Candlestick Patterns
Japanese candlestick pattern strategies. Doji stars, Morning/Evening stars, Three Soldiers, Hammers, and multi-candle formations.
5 Strategy Templates
Candlestick Patterns are single- or multi-bar formations codified by Japanese rice traders centuries before Western technical analysis. Doji for indecision, hammer for rejection of lower prices, engulfing for decisive reversal, morning/evening star for three-bar transitions. Each pattern visualizes the intra-bar supply/demand battle through body size, wick length, and relationships between consecutive bars. Modern literature has empirically validated a handful of these patterns as statistically meaningful; most are either redundant (multiple names for the same geometry) or indistinguishable from noise.
The strategies in this category focus on the validated subset: hammer rejection at support, morning/evening star three-bar reversals, three white soldiers/black crows momentum, doji indecision at levels, and three-soldiers-or-crows continuation. Across all candlestick strategies, context is everything. A hammer at random chart location is statistically neutral, while a hammer at an established demand zone or prior pivot low carries real predictive weight. Volume confirmation matters too: the same pattern with elevated volume dramatically outperforms the same pattern on thin volume. Intraday candlestick signals below the 15-minute chart are dominated by noise; these strategies work best on 1-hour through Daily timeframes where each candle represents meaningful participation.
Three-candle reversal patterns. Morning Star (bullish reversal at bottom) and Evening Star (bearish reversal at top) are among the most reliable candlestick patterns.
Three consecutive strong-bodied candles in the same direction. Three White Soldiers signal bullish reversal, Three Black Crows signal bearish reversal.
Doji candles at key levels signal indecision and potential reversal. Dragonfly, Gravestone, and Long-legged Dojis each have specific meanings.
A hammer candlestick (small body, long lower wick, little/no upper wick) forming at a key support level signals strong buying pressure absorbing selling. The confluence of pattern + level creates high...
Three consecutive strong bullish candles, each closing at or near its high with minimal upper wicks, signal sustained buying pressure. After a base/consolidation, this pattern often marks the start of...