81+ Candlestick Patterns Explained, Backtested & Ranked (2022)

I analyzed over seven hundred million Japanese candlestick pattern trades in the crypto, forex, and stock market spanning multiple decades to determine what works and doesn’t.

Isn’t data science cool?

If you’re a trader struggling to make money with candlestick patterns or if you’re just interested in learning about this ancient Japanese art, you’ve found the holy grail.

I believe it’s 100x better than anything else out there. I hope you agree and enjoy learning about these candlestick patterns as much as I enjoy profiting from them.

Let me know in the comments below if you enjoy this article or have any suggestions for improvement. You can also run your own analysis as I’ve listed the summary backtest results on Github.

What Are Candlestick Patterns?

Candlestick patterns are a technical analysis tool that many traders use to understand past market moves and to profit from future price action. Candlestick charts are aptly named because when the price is grouped into periods, such as a day or an hour, it forms a candle shape. 

Each period has an opening or starting price, a high, a low, and a closing price, as seen in the image below.

Open High Low Close Candlestick Chart Illustration

Homma Munehisa, the inventor of candlestick patterns, became an extremely wealthy rice merchant using candlestick patterns. If you’re interested, you can learn why many pattern names have war-like references by checking out the long history of technical analysis.

But let’s slice through the pleasantries and get right to business. What are the most successful candlestick patterns according to history?

What Are The Best Performing Candlestick Patterns?

As you’ll find out, different candlestick patterns work in different markets. Additionally, some of the candlestick patterns occur infrequently, leading to statistically insignificant returns.

So instead, feel free to use the interactive table below to analyze what patterns work best for the market you’re trading.

Each row contains the optimum trading strategy and setup for the pattern. The trading strategies fall into the following categories:

  • Bullish Continuation
  • Bearish Continuation
  • Bullish Reversal
  • Bearish Reversal
  • Bullish Mean Reversion
  • Bearish Mean Reversion

The setup determines your buy and entry points, such as buying on the break of the close or high.

But don’t worry; you can click on each row to get the backtest results and click the details URL where I lay out how to trade every strategy and setup.

What Are the Different Candlestick Patterns?

Here you will see all the candlestick patterns explained with examples. There are 86 Japanese candlestick patterns. I’ve listed them below in alphabetical order.

Advance Block

The advance block candlestick pattern is a three-bar bearish reversal pattern that’s best traded as a bearish reversal in the forex market and a bullish mean reversion in the crypto and stock markets.

Advance Block Identification

Advance Block Candlestick Pattern Illustration © Analyzing Alpha
Advance Block Candlestick Pattern Illustration
  • Three consecutive bullish bars closing consecutively higher.
  • Each bar opens within or near the real body of the previous bar.
  • The first bar of the pattern must have a long body with little to no wick.
  • The second and third candles must have progressively smaller bodies with longer upper wicks.
  • The advance block must occur during an uptrend.

Advance Block Example

Advance Block Candlestick Pattern on the Tesla (TSLA) February 26th, 2018 daily chart
Advance Block Candlestick Pattern on the Tesla (TSLA) daily chart occurring February 26th, 2018.

Bearish Abandoned Baby

The bearish abandoned baby candlestick pattern is a three-bar bearish reversal pattern that’s best traded as advertised.

Bearish Abandoned Baby Identification

Bearish Abandoned Baby Candlestick Pattern Illustration © Analyzing Alpha
Bearish Abandoned Baby Candlestick Pattern Illustration
  • The first candlestick must have a long bullish body.
  • The second candle must be a doji.
  • The third candle must be bearish with a real body that moves well within the first candle’s body.
  • There must be a downside gap where the wicks of the second and third bars don’t touch.
  • The bearish abandoned baby must occur during an uptrend.

Bearish Abandoned Baby Example

Bearish Abandoned Baby Candlestick Pattern on the AstraZeneca (AZN) August 19th, 2015 daily chart
Bearish Abandoned Baby Candlestick Pattern on the AstraZeneca (AZN) August 19th, 2015 daily chart

Bearish Belt Hold

The bearish belt hold is a one-bar bearish reversal pattern that’s best traded as a bullish continuation in the crypto and forex markets and as a bullish mean reversion in the stock market.

Bearish Belt Hold Identification

Bearish Belt Hold Candlestick Pattern Illustration © Analyzing Alpha
Bearish Belt Hold Candlestick Pattern Illustration
  • The candle must be bearish with a long real body.
  • There must be little to no upper shadow.
  • The bearish belt hold must occur in an uptrend.

Bearish Belt Hold Example

Bearish Belt Hold Candlestick Pattern on the Apple (AAPL) July 27th, 2021 daily chart
Bearish Belt Hold Candlestick Pattern on the Apple (AAPL) July 27th, 2021 daily chart

Bearish Breakaway

The bearish breakaway is a five-bar bearish reversal pattern that’s likely best traded using bearish mean reversion trading strategies.

Bearish Breakaway Identification

Bearish Breakaway Candlestick Pattern © Analyzing Alpha
Bearish Breakaway Candlestick Pattern
  • The first candle is a long bullish candle.
  • The second candle gaps up and is bullish.
  • The third candle has a higher low and higher high than the previous candle.
  • The fourth candle is bullish and has a higher low and higher high than the prior candle.
  • The fifth candle closes the gap and is bearish.
  • The bearish breakaway must occur in an uptrend.

Bearish Breakaway Example

Bearish Breakaway Candlestick Pattern on the Air Lease Corporation (AL) March 31st, 2021 daily chart
Bearish Breakaway Candlestick Pattern on the Air Lease Corporation (AL) March 31st, 2021 daily chart

Bearish Closing Marubozu

The bearish closing marubozu candlestick pattern is a one-bar bearish continuation that is best traded as a bullish reversal across the crypto, forex and stock markets.

Bearish Closing Marubozu Identification

Bearish Closing Marubozu Candlestick Pattern Illustration © Analyzing Alpha
Bearish Closing Marubozu Candlestick Pattern Illustration
  • The candle must be bearish with a long real body.
  • There must be little to no lower shadow.
  • The bearish closing marubozu doesn’t require a trend.

Bearish Closing Marubozu Example

Bearish Closing Marubozu Candlestick Pattern on the Apple (AAPL) December 13th, 2021 daily chart
Bearish Closing Marubozu Candlestick Pattern on the Apple (AAPL) December 13th, 2021 daily chart

Bearish Counterattack Lines

The bearish counterattack lines is a two-bar bearish reversal pattern that’s best traded as intended in the forex market and as a bullish continuation in the crypto and stock markets.

Bearish Counterattack Lines Identification

Bearish Counterattack Candlestick Pattern Illustration © Analyzing Alpha
Bearish Counterattack Candlestick Pattern Illustration
  • The first candle must be white with a long body.
  • The second candle is bearish and must close near the first candle’s close.
  • The bearish counterattack lines must occur during an uptrend.

Bearish Counterattack Lines Example

Bearish Counterattack Candlestick Pattern on the Aehr Test System (AEHR) March 27th, 2007 daily chart
Bearish Counterattack Candlestick Pattern on the Aehr Test System (AEHR) March 27th, 2007 daily chart

Bearish Doji Star

The bearish doji star is a two-bar bearish reversal pattern that’s best traded using a bullish mean reversion strategy in all markets.

Bearish Doji Star Identification

Bearish Doji Star Candlestick Pattern Illustration © Analyzing Alpha
Bearish Doji Star Candlestick Pattern Illustration
  • The first candle must have a long white real body.
  • The second candle is a doji that gaps up.
  • The bearish dojo star pattern must occur during an uptrend.

Bearish Doji Star Example

Bearish Doji Star Candlestick Pattern on the TransDigm (TDG) September 27th, 2021 daily chart
Bearish Doji Star Candlestick Pattern on the TransDigm (TDG) September 27th, 2021 daily chart

Bearish Engulfing

The bearish engulfing is a two-bar bearish reversal pattern that’s best traded using a bullish mean reversion strategy in the crypto and stock markets and a bearish mean reversion strategy in the forex markets.

Bearish Engulfing Identification

Bearish Engulfing Candlestick Pattern Illustration ©Analyzing Alpha
Bearish Engulfing Candlestick Pattern Illustration
  • The first candle must have a long white real body.
  • The second candle is bearish, engulfing the previous candle.
  • The bearish engulfing pattern must occur during an uptrend.

Bearish Engulfing Example

Bearish Engulfing Candlestick Pattern on the Danaher (DHR) November 30th, 2021 daily chart
Bearish Engulfing Candlestick Pattern on the Danaher (DHR) November 30th, 2021 daily chart

Bearish Harami

The bearish harami is a two-bar bearish reversal pattern that’s best traded using a bullish mean reversion strategy in the crypto and stock markets and a bearish mean reversion strategy in the forex markets.

Bearish Harami Identification

Bearish Harami Candlestick Pattern Illustration © Analyzing Alpha
Bearish Harami Candlestick Pattern Illustration
  • The first candle must have a long white real body.
  • The second candle is bearish, engulfing the previous candlestick.
  • The bearish harami pattern must occur during an uptrend.

Bearish Harami Example

Bearish Harami Candlestick Pattern on the Apple (AAPL) December 28th, 2021 daily chart
Bearish Harami Candlestick Pattern on the Apple (AAPL) December 28th, 2021 daily chart

Bearish Harami Cross

The bearish harami cross, like the above bearish harami, is a two-bar bearish reversal pattern that’s best traded using a bullish mean reversion strategy in the crypto and stock markets and a bearish mean reversion strategy in the forex markets.

Bearish Harami Cross Identification

Bearish Harami Cross Candlestick Pattern Illustration © Analyzing Alpha
Bearish Harami Cross Candlestick Pattern Illustration
  • The first candle must have a long white real body.
  • The second candle is a doji, engulfing the previous candlestick.
  • The bearish harami cross pattern must occur during an uptrend.

Bearish Harami Cross Example

Bearish Harami Cross Candlestick Pattern on the Brookfield Asset Management (BAM) August 2nd, 2019 daily chart
Bearish Harami Cross Candlestick Pattern on the Brookfield Asset Management (BAM) August 2nd, 2019 daily chart

Bearish High Wave

The bearish high wave is a one-bar indecision pattern that’s best traded using bullish mean reversion strategies in the crypto and stock markets and a bearish mean reversion strategy in the forex markets.

Bearish High Wave Cross Identification

Bearish High Wave Candlestick Pattern Illustration © Analyzing Alpha
Bearish High Wave Candlestick Pattern Illustration
  • A single candle with a small bearish body with long upper and lower shadows (at least 3x the body size)

Bearish High Wave Example

Bearish High Wave Candlestick Pattern on the AEHR Test Systems (AEHR) December 8th, 2021 daily chart
Bearish High Wave Candlestick Pattern on the AEHR Test Systems (AEHR) December 8th, 2021 daily chart

Bearish Kicking

The bearish kicking is a two-bar bearish reversal pattern that’s best traded using a bullish mean reversion strategy in the stock markets. This pattern seldom occurs in the crypto and forex markets.

Bearish Kicking Identification

Bearish Kicking Candlestick Pattern Illustration © Analyzing Alpha
Bearish Kicking Candlestick Pattern Illustration
  • The first candle must be a white marubozu.
  • The second candle must gap down and be a black marubozu.

Bearish Kicking Example

Bearish Kicking Candlestick Pattern Identification on the Carver Bancorp (CARV) February 23rd, 2005 daily chart
Bearish Kicking Candlestick Pattern Identification on the Carver Bancorp (CARV) February 23rd, 2005 daily chart

Bearish Long Line

The bearish long line is a one-bar bearish reversal pattern that’s best traded using a bullish continuation strategy in the crypto and stock markets and as intended in the forex markets.

Bearish Long Line Identification

Bearish Long Line Candlestick Pattern Illustration © Analyzing Alpha
Bearish Long Line Candlestick Pattern Illustration
  • The candle must have a long bearish body with short upper and lower wicks.

Bearish Long Line Example

Bearish Long Line Candlestick Pattern on the Tesla (TSLA) May 10th, 2021 daily chart.
Bearish Long Line Candlestick Pattern on the Tesla (TSLA) May 10th, 2021 daily chart.

Bearish Marubozu

The bearish marubozu is a one-bar bearish reversal pattern that’s best traded using a bullish continuation strategy in all markets.

Bearish Marubozu Identification

Bearish Marubozu Candlestick Pattern Illustration © Analyzing Alpha
Bearish Marubozu Candlestick Pattern Illustration
  • The candle must have a long bearish body with little to no upper and lower wicks.

Bearish Marubozu Example

Bearish Marubozu Candlestick Pattern Identification on the Apple (AAPL) March 2nd, 2021 daily chart
Bearish Marubozu Candlestick Pattern Identification on the Apple (AAPL) March 2nd, 2021 daily chart

Bearish Separating Lines

The bearish separating lines is a two-bar bearish continuation pattern that’s best traded using a bullish mean reversion strategy in the crypto and stock markets and a bearish mean reversion in forex markets.

Bearish Separating Lines Identification

Bearish Separating Lines Candlestick Pattern Illustration © Analyzing Alpha
Bearish Separating Lines Candlestick Pattern Illustration
  • The first candle must be white.
  • The second candle must be black with the same opening as the previous candle.
  • The bearish separating lines must occur in a downtrend.

Bearish Separating Lines Example

Bearish Separating Lines Candlestick Pattern on the TransDigm (TDG) April 13th, 2020 daily chart
Bearish Separating Lines Candlestick Pattern on the TransDigm (TDG) April 13th, 2020 daily chart

Bearish Short Line

The bearish short line is a one-bar indecision candlestick pattern that’s best traded using a bullish bounce strategy in all markets.

Bearish Short Line Identification

Bearish Short Line Candlestick Pattern Illustration © Analyzing Alpha
Bearish Short Line Candlestick Pattern Illustration
  • The candle must be bearish with a short real body and small upper and lower shadows.

Bearish Short Line Example

Bearish Short Line Candlestick Pattern on the Apple (AAPL) October 27th, 2021 daily chart
Bearish Short Line Candlestick Pattern on the Apple (AAPL) October 27th, 2021 daily chart

Bearish Spinning Top

The bearish spinning top is a one-bar bearish candlestick continuation pattern that’s best traded using a bullish mean reversion strategy in the crypto and stock markets and a bearish mean reversion strategy in the forex markets.

Bearish Spinning Top Identification

Bearish Spinning Top Candlestick Pattern Illustration © Analyzing Alpha
Bearish Spinning Top Candlestick Pattern Illustration
  • The candle must be bearish with a short real body and upper and lower shadows larger than its body.

Bearish Spinning Top Example

Bearish Spinning Top Candlestick Pattern Illustration © Analyzing Alpha
Bearish Spinning Top Candlestick Pattern Illustration

Bearish Three-Line Strike

The bearish three-line strike is a four-bar bearish continuation pattern that’s best traded using a bearish mean reversion strategy in the crypto and forex markets and a bullish mean reversion strategy in the stock market.

Bearish Three Line Strike Identification

Bearish Three Line Strike Candlestick Pattern Illustration © Analyzing Alpha
Bearish Three Line Strike Candlestick Pattern Illustration
  • The first three bearish candles must close lower than the previous candle.
  • The first three candles must be similar in length, resembling a staircase.  
  • The fourth bullish bar must engulf the real bodies of all three previous bearish candles.
  • The bearish three-line strike must occur during a downtrend. 

Bearish Three-Line Strike Example

Bearish Three Line Strike Candlestick Pattern on the Starbucks (SBUX) July 24th, 2002 daily chart
Bearish Three Line Strike Candlestick Pattern on the Starbucks (SBUX) July 24th, 2002 daily chart

Bearish Tri-Star

The bearish tri-star is an extremely rare three-bar bearish reversal pattern that’s best traded as indented in all markets.

Bearish Tri-Star Identification

Bearish Tri-Star Candlestick Pattern Illustration © Analyzing Alpha
Bearish Tri-Star Candlestick Pattern Illustration
  • There must be three consecutive dojis with the second gapping above the first.
  • The bearish tri-star must occur during an uptrend. 

Bearish Tri-Star Example

Bearish Tri-Star Candlestick Pattern on the Akamai Technologies (AKAM) May 15th, 2018 daily chart
Bearish Tri-Star Candlestick Pattern on the Akamai Technologies (AKAM) May 15th, 2018 daily chart

Bullish Abandoned Baby

The bullish abandoned baby is an extremely rare three-bar bearish reversal pattern that’s best traded as intended in the stock market and doesn’t occur frequently in the forex and crypto markets to provide statistically significant results.

Bullish Abandoned Baby Identification

Bullish Abandoned Baby Candlestick Pattern © Analyzing Alpha
Bullish Abandoned Baby Candlestick Pattern
  • The first candlestick must have a long black real body.
  • The second candlestick must be a doji.
  • There must be a downside gap where the shadows of the first and second candles don’t touch.
  • The third candle must be white with a real body that moves well within the first candle’s body.
  • There must be an upside gap where the shadows of the second and third candlesticks don’t touch.
  • The bullish abandoned baby must occur in a downtrend.

Bullish Abandoned Baby Example

Bullish Abandoned Baby Candlestick Pattern on the UBS Group AG (UBS) August 3rd, 2012 daily chart
Bullish Abandoned Baby Candlestick Pattern on the UBS Group AG (UBS) August 3rd, 2012 daily chart

Bullish Belt Hold

The bullish belt hold is a frequently occurring one-bar bearish reversal pattern that’s best traded in the opposite direction of conventional wisdom.

Bullish Belt Hold Identification

Bullish Belt Hold Candlestick Pattern Illustration © Analyzing Alpha
Bullish Belt Hold Candlestick Pattern Illustration
  • The first candlestick must have a long black real body.
  • The second candlestick must be a doji.
  • There must be a downside gap where the shadows of the first and second candles don’t touch.
  • The third candle must be white with a real body that moves well within the first candle’s body.
  • There must be an upside gap where the shadows of the second and third candlesticks don’t touch.
  • The bullish belt hold must occur in a downtrend.

Bullish Belt Hold Example

Bullish Belt Hold Candlestick Pattern on the Apple (AAPL) October 5th, 2021 daily chart
Bullish Belt Hold Candlestick Pattern on the Apple (AAPL) October 5th, 2021 daily chart

Bullish Breakaway

The bullish breakaway is a rare five-bar bearish reversal pattern that’s best traded as a bullish continuation.

Bullish Breakaway Identification

Bullish Breakaway Candlestick Pattern Illustration © Analyzing Alpha
Bullish Breakaway Candlestick Pattern Illustration
  • The first candle must be a long black candle.
  • The second candle is black and gaps down.
  • The third candle must have a lower high and lower low than the second.
  • The fourth candle must have a lower high and lower low than the third.
  • The fifth candle must be bullish and closes the second candle’s gap.
  • The bullish breakaway must occur in a downtrend.

Bullish Breakaway Example

Bullish Breakaway Candlestick Pattern on the Agree Realty Corporation (ADC) November 2nd, 2020 daily chart
Bullish Breakaway Candlestick Pattern on the Agree Realty Corporation (ADC) November 2nd, 2020 daily chart

Bullish Closing Marubozu

The bullish closing marubozu is a frequently occurring one-bar bullish continuation pattern that’s best traded bearishly across all markets tested.

Bullish Closing Marubozu Identification

Bullish Closing Marubozu Candlestick Pattern © Analyzing Alpha
Bullish Closing Marubozu Candlestick Pattern
  • A long white body.
  • A close price near or at the high. (A tiny upper shadow)
  • The bullish closing marubozu does not require a trend.

Bullish Closing Marubozu Example

Bullish Closing Marubozu Candlestick Pattern © Analyzing Alpha
Bullish Closing Marubozu Candlestick Pattern

Bullish Counterattack Lines

The bullish counterattack, also known as the bullish counter attack lines, is a two-bar bullish reversal pattern that’s best traded as a bearish continuation in the stock market and a bearish mean reversion in the forex markets. The pattern occurs too infrequently in the crypto markets to produce statistically significant results.

Bullish Counterattack Identification

Bullish Counterattack Candlestick Pattern Illustration © Analyzing Alpha
Bullish Counterattack Candlestick Pattern Illustration
  • The first candle must be bearish with a long real body.
  • The second candle must be bullish, closing equal to the previous close.
  • The bullish counterattack must occur during a downtrend.

Bullish Counterattack Example

Bullish Counterattack Candlestick Pattern Identification on the Apple (AAPL) February 28th, 2020 daily chart
Bullish Counterattack Candlestick Pattern Identification on the Apple (AAPL) February 28th, 2020 daily chart

Bullish Doji Star

The bullish doji star is a two-bar bullish reversal pattern that’s traded best as intended in the stock market, as a bullish mean reversion in the forex market and using a bearish mean reversion trading strategy in the crypto markets.

Bullish Doji Star Identification

Bullish Doji Star Candlestick Pattern Illustration © Analyzing Alpha
Bullish Doji Star Candlestick Pattern Illustration
  • The first candle must be bearish with a long real body.
  • The second candle must be a doji that gaps down.
  • The bullish doji star must occur during a downtrend.

Bullish Doji Star Example

Bullish Doji Star Candlestick Pattern on the Apple (AAPL) March 19th, 2021 daily chart
Bullish Doji Star Candlestick Pattern on the Apple (AAPL) March 19th, 2021 daily chart

Bullish Engulfing

The bullish engulfing is a two-bar bullish reversal pattern that’s best traded using a bullish mean reversion strategy across all markets.

Bullish Engulfing Identification

Bullish Engulfing Candlestick Pattern Illustration © Analyzing Alpha
Bullish Engulfing Candlestick Pattern Illustration
  • The first candle must be black.
  • The second candle must be white and engulf the prior candle.
  • The bullish engulfing must occur in a downtrend.

Bullish Engulfing Example

Bullish Engulfing Candlestick Pattern on the Amazon (AMZN) August 26th, 2021 daily chart
Bullish Engulfing Candlestick Pattern on the Amazon (AMZN) August 26th, 2021 daily chart

Bullish Harami

The bullish harami is a two-bar bullish reversal pattern that’s best traded using a bullish mean reversion strategy in the stock markets and bearish mean reversion strategies in the crypto and forex markets.

Bullish Harami Identification

Bullish Harami Candlestick Pattern Illustration © Analyzing Alpha
Bullish Harami Candlestick Pattern Illustration
  • The first candle must have a long bearish real body.
  • The second candle is engulfed by the first.
  • The bullish harami must occur in a downtrend.

Bullish Harami Example

Bullish Harami Candlestick Pattern on the Netflix (NFLX) December 6th, 2021 daily chart.
Bullish Harami Candlestick Pattern on the Netflix (NFLX) December 6th, 2021 daily chart.

Bullish Harami Cross

The bullish harami cross is a two-bar bullish reversal pattern that’s best traded using a bullish mean reversion strategy in stock and crypto markets and a bearish mean reversion strategy in forex markets.

Bullish Harami Identification

Bullish Harami Cross Candlestick Pattern Illustration © Analyzing Alpha
Bullish Harami Cross Candlestick Pattern Illustration
  • The first candle must have a long bearish real body.
  • The second candle is a doji engulfed by the first.
  • The bullish harami cross must occur in a downtrend.

Bullish Harami Cross Example

Bullish Harami Cross Candlestick Pattern on the Alphabet (GOOG) October 25th, 2021 daily chart.
Bullish Harami Cross Candlestick Pattern on the Alphabet (GOOG) October 25th, 2021 daily chart.

Bullish High Wave

The bullish high wave is a one-bar indecision pattern that’s best traded using bullish mean reversion strategies in stock and crypto markets and a bearish mean reversion strategy in forex.

Bullish High Wave Identification

Bullish High Wave Candlestick Pattern Illustration © Analyzing Alpha
Bullish High Wave Candlestick Pattern Illustration
  • The first candle must have a long bearish real body.
  • The second candle is a doji engulfed by the first.
  • The bullish high wave must occur in a downtrend.

Bullish High Wave Example

Bullish High Wave Candlestick Pattern on the Microsoft (MSFT) August 4th, 2021 daily chart
Bullish High Wave Candlestick Pattern on the Microsoft (MSFT) August 4th, 2021 daily chart

Bullish Kicking

The bullish kicking is a two-bar bullish reversal pattern that’s best traded as intended in the stock market. Unfortunately, there wasn’t enough data to determine the best bullish kicking trading strategy in the forex and crypto markets.

Bullish Kicking Identification

Bullish Kicking Candlestick Pattern © Analyzing Alpha
Bullish Kicking Candlestick Pattern
  • The first candle is a bearish marubozu.
  • The second candle is a bullish marubozu.
  • There must be a gap between the two candles.

Bullish Kicking Example

Bullish Kicking Candlestick Pattern on the American Realty Investors (ARL) April 23rd, 2019 daily chart
Bullish Kicking Candlestick Pattern on the American Realty Investors (ARL) April 23rd, 2019 daily chart

Bullish Long Line

The bullish long line is a one-bar bullish continuation pattern that’s best traded as a bearish reversal using an entry close in all markets.

Bullish Long Line Identification

Bullish Long Line Candlestick Pattern Illustration © Analyzing Alpha
Bullish Long Line Candlestick Pattern Illustration
  • The candle must have a long real body with short upper and lower shadows.

Bullish Long Line Example

Bullish Long Line Candlestick Pattern on the Microsoft (MSFT) October 29th, 2021 daily chart
Bullish Long Line Candlestick Pattern on the Microsoft (MSFT) October 29th, 2021 daily chart

Bullish Marubozu

The bullish marubozu is a one-bar bullish candlestick continuation pattern that’s best traded as a bearish reversal expecting short-term profit-taking.

Bullish Marubozu Identification

Bullish Marubozu Candlestick Pattern Illustration © Analyzing Alpha
Bullish Marubozu Candlestick Pattern Illustration
  • The candle must have a long real body with little to no upper and lower shadows.

Bullish Marubozu Example

Bullish Marubozu Candlestick Pattern on the Tesla (TSLA) April 13th, 2021 daily chart
Bullish Marubozu Candlestick Pattern on the Tesla (TSLA) April 13th, 2021 daily chart

Bullish Separating Lines

The bullish separating lines is a two-bar bullish continuation pattern that’s best traded as a bearish reversal.

Bullish Separating Lines Identification

Bullish Separating Lines Candlestick Pattern Illustration © Analyzing Alpha
Bullish Separating Lines Candlestick Pattern Illustration
  • The first candle must be bearish.
  • The second candle must be a bullish belt hold pattern.
  • The opening price for the first and second candles must match.
  • The bullish separating lines must occur in an uptrend.

Bullish Separating Lines Example

Bullish Separating Lines on the Netflix (NFLX) September 29th, 2021 daily chart
Bullish Separating Lines on the Netflix (NFLX) September 29th, 2021 daily chart

Bullish Short Line

The bullish short line is a one-bar indecision pattern that’s best traded as a bearish candle reversal.

Bullish Short Line Identification

Bullish Short Line Candlestick Pattern Illustration © Analyzing Alpha
Bullish Short Line Candlestick Pattern Illustration
  • The candle must have a small real body with short upper and lower shadow.

Bullish Short Line Example

Bullish Short Line Candlestick Pattern on the Nvidia (NVDA) July 30th, 2021 daily chart
Bullish Short Line Candlestick Pattern on the Nvidia (NVDA) July 30th, 2021 daily chart

Bullish Spinning Top

The bullish spinning top is a one-bar indecision pattern that’s best traded using mean reversion strategies across all markets tested.

Bullish Spinning Top Identification

Bullish Spinning Top Candlestick Pattern Illustration © Analyzing Alpha
Bullish Spinning Top Candlestick Pattern Illustration
  • The candle must wicks larger than its small bullish real body.

Bullish Spinning Top Example

Bullish Spinning Top Candlestick Pattern on the Enphase Energy (ENPH) November 3rd, 2021 daily chart
Bullish Spinning Top Candlestick Pattern on the Enphase Energy (ENPH) November 3rd, 2021 daily chart

Bullish Three-Line Strike

The bullish three-line strike is a four-bar bullish continuation pattern that’s best traded using bullish mean reversion strategies in the stock market and bearish volatility-capturing strategies in forex. Crypto traders should avoid this pattern due to a lack of statistically significant trading strategies.

Bullish Three-Line Strike Identification

Bullish Three-Line Strike Candlestick Pattern Illustration © Analyzing Alpha
Bullish Three-Line Strike Candlestick Pattern Illustration
  • Three consecutive larger bullish candles with higher closes, each opening near or within the previous candle’s body with little to no upper wick.
  • The last candle must open higher than the third candle’s close and close below the first candle’s open.
  • The bullish three-line strike must occur during an uptrend.

Bullish Three-Line Strike Example

Bullish Three-Line Strike Candlestick Pattern on the Brookfield Asset Management (BAM) August 7th, 2018 daily chart
Bullish Three-Line Strike Candlestick Pattern on the Brookfield Asset Management (BAM) August 7th, 2018 daily chart

Bullish Tri-Star

The bullish tri-star is a three-bar bullish reversal pattern that’s best traded as intended in the stock market and as a bearish continuation in the forex market. Data-driven crypto traders should avoid this pattern.

Bullish Tri-Star Identification

Bullish Tri -Star Candlestick Pattern Illustration © Analyzing Alpha
Bullish Tri -Star Candlestick Pattern Illustration
  • Three consecutive dojis.
  • The second doji is a star and gaps below the first doji.
  • The bullish tri-star must occur in a downtrend.

Bullish Tri-Star Example

Bullish Tri-Star Candlestick Pattern on the Ascendis Pharma (ASND) August 19th, 2019 daily chart
Bullish Tri-Star Candlestick Pattern on the Ascendis Pharma (ASND) August 19th, 2019 daily chart

Concealing Baby Swallow

The concealing baby swallow is a four-bar bullish reversal pattern that occurs too infrequently to develop statistically significant trading strategies.

Concealing Baby Swallow Identification

Concealing Baby Swallow Candlestick Pattern Illustration © Analyzing Alpha
Concealing Baby Swallow Candlestick Pattern Illustration
  • The first candle must be a bearish marubozu.
  • The second candlestick is a bearish marubozu.
  • The third candle is black and opens, gapping down with an upper shadow extending into the previous candle’s real body.
  • The fourth candle is bearish and completely engulfs the previous candle.
  • The concealing baby swallow must occur in a downtrend.

Concealing Baby Swallow Example

Concealing Baby Swallow Candlestick Pattern on the Star Equity Holdings (STRR) August 15th, 2007 daily chart
Concealing Baby Swallow Candlestick Pattern on the Star Equity Holdings (STRR) August 15th, 2007 daily chart

Dark Cloud Cover

The dark cloud cover is a two-bar bearish reversal pattern that is best traded using bullish mean reversion strategies in the forex and stock markets. Data-driven crypto traders should pass on this pattern due to a lack of statistically significant trading strategies.

Dark Cloud Cover Identification

Dark Cloud Cover Candlestick Pattern Illustration © Analyzing Alpha
Dark Cloud Cover Candlestick Pattern Illustration
  • The first candle is long and bullish candle.
  • The second candle opens above the prior candle’s high and closes within the first candle’s body, ideally below the midpoint.
  • The dark cloud cover must occur during an uptrend.

Dark Cloud Cover Example

Dark Cloud Cover Candlestick Pattern on the December 13th, 2021 daily chart
Dark Cloud Cover Candlestick Pattern on the December 13th, 2021 daily chart

Doji

The doji is a frequent, one-bar indecision pattern that’s best traded bullishly in the crypto and stock markets and bearishly in forex.

Doji Identification

Common Doji Candlestick Pattern Illustration © Analyzing Alpha
Common Doji Candlestick Pattern Illustration
  • The open and close are near or equal.
  • The open and close are not near the high or low.
  • The candle’s range is similar to prior trading ranges.
  • The doji does not require a trend.

Doji Example

Common Doji Candlestick Pattern on the Apple (AAPL) October 25th, 2021 daily chart
Common Doji Candlestick Pattern on the Apple (AAPL) October 25th, 2021 daily chart

Down Gap Side-by-Side White Lines

The down gap side-by-side, also known as the bearish side-by-side white lines, is a three-bar bearish continuation pattern that’s best traded bullishly in all markets.

Down Gap Side-by-Side Identification

Down Gap Side-by-Side White Lines Candlestick Pattern © Analyzing Alpha
Down Gap Side-by-Side White Lines Candlestick Pattern
  • The first candle is long and bearish candle.
  • The second candle must gap down and be bullish.
  • The third candle opens near the prior candle’s opening and is roughly the same size as the second candle and does not close the gap.
  • The down gap side-by-side occurs during a downtrend.

Bearish Side-by-Side White Lines Example

Bearish Side-by-Side White Lines Candlestick Pattern on the Brookfield Asset Management (BAM) November 16th, 2007 daily chart
Bearish Side-by-Side White Lines Candlestick Pattern on the Brookfield Asset Management (BAM) November 16th, 2007 daily chart

Downside Gap Three Methods

The downside gap three methods is a three-bar bearish continuation pattern that’s best traded using a bullish mean reversion strategy in the stock market while capturing volatility in the opposite direction in the forex market. Crypto traders should avoid this pattern due to the lack of statistically significant trading setups.

Downside Gap Three Methods Identification

Downside Gap Three Methods Candlestick Pattern Illustration © Analyzing Alpha
Downside Gap Three Methods Candlestick Pattern Illustration
  • The first candle is bearish.
  • The second candle is bearish and gaps down.
  • The third candle is bullish, opens within the previous candle’s real body, and closes within the first candle’s real body.
  • The downside gap three methods must occur during a downtrend.

Downside Gap Three Methods Example

Downside Gap Three Methods Candlestick Pattern on the Apple (AAPL) December 18th, 2018 daily chart
Downside Gap Three Methods Candlestick Pattern on the Apple (AAPL) December 18th, 2018 daily chart

Downside Tasuki Gap

The downside tasuki gap is a three-bar bearish continuation pattern that’s best traded using a bullish mean reversion volatility strategies in the stock and forex markets. Crypto traders should avoid the downside tasuki gap due to the lack of trading opportunities.

Downside Tasuki Gap Identification

Downside Tasuki Gap Candlestick Pattern Illustration © Analyzing Alpha
Downside Tasuki Gap Candlestick Pattern Illustration
  • A bullish or bearish first candle.
  • The second candle must gap down and be bearish.
  • The third candle must open within the second candle’s real body, close within the gap, and be bullish.
  • The downside tasuki gap occurs during a downtrend.

Downside Tasuki Gap Example

Downside Tasuki Gap Candlestick Pattern on the Apple (AAPL) July 16th, 2008 daily chart
Downside Tasuki Gap Candlestick Pattern on the Apple (AAPL) July 16th, 2008 daily chart

Dragonfly Doji

The dragonfly doji is a one-bar indecision doji pattern that’s best traded for a quick bearish bounce across all markets.

Dragonfly Doji Identification

Dragonfly Doji Candlestick Pattern © Analyzing Alpha
Dragonfly Doji Candlestick Pattern
  • The open and close must be equal or almost equal.
  • There must be little to no upper shadow.

Dragonfly Doji Example

Dragonfly Doji Candlestick Pattern on the Amazon (AMZN) March 5th, 2021 daily chart
Dragonfly Doji Candlestick Pattern on the Amazon (AMZN) March 5th, 2021 daily chart

Evening Doji Star

The evening doji star is a three-bar bearish reversal pattern that’s best traded using mean reversion strategies across all markets.

Evening Doji Star Identification

Evening Doji Star Candlestick Pattern Illustration © Analyzing Alpha
Evening Doji Star Candlestick Pattern Illustration
  • The first candle is long and bullish.
  • The second candle gaps up and is a doji.
  • The third candle moves well within the first candle’s body and is bearish.
  • The evening doji star must occur in an uptrend.

Evening Doji Star Example

Evening Doji Star Candlestick Pattern on the Adobe (ADBE) April 19th, 2021 daily chart
Evening Doji Star Candlestick Pattern on the Adobe (ADBE) April 19th, 2021 daily chart

Evening Star

The evening star is a three-bar bearish reversal pattern that’s best traded using volatility-capturing strategies across all markets.

Evening Star Identification

Evening Star Candlestick Pattern Illustration © Analyzing Alpha
Evening Star Candlestick Pattern Illustration
  • The first candle is bullish and long.
  • The second candle gaps up and has a short real body.
  • The third candle is bearish and moves well within the first candle’s body.
  • The evening star must occur in an uptrend.

Evening Star Example

Evening Star Candlestick Pattern on the Tesla (TSLA) November 23rd, 2021 daily chart
Evening Star Candlestick Pattern on the Tesla (TSLA) November 23rd, 2021 daily chart

Falling Three Methods

The falling three methods is an extremely rare bearish continuation with at least four bars that are like best traded using volatility-capturing strategies across all markets. Data-driven traders should avoid this pattern due to lack of statistically significant trading strategies.

Falling Three Methods Identification

Falling Three Methods Candlestick Pattern Illustration © Analyzing Alpha
Falling Three Methods Candlestick Pattern Illustration
  • The first candle is long and bearish.
  • A group of two or more rising small-bodied candles that hold within the first candle’s range.
  • A final bearish candle that opens below the prior small candle’s close and closes below the first candle’s close.
  • The falling three methods must occur during a downtrend.

Falling Three Methods Example

Falling Three Methods Candlestick Pattern on the Microsoft (MSFT) February 4th, 2010 daily chart
Falling Three Methods Candlestick Pattern on the Microsoft (MSFT) February 4th, 2010 daily chart

Gravestone Doji

The gravestone doji is a one-bar indecision doji candle pattern that’s best traded using bullish bounce strategies in all markets.

Gravestone Doji Identification

Gravestone Doji Candlestick Pattern Illustration © Analyzing Alpha
Gravestone Doji Candlestick Pattern Illustration
  • The open and close are equal or near equal.
  • There must be little to no lower wick.

Gravestone Doji Example

Gravestone Doji Candlestick Pattern on the Amazon (AMZN) April 13th, 2021 daily chart
Gravestone Doji Candlestick Pattern on the Amazon (AMZN) April 13th, 2021 daily chart

Hammer

The hammer is a one-bar bullish reversal pattern that’s best traded using bearish continuation strategies in all markets.

Hammer Identification

Hammer Candlestick Pattern Illustration © Analyzing Alpha
Hammer Candlestick Pattern Illustration
  • Small body with little to no upper wick and a long lower wick at least 2x the size of the body.
  • The hammer must occur in a downtrend.

Hammer Example

Hammer Candlestick Pattern Illustration © Analyzing Alpha
Hammer Candlestick Pattern Illustration

Hanging Man

The hanging man is a frequent on-bar bearish reversal pattern that’s best traded bearishly across all markets.

Hanging Man Identification

Hanging Man Candlestick Pattern Illustration © Analyzing Alpha
Hanging Man Candlestick Pattern Illustration
  • Small body with no to little upper wick and a long lower wick at least 2x the size of the body.
  • The hanging man occurs in an uptrend.

Hanging Man Example

Hanging Man Candlestick Pattern on the Apple (AAPL) June 6th, 2018 daily chart
Hanging Man Candlestick Pattern on the Apple (AAPL) June 6th, 2018 daily chart

Homing Pigeon

The hanging man is a frequent one-bar bearish reversal pattern that’s best traded bearishly across all markets.

Homing Pigeon Identification

Homing Pigeon Candlestick Pattern Illustration © Analyzing Alpha
Homing Pigeon Candlestick Pattern Illustration
  • The first candle is bearish and long.
  • The second candle is bearish and short, with its body fitting within the previous body.
  • The home pigeon must occur during a downtrend.

Homing Pigeon Example

Homing Pigeon Candlestick Pattern Identification on the Amazon (AMZN) August 15th, 2019 daily chart
Homing Pigeon Candlestick Pattern Identification on the Amazon (AMZN) August 15th, 2019 daily chart

In Neck

The in neck is a rare two-bar bearish continuation pattern that’s best traded capturing bullish volatility in the stock market. Crypto and forex traders should avoid this pattern due to a lack of statistically significant trading data.

In Neck Identification

In Neck Candlestick Pattern Illustration © Analyzing Alpha
In Neck Candlestick Pattern Illustration
  • The first candle is bearish and long.
  • The second candle is bullish, opens below the prior candle’s low, and closes slightly into the prior body.
  • The in neck occurs in a downtrend.

In Neck Example

In Neck Candlestick Pattern on the Akamai (AKAM) September 18th, 2018 daily chart
In Neck Candlestick Pattern on the Akamai (AKAM) September 18th, 2018 daily chart

Inverted Hammer

The inverted hammer is a frequent one-bar bullish reversal pattern that’s best traded, capturing volatility in all markets.

Inverted Hammer Identification

Inverted Hammer Candlestick Pattern Illustration © Analyzing Alpha
Inverted Hammer Candlestick Pattern Illustration
  • A small real body with little to no lower shadow and a long upper wick at least three times the size of the real body.
  • The inverted hammer occurs during a downtrend.

Inverted Hammer Example

Inverted Hammer Candlestick Pattern on the Microsoft (MSFT) October 11th, 2021 daily chart
Inverted Hammer Candlestick Pattern on the Microsoft (MSFT) October 11th, 2021 daily chart

Ladder Bottom

The ladder bottom is a rare five-bar bullish reversal pattern that’s best traded as intended in the stock market. Data-driven forex and crypto traders should pass on this rare pattern.

Ladder Bottom Identification

Ladder Bottom Candlestick Pattern Illustration © Analyzing Alpha
Ladder Bottom Candlestick Pattern Illustration
  • Three bearish candlesticks with consecutively lower opening and closing prices.
  • A fourth bearish candlestick with an upper wick.
  • A fifth bullish candlestick that opens above the previous real body and closes above the prior high.
  • The ladder bottom occurs in a downtrend.

Ladder Bottom Example

Ladder Bottom Candlestick Pattern on the AbCellera (ABCL) March 31st, 2021 daily chart
Ladder Bottom Candlestick Pattern on the AbCellera (ABCL) March 31st, 2021 daily chart

Long-Legged Doji

The long-legged doji is a one-bar doji indecision candlestick pattern that’s best traded bullishly in the stock and crypto markets and bearishly in forex.

Long-Legged Doji Identification

Long-Legged Doji Candlestick Pattern Illustration © Analyzing Alpha
Long-Legged Doji Candlestick Pattern Illustration
  • The open and close are equal or near equal.
  • There must be at least one long wick.

Long-Legged Doji Example

Long-Legged Doji Candlestick Pattern on the Apple (AAPL) November 1st, 2021 daily chart
Long-Legged Doji Candlestick Pattern on the Apple (AAPL) November 1st, 2021 daily chart

Matching Low

The matching low is a two-bar bullish reversal pattern that’s best traded using bullish strategies in all markets.

Matching Low Identification

Matching Low Candlestick Pattern Illustration © Analyzing Alpha
Matching Low Candlestick Pattern Illustration
  • The first candlestick is bearish.
  • The second candlestick is bearish closing equal to the prior close.
  • The matching low occurs during a downtrend.

Matching Low Example

Matching Low Candlestick Pattern on the Amazon (AMZN) October 12th, 2021 daily chart
Matching Low Candlestick Pattern on the Amazon (AMZN) October 12th, 2021 daily chart

Morning Doji Star

The morning doji star is a three-bar bullish reversal pattern that’s best traded using bullish strategies in all markets.

Morning Doji Star Identification

Morning Doji Star Candlestick Pattern Illustration © Analyzing Alpha
Morning Doji Star Candlestick Pattern Illustration
  • The first candlestick is bearish and long.
  • The second candlestick is a doji that gaps down.
  • The third candlestick is bullish and moves well within the first candlestick’s body.
  • The morning doji star must occur in a downtrend.

Morning Doji Star Example

Morning Doji Star Candlestick Pattern on the Alphabet (GOOG) March 24th, 2020 daily chart
Morning Doji Star Candlestick Pattern on the Alphabet (GOOG) March 24th, 2020 daily chart

Morning Star

The morning doji star is a three-bar bullish reversal pattern that’s best traded bullishly in all markets.

Morning Star Identification

Morning Star Candlestick Pattern Illustration © Analyzing Alpha
Morning Star Candlestick Pattern Illustration
  • The first candlestick is bearish and long.
  • The second candlestick has a short body and gaps down.
  • The third candlestick is bullish and moves well within the first candlestick’s real body.
  • The morning star occurs in a downtrend.

Morning Star Example

Morning Star Candlestick Pattern on the Apple (AAPL) October 14th, 2021 daily chart
Morning Star Candlestick Pattern on the Apple (AAPL) October 14th, 2021 daily chart

On Neck

The on neck is a two-bar bearish continuation pattern that’s best traded using volatility-capturing strategies.

On Neck Identification

On Neck Candlestick Pattern Illustration © Analyzing Alpha
On Neck Candlestick Pattern Illustration
  • The first candlestick is long and bearish.
  • The second candlestick is bullish and opens below the prior candlestick’s low with a close equal to the previous low.
  • The on neck occurs during a downtrend.

On Neck Example

On Neck Candlestick Pattern on the Amazon (AMZN) December 12th, 2014 daily chart
On Neck Candlestick Pattern on the Amazon (AMZN) December 12th, 2014 daily chart

Piercing

The piercing pattern is a rare two-bar bullish reversal that’s best traded using a bullish volatility-capturing strategy in the stock market. Forex and crypto traders should pass on this pattern due to a lack of statistically significant trading strategies.

Piercing Identification

Piercing Candlestick Pattern Illustration © Analyzing Alpha
Piercing Candlestick Pattern Illustration
  • The first candlestick is long and bearish.
  • The second candlestick is bullish, opens below the prior candlestick’s low, and closes between the prior candle’s open and midpoint.
  • The piercing pattern occurs during a downtrend.

Piercing Example

Piercing Candlestick Pattern Identification on the Amazon (AMZN) February 19th, 2016 daily chart
Piercing Candlestick Pattern Identification on the Amazon (AMZN) February 19th, 2016 daily chart

Rickshaw Man

The rickshaw man is a one-bar indecision pattern that’s best traded using mean reversion strategies in all markets.

Rickshaw Man Identification

Rickshaw Man Candlestick Pattern Illustration © Analyzing Alpha
Rickshaw Man Candlestick Pattern Illustration
  • A doji body near the midpoint of the candle.

Rickshaw Man Example

Rickshaw Man Candlestick Pattern on the Amazon (AMZN) November 23rd, 2021 daily chart
Rickshaw Man Candlestick Pattern on the Amazon (AMZN) November 23rd, 2021 daily chart

Rising Three Methods

The rising three methods have at least four bars and is best traded using bullish strategies. Data-driven traders will want to pass on this pattern due to a lack of daily trading results.

Rickshaw Man Identification

Rickshaw Man Candlestick Pattern Illustration © Analyzing Alpha
Rickshaw Man Candlestick Pattern Illustration
  • The first candlestick is bullish and long.
  • A group of two or more falling small-real-bodied candles that hold within the first candlestick’s range.
  • A final bearish candlestick that opens above the prior small candlestick’s close and closes above the first candlestick’s close.
  • The rising three methods must occur during an uptrend.

Rising Three Methods Example

Rising Three Methods Candlestick Pattern on the October 14th, 2009 daily chart
Rising Three Methods Candlestick Pattern on the October 14th, 2009 daily chart

Shooting Star

The shooting star is a one-bar bearish reversal that historically leads to near-term volatility.

Shooting Star Identification

Shooting Star Candlestick Pattern Illustration © Analyzing Alpha
Shooting Star Candlestick Pattern Illustration
  • A small candlestick that gaps up with a long upper wick and little to no lower wick.
  • The shooting star occurs in an uptrend.

Shooting Star Example

Shooting Star Candlestick Pattern on the Apple (AAPL) November 22nd, 2021 daily chart
Shooting Star Candlestick Pattern on the Apple (AAPL) November 22nd, 2021 daily chart

Stalled Pattern

The stalled pattern is a three-bar bearish reversal that historically leads to bullish movement in the stock market and bearish price action in forex.

Stalled Identification

Stalled Candlestick Pattern Illustration © Analyzing Alpha
Stalled Candlestick Pattern Illustration
  • Three consecutive bullish candlesticks consecutively closing higher.
  • The first candlestick is bullish and long.
  • The second candlestick is bullish and long, with little to no upper wick opening within or near the previous body.
  • A third candlestick is small, bullish, and rides the shoulder, moving around the prior closing price.
  • The stalled pattern occurs in an uptrend.

Stalled Example

Stalled Candlestick Pattern on the Microsoft (MSFT) August 16th, 2021 daily chart
Stalled Candlestick Pattern on the Microsoft (MSFT) August 16th, 2021 daily chart

Stick Sandwich

The stick sandwich is a three-bar bullish reversal that historically leads to bearish price action in the stock market. Forex and crypto traders should avoid this pattern.

Stick Sandwich Identification

Stick Sandwich Candlestick Pattern Illustration © Analyzing Alpha
Stick Sandwich Candlestick Pattern Illustration
  • The first candlestick is bearish.
  • The second candlestick is bullish and only trades above the first candlestick’s close.
  • The third candlestick is bearish, with a close equal to the first candlestick’s close.
  • The stick sandwich occurs in a downtrend.

Stick Sandwich Example

Stick Sandwich Candlestick Pattern on the Akamai (AKAM) September 18th, 2002 daily chart
Stick Sandwich Candlestick Pattern on the Akamai (AKAM) September 18th, 2002 daily chart

Takuri Line

The takuri, also known as the takuri line, is a one-bar bullish reversal doji that historically leads to bearish price action.

Takuri Line Identification

Takuri Line Candlestick Pattern Illustration © Analyzing Alpha
Takuri Line Candlestick Pattern Illustration
  • A doji candle with little to no upper shadow and a very long lower wick.
  • The takuri line occurs in a downtrend.

Takuri Example

Takuri Line Candlestick Pattern on the Alphabet (GOOG) July 11th, 2017 daily chart
Takuri Line Candlestick Pattern on the Alphabet (GOOG) July 11th, 2017 daily chart

Three Black Crows

The three black crows is a rare four-bar bearish reversal that historically leads to bearish volatility.

Three Black Crows Identification

Three Black Crows Candlestick Pattern Illustration © Analyzing Alpha
Three Black Crows Candlestick Pattern Illustration
  • The first candlestick is bullish.
  • The second through fourth candlesticks are consecutively declining bearish candles with little to no lower shadows.
  • The second candlestick’s close must be under the first candle’s high.
  • The third and fourth candlesticks must open within the prior bearish candlestick’s real body.
  • The three black crows occur in an uptrend.

Three Black Crows Example

Three Black Crows Candlestick Pattern on the Target (TGT) December 2nd, 2019 daily chart
Three Black Crows Candlestick Pattern on the Target (TGT) December 2nd, 2019 daily chart

Three Inside Down

The three inside down is a three-bar bearish reversal that’s best traded using bullish volatility-capturing strategies in the stock and crypto markets, and bearish strategies in the forex market.

Three Inside Down Identification

Three Inside Down Candlestick Pattern Illustration © Analyzing Alpha
Three Inside Down Candlestick Pattern Illustration
  • The first candlestick is bullish with a relatively long real body.
  • The second candlestick must have a small real body engulfed by the first candlestick.
  • The third bearish candlestick closes lower than the first candlestick’s opening price.
  • The three inside down occurs during an uptrend.

Three Inside Down Example

Three Inside Down Candlestick Pattern on the Alphabet (GOOG) September 17th, 2021 daily chart
Three Inside Down Candlestick Pattern on the Alphabet (GOOG) September 17th, 2021 daily chart

Three Inside Up

The three inside up is a three-bar bullish reversal that’s best traded using bullish mean reversion strategies in the stock, crypto and forex markets.

Three Inside Up Identification

Three Inside Up Candlestick Pattern Illustration © Analyzing Alpha
Three Inside Up Candlestick Pattern Illustration © Analyzing Alpha
  • The first candle is long and bearish.
  • The second candlestick has a small body engulfed by the first candlestick.
  • The third bearish candlestick closes lower than the first candlestick’s opening.
  • The three inside up occurs during a downtrend.

Three Inside Up Example

Three Inside Up Candlestick Pattern on the Ethereum (ETHUSD) September 23rd, 2017 daily chart
Three Inside Up Candlestick Pattern on the Ethereum (ETHUSD) September 23rd, 2017 daily chart

Three Outside Down

The three outside down is a three-bar bearish reversal that’s best traded using bullish reversion strategies in the stock and crypto markets and bearish reversion in forex.

Three Outside Down Identification

Three Outside Down Candlestick Pattern Illustration © Analyzing Alpha
Three Outside Down Candlestick Pattern Illustration
  • The first candle is bullish.
  • The second candlestick is bearish and engulfs the first.
  • The third candlestick is bearish and closes lower than the first candlestick’s open.
  • The three outside down occurs during an uptrend.

Three Outside Down Example

Three Outside Down Candlestick Pattern on the Amazon (AMZN) September 10th, 2021 daily chart
Three Outside Down Candlestick Pattern on the Amazon (AMZN) September 10th, 2021 daily chart

Three Outside Up

The three outside up is a three-bar bearish reversal that’s best traded using bullish strategies in the stock and crypto markets and bearish volatility-capturing strategies in forex.

Three Outside Up Identification

Three Outside Up Candlestick Pattern Illustration © Analyzing Alpha
Three Outside Up Candlestick Pattern Illustration
  • The first candle is bearish.
  • The second candlestick is bullish and engulfs the first.
  • The third candlestick is bullish and closes higher than the first candle’s opening price.
  • The three outside up occurs during a downtrend.

Three Outside Up Example

Three Outside Up Candlestick Pattern on the Alphabet (GOOG) August 30th, 2017 daily chart
Three Outside Up Candlestick Pattern on the Alphabet (GOOG) August 30th, 2017 daily chart

Three Stars in the South

The three stars in the south is an extremely rare three-bar candlestick pattern. Data-driven traders should avoid this pattern on the daily timeframe due to the lack of statistically significant trading results.

Three Stars in the South Identification

Three Stars in the South Candlestick Pattern Illustration © Analyzing Alpha
Three Stars in the South Candlestick Pattern Illustration
  • The first candlestick is a long bearish candle with a long lower wick.
  • The second candle is bearish and opens higher than the previous close but within the range of the prior candlestick.
  • The second candlestick must have a lower wick but no longer than the previous candlestick’s wick.
  • The third candlestick is a small bearish marubozu engulfed by the previous candlesticks’ range.
  • The three stars in the south occurs within a downtrend.

Three Stars in the South Example

Three Stars in the South Candlestick Pattern on the EUR/HRK March 21st, 2016 daily chart
Three Stars in the South Candlestick Pattern on the EUR/HRK March 21st, 2016 daily chart

Three White Soldiers

The three advancing white soldiers, also known as the three white soldiers, is a three-bar candlestick pattern using bullish reversal strategies in the stock market.

Three Advancing White Soldiers Identification

Three White Soldiers Candlestick Pattern Illustration © Analyzing Alpha
Three White Soldiers Candlestick Pattern Illustration
  • Three bullish medium to large candles similar in size consecutively closing higher.
  • Each candlestick must open within or near the prior candlestick’s real body and close at or near the high of the day.
  • The three white soldiers occur during a downtrend.

Three Advancing White Soldiers Example

Three Stars in the South Candlestick Pattern on the EUR/HRK March 21st, 2016 daily chart
Three Stars in the South Candlestick Pattern on the EUR/HRK March 21st, 2016 daily chart

Thrusting Line Pattern

The thrusting line pattern, also known as the thrusting pattern, is a rare two-bar bearish continuation that’s best traded in the stock market using bullish mean reversion trading strategies.

Thrusting Line Identification

Thrusting Candlestick Pattern Illustration © Analyzing Alpha
Thrusting Candlestick Pattern Illustration
  • The first candlestick is bearish and large.
  • The second candlestick is bullish, opens below the prior low, and closes into the previous body below the midpoint.
  • The thrusting pattern must occur during a downtrend.

Thrusting Line Example

Thrusting Candlestick Pattern on the Amazon (AMZN) November 15th, 2018 daily chart
Thrusting Candlestick Pattern on the Amazon (AMZN) November 15th, 2018 daily chart

Two Crows

The two crows is a rare three-candle bearish reversal that’s best traded using bullish volatility-capturing strategies in the stock market.

Two Crows Identification

Two Crows Candlestick Pattern Illustration © Analyzing Alpha
Two Crows Candlestick Pattern Illustration
  • The first candlestick is long and bullish.
  • The second candle is bearish and closes above the prior close.
  • The third candlestick is bearish, opens within the second candlestick’s body, and closes within the first candle’s body.
  • The two crows occurs in an uptrend.

Two Crows Example

Thrusting Candlestick Pattern on the Amazon (AMZN) November 15th, 2018 daily chart
Thrusting Candlestick Pattern on the Amazon (AMZN) November 15th, 2018 daily chart

Unique Three River Bottom

The unique three river bottom is a rare three-candle bullish reversal that suggests volatility is ahead.

Unique Three River Bottom Identification

Unique Three River Bottom Candlestick Pattern Illustration © Analyzing Alpha
Unique Three River Bottom Candlestick Pattern Illustration
  • The first candlestick is bearish and large.
  • The second candlestick is bearish, its body engulfed by the first candlestick while having a lower low than the first.
  • The third candlestick is small and bullish, with an open not lower than the middle candlestick’s low.
  • The unique three river bottom occurs during a downtrend.

Unique Three River Bottom Example

Unique Three River Bottom Candlestick Pattern on the Automatic Data Processing (ADP) November 23rd, 2018 daily chart
Unique Three River Bottom Candlestick Pattern on the Automatic Data Processing (ADP) November 23rd, 2018 daily chart

Up Gap Side-by-Side

The up gap side-by-side, also known as the bullish side-by-side white lines, is a three-candle bullish continuation that should be traded as intended in the stock market and using bearish bounce strategies in forex.

Up Gap Side-by-Side Identification

Up Gap Side-by-Side White Lines Candlestick Pattern Illustration © Analyzing Alpha
Up Gap Side-by-Side White Lines Candlestick Pattern Illustration
  • The first candle is of any color.
  • The second candlestick must gap higher and be bullish.
  • The third candlestick must have a similar size and opening to the second candlestick.
  • The up gap side-by-side occurs during an uptrend.

Up Gap Side-by-Side Example

Bullish Side-by-Side White Lines Candlestick Pattern on the Meta Platforms (META) January 10th, 2019 daily chart
Bullish Side-by-Side White Lines Candlestick Pattern on the Meta Platforms (META) January 10th, 2019 daily chart

Upside Gap Three Methods

The upside gap three methods is a rare three-candle bullish continuation that should be traded to capture bullish volatility in the stock market.

Upside Gap Three Methods Identification

Upside Gap Three Methods Candlestick Pattern Illustration © Analyzing Alpha
Upside Gap Three Methods Candlestick Pattern Illustration
  • The first candlestick is bullish.
  • The second candlestick is bullish and gaps up.
  • The third candlestick is bearish, opens with the second candlestick’s real body, and closes within the first candlestick’s body.
  • The upside gap three methods occurs during an uptrend.

Upside Gap Three Methods Example

Upside Gap Three Methods Candlestick Pattern on the Apple (AAPL) June 11th, 2020 daily chart
Upside Gap Three Methods Candlestick Pattern on the Apple (AAPL) June 11th, 2020 daily chart

Upside Gap Two Crows

The upside gap two crows is a rare three-candle bearish reversal that should be traded to capture bullish volatility in the stock market.

Upside Gap Two Crows Identification

Upside Gap Two Crows Candlestick Pattern Illustration © Analyzing Alpha
Upside Gap Two Crows Candlestick Pattern Illustration
  • The first candlestick is bullish.
  • The second candlestick is bearish with a small body and closes higher than the previous, creating a gap.
  • The third candlestick is bearish and engulfs the second candlestick’s body while closing above the first candlestick’s close.
  • The upside gap two crows occurs during an uptrend.

Upside Gap Two Crows Example

Upside Gap Two Crows Candlestick Pattern on the Amazon (AMZN) September 13th, 2018 daily chart
Upside Gap Two Crows Candlestick Pattern on the Amazon (AMZN) September 13th, 2018 daily chart

Upside Tasuki Gap

The upside tasuki gap is a rare three-candle bullish continuation that is best traded with bullish volatility-capturing strategies in the stock market.

Upside Tasuki Gap Identification

Upside Tasuki Gap Candlestick Pattern Illustration © Analyzing Alpha
Upside Tasuki Gap Candlestick Pattern Illustration
  • A first candlestick.
  • The second candlestick is bullish and gaps up.
  • The third candlestick is bearish, opens within the prior candlestick’s real body, and closes within the gap.
  • The upside tasuki gap occurs during a downtrend.

Upside Tasuki Gap Example

Upside Tasuki Gap Candlestick Pattern on the ASML Holding (ASML) March 23rd, 2021 daily chart
Upside Tasuki Gap Candlestick Pattern on the ASML Holding (ASML) March 23rd, 2021 daily chart

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