Chart Patterns Library
🕯️ Candlestick Patterns
Nine patterns every trader should know — what they mean and how to trade them. Practice each one on your free demo account!
Doji
Meaning: Open and close almost equal — indecision. At a top = possible reversal down; at a bottom = possible reversal up.
How to trade: Wait for the NEXT candle to confirm direction before entering.
Hammer
Meaning: Long lower wick, small body at top. Buyers rejected lower prices — bullish reversal signal after a downtrend.
How to trade: Enter on confirmation above the hammer's body; stop below the wick.
Shooting Star
Meaning: Long upper wick, small body at bottom. Sellers rejected higher prices — bearish reversal after an uptrend.
How to trade: Exit longs or enter short below the star's body.
Bullish Engulfing
Meaning: Green candle completely swallows the previous red one — strong buyers took control.
How to trade: Classic reversal entry; place stop below the engulfing candle's low.
Bearish Engulfing
Meaning: Red candle swallows the previous green one — sellers overwhelmed buyers.
How to trade: Reversal down signal; stop above the engulfing candle's high.
Morning Star
Meaning: Big red, small indecision, big green — a three-candle bottom reversal.
How to trade: Among the strongest bottoms; enter on the third candle close.
Evening Star
Meaning: Big green, small indecision, big red — a three-candle top reversal.
How to trade: Strong top signal; good place to take profit or go short.
Three White Soldiers
Meaning: Three big green candles in a row, each closing higher — strong sustained buying.
How to trade: Trend continuation; buy pullbacks while it holds.
Three Black Crows
Meaning: Three big red candles in a row — sustained selling pressure.
How to trade: Avoid catching the falling knife; wait for stabilization.