Best 30 Candlestick Pattern You Should Have To Know

This PDF is for those who are beginner in stock market there is best 30 candlestick pattern that work in stock market & you should have to know about . knowledge of candlesticks are very important in stock market.

1. All You Need to Know About
Candlestick Charts
When you comes to trading in the financial markets, one of the most important tools you can
have in your weapon is a good understanding of technical analysis. And within the field of
technical analysis, one of the most useful and widely used techniques is the candlestick chart.
Candlestick charts are a type of financial chart used to represent the price movements of an
asset over time. They are comprised of individual "candles" that indicate the opening, closing,
high, and low prices of the asset for a given time period. Candlestick charts can be used to
identify trends, reversals, and other important patterns in an asset's price action.
Learning to read and interpret candlestick charts is an essential skill for anyone looking to trade
in the financial markets. In this presentation, we will explore the basics of candlestick charting,
including the various types of candlestick patterns, how to identify them on a chart, and how to
use them to make informed trading decisions.
Candlestick charts are a popular way to analyze the price movement of stocks. In this
presentation, we'll explore the most common candlestick patterns that can help you make
informed trading decisions.

2. Red & Green Candle
Know your candle -
First of all, you have to stay away from the misconception that green candle means buy
and red candle means sell
A red candlestick indicates that the closing price is lower than the opening price, while a
green candlestick indicates that the closing price is higher than the opening price.

3. 1. Doji Candlesticks
Identity
Doji candlesticks are characterized by the opening and closing prices
being very close or even identical, which results in a short or non-
existent body (the central part of the candlestick) and equally long
upper and lower wicks (the thin lines above and below the body). Doji
candlesticks represent indecision or a balance between buyers and
sellers in the market.

4. Types of Doji Candle
Standard Doji
This is the classic
Doji candlestick
where the opening
and closing prices
are very close or
identical. It suggests
indecision in the
market and the
potential for a
reversal, especially
when it appears
after a strong price
trend.
Long-Legged Doji
In a long-legged
Doji, the upper and
lower wicks are
longer, indicating
even greater
uncertainty in the
market. Traders
might interpret this
as a sign of
impending volatility
and a possible trend
reversal.
Dragonfly Doji
A Dragonfly Doji
occurs when the
opening and closing
prices are at or near
the high of the
trading session, and
there's a long lower
wick. It suggests
that buyers are
gaining control and
that a bullish
reversal may be on
the horizon.
Gravestone Doji
The Gravestone Doji
is the opposite of
the Dragonfly Doji.
It has a long upper
wick with the
opening and closing
prices near the low
of the session. This
pattern suggests
that sellers are
taking control, and a
bearish reversal
may be likely.

5. 3. Hammer Candlesticks
Identity
A hammer candlestick typically forms after downtrend . It has a small real body (the difference
between the open and close prices) near the top of the candle's range, with a long lower shadow
(also called the "tail") that is at least two times the length of the real body. The upper shadow is
usually small or nonexistent. This pattern suggests that buyers are gaining control and may push
the price higher.
It resembles a "T" and occurs after a downtrend, indicates a potential trend reversal in the
market
There are two types of Hammer Candlesticks :-
1. Bullish Hammer 2. Bearish Hammer

6. Bullish Hammer
A bullish hammer is a single candlestick pattern that typically signals
a potential reversal in a downtrend. It forms when the price opens
near its low, experiences a significant decline during the trading
session, but manages to close near or above its opening price.
The candlestick resembles a hammer, with a small body and a long
lower wick or shadow.
When you spot a bullish hammer after a downtrend, it suggests that
buyers are stepping in, and there may be a potential trend reversal to
the uptrend.

7. Bearish Hammer
Similar to the bullish hammer candlestick, the bearish hammer
candlestick serves as a bullish signal. It shows that the buyers could
absorb the selling pressure but could not drive up the asset's price
past the opening price.
A bearish hammer is a candlestick pattern that typically signals a
potential reversal in an downtrend. consists of a small body near the
bottom of the price range, with a long lower wick.

8. 4. Inverted Hammer
Candlestick
An inverted hammer is a single candlestick pattern ,small body, long
upper wick that's twice the length of the real body(Green or Red) . The
close should be near the open for the real body of the candlestick to
remain small, This pattern is considered significant when it appears
after a downtrend, as it may signal a weakening of selling pressure
and the possibility of a bullish reversal. Traders often interpret the
inverted hammer as a sign that buyers are gaining strength and that
the market sentiment might be shifting in favor of an upward
movement.
Like hammer ,There are two types of inverted Hammer Candlesticks
Bothe are trend reversal either in green or red.
1. Bullish 2. Bearish

9. Difference between Hammer &
Hanging Man Candlestick
Before explaining about Hanging man candlestick, let us tell you that
hammer or hanging man candlesticks Look like the same. The hanging man
candlestick appears at the top of an uptrend, indicating a potential reversal
from bullish to bearish. On the other hand, the hammer candlestick is found
at the bottom of a downtrend, suggesting a possible shift from bearish to
bullish.

10. 5.Hanging Man Candlestick
Identity
The Hanging Man is a candlestick pattern typically forms after an uptrend and suggests that the
bullish momentum may be weakening, signaling a potential trend reversal to the downside. It
has a small real body (the rectangular part of the candlestick) near the top of the trading range,
with a long lower shadow (the line below the body) and little to no upper shadow. The color of the
real body can be either bullish (Green) or bearish (Red).
Like Hammer candlestick it has also two types
1. Bullish 2. Bearish

11. Bullish Hanging Man
A bullish hanging man candlestick pattern is a single candlestick
formation that typically appears in uptrend and suggests a potential
reversal in the price movement. This pattern is characterized by a
small body (in Green color) with a long lower shadow,

12. Bearish Hanging Man
A bearish hanging man candlesticks pattern is same as bullish
hanging man rather than bearish is more strong than bullish. Both
are made in uptrend ,small body with long lower weak. Traders often
interpret the bearish hanging man as a sign that seller are gaining
strength indicates a potential trend reversal in the market.

13. 2. Engulfing Candlesticks
Identity
An engulfing candlestick pattern is a candlestick chart pattern where the second candle's real
body completely overlaps or engulfs the first(Previous) candle's real body. The second candle is
much larger than the first, so that it completely covers or "engulfs" the length of the previous
bar.
This pattern is significant because it often suggests a reversal of the current trend in the market.
There are two Engulfing Candlestick Patterns :-
1. Bullish Engulfing 2. Bearish Engulfing

14. Bullish Engulfing
Candlestick
A bullish engulfing candlestick pattern occurs at the
end of a downtrend. It consists of two candles (Red &
Green).
with the first (Red) candle having a relatively small
body and short shadows, also known as wicks. The
second (Green) candle has longer wicks and a real
body that engulfs the body of the previous candle.
The pattern signals traders that buyers are taking
over the sellers and a trend reversal (Uptrend) is
expected.
it is essential to consider other technical indicators
and perform comprehensive analysis to confirm
signals and make well-informed trading decisions.

15. Bearish Engulfing Candlestick
A bearish engulfing candlestick pattern is opposite of bullish
engulfing.
This pattern occurs at the end of an uptrend and signals a potential
reversal to a downtrend. It consists of two candles (Red & Green).
The first (Green) candle is relatively small bullish candle the second
(Red) candle is a larger bearish candle that completely engulfs the
first (Green) small bullish candle
In other words, the second candle opens above the high of the first
candle and closes below the low of the first candle
The pattern signals traders that seller are taking over the buyer and a
trend reversal (downtrend) is expected.

16. 9. Bullish Harami
Candlestick
Identity
A bullish Harami candlestick pattern is a two-candlestick reversal
pattern that typically occurs during a downtrend and suggests a
potential trend reversal to the upside .The pattern consists of a large
Red candlestick First & followed by a smaller Green candlestick on
the second . The bullish (Green)candle of the second is completely
engulfed within the body of the previous Bearish (Red) candle. Traders
often interpret this pattern as a signal that the selling momentum
may be decreasing, and buyers might be gaining strength.
However, it's important to consider other technical indicators and
factors to confirm the potential reversal before making trading
decisions

17. 10. Bearish Harami
Candlestick
A bullish Harami candlestick pattern is a two-candlestick reversal
pattern that typically occurs during a downtrend and suggests a
potential trend reversal to the upside .The pattern consists of a large
Red candlestick First & followed by a smaller Green candlestick on
the second . The bullish (Green)candle of the second is completely
engulfed within the body of the previous Bearish (Red) candle. Traders
often interpret this pattern as a signal that the selling momentum
may be decreasing, and buyers might be gaining strength.

18. 18. Tweezer Top Candlestick
Pattern
The Tweezer Top candlestick pattern is a bearish reversal pattern that
consists of two candlesticks. It is typically observed at the end of an
uptrend and suggests a potential shift in market sentiment from
bullish to bearish
The first candlestick is a bullish (Green) candlestick, representing the
continuation of the existing uptrend It is followed by a small real body
with upper weak and the closing price is near the low of the candle.
The second candlestick is a bearish (Red) candlestick that open the
same level of previous candle's close & Close the same level of
previous candle's open.
When you combine the first and second candlesticks, the high points
of both candlesticks create a horizontal line, forming what looks like
a "tweezer" or a horizontal line with two protruding wicks. The
Tweezer Top pattern serves as a bearish reversal signal ( Downtrend)

19. 19. Tweezer Bottom
Candlestick Pattern
The Tweezer Bottom is a bullish reversal candlestick pattern that
occurs at the end of a downtrend, indicating a potential shift in
market sentiment from bearish to bullish.
This pattern is formed by two consecutive candlesticks, and its
distinctive feature is that the lows of the two candles align,
resembling a pair of tweezers, The pattern begins with a downtrend,
and the first candle is a bearish candlestick with lower weak. The
second candle is a bullish candlestick that immediately follows the
first one, It opens around the same level as the previous candle's
close & close previous candle's high.
The lows of both candles should be approximately at the same price
level, forming a tweezer, The Tweezer Bottom suggests that bears
have lost control, and the market may be ripe for a bullish reversal.

20. 26. Bullish Belt Hold
Candlestick Pattern
The candle, similar in appearance to a Marubozu small shadow at the
top of the candle, The candle’s opening price is significantly lower
than the previous candle's low. ​ The Bullish Belt Hold is a single
candlestick pattern in technical analysis that typically indicates a
strong bullish reversal in the market. It is also known as "yorikiri" in
Japanese.
This pattern often appears after a downtrend or consolidation and
suggests a sudden shift in sentiment, with buyers taking control and
pushing the price higher. Traders and analysts interpret the Bullish
Belt Hold as a signal that bullish momentum is likely to continue in
the subsequent sessions

21. 27. Bearish Belt Hold
Candlestick Pattern
The Bearish Belt Hold is the opposite of the Bullish Belt Hold and
indicates a potential bearish reversal in the market. It is
characterized by a single bearish candlestick with a small shadow at
the bottom and the opening price significantly higher than the
previous candle's high. This pattern suggests that sellers have taken
control and may drive the price lower in the upcoming sessions.
The Bearish Belt Hold often appears after an uptrend or consolidation
and signals a shift in sentiment, with sellers dominating the market.
Traders and analysts interpret this pattern as a potential indication of
bearish momentum that may continue in the subsequent trading
sessions. It is important for investors to be aware of the Bearish Belt
Hold when analyzing candlestick patterns for trading decisions.

22. 11. The Marubozu Candlestick
Pattern
Identity
The Marubozu candlestick pattern is a long-bodied
single candlestick pattern with no shadow . A
Marubozu candlestick has no upper or lower shadow (
wick) and is easy to spot due to its long body. It
basically looks like a vertical rectangle. They indicate
strong buying or selling pressure.

23. Bullish Marubozu Bearish Marubozu
Price movement
A Bullish Marubozu indicates that the
price opened low and closed high, with no
upper or lower shadows. This suggests
strong buying activity throughout the
entire trading session.
Bullish momentum
Traders may interpret a White Marubozu
as a signal of strong bullish momentum
and consider it a potential continuation
of an existing uptrend.
Market sentiment
A White Marubozu can provide traders
with valuable information about the
market sentiment. It suggests that
buyers are in control and that the price is
likely to continue its upward movement.
1Bearish Marubozu
A Bearish Marubozu indicates that the
price opened high and closed low, with
no upper or lower shadows. This
suggests strong selling activity
throughout the entire trading session.
2Bearish Marubozu
A Black Marubozu signals strong selling
pressure throughout the entire trading
session. The absence of upper and
lower shadows indicates that sellers
dominated the market from the
opening to the closing prices.
3Bearish Momentum
Traders may interpret a Black
Marubozu as a signal of strong bearish
momentum and consider it a potential
continuation of an existing downtrend.

24. 12. Piercing line Candlestick
Pattern
Piercing line candlestick pattern is made up of
two-candle pattern that indicates bullish reversal
in the market, The first candle is a bearish candle,
indicating a downtrend. The second candle opens
lower than the previous close but closes more than
halfway (50%)up the body of the first candle,
signaling a potential trend reversal (uptrend).
The bullish Piercing Pattern suggests that the selling pressure from
the first day has been absorbed by buyers, Indicating trend reversal
(Uptrend).

25. 13. Dark Cover Cloud
Candlestick Pattern
The Dark Cloud Cover is a bearish candlestick reversal pattern that
occurs at the end of an uptrend signaling a potential shift from
bullish to bearish sentiment. This pattern consists of two candlesticks
and is identified by a strong upward move on the first candle,
followed by a second (red)candle where the price opens higher than
the first(green) candle's close but closes below the midpoint of the
first (green)candle.
This Pattern suggests that the buying momentum from the first
candle has been overcome by selling pressure, leading to a potential
reversal(Downtrend).

26. 1. Piercing line 2. Dark cover cloud
1. Two candle pattern
2. Trend reversal pattern
3. Effective if found during downtrend
4.First candle red, second green
5.Both candles should be big
6.Green candle opens lower the red candle
7.Green candle close slightly below the top
of red candle.
1.Two candle pattern
2.Trend reversal pattern
3.Effective if found during uptrend
4.Frist candle green, second red
5.Both candle should be big
6.red candle opens above green candle
7.Red candle closes slightly above the
bottom of green candle.

27. 24. Bullish Separating Line
Candlestick
The Bullish Separating Line is a candlestick pattern that typically
signals a potential reversal of a prevailing downtrend in financial
markets. This pattern consists of two consecutive candles, with the
first being a bearish (Red) candle and the second being a bullish
(Green) candle.
In this pattern, the first candle is bearish candle reflecting the
continuation of selling pressure. However, the second candle opens
lower than the previous candle's close but quickly reverses its
direction and closes higher previous candle's body.
This bullish reversal suggests a shift in market sentiment from
bearish to bullish, indicating potential buying interest and the
possibility of an upcoming uptrend. The open price of both the
candlestick patterns are same.

28. 25. Bearish Separating Line
Candlestick
The bearish separating line is a candlestick pattern in technical
analysis that typically signals a potential reversal of an uptrend in a
financial market. This pattern consists of two consecutive
candlesticks, where the first candle is a bullish (green) candle,
followed by a second bearish (Red) candle. The key characteristic of
the bearish separating line pattern is that the opening price of the
second candle is slower than the opening price of the preceding
bullish candle, creating a noticeable gap between the two.
This pattern suggests a shift in market sentiment from bullish to
bearish, indicating that the previous buying momentum may be
losing strength. Traders and analysts often interpret the bearish
separating line as a potential warning of pull back.

29. 8. Shooting Star
Identity
The shooting star pattern is a bearish reversal pattern and is formed
during an uptrend. The pattern consists of a single candlestick with a
small body located at or near the bottom of the price range and a long
upper shadow that extends well above the body. The long upper
shadow indicates that sellers took control and pushed the price lower
by the close.

30. 6. Morning Star
Identity
The Morning Star is a bullish reversal pattern that typically occurs at
the end of a downtrend. It consists of three candlesticks. The first is a
large bearish candle, signaling the continuation of the existing
downtrend. The second (Red or Green) candle is a small-bodied candle
with a gap down from the first candle, suggesting indecision in the
market. The third candle is a large bullish candle with a gap up from
the second candle, Indicating a strong shift in momentum to the
uptrend
confirmation from other technical indicators or trendlines before making
trading decisions

31. 7. Evening Star
Identity
The Evening Star is the bearish counterpart to the Morning Star and
occurs at the end of an uptrend. Like the Morning Star, it also consists
of three candlesticks. The first is a large bullish candle, reflecting the
prevailing uptrend. The second is a small-bodied (Red or Green) candle
with a gap up from the first candle, indicating indecision. The third
candle is a large bearish candle with a gap down from the second
candle, signaling a shift in momentum to the downside

32. 9 .Three white soldiers
candlestick pattern
Identity
The "Three White Soldiers" is a bullish candlestick
pattern that typically signals a strong reversal of a
downtrend. This pattern consists of three following
long and bullish (Green ) candlesticks with
progressively higher closes. Each candle opens within
the body of the previous one and closes near its high,
indicating a shift from bearish sentiment to bullish
sentiment.

33. 10. Three Black Crows
Candlestick Pattern
Identity
Three Black Crows is a bearish candlestick pattern
that suggests a potential reversal of an existing
uptrend. This pattern forms over three long and
bearish candlesticks with progressively lower closes.
Each candle opens within the body of the previous one
and closes near its low, indicating sustained selling
pressure throughout the pattern.

34. 14.Three Inside Up Candlestick
Pattern
Three inside up candlestick pattern in made up of three candles
indicate a bullish reversal, The pattern begins with a long bearish
candle, indicating a continued downtrend. The second candle is a
smaller bullish candle, which opens and closes within the first
candle's body. This candle represents a temporary indecision in the
momentum The third candle is long bullish with a higher close than
the second candle. that often signal a reversal in trend(Uptrend).

35. 15. Three Inside Down
Candlestick Pattern
The Three Inside Down candlestick pattern is a bearish reversal
formation that occurs after an uptrend. This pattern consists of three
candles and is considered a reliable signal of potential trend reversal.
The first candle is a large bullish candle that reflects the existing
uptrend. The second candle is a small bearish candle that open &
closes within the body of the first candle. This candle represents a
temporary indecision in the upward momentum. The third candle is a
significant bearish candle that closes below the low of the second
candle. This candle indicates a strong bearish sentiment has taken
over, erasing the gains made during the uptrend and suggesting a
potential reversal of the trend.

36. 16. Three Outside Up
Candlestick Pattern
The "Three Outside Up" candlestick pattern is a bullish reversal
pattern that typically occurs during a downtrend, signaling a potential
reversal of the prevailing bearish sentiment. This pattern consists of
three consecutive candlesticks, The pattern begins with a bearish
(Red) candlestick, This candle establishes the existing downtrend. The
second candlestick is a Long bullish (Green) candle that open & closes
above the high of the first candlestick. This indicates a shift in
sentiment as buyers gain control. The pattern is completed with
another bullish candle that closes higher than the second candle's
close.
This candle reinforces the bullish momentum and suggests a
potential trend reversal, as buyers continue to take control.

37. 17. Three Outside Down
Candlestick Pattern
The Three Outside Down candlestick pattern is a bearish reversal
pattern that typically occurs at the end of an uptrend, signaling a
potential reversal in the market sentiment. This pattern is formed
over three consecutive candlesticks. The first candle is bullish (Green)
candle The second candlestick is a key component of the pattern and
serves as a transition from bullish to bearish sentiment. It is a bearish
candlestick that opens higher of the first candle & closes below the
first candle The third and final candlestick in the pattern is a bearish
candlestick that closes lower than the second. It further confirms the
reversal as it extends the downward momentum.

38. 23. Upside Gap Two Crows
Candlestick
The Upside Gap Two Crows is a bearish candlestick pattern. This
pattern typically consists of three candlesticks. The first candle is a
strong bullish candle that continues the prevailing uptrend. The
second candle opens with a gap higher than the previous candle's
close, creating an upside gap. However, the second candle is a bearish
,The third candle in the pattern is another bearish candle, typically
closing lower than the second candle.
This formation suggests a shift in market sentiment from bullish to
bearish,

39. 28. Three River Bottom
Candlestick Pattern
The Three River Bottom is a bullish candlestick pattern that appears
in technical analysis, signaling a potential reversal of a downtrend . :
The pattern begins with a long bearish candle, the second candle is a
smaller bearish candle, The third candle is a bullish candle
The Three River Bottom pattern visually resembles a series of three
descending candlesticks, with the second and third candles exhibiting
signs of reduced bearish pressure and the emergence of bullish
strength.

40. 20. Rising Three Method
Candlestick Pattern
It is also know as Bullish Mat Hold
The Rising Three Methods is a bullish continuation candlestick pattern that typically occurs in an
uptrend, signaling a temporary consolidation before the prevailing bullish trend resumes. This
pattern is composed of five candlesticks and is identified by specific price action characteristics.
The pattern begins with a strong bullish candle, representing the existing uptrend, This candle is
typically large and demonstrates the dominance of buyers in the market. The next three
candlesticks form a sideways or slightly downward(These candles are typically smaller in size and
have relatively small real bodies) While the overall trend is bullish, these three candles show a
temporary pause or hesitation in the market as it consolidates. The pattern concludes with a
bullish candlestick that closes higher than the close of the first candlestick.
Traders often interpret the confirmation of the pattern (the fifth candle) as a signal to continue
holding or entering long positions, anticipating a continuation of the uptrend.

41. Rising Three Method Candlestick Pattern

42. 21. Falling Three Method
Candlestick Pattern
It is also known as Bearish Mat Hold
The Falling Three Methods candlestick pattern is a continuation pattern that occurs within a
downtrend, indicating a brief consolidation before the prevailing bearish trend resumes. This
pattern is composed of five candlesticks and unfolds as follows
The pattern begins with a long bearish candle, representing the existing downtrend The
subsequent three candlesticks form a clear pattern within the range of the first bearish candle.
These three candles are smaller in size and can be bullish but they typically exhibit a sideways or
consolidating market movement. The pattern suggests a temporary pause or indecision in the
market
The pattern concludes with a long bearish candlestick that closes lower than the close of the
first candlestick.
Traders may interpret this pattern as an opportunity to maintain or initiate short positions,
expecting the downward momentum to persist.

43. Falling Three Method Candlestick Pattern

44. 29. Bullish Hikkake Candlestick
The Bullish Hikkake Candlestick pattern is a trend reversal pattern that
signals the end of a downtrend and a potential bullish reversal.. This
pattern is identified by a specific sequence of candlesticks and is
considered a signal that the market sentiment may be shifting from
bearish to bullish.
The pattern begins with an inside bar, which is a candlestick with a smaller
range (high to low) compared to the previous candle.
The following candlestick forms with a lower low than the inside bar.
The last candle is a bullish (upward) candle that closes above the high of the
first candle, indicating a potential trend reversal.
The Bullish Hikkake pattern is interpreted as a sign that the market may be
turning bullish .As with any candlestick pattern, it's essential to confirm the
Bullish Hikkake with other technical indicators

46. 30. Bearish Hikkake Candlestick
The Bearish Hikkake Candlestick pattern is a trend reversal pattern that
signals the end of an uptrend and a potential bearish reversal. This
pattern is identified by a specific sequence of candlesticks and is
considered a signal that the market sentiment may be shifting from
bullish to bearish.
The pattern begins with an inside bar, which is a candlestick with a smaller
range compared to the previous candle.
The following candlestick forms with a higher high than the inside bar, and
the last candle is a bearish (downward) candle that closes below the low of
the first candle, indicating a potential trend reversal.
Traders often use the Bearish Hikkake as a signal to consider short (sell)
positions, anticipating a bearish reversal.