Candlestick patterns: every pattern, its exact rule and a practice chart
Each page below covers one pattern: what it shows, the exact rule this site uses to identify it, the pattern it gets confused with, and a chart where you find it yourself. The charts are simulated, so you practice reading shapes without any real money or real stock involved.
Candlestick patterns are shapes made by one or a few candles on a price chart. They describe how buyers and sellers fought during each period, such as a long wick showing rejected prices. Their meaning depends on the trend around them, and no candle pattern comes with a dependable success rate.
The patterns
Cheat sheet
Every pattern on one table, each drawn from its own practice chart. Want it on paper? Use the printable cheat sheet.
| Pattern | Shape | Where it forms | What it suggests |
|---|---|---|---|
| Doji | Body almost a line, any wicks | Anywhere; matters most after a long move | Indecision: neither side won the period |
| Hammer | Small body on top, long lower wick | After a decline | Buyers rejected lower prices; reversal possible, not confirmed |
| Hanging man | Small body on top, long lower wick | After a rise | Sellers appeared inside the uptrend; a warning, not proof |
| Shooting star | Small body low, long upper wick | After a rise | Buyers could not hold higher prices; reversal possible, unconfirmed |
| Inverted hammer | Small body low, long upper wick | After a decline | Buyers tested higher prices; needs a higher close to matter |
| Bullish engulfing | Green body covers prior red body | After a decline | Buyers took over the period; needs follow-through |
| Bearish engulfing | Red body covers prior green body | After a rise | Sellers took over the period; needs follow-through |
How to read a pattern in context
A candle pattern is never read alone. The same shape can mean opposite things depending on what came before it. A small body with a long lower wick is a hammer after a fall and a hanging man after a rise. A long upper wick is a shooting star after a rise and an inverted hammer after a fall.
So every reading starts with three questions:
- What was the trend before? On this site, a trend means the closes moved at least 2% over the 5 candles before the pattern.
- Where is the pattern? A pattern at a level where price has turned before deserves more attention than one in the middle of nowhere. See support and resistance.
- What happened next? Most patterns only matter if the following candles move the way the pattern suggests.
Single-candle vs multi-candle patterns
| Type | Examples | What it describes |
|---|---|---|
| Single candle | Doji, hammer, shooting star, inverted hammer | The fight inside one period |
| Two candles | Engulfing | A change of control from one period to the next |
Single-candle patterns are about wicks and body size. Multi-candle patterns are about how one body relates to the one before it.
Why we publish our thresholds
Most sites describe a doji as a candle with a small body. How small? Books disagree. Here every pattern has a number: a doji's body is at most 10% of its range, and a hammer's lower wick is at least twice its body. The same rules check every practice chart, so you can always verify why an answer is right. The methodology page lists them all.
An honest note on reliability
Candlestick patterns are useful for reading what happened. They are weak at predicting what happens next. Researchers have tested whether candlestick strategies create value for investors (for example Marshall, Young and Rose, 2006, in the sources). Results depend on the market, the period and trading costs, which is why these pages never quote win rates. Learn the patterns to read charts fluently, not as a shortcut to profit.
New to candles? Start with how to read candlestick charts, or keep the cheat sheet open while you practice.
Frequently asked questions
What are the most common candlestick patterns?
The ones beginners meet first are the doji, the hammer and hanging man, the shooting star and inverted hammer, and bullish and bearish engulfing. They cover the main ideas: indecision, rejected prices and a change of control. Each has its own page here with a practice chart.
Do candlestick patterns actually work?
They describe what buyers and sellers did, which is useful for reading a chart. As a standalone way to make money, the evidence is poor. Researchers have tested whether candlestick strategies create value for investors (for example Marshall, Young and Rose, 2006, in the sources); results depend on the market, the period and trading costs, and no pattern comes with a dependable success rate.
How many candlestick patterns are there?
Lists run from a dozen to over a hundred, depending on the source. Many are rare or minor variants of the same ideas. You get more from knowing a few patterns well, with exact rules and context, than from memorizing a long list.
What is the best way to learn candlestick patterns?
Practice finding them on charts, not just looking at pictures. Learn one pattern at a time, always check the trend before it, and compare look-alike pairs such as hammer and hanging man. The exercises on each pattern page are built for exactly that.