Master 35 Candlestick Patterns: Your Complete Price Action Roadmap

Candlestick patterns form the foundation of technical analysis in trading. These visual price signals reveal what traders truly think—fear, greed, uncertainty, and confidence—all compressed into a single bar. Understanding 35 essential patterns gives you a powerful toolkit to decode market psychology and execute better trades.

Why Candlestick Patterns Matter

Every candlestick tells a story about the struggle between buyers and sellers. The high, low, open, and close aren’t random—they represent real market decisions made within a specific timeframe. Traders who learn to read these patterns gain an edge in spotting potential reversals, confirming trends, and identifying optimal entry and exit levels.

Four Key Patterns to Start With

Doji: The Indecision Signal When open and close prices nearly align, a Doji forms. This pattern screams indecision—neither bulls nor bears have won the battle. It’s often a precursor to volatility, making it a critical pattern to watch before making your next move.

Hammer: Spotting Bullish Reversals The Hammer appears at the end of downtrends with a small body and a long lower wick. It signals that sellers pushed prices down, but buyers fought back and reclaimed territory. This reversal pattern often marks the turning point where momentum shifts upward.

Hanging Man: Bearish Warning Signal Similar in appearance to the Hammer, the Hanging Man emerges in uptrends. Despite its deceptive resemblance, this pattern warns of potential selling pressure ahead. When it forms near resistance levels, it often precedes a pullback or reversal.

Shooting Star: The Downturn Alert A Shooting Star displays a small body with a long upper wick—the opposite of a Hammer. It shows that buyers pushed prices higher, but sellers overwhelmed them by close. This pattern frequently signals weakness and potential downside risk in uptrends.

Beyond These Four: 31 More Patterns to Master

The complete set of 35 candlestick patterns includes engulfing formations, morning and evening stars, three-bar reversals, and countless continuation signals. Each pattern has specific conditions, reliability rates, and optimal market environments where it performs best.

Building Your Trading Strategy

Don’t rely on a single pattern in isolation. The most successful traders combine multiple candlestick patterns with support and resistance levels, volume analysis, and broader market conditions. Start by mastering these 35 patterns one by one, practice identifying them in past price charts, and gradually apply them in real trading scenarios.

Remember: candlestick patterns are tools, not guarantees. Market psychology shifts with every news event, macroeconomic data release, and sentiment change. Use these patterns as part of a disciplined trading system, manage your risk carefully, and continuously refine your skills as you gain experience.