Best Candlestick Patterns Cheat Sheet (2024)

Candlestick patterns are visual representations of assets’ price fluctuations in forex trading. You must know how to read and analyze these patterns to stay on top of your trades and minimize risks. To help you out, here's the best candlestick patterns cheat sheet in 2024.

Key Takeaways

• Candlestick patterns are visual representations of the fluctuations of assets’ prices in trading.

• The candlestick patterns cheat sheet presents single, double, and triple candlestick patterns and confirmation patterns, enabling traders to recognize signals for potential market reversals or continuations.

• Bullish candlestick patterns signal that prices are likely to rise, whereas bearish candlestick patterns indicate that prices might drop.

What Is a Candlestick?

A candlestick is a visual tool for representing price movements in forex trading. It reflects the fluctuations in the price of assets like stocks, cryptocurrencies, or commodities over a specific period. 

But why is it called a candlestick pattern? Because it looks like a candle with a wick on both ends, as you can see in the below candlestick anatomy image.  

The "body" of the candlestick represents the opening and closing prices.

• The opening price is the initial price at which an asset is traded at the start of a trading session.

• However, the closing price is the final price at which it is traded at the end of the session.

The candlestick's body can be red or green.

• If the body is red, the closing price is lower than the opening price (a down or ‘bearish’ period). 

• If it's empty or green, the closing price is higher than the opening price (an up or ‘bullish’ period). 

The "wicks" or "shadows" are the thin lines above and below the body. They indicate the highest and lowest prices during that time.

While these candlestick patterns aren’t perfect indicators, they still provide good insights into the market direction, which is why having a candle stick cheat sheet is important.

History of Candlesticks

Let's walk through the history of candlesticks together. 

1700s: Origin in Japan

• The concept of candlestick charts originated in Japan during the 1700s.

• Munehisa Homma, a Japanese rice trader, is credited with developing these charts. He used them to track rice prices and make better trading decisions.

1800s: Popularity in Japan

Throughout the 1800s, candlestick charting became popular among Japanese traders. They found it helpful for predicting future price movements based on past market trends.

1980s: Introduction to the West

• In the 1980s, an American financial analyst, Steve Nison, discovered candlestick charts. He realized their potential and started studying them.

• Nison introduced candlestick charting to the Western world in 1991 with his book “Japanese Candlestick Charting Techniques.”

1990s: Adoption by Traders Worldwide

By the 1990s, traders around the globe began adopting candlestick charts. They appreciated the detailed and visual representation of price data.

2000s-Present: Mainstream Use in Financial Markets

• Today, candlestick charts are widely used by traders and analysts across various asset classes, from stocks to cryptocurrencies.

• Modern trading platforms feature candlestick charts, making them accessible to anyone interested in trading.

So, from rice trading in 18th-century Japan to global financial markets today, candlestick charts have come a long way. They have now become essential in traders’ day-to-day lives.

Therefore, here’s the best candlestick patterns cheat sheet to help you in your trading journey. 

Candlestick Patterns Cheat Sheet 

Below is a straight-to-the-point candlestick patterns cheat sheet. This candlestick patterns list will help you quickly identify and understand all the patterns. 

 Download Candlestick Cheat Sheet

Top 35 Candlestick Patterns: Bullish vs. Bearish 

Understanding candlestick patterns is critical to trading. There are two main types: bullish and bearish.

• Bullish candlestick patterns signal that prices are likely to rise. Consider them a green light for buying.

• Bearish candlestick patterns indicate that prices might drop. They're like red flags, suggesting that it might be time to sell.

Here’s a breakdown of the most popular bullish and bearish candlestick patterns.

Single Candlestick Pattern

Single candlestick patterns are individual candlestick formations that provide insights into potential market movements.

These patterns are formed by a single trading period and can indicate potential reversals or continuations in the market trend.

Bullish

Bullish single candlestick patterns list:

• Hammer Pattern

• Inverted Hammer Pattern

• Dragonfly Doji Pattern

• Bullish Spinning Top Pattern

• Bullish Marubozu Pattern

Hammer Pattern

This indicator, characterized by a small body and a long lower shadow, indicates a potential reversal from a downtrend to an uptrend.

Inverted Hammer Pattern

The inverted hammer single bullish candlestick pattern features a small body and a long upper shadow.

Dragonfly Doji Pattern

The Dragonfly Doji signals market indecision, with the open and close prices being very close or identical, resulting in a small or nonexistent body.

Bullish Spinning Top Pattern

The bullish spinning top also shows market indecision with a small body and long shadows on both sides, suggesting that neither buyers nor sellers are in control.

Bullish Marubozu Pattern

A bullish Marubozu is a candlestick pattern that signals a potential continuation of an uptrend or the beginning of a new bullish trend. 

This pattern is characterized by a long green (or white) candlestick with no shadows or wicks, meaning that the opening price equals the day's low and the closing price equals the day's high. 

The absence of wicks indicates that buyers were in control throughout the entire trading session, pushing prices higher without any significant selling pressure. 

Traders often view a bullish Marubozu as a sign of strong buying momentum and may use it as a signal to enter long positions, anticipating further upward movement in the asset's price.

Bearish

Bearish single candlestick patterns list:

• Hanging Man Pattern

• Shooting Star Pattern

• Gravestone Doji Pattern

• Bearish Spinning Top Pattern

• Bearish Marubozu Pattern

Hanging Man Pattern

The Hanging Man candlestick pattern resembles a small body with a long lower shadow, appearing after an uptrend. 

It suggests that the market might be about to reverse and head downward.

Shooting Star Pattern

The Shooting Star's small body and long upper shadow indicate a potential reversal to the downside.

Gravestone Doji Pattern

The Gravestone Doji has a long upper shadow and no lower shadow, forming when the open and close prices are the same. 

It suggests that selling pressure overcame buying pressure, hinting at a possible bearish reversal.

Bearish Spinning Top Pattern

The bearish Spinning Top candlestick pattern, with a small body and long shadows on both sides, shows market indecision during an uptrend. 

This can indicate that the trend might be losing momentum and that a reversal could be on the horizon.

Bearish Marubozu Pattern

A bearish Marubozu is a bearish candlestick pattern that indicates a potential continuation of a downtrend or the onset of a new bearish trend. 

This pattern is represented by a long red (or black) candlestick with no shadows or wicks.

Traders often interpret a bearish Marubozu as a sign of strong selling momentum and may use it as a cue to enter short positions, expecting further declines in the asset's price.

Double Candlestick Pattern

Double candlestick patterns involve two consecutive candlesticks and provide insights into potential market reversals or continuations. 

These patterns are more reliable than single candlestick patterns because they reflect more data over two periods, making them valuable for traders.

Bullish

Bullish double candlestick patterns list:

• Bullish Kicker Pattern

• Bullish Engulfing Pattern

• Bullish Harami Pattern

• Piercing Line Pattern

• Tweezer Bottom Pattern

Bullish Kicker Pattern

The bullish kicker candlestick pattern is a strong bullish signal. It occurs when a bearish candle is followed by a bullish candle that opens above the previous candle's price. This indicates a sharp reversal to the upside.

Bullish Engulfing Pattern

The Bullish Engulfing occurs when a small bearish candle is followed by a more significant bullish candle that completely engulfs the previous candle's body, signaling a potential reversal to an uptrend.

Bullish Harami Pattern

The Bullish Harami indicator is a small bullish candle that is completely contained within the previous larger bearish candle's body.

Piercing Line Pattern

The Piercing Line candlestick pattern consists of two candles: a bearish candle followed by a bullish candle. 

The bullish candle opens below the previous candle's low but then closes more than halfway up the body of the bearish candle.

Tweezer Bottom Pattern

The Tweezer Bottom indicator is formed by two or more candlesticks with matching lows, indicating strong support and a potential bullish reversal.

Bearish

Bearish double candlestick patterns list:

• Bearish Kicker Pattern

• Bearish Engulfing  Pattern

• Bearish Harami Pattern

• Dark Cloud Cover Pattern

• Tweezer Top Pattern

• Bearish Counterattack Pattern

• Bearish Meeting Line Pattern

Bearish Kicker Pattern

The Bearish Kicker is a bearish signal. It occurs when a bullish candle is followed by a bearish candle that opens below the previous candle's opening price.

Bearish Engulfing Pattern

The Bearish Engulfing candlestick pattern occurs when a small bullish candle is followed by a larger bearish candle that completely engulfs the previous candle's body.

Bearish Harami Pattern

The Bearish Harami is a small bearish candle that is completely contained within the previous larger bullish candle's body.

Dark Cloud Cover Pattern

The Dark Cloud Cover is where a bullish candle is followed by a bearish candle that opens higher but closes more than halfway down the body of the previous bullish candle.

Tweezer Top Pattern

The Tweezer Top pattern is formed by two or more candlesticks with matching highs, indicating strong resistance and a potential bearish reversal.

Bearish Counterattack Pattern

A bearish counterattack is a two-candlestick bearish reversal candlestick pattern. 

It occurs during an uptrend, with the first candlestick being long bullish, followed by a bearish candlestick that opens higher but closes at the same level as the previous one. 

The matching close prices suggest strong resistance and a shift in market sentiment from bullish to bearish. 

Bearish Meeting Line Pattern

A bearish meeting line is a two-candlestick pattern signaling a potential bearish reversal during an uptrend. 

It starts with a long bullish candlestick, followed by a bearish candlestick that opens higher but closes at the same level as the previous close. 

Triple Candlestick Pattern

Triple candlestick patterns consist of three consecutive candlesticks and provide solid signals for potential market reversals or continuations. 

These patterns are highly reliable in predicting future price movements.

Bullish

Bullish triple candlestick patterns list:

• Morning Star Pattern

• Bullish Abandoned baby Pattern

• Three White Soldiers Pattern

• Three Line Strike Pattern

• Morning Doji Star Pattern

Morning Star

The Morning Star pattern indicates a potential reversal from a downtrend to an uptrend. 

It consists of a long bearish candle, followed by a small-bodied candle (which can be bullish or bearish), and then a long bullish candle that closes well into the body of the first bearish candle.

Bullish Abandoned Baby Pattern

The Bullish Abandoned Baby candlestick pattern is a rare but powerful reversal pattern. 

It features a bearish candle, followed by a doji that gaps below the previous candle, and then a bullish candle that gaps up and closes above the midpoint of the first candle.

Three White Soldiers Pattern

The Three White Soldiers pattern consists of three consecutive long bullish candles with short or no shadows, each opening within the previous candle's body and closing near its high.

Three Line Strike Pattern

The Three Line Strike is a bullish continuation pattern where three bullish candles are followed by a final bearish candle that opens higher and closes lower than the first candle's open. 

Despite the bearish candle, the overall trend remains bullish.

Morning Doji Star Pattern

Similar to the Morning Star, the Morning Doji Star pattern includes a long bearish candle, followed by a doji that gaps down, and then a long bullish candle that closes well into the body of the first bearish candle.

Bearish

Bearish triple candlestick patterns list:

• Bearish Abandoned Baby Pattern

• Three Black Crows Pattern

• Evening Doji Star Pattern

• Evening Star Pattern

Bearish Abandoned Baby Pattern

This pattern features a bullish candle, followed by a doji that gaps above the previous candle, and then a bearish candle that gaps down and closes below the midpoint of the first candle.

Three Black Crows Pattern

The Three Black Crows pattern consists of three consecutive long bearish candles with short or no shadows, each opening within the previous candle's body and closing near its low.

Evening Doji Star Pattern

The Evening Doji Star includes a long bullish candle, followed by a doji that gaps up, and then a long bearish candle that closes well into the body of the first bullish candle.

Evening Star Pattern

Similar to the Evening Doji Star, the middle candle is a small-bodied candle instead of a doji. 

It starts with a long bullish candle, followed by a small-bodied candle that gaps up, and then a long bearish candle that closes well into the body of the first bullish candle.

Confirmation Candlestick Patterns

Confirmation candlestick patterns are multi-candlestick formations that confirm a trend's potential reversal or continuation. 

They provide added assurance by verifying the signals given by preceding candlestick patterns.

Bullish

Bullish confirmations candlestick patterns list:

• Three Inside Up Pattern

• Three Outside Up Pattern

Three Inside Up Pattern

The Three Inside Up pattern begins with a bearish candle. Next, a smaller bullish candle forms within the body of the bearish candle. 

Finally, a second bullish candle appears, closing above the high of the initial bearish candle.

Three Outside Up Pattern

The Three Outside Up pattern starts with a bearish candle. Next, a larger bullish candle forms, completely engulfing the bearish candle. 

Finally, a second bullish candle closes higher than the previous bullish candle. 

Bearish

Bearish confirmations candlestick patterns list:

• Three Inside Down Pattern

• Three Outside Down Pattern

Three Inside Down

The Three Inside Down pattern begins with a bullish candle. Then, a smaller bearish candle forms within the body of the bullish candle.

Finally, a second bearish candle closes below the low of the first bullish candle. 

Three Outside Down

The Three Outside Down pattern starts with a bullish candle. Next, a larger bearish candle forms, completely engulfing the bullish candle. Finally, another bearish candle closes lower than the second candle. 

If you want to know and understand more about candlestick patterns, check out these 43 types of candlestick patterns.

Conclusion

Candlestick patterns are essential for understanding price fluctuations in forex trading.

Knowing how to read and analyze these common candlestick patterns helps you make informed trading decisions and minimize risks. 

Now that you have the best candlestick patterns cheat sheet, you're one step closer to kickstarting your trading journey. Create an account with XS, and let us help you navigate the trading world!

FAQs

How to Study a Candle Chart?

To study a candle chart, you must first understand the various candlestick patterns and what they signify. So, download the above candlestick patterns cheat sheet and go through it thoroughly. 

Start by familiarizing yourself with basic candlestick components: the body, upper shadow, and lower shadow. Observe the patterns formed by one or multiple candlesticks to identify potential trends and reversals. 

Then, practice by analyzing historical charts to see how patterns have played out in real market scenarios.

How is Candlestick Calculated? 

A candlestick is calculated based on four key prices during a specific period: the open, high, low, and close. 

• The candlestick's body represents the difference between the open and close prices, while the shadows (or wicks) show the highest and lowest prices during the period. 

• The color of the candlestick indicates whether the closing price was higher (bullish) or lower (bearish) than the opening price.

How to Read Candlesticks Charts Easily? 

To read candlestick charts easily, focus on identifying common patterns such as doji, hammer, and engulfing patterns. You can recognize the overall trend by looking at the candlesticks. 

Use support and resistance levels to predict potential price movements. Practice consistently, and use visual aids like candlestick patterns cheat sheets to help remember critical patterns.

How to Predict a Candlestick Chart? 

Predicting a candlestick chart involves using technical analysis to identify patterns that suggest future price movements. 

To improve prediction accuracy, combine candlestick analysis with other indicators, such as moving averages, RSI, and MACD. 

Always consider market context and external factors that may influence price action.

What Is a Candlestick Chart Cheat Sheet? 

A candlestick chart cheat sheet is a helpful reference guide that summarizes common candlestick patterns and their meanings. 

It includes visual representations of each pattern, is a quick reference, and can help traders recognize patterns more efficiently while analyzing charts.

How to Download the Candlestick Cheat Sheet in HD? 

To download the candlestick cheat sheet infographic above, follow these steps:

• Click on “Download Candlestick Cheat Sheet” below the infographic. The image will open in a new window.

• Right-click on the image.

• Then click “save as image” in the drop-down menu. The image will be then downloaded.