35 Most Powerful Candlestick Patterns (Free) Download

Candlestick patterns are one of the most powerful tools in technical analysis, providing traders with visual insights into market trends and potential price reversals. The 35 most powerful candlestick patterns can be categorized into bullish, bearish, and continuation signals.

Bullish patterns like the Hammer, Morning Star, and Bullish Engulfing indicate potential upward trends, while bearish patterns such as the Shooting Star, Evening Star, and Bearish Engulfing warn of potential price drops. Continuation patterns, like the Doji and Spinning Top, reflect market indecision and prepare traders for possible trend continuity. Patterns like the Three White Soldiers or Three Black Crows highlight strong market momentum in either direction. Understanding these patterns enables traders to predict market sentiment, make informed decisions, and refine trading strategies effectively.

What are 35 Candlestick Patterns?

The 35 most powerful candlestick patterns are visual tools in technical analysis that help traders predict price movements. These patterns are divided into three categories: bullish, bearish, and neutral/continuation patterns.

What are Bullish Candlestick Patterns

Bullish candlestick patterns are chart formations in technical analysis that indicate a potential upward movement in the price of an asset. These patterns typically occur after a downtrend, signaling that buyers are gaining control over sellers, and a reversal to an uptrend might be imminent. Traders and investors use these patterns to identify entry points for buying opportunities.

What is the Hammer Candlestick pattern?

The Hammer Candlestick Pattern is a significant bullish reversal pattern in technical analysis, often indicating a potential price bottom and subsequent upward movement.

Characteristics of the Hammer Candlestick Pattern

The Hammer candlestick pattern is an important technical analysis tool to signal potential trend reversals.

Size: Small body at the upper end of the trading range with a long lower shadow, at least twice the body length. Little to no upper shadow.

Color: The body can be green or red. A green body (closing higher than opening) is slightly more bullish. Context: Most significant after a downward trend, indicating a potential reversal and shift from bearish to bullish momentum

What is an Inverted Hammer Candlestick Pattern?

The Inverted Hammer is a bullish reversal candlestick pattern that appears at the end of a downtrend. It has a similar shape to the Hammer but with a long upper shadow and a small body at the lower end of the trading range. The Inverted Hammer suggests that buyers attempted to push the price higher during the session but were met with resistance, yet the price still closed near its opening level.

Key Characteristics of the Inverted Hammer:

• Shape: The candlestick has a small body located at the lower end of the trading range, with a long upper shadow. The lower shadow is either very small or nonexistent.
• Color: Like the Hammer, the color of the body (green or red) is less important, but a green body is considered slightly more bullish.
• Formation Context: Most significant when it appears after a downtrend, signaling a potential reversal and a shift from bearish to bullish sentiment.

Interpretation:

The long upper shadow indicates that buyers pushed the price up during the session, but the market couldn’t maintain those higher levels. This pattern signals that, although sellers are still in control, the buying pressure is increasing, and a shift in momentum may occur. When confirmed by the following candlestick, the Inverted Hammer can signal the start of an uptrend.

What is the Bullish Engulfing Candlestick Pattern?

The Bullish Engulfing is a two-candlestick pattern that signals a potential reversal from a downtrend to an uptrend. This pattern occurs when a small bearish candlestick is followed by a larger bullish candlestick, which completely “engulfs” the previous bearish candle. The second (bullish) candle indicates strong buying pressure, suggesting that buyers have taken control of the market, overpowering the previous selling activity.

Key Characteristics of the Bullish Engulfing Pattern:

• First Candle: A small bearish candle, indicating a period of selling pressure.
• Second Candle: A large bullish candle that completely engulfs the body of the previous bearish candle.
• Color: The first candle is red (bearish), and the second candle is green (bullish), but the color isn’t as important as the engulfing nature of the second candle.
• Formation Context: Most significant when it appears after a downtrend, signaling a potential bullish reversal.

Interpretation:

The Bullish Engulfing pattern suggests that buying pressure has overwhelmed the sellers, and the price may start to rise. It is a strong indicator that the market sentiment is shifting from bearish to bullish. Traders often use this pattern as a signal to enter long positions, especially when confirmed by higher volume or additional technical indicators.

What is Morning Star Candlestick Pattern?

The Morning Star is a three-candlestick bullish reversal pattern that typically signals the end of a downtrend and the beginning of an uptrend. It is formed by a long bearish candle, followed by a small-bodied candle (either bullish or bearish), and then a long bullish candle. This pattern indicates a shift in market sentiment from bearish to bullish.

Key Characteristics of the Morning Star Pattern:

• First Candle: A long bearish candle, indicating strong selling pressure.
• Second Candle: A small-bodied candle (either bullish or bearish) that represents indecision or a pause in the downtrend. This candle is often referred to as a “star.”
• Third Candle: A long bullish candle, signaling that buying pressure has taken over and that a reversal to the upside is likely.
• Color: The first candle is typically red (bearish), the second can be either red or green (neutral), and the third candle is green (bullish).

Formation Context:

The Morning Star is most significant after a prolonged downtrend, suggesting a reversal and the beginning of a bullish trend. The pattern is stronger when the third candle opens above the second candle’s close, confirming the upward shift in momentum.

Interpretation:

The Morning Star pattern indicates that sellers have lost their grip on the market, and buyers are starting to gain control. The small middle candle (the “star”) shows that the market is uncertain, but the long bullish candle that follows signals a strong buying push. Traders often look for confirmation through increased volume or other technical indicators to validate the pattern and consider it a buy signal.

What is a Piercing Line Candle Pattern?

The Piercing Line is a two-candlestick bullish reversal pattern that appears at the end of a downtrend. It is characterized by a bearish candle followed by a bullish candle that opens below the previous candle’s close but closes above the midpoint of the bearish candle. This pattern suggests a shift in momentum from selling pressure to buying pressure, signaling the potential start of an uptrend.

What is Three White Soldiers Candlestick Pattern?

The Three White Soldiers is a strong bullish reversal pattern that consists of three consecutive long bullish candlesticks. Each of the candlesticks opens within the body of the previous candle and closes progressively higher, forming a steady upward move. This pattern suggests that the market sentiment has shifted decisively from bearish to bullish, with buying pressure dominating over three consecutive sessions.

Key Characteristics of the Three White Soldiers Pattern:

1. Three Consecutive Bullish Candles:
   • The pattern is composed of three long bullish candles with little or no wicks, indicating strong buying momentum.
   • Each candle opens within the body of the previous one and closes higher, creating a consistent upward trend.
2. Progressive Increase in Price:
   • The closing price of each candle is higher than the previous candle, signaling the continuation of a strong upward trend.
3. Formation Context:
   • The Three White Soldiers pattern is most significant when it appears after a prolonged downtrend, indicating a reversal from bearish to bullish momentum.

Interpretation:

The Three White Soldiers pattern indicates that the market has shifted from selling pressure to strong buying momentum. It suggests a strong reversal and the potential start of an uptrend. Traders often look for this pattern after a prolonged downtrend, as it signals that buyers have taken control of the market. This pattern is considered a strong buy signal when confirmed with higher volume or other technical indicators.

What is Bullish Harami Candle Pattern?

The Bullish Harami is a two-candlestick pattern that signals a potential reversal from a downtrend to an uptrend. The pattern consists of a long bearish candlestick followed by a smaller bullish candlestick that is completely contained within the body of the first bearish candle. The word “Harami” means “pregnant” in Japanese, as the second candlestick is “pregnant” within the first one.

Key Characteristics of the Bullish Harami Pattern:

1. First Candle (Bearish):
   • The first candlestick is a long bearish candle, indicating that the market has been in a downtrend with strong selling pressure.
2. Second Candle (Bullish):
   • The second candlestick is a small bullish candle that is completely within the body of the first bearish candle, suggesting a reduction in selling pressure.
3. Formation Context:
   • The Bullish Harami pattern is more significant when it appears after a sustained downtrend, suggesting a potential reversal to an uptrend.

Interpretation:

The Bullish Harami indicates that the downtrend may be losing strength, as the smaller bullish candle suggests a shift towards buying pressure. It is a signal that the market may reverse and start moving higher. Traders typically view the Bullish Harami pattern as a signal to enter long positions, especially when the second candle closes above the previous day’s close or when accompanied by additional confirming indicators.

What is Bullish Harami Cross Pattern?

The Bullish Harami Cross is a variation of the Bullish Harami pattern. It occurs when the second candlestick is a Doji, a candle with no significant body, indicating indecision in the market. This pattern forms when a long bearish candle is followed by a Doji candle, suggesting that the market is pausing and potentially preparing for a bullish reversal.

Key Characteristics of the Bullish Harami Cross Pattern:

1. First Candle (Bearish):
   • The first candlestick is a long bearish candle, reflecting that the market is in a downtrend.
2. Second Candle (Doji):
   • The second candle is a Doji, which signifies indecision, as the opening and closing prices are nearly the same.
3. Formation Context:
   • The pattern is most significant when it appears after a strong downtrend, signaling that market sentiment may be shifting.

Interpretation:

The Bullish Harami Cross suggests that the downward momentum is weakening and that the market may be preparing for a reversal. The Doji candle shows indecision, indicating that buyers and sellers are in a standoff. When confirmed with a strong bullish candle in the next session, the pattern signals that buyers are gaining control. It is seen as a potential buy signal when accompanied by higher volume or other confirmation indicators.

What is the Rising Three Methods Pattern?

The Rising Three Methods is a continuation pattern that signals a strong bullish trend is likely to continue. It consists of five candlesticks: a long bullish candle, followed by three small-bodied candles (which can be either bullish or bearish), and then another long bullish candle. The three small candles indicate a period of consolidation or sideways movement, but the overall pattern suggests that the uptrend will resume.

Key Characteristics of the Rising Three Methods Pattern:

1. First Candle (Bullish):
   • The pattern begins with a long bullish candle, showing strong buying pressure.
2. Three Small Candles (Consolidation):
   • The next three candles are small-bodied candles, which may be either bullish or bearish. These candles indicate a pause or consolidation in the price action.
3. Fifth Candle (Bullish):
   • The pattern concludes with another long bullish candle, confirming that the previous upward momentum is continuing.

Formation Context:

The Rising Three Methods pattern is typically observed in the middle of an uptrend, signaling that the current trend will likely continue once the consolidation phase is over. It suggests that there is a temporary pause in the market before the buying pressure resumes.

Interpretation:

The Rising Three Methods pattern indicates that despite the temporary pause or consolidation, the market remains in a strong bullish trend. The pattern suggests that the price will continue to rise, and traders often look for this pattern as an opportunity to enter long positions. Confirmation with higher volume or other technical indicators can strengthen the reliability of this signal.

What are Bearish Candlestick Patterns?

Bearish candlestick patterns are formations on a candlestick chart that indicate a potential reversal from an uptrend to a downtrend. These patterns are crucial for traders as they can signal entry points for short positions or exits from long positions. Below are some of the most common bearish candlestick patterns.

What is the Evening Star Candlestick Pattern?

The Evening Star is a three-candlestick bearish reversal pattern that typically appears after an uptrend. It is composed of three distinct candlesticks: a long bullish candle, followed by a small-bodied candle (which can be either bullish or bearish), and then a long bearish candle that closes below the midpoint of the first candle. This pattern suggests that the market’s upward momentum is slowing down and could potentially reverse, signaling a shift to bearish sentiment.

Key Characteristics of the Evening Star Pattern:

1. First Candle (Bullish):
   • The first candlestick is a long bullish candle, reflecting strong buying pressure.
2. Second Candle (Small-bodied):
   • The second candle is a small-bodied candle, which shows indecision in the market. It could be a Doji, a small bullish, or a small bearish candle.
3. Third Candle (Bearish):
   • The third candle is a long bearish candle, which closes below the midpoint of the first bullish candle, signaling that sellers are taking control.

Interpretation:

The Evening Star pattern is considered a strong signal of a reversal, especially when it appears after an uptrend. The small-bodied middle candle shows that the market is indecisive, and the third bearish candle confirms that selling pressure is building. This pattern indicates that the market may start to decline, and traders often look to sell or short the asset when they spot this pattern.

What is the Bearish Engulfing Candlestick Pattern?

The Bearish Engulfing is a two-candlestick bearish reversal pattern that occurs after an uptrend. It consists of a small bullish candlestick followed by a large bearish candlestick that completely engulfs the body of the previous bullish candle. This pattern signifies that sellers have taken control and may push the price lower, signaling a potential downtrend.

Key Characteristics of the Bearish Engulfing Pattern:

1. First Candle (Bullish):
   • The first candle is a small bullish candle, showing that the market is in an uptrend.
2. Second Candle (Bearish):
   • The second candle is a large bearish candle that completely engulfs the body of the previous bullish candle, indicating that sellers are taking control of the market.

Interpretation:

The Bearish Engulfing pattern signals that the buying pressure has weakened, and a bearish reversal may be imminent. The large bearish candle shows that the sellers have overpowered the buyers, making it an ideal time for traders to consider selling or shorting the asset. The pattern is more reliable when it forms at key resistance levels or after a strong uptrend.

What is a Dark Cloud Cover Pattern?

The Dark Cloud Cover is a two-candlestick bearish reversal pattern that appears after an uptrend. It consists of a long bullish candle followed by a bearish candle that opens above the previous candle’s close but closes below the midpoint of the first candle. This pattern suggests that the market may be losing its bullish momentum, and a downward reversal is likely.

Key Characteristics of the Dark Cloud Cover Pattern:

1. First Candle (Bullish):
   • The first candlestick is a long bullish candle, indicating that the market is in an uptrend.
2. Second Candle (Bearish):
   • The second candlestick is a bearish candle that opens above the previous close but closes below the midpoint of the first candle’s body, indicating that sellers are gaining control.

Interpretation:

The Dark Cloud Cover pattern is seen as a bearish reversal signal. The bearish candle that opens above the previous close but closes below the midpoint of the bullish candle signifies that the buying pressure is weakening and sellers are starting to dominate. This pattern suggests that a price decline may follow, and traders may look to sell or short the asset. It is considered more reliable when it appears at key resistance levels.

What is the Shooting Star Candlestick Pattern?

The Shooting Star is a bearish reversal pattern that appears after an uptrend. It is characterized by a small body at the lower end of the trading range with a long upper shadow, typically at least twice the length of the body. The pattern suggests that the market has moved higher during the session but then reversed, indicating that buyers were not able to maintain control and sellers may start to take over.

Key Characteristics of the Shooting Star Pattern:

1. Small Body:
   • The body of the candlestick is small, indicating a brief period of indecision in the market.
2. Long Upper Shadow:
   • The upper shadow is long, at least twice the length of the body, showing that the price moved significantly higher during the session before falling back down.
3. Formation Context:
   • The Shooting Star pattern is most significant when it appears after an uptrend, as it indicates that the bullish momentum is fading.

Interpretation:

The Shooting Star is a bearish reversal pattern that signals a potential top or resistance point. The long upper shadow indicates that the market tested higher prices but failed to sustain them, suggesting that selling pressure may be building. This pattern is seen as a signal to sell or short the asset, especially when confirmed by subsequent bearish price action or other technical indicators.

What is Bearish Harami Candlestick Pattern?

The Bearish Harami is a two-candlestick bearish reversal pattern that forms after an uptrend. The first candlestick is a long bullish candle, followed by a smaller bearish candle that is completely contained within the body of the first candle. The pattern suggests that the previous bullish momentum may be losing strength, and a reversal to the downside could be imminent.

Key Characteristics of the Bearish Harami Pattern:

1. First Candle (Bullish):
   • The first candlestick is a long bullish candle, reflecting strong buying pressure.
2. Second Candle (Bearish):
   • The second candlestick is a small bearish candle that is entirely within the body of the first candlestick, suggesting that buying momentum is weakening.

Interpretation:

The Bearish Harami pattern indicates that the uptrend may be losing strength, and a bearish reversal could be on the horizon. The small bearish candle inside the previous bullish candle suggests indecision in the market, and traders may view this pattern as a signal to sell or short the asset. This pattern is considered more reliable when confirmed by other indicators, such as high volume or resistance levels.

What is the Hanging Man Candlestick Pattern?

The Hanging Man is a bearish reversal pattern that appears after an uptrend. It has a small body near the top of the candlestick with a long lower shadow, similar in shape to the Hammer pattern. The key difference is that the Hanging Man appears after an uptrend, signaling that the bullish momentum may be coming to an end and a potential downtrend is on the horizon.

Key Characteristics of the Hanging Man Pattern:

1. Small Body:
   • The body is small, indicating that the open and closed prices were close to each other.
2. Long Lower Shadow:
   • The lower shadow is long, typically at least twice the length of the body, indicating that there was significant downward movement during the session.
3. Formation Context:
   • The Hanging Man is more significant when it appears after a strong uptrend, signaling that the market may be ready for a reversal.

Interpretation:

The Hanging Man pattern suggests that despite the market moving higher during the session, selling pressure took over, causing the price to fall back down. This can indicate that the uptrend may be losing momentum, and a bearish reversal could follow. Traders typically look for confirmation from subsequent bearish candles or other indicators to validate the reversal signal.

These bearish candlestick patterns are valuable tools for traders to identify potential reversals and trend shifts in the market. When used in conjunction with other technical analysis indicators or confirmation signals, they can help traders make informed decisions about when to enter or exit trades.

What are Neutral Candlestick Patterns

Neutral Candlestick Patterns are patterns that do not provide a clear signal of price direction or trend. These patterns typically indicate indecision in the market, where neither the bulls nor the bears have control over the price movement during the trading session. While they do not provide a definitive buy or sell signal on their own, they can indicate a potential shift or pause in the current trend. Traders often use these patterns in combination with other technical indicators to gather more insight into market sentiment and to predict future price movements.

What is the Doji Candlestick Pattern?

The Doji is a neutral candlestick pattern characterized by a small body, where the opening and closing prices are very close to each other, creating a cross-like appearance. The upper and lower shadows can vary in length, indicating that neither bulls nor bears were able to establish control during the session. The Doji signifies indecision in the market and is often considered a signal of potential reversal when it appears after a strong trend, though it does not indicate a specific direction on its own.

Interpretation: A Doji by itself does not suggest a clear trend but signals market indecision. When it forms after an uptrend or downtrend, it can suggest that the current trend may be losing momentum. Traders typically wait for confirmation from subsequent candles before taking action, as a Doji alone does not provide enough information to predict the next move. It is more reliable when combined with other technical indicators or candlestick patterns.

What is the Spinning Top Candlestick Pattern?

The Spinning Top is a neutral candlestick pattern that has a small body in the center with long upper and lower shadows. This pattern indicates that there was significant price movement during the session but the price closed near the opening price, showing indecision in the market. The Spinning Top suggests a struggle between buyers and sellers, with neither side gaining control.

Interpretation: The Spinning Top pattern signals uncertainty and indecision in the market. It does not provide a clear indication of a trend reversal, but it can suggest that the current trend may be losing strength. Traders often look for additional confirmation from following candles before making decisions. The Spinning Top is considered more significant when it occurs at key support or resistance levels.

What is the Long-Legged Doji Candlestick Pattern?

The Long-Legged Doji is a variation of the Doji pattern, characterized by long upper and lower shadows with a very small body. It indicates that both bulls and bears were active during the session, but neither side was able to control the price, leading to a close near the opening price. This pattern highlights extreme market indecision.

Interpretation: The Long-Legged Doji suggests that the market is in a state of indecision and may be on the brink of a trend change. While the pattern itself does not indicate the direction of the trend, its appearance after a strong trend could signal that a reversal is possible. Traders typically await confirmation through the next candlestick or additional technical indicators before making any trading decisions.

What are Continuation Candlestick Patterns?

Continuation Candlestick Patterns are patterns that indicate the potential for the current trend (either upward or downward) to continue in the same direction. These patterns form during an existing trend and signal that the trend is likely to persist after a brief pause or consolidation. Essentially, they suggest that the market sentiment is still in favor of the prevailing trend, and price action is likely to move further in the same direction.

What is the Rising Three Methods pattern?

The Rising Three Methods is a bullish pattern where a strong upward candle is followed by three small candles that stay within the range of the first candle, and then another long upward candle. This pattern suggests that the upward trend is likely to continue after a brief pause.

What is the Falling Three Methods pattern?

The Falling Three Method is a bearish pattern where a long downward candle is followed by three small candles that remain within the range of the first candle, and then another long downward candle. It indicates that the downward trend is likely to continue after a short consolidation phase.

What is the Three White Soldiers pattern?

The Three White Soldiers is a bullish continuation pattern formed by three consecutive long green candles. Each candle opens within the body of the previous one and closes higher. It indicates that the uptrend is likely to continue with strong bullish momentum.

What is the Three Black Crows pattern?

The Three Black Crows is a bearish continuation pattern consisting of three consecutive long red candles. Each candle opens within the body of the previous one and closes lower. It indicates that the downtrend is likely to continue with strong bearish momentum.

What is the Continuation Doji pattern?

The Continuation Doji is a neutral pattern with a small body and long shadows. It signifies indecision in the market but suggests that the current trend is likely to continue after a brief pause, especially when found in the context of a strong trend.

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