You don't need to memorize 75 candlestick patterns. A handful of formations cover the vast majority of tradeable situations — and what separates traders who profit from them isn't knowledge, it's reps: having seen each pattern hundreds of times in real price action, including all the times it failed.
Each guide below shows the pattern with a diagram, explains the psychology behind it, gives concrete entry/stop/target rules, and covers the failure cases. Then the real work: open the free chart replay tool and practice spotting the pattern on historical charts, candle by candle, until recognition is automatic.
Candlestick patterns vs. chart patterns
- Candlestick patterns form in 1–3 candles (hammer, doji, engulfing, morning star) and signal short-term shifts in buying and selling pressure. They matter most at a level — support, resistance, or a moving average — not in the middle of nowhere.
- Chart patterns form over dozens of candles (head and shoulders, double top, triangles, flags) and describe the larger battle between buyers and sellers. They give you measurable targets and clearer invalidation levels.
The strongest trades usually combine both: a chart pattern for context, a candlestick pattern for the trigger, and a strategy with defined rules to manage the trade.
All patterns
Head & shoulders
The classic trend reversal — neckline rules, measured targets, and when it fails.
Hammer
Long lower wick, small body at the top — downside rejected. Rules and context.
Shooting star
Long upper wick after a rally — upside rejected. The bearish twin of the hammer.
Morning star
Sell-off, stall, strong reclaim — the three-candle reversal that marks real bottoms.
Inverted hammer
Upper wick after a decline — a bullish probe that needs next-candle confirmation.
Doji
Open ≈ close — a stalemate candle whose meaning depends entirely on where it prints.
Bullish engulfing
A green body swallowing the prior red candle — control flipped in one bar.
Double top
Two failed pushes at the same high — the "M" reversal, confirmed at the neckline.
Double bottom
Two defended lows and a neckline break — the W-shaped base that starts new uptrends.
Triangles
Ascending, descending, symmetrical — coiling ranges and how to trade their breaks.
Bull flag
Sharp pole, tight drifting flag, continuation break — the cleanest trend pattern.