Japanese Candlestick Patterns
Master 70+ candlestick patterns with free interactive animations and comprehensive market psychology education. Learn single, double, triple, and complex candlestick formations with professional analysis principles — completely free.
Candlestick Foundations
Master the core concepts and professional analysis techniques that every trader needs — from basic anatomy to advanced psychological interpretation.
Candlestick Anatomy & Formation
Every candlestick is built from four data points: the high (highest price reached during the session), the low (lowest price reached), the open (first price traded when the session began), and the close (last price traded when the session ended). The body is the thick rectangle showing the open-to-close range — larger bodies indicate stronger conviction and momentum. The wicks are thin lines extending from the body to session highs and lows, revealing price levels that were tested but rejected by the market.
Color Psychology & Market Signals
Green (bullish) candles form when the close is above the open, signaling buyer confidence and optimism. They trigger positive psychological responses associated with success, growth, and profit, encouraging more buying behavior. Red (bearish) candles form when the close is below the open, signaling seller fear and panic. They trigger negative psychological responses associated with danger, loss, and urgency, encouraging selling behavior and market pessimism.
Reading Market Sentiment
Candlestick patterns reveal the emotions driving market behavior. A large body indicates strong conviction — reasonable to extreme confidence in direction. A small body signals indecision, where neither buyers nor sellers have control. Long wicks show price rejection — levels that were tested but defended by the opposing side. Understanding how emotional intensity creates distinct candlestick formations is the foundation of reading market sentiment.
Professional Timeframe Analysis
Professionals analyze markets across multiple time horizons. Weekly and monthly charts provide strategic context for portfolio management and long-term trend identification. Daily charts are the optimal timeframe for pattern analysis and systematic trading strategies. The 4-hour and 1-hour charts refine entry timing and confirm daily setups. The 15-minute and 5-minute charts are tactical but dominated by algorithmic noise. The 1-minute chart is ultra-short term, primarily used for scalping and high-frequency analysis requiring specialized skills.
Professional Analysis Principles
Six laws of professional analysis guide consistent trading. Law 1: Context is king — never analyze patterns against the major trend direction. Law 2: Volume confirmation — higher volume increases pattern reliability through institutional participation. Law 3: Risk management first — position sizing and stop placement are integral to analysis. Law 4: Multiple confirmations — combine candlestick analysis with support/resistance, trend analysis, and market structure. Law 5: Timeframe hierarchy — higher timeframes override lower timeframes. Law 6: Pattern psychology understanding — every pattern represents human emotions, and understanding why patterns form improves timing and confidence.
Single Candle Patterns
Master the 12 essential single-candle patterns that form the foundation of all candlestick analysis. These are the building blocks of technical pattern recognition.
Hammer Candlestick Pattern
The hammer is a bullish reversal pattern found at downtrend bottoms. It features a long lower shadow with a small body at the top. The psychology behind it: bears pushed price lower but bulls defended strongly, showing rejection of lower prices. The long lower shadow at a downtrend bottom signals potential reversal and bullish support.
Hanging Man Candlestick Pattern
The hanging man is a bearish reversal pattern found at uptrend tops. It features a long lower shadow at resistance, similar in shape to the hammer but appearing after an uptrend. The psychology: overconfidence met with hidden selling. Bulls pushed lower but bears stepped in at the close, warning of potential reversal.
Inverted Hammer Pattern
The inverted hammer is a bullish reversal pattern at downtrend bottoms. It features a long upper shadow with a small body at the bottom. The upper wick indicates bulls tested higher prices but need confirmation for a full reversal. It shows buying interest emerging after a decline.
Shooting Star Pattern
The shooting star is a bearish reversal pattern at uptrend tops. It features a long upper shadow at resistance with a small body at the bottom. Bears rejected higher prices effectively, signaling strong rejection. This is one of the most recognizable single-candle reversal patterns.
Bullish Marubozu Pattern
The bullish marubozu is a strong bullish pattern that appears in any trend. It has no shadows — the open equals the low and the close equals the high. This shows complete bull control with strong buying throughout the entire session and no selling pressure. It represents maximum buyer conviction.
Bearish Marubozu Pattern
The bearish marubozu is a strong bearish pattern that appears in any trend. It has no shadows — the open equals the high and the close equals the low. This shows complete bear control with strong selling throughout the entire session and no buying support. It represents maximum seller conviction.
Dragonfly Doji Pattern
The dragonfly doji is a bullish reversal pattern at downtrend bottoms. It has a long lower shadow with the open and close at the high. This formation suggests strong rejection of lower prices and potential bullish reversal, as sellers pushed price down but buyers drove it all the way back to the opening level.
Gravestone Doji Pattern
The gravestone doji is a bearish reversal pattern at uptrend tops. It has a long upper shadow with the open and close at or near the low. This formation suggests strong rejection of higher prices and potential bearish reversal, as buyers pushed price up but sellers drove it all the way back down.
Doji Candlestick Pattern
The doji is an indecision pattern best found at trend extremes. The open and close are virtually equal, representing a standoff between buyers and sellers. It can signal a potential reversal when appearing after strong trends. The doji is one of the most important candles in technical analysis because it marks moments of market uncertainty.
Spinning Top Pattern
The spinning top is an indecision pattern found during consolidation. It has a small real body with long upper and lower shadows, indicating indecision between buyers and sellers with high volatility. Neither side was able to maintain control during the session despite significant price movement in both directions.
Long-Legged Doji Pattern
The long-legged doji signals high indecision at major turning points. It has very long upper and lower shadows with the open and close at the same level, indicating extreme indecision and high volatility. The exaggerated wicks show both buyers and sellers made strong moves but neither could hold ground.
High Wave Candle Pattern
The high wave candle signals extreme volatility during major events. It has extremely long shadows and a small body, indicating extreme market uncertainty with a slight directional bias. This pattern often appears around major news events, earnings releases, or economic data where sentiment swings violently.
Double Candle Patterns
Learn powerful two-candle reversal patterns that provide high probability trading setups with clear entry and exit points.
Bullish Engulfing Pattern
The bullish engulfing is a major bullish reversal pattern at downtrend bottoms. A large bullish candle completely engulfs the previous bearish candle. This is one of the strongest reversal signals, showing bulls have overwhelmed bears at a support level. It requires the second candle's body to fully cover the first candle's body.
Piercing Line Pattern
The piercing line is a bullish reversal pattern at downtrend bottoms. A bullish candle penetrates more than 50% into the previous bearish body. This is a strong reversal signal when bulls recover from a gap down opening, showing buyers stepped in aggressively to reclaim lost ground.
Dark Cloud Cover Pattern
The dark cloud cover is a bearish reversal pattern at uptrend tops. A bearish candle penetrates more than 50% into the previous bullish body. This is a strong reversal signal when bears sell from a gap up opening, showing sellers stepped in aggressively to push price back down.
Tweezer Bottoms Pattern
Tweezer bottoms are a bullish reversal pattern at key support levels. Two candles form with identical or very similar lows, showing strong support where bears failed to break lower. The matching lows confirm that a specific price level is being actively defended by buyers.
Tweezer Tops Pattern
Tweezer tops are a bearish reversal pattern at key resistance levels. Two candles form with identical or very similar highs, showing strong resistance where bulls failed to break higher. The matching highs confirm that a specific price level is being actively defended by sellers.
Triple Candle Patterns
Master complex three-candle formations used by institutions for major position changes. These patterns offer some of the highest reliability in candlestick analysis.
Morning Star Pattern
The morning star is a major bullish reversal pattern at downtrend bottoms. It is a three-candle pattern: bearish candle, small star candle, then a strong bullish candle. It is one of the most reliable bullish reversal patterns in technical analysis. The small middle candle represents the moment of indecision before buyers take control.
Evening Star Pattern
The evening star is a major bearish reversal pattern at uptrend tops. It is a three-candle pattern: bullish candle, small star candle, then a strong bearish candle. It is one of the most reliable bearish reversal patterns in technical analysis. The small middle candle represents the moment of indecision before sellers take control.
Three White Soldiers Pattern
Three white soldiers is a bullish continuation pattern in early uptrends. Three consecutive advancing bullish candles form where each opens within the previous body and closes higher, showing strong bullish momentum. This pattern indicates sustained buying pressure and institutional accumulation.
Three Black Crows Pattern
Three black crows is a bearish continuation pattern in early downtrends. Three consecutive declining bearish candles form where each opens within the previous body and closes lower, showing strong bearish momentum. This pattern indicates sustained selling pressure and institutional distribution.
Abandoned Baby Bottom Pattern
The abandoned baby bottom is a rare bullish reversal pattern in strong downtrends. The three-candle formation consists of a bearish candle, a gapped doji, then a gapped bullish candle. The doji gaps away from both surrounding candles, showing complete abandonment of the prior trend. This is one of the rarest and most powerful reversal signals.
Abandoned Baby Top Pattern
The abandoned baby top is a rare bearish reversal pattern in strong uptrends. The three-candle formation consists of a bullish candle, a gapped doji, then a gapped bearish candle. The doji gaps away from both surrounding candles, showing complete abandonment of the prior trend. Extremely rare and highly reliable.
Complex Multi-Candle Patterns
Advanced patterns including continuation and reversal formations used by professional traders for identifying trend strength and exhaustion.
Rising Three Methods Pattern
Rising three methods is a bullish continuation pattern in established uptrends. The formation consists of a long bullish candle, three small bearish candles, then another long bullish candle. The small bearish corrections stay within the first bullish candle's range before a strong continuation, confirming the uptrend remains intact.
Falling Three Methods Pattern
Falling three methods is a bearish continuation pattern in established downtrends. The formation consists of a long bearish candle, three small bullish candles, then another long bearish candle. The small bullish corrections stay within the first bearish candle's range before a strong continuation, confirming the downtrend remains intact.
Three Line Strike Pattern
The three line strike is a powerful reversal pattern at trend exhaustion. It consists of three consecutive candles in one direction followed by an opposite engulfing candle. The final candle completely engulfs all three previous candles, showing powerful reversal momentum. This pattern signals that the trend has exhausted itself.
Harami Cross Pattern
The harami cross signals momentum exhaustion after strong moves. It consists of a large trending candle followed by an inside doji. The doji forming within the previous candle's range shows that momentum has stalled and a potential reversal is developing. It is a strong warning sign that the current move is losing steam.
Candlestick Psychology Laboratory
Understanding the human mind behind every candlestick — the deepest educational journey into market psychology and why patterns repeat across centuries of trading history.
The Science of Market Emotions
Studies show that successful pattern recognition activates the same neural pathways as facial recognition, explaining why experienced traders can instantly identify patterns with high accuracy. When traders see bullish patterns, dopamine levels spike before the trade is even executed, creating pattern recognition habits. Bearish patterns trigger stress responses within seconds of recognition, and chronic exposure can rewire emotional responses, making traders prone to premature exits.
Evolutionary Market Behavior
Hammer patterns trigger the same neural response as finding safety after danger — the relief rally response. Shooting stars activate threat-detection circuits, creating immediate defensive responses. Engulfing patterns activate ancient migration instincts — the compulsion to follow the crowd when direction changes dramatically. Loss aversion behind doji formations stems from evolutionary wiring where our ancestors who felt loss more painfully survived famines.
Why Understanding Candlestick Psychology Changes Everything
Understanding the psychology behind candlestick patterns transforms you from a pattern-spotter into a human behavior analyst. Every candlestick tells a story about thousands of traders' hopes, fears, and decisions compressed into visual form. While technology changes how fast markets move, human psychology remains constant. Fear, greed, hope, and despair create the same visual patterns today that they did centuries ago in Japanese rice markets. When you understand WHY patterns form, you develop an intuitive understanding that goes beyond memorizing pattern names.
Complete Candlestick Quick Reference
70+ candlestick patterns organized for rapid lookup and identification — covering basic formations, single candle patterns, double candle patterns, triple candle patterns, complex patterns, rare and specialized patterns, and gap and window patterns.
Essential Trading Rules
Context is king — never ignore trend direction. Volume matters — higher volume means higher reliability. Risk management — never risk more than 1-2% per trade. Confirmation — always wait for follow-through. Timeframes — higher timeframes are more reliable. Psychology — understand the emotions behind every pattern.
Single Candle Pattern Reference
18 single candle patterns including hammer, hanging man, inverted hammer, shooting star, bullish marubozu, bearish marubozu, doji, dragonfly doji, gravestone doji, spinning top, long-legged doji, high wave candle, rickshaw man, four price doji, belt hold bullish, belt hold bearish, closing marubozu bull, and opening marubozu bear.
Double Candle Pattern Reference
12 double candle patterns including bullish engulfing, bearish engulfing, piercing line, dark cloud cover, tweezer bottoms, tweezer tops, bullish harami, bearish harami, kicking bullish, kicking bearish, doji star bullish, and doji star bearish.
Triple Candle Pattern Reference
10 triple candle patterns including morning star, evening star, three white soldiers, three black crows, abandoned baby bottom, abandoned baby top, three inside up, three inside down, three outside up, and three outside down.
Complex Pattern Reference
9 complex patterns including rising three methods, falling three methods, three line strike, harami cross, three line strike bull, three line strike bear, stick sandwich, meeting lines bull, and meeting lines bear.
Rare and Specialized Pattern Reference
12 rare patterns including ladder bottom, ladder top, concealing baby swallow, unique three river, three stars in south, advance block, deliberation, two crows, upside gap two crows, side by side white, upside tasuki gap, and downside tasuki gap.
Gap and Window Pattern Reference
6 gap patterns including rising window, falling window, breakaway gap bull, breakaway gap bear, runaway gap bull, and exhaustion gap bear. Gap patterns are continuation and reversal signals based on unfilled price gaps between sessions.
Frequently Asked Questions About Candlestick Patterns
What are Japanese candlestick patterns?
Japanese candlestick patterns are visual representations of price movement during a specific time period. Each candlestick shows four data points — the open, high, low, and close — forming a body and wicks that reveal the battle between buyers and sellers. Originally developed in 18th century Japanese rice markets, these patterns remain one of the most widely used forms of technical analysis today. This free module covers over 70 patterns across six categories.
How do you read a candlestick chart?
Each candlestick has a body (the rectangle between open and close) and wicks (the thin lines extending to the high and low). A green or white candle means the close was above the open (bullish). A red or black candle means the close was below the open (bearish). Large bodies indicate strong conviction, small bodies signal indecision, and long wicks show price rejection at those levels. Reading patterns in the context of the overall trend is the most important principle.
What is the most reliable candlestick pattern?
The morning star and evening star are widely considered among the most reliable candlestick reversal patterns. These three-candle formations show a clear shift from one trend direction to another through an indecision phase. Engulfing patterns (both bullish and bearish) are also highly reliable, especially when they appear at key support or resistance levels with above-average volume.
What is a hammer candlestick?
A hammer is a bullish reversal candlestick that forms at the bottom of a downtrend. It has a small body at the top of the candle and a long lower shadow (at least twice the body length). The long lower wick shows that sellers pushed price significantly lower during the session, but buyers stepped in and drove the price back up near the open. It signals that selling pressure is exhausting and a reversal may follow.
What is a doji candlestick?
A doji candlestick forms when the open and close are virtually equal, creating a cross or plus-sign shape. It represents complete indecision between buyers and sellers. A doji is most significant when it appears after a strong trend, where it can signal that momentum is exhausting and a reversal may be developing. There are several variations including the dragonfly doji, gravestone doji, and long-legged doji, each with different implications.
What is a bullish engulfing pattern?
A bullish engulfing pattern is a two-candle reversal formation where a large bullish (green) candle completely engulfs the body of the previous bearish (red) candle. It appears at downtrend bottoms and signals that buyers have overwhelmed sellers. It is one of the strongest two-candle reversal signals in technical analysis, especially when it forms at key support levels with increased volume.
What is the difference between a hammer and a hanging man?
The hammer and hanging man have identical shapes — a small body at the top with a long lower shadow. The difference is context. A hammer appears at the bottom of a downtrend and signals a bullish reversal. A hanging man appears at the top of an uptrend and signals a bearish reversal. The same candle shape carries opposite meaning depending on where it forms in the trend.
What is a morning star pattern?
The morning star is a three-candle bullish reversal pattern. The first candle is a large bearish candle continuing the downtrend. The second is a small-bodied candle (the star) showing indecision. The third is a large bullish candle that closes well into the first candle's body. It signals that sellers have lost control, a pause occurred, and buyers have taken over — one of the most reliable reversal patterns in candlestick analysis.
What is a shooting star candlestick?
A shooting star is a bearish reversal candlestick that forms at the top of an uptrend. It has a small body at the bottom of the candle with a long upper shadow (at least twice the body length). The long upper wick shows buyers pushed price higher but sellers drove it all the way back down by the close, signaling strong rejection of higher prices and a potential reversal.
How many candlestick patterns are there?
There are over 70 recognized candlestick patterns in technical analysis. These are organized into basic formations, single candle patterns (18), double candle patterns (12), triple candle patterns (10), complex multi-candle patterns (9), rare and specialized patterns (12), and gap and window patterns (6). This free module covers all major categories with explanations of the market psychology behind each formation.
What timeframe is best for candlestick patterns?
Daily charts are considered the optimal timeframe for candlestick pattern analysis by most professional traders. Weekly and monthly charts provide strategic context and higher reliability. The 4-hour and 1-hour charts are useful for refining entries. Lower timeframes like 15-minute, 5-minute, and 1-minute are dominated by algorithmic noise and are less reliable for pattern-based trading. The general rule is that higher timeframes produce more reliable signals.
Do candlestick patterns actually work?
Candlestick patterns work because they visualize human psychology — fear, greed, indecision, and conviction — which remains constant across markets and time periods. They are most effective when combined with other analysis: trend direction, support and resistance, volume confirmation, and multiple timeframe analysis. No single pattern guarantees a trade outcome, but patterns used with proper context and risk management provide a statistical edge over time.
What is confluence in candlestick analysis?
Confluence in candlestick analysis means multiple signals agreeing at the same time or price level. For example, a bullish engulfing pattern forming at a key support level with above-average volume and in the direction of the higher timeframe trend. The more confirmations that align, the higher the probability of the pattern producing a successful trade. Professional traders prioritize setups with three or more confluent signals.
What are three white soldiers and three black crows?
Three white soldiers is a bullish continuation pattern consisting of three consecutive advancing bullish candles, each opening within the previous body and closing higher. Three black crows is the bearish counterpart — three consecutive declining bearish candles, each opening within the previous body and closing lower. Both patterns signal strong directional momentum and institutional participation.
Are these candlestick pattern lessons free?
Yes, this entire candlestick patterns module is completely free. It covers over 70 patterns with interactive animations, market psychology education, professional analysis principles, and a complete visual pattern reference library. There are no premium tiers, no hidden costs, and no paywalls. The module was built by TradeSafeAI to give every trader access to professional-level candlestick education at no cost.