Essential Candlestick Patterns

Candlesticks tell you what happened during a time period: who won (buyers or sellers) and how hard they fought.

Single Candle Patterns

Doji — Open and close at nearly the same price. Shows indecision. Often signals a reversal. Hammer — Small body at the top, long lower wick. Bullish reversal signal at the bottom of a downtrend. Shooting Star — Small body at the bottom, long upper wick. Bearish reversal signal at the top of an uptrend. Marubozu — Full body, no wicks. Shows strong conviction in one direction.

Multi-Candle Patterns

Engulfing — Second candle's body completely engulfs the first. Bullish or bearish depending on direction. Morning Star — Three candles: long bearish, small indecisive, long bullish. Strong bullish reversal. Evening Star — Opposite of Morning Star. Strong bearish reversal. Three White Soldiers — Three consecutive long bullish candles. Shows sustained buying pressure.

Pro Tips

• Patterns work best at key support/resistance levels
• Always wait for confirmation before trading a pattern
• Context matters — a hammer in a range is different from a hammer at support
• Combine with trend analysis for better signal accuracy