Ultimate Candlestick Patterns

Candlestick Pattern Explanations (Bullish, Bearish & Neutral)

Hammer Candlestick Pattern

The hammer is a single bullish reversal pattern that appears after a downtrend. It has a small body near the top of the range and a long lower shadow, showing that sellers pushed the price down but buyers stepped in strongly and forced the close back near the highs. Traders see it as a sign that selling pressure is weakening and a potential bottom may form, especially near support.

Inverted Hammer

The inverted hammer is also a bullish reversal pattern that appears after a downtrend. It has a small body near the bottom and a long upper wick, showing buyers tried to push price higher but met resistance. Although the close is not very strong, it signals that buyers are starting to fight back. Confirmation usually comes with a bullish candle closing above the inverted hammer high.

Hanging Man

The hanging man looks like a hammer but appears after an uptrend. It has a small body near the top and a long lower shadow, showing that strong intraday selling entered the market. Even if buyers pulled price back up, the pattern warns that demand may be weakening and a top could form soon. Traders look for bearish confirmation on the next candle.

Shooting Star

The shooting star is a bearish reversal candle that appears after an uptrend. It has a small body near the low with a long upper shadow, showing that buyers pushed price higher but then sellers completely rejected the move and forced the close near the lows. It often marks exhaustion of the uptrend, especially around resistance.

Classic Doji

A classic doji forms when the open and close are almost the same. It reflects pure indecision between buyers and sellers. On its own, a doji is neutral, but after a strong trend it can warn of a possible reversal as market participants hesitate at extreme prices. Traders usually wait for the next candle to confirm direction.

Gravestone Doji

The gravestone doji has a long upper shadow and opens and closes near the low. It shows that buyers dominated earlier in the session, but sellers completely reversed the move by the close. After an uptrend, it is considered a bearish reversal signal near resistance.

Dragonfly Doji

The dragonfly doji has a long lower shadow and opens and closes near the high. It shows strong selling earlier in the session, followed by aggressive buying that pushes the price back up. After a downtrend, this pattern is seen as a bullish reversal signal near support.

Bullish Marubozu

A bullish marubozu is a strong candle with no or very small wicks. Price opens near the low and closes near the high, indicating continuous buying throughout the period. It signals strong bullish momentum and often appears at the start of an impulsive move up.

Bearish Marubozu

A bearish marubozu is the opposite – price opens near the high and closes near the low, with little or no wicks. It shows heavy selling pressure from start to finish and signals strong bearish momentum, especially after a distribution phase.

Bearish Spinning Top

A spinning top has small bodies and longer shadows on both sides, indicating indecision. A bearish spinning top leans slightly bearish, often closing below the open. After a strong uptrend, it suggests that momentum is slowing and a pause or reversal may follow.

Bullish Engulfing

The bullish engulfing pattern is a two-candle bullish reversal formation. The first candle is bearish and relatively small, followed by a larger bullish candle that completely engulfs the previous body. It shows that buyers have taken control from sellers. The signal is stronger at support or after a sustained downtrend.

Bearish Engulfing

The bearish engulfing pattern is the opposite: a small bullish candle followed by a larger bearish candle that engulfs the previous body. It indicates that sellers have overwhelmed buyers and can mark the start of a down leg after an uptrend, especially at resistance zones.

Piercing Line

The piercing line is a bullish two-candle pattern that appears after a downtrend. The first candle is long and bearish; the second opens with a gap down but closes above the midpoint of the previous candle. This shows a strong shift from selling to buying pressure and hints at a potential reversal upward.

Dark Cloud Cover

Dark cloud cover is a bearish reversal pattern. A strong bullish candle is followed by a bearish candle that opens above the previous high but closes below the midpoint of the first candle. It suggests that sellers have entered aggressively after a rally and may push prices lower.

Bullish Harami

The bullish harami is a two-candle pattern where a small bullish body forms inside the range of a previous large bearish candle. It represents a pause in selling and potential shift in sentiment. Traders usually wait for a bullish confirmation candle before acting.

Bearish Harami

The bearish harami occurs when a small bearish candle forms within the body of a preceding large bullish candle. It shows that buying pressure is slowing and sellers are starting to step in. When it appears near resistance, it can foreshadow a downside move.

Tweezer Bottom

Tweezer bottoms are a two-candle bullish reversal pattern where both candles share a similar low. Often, the first is bearish and the second bullish. The equal lows highlight a strong support level where sellers repeatedly fail to drive price lower.

Tweezer Top

Tweezer tops are a two-candle bearish reversal pattern where both candles have similar highs. The first is usually bullish and the second bearish. They highlight a strong resistance zone where buyers fail to push price higher, signaling a potential top.

Bullish Kicker

The bullish kicker is a powerful reversal pattern. After a bearish candle, the next session opens with a significant gap up and forms a strong bullish candle, often with no overlap in bodies. It shows a dramatic shift in sentiment, usually due to major news or a sudden change in order flow.

Bearish Kicker

The bearish kicker is the opposite: after a bullish candle, the next candle opens with a strong gap down and prints a large bearish body. There is minimal overlap between the bodies. This pattern reflects a violent shift from buying to selling and can start a sharp decline.

Bullish Counterattack

In a bullish counterattack, a strong bearish candle is followed by a bullish candle that opens lower but closes at or near the previous close. The bears fail to push the market further down, and buyers counterattack strongly. It can mark the beginning of a bullish reversal at support.

Morning Star

The morning star is a three-candle bullish reversal pattern. First comes a large bearish candle, then a small indecisive candle (gap down is common), followed by a strong bullish candle that closes well into the body of the first. It signals that selling pressure is exhausted and buyers are taking control.

Evening Star

The evening star is the bearish counterpart: a long bullish candle, then a small candle showing indecision, followed by a strong bearish candle closing deep into the first candle’s body. It often appears at the end of an uptrend and signals potential reversal downwards.

Three White Soldiers

Three white soldiers is a strong bullish continuation or reversal pattern. It consists of three consecutive bullish candles, each closing near its high and opening within or near the previous body. It shows sustained and organized buying pressure over several periods.

Three Black Crows

Three black crows is a bearish pattern with three consecutive bearish candles, each opening in or near the previous body and closing near the lows. It reflects strong, persistent selling and often signals the start of a downtrend after a bullish phase.

Bullish Abandoned Baby

The bullish abandoned baby is a rare three-candle reversal pattern. After a long bearish candle, a doji gaps down, followed by a strong bullish candle that gaps up away from the doji. The doji is "abandoned" by gaps on both sides, showing a sharp sentiment shift from sellers to buyers.

Bearish Abandoned Baby

The bearish abandoned baby is the opposite – a long bullish candle, a gap-up doji, and then a gap-down bearish candle. The isolated doji highlights extreme indecision at the top, followed by aggressive selling. It signals a strong potential reversal.

Three Inside Up

Three inside up is a bullish pattern built from a bearish first candle, a smaller bullish second candle within its range (forming a harami), and a third bullish candle closing above the first candle’s high. It confirms a shift from selling to buying pressure.

Three Inside Down

Three inside down is a bearish pattern composed of a long bullish candle, followed by a smaller bearish candle inside its body, and a third bearish candle closing below the first candle’s low. It confirms a transition from buying to selling.

Bullish Tri-Star

The bullish tri-star pattern consists of three consecutive doji candles after a downtrend. It shows extreme indecision and exhaustion in selling pressure. When followed by a strong bullish candle, it can mark a significant bottom.

Bearish Tri-Star

The bearish tri-star is three doji candles after an uptrend. It reflects exhaustion in buying and strong indecision at elevated prices. If a bearish candle follows, traders see it as confirmation of a potential top.

Deliberation Pattern

The deliberation pattern is a three-candle formation that often appears near the end of an uptrend. It includes two strong bullish candles followed by a small candle that gaps up but closes weak. It shows that buyers are becoming cautious, often leading to a pause or reversal.

Homing Pigeon

The homing pigeon is a bullish reversal pattern in a downtrend. It consists of two consecutive bearish candles where the second candle’s body is contained within the body of the first and closes higher than the first close. It suggests that selling pressure is decreasing and a base may be forming.

Concealing Baby Swallow

The concealing baby swallow is a complex four-candle bullish pattern. It usually forms in a declining market with two long bearish marubozu-type candles, followed by a gap-down candle that is engulfed by the fourth bearish candle. Despite its bearish look, the pattern can signal selling exhaustion and potential bullish reversal once bearish gaps fail to continue.

Stick Sandwich

Stick sandwich is a three-candle pattern where two candles of the same color surround an opposite-colored candle, and the first and third closes are at similar prices. In a bullish stick sandwich, the repeated close level suggests strong support; in a bearish variant, it suggests resistance.

Rising Three Methods

Rising three methods is a bullish continuation pattern. It begins with a strong bullish candle, followed by several small corrective bearish or neutral candles that stay within the first candle’s range, and ends with another strong bullish candle closing above the first high. It shows a healthy pause in an uptrend before price continues higher.

Bullish Belt Hold

A bullish belt hold is a single strong bullish candle that opens at or near the low (often with a gap down) and then rallies to close near the high, with little or no lower shadow. It reflects aggressive buying from the open and is considered a bullish signal, especially after a decline.

Rounding Bottom (candlestick series)

A rounding bottom is a multi-candle accumulation pattern where price gradually stops making new lows and starts forming slightly higher lows over time, creating a curved shape. On a candlestick chart, this appears as many small candles with similar lows. It represents a slow transition from sellers to buyers and often precedes a new uptrend.

Unique Three Rivers

Unique three rivers is a rare bullish reversal pattern. In a typical version, a long bearish candle is followed by a candle making a new low but closing higher, and then a small bullish candle closing above the second candle. The structure shows that although sellers pushed to new lows, they failed to hold them, and buyers gradually gained control.