Candlestick Patterns Overview
An overview of the most important candlestick patterns for forex trading.
Last reviewed: 2026-03-06
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Overview
Candlestick patterns form when one or more candles create a recognizable shape. Reversal patterns signal a potential change in direction. Continuation patterns suggest the trend will resume. No pattern is 100% reliable; use with other analysis.
Reversal Patterns
Bullish engulfing: green candle engulfs prior red candle. Bearish engulfing: opposite. Hammer: small body at top, long lower wick. Shooting star: small body at bottom, long upper wick. Doji: indecision, can precede reversals.
Continuation Patterns
Rising three methods: strong up candle, then small down candles, then another strong up. Falling three methods: opposite. These suggest the trend is pausing before continuing.
Knowledge check
1 of 3Reversal patterns signal:
FAQ
Common questions about this topic.
Are candlestick patterns reliable?
They work best with confirmation from support/resistance, trend, or volume. No pattern guarantees success.
Which patterns are best for beginners?
Start with engulfing, hammer, and doji. They are easy to spot and widely used.
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