What is a candlestick pattern?

A candlestick pattern is a specific formation of one or more candlesticks on a price chart that signals a potential reversal or continuation of a trend. Each candlestick shows the open, high, low, and close price for a given time period. Patterns are categorized as bullish (upward reversal), bearish (downward reversal), neutral (indecision), or continuation.

What is the most reliable candlestick pattern?

The most reliable candlestick patterns include the Bullish/Bearish Engulfing (5/5 reliability), Morning Star and Evening Star (5/5), Three White Soldiers and Three Black Crows (5/5), and the Morning Doji Star (5/5). Reliability increases significantly when these patterns appear at key support or resistance levels and are confirmed with volume.

What is the difference between a Hammer and a Hanging Man?

The Hammer and Hanging Man have the same shape — a small body near the top of the candle range with a long lower wick at least twice the body length. The key difference is context: a Hammer appears at the bottom of a downtrend and signals a bullish reversal, while a Hanging Man appears at the top of an uptrend and signals a potential bearish reversal. The same pattern means opposite things depending on where it forms.

What is a Doji candlestick?

A Doji is a candlestick where the open and close prices are equal or nearly equal, resulting in a very small or nonexistent body. It signals market indecision. There are several types: Standard Doji (equal upper and lower wicks), Dragonfly Doji (long lower wick, no upper wick — bullish), Gravestone Doji (long upper wick, no lower wick — bearish), Long-Legged Doji (very long wicks on both sides), and Four-Price Doji (no wicks at all).

How do support and resistance levels work?

Support is a price level where buying interest consistently stops a downtrend — price falls to this level and bounces. Resistance is where selling pressure caps rallies — price rises to this level and reverses. These levels form because traders remember and react to prior highs and lows. When a support level breaks, it often becomes resistance (role reversal). The more times a level is tested and holds, the stronger it becomes.

What is the Morning Star pattern?

The Morning Star is a 3-candle bullish reversal pattern: Day 1 is a large bearish candle, Day 2 is a small-bodied 'star' candle that gaps below Day 1 (doji or spinning top), and Day 3 is a bullish candle that closes at least halfway into Day 1's body. It is one of the most reliable reversal signals with a 5/5 reliability rating. The pattern is even stronger when the star is a Doji (Morning Doji Star).

All Candlestick Patterns

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Bullish

Bearish

Neutral

Continuation

1-candle

2-candle

3-candle

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Bearish

Neutral

Continuation

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All 30 patterns

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Support

Resistance

Methods

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All 12 concepts

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Cheat Sheet

All chart patterns at a glance

Pattern	Candles	Category	Signal	Reliability	Key Feature	Best Context

S&R Levels

Support, resistance and methods

Level / Method	Category	Signal	Reliability	Key Feature	Best Context

Candle Anatomy

The building blocks of candlestick charts

BEARISH
Close < Open
Red body

BULLISH
Close > Open
Green body

Body

The thick part between open and close. Green = price rose. Red = price fell. Larger body = stronger conviction from buyers or sellers.

Upper Shadow (Wick)

Line above the body — the session high. Long upper shadow = sellers rejected higher prices. Bearish within any candle.

Lower Shadow (Wick)

Line below the body — the session low. Long lower shadow = buyers rejected lower prices. Bullish within any candle.

Doji

Open ≈ Close. Body is tiny or nonexistent. Signals market indecision. Multiple named variants: Dragonfly, Gravestone, Long-Legged, Four-Price.

Spinning Top

Small body with long wicks on both sides. Shows balance between buyers and sellers. Often signals indecision or potential reversal after a strong trend.

Marubozu

Full body with no wicks. Open = Low (bull) or Open = High (bear). Shows extreme conviction — no retracement at all during the session.