Forex Candlestick Patterns Cheat Sheet

Formation: 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

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

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

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

Formation: 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

Formation: 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

Formation: 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

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

Formation: Large bearish candle followed by a small bullish candle contained within its body

Context: Bullish reversal after a downtrend

Reliability: ⭐⭐⭐⭐ (High)

Key: Small candle indicates reduced selling pressure

Formation: Large bullish candle followed by a small bearish candle contained within its body

Context: Bearish reversal after an uptrend

Reliability: ⭐⭐⭐⭐ (High)

Key: Small candle indicates reduced buying pressure

Formation: Large body, no wicks or very small wicks

Context: Strong momentum continuation

Reliability: ⭐⭐⭐⭐ (High)

Signal: Extreme bullish/bearish sentiment

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

Formation: Small body with upper and lower wicks

Context: Indecision within existing trend

Reliability: ⭐⭐ (Low as standalone)

Note: Often precedes trend continuation after brief pause