30 Important Candlestick Patterns

A Candlestick can be divided into two categories:

 Bullish Candlestick
 Bearish Candlestick
Bullish Candlestick: A candle is said to be
bullish when the body of the candle is green. In
this candle, the bottom of the body represents
the opening price and the top of the candle
represents the closing price.
Bearish Candlestick: A candle is said to be
bearish when the body of the candle is red. In
this candle, the top of the body represents the
opening price and the bottom of the candle
represents the closing price.
Now that we have understood how a candlestick looks, we will now look into
30 important candlestick patterns and understand how they represent the
different sentiments in the market. 

Single Candlestick pattern

#1 – Marubozu Candlestick
that makes a big movement in a single direction with any pushback from the
opposite direction.
Bullish Marubozu Candlestick
 This candlestick pattern represents extreme bullishness in
the market.
 Indicates that the buyers are in control of the stock price
throughout the trading session.

Bearish Marubozu Candlestick

Represents extreme bearishness in the market. Indicates that
the sellers are in control of the stock price.
#2 – Bullish Hammer
Imp Point : After a falling Trend
Indicates trend reversal
Wick twice Body size; Larger the wick better
the reversal
Candle forms at bottom of chart
Can be Green or red
#3 – Bearish Hanging man
looks identical to a bullish hammer.
Candle appears after an uptrend
Indication that the market is likely to make a reversal
downtrend.

#4 – Bullish Inverted Hammer

 Occurs at the bottom of the downtrend.
 Trigger for a potential upside in the market.
 Wick twice the size of the body.
 The larger the wick better the chances for reversal.
 The body of the candle can be either green or red.

#5 – Shooting star 
 appears at the top of the uptrend.
 trigger that markets may likely reverse downwards.
Doji : patterns with wicks and nobody : 04 TYPES
#6 – Neutral Doji:
no conviction of its own. equal buying and selling pressure.
The future price uncertain

#7 – Long-Legged Doji
 Considered most prominent when appear during a
strong uptrend or a downtrend.
 Indicates that supply and demand are approaching
balance
 Trend reversal may take place.

#8 – Dragonfly Doji
 Indicates a bullish reversal
 Mainly appears at the bottom of the downtrend.
 A dragonfly Doji is formed when the open, high,
and close are on the same price level and has a
long lower wick 

#9 – Bearish Gravestone Doji

Indicates a bearish reversal in the market.
Appears at the top of the uptrend.
A dragonfly Doji is formed when the open, low,
and close are on the same price level and has a 
long upper wick 

#10 – Spinning Top

 Indecision between the buyer and the seller
 The body of the spinning top is slightly larger
when compared to a Doji.
 It is known as a continuation pattern
 Spinning top Candlestick can be divided into
bullish and bearish forms.
Double Candle Candlestick Patterns 
#11 – Bullish engulfing
 Red candle is followed by a large green
candle completely engulfs the previous
candlestick stick
 In this pattern, the green candle opens
below the red candle and closes above
the red candle
 Indicating a bullish signal in the market.

#12 – Bearish engulfing 

Green candle is followed by a red candle
that completely engulfs the previous
candlestick stick
In this pattern, the red candle opens above
the green candle and yet closes below the
green candle.
Indicating a bullish signal in the market.

#13 – Bullish Harami

 Formed after a bear trend in the market. 
 There is a large red candle followed by a small
green candle inside the previous red candle.
 This pattern indicates the return of bulls in the
market.

#14 – Bearish Harami

 Formed after a bull trend in the market. 
 When there is a large green candle followed
by a small red candle inside the previous
green candle. Indicates the return of bears in
the market.

#15 – Bullish Harami cross

 Formed after a downtrend in the market. 
  This pattern consists of a long red candle followed by a Doji candle that
is located in the middle of the previous candle.
 Forecasts a bull trend in the market.

#16 – Bearish Harami cross

 Formed after an uptrend in the market. 
 This pattern consists of a long green candle
followed by a Doji candle that is located in
the middle of the previous candle.
 Forecasts a downward trend in the market.

#17 – Bullish Piercing Line

 Indicates a reversal after an extended
downtrend in the market.
 Indicates a resumption of the uptrend in
the market
 consists of a red candle followed by a
green candle which opens gap down
and covers more than 50% of the
previous candle while closing.

#18 – Dark cloud cover

Indicates a reversal after an uptrend in the market
Consists of a green candle followed by a red
candle which opens gap up and covers more than
50% of the previous candle while closing.

#19 – Tweezer Bottom Candlestick

Formed at the end of a downtrend in the market. when the sellers are not able
to push the prices down any further.
This pattern consists of a red candle which is followed by a green candle. The
green candle will have the same low as the red candle indicating support at
that level

#20 – Tweezer Top Candlestick

 Bearish candlestick pattern that is formed
after an uptrend in the market.
 Indicates the buyers not being able to push
the price higher.
 This pattern consists of a green candle
which is followed by a red candle.
 The red candle will have the same high as
the green candle indicating a resistance at
that level.

#21 – Bullish homing pigeon

Indicates the weakening of the current
downtrend and shows the likelihood of a
reversal
The pattern consists of a large red candle
followed by another red candle within the range
of the first candle

#22 – Bearish homing pigeon

indicates the weakening of the uptrend in the market
and indicates the market reversal
The pattern consists of a large green candle
followed by another green candle within the range of
the first candle
Triple Candle Candlestick Patterns
#23 – Three white soldiers
 Indicates bullishness in the market.
 Long-bodied green candles appear that are close higher
than the previous candle for three consecutive sessions.

#24 – Three black crows

Indicates a downtrend in the market.
This candle pattern is formed when long-bodied red
candles appear that are close lower than the previous
candle for three consecutive sessions.

#25 – Bullish Upside Tasuki gap

Indicates a continuation of the bullish trend in the
market
Consists of a large green candle followed by
another green candle that has gapped above the
previous candle.
Third candle that closes between the gaps of the
previous two bars

#26 – Bearish Downside Tasuki gap

 Indicates a continuation of the downtrend
in the market.
 This pattern consists of a large red
candle followed by another red candle
that has gapped down below the previous
candle. And the third candle that closes
between the gaps of the previous two
bars

#27 – Morning star pattern

 Occurs after a downtrend in the market.
  Signals the beginning of an uptrend in prices.
 Consists of a red candle followed by a small-bodied candle that closes
below the previous candle. The third candle will be a large green candle
that opened above the second candle.
 The second candle can either be a green or a red candle.

#28 – Evening star pattern

Formation that after an uptrend in the market.
Signals a downtrend in the market.
This candle pattern consists of a green candle
followed by a small-bodied candle that closes above
the previous candle. The third candle will be a large
red candle that opened below the second candle.
The second candle can either be a green or a red
candle
#29 – Three inside up 
Formed at the bottom of the downtrend.
It is a bullish pattern
Reversal of the downtrend in the market
It is a three-candle pattern consisting of a long
red candle followed by a green candle that covers
the first candle at least till the midpoint. The third
candle should be a green candle that should
close above the first candle indicating the
buyers overpowering the sellers.

#30 – Three inside down

At top of an uptrend.
It is a bearish pattern that indicates the reversal of the
uptrend in the m At the arket.
It is a three-candle pattern consisting of a long green
candle followed by a red candle that covers the first
candle at least till the midpoint. The third candle
should be a red candle that should close below the
first candle indicating the sellers overpowering the buyers.