Candlestick Pattern Terms

A candlestick chart displays open, high, low, close (OHLC) for each period using colored rectangles (bodies) and lines (wicks). Green/white candles show bullish periods, red/black show bearish. Candlesticks reveal price action and market psychology better than line charts.

Dark Cloud Cover is a bearish candlestick reversal where a strong rally candle is followed by a candle that closes deep into the prior body.

A doji is a candlestick where open and close prices are virtually identical, creating a small or nonexistent body with wicks above/below. It signals market indecision - neither buyers nor sellers gained control. Dojis at trend extremes can signal potential reversals.

An engulfing pattern is a two-candle reversal where the second candle fully engulfs the first. Bullish engulfing (large green candle engulfs small red) signals potential upside reversal. Bearish engulfing (large red engulfs small green) signals potential downside reversal.

The Evening Star is a bearish three-candle reversal pattern that signals buyers are losing control after an uptrend.

A hammer is a bullish reversal candlestick with a small body and long lower wick, appearing after downtrends. It signals sellers pushed price down but buyers regained control.

A harami is a two-candle reversal pattern where a small candle is contained within the previous large candle's range, signaling potential trend exhaustion.

A marubozu is a full-bodied candlestick with little or no wicks, showing relentless one-sided order flow from open to close.

Morning Star is a three-candle bullish reversal pattern appearing at downtrend bottoms, consisting of a bearish candle, a small-bodied star, and a strong bullish candle.

Piercing pattern is a two-candle bullish reversal where a bearish candle is followed by a bullish candle that opens lower but closes within the upper half of the first candle's body.

A shooting star is a bearish reversal candle with a tiny body near the low and a long upper wick that appears after an uptrend. It signals buyers were rejected and selling pressure may follow when confirmed by the next candle.

Three Black Crows is a bearish candlestick pattern of three consecutive long-bodied red candles closing lower, signaling potential trend reversal.

Three White Soldiers is a bullish candlestick formation with three strong green candles that close progressively higher, hinting at trend reversal or continuation.

A tweezer top/bottom is a two-candle reversal signal where back-to-back highs or lows match closely, highlighting rejection of a price level and potential trend change.