All 35 Most Powerful Candlestick Patterns  2024 Free Download

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What Are Candlestick Patterns?

Candlestick patterns are a powerful tool for traders, providing valuable insights into market trends and potential price movements. By understanding and utilizing these patterns, you can make more informed and strategic trading decisions

Candlestick patterns are a type of visual chart used by traders and investors to analyze market movements and predict future price changes. Originating from Japan over 300 years ago, these patterns are formed by the price movements of a security, derivative, or currency within a specific timeframe.

Each candlestick represents four key pieces of information for that period: the opening price, the closing price, the high price, and the low price. The main body (or the “real body”) of the candlestick shows the range between the opening and closing prices.

If the closing price is higher than the opening price, the candlestick is often shaded white or green, indicating a bullish period. Conversely, if the closing price is lower than the opening price, the candlestick is shaded black or red, indicating a bearish period. The lines protruding from the top and bottom of the real body, known as “wicks” or “shadows,” indicate the high and low prices during the period.

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List of All 35 Powerful Candlesticks Patterns

Certainly! Below is a table categorizing various candlestick patterns into Bullish, Bearish, and Neutral groups. This division helps traders identify potential market movements based on the formation of these patterns:

Bullish Candlestick Patterns	Bearish Candlestick Patterns	Neutral Candlestick Patterns
Hammer	Hanging Man	Doji
Piercing Pattern	Dark Cloud Cover	Spinning Top
Bullish Engulfing	Bearish Engulfing	High Wave
The Morning Star	The Evening Star	Mat-Hold
Three White Soldiers	Three Black Crows
White Marubozu	Black Marubozu
Three Inside Up	Three Inside Down
Bullish Harami	Bearish Harami
Tweezer Bottom	Tweezer Top
Inverted Hammer	Shooting Star
Three Outside Up	Three Outside Down
Bullish Counterattack	Bearish Counterattack
Rising Three Methods	Falling Three Methods
Upside Tasuki Gap	Downside Tasuki Gap
Rising Window	Falling Window

This table outlines the main candlestick patterns used in technical analysis, grouped according to the sentiment they typically signify in the markets.

What are Bullish Candlestick Patterns

Bullish candlestick patterns are a crucial tool for identifying bullish trends in the market. These patterns indicate a potential reversal from a downtrend to an uptrend, signaling that buyers have gained control of the market.

1.Hammer

A hammer is a bullish candlestick pattern that indicates a potential reversal in a downtrend. It has a small body and a long lower wick, resembling a hammer. This pattern suggests that buyers have stepped in to push the price higher, signaling a potential upward trend.

2.Inverted Hammer

Inverted Hammer: The Inverted Hammer appears during a downtrend and features a small body with a long upper shadow and little or no lower shadow. This pattern suggests that although selling initially pushed the price down, buyers managed to drive it back up, closing near the open. It indicates potential buying interest or weakening seller strength, hinting at a possible reversal to an uptrend.

3.White Marubozu

A white marubozu is a single-candlestick pattern that has a long white body with no wicks. This pattern indicates a strong bullish sentiment in the market and suggests that buyers are firmly in control.

4.Bullish Engulfing

A bullish engulfing pattern is a two-candlestick pattern that signals a potential reversal from a downtrend to an uptrend. It occurs when a small bearish candle is followed by a larger bullish candle that completely engulfs the previous candle. This pattern suggests a strong shift in momentum from sellers to buyers.

5.Piercing

A piercing pattern is a two-candlestick pattern that signals a potential reversal from a downtrend to an uptrend. It occurs when a bearish candle is followed by a bullish candle that opens below the low of the previous candle and closes at least halfway up the body of the previous candle. This pattern indicates a bullish sentiment in the market.

6.Bullish Harami

 This pattern consists of a smaller bullish candle completely enclosed within the range of a larger bearish candle preceding it. It appears during a downtrend and suggests a potential reversal as the market sentiment may be shifting from bearish to bullish. The smaller candle indicates that selling pressure is diminishing and buyers are starting to take control.

7.Tweezer Bottom

 This pattern occurs when two or more consecutive candlesticks have matching lows, indicating strong support at this price level. Typically, it forms during a downtrend and suggests that the selling pressure has been exhausted, making it a potential signal for a bullish reversal. The candles can vary in color, but the key is their aligned lows.

8.Morning Star

The morning star is a three-candlestick pattern that signals a potential reversal from a downtrend to an uptrend. It consists of a large bearish candle, followed by a small indecisive candle, and then a large bullish candle. This pattern suggests that buyers are gaining control and a potential upward trend may follow.

9.Three White Soldiers

Three white soldiers is a bullish candlestick pattern that consists of three consecutive long bullish candles with small or no wicks. This pattern indicates a strong uptrend and suggests that buyers are in control of the market.

 10.Three Inside Up Candlestick 

The Three Inside Up candlestick pattern is a bullish reversal pattern typically found at the end of a downtrend, signaling a potential shift towards an uptrend. It is considered a more reliable pattern because it is composed of three candles.

First Candle: This is a large bearish candle that continues the current downtrend, showing that sellers are still in control.

Second Candle: A smaller bullish candle that opens lower than the close of the first candle but closes higher than its open, yet still within the range of the first candle’s body. This candle indicates a weakening in the bearish momentum.

Third Candle: Another bullish candle that opens within the body of the second candle and closes above the high of the first candle. This final candle confirms the reversal, as it shows buyers have taken control and pushed the price above the initial bearish candle’s high.

The effectiveness of the Three Inside Up pattern increases when it occurs with high volume on the third day. This indicates strong buying pressure, which further validates the reversal signal. 

11.Three Outside Up

 This is a three-candle pattern that begins with a bearish candle, followed by a bullish candle that completely engulfs the first bearish candle, and a third bullish candle that closes higher than the second. This pattern is a strong indicator of a bullish reversal, confirming that buyers are taking control after a period of selling.

12.Bullish Counterattack

 This pattern is formed by two opposite-colored candles of roughly the same size during a downtrend. The first is a bearish candle, and the second is a bullish candle that opens at or near the low of the first candle and closes at or near the high of the first candle. It indicates a potential reversal as it shows that buyers are matching the strength of the sellers.

13.Rising Three Methods

This is a five-candle continuation pattern occurring in an uptrend. It starts with a large bullish candle, followed by three smaller bearish candles that are contained within the range of the first large bullish candle, and concludes with another large bullish candle that closes at a new high. This pattern suggests that the uptrend is likely to continue after a brief consolidation.

14.Upside Tasuki Gap

This pattern involves three candles during an uptrend. The first two candles are bullish with a gap between them, and the third is a bearish candle that opens within the body of the second candle but does not close the gap. It indicates that the uptrend is likely to continue as buyers maintain control despite some selling pressure.

15.Rising Window

This pattern is characterized by a gap between two bullish candles in an uptrend, where the low of the second candle is higher than the high of the first. It signifies strong buying pressure as the price continues to rise without retracement, reinforcing the ongoing bullish trend.

What are Bearish Candlestick Patterns

Bearish candlestick patterns are an essential tool for traders looking to make informed decisions in the market. By clearly indicating a potential downward movement in price and an increase in selling pressure, these patterns allow traders to capitalize on potential short positions or strategically exit long positions.

16.Hanging Man

This pattern appears at the end of an uptrend and looks like a hammer but is considered bearish. It has a small body at the top and a long lower wick. This indicates that although the price was pushed up during the trading period, it fell back down near the opening level, suggesting that buyers are losing control and a reversal downwards might be coming.

17.Bearish Engulfing

This two-candle pattern starts with a smaller bullish candle followed by a larger bearish candle that completely “engulfs” the first one. It shows up at the end of an uptrend and signals that sellers have overtaken buyers, possibly leading to a reversal in price direction.

18.Dark Cloud Cover

This pattern is also a two-candle setup occurring at the peak of an uptrend. The first candle is bullish, but the second one opens higher and then closes below the midpoint of the first candle’s body. This suggests that after reaching new highs, the price faced significant selling pressure, indicating a potential shift from buyers to sellers.

19.The Evening Star

This is a three-candle pattern that signals a reversal from an uptrend to a downtrend. It starts with a large bullish candle, followed by a small candle (which could be bullish or bearish) that gaps higher, and ends with a large bearish candle that closes well into the body of the first candle. This pattern suggests that after indecision, sellers have taken control.

20.Three Black Crows

Comprising three consecutive long, bearish candles that open within the previous candle’s body and close at a new low, this pattern appears during an uptrend. It indicates strong selling pressure and a shift in momentum from buyers to sellers, suggesting a strong downward move.

21.Black Marubozu

This pattern is a single long, black (or red) candlestick with no upper or lower wicks. It indicates that sellers controlled the trading action from the opening bell to the close, without any pushback from buyers. This strong bearish candle suggests dominance by sellers and potential continuation of a downtrend.

22.Shooting Star

The Shooting Star appears during an uptrend and looks like an inverted hammer but is bearish. It has a small lower body and a long upper wick. This pattern suggests that although the price spiked up during the session, it came back down to close near the open, indicating that buyers are losing their grip and a reversal downward might be imminent.

23.Three Inside Down

This pattern is a bearish reversal indicator at the end of an uptrend and is the opposite of the Three Inside Up pattern. It starts with a large bullish candle, followed by a smaller bearish candle that closes within the range of the first candle, and a third bearish candle that closes below the low of the first candle, signaling a shift in momentum from buyers to sellers.

24.Bearish Harami

This pattern consists of a large bullish candle followed by a smaller bearish candle that is completely contained within the vertical range of the previous candle’s body. It appears during an uptrend and suggests a slowdown in bullish activity and potential for a market reversal as buyers lose momentum.

25.Falling Three Methods

This is a continuation pattern that appears in a downtrend. It begins with a long bearish candle, followed by three small bullish or neutral candles that are contained within the range of the first candle, and concludes with another long bearish candle. The final candle’s close below the first candle’s low reinforces the ongoing bearish sentiment, indicating that the downtrend is likely to continue.

26.On-Neck Pattern

This two-candlestick pattern occurs during a downtrend. The first candle is a long bearish candle, followed by a smaller bullish candle. The second candle closes near the low of the first candle, almost at the same level as the first candle’s close. This pattern suggests that despite a brief rally, selling pressure remains strong and the downtrend is likely to continue.

27.In-Neck Pattern

Similar to the On-Neck Pattern, the In-Neck Pattern also appears during a downtrend and features two candles. The first is a long bearish candle, followed by a smaller bullish candle. However, the second candle closes slightly above the close of the first candle, but still well within the body of the first candle. This indicates that any recovery by buyers is weak and the prevailing downtrend is expected to persist.

28.Thrusting Pattern

This pattern also involves two candles and appears during a downtrend. The first candle is a long bearish one. The second candle is bullish and opens lower than the close of the first candle but closes well into the body of the first candle, typically more than halfway but not enough to form a Bullish Engulfing Pattern. This suggests that while there was some buying interest, it was not sufficient to overcome the bearish sentiment, pointing to a likely continuation of the downtrend.

29.Bearish Counterattack

This is a two-candlestick reversal pattern that occurs during an uptrend. The first candle is a large bullish candle, showing strong buying pressure. The second candle is a large bearish candle that opens higher but closes at or near the closing price of the first candle. This pattern indicates that despite initial continued bullish sentiment, sellers have stepped in strongly and matched the buyers, suggesting a potential reversal or halt in the upward trend.

30.Bearish Abandoned Baby

This is a rare but significant top reversal pattern that appears in an uptrend. It consists of three candles:

The first candle is a large bullish candle, continuing the existing uptrend.
The second candle is a Doji (a candle with a very small or virtually non-existent body) that gaps above the first candle. This indicates indecision in the market.
The third candle is a large bearish candle that gaps down from the Doji, leaving it abandoned between the two larger candles.

The Bearish Abandoned Baby suggests a strong shift from buying to selling pressure, with the gap on either side of the Doji showing a complete reversal in market sentiment. 

What are Neutral Candlestick Patterns

Neutral candlestick patterns indicate indecision or balance between buyers and sellers, suggesting that neither side has clear control over the price movement at that moment. These patterns can be a precursor to a continuation of the current trend or a potential reversal, depending on subsequent candle formations and market conditions. Here are some common neutral candlestick patterns:

31.Doji

This is perhaps the most well-known neutral candlestick pattern, characterized by its cross-like appearance where the opening and closing prices are virtually the same. The length of the shadows can vary. The presence of a Doji suggests indecision and a struggle for footing between buyers and sellers.

32.Spinning Top

This pattern features a small body with upper and lower shadows that are longer than the body. The color of the body can be either bullish or bearish but is not significant due to the small size of the body. Spinning tops indicate a balance of power, with neither bulls nor bears able to gain control.

33.High Wave

Similar to the spinning top, high wave candles have very small bodies with long upper and lower shadows. They signal uncertainty in the market, with significant fluctuation in prices during the trading period but closing near the open.

34.Rickshaw Man

A variation of the Doji, the Rickshaw Man has a small body with long upper and lower shadows. It’s another indicator of market indecision where the trading session ends close to where it began despite significant price movement.

35.Evening Star Doji

The evening star doji is an incredibly powerful bearish reversal pattern that you need to pay attention to. It’s made up of three candles that clearly indicate a shift in market sentiment. The first candle shows a strong bullish trend, but the second doji candle reveals a lack of market confidence and a slowdown in buying pressure. And finally, the third bearish candle confirms the trend change from bullish to bearish. Don’t ignore the evening star doji – it’s a signal you can’t afford to miss.

How to Confirm Candlestick Pattern

Confirming a candlestick pattern involves several steps to ensure the signal is strong and reliable:

Volume: Look for increased volume during the formation of the pattern. High volume provides validation that there is significant interest in the price move indicated by the pattern.

Pattern Position: A pattern should be considered in the context of the prevailing trend. For example, a bullish reversal pattern is more significant during a downtrend.

Waiting for Confirmation: Always wait for additional confirmation after a pattern forms. This could mean waiting for the next candle to close, affirming the pattern’s prediction.

Technical Indicators: Utilize other technical indicators to confirm the pattern. For instance, a bullish engulfing pattern followed by an RSI moving above 30 can be a strong buy signal.

Resistance and Support: Check if the pattern aligns with key levels of support or resistance. Patterns that form at these levels can be particularly potent.

By combining these strategies and validations, day traders can more effectively read and utilize candlestick charts and patterns to make informed trading decisions.

Conclusion

 This blog post,  provides a comprehensive guide to all  35 powerful candlestick patterns. You can download them in a free PDF format. Whether you’re new to trading or have years of experience, this resource is designed to improve your understanding of market signals through detailed explanations of each pattern. I am confident that this information will greatly enhance your trading strategies and market analysis skills. I am eager to hear about your experiences and insights, so please share your feedback or ask questions in the comments section. Your engagement is invaluable as we all continue to learn and grow in our trading journeys.