Let’s be honest — trying to read the market sometimes feels like staring at static. You’re looking for signals, but everything just blends together. That’s where candlestick patterns come in.
These little shapes on a chart have been around for ages (literally centuries) and are still one of the most trusted ways to guess where prices might be headed.
In this guide, I’m walking you through the must-know patterns — bullish, bearish, and neutral — and how to spot them. If you’re trying to make sense of those wild price moves, this candlestick pattern cheat sheet can be a real game-changer.
Bullish Candlestick Patterns
When you see bullish candlestick patterns, it’s basically the market hinting at, “Hey, prices might be going up.” These shapes often pop up when buyers start flexing a little more muscle than sellers.
Bullish Engulfing
This one’s easy to recognize — a small red candle (selling pressure) gets completely “swallowed” by a bigger green one.
It usually shows up near support levels, telling you buyers are stepping in hard and fast. Think of it like the market saying, “Okay, enough of the dip. Let’s turn this around.”
Bullish Harami
Here’s a quieter one. First, there’s a big red candle — the downtrend is doing its thing. But then a much smaller green candle nestles inside the red one’s body.
The Bullish Harami follows the Bullish Engulfing pattern in identifying possible reversals. It’s like the sellers are running out of steam. Traders often take this as a sign that the buyers might be warming up for a move.
Morning Star
This is a classic three-candle setup: big red candle, then a little indecisive one (like the market taking a breath), and finally a solid green candle that climbs at least halfway back up the first candle. If you see this after a rough downtrend, it’s usually a good sign that buyers are ready to take over.
Hammer
Picture a hammer: tiny body at the top, long tail below. That tail tells you sellers pushed the price way down, but buyers yanked it right back before the session closed. When you spot this at the bottom of a trend? It’s often a sign the market’s about to bounce.
Piercing Line
This one shows up as a two-candle “surprise.” First candle? Big and bearish. Second candle? Opens even lower (scary), but then — boom — closes above the midpoint of the first one. It’s like buyers saying, “Not so fast.”
Bullish Kicker
Now here’s one that doesn’t mess around. You get a bearish candle… and then the next one just gaps up and closes way higher. No overlap, no hesitation. It’s rare, but when it shows up, it’s a strong “buyers mean business” moment.
Bearish Candlestick Patterns
Okay, now for the flip side. These are the shapes that hint at sellers taking control or an uptrend running out of gas.
Bearish Engulfing
The opposite of its bullish cousin. A small green candle gets completely devoured by a big red one. When this happens near the top of a rally, it’s often a big “brace yourself” for a drop.
Bearish Harami
Here, you’ll see a strong green candle first… but then a tiny red one tucked inside it. This usually means the buyers are losing momentum, and sellers are slipping back in.
Evening Star
This is the bearish answer to the Morning Star. You’ll notice: a strong green candle, a small indecision candle, and then a big red candle that closes deep into the first one’s body. Often, a warning that the rally’s over.
Hanging Man
The candlestick man is the same shape as a hammer, but at the top of an uptrend. It tells you sellers are pushing back, even if the session closes near the open. Add a confirmation candle (a lower close the next day), and you’ve got a stronger bearish case.
Dark Cloud Cover
Sounds ominous, right? It is. This pattern starts with a strong green candle, then a red one opens above the prior high but closes below its midpoint. Basically, buyers tried, but sellers shut them down.
Three Black Crows
This one’s as bearish as it sounds. Three big red candles in a row, each opening inside the previous one and closing lower. It screams strong selling pressure and usually confirms a downtrend.
Neutral Candlestick Pattern Cheat Sheet
These don’t lean bullish or bearish — instead, they tell you the market’s stuck in a “meh” moment (which usually means a big move could be brewing).
Doji
This little cross-shaped candle happens when prices open and close at nearly the same spot. Buyers and sellers are basically in a stalemate.
Gravestone Doji
All the action is at the top here. Long upper wick, and the open/close is near the low. Sellers clearly won that round after an early push-up.
Dragonfly Doji
Flip the gravestone upside down — long lower wick, open and close at the top. It’s like sellers tried to drive it down but got completely overpowered.
Long-Legged Doji
Lots of back-and-forth in this one. Big wicks on both sides. It’s the market having a bit of an identity crisis.
Marubozu
No wicks at all — just a solid candle. All buying? That’s bullish Marubozu. All selling? Bearish. These usually mean a strong conviction either way.
Complex Or Multi-Candle Patterns
Some patterns need more than one or two candles to make sense.
Rising Three
A big green candle, then three small red ones that stay within its range, followed by another strong green candle. Translation: the bulls are still in charge despite some pullback.
Falling Three
Same thing, but bearish. One big red candle, three little green ones, then another strong red that closes below the first.
Tasuki Gap
This one forms during strong trends when a gap appears between candles, then another candle tries to “close it” but doesn’t quite get there. A sign that the trend is still holding.
Mat Hold
Looks like Rising Three but with a bit more sideways action in the middle. Still a trend continuation pattern.
Tri-Star
Three dojis in a row at the top or bottom of a trend. Rare, but when it shows up, people watch closely.
Long Wicks
Anytime you see really long wicks, it means there was a big battle between buyers and sellers. Usually hints at a potential reversal or at least market hesitation.
How To Identify Candlestick Patterns
It’s not just about memorizing names — you’ve got to read the story they tell.
- Check the size of the candle body. Big body? Strong momentum. Small? Indecision.
- Look at the wicks. Long ones can signal rejection or reversals.
- Pay attention to color (green for upward momentum, red for downward).
- Watch for gaps between candles. They often mean strong moves or sentiment shifts.
- Always consider the overall trend and where these patterns pop up (support, resistance, etc.).
- Volume matters. A pattern with high trading volume packs more punch than one without.
Best Timeframes For Candlestick Pattern Trading
If you’re day trading, 1-minute or 5-minute charts are your playground. You’ll catch fast moves, but you’ll also need lightning reflexes. Swing traders? Daily or even weekly charts are usually better — less noise, more reliable signals.
Combining Candlesticks With Other Technical Indicators
Don’t just trade off one pattern. Pair them with moving averages, RSI, MACD — whatever you use. For instance, a bullish engulfing near a 50-day moving average? That’s way stronger than the pattern alone.
Limitations Of Candlestick Patterns
Here’s the thing — candlesticks aren’t crystal balls. They’re based on past price action, which doesn’t always predict the future. News, low-volume days, or sudden events can completely throw them off. Always wait for confirmation and use other tools.
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Tips For Mastering Candlestick Patterns
- Practice on real charts every day.
- Memorize the big reversal patterns like Morning Star, Hammer, and Shooting Star.
- Watch for indecision candles (like Dojis) — they often hint at upcoming moves.
- Use demo accounts to test strategies without risking cash.
- Pair candlestick setups with momentum indicators and support/resistance levels.
- Don’t jump the gun. Wait for confirmations.
- Keep a journal of failed patterns so you can spot what went wrong.
3 Best Chart Pattern Recognition Tools
Here are some of the best tools that will help you identify candlestick pattern cheat sheets. Here is a comparison of the best three tools.
| Name Of The Tool | Finviz | TradingView | TrendSpider |
| Rating | 4.4 | 4.6 | 4.9 |
| Price per month | $0-39 | $0-59 | $74 |
| # Chart Patterns Recognized | 12 | 10 | 18 |
| # Candle Patterns Recognized | 11 | 40 | 150 |
| Trendline Recognition | Yes | No | Yes |
| Pattern Backtesting | No | Yes | Yes |
Spot Trends & Reversals
Candlestick patterns won’t make you a market wizard overnight, but the candlestick pattern cheat sheets are insanely useful for spotting trends and reversals.
Combine them with other indicators, practice reading them daily, and over time, you’ll start to “see” the market in a whole new way.
