Exploring Types of Candlestick Patterns in Trading :

Candlestick patterns are essential tools used by traders to predict future price movements in financial markets. Each candlestick on a chart represents a specific time period and provides a visual representation of price action within that timeframe. By analyzing these patterns, traders can gain insights into market sentiment and make informed decisions. In this blog, we will explore different types of candlestick patterns that traders rely on.

What is a Candlestick?

Before diving into the different types of candlestick patterns, it's important to understand the structure of a candlestick. A candlestick consists of four key elements:

Open Price: The price at the start of the time period.
Close Price: The price at the end of the time period.
High Price: The highest price during the time period.
Low Price: The lowest price during the time period.

The candlestick has a "body," which is the area between the open and close prices. The "wicks" or "shadows" extend from the body and represent the highest and lowest prices during the period.

There are dozens of candlestick patterns used in technical analysis, ranging from simple single-candle formations to complex multi-candle ones. Traders and analysts typically group them into three main categories:

🕯️ 1. Single Candlestick Patterns

These are made up of one candle and often signal short-term reversals or continuations.

Bullish Single-Candle Patterns

1 Hammer

2 Dragonfly Doji

3 Inverted Hammer

4 Bullish Spinning Top (in downtrend context)

5 Bullish Marubozu

6 Bullish Belt Hold

Bearish Single-Candle Patterns

1 Shooting Star

2 Gravestone Doji

3 Hanging Man

4 Bearish Spinning Top (in uptrend context)

5 Bearish Marubozu

6 Bearish Belt Hold

Neutral Single-Candle Patterns

1 Doji (standard)

2 Long-Legged Doji

3 Four-Price Doji

4 Spinning Top

🕯️🕯️ 2. Double Candlestick Patterns

Formed by two consecutive candles, showing a shift in market sentiment.

Bullish Two-Candle Patterns

1 Bullish Engulfing

2 Piercing Pattern

3 Tweezer Bottom

4 Bullish Harami

5 Bullish Harami Cross

Bearish Two-Candle Patterns

1 Bearish Engulfing

2 Dark Cloud Cover

3 Tweezer Top

4 Bearish Harami

5 Bearish Harami Cross

🕯️🕯️🕯️ 3. Triple (and Multi) Candlestick Patterns

These involve three or more candles and often indicate more reliable trend reversals or continuations.

Bullish Three-Candle Patterns

1 Morning Star

2 Morning Doji Star

3 Three White Soldiers

4 Bullish Abandoned Baby

5 Bullish Tri-Star

6 Bullish Three Inside Up

Bearish Three-Candle Patterns

1 Evening Star

2 Evening Doji Star

3 Three Black Crows

4 Bearish Abandoned Baby

5 Bearish Tri-Star

6 Bearish Three Inside Down

Continuation (Neutral) Patterns

1 Rising Three Methods

2 Falling Three Methods

3 Upside Tasuki Gap

4 Downside Tasuki Gap

5 Mat Hold Pattern

⚙️ Bonus / Less Common or Advanced Patterns

(Some are hybrids or regional variations)

1 Kicking Pattern (Bullish/Bearish)

2 Concealing Baby Swallow

3 Ladder Bottom / Ladder Top

4 Deliberation Pattern

5 Matching Low / Matching High

6 Stick Sandwich

7 Counterattack Lines (Bullish/Bearish)

8 Thrusting Pattern

9 On-Neck / In-Neck / Below-the-Stomach

10 Separating Lines

11 Meeting Lines

12 Side-by-Side White Lines

13 Homing Pigeon

14 Identical Three Crows

15 Unique Three River Bottom

Types of Candlestick Patterns

Candlestick patterns can be categorized into single candlestick patterns, which involve just one candle, and multi-candle patterns, which consist of multiple candles. These patterns are used to identify potential market reversals or continuation signals.

Because there are dozens of patterns, showing all of them with images and examples at once would be very long (and hard to load properly). The best approach is to go category by category, so you get a clear, structured reference with visuals and explanations that build your pattern recognition skills.

Lets start with the Single Candlestick Patterns (Part 1).

🕯️ Single Candlestick Patterns

These form from one candle and can indicate potential reversals or continuations depending on their position in a trend.

Bullish Single-Candle Patterns

1. Hammer (Bullish Reversal)

Description: A small real body near the top of the range with a long lower shadow (at least 2x the body). Appears after a downtrend.

Psychology: Sellers pushed prices lower, but buyers stepped in strongly to push the price back up, signaling a potential reversal.

Visual:

2. Inverted Hammer (Bullish Reversal)

Description: Small real body near the lower end with a long upper shadow. Appears after a downtrend.

Psychology: Buyers tried to push higher but sellers resisted; however, buying pressure is emerging.

Visual:

3. Dragonfly Doji

Structure:
Open, high, and close are near the same level with a long lower shadow.

Meaning:
A potential bullish reversal (especially after a downtrend).

Psychology:
Strong rejection of lower prices — buyers step in aggressively after early selling.

Visual:

4. Bullish Belt Hold

Structure:
A single long bullish candle that opens at or near the low of the day (no lower shadow) and closes near the high.

Meaning:
A bullish reversal when it appears after a downtrend.

Psychology:
Buyers take full control from the open, showing strong conviction to reverse the prior downtrend.

Visual:

5. Spinning Top (Neutral)

Description: Small real body with both upper and lower shadows. Shows indecision between buyers and sellers.

Meaning:
Indecision — can indicate a pause or possible reversal depending on trend context.

Psychology: Momentum is uncertain; Market is balancing between buyers and sellers, may indicate a pause or reversal depending on trend.

Visual:

6. Marubozu (Continuation / Strong Trend)

Description: A full-bodied candle with no wicks.

Ÿ Bullish Marubozu: Open = Low, Close = High Success: 70–75% (Very High)

Ÿ Bearish Marubozu: Open = High, Close = Low

Psychology: Shows strong momentum and confidence in one direction.

Visual:

Bearish Single-Candle Patterns

1. Hanging Man (Bearish Reversal)

Description: Looks like a hammer but appears after an uptrend.

Psychology: Shows selling pressure even though the price closed near the high — can be an early warning. Despite the long lower wick, the buyers failed to maintain the price, and the market may be preparing for a downtrend.

Visual:

2. Shooting Star (Bearish Reversal)

Description: Small body at the bottom of the candle, with a long upper shadow. Appears after an uptrend.

Psychology: Buyers pushed prices high, but sellers regained control and pushed it back down — bearish reversal signal.

Visual:

3. Gravestone Doji

Structure:
Open, close, and low are near the same price with a long upper shadow.

Meaning:
A bearish reversal (especially after an uptrend).

Psychology:
Strong rejection of higher prices — buyers push up but sellers completely counterattack before the close.

Visual:

4. Bearish Spinning Top (in Uptrend Context)

Structure:
Small real body (black/red), upper and lower shadows of similar length.

Meaning:
A potential bearish reversal in an uptrend.

Psychology:
Indecision — buyers and sellers are equally matched; momentum may shift bearish.

Visual:

5. Bearish Belt Hold

Structure:
A single long bearish candle that opens at or near the high (no upper shadow) and closes near the low.

Meaning:
A bearish reversal pattern appearing after an uptrend.

Psychology:
Sellers dominate from the open — strong selling momentum halts prior bullish trend.

Visual:

Neutral Single-Candle Patterns

1. Doji (Neutral / Reversal)

Description: Open and close are almost equal; indicates indecision. The significance depends on context.

Types:

1 Standard Doji

2 Dragonfly Doji (bullish at bottom)

3 Gravestone Doji (bearish at top)

4 Long-Legged Doji (high volatility, indecision)

Visual:

2. Doji (Standard)

Structure:
Open and close are nearly the same; small or no real body.

Meaning:
Indecision; neither buyers nor sellers dominate.

Psychology:
Market uncertainty — possible reversal or continuation depending on context.

3. Long-Legged Doji

Structure:
A Doji with very long upper and lower shadows.

Meaning:
Represents strong indecision and volatility — potential reversal when seen after a trend.

Psychology:
Both sides pushed hard but neither prevailed; market is at a turning point.

Visual:

4. Four-Price Doji

Structure:
Open, high, low, and close are all the same price (a single flat line).

Meaning:
Complete indecision and no volatility.

Psychology:
Perfect balance — no trading conviction from either side; often appears in very quiet markets.

Visual:

Lets move on to Part 2: Double Candlestick Patterns — these consist of two consecutive candles and are some of the most reliable reversal signals in candlestick analysis.

🕯️🕯️ Double Candlestick Patterns

Each pattern reflects a shift in market sentiment between buyers (bulls) and sellers (bears).

Bullish Two-Candle Patterns

1. Bullish Engulfing Pattern

Type: Bullish Reversal Appears in: Downtrend

Description: A small bearish candle is followed by a large bullish candle that completely engulfs the body of the previous one.

Psychology: Buyers overwhelm sellers, reversing the downtrend.

Visual:

Example:

Ÿ Downtrend → Bullish Engulfing → Trend reverses upward.

2. Piercing Pattern

Type: Bullish Reversal Appears in: Downtrend

Description: The first candle (Red) is long and bearish; the second candle (Green) opens lower but closes above the midpoint of the first candle.

Psychology: Strong buying pressure enters the market, suggesting reversal strength.

Visual:

3. Tweezer Bottoms

Type: Bullish Reversal Appears in: Downtrend

Description: Two candles with matching lows — the first bearish, the second bullish.

Psychology: Price fails to make new lows; buyers defend a support level.

Visual:

4. Bullish Harami

Type: Bullish Reversal Appears in: Downtrend

Description: A large bearish candle followed by a smaller bullish candle that fits inside the body of the first.

Psychology: Selling pressure weakens; potential trend reversal forming.

Visual:

Bearish Two-Candle Patterns

1. Bearish Engulfing Pattern

Type: Bearish Reversal Appears in: Uptrend

Description: A small bullish candle is followed by a large bearish candle that engulfs the previous body.

Psychology: Buyers lose control; sellers dominate, signaling a potential top.

Visual:

2. Dark Cloud Cover

Type: Bearish Reversal Appears in: Uptrend

Description: The first (Green) candle is long and bullish; the second candle (Red) opens higher but closes below the midpoint of the first candle.

Psychology: A bearish shift in sentiment — sellers take control after buyers push prices up.

Visual:

3. Bearish Harami

Type: Bearish Reversal Appears in: Uptrend

Description: A large bullish candle followed by a smaller bearish candle contained within the first candle’s body.

Psychology: Momentum is fading; a bearish reversal may be near.

Visual:

4. Tweezer Tops

Type: Bearish Reversal Appears in: Uptrend

Description: Two candles with matching highs — the first bullish, the second bearish.

Psychology: Resistance holds firm; sellers step in after repeated highs.

Visual:

5. Harami Cross (Bullish / Bearish)

Type: Reversal Description: Like a Harami pattern, but the second candle is a Doji, showing even greater indecision.

Psychology: Momentum stalls sharply — a key sign of reversal potential.

Visual:

Lets move on to the Triple Candlestick Patterns (Part 3) — these are some of the most reliable and widely recognized formations in candlestick trading.

They are made up of three candles and typically indicate strong trend reversals or continuations.

🕯️🕯️🕯️ Triple Candlestick Patterns

Bullish Three-Candle Patterns

1. Morning Star

Type: Bullish Reversal Appears in: Downtrend

Description: A three-candle pattern showing the transition from bearish to bullish momentum:

1. Long bearish candle

2. Small candle (can be bullish, bearish, or Doji) showing indecision

3. Strong bullish candle closing well into the first candles body or larger.

Psychology: Bears lose strength, buyers step in — signals the start of a new uptrend.

Visual:

Example Setup: Downtrend → Morning Star → Price reversal upward.

2. Morning Doji Star

Type: Bullish Reversal Appears in: Downtrend

Description: Variation of the Morning Star, but the middle candle is a Doji, indicating greater indecision before reversal.

Visual:

3. Three White Soldiers

Type: Bullish Reversal / Continuation Appears in: Downtrend or consolidation

Description: Three consecutive long bullish candles each opening within the previous body and closing near the highs or higher.

Psychology: Strong, consistent buying pressure — confirms reversal strength.

Visual:

4. Three Inside Up

Type: Bullish Reversal Appears in: Downtrend

Description:

1. Large bearish candle

2. Smaller bullish candle within the first body (Harami-style)

3. Third bullish candle closing above the first candle’s high

Psychology: Shift in momentum confirmed by the third candle.

Visual:

5. Abandoned Baby

Type: Reversal (Bullish or Bearish) Appears in: Either uptrend or downtrend

Description: A Doji candle that “gaps away” from both the previous and following candles, forming a clear isolation (like a gap island).

Bullish Abandoned Baby: After a downtrend — Doji gaps below, then a bullish candle gaps up.

Bearish Abandoned Baby: After an uptrend — Doji gaps above, then a bearish candle gaps down.

Psychology: Extreme exhaustion of prior trend; strong reversal signal.

Visual:

6. Tri-Star Doji

Type: Reversal (Bullish or Bearish)

Description: Three consecutive Doji candles, where the middle one gaps above (bearish) or below (bullish) the others.

Psychology: Extreme indecision — major turning point often follows.

Visual:

Bearish Three-Candle Patterns

1. Evening Star

Type: Bearish Reversal Appears in: Uptrend

Description: The opposite of the Morning Star:

1. Long bullish candle

2. Small candle (indecision/Doji)

3. Strong bearish candle closing deep into the first candles body or lower.

Psychology: Momentum shifts from buyers to sellers — strong signal of a potential top.

Visual:

2. Evening Doji Star

Type: Bearish Reversal Appears in: Uptrend

Description: Opposite of the Morning Doji Star — the middle candle is a Doji after a strong bullish move.

Visual:

3. Three Black Crows

Type: Bearish Reversal / Continuation Appears in: Uptrend or consolidation

Description: Three consecutive long bearish candles with closes near their lows or lower — each opens within the prior candles body.

Psychology: Persistent selling pressure — strong bearish signal.

Visual:

4. Three Inside Down

Type: Bearish Reversal Appears in: Uptrend

Description:

1. Large bullish candle

2. Smaller bearish candle within the first body

3. Third bearish candle closing below the first candle’s low

Psychology: Buyers lose control; sellers confirm the reversal.

Visual:

Continuation (Neutral) Patterns

1. Rising Three Methods

Type: Bullish Continuation Appears in: Uptrend

Description:

1. Long bullish candle 2–4. Series of small bearish (or mixed) candles within the range of the first candle

2. Final long bullish candle closing above the first candle’s high

Psychology: Temporary pause or pullback before continuation upward.

Visual:

2. Falling Three Methods

Type: Bearish Continuation Appears in: Downtrend

Description:

1. Long bearish candle 2–4. Small bullish candles within the first candle’s range

2. Final bearish candle closing below the first candle’s low

Psychology: Short-term consolidation before trend continuation downward.

Visual:

3. Upside Tasuki Gap

Type: Bullish Continuation Appears in: Uptrend

Description:

1. A bullish candle

2. Another bullish candle that gaps up

3. A small bearish candle that closes within the gap

Psychology: Minor pullback to fill the gap before continuation upward.

Visual:

4. Downside Tasuki Gap

Type: Bearish Continuation Appears in: Downtrend

Description:

1. A bearish candle

2. Another bearish candle that gaps down

3. A small bullish candle that closes within the gap

Psychology: Brief pullback during downtrend; sellers maintain control.

Visual:

5. Mat Hold Pattern

Type: Bullish Continuation Appears in: Uptrend

Description:

1. Long bullish candle 2–4. Series of small mixed candles that move slightly downward or sideways

2. Strong bullish candle breaking above the range

Psychology: Short-term consolidation (the “mat”) before trend resumes.

Visual:

Lets explore Part 4: Advanced & Rare Candlestick Patterns, complete with explanations and example visuals.

🕯️🕯️🕯️🕯️ Advanced & Rare Multi-Candlestick Patterns

1. Kicking Pattern

Type: Reversal (Bullish or Bearish) Description: Two Marubozu candles of opposite colors that gap apart.

Ÿ Bullish Kicking: Bearish Marubozu → gap up → Bullish Marubozu

Ÿ Bearish Kicking: Bullish Marubozu → gap down → Bearish Marubozu

Psychology: Sudden and complete sentiment reversal — extremely strong signal.

Visual:

2. Concealing Baby Swallow

Type: Bullish Reversal Appears in: Strong downtrend

Description: Complex four-candle pattern:

1. Two long black (bearish) candles with no upper shadows

2. Third candle gaps down but closes higher (with upper shadow)

3. Fourth candle — large bearish engulfing the third

Psychology: Capitulation of sellers — signals the end of a strong downtrend.

Visual:

3. Ladder Bottom

Type: Bullish Reversal Appears in: Downtrend

Description:

1. Three consecutive long bearish candles

2. Fourth candle — small bearish

3. Fifth candle — strong bullish closing above prior candle’s high

Psychology: Exhaustion of selling pressure and shift to buying strength.

Visual:

4. Ladder Top

Type: Bearish Reversal Appears in: Uptrend

Description:

1. Three strong bullish candles

2. Fourth — small bullish or Doji

3. Fifth — bearish candle closing below previous lows

Psychology: Rising prices meet resistance; buyers lose momentum.

Visual:

5. Deliberation Pattern

Structure:
Three candles:

1. Two strong bullish candles in an uptrend.

2. Third candle opens higher but closes with a small body, showing hesitation.

Meaning:
A warning of potential trend slowdown — could lead to consolidation or reversal.

Psychology:
Buyers start losing confidence; sellers begin to appear, creating uncertainty.

Visual:

6. Matching Low / Matching High

Structure:

· Matching Low: Two bearish candles with identical or nearly identical closing prices at the bottom of a downtrend.

· Matching High: Two bullish candles with nearly identical closing prices at the top of an uptrend.

Meaning:

· Matching Low → Bullish reversal signal.

· Matching High → Bearish reversal signal.

Psychology:
Price finds a level it cannot break (support or resistance), hinting at an upcoming reversal.

Visual:

7. Stick Sandwich

Type: Bullish Reversal Appears in: Downtrend

Description: Bearish candle → bullish candle → bearish candle, where the closing prices of both bearish candles are equal.

Psychology: Strong support found at a consistent price level — bullish signal.

Visual:

8. Counterattack Lines

Type: Reversal (Bullish or Bearish)

Description: Occurs when a long candle of one color is immediately followed by an opposite-colored candle closing at or near the same level as the first candle’s open.

Psychology: Strong intraday counter move — market momentum abruptly changes.

Visual:

9. Thrusting Pattern

Structure:

· Appears during a downtrend.

· First candle: a long bearish (red) candle.

· Second candle: a bullish (green) candle that opens below the first candle’s low and closes within the lower half of the previous body — but does not close above the midpoint.

Meaning:
A bearish continuation pattern.

Psychology:
The second candle shows temporary buying pressure, but since it fails to close above the midpoint, sellers still dominate. Often signals the downtrend will resume soon.

Visual:

10. On-Neck / In-Neck / Below-the-Stomach Patterns:

These three are minor bearish continuation patterns with small variations in the second candle’s close level.

(a) On-Neck Pattern:

· First: Long bearish candle.

· Second: Small bullish candle opens below the prior low and closes near the previous candle’s low (same level or just above it).
➡️ Indicates bearish continuation.

(b) In-Neck Pattern:

· First: Long bearish candle.

· Second: Small bullish candle closes slightly above the prior low, but below the midpoint.
➡️ Mild bearish continuation — small buying reaction but no real reversal.

· First: Long bullish candle.

· Second: Long bearish candle that opens below the midpoint of the previous body.
➡️ A bearish reversal after an uptrend.

Psychology (for all three):
Each shows that sellers are still in control even though buyers attempt a recovery.
The closing levels indicate how strong (or weak) that recovery attempt is.

Visual:

11. Separating Lines

Two candles of opposite color with the same opening price:

· In an uptrend: a bearish candle followed by a bullish candle opening at the same level — bullish continuation.

· In a downtrend: a bullish candle followed by a bearish candle opening at the same level — bearish continuation.

Meaning:
A continuation pattern, confirming the prevailing trend.

Psychology:
The first candle creates temporary confusion, but the second candle reaffirms trend direction — buyers or sellers reassert dominance quickly.

Visual:

12. Meeting Lines

Structure:

· Two candles of opposite color.

· The second candle’s close is approximately equal to the first candle’s close.

· Occurs after a trend (up or down).

Meaning:
A potential reversal pattern (depending on trend direction).

Psychology:

Shows a “meeting point” between bulls and bears at the close — momentum balance and possible trend change.

Visual:

13. Side-by-Side White Lines (Bullish & Bearish Variants)

Explanation:
This is a continuation pattern usually appearing after a strong trend (up or down).
It consists of three candles:

· The first is a large trend candle (white for bullish, black/red for bearish).

· The next two are smaller candles of the same color, closing at nearly the same price level — showing temporary consolidation without reversal.

Psychology:
Traders are pausing but not reversing — buyers (or sellers) retain control, consolidation shows stability — after a short rest, the trend typically resumes. When the pattern appears in an uptrend, it signals bullish continuation; in a downtrend, bearish continuation.

Type:

· Bullish in an uptrend (white candles)

· Bearish in a downtrend (black/red candles)

Visual:

14. Homing Pigeon

Structure:
Two candles:

· The first is a long bearish (red) candle.

· The second is a smaller bearish candle completely contained within the body of the first.

Meaning:
A bullish reversal pattern that appears in a downtrend.

Psychology:
Selling momentum is weakening; buyers are beginning to absorb selling pressure — possible trend reversal upward.

Visual:

15. Unique Three River Bottom

Structure:
Three candles:

1. Long bearish candle.

2. Hammer-like candle (small body, long lower shadow).

3. Small bullish candle that closes above the second candle’s close.

Meaning:
A bullish reversal pattern in a downtrend.

Psychology:
Sellers push the market down, but buyers reject lower prices (hammer), then confirm control on the third candle.

Visual:

✅ Summary of What You’ve Learned So Far:

1. Single-Candle Patterns → Reversal / Indecision (e.g., Hammer, Doji)

2. Double-Candle Patterns → Strong Reversal setups (e.g., Engulfing, Harami)

3. Triple-Candle Patterns → Reliable Reversals & Continuations (e.g., Morning Star, Three Soldiers)

4. Advanced Multi-Candle Patterns → Rare but Powerful (e.g., Tasuki Gaps, Mat Hold, Abandoned Baby)

Final Thoughts

Candlestick patterns provide valuable insights into market sentiment and help traders make informed decisions. By understanding and recognizing these patterns, traders can anticipate potential market reversals or continuations. However, it’s important to remember that no pattern is foolproof. Candlestick patterns should always be used in conjunction with other technical indicators and risk management strategies to enhance their accuracy and effectiveness.

Whether you’re a beginner or an experienced trader, mastering candlestick patterns is an essential skill for successful trading. Happy trading!