Candlestick patterns
A candlestick chart shows how the price moved in each period. Here are 16 common patterns, drawn simply and explained in plain words.
- Bullish: traders link it with a possible rise.
On this page, a hollow body means the price closed higher than it opened. A filled body means it closed lower.
Doji
- What it looks like
- The open and close are at almost the same price, so the body is a thin line. Wicks can stick out above and below.
- What it may suggest
- Buyers and sellers ended the period about even. Traders often read it as indecision and wait for the next candle.
Not a trading signal
Spinning top
- What it looks like
- A small body in the middle, with wicks above and below that are longer than the body.
- What it may suggest
- The price moved both ways but closed near where it opened. Traders often read it as indecision.
Not a trading signal
Marubozu
- What it looks like
- A long body with no wicks, or almost none. A hollow one closed at its high. A filled one closed at its low.
- What it may suggest
- One side was in control for the whole period. Traders often read it as strong momentum in the body's direction.
Not a trading signal
Hammer
- What it looks like
- A small body near the top, a long lower wick and little or no upper wick. It appears after prices have been falling.
- What it may suggest
- Sellers pushed the price down, but buyers brought it back up before the close. It may suggest the fall is losing strength.
Not a trading signal
Inverted hammer
- What it looks like
- A small body near the bottom, a long upper wick and little or no lower wick. It appears after a fall.
- What it may suggest
- Buyers tried to lift the price during the period. Traders often treat it as an early hint and wait for a candle that closes higher.
Not a trading signal
Hanging man
- What it looks like
- The same shape as a hammer: a small body on top and a long lower wick. But it appears after prices have been rising.
- What it may suggest
- Sellers managed a big drop inside the period. It may suggest the rise is getting weaker.
Not a trading signal
Shooting star
- What it looks like
- A small body near the bottom and a long upper wick. It appears after a rise.
- What it may suggest
- Buyers pushed the price well up, then sellers brought it back near the open. It may suggest the rise is running out of steam.
Not a trading signal
Bullish engulfing
- What it looks like
- Two candles after a fall. A small filled candle, then a bigger hollow candle whose body fully covers the first body.
- What it may suggest
- Buyers took over from sellers in a single period. It may suggest the fall could turn.
Not a trading signal
Bearish engulfing
- What it looks like
- Two candles after a rise. A small hollow candle, then a bigger filled candle whose body fully covers the first body.
- What it may suggest
- Sellers took over from buyers in a single period. It may suggest the rise could turn.
Not a trading signal
Bullish harami
- What it looks like
- Two candles after a fall. A long filled candle, then a small hollow candle whose body sits inside the first body.
- What it may suggest
- The selling slowed down sharply. Traders often read it as a pause that may come before a turn up.
Not a trading signal
Bearish harami
- What it looks like
- Two candles after a rise. A long hollow candle, then a small filled candle whose body sits inside the first body.
- What it may suggest
- The buying slowed down sharply. Traders often read it as a pause that may come before a turn down.
Not a trading signal
Piercing line
- What it looks like
- Two candles after a fall. A long filled candle, then a hollow one that opens below its low and closes above the middle of its body.
- What it may suggest
- Buyers won back more than half of the first candle's drop. It may suggest the fall is weakening.
Not a trading signal
Dark cloud cover
- What it looks like
- Two candles after a rise. A long hollow candle, then a filled one that opens above its high and closes below the middle of its body.
- What it may suggest
- Sellers took back more than half of the first candle's gain. It may suggest the rise is weakening.
Not a trading signal
Morning star
- What it looks like
- Three candles after a fall. A long filled candle, a small candle lower down, then a long hollow candle that closes above the middle of the first.
- What it may suggest
- Selling, then a pause, then strong buying. Traders often read it as a possible turn up.
Not a trading signal
Evening star
- What it looks like
- Three candles after a rise. A long hollow candle, a small candle higher up, then a long filled candle that closes below the middle of the first.
- What it may suggest
- Buying, then a pause, then strong selling. Traders often read it as a possible turn down.
Not a trading signal
Three white soldiers
- What it looks like
- Three long hollow candles in a row. Each one opens inside the body before it and closes near its high.
- What it may suggest
- Buyers stayed in control for three periods. It may suggest a fall is turning into a rise.
Not a trading signal
Not a trading signal. A pattern shows what happened, not what will happen, and the same pattern often fails. Many traders wait for the next candles and look at the wider trend before they act.
How to read a candle
Each candle covers one period, like one hour or one day. The thick part is the body. It runs from the opening price to the closing price.
The thin lines are the wicks, also called shadows. The top of the upper wick is the highest price. The bottom of the lower wick is the lowest price.
On this page, a hollow body means the price closed higher than it opened. A filled body means it closed lower.
Questions
Do candlestick patterns predict the price?
No. A pattern describes how buyers and sellers acted over a few periods. It is one clue among many, not a forecast.
Which time frame should I use?
Patterns form on any time frame, from one minute to one month. On longer time frames each candle covers more trading, so many beginners start there.
Why do two patterns with the same shape have different names?
Where a candle appears matters. A hammer and a hanging man look the same. A hammer comes after a fall, a hanging man after a rise.
Sources: StockCharts ChartSchool, Candlestick Pattern Dictionary; Britannica Money, candlestick pattern charts.