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Forex candle stick patterns explained

How to trade forex without indicators?

The answer is you need to recognize candle stick patterns
Here I list the most profitable japanese candlestick patterns


Bearish Candlestick Patterns

To fully qualify a bearish pattern it must form in an uptrend.

bearish candlestick patterns

bearish candlestick patterns


Bearish 3 Candlestick Pattern:

bearish 3 candlestick pattern

bearish 3 candlestick pattern

A long black body followed by several small bodys and ending in another long black body. The small bodys are usually contained within the first black body’s range.
Interpretation: A bearish continuation pattern.


Bearish Harami Candlestick Pattern:

bearish harami candlestick patterm

bearish harami candlestick patterm

A very large white body followed by a small black body that is contained within the previous bar.
Interpretation: A bearish pattern when preceded by an uptrend.


Bearish Harami Cross Candlestick Pattern:

bearish harami cross candlestick pattern

bearish harami cross candlestick pattern


A Doji contained within a large white body.
Interpretation: A top reversal signal


Bearish Engulfing Candlestick Pattern:

bearish engulfing candlestick pattern

bearish engulfing candlestick pattern

A small white body followed by and contained within a large black body.
Interpretation: A top reversal signal.


Evening Star Candlestick Pattern:

evening star candlestick pattern

evening star candlestick pattern

A large white body followed by a small body that gaps above the white body. The third
candlestick is a black body that closes 50% or more into the white body,
Interpretation: A top reversal signal.


Evening Doji Star Candlestick Pattern:

evening doji star candlestick pattern

evening doji star candlestick pattern

A large white body followed by a Doji that gaps above the white body. The third candlestick is a black body that closes 50% or more into the white body.
Interpretation: A top reversal signal, more bearish than the regular evening star pattern.


Shooting Star Candlestick Pattern:

shooting star candlestick pattern

shooting star candlestick pattern

A candlestick with a small body, long upper wick, and little or no lower wick.
Interpretation: A bearish pattern during an uptrend.


Grave stone Doji Candlestick Pattern:

The open and close are at the low of the bar.
Interpretation: A top reversal signal. The longer the upper wick, the more bearish the signal.


Hanging Man Candlestick Pattern:

hanging man candlestick pattern

hanging man candlestick pattern

A small body near the high with a long lower wick with little or no upper wick. The lower wick should be several times the height of the body.
Interpretation: A bearish pattern during an uptrend.


Long Upper Shadow Candlestick Pattern:

long upper shadow candlestick pattern

long upper shadow candlestick pattern

A candlestick with an upper wick that has a length equal to or greater than the range of the candlestick.
Interpretation: A bearish signal.


Three Black Crows Candlestick Pattern:

three black crows candlestick pattern

three black crows candlestick pattern


Three long black candlesticks with consecutively lower closes that close near their lows.
Interpretation: A top reversal signal.


Tweezer Tops Candlestick Pattern:

tweezer tops candlestick pattern

tweezer tops candlestick pattern

Two or more candlesticks with similar tops.
Interpretation: A reversal signal.


Dark Cloud Cover Candlestick Pattern:

dark cloud cover candlestick pattern

dark cloud cover candlestick pattern

A long white body followed by a black body. The following black candlestick opens higher than the white candlestick‘: high and closes at least 50% into the white candlestick’s body.
Interpretation: A bearish reversal signal during an untrend.


Bullish Candlestick Candlestick Patterns

To fully qualify a bullish pattern, it must form during a downtrend.

bullish candlestick patterns

bullish candlestick patterns


Bullish 3 Candlestick Pattern:

bullish 3 candlestick pattern

bullish 3 candlestick pattern

A long white body followed by three small bodies, ending in another long white body. The three small bodies are contained within the first white body.
Interpretation: A bullish continuation pattern.


Bullish Harami Candlestick Pattern:

bullish harami candlestick pattern

bullish harami candlestick pattern


A very large black body is followed by a small white body and is contained within the black body.
Interpretation: A bullish pattern when preceded by a downtrend.


Bullish Harami Cross Candlestick Pattern:

bullish harami cross candlestick pattern

bullish harami cross candlestick pattern

A Doji contained within a large black body.
Interpretation: A bottom reversal pattern.


Bullish Engulfing Candlestick Pattern:

bullish engulfing candlestick pattern

bullish engulfing candlestick pattern


A small black body followed by and contained within a large white body.
Interpretation: A bottom reversal signal.


Morning Star Candlestick Pattern:

morning star candlestick pattern

morning star candlestick pattern


A large black body followed by a small body that gaps below the black
body. The following candlestick is a white body that closes 50% or more into the black body.
Interpretation: A bottom reversal signal.


Morning Doji Star Candlestick Pattern:

morning doji star candlestick pattern

morning doji star candlestick pattern


A large black body followed by a Doji that gaps below the black body. The next candlestick is a white body that closes 50% or more into the black body.
Interpretation: A bottom reversal signal


Hammer Candlestick Pattern:

hammer candlestick pattern

hammer candlestick pattern

A small body near the high with a long lower wick with little or no upper wick.
Interpretation: A bullish pattern during a downtrend.


Inverted Hammer Candlestick Pattern:

inverted hammer candlestick pattern

inverted hammer candlestick pattern


An upside-down hammer with a white or black body.
Interpretation: A bottom reversal signal with confirmation the next trading bar.


Long Lower Shadow Candlestick Pattern:

long lower shadow candlestick pattern

long lower shadow candlestick pattern


A candlestick with a long lower wick with a length equal to or longer than the range of the candlestick.
Interpretation: A bullish signal.


Three White Soldiers Pattern:

three white soldiers candlestick pattern

three white soldiers candlestick pattern


Three white candlesticks with consecutively higher closes that close near their
highs.
Interpretation: A bottom reversal signal.


Tweezer Bottoms Candlestick Pattern:

tweezer bottoms candlestick pattern

tweezer bottoms candlestick pattern


Two or more candlesticks with matching bottoms. The size or color of the candlestick does not matter.
Interpretation: A Minor reversal signal.


Piercing Line Candlestick Pattern:

piercing line candlestick pattern

piercing line candlestick pattern


A black candlestick followed by a white candlestick that opens lower than the black
candlestick’s low, but closes 50% or more into the black body.
Interpretation: A bottom reversal signal.


Neutral Candlestick Patterns

Neutral patterns can be found during updtrend and downtrend, and they indicate indecision.


Doji Candlestick Pattern:

doji candlestick pattern

doji candlestick pattern


The open and close are the same.
Interpretation: Dojis are usually components of many candlestick patterns. This candlestick assumes more importance the longer the vertical line.


Spinning Top Candlestick Pattern:

spinning top candlestick pattern

spinning top candlestick pattern


A candlestick with a small body. The size of the wicks is not critical.
Interpretation: A neutral pattern usually associated with other formations.


I prepared a candlestick patterns pdf , with all the patterns explained above


In case you want to download a candlestick patterns recognition indicator just follow the link below:

Inside Bar Indicator

Inside Bar Indicator for metatrader. The Inside Bar in this indicator is highlighted in a different color.

What is an inside bar in forex?

  • the inside bar is a bar that has the body and the shadows within the range of the previous bar.
Candlestick Pattern Recognition

This candlestick pattern recognition can automatically find the following pattern:

Bullish Patterns:

  • Hammer
  • Bullish Engulfing
  • Piercing Line
  • Bullish Harami

Bearish Patterns:

  • Shooting Star
  • Bearish Engulfing
  • Dark Cloud Cover
  • Bearish Harami

In the option settings you can decide which patterns to show