Candlestick Patterns Cheat Sheet 2025 [Free PDF Download]

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Get instant access to our Candlestick Patterns PDF Cheat Sheet and keep the most powerful trading signals at your fingertips. This guide is designed for quick recognition of trading setups, helping you act with confidence and minimize risk. Whether you’re a beginner or an experienced trader, this free PDF guide makes candlestick pattern analysis faster and easier.

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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/blue or green.

• If the body is red/blue, 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.

How to Use This Candlestick Cheat Sheet: The 3 Golden Rules

To get the most out of this candlestick cheat sheet, it’s important to follow three golden rules that turn patterns into practical trading insights:

The Rule of Context

A candlestick pattern never exists in isolation. Always consider the broader market trend, support and resistance levels, and prevailing news or economic data. A bullish reversal pattern in a strong downtrend may not carry the same weight as in a sideways or upward market.

The Rule of Confirmation

Never act on a single candlestick alone. Look for additional signals, such as volume spikes, momentum indicators (like RSI or MACD), or follow-through candles, that confirm the pattern’s validity. Confirmation helps filter out false signals.

The Rule of Confluence

The strongest trading setups occur when multiple factors align. Combine candlestick patterns with technical tools such as moving averages, Fibonacci retracements, or trendlines. The more layers of evidence pointing in the same direction, the higher the probability of a successful trade.

Bullish Candlestick Patterns

Bullish patterns signal a potential end to a downtrend and the start of an upward move. They are most reliable when found at the bottom of a downtrend or at a key support level.

Hammer Candlestick Pattern

Appearance: A small real body at the top of the candle's range and a long lower shadow that is at least twice the length of the body. There is little to no upper shadow.

Psychology: After a sell-off, bears push prices significantly lower. However, by the close, bulls aggressively step in and drive the price back up near the open, indicating a failure of the selling pressure. This is a strong sign of potential reversal.

Bullish Engulfing Candlestick Pattern
 

Appearance: A two-candle pattern. The first candle is a bearish (red) candle. The second candle is a larger bullish (green) candle that completely "engulfs" the real body of the first candle.

Psychology: The downtrend is in play on the first day. The next day, the market opens at or below the prior close, but bulls take absolute control, driving the price high enough to overwhelm the prior day's pessimism. It signifies a sharp shift in momentum.

Morning Star Candlestick Pattern

Appearance: A three-candle pattern. A long bearish candle is followed by a small-bodied candle (Doji or Spinning Top) that gaps down. The third candle is a long bullish candle that gaps up and closes deep into the first candle's body.

Psychology: This pattern shows the transition from selling pressure (first candle) to indecision (second candle) to a new wave of buying pressure (third candle). It's considered one of the most reliable bullish reversal signals.

Piercing Candlestick Pattern

Appearance: A two-candle pattern. A long bearish candle is followed by a bullish candle that opens below the low of the previous candle but closes above the midpoint of the first candle's real body.

Psychology: Similar to the Engulfing pattern, but less aggressive. It shows that buyers are able to recover a significant portion of the prior day's losses, indicating weakening bears.
 

Inverted Hammer Candlestick Pattern

Appearance: Similar to a Hammer but occurs at the bottom of a downtrend. It has a small real body at the lower end of the trading range and a long upper shadow.

Psychology: The long upper shadow indicates that buyers tested higher prices during the session. Although they were rejected, their attempt shows that buying interest is emerging. Confirmation with a bullish candle the next day is key.

Bearish Candlestick Patterns

Bearish patterns suggest a potential end to an uptrend and the start of a downward move. Look for these at the top of an uptrend or near a resistance level.

Shooting Star Candlestick Pattern

Appearance: The bearish counterpart to the Inverted Hammer. It has a small real body at the bottom of the range, a long upper shadow, and little to no lower shadow. It appears after an uptrend.

Psychology: The market rallies during the session, but by the close, sellers force the price down to near its open. This failure to sustain highs is a warning that the uptrend is losing steam.

Bearish Engulfing Candlestick Pattern

Appearance: A two-candle pattern. The first candle is a bullish (green) candle. The second is a larger bearish (red) candle that completely engulfs the real body of the first.

Psychology: The opposite of the Bullish Engulfing pattern. It indicates that sellers have overwhelmed the buyers from the previous day, marking a powerful shift in sentiment from greed to fear.

Evening Star Candlestick Pattern

Appearance: A three-candle pattern and the bearish counterpart to the Morning Star. A long bullish candle is followed by a small-bodied candle that gaps up. The third candle is a long bearish candle that gaps down and closes deep into the first candle's body.

Psychology: This pattern captures the shift from buying, to indecision, and finally to aggressive selling, signaling a definitive trend reversal.

Dark Cloud Cover Candlestick Pattern

Appearance: A two-candle pattern. A long bullish candle is followed by a bearish candle that opens above the high of the first candle but closes below the midpoint of the first candle's real body.

Psychology: This shows that sellers were able to push the price down significantly from the new highs, eroding a large part of the prior day's gains and indicating a loss of bullish conviction.

Hanging Man Candlestick Pattern

Appearance: Identical to the Hammer in shape but occurs after an uptrend. It has a small body and a long lower shadow.

Psychology: It signals that significant selling occurred during the session. Although buyers managed to push the price back up, the appearance of heavy selling pressure after a rally is a major warning sign.

Continuation Candlestick Patterns

Continuation patterns suggest that the prevailing trend is likely to resume after a brief pause or consolidation. They indicate a period of indecision that resolves in the direction of the original trend.

Doji Candlestick Pattern

Appearance: A candle where the open and close are virtually equal, creating a very small or non-existent real body. The Doji represents a perfect equilibrium between buyers and sellers.

Key Types:

• Dragonfly Doji: Signals a potential bullish reversal when found in a downtrend, as buyers rejected lower prices.
• Gravestone Doji: Signals a potential bearish reversal when found in an uptrend, as sellers rejected higher prices.
• Long-Legged Doji: Shows high indecision with long shadows on both sides. In a trend, it can signal exhaustion and a potential reversal.

Spinning Top Candlestick Pattern

Appearance: A small real body with shadows of roughly equal length on both sides.

Psychology: Like the Doji, it indicates indecision. The small body shows little net movement from open to close, and the equal shadows mean neither bulls nor bears gained control. In a trend, it suggests a pause before the next move.
 

Rising Three Methods Candlestick Pattern

Appearance: A five-candle bullish continuation pattern. A long bullish candle is followed by three small bearish (or doji) candles that stay within the range of the first candle. The pattern completes with another long bullish candle that closes above the first candle's close.

Psychology: The trend is up. The small bearish candles represent a brief consolidation or "breather" where sellers cannot make significant progress. The final strong bullish candle confirms that buyers are back in control.
 

Falling Three Methods Candlestick Pattern

Appearance: The bearish counterpart to the Rising Three Methods. A long bearish candle is followed by three small bullish candles that trade within the first candle's range. The pattern ends with a final long bearish candle that closes below the first candle's close.

Psychology: The downtrend is intact. The small bullish candles are a minor pause where buyers are too weak to reverse the trend. The final bearish candle confirms the resumption of selling pressure.

Most Reliable Candlestick Patterns for 2025

Not all candlestick patterns are created equal. Some work best in fast intraday setups, while others shine in longer swing trades. Here are the most reliable patterns to keep in mind for 2025:

Best Candlestick Patterns for Day Trading

For quick, decisive moves, patterns like the Bullish/Bearish Engulfing, Morning Star, and Hammer remain highly effective. These provide rapid signals of reversals or momentum shifts, making them ideal for intraday traders who need quick entry and exit points.

Best Candlestick Patterns for Swing Trading

Swing traders benefit from patterns that capture medium-term momentum. The Evening Star, Three White Soldiers, and Head and Shoulders are excellent for spotting trend continuations or significant reversals over days to weeks. These patterns give traders time to confirm and act strategically.

Candlestick Patterns to Combine with Volume/Indicators

Some patterns grow stronger when paired with volume analysis or indicators. The Doji, for example, signals indecision but becomes more reliable when confirmed by a volume spike or RSI divergence. Similarly, the Bullish Kicker gains weight when supported by MACD crossovers or moving average alignment. Combining candlestick signals with technical tools improves accuracy and reduces false trades.

How to Trade with Candlestick Patterns: Pro Tips & Strategies

Mastering candlestick trading isn’t just about recognizing patterns, it’s about applying them with the right tools, context, and discipline to maximize your trading edge.

Multi-Timeframe Analysis for Stronger Signals

One of the best ways to improve the reliability of candlestick patterns is to apply multi-timeframe analysis. For example, spotting a bullish engulfing on the 1-hour chart becomes far more meaningful if the daily chart also shows an uptrend. Aligning lower- and higher-timeframe signals filters out noise, reduces false entries, and helps traders identify setups with stronger market conviction.

Pattern Stacking: Confluence with Key Levels (S/R, Fibonacci)

Candlestick patterns gain strength when they form around significant technical levels. A hammer candle at a major support line, or a bearish engulfing near a Fibonacci retracement level, signals higher conviction. This “pattern stacking” creates confluence, where multiple technical factors point in the same direction. The more overlap you find between candlestick patterns and support/resistance or Fibonacci zones, the greater the probability of a successful trade.

Best Technical Indicators to Pair with Candles

To refine your trading decisions, combine candlestick patterns with proven technical indicators:

• Moving Averages (Trend): Use 50- and 200-period moving averages to identify long-term trend direction and filter trades in line with momentum.

• RSI (Momentum): An oversold RSI paired with a bullish candlestick strengthens reversal signals, while overbought RSI validates bearish patterns.

• Volume (Confirmation): A spike in trading volume alongside a candlestick pattern confirms market participation and adds credibility to the signal.

Risk Management with Candlestick Patterns

Even the most reliable candlestick patterns can fail. Always manage risk by setting stop-losses below support (for bullish trades) or above resistance (for bearish trades). Avoid risking more than 1–2% of capital per trade and ensure risk-to-reward ratios are favorable. Combining sound risk management with candlestick strategies ensures long-term consistency, even when individual patterns do not play out.

Conclusion

Candlestick patterns are essential for understanding price fluctuations in 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 in 2025.  Download the PDF and keep it open while trading.