// CANDLESTICKS — PATTERN REFERENCE
Read the candles.
The patterns worth knowing, each with its bias, what it signals and a quick illustration — filter to just the bullish, bearish or neutral setups.
Doji
neutralOpen and close are nearly equal, leaving a tiny body. Buyers and sellers fought to a draw — often a pause before a turn.
Hammer
bullishA small body near the top with a long lower wick after a downtrend. Sellers pushed lower but buyers reclaimed the close.
Inverted Hammer
bullishSmall body near the low with a long upper wick after a decline. Buyers tested higher — a hint the downtrend is tiring.
Shooting Star
bearishSmall body near the low with a long upper wick after an uptrend. Buyers spiked then failed, handing control to sellers.
Hanging Man
bearishA hammer shape appearing after an uptrend. The long lower wick shows sellers testing lower — a warning the rally may stall.
Bullish Engulfing
bullishA large green candle fully engulfs the prior red body. Demand overwhelmed supply in a single session.
Bearish Engulfing
bearishA large red candle fully engulfs the prior green body. Supply overwhelmed demand and flipped momentum down.
Morning Star
bullishA red candle, a small-bodied pause, then a strong green candle. A three-bar base marking the turn from down to up.
Evening Star
bearishA green candle, a small-bodied pause, then a strong red candle. The mirror of the morning star, topping out a rally.
Three White Soldiers
bullishThree tall green candles closing progressively higher. Sustained buying pressure that often marks a decisive bottom.
Three Black Crows
bearishThree tall red candles closing progressively lower. Relentless selling that often confirms a top.
Spinning Top
neutralA small body centred between long upper and lower wicks. Neither side gained ground — momentum is stalling.
Marubozu
bullishA full body with no wicks — price opened at one extreme and closed at the other. Conviction in the trend direction.
Harami
neutralA small body contained inside the prior large body. The trend's energy is fading — a reversal may be brewing.