Table of Contents

 24 Different Candlestick Patterns to Learn for Intraday Trading

There are 2 types of candlesticks patters. Single candlestick & multiple candlestick patterns.

Single candlestick patterns are studied by observing a ‘single’ candlestick. Let’s understand the different types of single candlestick patterns first.

#1. Hammer Candlestick

A Hammer is a bullish signal, consisting of a short upper body and longer lower wick. It indicates that the prices bounced back even after selling pressure. Thus, a hammer at the bottom of a downtrend indicates that the trend has changed to bullish.

Both red or green hammers are bullish indicators but green hammers are stronger bullish indicators because it means that the buyers are gaining control.

#2. Hanging Man

A hammer formation at the top of an uptrend is called a Hanging Man and is a bearish signal indicating the end of the uptrend. The long lower wick indicates that the buyers have tried to keep the prices up but the sellers are gaining control.

As you can see in the adjoining image, there is a downtrend reversal after the hanging man formation.

#3. Inverted Hammer

An inverted hammer at the bottom of a downtrend is a bullish trend reversal signal. It indicates that the buyers were able to resist selling pressure as sellers were not able to take the price down much. 

If there is a green candle after the inverted hammer, it would give further confirmation of a trend reversal.

#4. Shooting Star

The inverted hammer formation at the top of an uptrend is called a shooting star. It is a bearish trend reversal signal. The long upper wick indicates that the buyers were not able to take the prices up, as sellers are gaining control.

If there is a red candle after the shooting star, it would give further confirmation of a trend reversal.

#5. Spinning Top

A spinning top is indicated by a short body candle with a long upper and lower wick. This candle indicates that neither the buyers or sellers could gain control and hence, the opening price and closing price were close to each other.

A spinning top shows indecision and might be a neutral candlestick indicating a pause in the trend or a continuation.

#6. Bullish Spinning Top

A spinning top at the bottom of a downtrend could indicate a potential trend reversal. If there is a spinning top after a continuous downtrend and the candle after the spinning top is a green candle, it may be a sign of trend reversal.

#7. Bearish Spinning Top

A spinning top at the top of an uptrend could indicate a potential trend reversal. If there is a spinning top after a continuous uptrend and the candle after the spinning top is a red candle, it may be a sign of trend reversal.

#8. Doji Candlestick Pattern

The Doji is formed when the opening and closing price of a candle is almost the same. Thus, the candle looks like a ‘+’ sign. The Doji might be a red or green candle, representing indecision in the market, i.e. neither the buyers or sellers are in control.

A Doji formation at the top or bottom of a trend generally indicates a trend reversal. To better understand it, look at the above image. Each green candle is clearly showing that the buyers are taking the price higher. 

But then there is a Doji, where the buyers have been unable to take the price higher like in the previous green candles, which signals that the sellers have come in action. Thus, prices have come down following this Doji.

A Doji can also sometimes be a neutral sign indicating pause or pullback in a trending market.

#9. Dragonfly Doji

A dragonfly doji looks like a ‘T’ sign. The dragonfly doji at the bottom of a downtrend could mean that price may gain strength in the near term. 

It indicates that the sellers tried to push the prices lower, but could not do so because of the buyers’ strength.

#10. Gravestone Doji

A gravestone dragonfly doji looks like an ‘inverted T’ sign. The gravestone doji at the top of an uptrend could mean that the price may weaken in the near term. 

It indicates that the buyers tried to push the prices upwards, but could not do so because of the sellers’ strength.

#11. Marubozu Candlestick Pattern

A marubozu is a full body candle with no upper or lower wick. The marubozu candle indicates strong buying or selling. 

If the marubozu is green, it means that there is strong buying as the prices have closed at the highest price of the particular time frame. 

If the marubozu is red, it means that there is strong selling as the prices have closed at the lowest price of the particular time frame.

Multiple Candlestick Patterns

Multiple candlestick patterns are studied by observing a series of candlesticks. Let’s now look at different types of multiple candlestick patterns.

#12. Bullish Engulfing

A Bullish engulfing candle is a big green candle that is preceded by a smaller red candle. The green candle should be longer than the red candle, completely engulfing it at both the upper and lower end. 

The candle opens lower than the closing price of the previous red candle but closes higher than the opening price of the previous red candle. The bullish engulfing candle can be a sign of a trend reversal when it appears at the bottom of a downtrend.

#13. Bearish Engulfing

A Bearish engulfing candle is a big red candle that is preceded by a smaller green candle. The red candle should be longer than the green candle, completely engulfing it at both the upper and lower end. 

The candle opens higher than the closing price of the previous green candle but closes lower than the opening price of the previous green candle.

The bearish engulfing candle can be a sign of a trend reversal when it appears at the top of an uptrend.

#14. Bullish Harami

A bullish harami is a small green candle appearing after a big red candle. The length of the body of the green candle is approx. 1/4th of the body of the preceding red candle. 

This pattern appearing after a downtrend can be a bullish sign.

#15. Bearish Harami

A bearish harami is a small red candle appearing after a big green candle. The length of the body of the red candle is approx. 1/4th of the body of the preceding green candle. 

This pattern appearing after an uptrend can be a bearish sign.

#16. Piercing Line

A piercing line is a bullish pattern appearing at the bottom of a downtrend. In this pattern, a green candle opens lower than the preceding red candle but closes above 50% of the length of the red candle.

The pattern is confirmed when the next candle after the piercing line is also green and makes a high above the piercing line candlestick.

#17. Dark Cloud Cover

This is a reversal formation, represented by three candles. In this pattern, a red candle is formed after three or more consecutive green candles. 

The pattern is confirmed when the next candle after the dark cloud cover is also red and fails to make a high above the dark cloud cover candlestick.

The dark cloud cover candle indicates that the buyers tried to take the prices higher (denoted by the higher opening price of the red candle) but sellers have gained control as they took the prices substantially below the opening price, thus forming the dark cloud cover candle.

#18. Morning Star

This is a 3-candle pattern which is an indicator of a trend reversal when it occurs after a downtrend. The first candle is a long red candle followed by a gap-down small green candle. The third candle is a gap-up long green candle.

The morning star indicates that the buyers have taken charge and hence, a possible bullish sign. 

#19. Evening Star

This is a 3-candle pattern which is an indicator of a trend reversal when it occurs after an uptrend. The first candle is a long green candle followed by a gap-up small red candle. The third candle is a gap-down long red candle.

The evening star indicates that the sellers have taken charge and hence, a possible bearish sign. 

#20. Bullish Abandoned Baby

This pattern is similar to the Morning Star pattern. The difference is that the second candle is a doji instead of a small green candle.

This type of pattern after a downtrend is a sign of trend reversal.

#21. Bearish Abandoned Baby

This pattern is similar to the Evening Star pattern. The difference is that the second candle is a doji instead of a small red candle.

This type of pattern after an uptrend is a sign of trend reversal.

#22. Three White Soldiers

This pattern indicates a reversal when it is formed after a downtrend. In this pattern, there are three consecutive green candles. 

Each candle’s opening price is higher than the previous candle’s closing price. Also, each candle’s closing price is higher than the previous candle’s closing price. 

This type of pattern is generally a strong indicator of a trend reversal because each red candle in this pattern is closing lower than the previous candle which indicates strong selling in the market. 

A good entry point to trade this pattern would be when the fourth candle after the three white soldiers appears to be closing in the green.

#23. Three Black Crows

This pattern indicates a reversal when it is formed after an uptrend. In this pattern, there are three consecutive red candles. 

Each candle’s opening price is lower than the previous candle’s opening price. Also, each candle’s closing price is lower than the previous candle’s closing price. 

This type of pattern is generally a strong indicator of a trend reversal because each red candle in this pattern is closing lower than the previous candle which indicates strong selling in the market. 

A good entry point to trade this pattern would be when the fourth candle after the three black rows appears to be closing in the red.

#24. Gap Up and Gap Down

When a new candle forms at a gap above the preceding candle, it indicates the strong bullish sentiment. It means that the buyers are willing to buy at a higher price than the last traded price and might be an indication that the stock will go up further.

Similarly, if it forms at a gap below the preceding candle, it indicates strong bearish sentiment indicating the possibility of further decline of prices. 

📌 Disclaimer: Forex trading carries a high risk of loss. Only invest what you can afford to lose, and ensure you understand the risks before trading.