What it is

A Hammer has a small body near the top of the candle with a long lower wick at least twice the size of the body, and little to no upper wick. It can be bullish (green) or bearish (red) in colour, though a green body is considered stronger.

What it signals

Price fell sharply during the session but buyers stepped in and drove it back up near the open. This rejection of lower prices after a downtrend signals that selling pressure may be exhausted and a reversal could be forming.

Signal

Bullish reversal — most reliable after a downtrend, confirmed by the next candle

What it is

The Inverted Hammer has a small body near the bottom of the candle with a long upper wick at least twice the body size, and little to no lower wick. It is the upside-down version of the Hammer and appears at the bottom of a downtrend.

What it signals

Buyers attempted to push price higher during the session but were partially rejected. Although price closed near the low, the attempt itself signals growing buying interest. Requires confirmation from the next candle — a bullish close above the Inverted Hammer’s open strengthens the signal.

Signal

Bullish reversal — weaker than the Hammer, requires confirmation

What it is

The Hanging Man looks identical to the Hammer — small body near the top, long lower wick, little to no upper wick — but it appears at the top of an uptrend rather than the bottom. Context is everything with this pattern.

What it signals

Despite closing near the top, sellers were able to push price down sharply at some point during the session — a warning that selling pressure is emerging. The long lower wick represents an attempt at a sell-off that buyers barely managed to recover. A bearish follow-through candle confirms the reversal.

Signal

Bearish reversal — appears at the top of an uptrend, requires bearish confirmation

What it is

A Spinning Top has a small body (either colour) centred between two wicks of roughly equal length. The body is notably smaller than the wicks above and below. It can be bullish (green) or bearish (red).

What it signals

Indecision — both buyers and sellers were active but neither gained meaningful control. Price moved in both directions but closed near where it opened. Like the Doji, context matters: a Spinning Top after a strong trend can signal exhaustion and a potential reversal.

Signal

Neutral — Indecision, potential reversal at trend extremes

What it is

A Bullish Marubozu is a long green candle with no upper or lower wicks. The open is the low of the session and the close is the high — buyers were in complete control from open to close without any meaningful retracement.

What it signals

Extreme bullish conviction. Sellers had no opportunity to push price back. Often signals the start or continuation of a strong uptrend. Can also appear as a breakout candle from key resistance levels.

Signal

Strongly bullish — continuation or reversal depending on context

What it is

A Bearish Marubozu is a long red candle with no upper or lower wicks. The open is the high and the close is the low — sellers dominated entirely from open to close with no recovery attempt by buyers.

What it signals

Extreme bearish conviction. Buyers had no chance to push back during the session. Signals the start or continuation of a strong downtrend, or a breakdown through key support. One of the strongest single-candle bearish signals.

Signal

Strongly bearish — continuation or reversal depending on context

What it is

A two-candle pattern where a smaller bearish (red) candle is followed by a larger bullish (green) candle whose body completely engulfs the body of the first candle. The green candle opens below the red candle’s close and closes above its open.

What it signals

Buyers have overwhelmed sellers with force — the entire previous session’s move has been reversed and exceeded. One of the most reliable two-candle reversal patterns. The larger the engulfing candle relative to the first, the stronger the signal.

Signal

Bullish reversal — strongest after a downtrend with above-average volume

What it is

The mirror of Bullish Engulfing — a smaller bullish (green) candle is followed by a larger bearish (red) candle whose body completely engulfs the first. The red candle opens above the green candle’s close and closes below its open.

What it signals

Sellers have taken over with force at the top of an uptrend. The entire previous bullish session has been reversed and exceeded. A high-conviction bearish reversal signal, especially on elevated volume.

Signal

Bearish reversal — strongest at the top of an uptrend with above-average volume

What it is

A large bearish (red) candle is followed by a smaller bullish (green) candle whose entire body is contained within the body of the first candle. The opposite of Engulfing — here the second candle is the smaller one. “Harami” means “pregnant” in Japanese.

What it signals

The downtrend is losing momentum — the smaller second candle shows the bears are no longer in full control. Not as strong as an Engulfing pattern; it suggests a potential pause or reversal but requires confirmation from the next candle before acting.

Signal

Bullish reversal — moderate strength, requires confirmation

What it is

A large bullish (green) candle is followed by a smaller bearish (red) candle whose body sits entirely within the body of the first. The uptrend appeared strong on the first candle, but the second candle’s hesitation raises a warning flag.

What it signals

Bullish momentum is stalling at the top of an uptrend. The smaller bearish candle inside the prior green candle signals uncertainty and potential distribution. A bearish follow-through candle is needed to confirm the reversal.

Signal

Bearish reversal — moderate strength, requires confirmation

What it is

A bearish candle is followed by a bullish candle that opens below the first candle’s low but closes above the midpoint of the first candle’s body — “piercing” into it. The green candle must close above the 50% level of the red candle’s body to qualify.

What it signals

Buyers stepped in at new lows and pushed price back above the midpoint of the prior bearish candle — showing significant buying conviction. A weaker version of Bullish Engulfing but still a meaningful reversal signal in a downtrend.

Signal

Bullish reversal — at the bottom of a downtrend

What it is

The bearish counterpart to the Piercing Line. A bullish candle is followed by a bearish candle that opens above the first candle’s high but closes below the midpoint of the first candle’s body — casting a “dark cloud” over the uptrend.

What it signals

Sellers entered aggressively at new highs and pushed price down through the midpoint of the prior bullish candle. Signals that the uptrend may be losing steam and a reversal is possible. The deeper the close penetrates the first candle, the stronger the signal.

Signal

Bearish reversal — at the top of an uptrend

What it is

Two consecutive candles (first bearish, second bullish) that share the same low. The matching lows show that price found the same support level on both sessions and was rejected both times.

What it signals

A defined support level has been tested twice and held. The double rejection signals that sellers cannot push price lower and buyers are absorbing supply at that level. A bullish reversal or bounce is likely from that floor.

Signal

Bullish reversal — double support test at the bottom of a downtrend

What it is

The bearish counterpart to the Tweezer Bottom. Two consecutive candles (first bullish, second bearish) share the same high. Price reached the same resistance level on both sessions and was rejected both times.

What it signals

A defined resistance level has been tested twice and rejected both times. Price could not break through, and the second rejection (a bearish candle) confirms the selling pressure. A bearish reversal or pullback from that ceiling is likely.

Signal

Bearish reversal — double resistance rejection at the top of an uptrend

What it is

A bearish candle is followed by a bullish candle that gaps open above the first candle’s open — a full gap in sentiment. The second candle opens at or above where the first candle opened, signalling a complete shift in momentum.

What it signals

One of the most powerful two-candle reversal signals. The gap-up open shows an abrupt and decisive shift from bearish to bullish sentiment. The larger the gap, the stronger the signal.

Signal

Strong bullish reversal — one of the most reliable two-candle patterns

What it is

A bullish candle is followed by a bearish candle that gaps open below the first candle’s open — a full gap-down in sentiment. The second candle opens at or below where the first candle opened, marking a complete reversal of momentum.

What it signals

An abrupt and forceful shift from bullish to bearish sentiment. The gap-down shows that sellers were so aggressive that no price level from the prior session offered support. Highly reliable bearish signal.

Signal

Strong bearish reversal — one of the most reliable two-candle patterns

What it is

A three-candle pattern: a large bearish candle, followed by a small-bodied candle (the “star”) that gaps down, followed by a large bullish candle that closes well into the body of the first candle.

What it signals

The downtrend lost momentum (star candle), then buyers took over decisively on the third candle. One of the most reliable bullish reversal patterns in technical analysis.

Signal

Strong bullish reversal — one of the most reliable three-candle patterns

What it is

Three consecutive long bullish (green) candles, each opening within the previous candle’s body and closing progressively higher. Each candle should have small or no upper wicks.

What it signals

Strong and sustained bullish momentum over three sessions. Signals a decisive shift in sentiment, often marking the start of a new uptrend after a period of weakness or consolidation.

Signal

Strong bullish reversal / continuation — signals the start of a sustained uptrend

What it is

Three consecutive long bearish (red) candles, each opening within the previous candle’s body and closing progressively lower. The mirror image of Three White Soldiers.

What it signals

Sustained and accelerating bearish momentum over three sessions. A high-conviction signal that an uptrend is reversing or a downtrend is continuing with force.

Signal

Strong bearish reversal / continuation — signals the start of a sustained downtrend

What it is

A rare three-candle pattern: a large bearish candle, followed by a Doji that gaps down below the first candle’s low (the “abandoned baby”), followed by a large bullish candle that gaps up above the Doji. The Doji must be isolated with gaps on both sides.

What it signals

Extreme indecision at a price low, followed by a forceful bullish recovery that completely gaps away from the low. One of the most powerful and rare bullish reversal signals in candlestick analysis.

Signal

Very strong bullish reversal — rare but highly reliable

What it is

The bearish counterpart: a large bullish candle, a Doji that gaps up above the first candle’s high (the “abandoned baby” at the top), then a large bearish candle that gaps down below the Doji. The Doji must have gaps on both sides.

What it signals

A price high was reached with extreme indecision (the isolated Doji), then sellers took over violently, gapping below the Doji. One of the strongest top reversal signals available.

Signal

Very strong bearish reversal — rare but highly reliable