Candlestick Patterns Guidebook
Introduction to Candlestick Charts
Candlestick Parts
• Body – Shows open & close price
• Wicks (Shadows) – Show high & low prices
• Green (Bullish) – Close > Open
• Red (Bearish) – Close < Open
Why They Matter
• Show market psychology
• Reveal momentum shifts
• Used to predict reversals & continuations
Single Candlestick Patterns
Doji
Indicates indecision in the market.
■ Look for reversals at support/resistance zones.
Hammer
Bullish reversal pattern after a downtrend.
■ Best near support with confirmation candle.
Inverted Hammer
Potential bullish reversal after downtrend.
■ Wait for bullish confirmation.
Shooting Star
Bearish reversal at top of uptrend.
■ Best near resistance with volume confirmation.
Spinning Top
Indecision, small body with long wicks.
■ Often signals a pause before continuation.
Marubozu
Strong candle with no shadows.
■ Signals strong momentum, trend continuation.
Double Candlestick Patterns
Bullish Engulfing
Large bullish candle engulfs prior bearish.
■ Strong reversal, especially after downtrend.
Bearish Engulfing
Large bearish candle engulfs prior bullish.
■ Signals reversal after uptrend.
Piercing Pattern
Bullish candle closes above midpoint of bearish.
■ Effective after strong downtrend.
Dark Cloud Cover
Bearish candle closes below midpoint of bullish.
■ Effective after strong uptrend.
Bullish Harami
Small bullish candle inside large bearish.
■ Reversal if followed by bullish strength.
Bearish Harami
Small bearish candle inside large bullish.
■ Reversal if followed by bearish strength.
Harami Cross
Harami where second candle is Doji.
■ Indicates major indecision, watch next move.
Tweezer Top
Two candles with same high point.
■ Bearish reversal near resistance.
Tweezer Bottom
Two candles with same low point.
■ Bullish reversal near support.
Triple Candlestick Patterns
Morning Star
Three-candle bullish reversal.
■ Best after downtrend with strong bullish 3rd candle.
Evening Star
Three-candle bearish reversal.
■ Best after uptrend with strong bearish 3rd candle.
Three White Soldiers
Three strong bullish candles.
■ Signals strong bullish momentum.
Three Black Crows
Three strong bearish candles.
■ Signals strong bearish momentum.
Three Inside Up
Bearish + small bullish + strong bullish.
■ Bullish reversal confirmation.
Three Inside Down
Bullish + small bearish + strong bearish.
■ Bearish reversal confirmation.
Rising Three
Bullish continuation pattern.
■ Confirms uptrend strength.
Falling Three
Bearish continuation pattern.
■ Confirms downtrend strength.
Candlestick Patterns Cheat Sheet
Pattern Description
Doji Indicates indecision in the market.
Hammer Bullish reversal pattern after a downtrend.
Inverted Hammer Potential bullish reversal after downtrend.
Shooting Star Bearish reversal at top of uptrend.
Spinning Top Indecision, small body with long wicks.
Marubozu Strong candle with no shadows.
Bullish Engulfing Large bullish candle engulfs prior bearish.
Bearish Engulfing Large bearish candle engulfs prior bullish.
Piercing Pattern Bullish candle closes above midpoint of bearish.
Dark Cloud Cover Bearish candle closes below midpoint of bullish.
Bullish Harami Small bullish candle inside large bearish.
Bearish Harami Small bearish candle inside large bullish.
Harami Cross Harami where second candle is Doji.
Tweezer Top Two candles with same high point.
Tweezer Bottom Two candles with same low point.
Morning Star Three-candle bullish reversal.
Evening Star Three-candle bearish reversal.
Three White Soldiers Three strong bullish candles.
Three Black Crows Three strong bearish candles.
Three Inside Up Bearish + small bullish + strong bullish.
Three Inside Down Bullish + small bearish + strong bearish.
Rising Three Bullish continuation pattern.
Falling Three Bearish continuation pattern.
