Candlestick patterns guide
Candlestick patterns describe the battle between buyers and sellers over one to five sessions. Their meaning depends heavily on where they appear, so each guide explains the trend context they need, what confirms them and what invalidates them.
Single-candle patterns
HammerA hammer is a single candle with a small body near the top of its range and a long lower wick, appearing after a decline. It shows sellers pushed price down hard during the session but buyers drove it back up.Inverted HammerAn inverted hammer has a small body near the bottom of its range and a long upper wick, appearing after a decline. It shows buyers attempted a push higher, even though they could not hold all of it.Hanging ManA hanging man has the same shape as a hammer, a small body near the top and a long lower wick, but it appears after an advance. It shows sellers were able to push price sharply lower during the session.Shooting StarA shooting star has a small body near the bottom of its range and a long upper wick, appearing after an advance. Buyers pushed price higher but sellers drove it back down before the close.DojiA doji is a candle whose open and close are almost the same, leaving a very thin body. It records a session where neither buyers nor sellers won.Dragonfly DojiA dragonfly doji opens and closes at or near the session high, with a long lower wick. Sellers pushed price down but buyers brought it all the way back.Gravestone DojiA gravestone doji opens and closes at or near the session low, with a long upper wick. Buyers pushed price higher but sellers erased all of it by the close.Long-Legged DojiA long-legged doji has long upper and lower wicks with almost no body. Price travelled a long way in both directions and finished where it started.Spinning TopA spinning top has a small body in the middle of its range with wicks above and below. It shows a session with movement in both directions and little net progress.Bullish MarubozuA bullish marubozu is a large green candle with little or no wick at either end. Price opened at the low and closed at the high, showing buyers in control from start to finish.Bearish MarubozuA bearish marubozu is a large red candle with little or no wick at either end. Price opened at the high and closed at the low, showing sellers in control for the whole session.
Two-candle patterns
Bullish EngulfingA bullish engulfing pattern is a two-candle reversal: a red candle followed by a larger green candle whose body completely covers the red body. It shows buyers overwhelming the prior session's selling.Bearish EngulfingA bearish engulfing pattern is a green candle followed by a larger red candle whose body completely covers the green body. It shows sellers taking over after an advance.Bullish HaramiA bullish harami is a large red candle followed by a small candle whose body sits inside the red body. It shows the selling has paused.Bearish HaramiA bearish harami is a large green candle followed by a small candle whose body sits inside the green body. It shows the advance has paused.Piercing LineA piercing line is a red candle followed by a green candle that opens below the red close and closes above the midpoint of the red body. Buyers recovered more than half of the prior session's losses.Dark Cloud CoverDark cloud cover is a green candle followed by a red candle that opens above the green close and closes below the midpoint of the green body. Sellers erased more than half of the prior session's gains.Tweezer BottomA tweezer bottom is two consecutive candles with matching or nearly matching lows after a decline, usually a red candle then a green one. The same low being defended twice suggests support.Tweezer TopA tweezer top is two consecutive candles with matching or nearly matching highs after an advance, usually a green candle then a red one. The same high being rejected twice suggests resistance.
Three to five-candle patterns
Morning StarA morning star is a three-candle bullish reversal: a large red candle, a small candle that gaps or sits lower, and a large green candle that closes well into the first candle's body.Evening StarAn evening star is a three-candle bearish reversal: a large green candle, a small candle that trades higher, and a large red candle that closes well into the first candle's body.Three White SoldiersThree white soldiers are three consecutive long green candles, each opening within the prior body and closing near its high. It shows steady, sustained buying.Three Black CrowsThree black crows are three consecutive long red candles, each opening within the prior body and closing near its low. It shows steady, sustained selling.Three Inside UpThree inside up is a bullish harami followed by a third candle that closes above the first candle's open. The third candle turns the harami's hint into a confirmed reversal pattern.Three Inside DownThree inside down is a bearish harami followed by a third candle that closes below the first candle's open.Three Outside UpThree outside up is a bullish engulfing pattern followed by a third candle that closes higher still, confirming the shift towards buyers.Three Outside DownThree outside down is a bearish engulfing pattern followed by a third candle that closes lower still, confirming the shift towards sellers.Rising Three MethodsRising three methods is a five-candle continuation pattern in an uptrend: a long green candle, three small candles that drift lower while staying inside its range, and a long green candle that closes at a new high.Falling Three MethodsFalling three methods is a five-candle continuation pattern in a downtrend: a long red candle, three small candles drifting higher inside its range, and a long red candle closing at a new low.Bullish Abandoned BabyA bullish abandoned baby is a rare three-candle reversal: a red candle, a doji that gaps below it, and a green candle that gaps above the doji. The doji is left 'abandoned' between two gaps.
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.