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Candlesticks

Candle patterns: a visual field guide

Recognise common shapes, then ask about trend, location and contrary evidence.

4 min readReviewed 26 Oct 2026
KEEP THIS IN MIND

A pattern name describes a shape in context. It is not a probability estimate or an entry instruction.

Shape needs context

The diagrams below are hypothetical sketches, not price data or signals. Small changes in a provider's definition can produce different pattern counts. Specify your rules before evaluating a pattern.

Ask what preceded it, where it sits relative to a broader range and whether liquidity or a scheduled release distorted the bar. Similar geometry can have different names after an advance or a decline.

Separate recognition from evidence

An engulfing pattern concerns the real bodies; it need not engulf both full high-low ranges. A doji has a very small body relative to its range, with the exact tolerance left to the chosen definition.

A later close beyond a pattern can be part of a predefined confirmation rule, but it can also worsen the entry price. Neither confirmation nor a recognised silhouette guarantees a reversal.

Test without seeing the future

Define the market, timeframe, prior trend, pattern tolerance and evaluation horizon. Include every matching case, costs and failures. Keep an untouched test period; selecting attractive screenshots after the event creates a misleading record.

Eight common patterns

Hypothetical illustrations, not historical data or signals. The dashed line suggests the preceding trend.

Doji

Either trendDojiOpen and close are nearly equal. The small body records little net progress during this interval; direction needs further context.
Open and close are nearly equal. The small body records little net progress during this interval; direction needs further context.

Hammer

After a declineHammerSmall body near the top of the range with a long lower wick, after a decline. The name does not establish that a bottom is in.
Small body near the top of the range with a long lower wick, after a decline. The name does not establish that a bottom is in.

Hanging man

After an advanceHanging manSimilar geometry to a hammer, after an advance. The preceding trend changes the interpretation; body colour alone does not define it.
Similar geometry to a hammer, after an advance. The preceding trend changes the interpretation; body colour alone does not define it.

Shooting star

After an advanceShooting starSmall body low in the range and a long upper wick, after an advance. It records an upper excursion that was not maintained into the close.
Small body low in the range and a long upper wick, after an advance. It records an upper excursion that was not maintained into the close.

Inverted hammer

After a declineInverted hammerA long upper wick and small low body, after a decline. It resembles a shooting star but appears in a different trend context.
A long upper wick and small low body, after a decline. It resembles a shooting star but appears in a different trend context.

Bullish engulfing

After a declineBullish engulfingAn up body spans the previous down body after a decline. The name concerns open-to-close bodies, not necessarily the full wicks.
An up body spans the previous down body after a decline. The name concerns open-to-close bodies, not necessarily the full wicks.

Bearish engulfing

After an advanceBearish engulfingA down body spans the previous up body after an advance. A recognised shape can still fail to precede a lasting decline.
A down body spans the previous up body after an advance. A recognised shape can still fail to precede a lasting decline.

Morning star

After a declineMorning starThree bars: a strong down body, a small low body, then an up body recovering into the first. Classic gap requirements vary by market and definition.
Three bars: a strong down body, a small low body, then an up body recovering into the first. Classic gap requirements vary by market and definition.
TRY IT IN YOUR RESEARCH NOTES

Build a failure gallery

Collect examples where a named pattern did not lead to the expected move. Compare their context with successful examples without changing the definition to exclude the failures.

Terms in this guide

DojiEngulfing bodyHammer

Try an example: Read a small body → Keep the preceding context → Compare two real bodies →

Read marks stay in this browser. Return to a path to review its full sequence.

Trading fundamentals path →

Educational notes, not personalised financial advice. Hypothetical examples and chart shapes are not performance claims or trading signals.