Candlestick patterns cheat sheet

Every pattern below is a combination of these elements. Where a candle appears matters as much as its shape: the same candle is read differently after an advance and after a decline.

• Body – the range between the open and the close. A rising candle closes above its open, a falling candle below it.
• Wicks (shadows) – the thin lines above and below the body. They end at the high and the low of the period.
• Long body – one side controlled the whole period. A candle with no wicks at all is called a marubozu.
• Small body – the open and the close are near each other: neither side won.
• Long wick – price went there and was rejected. A long upper wick shows selling at higher prices, a long lower wick shows buying at lower prices.

Bullish reversal candlestick patterns appear after a decline and suggest that selling is running out.

• Hammer – small body at the top, lower wick at least twice the body. Sellers pushed price down and buyers took it back.
• Inverted hammer – small body at the bottom, long upper wick. A first attempt by buyers; it needs a higher close on the next candle.
• Bullish engulfing – a rising body fully covers the previous falling body. Buyers reversed the whole prior candle.
• Piercing line – a rising candle opens below the previous low and closes above the midpoint of the falling body. A partial engulfing.
• Morning star – a long falling candle, a small body below it, then a long rising candle that closes above the midpoint of the first.
• Dragonfly doji – open and close at the high, long lower wick. Lower prices were rejected in full.
• Bullish harami – a small rising body inside the previous large falling body. The selling has paused.
• Tweezer bottom – two candles with matching lows. The same level was defended twice.
• Three white soldiers – three long rising candles in a row, each closing near its high. Sustained buying.

Bearish reversal candlestick patterns appear after an advance and suggest that buying is running out.

• Shooting star – small body at the bottom, upper wick at least twice the body. Buyers pushed price up and sellers took it back.
• Hanging man – the hammer shape after an advance: small body at the top, long lower wick. It needs a lower close on the next candle.
• Bearish engulfing – a falling body fully covers the previous rising body. Sellers reversed the whole prior candle.
• Dark cloud cover – a falling candle opens above the previous high and closes below the midpoint of the rising body.
• Evening star – a long rising candle, a small body above it, then a long falling candle that closes below the midpoint of the first.
• Gravestone doji – open and close at the low, long upper wick. Higher prices were rejected in full.
• Bearish harami – a small falling body inside the previous large rising body. The buying has paused.
• Tweezer top – two candles with matching highs. The same level was rejected twice.
• Three black crows – three long falling candles in a row, each closing near its low. Sustained selling.

An indecision candle is neutral by itself. After a long advance or decline it is read as a loss of momentum, and the direction comes from the candle that follows.

• Doji – open and close at almost the same price, wicks on both sides. Neither side won the period.
• Long-legged doji – a doji with long wicks in both directions. Price moved far both ways and ended where it started.
• Spinning top – a small body with wicks of similar length above and below. The same idea as a doji, with a visible body.

Candlestick patterns describe one to three candles. Larger formations made of dozens of candles – flags, triangles, head and shoulders – are in the chart patterns cheat sheet.

• Prior trend – a reversal pattern needs a move to reverse. In a sideways range the same shapes mean little.
• Location – patterns at support and resistance get more attention than patterns away from any level.
• Confirmation – the next candle closes in the direction of the pattern.
• Timeframe – a daily or 4-hour candle covers more trading than a one-minute candle and carries more weight.

Keep the page open next to the chart, or save it: the Print command of the browser stores it as a PDF or puts it on paper.

A list is learned faster on real data. On Charts, switch on Replay and step through history one candle at a time: name the candle, then reveal the next ones. Charts covers crypto, stocks, forex and commodities.

• Trading the shape without the context – a hammer in the middle of a range is only a candle with a long wick.
• Acting before the candle closes – a hammer halfway through the period can end as a long falling candle.
• Treating a pattern as a forecast – it shows what happened over one to three periods, not what comes next.
• Trading without a stop – every pattern has a level that proves it wrong: the low of a bullish pattern, the high of a bearish one.