1.

Hammer

The hammer is a single-candlestick bullish reversal pattern that is seen after a

bearish price swing. A similarly shaped candlestick after a bullish swing is not a
hammer, but a hanging man pattern (which is covered later under “Bearish Reversal
Candlestick Patterns”)
It has a small body which can be of any color. In other words, the security may close
higher or lower than it opened.
This is how you can identify a hammer:
●​ It has a tiny or no upper wick
●​ The lower wick is about twice or thrice the size of the body
●​ Its close price is at the upper one-fourth of its range
This is what the hammer signifies:
1.​ Sellers were initially in control, pushing the price lower
2.​ Buyers later overcome the sellers and push the price up towards or above the
opening price
Related reading:

2. Inverted Hammer

This candlestick pattern is very similar to the hammer candlestick, but just like the
name suggests, it’s inverted.
Here is how to identify the inverted hammer:
●​ The candle has a small body (any color) and a small or nonexistent wick
●​ It has a long upper wick that is twice or thrice the size of the body
The pattern implies that:
1.​ The market was in a downtrend
2.​ A sudden burst of buying pressure pushed the price up. However, soon the
bears were back and pushed the price back.
Even if the candle did not close in the upper region of the range, the long wick is a
sign that the market sentiment may be about to change soon.
Related reading:
●​ Inverted Hammer Candlestick Pattern

3. Bullish Engulfing Pattern

The bullish engulfing pattern is a 2-candlestick bullish reversal pattern that appears
after a price swing low.
Here’s how you can identify a bullish engulfing:
●​ The first candlestick is a bearish one
●​ The second candlestick is bullish, and its body completely engulfs the body of
the first
Just like the hammer, the bullish engulfing pattern tells an interesting story
about the market:
1.​ Sellers initially pushed the price down, and the first candle closed lower than it
opened
2.​ Later on, there’s a strong buying pressure, and the second candle closed with
a convincing stretch to the upside
The fact that the second candle succeeded to break the open of the first, bearish
candle, is a sign of market strength. This is especially true considering that the move
of the bullish candle was substantially larger than the preceding bearish candle.
In fact, on the next higher time frame, the bullish engulfing pattern would take the
shape of a hammer. For example, a bullish engulfing pattern on the 30-minute
timeframe would be a hammer (with a bullish color) on the 1-hour timeframe.
Related reading:
●​ Engulfing Trading Strategy
●​ Bullish Engulfing Candlestick Pattern

4. Piercing Pattern

This is another 2-candlestick bullish reversal pattern which shows up after a decline
in price. It is similar to the bullish engulfing pattern, but the second candle doesn’t
completely cover the first.
This is how to identify a piercing pattern:
●​ A bearish first candle
●​ A bullish second candle that opened below the first candle’s low but closed
above its midpoint
This pattern implies that:
1.​ Sellers were initially in control, pushing the first candle to close lower
2.​ Although the second candle opened with a gap down, buyers quickly took
control and pushed it up to close beyond the midpoint of the first candle
As with the bullish engulfing pattern, the fact that the price managed to rise after a
substantial gap down, after a bearish trend, is a sign of market strength. However,
the fact that this pattern doesn’t manage to close above the open of the previous
candle, but only over its midpoint, might suggest that the piercing line is a less
powerful signal than the bullish engulfing.
On the immediate higher timeframe, the piercing pattern would assume the shape of
a hammer (with a bearish color).

5. Tweezer Bottom
The tweezer bottom pattern is another 2-candlestick pattern which occurs after a
bearish price swing, and consists of two or more candlesticks that all have the same
low point.
And here’s how you can identify it:
●​ The first candle is bearish or bullish and has a wick to the downside.
●​ The second candle also shows price rejection at that level, meaning that the
wick extends to the low point of the previous candle, but never exceeds it
●​ As long as the low point isn’t breached, following candles become part of the
pattern.
The implication is that:
1.​ Sellers pushed the price down but were met with a strong buying pressure
2.​ They made another attempt and pushed the price to the previous low, but
buyers defended that level and pushed the price up
So, a tweezer bottom shows that a certain low price level has been successfully
defended by buyers. In fact, in a much lower timeframe, you would see a double
bottom price structure. For example, a tweezer bottom on the daily timeframe would
be a double bottom on the 1-hour or 30-minutes timeframe.

6. Bullish Harami

A harami pattern is a 2-candlestick pattern that can form in any trend. The bullish
harami, however, is a harami pattern that forms after a price swing low. Sometimes,
the price may continue going lower, so some traders choose to view it as a
continuation pattern.
This is how to identify a bullish harami:
●​ The first candlestick is bearish and has a large body
●​ The second candlestick is bullish, has a small body and is contained within
the range of the previous candle
This is what happens in the market:
1.​ Sellers dominate and push the price down.
2.​ The next day/period, the buyers regain control, and push the price up again,
starting with a gap to the upside.
The opening gap is a powerful sign that the trend might be about to change, and
once followed by a bullish candle, that becomes a sort of confirmation.
Related reading:
●​ Bullish Harami Candlestick Pattern

7. Bullish Hikkake

The bullish hikkake pattern is a multiple-candlestick pattern that may indicate a

potential bullish reversal when occurring after a bearish price swing. It forms when
there’s a false downward breakout of an inside bar.
An inside bar simply is when the range of the current bar trades within the range of
the preceding bar.
Here’s how to identify a bullish Hikkake:
●​ Wait for an inside bar to occur.
●​ See if the price breaks below the low of the inside candle.
●​ If the price goes above the high of the inside candle, you have a bullish
Hikkake
Here is what might have happened:
1.​ An inside bar pattern occurred, signaling uncertainty in the market
2.​ The next candle breaks through the low of the inside candle, signalling that
the trend might not be ready to change direction
3.​ Then, buyers manage to take control again, and push the price upwards.
4.​ Once the price goes over the high of the inside bar, the market has proven
that there is enough buying pressure to make the price go even higher
The Bullish Hakkake relies on a sort of breakout logic, where the breakout level
becomes the high of the inside bar.

8. Morning Star

The morning star pattern is a 3-candlestick bullish reversal pattern which forms at
the end of a bearish price swing.
This is how you can identify a morning star:
●​ The first candle is a big bearish candle
●​ The second candle, which is a small candle, opens with a small gap from the
first candle, but the upper wick usually covers the gap
●​ The third candle is a big bullish candle
And this is what the morning star implies:
1.​ At first, the sellers were in control, pushing the price lower
2.​ Then, the sellers started having doubts, and buyers were still not sure what to
do
3.​ Later on, the buyers took control and pushed the price up
If the body of the second candle is nonexistent, or extremely small, the pattern is
instead called a ” Morning Doji star”. Below is an example of a Morning Doji Star:
A doji is a candle where the open and close occurred at the same level, thus making
the body look like nothing more than a narrow line!

We are going to cover Dojis more in-depth later in the article!

Related reading:
●​ Morning Star Candlestick Pattern
9. Bullish Abandoned Baby

Another 3-candlestick bullish reversal pattern, the bullish abandoned baby

resembles the morning doji star pattern.
And this is how to identify a bullish abandoned baby pattern:
●​ A large, bearish first candle
●​ A doji that gaps down from the first candle
●​ A big bullish candle that gaps up above the high of the doji
The bullish abandoned baby implies:
1.​ An initial selling pressure
2.​ A high level of indecision later
3.​ An overwhelming buying pressure much later

10. Shooting Star

This is a single candlestick bearish reversal pattern that occurs at the end of a bullish
price swing. It can take any color, but the large wick on the upside and small body is
a sign that the market is hesitating to move up.
This is how you can identify a shooting star:
●​ It has a small wick to the downside, if any at all
●​ The body is small, and it closes within the lower one-fourth of the range
●​ The upper wick is about twice or thrice the size of the body
Here’s what a shooting star implies:
 1.​ Buyers initially pushed the price up
2.​ Sellers overcame the buyers and pushed the price down close to or below the
opening price
Even if the definition of the shooting star makes clear that it doesn’t matter if the
candle closes higher or lower than the open, a shooting star that closes lower than
the open is generally considered more bearish.
A Shooting star that occurs after a bearish trend, is called an inverted hammer, and
is a bullish candlestick.
Related reading:
●​ Shooting Star Candle Strategy

11. Bearish Engulfing Pattern

This is a 2-candlestick bearish reversal pattern which appears after a bullish price
swing.
Here’s how you can identify a bearish engulfing pattern:
●​ The first candle is a bullish candle
●​ The second candle, which is bearish, completely consumes the body of the
first
This is what the bearish engulfing pattern implies:
1.​ Buyers initially pushed the price up, making the first candle to close higher
2.​ A strong buying pressure later set in, and the second candle closed bearishly
The fact the bearish candle manages to engulf the preceding bullish candle, is a
strong sign that the sellers are in power for the moment.
On the immediate higher time frame, the bearish engulfing pattern would assume the
shape of a shooting star. For example, a bearish engulfing pattern on the 30-minute
timeframe would be a shooting star (with a bearish body color) on the 1-hour
timeframe.
Related reading:
●​ The Bearish Engulfing Candlestick Pattern
12. Dark Cloud Cover

The dark cloud cover is another 2-candlestick bearish reversal pattern which occurs
after a price swing high. It is similar to the bearish engulfing pattern, but the second
candle doesn’t completely cover the first.
This is how to identify á dark cloud cover:
●​ The first candlestick is bullish
●​ A bearish second candle opened above the first candle’s high, but closed
below its midpoint
And here’s what the dark cloud cover means:
1.​ Buyers were initially in control, pushing the first candle to close higher
2.​ A strong buying pressure made the second candle to open with a gap up, but
sellers quickly took control and pushed it down to close below the midpoint of
the first candle
On the immediate higher timeframe, the piercing pattern would take the shape of a
shooting star with bullish body color.
Related reading:
●​ Dark Cloud Cover Candlestick Pattern

13. Tweezer Top

This is yet another 2-candlestick bearish reversal pattern which occurs after a bullish
price swing.
And here’s how you can identify a tweezer top:
●​ The first candlestick has a visible upper wick signifying price rejection at high
●​ The second candle also has an upper wick that touches but never exceeds
the level of the high of the previous bar
The tweezer top is an indication that:
1.​ Buyers pushed the price up but were met with a strong selling pressure
2.​ They made another attempt and pushed the price to the previous high, but
again, sellers defended that level and pushed the price down
A tweezer top shows that the high has been successfully defended by bears. In a
much lower timeframe, you would see a double top price structure. For instance, a
tweezer top on the daily timeframe would be a double top on the 1-hour or
30-minutes timeframe.
The more times a level has been defended, the stronger it generally gets.

14. Bearish Harami

The bearish harami pattern is a harami pattern that occurs at the end of a bullish
price swing. Some traders regard it as a continuation pattern if the price breaks out
higher.
Here’s how to identify a bearish harami:
●​ The first candle is bullish and has a large body
●​ The second candle has a small body and range and is bearish
●​ The second candle’s range lies within that of the first candle
A bearish harami is an indication that:
1.​ The current bullish trend continues in the first bullish candlestick
2.​ Since the market then gaps down, it’s an indication that the market
participants don’t hold as much faith in the uptrend, an let the market open
lower. The following down-candle adds to the loss of sentiment.
Related reading:
●​ The Bearish Harami Candlestick Pattern

15. Bearish Hikkake

This is a multiple-candlestick pattern that may indicate a potential bearish reversal if
it occurs after a bullish price swing. It forms when there’s a false breakout of an
inside bar pattern.
This is how to identify a bearish Hikkake:
●​ An inside bar after a bullish price swing
●​ Price breaks above the high of the small inside candle
●​ The breakout fails, and the price falls and closes below the small inside
candle’s low — the number of candles that complete the hikkake pattern after
the harami pattern can vary from one to three
A bearish Hikkake implies that:
1.​ The inside bar indicates that the market is becoming hesitant
2.​ Once the following candle closes above the high of the inside bar, there is a
breakout.
3.​ However, in the following candle, it becomes apparent that the breakout was
false, and the price continues down.

16. Evening Star

The evening star pattern is a 3-candlestick bearish reversal pattern which occurs
after a bullish price swing.
This is how you recognize an evening star:
●​ The first candle is a big bullish candle
●​ The second candle is a small candle that opens with a little positive gap from
the first candle, but its lower wick would normally cover the gap
●​ The third candle is a big bearish candle
And the pattern may mean that:
1.​ At first, the buyers were in control and pushed the price higher
2.​ Later on, there was indecision which gave rise to the small second candle
3.​ Eventually, sellers took control and pushed the price down
If the second candle is a doji candle, the pattern is called an “evening doji star”.
Below is an example of an evening doji star:

Related reading:
●​ Evening Star Candlestick Pattern

17. Bearish Abandoned Baby

The bearish abandoned baby is another 3-candlestick bearish reversal pattern. It

resembles the evening doji star pattern.
And here’s how you can recognize a bearish abandoned baby:
●​ A large, bullish first candlestick
 ●​ A doji that is completely separated from the first candle by a gap to the upside
●​ A big bearish third candle that gaps below the low of the doji
A bearish abandoned baby implies that:
1.​ There’s an initial buying pressure
2.​ In the second candle, it is followed by a high level of indecision
3.​ Later on, there’s a very strong selling pressure
Related reading:
●​ Bearish Abandoned Baby Candlestick Pattern

18. Deliberation Pattern

The deliberation pattern, also called the stalled pattern, is a 3-candlestick pattern
that is traditionally seen as a bearish reversal pattern, but according to some, the
pattern tends to be followed by a rising market more often than not.
This is how you can identify a bullish deliberation pattern:
●​ Three consecutive bullish candles in an uptrend
●​ The first and second candles have tall bodies, but the third has a small body
●​ Each candle’s open and close prices are higher than the preceding one
And the deliberation pattern implies that:
1.​ Buyers were initially enthusiastic but later started having doubts
2.​ Sellers are scared to enter the market since they do not provide enough
selling pressure to make the last candlestick close lower, so buyers will
resume their party soon
As said, this pattern is traditionally considered a bearish reversal pattern. Do your
own testing and see what works best!

19. Rising Three Methods

The rising three methods is a 5-candlestick pattern seen in an uptrend. It looks like a
flag or pennant.
This is how you identify a rising three methods candlestick pattern:
●​ The first candle is a long bullish candle
●​ The second, third, and fourth candles are small candles that trend lower but
never closed below the low of the first candle
●​ The second and fourth candles are bearish, but the third can be of any color
●​ The fifth candle is a tall white candle that closes above the first candle’s close
And this is what a rising three methods implies:
1.​ The bulls were taking some rest
2.​ The bears used the opportunity to push back but didn’t have enough strength
to push it past the low of the first candle
3.​ Realizing that the bears didn’t have what it takes, the bulls took back control

20. Bullish Separating Lines

The bullish separating lines is a 2-candlestick pattern that forms in an uptrend.

This is how you identify a bullish separating line :
●​ There must be a tall bearish candle in an uptrend followed by a tall bullish
candle
●​ The bullish candle must have the same open price as the preceding bearish
candle
Here’s what a bullish separating line signifies:
1.​ The bears had the strength to push the price down
2.​ The bulls came back with anger, and price gaped up at the previous candle’s
open
21. Mat Hold Pattern

The mat hold is a 5-candlestick pattern that occurs in an uptrend. It is a variation of

the rising three methods, and also resembles a flag or pennant.
Here’s how to recognize a mat hold pattern:
●​ The first candle is a tall bullish candle
●​ The second candle is a small bearish candle that gaps up
●​ The third candle is of similar size to the second and can be bullish or bearish
but must close the gap
●​ The fourth candle is a small bearish candle that closes into the body of the
first candle
●​ The fifth candle is a tall bullish candle that closes above the rest of the
candles
The mat hold pattern signifies:
1.​ After surging so high, the bulls took a break
2.​ The bears couldn’t push the price down
3.​ Bulls seized control again
Related reading:
●​ Bearish Mat Hold Candlestick Pattern

22. Upside Tasuki Gap

An upside Tasuki gap is a 3-candlestick pattern that forms in an uptrend.

This is how you can recognize an upside Tasuki gap:
●​ A gap occurs between two bullish candles
●​ The third candle is a bearish candle that opens below the second candle’s
close and closes below its open
●​ The third candle doesn’t completely fill the gap
And here’s what an upside Tasuki gap means:
1.​ The buying pressure lead to a bullish gap
2.​ There’s profit-taking but the bulls were in control and the selling pressure was
not too strong, since the gap never got filled.

23. Bullish Trend Doji Star

A doji star is a 2-candlestick continuation pattern that can occur in an uptrend. It is

an evening doji star that lacks the vital third, bearish candle.
Here’s how to identify Bullish trend Doji star:
●​ The first candle is a tall white candle
●​ The second candle is a doji that opened with a gap from the first candle
●​ The next candle doesn’t confirm an evening doji star pattern
This is what the bullish trend Doji star means:
1.​ The bulls continue to push the price higher
2.​ The market hesitates, but the bears do not win the battle.
Related reading:
●​ Bullish TriStar Doji Candlestick Pattern

24. Bullish Side by Side White Lines

This is a 3-candlestick continuation pattern that forms in an uptrend.
You can identify a Bullish Side by Side White Lines this way:
●​ The first candle is a tall white candle
●​ The second candle is a smaller white candle that opens with a gap from the
first candle
●​ The third candle is similar to the second and opens and closes near the open
and close levels of the second candle,
And here’s what the pattern means:
1.​ Bulls were aggressive, causing the price to gap up
2.​ Profit-taking set in, causing the second candle to gap down, but the bulls
maintained the buying pressure
Related reading:
●​ Bullish Side By Side Candlestick Pattern

25. Upside Gap Two Crows

The upside gap two crows is a 3-candlestick pattern that is classically seen as a
bearish reversal pattern, but some traders instead use it as a continuation pattern.
You will have to do the testing yourself to know where it works best!
You can identify the Upside Gap Two Crows this way:
●​ The first candle is white/green and tall
●​ The second candle gaps above the first candle but closes bearish
●​ The third candle is also bearish and engulfs the second candle, after gapping
up above the second candle’s open, but its close remains above the first
candle’s close
Here’s what Upside Gap Two Crows means:
1.​ First, bulls are in control and push the price higher.
2.​ The second candle gaps up and shows that the bulls still are in control.
However, the bears continue to drag the price down, which makes the candle
close lower than it opened.
3.​ The bulls once again drag the price up, and the third candle gaps up again,
but the bears once again drag the price down.
As you can see, the bulls and bears are equally strong and take turns to drag the
price in their direction. This balance is a sign that the price might wander the path of
least resistance, which is to the upside.

26. Advance Block

The advance block pattern is a 3-candle pattern that is classically taken as a bearish
reversal pattern, but again, many traders use this pattern as a bulllish continuation
pattern.
Here’s how you can identify an advance block:
●​ Three consecutive bullish candles in an uptrend
●​ The body of each of the last two candles gets smaller than the preceding
candle while the upper shadow gets taller
●​ Each candle’s open price is within the body of the preceding candle
And the advance block implies that:
1.​ Buyers were initially in control but later started having doubts
2.​ Selling pressure is not strong enough, so buyers will resume their party soon
Related reading:
●​ The Advance Block Candlestick Pattern

27. Hanging Man

This is a single candlestick pattern that is generally taken as a bearish reversal
pattern, but many traders choose to regard it as a continuation pattern.
This is how to identify a hanging man:
●​ Price is trending up
●​ The candle has a small body (any color), little or no upper wick, and a long
lower wick that is twice or thrice the size of the body
A hanging man implies that:
1.​ Bears tried to push the price down
2.​ Bulls later regained the upper hand
Related reading:
●​ Hanging Man Candlestick Pattern

28. Matching High

The matching high is a 2-candlestick pattern that is theoretically seen as a bearish

reversal pattern, but many times the price continues in the direction of the trend.
This is how you identify a matching high:
●​ The first candle is a bullish candlestick that closes around its high
●​ The second candle gaps down and is smaller, but it closes at a similar level to
the first candle
Here’s what the matching high pattern means:
1.​ The bulls are in control of the price and make it rise
2.​ The bears push the price down, and the second candle opens with a gap
3.​ The bulls are not giving up and the second candle closes at the same level as
the preceding candle.
Related reading:
●​ Matching High Candlestick Pattern

29. Bullish trend Harami

We have discussed this candlestick pattern under the bearish reversal patterns, but
we mentioned that it could also be a continuation pattern if the price breaks above
the high of the second candle.
Here’s how to identify a bullish trend harami:
●​ The first candle is big and bullish
●​ The second bearish candle is small, and its range lies within that of the first
candle
The bullish trend harami might mean that:
1.​ There’s a strong buying pressure as shown by the big bullish first candle.
2.​ Profit-taking and indecision later set in. However, since the low of the first
candle is not breached, the bulls might be strong enough to return!
Related reading:
●​ Bullish Harami Candlestick Pattern

30. Concealing Baby Swallow

This is a 4-candlestick pattern that forms in a downtrend. Although it is theoretically
seen as a bullish reversal pattern, a lot of traders actually consider this one a bearish
continuation pattern.
This is how you identify a Concealing Baby Swallow:
●​ The first two candles are tall and bearish
●​ The third candle, which opens with a gap, is also bearish and has a long
upper wick
●​ The fourth candle is bearish too and completely engulfs the third candle
And here’s what a Concealing Baby Swallow implies:
1.​ Bears are completely in control
2.​ Any bullish attempt is met with massive selling pressure

31.Falling Three Methods

The falling three methods is a 5-candlestick pattern that occurs in a downtrend.

Here’s how to identify the falling three methods candle:
●​ The first candle is a long bearish candle
 ●​ The second, third, and fourth candles are small candles that trend higher
without closing above the high of the first candle
●​ The second and fourth candles are white, but the third can be of any color
●​ The fifth candle is a tall black candle that closes below the fifth candle’s close
And this is what the falling three methods implies:
1.​ The bears pushed the price down, but then took a break
2.​ And the bulls used the opportunity to push back, but the buying pressure was
weak
3.​ The bears took back control when it’s clear the bulls didn’t stand a chance

32. Bearish Separating Lines

The bearish separating line is a 2-candlestick pattern that occurs in a downtrend.

Here’s how to identify bearish separating lines:
●​ A tall white candlestick in a downtrend followed by a tall black candlestick
●​ The black candlestick has the same open price as the preceding bullish
candlestick
This is what bearish separating lines means:
1.​ Buyers showed a sudden strength to push the price up
2.​ But sellers came back with anger, and the price gaped down to the previous
candle’s open

33. Bearish Side by Side White Lines

This 3-candlestick continuation pattern occurs in a downtrend.
Here’s how you can identify bearish side by side white lines:
●​ The first candlestick is tall and bearish
●​ The second candlestick is a smaller bullish candle that opens with a down gap
from the first candlestick
●​ The third candle is similar to the second and opens close to the second
candle’s open
This is what the bearish side by side white lines means:
1.​ Sellers were very aggressive, as indicated by the tall bearish first candle and
the gap
2.​ Bulls fought back but despite their best effort, they couldn’t overcome the
bears

34. Bearish Trend Doji Star

The doji star pattern is a 2-candlestick continuation pattern that can form in a
downtrend. It is a morning doji star that lacks the vital third, bullish confirmatory
candle.
This is how to identify bearish trend doji star:
●​ The first candlestick is a tall bearish one
●​ The second candle is a doji that opens with a down gap from the first candle
●​ The subsequent candlestick does not confirm a morning doji star pattern( it is
not bullish)
And here’s what the bearish trend pattern means:
1.​ The selling pressure, seen in the bearish first candle, pushed the price down
2.​ Bears were taking a break, but bulls couldn’t push back
If the pattern is not followed by a bullish candle, the bulls probably failed to push the
price up again, and the downtrend is likely to continue.
Related reading:
●​ Neutral Doji Candlestick Pattern
●​ Doji Trading Strategies
●​ Long Legged Doji Candlestick Pattern

35. Stick Sandwich

This 3-candlestick pattern is typically seen as a bullish reversal pattern, but many
traders instead see this as a bearish continuation pattern.
Here’s how to identify a stick sandwich:
●​ The first candle is bearish and gaps down
●​ The second candle opens well above the first candle’s close and closes
bullishly
●​ The third candle is bearish, gaps down below the open of the previous candle,
and closes near the first candle’s close
A stick sandwich pattern implies that:
1.​ Bears were in full control
2.​ The small bullish attempt was decimated
Related reading:
●​ Bullish Stick Sandwich Candlestick Pattern

36. Downside Tasuki Gap

A downside Tasuki gap is a 3-candlestick pattern that occurs when the price is
trending down.
And this is how you may identify a Tasuki gap:
●​ The first candlestick is a black candle
●​ The second candlestick, which is also black, opens with a gap from the first
one
●​ The third candle is a white candle that opens above the second candle’s close
and closes above its open
●​ Although the third candle closes into the gap, it doesn’t cover it
This is what the Tasuki gap signifies:
1.​ The bears are in control even though there may be profit-taking, which makes
the second candle to gap up a bit
2.​ The buying pressure from profit-taking isn’t strong enough to bother the bears,
and the price continues down

37. On Neck Line

The on-neck line is a 2-candlestick pattern seen in a price that is trending

downwards.
Here’s how you can recognize an on neck line:
●​ A tall black candle in a downward trend
●​ The second candle is white and opens with a down gap from the first candle
●​ The second candle’s close matches (or nearly matches) the first candle’s low
price
And this is what the on-neck line pattern means:
1.​ The bears aggressively pushed the price down but appeared to take a break
after causing the second candle to gap down
2.​ The bulls pushed back up but couldn’t gain much ground before the bears
stopped them at the resistance level around the previous candle’s close
Related reading:
●​ Bearish On Neck Line Candlestick Pattern

38. In Neck Line

This is a 2-candlestick bearish continuation pattern. It looks like the on-neck line, but
the second candle closes at or slightly above the preceding candle’s close.
This is how to recognize an in neck line:
●​ The first candle is long and bearish
●​ The second candle opens with a down gap but rallies to cover the gap
●​ This second candle closes at the same level or slightly above the close of the
first candle
And here’s what an in neck means:
1.​ The bulls attempted to push back but couldn’t manage to push it beyond the
middle of the previous candle — where it would become the piercing pattern,
a bullish reversal pattern
2.​ The bears would seize back control and move the price lower
Related reading:
●​ The Bearish In Neck Line Candlestick Pattern

39. Matching Low

Matching low, this 2-candlestick pattern is normally seen as a bullish reversal

pattern, but some tests we’ve made suggest otherwise.
This is how you can identify a matching low pattern:
●​ A tall black candlestick that closed around its low
●​ A second, smaller candlestick that closed near the close of the prior candle
Here’s what the matching low candle means:
 1.​ After the first down candle, bulls try to push the price upwards, and the
second candle opens with a gap.
2.​ However, it stops around the close of the previous bar which has now been
turned into a resistance level. Yet, the bear pressure is still strong and will
most likely push the price past the resistance level.

40. Unique Three Rivers

The unique three rivers pattern is believed to be a bullish reversal pattern, but it
behaves more like a bearish continuation pattern on performance tests.
Here’s how you can identify the unique three rivers pattern:
●​ A long black candle in a downtrend is followed by another black candle that
has a long lower wick
●​ The second candle gaps up
●​ The low of the second candle is below the first candle’s low
●​ The third candle is a small bullish candle that lies below the second candle’s
body
The unique three rivers implies that:
1.​ Bulls are trying to push the price up
2.​ But the bearish pressure is too strong, since the highs constantly get lower
with every candlestick.

41. Bearish Trend Harami

This candlestick pattern was discussed under the bullish reversal patterns, but as we
stated there, it could also be a continuation pattern if price breaks below the low of
the second candle.
This is how to identify the Bearish Trend Harami:
●​ The first candlestick is long and bearish
●​ The range of the second candlestick lies within that of the first candle
And here’s what the Bearish Trend Harami could mean:
1.​ A strong bearish pressure as shown by the big black first candle
2.​ Temporary indecision and profit-taking which leads to a bullish candle that is
confined within the range of the first candle.
Related reading:
●​ The Bearish Harami Candlestick Pattern
●​ Bearish Harami Cross Candlestick Pattern

42. Neutral Doji

This is a very common candlestick, and it indicates that the price opened and closed
at the same level, even though it traded to higher and lower levels during the
session.
Here’s how to identify a neutral doji:
●​ The upper and lower wicks are small and ruffly equal in size
●​ The candlestick has no real body since it opens and closes at the middle
The neutral doji pattern shows that:
1.​ The bulls and bears mounted buying and selling pressure in the market
2.​ The session closed without a clear winner
Related reading:
●​ Neutral Doji Candlestick Pattern

43. Dragonfly Doji

The dragonfly is a type of doji candlestick where the open, high, and close prices of
the session are at the same level, but the session traded lower at some point.
This is how you can identify a dragonfly doji:
●​ The candlestick has no real body since it opens and closes at the same point
●​ The lower wick is long, but it has no upper wick
Here’s what a dragonfly doji signifies:
1.​ There was aggressive selling initially
2.​ Buyers stepped in and pushed the price back to where it opened
Related reading:
●​ Dragonfly Doji Candlestick Pattern

44. Gravestone Doji

Gravestone Doji is another type of doji candlestick. In this type, the open, low, and
close prices of the session are at the same level, although the session trader higher
at some point.
Here’s how to recognize a gravestone doji:
●​ It has no real body
●​ The upper wick is long, but there’s no lower wick
This is what the gravestone doji signifies:
1.​ A strong buying pressure early in the session
2.​ Bears later took control and pushed the price lower

45. Spinning Top

A spinning top is a candlestick pattern with a short real body and same-sized wicks.
It shows indecision in the market.
How to recognize a spinning top:
●​ It has a small body at the center
●​ Color doesn’t matter
●​ The upper and lower wicks are long and about the same size
And this is what the spinning top pattern means:
1.​ Bulls and bears battled for control, as signified by the long wicks
2.​ Neither of them could gain the upper hand, so the price closed near the open

46. Rising Window

A Rising Window candlestick pattern occurs in candlestick charting when a price gap
forms between the body of one candlestick and the next during an upward trend.
This pattern reflects a space where no trading took place, demarcated by the high
point of the previous candle and low point of the current one—indicative of dominant
bullish momentum with expectations set for price increases.

Rising Window candlestick pattern

47. Tweezer Top

The Tweezer Top candlestick pattern is a two-candle bearish reversal pattern that
occurs after an uptrend and signals an imminent reversal of the trend to the
downside. The pattern consists of two candles, where the first candle is bullish,
followed by a bearish or bullish candle that is the same high as the previous bar.
On a chart, it might look like this:
 Tweezer Top candlestick pattern

48. Three Inside Up

The Three Inside Up candlestick pattern is a bullish reversal pattern that occurs at
the end of a bearish trend. It consists of three candles, with the first two forming an
inside bar followed by a bullish breakout.
It might look like this on a chart:

Three Inside Up candlestick pattern

49. Bullish Harami Cross

A Bullish Harami Cross candlestick pattern is a large down candle followed by a doji.
It occurs during a downtrend. The bullish harami cross is confirmed by a price move
higher following the pattern.
An example of a Bullish Harami Cross is shown in this chart:
 Bullish Harami Cross candlestick pattern

50. Bullish Homing Pigeon

The Bullish Homing Pigeon candlestick pattern is a two-candle bullish reversal
pattern that occurs at the end of a bearish trend. Both candles are negative, but the
second candle is confined within the previous candle’s range.
This is how the pattern might look like on a chart:

Bullish Homing Pigeon

candlestick pattern

51. Bullish Kicker

A Bullish Kicker candlestick pattern is a pattern that’s often formed after a significant
downtrend, but could also form after an uptrend. In short, a bullish kicker consists of
a large bullish candlestick preceded by a gap to the upside and a bearish candle.
An example of a Bullish Kicker is shown here:

Bullish Kicker
candlestick pattern

52. Bullish Breakaway

A bullish breakaway pattern is traditionally considered a bullish reversal pattern in
oversold market conditions. The pattern consists of five bars, with the first one being
long and bearish, while the following three remain bearish but are smaller. The last
candle then breaks above the high of the three previous candlesticks, which creates
a “bullish breakaway”.
This is an infrequent pattern, and it might look like this on a chart:

Bullish Breakaway candlestick pattern

53. Bullish In Neck Line

Bullish In Neck Line candlestick pattern is a bullish continuation candlestick pattern
that appears in a positive trend, and signals that the market is headed for new highs.
It’s made up of a positive candle and is followed by a negative candle, which barely
manages to close at or slightly above the close of the previous bar.
The Bullisn In Neck Line might look like this on a chart:
 Bullish In Neck Line candlestick
pattern

54. Bullish Meeting Lines

Bullish Meeting Lines candlestick pattern is a two-candle bullish reversal pattern that
occurs in a downtrend and signals a reversal of the trend. The first candle of the
bullish meeting lines is bearish, and followed by a positive candle that closes very
near the close of the previous candle.
The two candle-patter might be defined like this:

Bullish Meeting Lines

candlestick pattern

55. Bullish Piercing Lines

A Bullish Piercing Line candlestick pattern is a two-candlestick pattern that appears
after a downtrend. The pattern signals an imminent reversal of the trend and consists
of one bearish candlestick, which is followed by a bullish candle that opens below
the close of the previous candle but manages to close above the middle point of the
previous candle.
Here’s an example of how it might look on a chart:
 Bullish Piercing Lines candlestick pattern

56. Bullish Separating Lines

Bullish Separating Lines candlestick pattern is a two-candle bullish continuation
candlestick pattern that forms in the middle of a bullish trend. It signals that the
current bullish trend is about to continue after a temporary pullback.
Thias is an example of Bullish Separating Lines:

Bullish Separating
Lines candlestick pattern

57. Three Black Crowes

Three Black Crows candlestick pattern is a bearish reversal pattern that occurs after
a bullish trend. It consists of three consecutive bearish candles, and signals that
market sentiment has shifted from bullish to bearish.
On a chart, it might look like this:
 Three Black
Crowes candlestick pattern

58. Three Outside Down

The Three Outside Down candlestick pattern is formed over three consecutive
trading sessions. It is a bearish reversal pattern that consists of three candlesticks
and is typically formed at the end of an uptrend or an extended price rally in a
downtrend, where it may signal a potential price reversal to the downside.
Here’s an example of a Three Outside Down candlestick pattern:
 Three Outside
Down candlestick pattern

59. Three Outside Up

The Three Outside Up candlestick pattern over three trading sessions. It consists of
three candlesticks and is typically formed in a downtrend or an extended downward
price swing in an uptrend, where it may indicate a potential price reversal to the
upside.
It’s not a frequent pattern, and it might look like this:

Three Outside Up candlestick pattern

60. Three Stars In The South

The Three Stars In The South candlestick pattern is a bullish reversal pattern that is
seen on candlestick charts, and it is made up of three consecutive bearish
candlesticks. It normally appears after a price decline, where it may indicate that the
downswing is losing momentum. The pattern doesn’t appear easily; it is quite rare.
When we quantified all the pattern into specific trading rules, the Three Stars In The
South might look like this:

Three Stars In The South

candlestick pattern

61. Three White Soldiers

A Bullish Three White Soldiers candlestick pattern is a bullish reversal pattern that
occurs at the end of a downtrend and signals a positive trend reversal. The pattern
consists of three consecutive tall bullish candles.
Because the stock market is normally bullish, the Three White Soldiers is relatively
frequent. When we scanned for the pattern using our quantified trading rules, this
pattern was filtered as a Three White Soldiers:

Three White Soldiers candlestick pattern

62. Tweezer Bottom

A Tweezer Bottom candlestick pattern forms as a bearish trend is turning bullish. In
short, the pattern consists of a low point tested one to several times, making it clear
that bulls won’t let prices go lower. As such, the pattern may consist of two or more
candles as long as the low point is intact.
Here’s an example:

Tweezer Bottom candlestick pattern

63. Upside Gap Two Crows

Upside Gap Two Crows candlestick pattern is a bearish reversal pattern that forms in
an uptrend and warns that the trend has ended. The pattern consists of three
candles: bullish and two bearish candles that gap up.
When we scanned for this pattern, we got the following positive match:

Upside Gap Two Crows candlestick

pattern

64. Upside Tasuki Gap

The Upside Tasuki Gap candlestick pattern is a bullish continuation pattern that
forms in an ongoing uptrend. It consists of three candles, where the first two are
bullish with a positive gap in-between, followed by a negative candle that closes in
the gap between the first two candles.
The pattern happens infrequent, and it might look like this:

Upside
Tasuki Gap candlestick pattern

65. Bearish Side By Side White Lines

The Bearish Side By Side White Lines candlestick pattern consists of three candles.
The first is bearish, followed by a positive candle that starts with a gap to the
downside. The third candle opens and closes at or near the same levels as the
previous candle. This pattern is very infrequent:
 Bearish Side
By Side candlestick pattern

66. Bearish Thrusting

Two consecutive candlesticks form a Bearish Thrusting candlestick pattern. The
pattern is formed when the price is in a downswing, either in a downtrend or in a
pullback in an uptrend. It is formed in a downswing when a small bullish candlestick
follows a long bearish candlestick close above the bearish one’s close but not up to
the midpoint of the real body of the bearish candlestick.
The pattern happens relatively frequently because it’s formed by only two
candlesticks:

Bullish Thrusting
candlestick pattern
67. Bearish Stick Sandwich
A Bearish Stick Sandwich candlestick pattern is a bullish and bearish formation that
signals a potential reversal of the trend. Depending on whether the pattern is bullish
or bearish, it will look a little different:

Bearish Stick Sandwich

candlestick pattern

68. Bearish Three Line Strike

A Bearish Three Line Strike candlestick pattern is a four-candle continuation pattern
forming a bearish trend. The first three candles are bearish, while the last candle is
positive and closes above the highest close of the previous three candles.
Because this is a four-candle formation, it doesn’t happen often. Here’s one example
after we scanned for the pattern:

Bearish Three Line Strike candlestick pattern

69. Bearish Tri-Star Doji
A Bearish Tri-Star Doji candlestick pattern is a three-candle reversal pattern that
forms at the end of a trend. As its name suggests, it consists of three Dojis, which
create a triangular pattern, after which the market is anticipated to turn in the
opposite direction of the main trend.
This is yet another pattern that doesn’t happen often and our scan resulted in such
an example:

Bearish Tri-Star Doji candlestick pattern

70. Bullish Abandoned Baby Pattern

A Bullish Abandoned Baby candlestick pattern is a bullish reversal pattern, meaning
that it appears at the end of a downtrend and signals the reversal of the trend. The
bullish abandoned baby consists of three candles, where the first is bearish, followed
by a gap to the downside. The second one gaps down and becomes a Doji, while the
last candle gaps up and ends as a positive candle:

Bullish Abandoned
Baby candlestick pattern