaped with a thin body and a very long lower shadow or lower wick. It shows that sellers are currently pushing the price down, but buyers are coming in stronger and pushing it back up. If you find this pattern closed by a support level, it confirms an upward move.
Key Insight: Best observed near support zones with confirmation from subsequent bullish candles.
The Bullish Tri-Star candlestick pattern shows three doji candles during a downtrend. It shows the market is indecisive, with the opening and closing prices almost equal. The pattern is a sign of a bullish reversal, indicating that selling pressure is weakening.
Key Insight: Rare; interpret cautiously with additional signals.
The Bullish Hikkake candlestick pattern shows 4 candlesticks. The first 2 candlesticks are getting smaller, forming a Harami pattern. The most important characteristic is that the 1st candle must be at least twice as large as the 2nd candlestick. The 3rd candlestick will close below the lowest price of the first candle. Next candlestick, if there is one, will move below the 3rd candlestick, and the 4th candlestick will close above the 2nd candlestick.
Key Insight: Commonly used by price action traders to trap early sellers.
The Concealing Baby Swallow Candlestick Pattern is an uptrend reversal. The first two candlesticks are large bearish candlesticks, followed by a series of bearish candlesticks that close below the previous candlestick, then by larger bearish candlesticks that close at the high and low prices of the previous candlestick. This shows that the market is losing the selling pressure and is ready for an upward move.
Key Insight: Indicates aggressive absorption of selling pressure.
The Unique Three Rivers candlestick pattern comes with three candlesticks. It begins with a large bearish candlestick, followed by a small bearish candlestick with a long lower shadow, then a small bullish candlestick with the same lower wick length as the previous candlestick but unable to close the high and low prices of the previous candlestick.
Key Insight: Should appear near key historical support for validity.
The Rounding Bottom Candlestick Pattern is a bullish signal. The formation looks like a "U" shape on the price chart. You will see this forming from a downtrend to an uptrend. It shows that the volume is decreasing at the bottom, then buying pressure increases, leading to an upward break above the resistance.
.
Key Insight: Confirms sustained accumulation; often precedes extended uptrends.
The Bullish Belt Hold Candlestick Pattern forms during a downtrend. The shows with a big single large green candlestick that opens near the session lows and highs. This shows buyers are coming strong in the market and taking control of it.
Key Insight: Best used when aligned with an oversold RSI or stochastic reading.
The Bullish Mat Hold candlestick pattern comes with five candlesticks. It starts with a bullish candlestick, followed by three small bearish candlesticks that open at a higher price, then close at a lower price, then a big bullish candlestick that closes at the higher price of the previous bearish candlestick. This signals the uptrend has paused and continue going up again.
Key Insight: Continuation pattern ideal for trend-following traders.
The Rising Three Methods Candlestick Pattern might look similar to the previous pattern. It starts with long bullish candlesticks, three bearish candlestick consolidation and closes with a large long bullish candle that closes above the first candlestick. This signals a continuous bullish pattern, indicating that buyers are taking control of the market.
Key Insight: Indicates controlled pullback within an established uptrend.
The Homing Pigeon candlestick pattern signals a bullish reversal. It appears with two candlesticks, which are a large bearish candlestick followed by a small bearish candlestick that is only half the size of the previous candlestick. This pattern appears during a downtrend, indicating that selling pressure is weakening. The Buys are coming to take over and flip the market to an uptrend.
Key Insight: Strengthens if confirmed by a higher close in the next session.
The Stick Sandwich candlestick pattern consists of three candlestick formations. The first stick is a large bearish candlestick, followed by a smaller bullish candlestick, then a large bearish candlestick that closes near the low of the first candlestick. This shows that buyers entering the market are trying to drive up prices.
Key Insight: Suggests support holding firm; can precede short-term rebounds.
Here is a detailed breakdown of the top candlestick patterns under the Bearish category.
The Hanging Man candlestick pattern signals a bearish reversal. It shows a small bearish body at the top with a long lower shadow. It usually appears during an uptrend, indicating that buying momentum is weakening and selling is gaining momentum. The confirmation candlestick pattern appears near resistance and is followed by the bearish candlestick.
Key Insight: Needs confirmation with a bearish candle in the next session.
The Dark Cloud Cover candlestick pattern begins with two candlesticks, the 1st is the bullish candlestick, and the 2nd is the bearish candlestick that opens and closes above the bullish candlestick. Both candlesticks are large, indicating that selling momentum is strengthening.
Key Insight: Stronger when the second candle opens higher and then reverses sharply.
The Bearish Engulfing candlestick pattern starts with two candlesticks. The first candlestick is bullish, followed by the bearish engulfing candlestick. This pattern signals a bearish candlestick, indicating that buying pressure is weakening. The Sellers are coming in strong, signaling a downtrend.
Key Insight: Indicates a clear shift in control from buyers to sellers.
The Evening Star candlestick pattern starts with a long first body, followed by the 2nd candlestick that has a short body gap away from the preceding candle, then comes the third candlestick that closes into the body of the first candle. This shows the bullish momentum is weakening, and then the bearish control becomes prominent.
Key Insight: Reliable when confirmed by declining volume and a close below support.
The Three Black Crows candlestick pattern signals a strong bearish reversal. This appears after a rally, with 3 bearish candlesticks. Each session opens at a price similar to the previous day's, but selling pressure pushes the price lower with each close. This pattern confirms the downtrend and usually continues as a downtrend signal.
Key Insight: Reflects sustained selling pressure; often signals a trend continuation.
The Three Inside Down candlestick pattern shows three candlesticks and signals a bearish reversal. The 1st candlestick is bullish, followed by a bearish candlestick that closes below the 50% level of the 1st candlestick, then the last bearish candlestick closes below the 1st candlestick.
Key Insight: Most effective when forming near a resistance zone.
The Bearish Harami candlestick pattern indicates the downtrend. It appears as two candlesticks: the first bullish, followed by a smaller bullish candlestick, indicating a strong price reversal from the uptrend to the downtrend.
Key Insight: Shows indecision before potential bearish confirmation.
The Shooting Star candlestick pattern begins with a small body with a long upper shadow wick and a small bottom wick. It shows that the buyers push the price higher, but failed because the sellers regained control and pushed the price downward.
Key Insight: A confirmed bearish close strengthens the pattern.
The Tweezer Top candlestick pattern signals a potential bearish reversal. It begins with a big bullish candlestick, followed by a bearish candlestick with the same high as the bullish one. This shows that the bearish candlestick is getting stronger and will take control of the market.
Key Insight: More reliable when followed by strong bearish momentum.
The Bearish Counterattack candlestick pattern starts with a bullish candlestick, followed by a red candlestick that closes near the previous candlestick. The sellers are taking control, signaling short-term weakness that could catch bullish investors off guard.
Key Insight: Requires additional confirmation before action.
The Bearish Spinning Top candlestick pattern started with a small bearish body with long upper and lower shadow wicks. If this pattern is followed by a bearish candlestick, this is a bear market confirmation. It signals that the market is hesitant and is finally continuing a downtrend.
Key Insight: Often precedes stronger bearish formations.
The Bearish Kicker candlestick pattern starts with a rally of bullish candlesticks, then comes with a gap downward with a strong bearish candlestick moving in the opposite direction. This pattern forms in an uptrend market and indicates that the market is shifting from a downtrend because sellers take over from buyers.
Key Insight: Rarely fails, especially after major news events.
The Bearish Marubozu candlestick pattern begins with a single bearish candlestick without wicks or shadows. This pattern occurs during an uptrend and signals a reversal or continuation of the downtrend. It shows that the sellers were in control of the market and ready for a downtrend.
Key Insight: Indicates complete seller dominance; often marks the beginning of a sharp decline or breakdown.
The Bearish Abandoned Baby candlestick pattern signals a bearish market trend. The pattern consists of 3 candlesticks: a large bullish candlestick, a small bearish doji candlestick, and a final bearish candlestick. The candlestick pattern usually appears during an uptrend, indicating that the buying and selling are balanced. But the Doji candlestick appears as a bearish confirmation for the downtrend reversal.
Key Insight: Rare but powerful, signaling exhaustion at resistance.
The Gravestone Doji candlestick pattern has a long "T" upside down, indicating buyers pushed the price up, but sellers quickly pushed it back down. The pattern signals a downtrend reversal and usually appears during an upward momentum, warning that the bull market is fading.
Key Insight: Warning sign of reversal after a strong uptrend.
The Bearish Tri-Star candlestick pattern consists of three candlesticks that form a triangle, which we call a Tri-Start. The first 2 doji indicate indecision, and the last doji suggests the price will start a downtrend.
Key Insight: Wait for a strong bearish candle to confirm the reversal.
The Deliberation candlestick pattern is a downtrend signal. It forms with 3 candlesticks: the first is a large candlestick, then a medium candlestick that is shorter than the first, followed by a doji that shows market indecision. But once it shows a doji, it signals that sellers are coming in strong and will turn the uptrend into a downtrend.
Key Insight: Early indicator of a slow but steady reversal.
The Upside Gap Two Crows pattern comes with three candlesticks. The pattern starts with a large bullish candlestick, followed by a small bearish candlestick, and a medium bearish candlestick, with the latter closing higher and the former lower than the previous candlestick's prices. This pattern forms during the uptrend, signaling that the buying pressure is getting weaker, and then comes with the downtrend.
Key Insight: This pattern shows that buying pressure is weakening.
The Advance Block Candlestick Pattern forms with three candlesticks. The first candlestick is a large bullish candlestick, followed by a short body candlestick with a longer upper wick than the third candle with an even smaller body and a longer upper wick with a short lower wick on the bottom.
Key Insight: The market is in an uptrend but lacks sufficient buying pressure.
The candlestick pattern is the most effective way to predict the price actions. This 43 candlestick pattern will guide you through all visuals, explanations, and pictures so you don't miss the entry position in 2026.
Of course, you cannot just enter the trade right away once you see the pattern; you always need confirmation. You can check the reliability scores and the optimal timeframe for each candlestick pattern. Candlestick patterns work across many markets, including Forex, Stocks, Crypto, and Commodities.
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You need to look at the next candlestick to see whether it's going to continue the same market trend, the volume, and the breakout of resistance and support levels.
The candlestick pattern helps you identify reversals and continuations by analyzing each candlestick's resistance and support levels, which can increase your chances of predicting the next price action.
The most reliable candlestick patterns for beginners are Bullish Engulfing, Bearish Engulfing, Shooting Star, Inverted Hammer, Evening Star, and Morning Star.
Yes, candlestick patterns work across all markets, including Forex, stocks, commodities, crypto, and indices. The candlesticks work the same way and will help you better understand market moves.
The candlestick patterns work in all timeframes, but it depends on which candlestick pattern works best in which timeframe, so not all candlestick patterns can work best in only one timeframe.
You can find all candlestick patterns in our Candlestick Patterns PDF. We have included everything you need in a downloadable guidebook.
Nathalie Okde
SEO Content Writer
Nathalie Okde is an SEO content writer with nearly two years of experience, specializing in educational finance and trading content. Nathalie combines analytical thinking with a passion for writing to make complex financial topics accessible and engaging for readers.
Rania Gule
Market Analyst
A market analyst and member of the Research Team for the Arab region at XS.com, with diplomas in business management and market economics. Since 2006, she has specialized in technical, fundamental, and economic analysis of financial markets. Known for her economic reports and analyses, she covers financial assets, market news, and company evaluations. She has managed finance departments in brokerage firms, supervised master's theses, and developed professional analysis tools.
This written/visual material is comprised of personal opinions and ideas and may not reflect those of the Company. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. XS, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same. Our platform may not offer all the products or services mentioned.
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