Candlestick Patterns

Candlestick patterns provide insight into market sentiment and potential reversals.

Reversal Patterns

Bullish Reversal



• Small body at top
• Long lower wick
• Appears after downtrend

• Green candle completely engulfs previous red
• Strong buying pressure

• Three candle pattern
• Red, small-bodied, green
• Strong reversal signal

Bearish Reversal

• Small body at bottom
• Long upper wick
• Appears after uptrend

• Red candle engulfs previous green
• Strong selling pressure

• Green, small-bodied, red
• Strong reversal signal

Continuation Patterns



• Open and close nearly equal
• Indicates indecision
• Needs context for direction

• Candle within previous candle's range
• Consolidation before breakout

Trading Tips

1. Patterns are more reliable at key levels
2. Higher timeframe patterns are stronger
3. Always wait for confirmation
4. Use with support/resistance
5. Don't trade patterns in isolation