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Forex Candlestick Patterns Cheat Sheet
Visual guide to the top 10 most powerful candlestick reversal and continuation patterns every forex trader should master.
Reversal Patterns
Signal trend changes
8 Patterns
Continuation Patterns
Confirm trend strength
3 Patterns
Indecision Patterns
Market uncertainty
1 Pattern
🔄 Reversal Patterns
Hammer / Hanging Man
ReversalFormation: Small body, long lower wick (2x body), minimal upper wick
Context: Hammer at support (bullish), Hanging Man at resistance (bearish)
Reliability: ⭐⭐⭐⭐ (High when confirmed)
Confirmation: Next candle closes above hammer high / below hanging man low
Bullish/Bearish Engulfing
ReversalBullish
Bearish
Formation: Second candle completely engulfs the body of first candle
Context: Appears after significant trend moves
Reliability: ⭐⭐⭐⭐⭐ (Very High)
Entry: Break of engulfing candle high/low with stop beyond pattern
Morning/Evening Star
ReversalMorning Star
Evening Star
Formation: Three candles - large, small (star), large opposite color
Context: Strong reversal after extended trends
Reliability: ⭐⭐⭐⭐⭐ (Very High)
Key: Gap between star and both outer candles increases reliability
Pin Bar (Pinocchio Bar)
ReversalBullish
Bearish
Formation: Small body, very long wick (3x+ body size)
Context: Price rejection at key support/resistance levels
Reliability: ⭐⭐⭐⭐ (High at key levels)
Entry: 50% retracement of pin bar or break of body
Shooting Star
ReversalFormation: Small body at bottom, long upper wick, minimal lower wick
Context: Appears after uptrend, shows rejection at highs
Reliability: ⭐⭐⭐ (Moderate, needs confirmation)
Confirmation: Next candle closes below shooting star low
Dark Cloud Cover
ReversalFormation: Bullish candle followed by bearish candle opening above and closing below midpoint
Context: Bearish reversal after uptrend
Reliability: ⭐⭐⭐⭐ (High)
Key: Deeper penetration into first candle = stronger signal
Piercing Line
ReversalFormation: Bearish candle followed by bullish candle opening below and closing above midpoint
Context: Bullish reversal after downtrend
Reliability: ⭐⭐⭐⭐ (High)
Key: Deeper penetration into first candle = stronger signal
Three Soldiers / Crows
ReversalWhite Soldiers
Black Crows
Formation: Three consecutive candles of the same color, with higher/lower closes
Context: Strong, sudden change in trend direction
Reliability: ⭐⭐⭐⭐⭐ (Very High)
Key: Each candle's open is within the previous candle's body
📈 Continuation Patterns
Marubozu
ContinuationBullish
Bearish
Formation: Large body, no wicks or very small wicks
Context: Strong momentum continuation
Reliability: ⭐⭐⭐⭐ (High)
Signal: Extreme bullish/bearish sentiment
Rising/Falling Three
ContinuationRising Three
Formation: Large candle, 3 small opposite candles, large continuation candle
Context: Brief consolidation within trend
Reliability: ⭐⭐⭐ (Moderate)
Key: Small candles stay within first candle's range
Spinning Tops
ContinuationFormation: Small body with upper and lower wicks
Context: Indecision within existing trend
Reliability: ⭐⭐ (Low as standalone)
Note: Often precedes trend continuation after brief pause
⚖️ Indecision Pattern
Doji
IndecisionStandard Doji
Dragonfly
Gravestone
Formation: Open and close at same level (or very close), long wicks
Context: Indecision in the market, often seen at turning points
Reliability: ⭐⭐⭐⭐ (High when confirmed by next candle)
Note: A Doji can signal a reversal, but confirmation is key.
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