The Japanese candlestick chart patterns are the most popular way of reading trading charts.
Why?
Because they are simple to understand and tend to work very well when we trade with them.
Today you’ll learn about all the candlestick patterns that exist, how to identify them on your charts, where should you be looking for them, and what to expect to happen after they appear.
Even better, you’ll know the success rate for each of the patterns, according to the Encyclopedia of Candlestick Charts by Thomas N. Bulkowski (link).
Ready?
Here’s the list if you want to jump into any particular pattern, otherwise just keep reading.
Bullish reversal candlestick patterns show that buyers are in control, or regaining control of a movement.
They are often used to go long, but can also be a warning signal to close short positions.
Here’s an extensive list of them:
The Hammer candlestick pattern is formed by one single candle.
Here’s how to identify the Hammer candlestick pattern:
It looks like this on your charts:
This 1-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 60%.
When a hammer candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a hammer candlestick pattern appeared:
The Inverted Hammer candlestick pattern is formed by one single candle.
Here’s how to identify the Inverted Hammer candlestick pattern:
It looks like this on your charts:
This 1-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 67%.
When an inverted hammer candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after an inverted hammer candlestick pattern appeared:
The Bullish Engulfing candlestick pattern is formed by two candles.
Here’s how to identify the Bullish Engulfing candlestick pattern:
It looks like this on your charts:
This 2-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 62%.
When a Bullish Engulfing candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Bullish Engulfing candlestick pattern appeared:
The Piercing candlestick pattern is formed by two candles.
Here’s how to identify the Piercing candlestick pattern:
It looks like this on your charts:
This 2-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 64%.
When a Piercing candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Piercing candlestick pattern appeared:
The Morning Star candlestick pattern is formed by three candles.
Here’s how to identify the Morning Star candlestick pattern:
It looks like this on your charts:
This 3-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 78%.
When a Morning Star candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Morning Star candlestick pattern appeared:
The Three White Soldiers candlestick pattern is formed by three candles.
Here’s how to identify the Three White Soldiers candlestick pattern:
It looks like this on your charts:
This 3-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 84%.
When a Three White Soldiers candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Three White Soldiers candlestick pattern appeared:
The White Marubozu candlestick pattern is formed by one single candle.
Here’s how to identify the White Marubozu candlestick pattern:
It looks like this on your charts:
This 1-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 71%.
When a White Marubozu candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a White Marubozu candlestick pattern appeared:
The Three Inside Up candlestick pattern is formed by three candles.
Here’s how to identify the Three Inside Up candlestick pattern:
It looks like this on your charts:
This 3-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 65%.
When a Three Inside Up candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Three Inside Up candlestick pattern appeared:
The Bullish Harami candlestick pattern is formed by two candles.
Here’s how to identify the Bullish Harami candlestick pattern:
It looks like this on your charts:
This 2-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 53%.
When a Bullish Harami candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Bullish Harami candlestick pattern appeared:
The Tweezer Bottom candlestick pattern is formed by two candles.
Here’s how to identify the Tweezer Bottom candlestick pattern:
It looks like this on your charts:
This 2-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 56%.
When a Tweezer Bottom candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Tweezer Bottom candlestick pattern appeared:
The Three Outside Up candlestick pattern is formed by three candles.
Here’s how to identify the Three Outside Up candlestick pattern:
It looks like this on your charts:
This 3-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 75%.
When a Three Outside Up candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Three Outside Up candlestick pattern appeared:
The Bullish Counterattack Line candlestick pattern is formed by two candles.
Here’s how to identify the Bullish Counterattack candlestick pattern:
It looks like this on your charts:
This 2-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
When a Bullish Counterattack Line candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Bullish Counterattack Line candlestick pattern appeared:
The Dragonfly Doji candlestick pattern is formed by one single candle.
Here’s how to identify the Dragonfly Doji candlestick pattern:
It looks like this on your charts:
This 1-candle bullish candlestick pattern is a reversal pattern, meaning that it’s used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 51%.
When a Dragonfly Doji candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Dragonfly Doji candlestick pattern appeared:
Bearish reversal candlestick patterns show that sellers are in control, or regaining control of a movement.
They are often used to short, but can also be a warning signal to close long positions.
Here’s an extensive list of them:
The Hanging Man candlestick pattern is formed by one single candle.
Here’s how to identify the Hanging Man candlestick pattern:
It looks like this on your charts:
This 1-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 59%.
When a Hanging Man candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Hanging Man candlestick pattern appeared:
The Shooting Star candlestick pattern is formed by one single candle.
Here’s how to identify the Shooting Star candlestick pattern:
It looks like this on your charts:
This 1-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 60%.
When a Shooting Star candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Shooting Star candlestick pattern appeared:
The Bearish Engulfing candlestick pattern is formed by two candles.
Here’s how to identify the Bearish Engulfing candlestick pattern:
It looks like this
This 2-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 82%.
When a Bearish Engulfing candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Bearish Engulfing candlestick pattern appeared:
The Dark Cloud Cover candlestick pattern is formed by two candles.
Here’s how to identify the Dark Cloud Cover candlestick pattern:
It looks like this on your charts:
This 2-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 63%.
When a Dark Cloud Cover candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Dark Cloud Cover candlestick pattern appeared:
The Evening Star candlestick pattern is formed by three candles.
Here’s how to identify the Evening Star candlestick pattern:
It looks like this on your charts:
This 3-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 71%.
When an Evening Star candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after an Evening Star candlestick pattern appeared:
The Three Black Crows candlestick pattern is formed by three candles.
Here’s how to identify the Three Black Crows candlestick pattern:
It looks like this on your charts:
This 3-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 79%.
When a Three Black Crows candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Three Black Crows candlestick pattern appeared:
The Black Marubozu candlestick pattern is formed by one single candle.
Here’s how to identify the Black Marubozu candlestick pattern:
It looks like this on your charts:
This 1-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 54%.
When a Black Marubozu candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Black Marubozu candlestick pattern appeared:
The Three Inside Down candlestick pattern is formed by three candles.
Here’s how to identify the Three Inside Down candlestick pattern:
It looks like this on your charts:
This 3-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 69%.
When a Three Inside Down candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Three Inside Down candlestick pattern appeared:
The Bearish Harami candlestick pattern is formed by two candles.
Here’s how to identify the Bearish Harami candlestick pattern:
It looks like this on your charts:
This 3-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 53%.
When a Bearish Harami candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Bearish Harami candlestick pattern appeared:
The Tweezer Top candlestick pattern is formed by two candles.
Here’s how to identify the Tweezer Top candlestick pattern:
It looks like this on your charts:
This 2-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 56%.
When a Tweezer Top candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Tweezer Top candlestick pattern appeared:
The Three Outside Down candlestick pattern is formed by three candles.
Here’s how to identify the Three Outside Down candlestick pattern:
It looks like this on your charts:
This 3-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 70%.
When a Three Outside Down candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Three Outside Down candlestick pattern appeared:
The Bearish Counterattack Line candlestick pattern is formed by two candles.
Here’s how to identify the Bearish Counterattack Line candlestick pattern:
It looks like this on your charts:
This 2-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
When a Bearish Counterattack Line candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Bearish Counterattack Line candlestick pattern appeared:
The Gravestone Doji candlestick pattern is formed by one single candle.
Here’s how to identify the Gravestone Doji candlestick pattern:
It looks like this on your charts:
This 1-candle bearish candlestick pattern is a reversal pattern, meaning that it’s used to find tops.
For this reason, we want to see this pattern after a move to the upside, showing that bears are starting to take control.
The success rate of this pattern is 51%.
When a Gravestone Doji candlestick pattern appears at the right location, it may show:
Here’s an example of a chart showing a trend reversal after a Gravestone Doji candlestick pattern appeared:
Bullish continuation candlestick patterns show that buyers are still in control after an upward movement.
They are often used to go long or to add more to long positions.
Here’s an extensive list of them:
The Rising Three Methods candlestick pattern is formed by five candles.
Here’s how to identify the Rising Three Methods candlestick pattern:
It looks like this on your charts:
This 5-candle bullish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to go long after pauses during an uptrend.
For this reason, we want to see this pattern after a move to the upside, showing that bulls are starting to take control again.
The success rate of this pattern is 79%.
Here’s an example of a chart showing a continuation move after a Rising Three Methods candlestick pattern appeared:
The Upside Tasuki Gap candlestick pattern is formed by three candles.
Here’s how to identify the Upside Tasuki Gap candlestick pattern:
It looks like this on your charts:
This 3-candle bullish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to go long after pauses during an uptrend.
For this reason, we want to see this pattern after a move to the upside, showing that bulls are starting to take control again.
The success rate of this pattern is 57%.
Here’s an example of a chart showing a continuation move after an Upside Tasuki Gap candlestick pattern appeared:
The Rising Window candlestick pattern is formed by two candles.
Here’s how to identify the Rising Window candlestick pattern:
It looks like this on your charts:
This 2-candle bullish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to go long after pauses during an uptrend.
For this reason, we want to see this pattern after a move to the upside, showing that bulls are starting to take control again.
The success rate of this pattern is 75%.
Here’s an example of a chart showing a continuation move after a Rising Window candlestick pattern appeared:
The Mat Hold Bullish candlestick pattern is formed by five candles.
Here’s how to identify the Mat Hold Bullish candlestick pattern:
It looks like this on your charts:
This 5-candle bullish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to go long after pauses during an uptrend.
For this reason, we want to see this pattern after a move to the upside, showing that bulls are starting to take control again.
The success rate of this pattern is 78%.
Here’s an example of a chart showing a continuation move after a Mat Hold Bullish candlestick pattern appeared:
The On Neck Bullish candlestick pattern is formed by two candles.
Here’s how to identify the On Neck Bullish candlestick pattern:
It looks like this on your charts:
This 2-candle bullish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to go long after pauses during an uptrend.
For this reason, we want to see this pattern after a move to the upside, showing that bulls are starting to take control again.
Here’s an example of a chart showing a continuation move after an On Neck Bullish candlestick pattern appeared:
The In Neck Bullish candlestick pattern is formed by five candles.
Here’s how to identify the In Neck Bullish candlestick pattern:
It looks like this on your charts:
This 2-candle bullish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to go long after pauses during an uptrend.
For this reason, we want to see this pattern after a move to the upside, showing that bulls are starting to take control again.
Here’s an example of a chart showing a continuation move after an In Neck Bullish candlestick pattern appeared:
Bearish continuation candlestick patterns show that sellers are still in control after a downward movement.
They are often used to go short or to add more to short positions.
Here’s an extensive list of them:
The Falling Three Methods candlestick pattern is formed by five candles.
Here’s how to identify the Falling Three Methods candlestick pattern:
It looks like this on your charts:
This 5-candle bearish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to short after pauses during a downtrend.
For this reason, we want to see this pattern after a move to the downside, showing that bears are starting to take control again.
The success rate of this pattern is 71%.
Here’s an example of a chart showing a continuation move after a Falling Three Methods candlestick pattern appeared:
The Downside Tasuki Gap candlestick pattern is formed by three candles.
Here’s how to identify the Downside Tasuki Gap candlestick pattern:
It looks like this on your charts:
This 3-candle bearish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to short after pauses during a downtrend.
For this reason, we want to see this pattern after a move to the downside, showing that bears are starting to take control again.
The success rate of this pattern is 54%.
Here’s an example of a chart showing a continuation move after a Downside Tasuki Gap candlestick pattern appeared:
The Falling Window candlestick pattern is formed by two candles.
Here’s how to identify the Falling Window candlestick pattern:
It looks like this on your charts:
This 2-candle bearish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to short after pauses during a downtrend.
For this reason, we want to see this pattern after a move to the downside, showing that bears are starting to take control again.
The success rate of this pattern is 73%.
Here’s an example of a chart showing a continuation move after a Falling Window candlestick pattern appeared:
The Mat Hold Bearish candlestick pattern is formed by five candles.
Here’s how to identify the Mat Hold Bearish candlestick pattern:
It looks like this in your charts:
This 5-candle bearish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to short after pauses during a downtrend.
For this reason, we want to see this pattern after a move to the downside, showing that bears are starting to take control again.
Here’s an example of a chart showing a continuation move after a Mat Hold Bearish candlestick pattern appeared:
The On Neck Bearish candlestick pattern is formed by five candles.
Here’s how to identify the On Neck Bearish candlestick pattern:
It looks like this on your charts:
This 2-candle bearish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to short after pauses during a downtrend.
For this reason, we want to see this pattern after a move to the downside, showing that bears are starting to take control again.
Here’s an example of a chart showing a continuation move after an On Neck Bearish candlestick pattern appeared:
The In Neck Bearish candlestick pattern is formed by five candles.
Here’s how to identify the In Neck Bearish candlestick pattern:
It looks like this on your charts:
This 2-candle bearish candlestick pattern is a continuation pattern, meaning that it’s used to find entries to short after pauses during a downtrend.
For this reason, we want to see this pattern after a move to the downside, showing that bears are starting to take control again.
Here’s an example of a chart showing a continuation move after an In Neck Bearish candlestick pattern appeared:
Indecision candlestick patterns show exactly what the name suggests, times when the market is undecided about where to go.
For this reason, when you see them, it’s a good practice to stay away and wait for clear price action showing a move starting in some direction.
The Doji candle is formed by one single candle.
Here’s how to identify the Doji candlestick pattern:
It looks like this on your charts:
The Spinning Top candlestick pattern is formed by one single candle.
Here’s how to identify the Spinning Top candlestick pattern:
It looks like this on your charts:
The High Wave candlestick pattern is formed by one single candle.
Here’s how to identify the High Wave candlestick pattern:
It looks like this on your charts:
If it looks similar to the Spinning Top pattern, that’s because it is.
The only difference between them is the size of the wicks. In the High Wave pattern, they are abnormally bigger.
If you want to learn more about these patterns and their success rate in different scenarios, here’s the book that you should read.
Now I want to hear from you.
What’s your favorite candlestick pattern and why?
Let me know in the comments below.
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Hello Sir
this is very helpful for me and clear everyone to understand with example Thank you so much for writing for us . GOD HELP YOU AND YOUR FAMILY
Thank you Tariq.
I extend my sincerest gratitude for the wealth of knowledge you've shared. Your contribution has not only broadened my perspective but also empowered me to excel further. Thank you.
Glad to know that.
Thank you for the highly informative articles you provide. They are presented in simple language that can be clearly understood by any reader. If l had seen this site earlier, my trading business would have been at a higher level.
Keep up the good work and God bless you.
Joseph
You're welcome, Joseph.
Thanks for this useful information! Before now, I didn't have a thorough understanding of most of the candlestick patterns that you discussed, but now I have understood thoroughly, and I believe this will have a very positive effect on my trading.
Thanks and God bless you!
-Olalere Amusa from Nigeria.
Thank you Olalere
Thank all patern
Best explain easy to learn
Glad to know you liked it, Hariom.
Thank you so much Pendro.
This is useful. be blessed
Glad to know you enjoyed it, Sara.
i sign up a full course but still i dnt get any email
Check your spam, sometimes a few emails may end up there.
Also, if you had subscribed previously, the free course is not sent again.
Thank you very much, it reminds strategy
Glad to know you liked it, Nsikak.