39 Different Types of Candlesticks Patterns

39 Different types of candlesticks patterns is a list of candlestick patterns comprising some of the strongest and mostly used candlestick patterns. Knowing 39 different types of candlestick patterns will help a beginner trader in leveling up his trading game. 

Candlestick patterns offer a visual representation of how the forces of demand and supply affect the prices of any specific stock or commodity. There are several types of candlestick patterns. Traders use different types of candlestick patterns to identify and trade in the markets. Candlestick pattern types can be found in both a bullish market as well as a bearish market. 

Different types of candlestick patterns tell you a different story about the price chart. Candlestick patterns have been accepted fairly by the traders worldwide to be the most effective technical tool for reading a price chart. 

Candlestick patterns were first used in Japan in the 17^th century. Candlestick patterns have been able to showcase the emotions of market participants on a price chart, in a way that is easy to read and understand. 

Candlestick patterns are made by plotting the open, high, low and close prices of any specific stock over some time. Each candle contains a body and wicks, which showcases the opening and closing, high and low price of the security. Traders take trading decisions by using candlestick patterns to identify the repeating behavior of the markets. 

One of the reasons why candlestick patterns are accepted by traders worldwide is the fact that these patterns have been able to represent the market sentiment very well. Traders using candlestick patterns can read a chart in a much more effective way. 

Anatomy of a candlestick

As you can see from the above picture, the color of a candle bar is green when the closing price of a bar is more than the open of the candle bar for that specific time interval; suppose Daily time frame.
When the time frame is daily, the opening price is the price at 9:15 am and the closing price is the price at 3:30 pm and the lows and highs are the respective lows and highs a stock or script reached during the entire day between 9:15 am – 3:30 pm. 

The color of a candle bar is red when the closing price of a bar is less than the open of the candle bar for that specific time interval; suppose Daily time frame.
When the time frame is daily, the opening price is the price at 9:15 am and the closing price is the price at 3:30 pm and the lows and highs are the respective lows and highs a stock or script reached during the entire day between 9:15 am – 3:30 pm. The color is red because the closing price at 3:30 is lower than 9:15 am (that is the opening price)

1. Bullish Engulfing 

Bullish engulfing candlestick pattern indicates that the buyers are now in control and that the number of buyers have outweighed the number of sellers. Bullish engulfing pattern is made at the bottom of a price chart and it marks what traders conclude as a potential market bottom.

Bullish engulfing candlestick pattern can be identified when a small red candle’s high and low are breached by a large green candle at the bottom of a price chart .

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with Bullish Engulfing selected by you from the basket of candlestick patterns. 

The pros of this candlestick pattern are that it provides the traders with an early sign of a potential trend reversal. Bullish engulfing pattern is also very easy to spot on the price chart. 

A con of this candlestick pattern is that, like all technical tools, this pattern too can generate false signals. Major drawback is, due to over dependence on engulfing patterns, these are usually created to target retail buyers when the actual trend is downside.

2. Bullish Spinning Top 

Bullish spinning top candlestick pattern indicates a potential trend reversal from downtrend to uptrend. Bullish spinning top experiences wild price movements on both its upper side and lower side but at the same time, the candle opens and closes near the same price.

Bullish spinning top shows the indecision of the market participants. Meaning, it tells us that neither the buyers nor the sellers are currently in control of the market. 

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with Bullish Spinning Top selected by you from the basket of candlestick patterns. 

Bullish spinning top is spotted on the bottom of a chart. It leaves a long wick on both lower and higher sides and closes nearly at the price. This is why this candlestick pattern is easier for even beginners to spot on the price chart. 

The pros of this candlestick pattern are that it is easier to identify, and gives traders a warning signal of a potential trend reversal. Traders also use the low of the bullish spinning top pattern as a stop loss of their bullish trade position. 

The cons of this candlestick pattern are that compared to other candlestick patterns, the bullish spinning top is not that strong and can generate false signals. 

3. Bearish Spinning Top 

Bearish spinning top candlestick pattern indicates a potential trend reversal from uptrend to downtrend. Bearish spinning top experiences wild price movements on both its upper and lower side. But at the same time, the candle opens and closes almost at the same price.

Bearish spinning top shows the confusion in the market. It tells us that neither sellers nor buyers are currently in hold of the markets. 

Bearish spinning top is spotted on the upside of a price chart. It leaves a long wick on both the upper side and lower side of the candle. This candlestick pattern can be easily spotted because of its unique structure. 

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with Bearish Spinning Top selected by you from the basket of candlestick patterns. 

The pros of the bearish spinning top are that it provides traders with an early sign of a potential trend reversal and the pattern is clearly established for even beginners to spot. 

The cons of this candlestick pattern are that it is not as strong as other candlestick patterns and can generate false signals.

4. Bullish Harami

Bullish harami candlestick pattern is a 2-candle pattern. Bullish harami pattern occurs when a small body (Green) candle forms under a bigger body (Red) candle. This pattern usually occurs at the bottom of the chart and signals a potential bullish trend reversal.

Bullish harami pattern indicates confusion in the market participants. It also tells us that the selling pressure is declining and the buyers are slowly taking control over the market. 

Bullish harami candlestick patterns can easily be spotted on the bottom of the price chart. You just have to spot a big bearish candle followed by a small bullish candle. Note that the bullish candle must form under the high and low of the previous bearish candle as shown in the above diagram. 

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with Bullish harami pattern selected by you from the basket of candlestick patterns. 

The pros of the bullish harami pattern are that it gives traders an early signal of the potential bullish trend reversal and is easy to spot on a naked chart.

The cons of this candlestick pattern are that it can generate a false signal and some additional confirmation may be required  to approve the authenticity of this candlestick pattern. 

5. Tweezer Bottom

The Tweezer bottom candlestick pattern is a bullish reversal pattern. Tweezer bottom pattern occurs when there are two or more candles with identical lows that mark a horizontal line of support. This candlestick pattern is generally formed on the bottom of a price chart.

Tweezer bottom is one of the most underrated patterns out there. Smart Traders often presume tweezer bottoms to be indicating the trap of retail traders and finding opportunity in the direction opposite to the direction of the retail money flow. 

The Tweezer bottom pattern is looked upon as a strong bullish pattern. It signals that the buyers are stepping in and buying from the same level. It also shows that the sellers are getting weaker and the potential bottom of the market is in making. 

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with Tweezer Bottom selected by you from the basket of candlestick patterns. 

Tweezer bottom pattern can be easily spotted on the bottom of a price chart. You just have to spot two or more candles having almost identical lows or two or more consecutive candles that are bouncing back from almost similar levels of support. 

The pros of tweezer bottom pattern are that it is a strong bullish reversal pattern which can also be used with conjunction of other technical indicators as well. 

The con of this pattern is that like all other technical tools, this pattern can also generate false trading signals. 

6. Bearish Engulfing 

Bearish engulfing candlestick pattern indicates that sellers have now taken control over the market. Bearish engulfing pattern also shows that the number of sellers have outweighed the number of buyers. This candlestick pattern can be spotted on the top of the price chart and is perceived as the potential market top.

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with Bearish Engulfing selected by you from the basket of candlestick patterns. 

Bearish engulfing can be identified when a small green candle’s high and low are breached by a large red candle at the top of a price chart. The pros of this candlestick pattern are that it provides the traders with an early sign of a potential bearish trend reversal. This candlestick pattern is also easier to spot on the naked price chart. 

A con of this candlestick pattern is that like all technical tools, this candlestick pattern too can generate false trading signals.

7. Doji

Doji candlestick pattern occurs when the price of a stock opens and closes at almost the same level. Doji candlestick patterns become very easy to spot as it has an almost non-existent body.

Doji candlesticks are very popular. Traders who don’t trade by using candlestick patterns also watch out for doji’s because they significantly point at some halt in the direction flow. It indicates probability of upcoming sharp moves or complete indecision unless the real trend sets to kick in.

This candlestick pattern signals that there is indecision between buyers and sellers. A doji can be formed at the top as well as the bottom of a price chart. Meaning, it signals a potential reversal depending on which side of the chart it has formed. 

Doji is a very simple pattern to spot because of its structure. You just have to look for a candlestick pattern that has a very small or nobody at all. 

The pros of this candlestick pattern are that it signals an early sign of a potential trend reversal and that it is very easy to spot on a naked chart. 

The con of a doji is that it can be formed multiple times on a price chart and create confusion for a trader. Also, it can also generate false trading signals. 

8. Gravestone Doji

Gravestone doji candlestick pattern indicates a potential bearish trend reversal. Gravestone doji is generally formed at the top of the price chart. Traders interpret this pattern as a sign to take a bearish trade in the underlying stock.

Gravestone doji essentially tells us that buyers were trying to take the market higher but eventually sellers took control of the market. The long wick on the upper side of this candle shows that buyers have lost the momentum.

Gravestone doji can be spotted at the top of a price chart. A candle having a long wick on its upper side with the price opening and closing at nearly the same level is identified as the gravestone doji. 

The pros of gravestone doji are that it signals a potential bearish trend reversal and it can also be easily identified on the naked chart. Gravestone doji can also be used with the combination of other technical indicators. 

The cons of this candlestick pattern are that it can generate false trading signals and the formation of the gravestone doji has become very rare.

9. Dragonfly Doji

Dragonfly doji candlestick pattern indicates a potential bullish trend reversal. Dragonfly doji is generally formed at the bottom of the price chart. Traders interpret this pattern as a signal to take a bullish trade in the underlying stock.

Dragonfly doji tells us that the sellers were pushing the market on the lower side but they eventually lost control to increasing buying pressure. The long wick on the lower side of this candle shows the strength of buyers on that particular price level. 

Dragonfly doji can be spotted at the bottom of a price chart. You will just have to look for a candle having a long wick on its lower side with the price opening and closing at nearly the same level. 

The pros of dragonfly doji are that it gives trades an early signal of a potential bullish trend reversal and it can also be identified easily on the naked chart. This candlestick pattern becomes more effective when used with the combination of other technical tools. 

The con of this candlestick pattern is that it can generate false trading signals.

10. Three Outside Up

The three outside up candlestick pattern is a bullish reversal pattern which is formed at the bottom of the price chart. Three outside up patterns are formed when the first candle is bearish followed by a long bullish candle which covers the bearish candle from both sides and lastly, the third candle which breaks and closes above the 2^nd candle’s high.

Three outside up patterns is a strong bullish pattern which indicates that the bears tried to take the market further down but were defeated by immense buying pressure. This pattern also signals a potential bottoming out of the market. 

This candlestick pattern is spotted on the bottom of the chart. Spotting this pattern is very easy. You just have to look for 3 candles in a sequence where : 

1. The first candle is a bearish candle looking to continue the established trend

2. The second candle is a strong bullish candle which covers both the highs and lows of the first candle

3. The third candle resumes the new trend by breaking above the second candle’s high

The pros of this candlestick pattern is that it is a strong reversal pattern which has a high probability rate and it is also easier to spot on the price chart. 

The con of the three outside up candlestick patterns is that like all technical tools, it can generate false trading signals. 

11. Three Inside Down

The three inside down candlestick pattern is a bearish reversal pattern which is formed at the top of the price chart. Three inside down patterns are formed when the first candle is bullish followed by a long bearish candle that covers the bullish candle from both sides and lastly, the third candle which breaks and closes below the 2^nd candle’s low.

Three inside down pattern is a strong bearish pattern which shows that the bulls tried to take the market further up but lost against immense selling pressure. This pattern also signals a potential top in the making. 

This candlestick pattern is spotted on the top of the price chart. Spotting three inside down candlestick patterns is very easy. 

The pros of this candlestick pattern is that it is a strong reversal pattern which has a high probability rate and it is also easier to spot on the naked chart. 

The con of the three inside down candlestick pattern is that like all technical tools, it can generate false trading signals. 

12. Long Legged Doji

A long legged doji pattern resembles the indecision between the market participants. A long legged doji pattern can form at the top of the chart as well as the bottom of the chart.

A long legged doji leaves long wicks on both of its sides and the price opens and closes at nearly the same price. This pattern signals that the buyers and sellers are evenly matched and there is no confirmation of the future trend. 

Long legged doji can be easily spotted on a naked chart. This candlestick pattern has a long wick on both of its sides and is very small or no body at all. 

The pro of this pattern is that it is a strong signal of market indecision. It tells traders to stop their trading till the market is in a clear trend. 

The cons of this pattern are that it can provide false trading signals and it creates confusion between the traders. 

13. Hanging Man

Hanging man candlestick pattern is a bearish trend reversal pattern. Hanging man pattern is formed at the top of the price chart. The pattern has a long wick on the downside but little to no wick on the upper side of the candle.

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with Hanging Man selected by you from the basket of candlestick patterns. 

Hanging man indicates that the buyers are slowing down and sellers have entered the market. Sellers have started to take positions and the market can potentially start going downwards from this level. 

Hanging man can be spotted after a bullish rally near the top of the price chart. Hanging man is easier to spot because of its structure.

The pro of this candlestick pattern is that it is a very strong indication of a potential trend reversal.

The con of hanging man is that it generates false trading signals.

14. Double Candlestick Patterns

Double candlestick patterns are the patterns that are formed by two consecutive candlesticks. Double candlestick patterns can be bullish as well as bearish. The location of these patterns on the price chart determines the direction of these patterns.

A bullish example of this candlestick pattern can be a bullish engulfing candlestick pattern. And similarly, a bearish example of this pattern can be a bearish engulfing candlestick pattern. 

These candlestick patterns can be formed on either side of the chart. They are easy to spot on a naked price chart. 

The pros of these patterns are that they are easy to spot on the price chart and the probability rate of these patterns are high.

The con of double candlesticks patterns is that they can still generate false trading signals.

15. Bullish Kicker 

The bullish kicker pattern is a candlestick pattern where a bearish candle is immediately followed by a strong bullish candle. The bullish kicker pattern forms when the bullish candle gaps up, breaks and closes above the previous bearish candle’s high.

Bullish kicker pattern indicates that the buyers have made a comeback with a strong desire to push the prices further up. This pattern also represents the quick sentiment shift of the market participants. 

The bullish kicker candlestick pattern can be easily spotted on the naked price chart at bottom. 

The pros of this pattern are that it is a very strong pattern and it is also supported by strong amounts of volume most of the time. 

The cons of this pattern are that the bullish kicker pattern does not occur most of the times and beginner traders can confuse this pattern with the gap-up pattern.

16. Piercing Line

Piercing line candlestick pattern is a bullish reversal pattern. Piercing line pattern is formed when a strong bearish candle is followed by a bullish candle which has opened below the bearish candle’s low but it closes above the midpoint of the previous candle.

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with The Piercing Line selected by you from the basket of candlestick patterns. 

Piercing line pattern is formed when the market experiences a bearish day at first, but on the second day, market sentiments are quickly shifted towards buyers and the market is rallying despite opening below yesterday’s low. 

This candlestick pattern can be found on the bottom of the price chart. 

The pros of this pattern are that this candlestick pattern is strong and easy to spot on a naked price chart.

The cons of the piercing line candlestick pattern are that its occurrence is rare and beginners can confuse this pattern with another candlestick pattern. 

17. Bearish Kicker

The bearish kicker pattern is a candlestick pattern where a bullish candle is quickly followed by a strong bearish candle. The bearish kicker pattern forms when the bearish candle gaps down, breaks and closes below the previous bullish candle’s low.

Bearish kicker pattern indicates that the sellers are back with conviction. This pattern also represents the quick sentiment shift of the market participants. 

The bearish kicker candlestick pattern can easily be spotted on the top of a naked price chart. 

The pros of this pattern are that it is a very strong pattern and oftentimes, this pattern is supported by strong amounts of volume.

The cons of this pattern are that the occurrence of the bearish kicker pattern is rare and beginner traders can end up confusing this pattern with the gap-down pattern. 

18. Dark Cloud Cover

The dark cloud cover candlestick pattern is a bearish trend reversal pattern. Dark cloud cover pattern forms when a bullish candlestick is followed by a bearish candle which has opened above the bullish candle’s high but it ends up closing below the midpoint of its previous candle.

Dark cloud cover pattern is formed when the market experiences a bullish day at first, but on the second day, market sentiments change rapidly and sellers are pushing the markets down. 

This candlestick pattern can be easily spotted at the top of a naked price chart. You just have to look at a bearish candle which has opened above a bullish candle’s high but has closed below the midpoint of its previous candle. 

The pros of this pattern are that this candlestick pattern is strong and easy for a beginner to spot.

The cons of the dark cloud cover pattern are that its occurrence is rare and beginners can confuse this pattern with another candlestick pattern. 

19. Bearish Harami

Bearish harami candlestick pattern is a 2-candle pattern. Bearish harami pattern occurs when a small body (Red) candle forms under a bigger body (Green) candle. This pattern usually occurs at the top of the price chart and signals a potential bearish trend reversal.

Bearish harami pattern indicates indecision in the market participants. It also tells us that the buying pressure is declining and the sellers are slowly taking control over the market. 

Bearish harami candlestick patterns can be easily spotted on the top of the price chart. Note that the bearish candle must form under the high and low of the previous bearish candle as shown in the above diagram. 

The pros of the bearish harami pattern are that it gives traders an early signal of the potential bearish trend reversal and this pattern is easy to spot on a naked chart. 

The cons of this candlestick pattern are that it can generate a false trading signal and it also requires some additional confirmation to approve the authenticity of this candlestick pattern.

20. Tweezer Top

The Tweezer top candlestick pattern is a bearish reversal pattern. Tweezer top pattern occurs when there are two or more candles having identical highs that mark a horizontal line of resistance. This candlestick pattern is generally formed at the top of a price chart.

The Tweezer top pattern is looked upon as a strong bearish pattern. It signals that the sellers are stepping in and selling from the same resistance level. It also shows that the buyers are getting weaker and the potential top of the market is in making. 

The Tweezer top pattern can be easily spotted at the top of the price chart. 

The pros of the tweezer top pattern are that it is a strong bearish reversal pattern which can also be used with the conjunction of other technical indicators. 

The con of this pattern is that like all other technical tools. This pattern can also generate false trading signals. 

21. Marubozu

A marubozu candlestick pattern can be bullish as well as bearish. Morubozu candlestick pattern is formed when a candle opens at the low or high of the previous candle and closes at the opposite end without leaving any wicks.

A bullish marubozu is formed when a bullish candle opens at the low of a bearish candle and closes near the same level of its previous candle’s high. This indicates the strength of buyers. Similarly, a bearish marubozu is formed when a bearish candle opens at the high of a bullish candle and closes near the same level of its previous candle’s low.

Spotting marubozu candlestick patterns is very easy. Note that this candlestick pattern has very little to no wick at all. 

The pros of this pattern are that this pattern is strong and easy for even beginners to spot on the naked price chart. 

The con of this pattern is that this pattern can get very risky to trade for beginner traders. 

22. Triple Candlestick Patterns

Triple candlestick patterns are the patterns that are formed by three consecutive candlesticks. Triple candlestick patterns can be bullish as well as bearish. The location of these patterns on the price chart determines the direction of these patterns.

A bullish example of this candlestick pattern can be the morning star candlestick pattern. And similarly, a bearish example of this pattern can be an evening star candlestick pattern. 

The triple candlestick patterns can be formed on either side of the chart. 

The pros of these patterns are that they are easy to spot on the naked price chart and the probability rate of these patterns are high.

The con of triple candlestick patterns is that they can still generate false trading signals. 

23. Morning Star Doji

A morning star doji candlestick pattern is a bullish reversal pattern. Morning star doji is made up of three candles. The first candle is a strong bearish candle which resumes the bearish trend. The second candle is a doji which represents the indecision of the market participants and also shows that the selling pressure has slowed down. The third candle is a strong bullish candle which marks the trend change from bearish to bullish.

Morning star doji is a very strong bullish reversal which shows that the bears have lost the momentum and now the bulls have taken over and will continue to rally the market up.

This candlestick pattern is formed at the bottom of the chart after a downtrend. You can easily spot this three-candle pattern on a naked chart. 

The pros of this pattern are that this pattern provides a clear indication of trend reversal and it also provides the traders with a favorable risk to reward ratio.

The cons of this pattern are that this pattern can generate false trading signals and this pattern also takes a long time to develop on the price chart. 

24. Bullish Abandoned Baby

A bullish abandoned baby is a bullish reversal pattern. Bullish abandoned baby pattern is made up of three candles. The first is a strong bearish candle. Second one is a doji which opens after a gap down. The third candle is a strong bullish candle which gaps up and marks a trend change.

This candlestick pattern occurs very rarely. Market only reacts this wildly when the euphoria or fear within market participants is very strong.

Bullish abandoned baby pattern is formed at the bottom of the price chart and is very easy to spot because of its structure. 

The pros of this pattern are that the probability rate of this pattern is high and its very easy to identify.

The con of this pattern is that the occurrence of this pattern is very rare

25. Morning Star

A morning star candlestick pattern is a bullish reversal pattern. Morning star pattern is made up of three candles. The first candle is a strong bearish candle. The second candle is a doji which shows the indecision of the market participants and also shows that the sellers are getting weak. The third candle is a strong bullish candle which marks the trend change.

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with The Morning Star selected by you from the basket of candlestick patterns. 

This candlestick pattern is a strong indication of the potential trend reversal. Traders use this pattern to set up stop losses below the doji or the bullish candle. 

This pattern is formed at the bottom of the price chart and can be easily spotted on the naked price chart. 

The pros of this candlestick pattern are that the probability rate of this pattern is high and it can be easily spotted on the naked chart.

The cons of this candlestick pattern are that it can still generate false trading signals and this pattern is not that effective without the use of any other additional technical tool. 

26. Evening Star Doji

An evening star doji candlestick pattern is a bearish reversal pattern. Evening star doji is made up of three candles. The first candle is a strong bullish candle which resumes the bullish trend. The second candle is a doji which represents the indecision of the market participants and also shows that the buying pressure has slowed down. The third candle is a strong bearish candle which marks the trend change from bullish to bearish.

Evening star doji is a very strong bearish reversal which shows that the bulls have lost the momentum and now the bears have taken over.

This candlestick pattern is formed at the top of the chart after an uptrend. You can easily spot this three-candle pattern on a naked chart. 

The pros of this pattern are that this pattern provides a clear indication of trend reversal and it also provides the traders with a favorable risk to reward ratio. 

The con of this pattern is that this pattern can generate false trading signals.

27. Evening Star

An evening star candlestick pattern is a bearish reversal pattern. Evening star pattern is made3 up of three candles. The first candle is a strong bullish candle. The second candle is a doji which shows the indecision of the market participants and also shows that the buyers are getting weak. The third candle is a strong bearish candle which marks the trend change.

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with The Evening Star selected by you from the basket of candlestick patterns. 

This candlestick pattern is a strong indication of the potential bearish trend reversal. Traders often use this pattern to set up stop losses above the doji’s high. 

This pattern is formed at the top of the price chart and can be easily spotted on the naked price chart. 

The pros of this candlestick pattern are that the probability rate of this pattern is high and it is easier for even beginners to spot this pattern on the price chart. 

The con of this pattern is that it can still generate false trading signals and this pattern is not that effective without the use of any other additional technical tool.

28. Three White Soldiers

The three white soldiers candlestick pattern is formed when the market makes three consecutive bullish candles with higher closes. The three white soldiers pattern is formed at the bottom of the price chart after a bearish rally.

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with The Three White Soldiers selected by you from the basket of candlestick patterns. 

In order for this pattern to be valid, each candle must open above the previous candle’s low and close above the previous candle’s high. This indicates the strength of the buyers.

This candlestick pattern can be spotted at the bottom of the chart right after a bearish rally ends. It is fairly easy to spot this pattern because of its structure. 

The pros of this pattern are that the probability rate of this pattern is very high and the structure of this candlestick pattern can be easily spotted by even a beginner trader. 

The con of this pattern is that the occurrence of this candlestick pattern is very rare. 

29. Three Black Crows

The three black crows candlestick pattern is formed when the market makes three consecutive bearish candles with lower lows. The three black crows pattern is formed at the top of the price chart right after a bullish rally.

Traders who want to save their time during analysis and finding the specific candlestick pattern, strike.money provides an entire list of stocks that have the specific candlestick pattern.
By scanning through the ultimate candlestick pattern scanner that will sort the list of stocks with The Three Black Crows / Soldiers selected by you from the basket of candlestick patterns. 

This pattern is only valid when each candle opens below the previous candle high and closes below the previous candle’s low. This shows the strength of the sellers. 

This candlestick pattern can be spotted at the top of the chart right after a bullish rally. The structure of this pattern makes it easier for this pattern to be spotted on the naked chart. 

The pros of this pattern are that the probability rate of this pattern is very high and the structure of this candlestick pattern can easily be spotted by even a beginner trader. 

The con of this pattern is that the occurrence of this candlestick pattern is very rare.

30. Shooting Star

The shooting star candlestick pattern is a single candlestick bearish reversal pattern. Shooting star is formed with a single candle which has a long wick at the top and a small or no body. The shooting star pattern is confirmed after a strong bearish candle follows the shooting star candle.

The long upper wick of the pattern represents that initially the buyers were looking to take the prices further up but they eventually lost control and the sellers are now in control. 

Shooting star is very easy to spot on the naked chart because of its structure. This pattern is formed at the top of the price chart and marks the potential top of the market. 

The pros of this pattern are that it provides the traders with clear indication of a potential trend change and traders can also place their stop losses at the shooting star’s high.

The cons of this pattern are that it can generate false trading signals and it can be accurate in specific market conditions but it is not accurate in the sideways market. 

31. Bearish Abandoned Baby

A bearish abandoned baby is a bearish reversal pattern. Bearish abandoned baby pattern is made up of three candles. The first candle is a strong bullish candle. The second one is a doji which opens after a gap up. The third candle is a strong bearish candle which gaps down and marks a trend change.

Occasions like this happen very rarely. The market only reacts this wildly when the fear or euphoria within the market participants is at its peak.

Bearish abandoned baby pattern is formed at the top of the price chart and is very easy to spot because of its structure. 

The pros of this pattern are that the probability rate of this pattern is high and it is very easy to identify.

The con of this pattern is that the occurrence of this pattern is very rare.

32. Rising Three

The rising three candlestick pattern is a bullish continuation pattern. The rising three pattern consists of three candles and it forms during an uptrend. The only condition of this pattern is that the three small bearish candles must be contained within the range of the first strong bullish candle.

This pattern represents a healthy bullish rally structure. The three candles that make up this pattern are called retracement. Think of it as buyers resting and regrouping to take the markets further up.

You can easily spot these candlestick patterns in an uptrend. The occurrence of this candlestick is very common.

The pro of this candlestick pattern is that it provides a very clear indication that the market will continue to go higher.

The con of this pattern is that there is no confirmation that the market will continue to go up higher. 

33. Falling Three

The falling three candlestick pattern is a bearish continuation pattern. The falling three pattern consists of three candles and it forms during a downtrend. The only condition of this pattern is that the three small bullish candles must be contained within the range of the first strong bearish candle.

This pattern represents a healthy bearish continuation rally. The three candles that make up this pattern are called retracement. Think of it as sellers resting and regrouping to take the markets further down. 

You can easily spot these candlestick patterns in a downtrend. The occurrence of this candlestick is very common.

The pro of this candlestick pattern is that it provides a very clear indication that the market will continue to go lower.

The con of this pattern is that there is no guarantee that the market will continue to go down.

34. Three Outside Down

The three outside down candlestick pattern is a bearish reversal pattern. Three outside down patterns consist of three candles. The first candle is a bullish candle. The second is a strong bearish candle which totally engulfs the previous bullish candle. The third candle closes below the second candle’s low. 

This pattern is considered a strong bearish pattern. It indicates that the bears are now in control of the market and the market may potentially continue to go down. 

This candlestick pattern forms at the top of the price chart and can be spotted easily because of its structure. 

The pros of this pattern are that this pattern provides a strong indication of a market reversal and this pattern can also be easily seen on the price chart.

The con of this pattern is that it can generate false trading signals.

35. Three Inside Up

The three inside up candlestick pattern is a bullish reversal pattern. Three inside up pattern consists of three candles. The first candle is a bearish candle. The second candle can be a bullish or bearish candle. The third candle is a strong bullish candle which marks the trend change.

This pattern is considered as a strong bullish pattern. It indicates that the bulls are now in control of the market and the market may potentially continue to go up.

This candlestick pattern forms at the bottom of the price chart and can be spotted easily because of its structure. 

The pro of this pattern is that this pattern provides a clear indication of a potential market reversal.

The con of this pattern is that it can still generate false trading signals.

36. Tri-Star

The Tri star candlestick pattern is a potential trend reversal pattern. The tri star pattern can be bearish as well as bullish. If this pattern is formed on the bottom of the chart, it becomes a bullish pattern and vice versa.

The occurrence of this pattern is very rare. This candlestick pattern shows the indecision amongst the market participants. It is better to stay out of the market when this kind of pattern forms. 

You can spot this pattern at the bottom as well as at the top of the price chart. The way this pattern looks makes it easier for even a beginner trader to spot it.

The pros of this pattern is that it provides a strong indication of a potential trend change and it is also useful for traders looking for potential entries and exits in the market.

The con of this pattern is that the occurrence of this pattern is very rare.

37. Single Candlestick Patterns

Single candlestick patterns are the patterns formed that are formed by a single candlestick. Single candlestick patterns can be bullish as well as bearish. The location of these patterns on the price chart determines the direction of these patterns.

A bullish example of this candlestick pattern can be a hammer candlestick pattern. And a bearish example of this pattern can be a bearish engulfing candlestick pattern. 

These candlestick patterns can be formed on either side of the chart. They are easy to spot on a naked price chart. 

The pros of these patterns are that they are easy to spot on the price chart and the probability rate of these patterns are high.

The con of double candlesticks patterns is that they can still generate false trading signals.

38. Hammer

A hammer candlestick pattern is a single candlestick pattern which indicates a potential bullish trend reversal. A hammer is formed at the bottom of the price chart when a candle leaves a long weak on its lower side and has a very short or no body.

Hammer shows that despite sellers trying really hard when the candle opened, buyers were still able to take the market up towards the closing of the candle. This shows the strength of the buyers. This also indicates that the buyers are now in control.

This candlestick pattern can be easily found when the market makes a bottom after a downtrend. 

The pros of this pattern are that it provides a clear indication of a potential trend change and it is also easy to identify.

The con of this pattern is that the reliability of this pattern is low compared to other candlestick patterns. 

39. Inverted Hammer

The inverted hammer candlestick pattern is a single candle pattern generally formed after a downtrend. The inverted hammer looks like the upside-down version of the hammer candlestick pattern.

This pattern indicates a potential trend change from bearish to bullish. This pattern shows that despite seller intervention, buyers were still able to hold the level. 

This pattern can be spotted at the bottom of the price chart.

The pros of this pattern are that it provides a strong indication of the potential trend change and it is also easy to identify on the naked chart. 

The con of this pattern is that the reliability of this solo candlestick pattern is low.

How to read candlestick patterns?

The art of reading candlestick patterns effectively improves over time. Traders who are able to understand the psychology behind candlesticks take thousands of hours of chart reading. 

Reading candlestick patterns is a key for successfully analyzing price charts. Following 3 steps will help you in reading candlestick patterns appropriately:

1. Select your timeframe : 

Choosing the timeframe on which you analyze the markets is very important. If you are a beginner, it is recommended that you should start with bigger timeframes such as daily or hourly. Scalpers and day traders try to specialize the understanding of candlesticks in lower time frames like even 1min, 2min, 3min or 5mins. As more and more retail public relies on candlestick patterns, the concept of reverse psychology is mixed with the current candlesticks that appear on chart and a robust trading plan is postulated.

2. Identify and analyze the candlestick pattern : 

You must first learn about all candlestick patterns. After doing so, start with just looking at the price charts. Look at each candle one by one. If you come across a familiar candlestick pattern, mark that pattern and try to understand the core psychology behind the force that created the pattern. To stay one step ahead of other market participants, it becomes crucial to place bets against the crowd; and a smart trader will always try to read the psychology of the crowd that forms the candlesticks.

3. Take other confirmations as well : 

Mixing one technical tool with another is an age-old practice in the trading world. Many traders use additional technical tools to further confirm trading signals received via candlestick patterns. In today’s era of hyper manipulation that occurs in securities, candlesticks often reflect the psychology of the crowd, not always, but most of the time. Thus the area where the formation of the candlestick pattern is very crucial. Strong confluences are gathered alongside the pattern to generate a positive expectancy of a bet or a trade.   Some examples of the indicators that traders use are RSI (Relative strength index) and MACD (Moving average convergence divergence)., VWAP (Volume Weighted Average Price), Moving averages etc.

What is the most powerful Type of Candlestick Pattern?

There is no single most powerful candlestick pattern. Choosing the most powerful candlestick pattern is very subjective. For example, marubozu as such is considered as a very strong indication of the force of bulls or bears. But their occurrence can be manipulative, thus, other confluences or factors are a must to be watched out for, before placing a trade. You must try experimenting with different candlestick patterns and decide which works for you the best on your own. 

What Type of Candlestick Pattern is the best?

There is no single best candlestick pattern. Deciding the best candlestick pattern can get subjective. Veteran traders find engulfing and tweezer patterns to be extra useful when they are spotted with other confluences like the presence of patterns at a strong demand or supply, any relevant signal from other indicators increases the probability of it working. You should try using different types of candlestick patterns and trade with the one which you think is the best.

What Type of Candlestick Pattern is the Most Profitable?

There is no such thing as a single most profitable candlestick pattern. You must experiment with different types of candlestick patterns and trade with the one which you find the most profitable.

Which Type of Candlestick Pattern is the Strongest?

While there are many strong candlestick patterns, choosing any one of them can get subjective. Still, tweezer tops and bottoms are underrated but they show strong evidence of which side of power is more in control.  You should try out trading different candlestick patterns and combine them with additional technical tools to find out the strongest candlestick pattern for your trading style.

Are the Types Candlestick Patterns accurate?

No, Any candlestick pattern or technical tool can never be 100% accurate. However, you can increase the percentage of accuracy of a trading setup by combining it with additional technical tools. You can combine candlestick patterns with technical tools such as volume, RSI (Relative strength index) and MACD (Moving average convergence divergence) and ofcourse core price action formula or strategy. 

Are Candlestick Patterns reliable?

Yes, though they are quite reliable, the over reliability over candlestick patterns diverts main focus from the price of the security. Afterall, it’s the price that should be followed. So, Yes, candlestick patterns are reliable. But over reliability should be avoided. They can be used with other conjectures for proper signals. Retail-trap trading has been generated out of the concept of candlestick being over used by retail traders and investors. 

Arjun Remesh

Head of Content

Arjun is a seasoned stock market content expert with over 7 years of experience in stock market, technical & fundamental analysis. Since 2020, he has been a key contributor to Strike platform. Arjun is an active stock market investor with his in-depth stock market analysis knowledge. Arjun is also an certified stock market researcher from Indiacharts, mentored by Rohit Srivastava.

Shivam Gaba

Reviewer of Content

Shivam is a stock market content expert with CFTe certification. He is been trading from last 8 years in indian stock market. He has a vast knowledge in technical analysis, financial market education, product management, risk assessment, derivatives trading & market Research. He won Zerodha 60-Day Challenge thrice in a row. He is being mentored by Rohit Srivastava, Indiacharts.