Major Bullish and Bearish Candle Patterns and Their Meanings
Candle patterns that predict upward movement or confirm an upward trend.
A bullish candle with a large body and no or very short upper and lower shadows. It indicates that buying pressure overwhelmed selling pressure, showing a strong upward movement.
A candle with a small body and a long lower shadow. When appearing in a downtrend, it suggests buying pressure is recovering and may signal a trend reversal.
A large bullish candle that follows a small bearish one, completely engulfing the body of the previous candle. It indicates that strong buying pressure has taken control of the market and is a strong signal of an upward reversal.
A three-day pattern where a large bearish candle is followed by a small-bodied candle, and then a large bullish candle. It signals an important bullish reversal as the downtrend stops and buying pressure increases. Like a star appearing in the morning sky and brightening, it suggests the market's downtrend is ending.
A pattern of three consecutive bullish candles progressively rising. Each candle opens and closes higher than the previous one, indicating sustained buying pressure and a strong upward trend.
A candle with a small body and a long upper shadow. When appearing at the end of a downtrend, it suggests buying pressure is recovering and may signal a bullish reversal.
Candle patterns that predict downward movement or confirm a downward trend.
A bearish candle with a large body and no or very short upper and lower shadows. It indicates that selling pressure overwhelmed buying pressure, showing a strong downward movement.
A candle with a small body and a long lower shadow. When appearing at the end of an uptrend, it suggests selling pressure is increasing and may signal a trend reversal.
A large bearish candle that follows a small bullish one, completely engulfing the body of the previous candle. It indicates that strong selling pressure has taken control of the market and is a strong signal of a downward reversal.
A candle with a small body and a long upper shadow. When appearing at the end of an uptrend, it suggests selling pressure is strengthening and may signal a bearish reversal.
This is a three-day pattern where a large bullish candle is followed by a small-bodied candle, and then a large bearish candle. It is a strong bearish reversal signal, indicating that the upward trend is stalling and selling pressure is increasing. Just like how the evening star appears in the sky before darkness, this pattern suggests the end of an uptrend in the market.
These are important candlestick patterns that indicate the possibility of a trend reversal. They provide crucial clues for making buy or sell decisions.
A candlestick with an almost identical opening and closing price, forming a cross shape. It represents equilibrium between buyers and sellers and suggests a possible trend change. When appearing at the end of an uptrend or downtrend, it can be an important reversal signal.
A doji candlestick with long upper and lower wicks. It indicates high market volatility and uncertainty, representing an intense battle between buyers and sellers. This pattern often appears at key turning points and can be a strong reversal signal.
A doji where the opening and closing prices are at the lower range, with a long upper wick. If it appears at the end of an uptrend, it signals increasing selling pressure, indicating a potential bearish reversal. Its shape resembles a gravestone, symbolizing the 'death' of an uptrend.
A doji where the opening and closing prices are at the upper range, with a long lower wick. If it appears at the end of a downtrend, it signals a potential bullish reversal, indicating a recovery in buying power. Its shape resembles a dragonfly, symbolizing the possibility of a new upward trend.