Candlestick Patterns¶

Candlestick patterns are visual representations of price movements that can signal potential future market behavior. They are formed by one or more candlesticks and are used by traders to identify trading opportunities.

Single Candle Patterns¶

Pattern	Type	Description
Hammer	Bullish	Small body at top, long lower shadow. Reversal at bottom of downtrend.
Inverted Hammer	Bullish	Small body at bottom, long upper shadow. Reversal at bottom of downtrend.
Hanging Man	Bearish	Small body at top, long lower shadow. Reversal at top of uptrend.
Shooting Star	Bearish	Small body at bottom, long upper shadow. Reversal at top of uptrend.
Doji	Indecision	Open approx. equal to Close. Market neutrality.
Spinning Top	Indecision	Small body centered between long shadows. Consolidation.
Marubozu	Continuation	Long body with no shadows. Strong directional conviction.

Dual Candle Patterns¶

Pattern	Type	Description
Bullish Engulfing	Bullish	Large green candle engulfs previous small red candle.
Bearish Engulfing	Bearish	Large red candle engulfs previous small green candle.
Piercing Line	Bullish	Green candle closes > 50% into previous red candle.
Dark Cloud Cover	Bearish	Red candle closes > 50% into previous green candle.
Bullish Harami	Bullish	Small green candle inside previous large red candle.
Bearish Harami	Bearish	Small red candle inside previous large green candle.
Tweezer Bottoms	Bullish	Matching lows. Support indication.
Tweezer Tops	Bearish	Matching highs. Resistance indication.

Triple Candle Patterns¶

Pattern	Type	Description
Morning Star	Bullish	Red, Gap Down Star, Gap Up Green. Top reversal.
Evening Star	Bearish	Green, Gap Up Star, Gap Down Red. Bottom reversal.
Three White Soldiers	Bullish	Three consecutive long green candles.
Three Black Crows	Bearish	Three consecutive long red candles.
Three Inside Up	Bullish	Bullish Harami + Confirmation.
Three Inside Down	Bearish	Bearish Harami + Confirmation.
Three Outside Up	Bullish	Bullish Engulfing + Confirmation.
Three Outside Down	Bearish	Bearish Engulfing + Confirmation.

Complex & Continuation Patterns¶

Pattern	Type	Description
Rising Three Methods	Continuation	Long Green, 3 Small Red, Long Green. Bullish pause.
Falling Three Methods	Continuation	Long Red, 3 Small Green, Long Red. Bearish pause.