Candlestick Patterns Cheat Sheet
Candlestick patterns are one of the oldest and most widely used tools in technical analysis. Originating from Japanese rice traders in the 18th century, these single-candle and multi-candle formations tell a visual story of the battle between buyers and sellers during any given time period.
Each candlestick encodes four price points - open, high, low, and close - into a single visual unit. The body (the thick block) shows the distance between the open and close, while the wicks (thin lines above and below) show the full price range. When candles appear in recognisable sequences, traders use them to anticipate likely next moves.
This cheat sheet covers all 18 essential candlestick patterns, grouped into three categories: Bullish Reversal patterns that signal a potential upward move after a downtrend, Bearish Reversal patterns that warn of a possible downward turn after an uptrend, and Neutral / Continuation patterns that indicate market indecision or trend continuation.
Use this reference alongside your charts to recognise formations at a glance. Download the free PDF to keep it handy during your trading sessions. For active practice, the Pipster Pattern Lab lets you test your pattern recognition skills on real chart formations before committing capital.
Bullish Reversal
Hammer
A Hammer forms at the bottom of a downtrend with a small body near the top and a long lower shadow at least 2x the body height. It indicates that sellers drove prices down during the session but buyers regained control, signaling potential bullish reversal.
Inverted Hammer
An Inverted Hammer appears at the bottom of a downtrend with a long upper shadow and small body near the low. Despite looking like a Shooting Star, its downtrend context makes it a bullish reversal signal — buyers attempted to push higher during the session.
Bullish Engulfing
A Bullish Engulfing pattern forms at the bottom of a downtrend when a large green candle completely engulfs the body of the prior small red candle. The dramatic shift from selling to buying pressure signals strong bullish reversal potential.
Bullish Harami
A Bullish Harami forms in a downtrend when a small green candle fits entirely within the body of the preceding large red candle. The containment suggests selling pressure has diminished and a reversal may follow.
Tweezer Bottoms
Tweezer Bottoms form at the bottom of a downtrend when two consecutive candles reach approximately the same low price. The first is bearish, the second is bullish, indicating strong support at that level and potential reversal.
Morning Star
A Morning Star is a three-candle bullish reversal pattern in a downtrend: a large red candle, followed by a small-bodied candle (doji or spinning top) that gaps down, then a large green candle that closes well into the first candle's body. The middle candle represents the turning point.
Three White Soldiers
Three White Soldiers is a strong bullish reversal pattern featuring three consecutive green candles, each opening within the prior candle's body and closing near its session high. The progressive higher closes show sustained buying pressure.
Bullish Abandoned Baby
A Bullish Abandoned Baby is a rare three-candle reversal pattern in a downtrend. A red candle is followed by a doji that gaps down completely (its high is below the first candle's low), then a green candle that gaps up completely from the doji. The isolated doji between two gaps is extremely rare and signals a powerful reversal.
Dragonfly Doji
A Dragonfly Doji is a specialized doji variant that appears in a downtrend. The open, close, and high are all at or near the same price, with a long lower shadow extending well below. It shows sellers pushed prices down but buyers brought them all the way back, signaling bullish reversal.
Want to practise identifying these patterns?
The Pipster Pattern Lab shows you real chart formations — test whether you can name them correctly before checking the answer.
Open the Pattern LabBearish Reversal
Shooting Star
A Shooting Star forms at the top of an uptrend with a small body near the bottom and a long upper shadow. It shows that buyers pushed prices higher but sellers took control by the close, indicating potential bearish reversal.
Hanging Man
A Hanging Man appears at the top of an uptrend with a long lower shadow and small body near the high. Despite looking identical to a Hammer, its uptrend context makes it a bearish warning — sellers briefly took control during the session.
Bearish Engulfing
A Bearish Engulfing pattern forms at the top of an uptrend when a large red candle completely engulfs the body of the prior small green candle. The shift from buying to selling pressure signals bearish reversal potential.
Bearish Harami
A Bearish Harami forms in an uptrend when a small red candle fits entirely within the body of the preceding large green candle. Buying momentum has stalled and a bearish reversal may follow.
Tweezer Tops
Tweezer Tops form at the peak of an uptrend when two consecutive candles reach approximately the same high price. The first candle is bullish (continuation), the second is bearish (rejection), indicating strong resistance at that level.
Evening Star
An Evening Star is a three-candle bearish reversal pattern in an uptrend: a large green candle, followed by a small-bodied candle that gaps up, then a large red candle that closes well into the first candle's body. It is the bearish mirror of the Morning Star.
Three Black Crows
Three Black Crows is a strong bearish reversal pattern featuring three consecutive red candles, each opening within the prior candle's body and closing near its session low. The progressive lower closes show sustained selling pressure.
Neutral / Continuation
Doji
A Doji forms when opening and closing prices are virtually equal, creating a cross or plus shape. It signals market indecision and can appear in any trend context, often preceding a reversal or consolidation.
Spinning Top
A Spinning Top has a small real body with upper and lower shadows that are significantly longer than the body. Unlike a Doji, the body is visible but small, showing that neither buyers nor sellers gained the upper hand during the session.
Ready to deepen your understanding? Study the Candlestick Patterns lesson in the Pipster Academy for context on how to apply these patterns with proper confirmation.