37 Candlestick Patterns Dictionary

Introduction

In the candlestick patterns dictionary, 37 candlestick patterns have been discussed in each post. These patterns have a high winning ratio because we have added proper confluences to each candle to increase the probability of winning in trading.

Here in this post, you will get a short explanation of each candlestick.

What are candlesticks?

A candlestick consists of three main points: closing price, opening price, and wicks. Candlestick indicates the direction of price, either bullish or bearish, showing information about price action.

• Open price: opening price indicates the first traded price of a specific pair exchanged during that time
• Close price: closing price indicates the last traded price of a specific pair exchanged during that time.
• Wick: wick indicates the variation in price relative to a specific pair’s opening and closing price.

Types of candlestick patterns

Candlesticks patterns are categorized into two major types based on the direction of the trend.

• Bullish candlesticks patterns
• Bearish candlesticks patterns

These two patterns are further classified into trend reversal, trend continuation, and ranging market patterns.

List of top 37 candlestick patterns

Here is the list of all the 37 high probability candlestick patterns.

Candlestick Name	Forecast	Image
Pin bar candlestick	Buy/Sell
Engulfing candlestick	Buy/Sell
Inside bar candlestick	Buy/Sell
Morning doji star	Buy
Long legged doji	Buy/Sell
Three outside down	Sell
Bullish belt hold	Buy
Bullish piercing	Buy
Bearish belt hold	Sell
Rising window	Buy
Falling window	Sell
Tweezer top	Sell
Tweezer bottom	Buy
Dragonfly doji	Buy
Evening doji star	Sell
Rising three methods	Buy
Falling three methods	Sell
Bullish abandoned baby	Buy
Bearish abandoned baby	Sell
Bearish piercing	Sell
Three white soldiers	Buy
Three black crows	Sell
High wave	Buy/Sell
Three star in south	Buy
Deliberation	Sell
Bearish kicking	Sell
On neck candlestick	Sell
Upside Tasuki gap	Buy
Separating lines candlestick	Buy
Downside tasuki gap	Sell
Bearish breakaway	Sell
Bullish kicker	Buy
Bullish mat hold	Buy
Advance block	Sell
Matching high	Sell
Matching low candlestick	Buy
Tower bottom candlestick	Buy

Pin bar

A pin bar candlestick is a trend reversal candlestick pattern that has a small body with a long tail on the upper or lower side. The color of candlestick does not matter in pin bar candles.

it is further divided into two types

• Bullish pin bar: The long tail will form below the body of candlestick
• Bearish pin bar: The long tail will form above the body of candlestick

Engulfing

Engulfing candle refers to a candlestick that fully engulfs the previous candle. There are further two types of engulfing candles.

• Bullish engulfing
• Bearish engulfing

For better results in engulfing pattern, the body of the previous candlestick should be fully engulfed by the recent candlestick.

Inside bar

Inside bar refers to a candlestick pattern that consists of two candlesticks in which the most recent candlestick will form within the range of the previous candle.

It shows the indecision in the market. the market decides its direction by breaking the inside bar candle.

Morning Doji Star

Morning Doji Star is a three candlestick pattern that consists of a bearish candlestick, a Doji candle, and a bullish candlestick in a series. This is a bearish trend reversal candlestick pattern and a bullish candlestick. 

it consists of three candlesticks and it will form at the bottom of the price chart.

Long legged Doji

Long-legged Doji candlestick is a type of Doji candlestick that has a long lower and upper wick. All the Doji candlesticks have the same opening and closing price. The high and low make a difference between types of Doji.

Long-legged Doji represents indecision in the market.

Three Outside Down

Three outside down is a bearish candlestick pattern that consists of three candlesticks in a specific pattern indicating a bullish trend reversal. 

Engulfing candlestick acts as an outside bar and then a small candlestick making a lower low confirms that bullish trend has been changed into a bearish trend.

Bullish belt hold

Bullish belt hold is a candlestick pattern in which after three consecutive lower lows, a big bullish candlestick opens with a gap making a new lower low and then closing within the range of the previous candlestick. 

it is a trend reversal candlestick pattern.

Bullish Piercing

The bullish piercing pattern is a bullish trend reversal candlestick pattern that consists of two candlesticks and the recent candlestick closes above the 50% level of the previous candlestick.

A piercing pattern is a simple candlestick pattern that also resembles a bullish pin bar on a higher timeframe.

Bearish Belt Hold

Bearish belt hold is a trend reversal candlestick pattern that changes bullish price trend into the bearish price trend. After the formation of three bullish candlesticks, a long bearish candlestick forms at the top of the price chart resulting in a price trend reversal. 

it is the opposite pattern to the bullish belt hold.

Rising Window

The rising window is a candlestick pattern that consists of two bullish candlesticks with a gap between them. The gap is a space between the high and low of two candlesticks. it occurs due to high trading volatility. 

It is a trend continuation pattern

Falling Window

The falling window is a candlestick pattern that consists of two bearish candlesticks with a down gap between them. The down gap is a space between the high of the recent candlestick and the low of the previous candlestick.

it is a bearish continuation pattern.

Tweezer top

The tweezer top is a reversal candlestick pattern that consists of two opposite color candlesticks and the closing price of the first candlestick will be equal to the opening price of the second candlestick.

It is a reversal pattern that changes the price trend from bullish into bearish.

Tweezer Bottom

The tweezer bottom is a reversal candlestick pattern that consists of two opposite color candlesticks and the closing price of the first bearish candlestick will be equal to the opening price of the second bullish candlestick.

It is a bullish reversal candlestick pattern

Dragonfly Doji

Dragonfly Doji is a type of Doji candlestick that represents indecision in the market, and it turns the bearish price trend into a bullish trend.

The large wick size indicates the false breakout that results in a trend reversal.

Evening Doji Star

Evening Doji Star is a three-candlestick pattern made up of a bullish candlestick, a Doji candle, and a bearish candlestick in series. It is a bullish trend reversal candlestick pattern.

Rising Three Methods

Rising three methods is a trend continuation candlestick pattern that consists of five candlesticks on the price chart. It forms during trending market conditions and indicates that price will continue.

Rising three methods candlestick pattern helps a trader make critical trade management decisions like either holding a specific trade or closing that trade instantly.

Falling Three Method

Falling three methods is a trend continuation bearish candlestick pattern that consists of five candlesticks. It represents that the previous bearish trend will continue, decreasing the price.

It is not a trend reversal candlestick pattern.

Bullish Abandoned Baby

A bullish abandoned baby is a trend reversal candlestick pattern that consists of a bullish candlestick, a Doji with a gap down, and a bearish candlestick.

This candlestick pattern rarely forms on the price chart. Usually, you will see this pattern in the price chart of stocks and indices.

Bearish Abandoned Baby

A bearish abandoned baby is a trend reversal candlestick pattern made up of a bearish candlestick, a bullish candlestick, and a Doji. A gap forms before and after the Doji candlestick, and Doji candlestick forms between bearish and bullish candlestick.

More than one Doji candlesticks in an abandoned baby pattern can also form between bullish and bearish candlestick.

Bearish Piercing

The bearish piercing pattern is a bearish trend reversal candlestick pattern that consists of two opposite color candlesticks with a price gap in between them. In this pattern, the bearish candlestick will close below the 50% level of the previous bullish candlestick.

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Three White Soldiers

Three white soldiers is a bullish trend reversal candlestick pattern that consists of three bullish candlesticks making higher highs and high lows. These candlesticks form in series with small wicks and shadows representing a massive momentum of sellers.

The three black crows candlestick pattern is opposite to the three white soldiers’ pattern.

Three Black Crows

Three black crows is a bearish trend reversal candlestick pattern that consists of three big bearish candlesticks making lower lows and lower highs. 

Three black crows candlestick patterns should form at the top of the price uptrend to get a high winning rate. 

High Wave

The High wave pattern is a candlestick pattern with large wicks/shadows than the average size of candlestick. The body of the candlestick is tiny as compared to the shadows.

It is like a spinning top or long-legged Doji candlestick.

Three Stars in the South

The Three Stars in the south is a bullish reversal candlestick pattern made up of three bearish candlesticks. In this candlestick pattern, each candlestick forms within the range of the previous candlestick.

The structure of this pattern also relates to the inside bar candlestick pattern,

Deliberation

Deliberation Candlestick pattern is a trend reversal candlestick pattern made of three consecutive bullish candlesticks in a proper sequence. This candlestick pattern is also known as stalled candlestick pattern.

Bearish Kicking

Bearish kicking is a price trend reversal candlestick pattern consisting of two opposite-colored marubozu candlesticks with a gap between them. It will mostly form at the top of the price chart or Resistance/supply level.

The bearish kicking candle is used to forecast an upcoming bearish trend in the market.

On Neck

The On-neck pattern is a candlestick pattern in which after a long bearish candlestick, a small candlestick will with a gap down, and it will close near the opening price of the previous big bearish candlestick.

It is a bearish trend continuation candlestick pattern

Upside Tasuki Gap

The upside Tasuki gap is a bullish trend continuation pattern that consists of three candlesticks and an upside gap. 

This candlestick pattern tells retail traders that the market’s bullish trend will continue, and buyers are in control.

Separating Lines

The separating lines candlestick is a trend continuation pattern consisting of two opposite-colored candlesticks. The closing of the first candlestick will be equal to the opening price of the second candlestick.

It indicates that the previous trend will continue.

Downside Tasuki Gap

The Downside Tasuki gap is a continuation candlestick pattern that consists of three candlesticks with a downside gap. The downside gap will form within two bearish candlesticks.

It is a bearish trend continuation pattern representing the seller is in control.

Bearish Breakaway

Bearish breakaway is a bearish reversal candlestick pattern that consists of five candlesticks and a gap zone. After forming this candlestick pattern, a bullish trend will turn into a bearish price trend.

Bullish Kicker

Bullish kicker candlestick is a bullish trend reversal candlestick pattern consisting of two opposite-colored candlesticks with a gap between them. It will turn the bearish trend into a bullish price trend.

Bullish mat hold

Bullish mat hold is a trend continuation candlestick pattern consisting of five candles and a gap. It shows that the previous trend will continue.

Bullish mat hold pattern primarily forms in stocks and indices.

Advance Block

The advance block is a bearish reversal candlestick pattern that consists of three bullish candlesticks. It will turn the bullish price trend into a bearish trend. That’s why it will form at the top of the uptrend.

It is a single pattern that does not have an opposite pattern (bullish reversal) due to rare occurrences on the price chart.

Matching High

Matching high is a bearish reversal candlestick pattern consisting of two bullish candlesticks with the same high and no shadows on the upper side.

The second candlestick opens with a gap down in this pattern.

Matching Low

Matching low is a bullish trend reversal candlestick pattern that consists of two bearish candlesticks with the same closing price and no shadows on the lower side of candlesticks.

Tower Bottom

Tower bottom is a bullish trend reversal candlestick pattern of two opposite-color big candlesticks and three to five small base candlesticks.

Conclusion

The candlestick patterns are widely used by retail traders in technical analysis. These patterns were introduced by steve nison.

I will highly recommend using these candlestick patterns as a confluence with other technical tools for profitable results.

Remember to backtest a single pattern at least 50 times to become a Pro trader.