Candlestick patterns are like the A-B-C-D of trading, they are necessary to understand how price changes on a chart.
Learning these candlestick patterns can really help you make profitable decisions when trading.
This article provides all the important 35 powerful candlestick patterns, and you can download a PDF.
This PDF is like a guide for understanding all the essential information about candlestick patterns out there.
Introduction To Candlestick Patterns
A candlestick is a tool used in technical analysis to represent the price movement of a stock, commodity, or currency with open, close, high, and low.
One candlestick includes four data points: high, low, open, and close. The area between open and close is known as the body.
List of 35 Powerful Candlesticks Patterns
|Falling Three Methods
|Shooting Star Pattern
|Morning Star Pattern
|Evening Star Pattern
|Bullish Piercing Pattern
|Dark Cloud Cover
|Rising Three Methods
|Three White Soldiers
|Three Black Crows
|Three Inside Up Pattern
|Three Inside Down
|Upside Tasuki Gap
|Downside Tasuki Gap
|Three Outside Down
|Three Outside Up
Download 35 Most Powerful Candlesticks Pattern PDF
Click on the button below to download the 35 Powerful Candlestick Patterns PDF.
This is basic part of technical analysis in trading, like chart patterns. If you like to improve your trading abilities more, then check out this “Chart Patterns Cheat Sheet PDF” I made exclusively for you. Its important to have knowledge of charts & chart patterns along with candlesticks.
Explained List of Candlestick
Bullish Candlesticks are those that indicate a trending market. These candles are primarily green in color.
These candles also work as reversal candles. That’s why we can also call them bullish reversal patterns.
If these candles are formed in an ongoing downtrend, the trend will change from down to up. So traders can exit from their short positions and enter new, long positions.
- Bullish Engulfing: The bullish engulfing pattern forms when a green candle completely engulfs a bearish candle. More clearly, in this pattern, the green candle (bullish candle) completely covers or, we can say, engulfs the red candle (bearish candle).
- Hammer: The hammer candle is a single candlestick pattern. The hammer has a small body, and the lower wick size is at least twice the size of the body. This candlestick has no upper wick, or sometimes it has a tiny upper wick, which is okay.
- Inverted Hammer: The inverted hammer is a single candlestick. It has a small body, and the upper wick size is at least twice the size of the body. And this candlestick has no lower wick, or sometimes it has a tiny lower wick, which is okay.
- Morning Star Pattern: The morning star pattern is a bullish reversal pattern. The morning star candlestick consists of 3 candles. The first is a bearish candle, the second is Doji, and the third is a bullish candle representing the buyers’ power.
- Piercing Pattern: The piercing pattern is a bullish reversal pattern. The piercing pattern consists of two candles. The first candle is bearish, and the next opens the gap. Still, it covers the first bearish candle by more than 50%, which shows that bears are getting weaker in the downtrend, buyers are back, and the trend is about to change.
- Three White Soldiers: This pattern consists of three candlesticks, which don’t have shadows or wicks. Three white soldiers pattern form when three bullish candles with no wicks are open below the previous candles closing and still close above the last candles high/closing.
- Bullish Harami Candlestick: Bullish Harami pattern consists of two candlesticks, the first candle is bearish, and another is small bullish candle that opens and closes inside the bearish candle.
- Three Inside Up Candlestick: The three inside up candlestick consists of three candlesticks. The first bearish candle indicates a continuation of the downtrend, and the second candle opens and closes inside the first bearish candle. These two candlesticks are like a bullish harami candlestick.
- Tweezer Bottom: The tweezer bottom pattern consists of two candlesticks. The first is a bearish candle, and the 2nd is a bullish candle.
- On-Neck Pattern: This candlestick is made up of two candles. The first is a bearish candle, and the 2nd is a bullish candle that opens a gap down but closes at the level of the previous bearish candle.
- Bullish Counterattack: This bullish counterattack is a bullish reversal pattern. This pattern consists of two candlestick in which the first candle is bearish, and after that price opens a gap down but closes near or above the previous candles closing.
- Three Outside Up: The three-outside-up pattern consists of three candlesticks. The first candle is a short bearish candle. The second is a healthy bullish candle bigger than the bearish candle, which covers the first candle, so it’s like a bullish engulfing pattern.
- White Marubozu Candlestick: The White marubozu candle is bullish reversal candle. It is a healthy bullish candlestick with no upper or lower wicks.
Bearish candlesticks are those that indicate down trending market. These candles are primarily shown in red color. These also work as a reversal. That’s why we can call them bearish reversal patterns.
- Bearish Engulfing: The bearish engulfing pattern forms when a bearish candle completely engulfs a bullish candle. More clearly, in this pattern red candle (bearish candle) completely covers the green candle (bullish candle).
- Hanging Man Candlestick: The hanging man candlestick pattern is a single candlestick. The hanging man pattern has a small body, and the lower wick size is at least twice the size of the body.
- Shooting Star: The shooting star candlestick is a single candlestick. It has a small body, and the upper wick size is at least twice the size of the body. And this candlestick has no lower wick, or sometimes it has a tiny lower wick which is okay.
- Evening Star Pattern: The evening star pattern is a bearish reversal candlestick. The evening star candlestick consists of 3 candles. The first is a bullish candle, the second is Doji, and the third is a bearish candle representing sellers’ power.
- Dark Cloud Cover: The dark cloud cover pattern is made of two candles. The first candle is bullish, representing a continuation of the uptrend, and the next candle opens the gap up. Still, it covers the first bullish candle by more than 50%, which shows that bulls are getting weaker in the uptrend, sellers are back, and the trend is about to change.
- Three Black Crows: This pattern consists of three candlesticks, which don’t have shadows or wicks. Three blacks crows pattern form when three bearish candles with no wicks are open above the previous candle’s closing and still close below the last candles low closing.
- Bearish Harami: This pattern consists of two candlesticks, the first candle is bullish, and another is a small bearish candle that opens and closes inside the bullish candle.
- Three Inside Down: The three inside down candlestick pattern consists of three candlesticks. The first bullish candle indicates a continuation of the uptrend, and the second candle opens and closes inside the first bullish candle. These two candlesticks are like a bearish harami pattern.
- Tweezer Top: The tweezer top consists of two candlesticks. The first is a bullish candle, and the other is a bearish candlestick. Both these candles have the same high.
- Bearish Counterattack Pattern: This pattern consists of two candlesticks in which the first candle is bullish, and after that price opens a gap up but closes near or below the previous candle closing.
- Three Outside Down: This pattern consists of three candlesticks. The first candle is a short bullish candle. The second is a healthy bearish candlestick bigger than the bullish candle, which covers the first candle, so its like a bearish engulfing pattern.
- Black Marubozu: The black marubozu candle is a healthy bearish candlestick with no upper or lower wicks. This candle represents increasing selling pressure in the market, and bulls are getting weaker, so they can’t even be able to let the price high anymore.
Continuation candlestick patterns continue the ongoing trend. for example, if an uptrend is going on and these candlestick patterns appear, they will continue the uptrend.
- Doji: Doji is formed when buyers and sellers try to control prices, but nobody can do so. Ultimately, this led to indecision in the market, and Doji formed.
- Falling Three Methods: This pattern is made of five candles, two healthy bearish candles containing three shorter candlesticks inside them.
- Spinning Top: The spinning top candlestick pattern is a little different than normal Doji. It has a little body, and Doji doesn’t have a body.
- High Wave: The high wave candlestick pattern mostly gets formed near the support or resistance level, where bulls and bears try to push the price in their own direction.
- Rising Three Methods: Rising three methods is a bullish pattern consisting of five candles. This pattern signals interruption but does not affect the ongoing uptrend.
- Falling Window: The falling window candlestick consists of two candles, and there is a gap between them due to high volatility in the market. The falling window is a trend continuation pattern, indicating that bears are influential in the market.
- Upside Tasuki Gap: The Upside Tasuki Gap consists of three candles. The first and second are strong bullish candles, and the third candlesticks is a bearish candle that closes between the gap formed by the previous two candles.
- Downside Tasuki Gap: The downside tasuki gap consists of three candles. The first and second are strong bearish candles, and the third candlestick is a bullish candle that closes between the gap formed by the previous two candles.
- Mat Hold: This pattern consists of five candles. It could be a bearish pattern or a bullish pattern.
Frequently Asked Questions (FAQ)
What are candlestick patterns?
Candlestick patterns are tools used in technical analysis to represent the price movement of a stock, commodity, or currency with open, close, high, and low levels.
Does candlestick patterns work?
The answer to this question can be subjective because candlestick patterns work, and sometimes don’t work. We should not trade solely based on these candlestick patterns because candlestick patterns represent trends in price movement, not guarantees.
How many types of candlesticks patterns are there?
As discussed above, there are 35 most powerful candlestick patterns, but mainly these patterns are divided into three categories: bullish candlestick, bearish candlestick, and continuation patterns.
Which candlestick pattern is most reliable?
There is no perfect answer to this question cause every trader uses these patterns as per their psychological and technical knowledge. But for me, Engulfing, Morning Star, and Evening Star Patterns, and all hammer candlesticks, are the most powerful candlestick patterns.
What time frame is best for candlestick patterns?
If you are an intraday trader, then the 5-minute candlestick chart and the 15-minute candlestick chart are useful for you.
What are bearish candlestick patterns?
Bearish candlestick are those that indicate down trending market. These candles are primarily shown in red color.
In this article, I have shared all candlestick patterns in pdf format, which you can download for free.
I have shared detailed information about each candle, which will help you understand them easily.
I hope everyone will benefit from this article, and everyone will learn those candlestick patterns quickly.
Feel free to share your feedback. If you face any problems related to downloading the pdf file, you can comment below.
Happy learning and happy trading!