Technical Analysis Curriculum • Module 4

Candlestick Patterns Mastery

Complete guide to understanding and trading with candlestick patterns. Master 51 candlestick formations, price action psychology, and risk management frameworks.

Interactive LabPattern Simulator v2.4

Tactical Candlestick Simulator & Order-Flow Inspector

Inspect real price action dynamics, confirmed entry triggers, and stop-loss invalidation zones.

Timeframe:15m - 4h
TAKE PROFIT TARGETBREAKOUT ENTRY TRIGGERSTOP LOSS INVALIDATIONTrend SellExhaustionHammer (Rejection)ConfirmationExpansion
Est. Win Rate68%
Average R:R1:2.4
StatusLearning
BULLISHSetup #hammer

Bullish Hammer

Sellers aggressively attempted to create new lows, but heavy spot and institutional limit orders absorbed the dump, forcing price back to open.

Execution Rules

Entry Trigger:Breakout above Hammer high on next candle close
Invalidation / Stop Loss:Below lower shadow wick (tail rejection)
Take Profit Objective:Next overhead resistance / liquidity pool

Smart Money / Liquidity Trap Note

Retail traders who shorted the breakdown get caught off-guard as their buy stops accelerate the ensuing rally.

0 / 51 Mastered

The Anatomy of a Candlestick

Deconstructing Open, High, Low, and Close dynamics

Bullish Candlestick (Demand Controlled)

Close > Open

Reflects strong buyer initiative. Sellers attempted to drive prices down, but buyers absorbed all supply and closed near the session high.

Bearish Candlestick (Supply Controlled)

Close < Open

Reflects aggressive liquidation. Price opened higher, faced steady supply, and closed lower with sellers dictating closing value.

Key Architectural Elements:

• Real Body: The price range between Open and Close. Large bodies indicate aggressive directional momentum.

• Upper Wick (Shadow): The maximum price rejected by sellers during the session interval.

• Lower Wick (Tail): The minimum price absorbed by buyers; indicates resting institutional liquidity.

Candlestick Structure Breakdown

All Formations

Showing 51 patterns matching current criteria

0 of 51 Mastered
Bullish Reversal68% WR

1. Hammer Pattern#1

Characterized by a small body near the top of the candle with a long lower shadow (at least 2x body height). Signals strong price rejection at key support.

1. Hammer Pattern
Bullish Reversal65% WR

2. Inverted Hammer Pattern#2

Appears at the bottom of a downtrend with a small lower body, long upper wick, and little to no lower wick.

2. Inverted Hammer Pattern
Bullish Reversal67% WR

3. Piercing Line Pattern#3

A two-candle reversal formation. A bearish candle followed by a candle opening lower but closing above the 50% midpoint of the prior candle.

3. Piercing Line Pattern
Bullish Reversal72% WR

4. Bullish Engulfing Pattern#4

A small red candle followed by a larger green candle whose real body completely engulfs the prior session's body.

4. Bullish Engulfing Pattern
Bullish Indecision / Pivot62% WR

5. Bullish Spinning Top#5

Compact body positioned symmetrically between long upper and lower shadows.

5. Bullish Spinning Top
Bullish Reversal74% WR

6. The Morning Star Pattern#6

A three-candle bottom formation: long red candle, small gapping star candle, and a strong third green candle.

6. The Morning Star Pattern
Bullish Reversal / Momentum75% WR

7. Three White Soldiers#7

Three consecutive long-bodied green candles with short wicks, each opening inside the prior body and closing near highs.

7. Three White Soldiers
Bullish Reversal69% WR

8. Three Inside Up Pattern#8

A large red candle, a small green candle inside it, and a third candle closing above the first candle's high.

8. Three Inside Up Pattern
Bullish Reversal64% WR

9. Bullish Harami Pattern#9

A small green candle forms completely within the real body of the preceding large red candle.

9. Bullish Harami Pattern
Bullish Reversal66% WR

10. Tweezer Bottom Pattern#10

Two or more candles sharing the exact same low price point at an established support zone.

10. Tweezer Bottom Pattern
Bullish Reversal63% WR

11. Bullish Counterattack Pattern#11

A down candle followed by a gap-down open that rallies sharply to close at the prior day's close.

11. Bullish Counterattack Pattern
Strong Bullish Reversal78% WR

12. Bullish Kicker Pattern#12

A red candle followed immediately by an upward-gapping green candle that never looks back.

12. Bullish Kicker Pattern
Rare Bullish Reversal76% WR

13. Bullish Abandoned Baby#13

A long red candle, a doji gapping down with no shadow overlap, and a green candle gapping upward.

13. Bullish Abandoned Baby
Bullish Reversal73% WR

14. Morning Star Doji#14

Morning star variation featuring a doji as the pivot candle.

14. Morning Star Doji
Bullish Reversal67% WR

15. Dragonfly Doji Pattern#15

Open, high, and close are equal at the top with an exceptionally long lower shadow.

15. Dragonfly Doji Pattern
Bullish Reversal65% WR

16. Bullish Tri-Star Pattern#16

Three consecutive dojis appearing at market bottoms, with the middle doji marking the low.

16. Bullish Tri-Star Pattern
Bullish Trap & Reversal70% WR

17. Bullish Hikkake Pattern#17

An inside bar breaks down falsely before reversing violently upward to trap sellers.

17. Bullish Hikkake Pattern
Bullish Reversal72% WR

18. Concealing Baby Swallow#18

A rare 4-candle bottom formation signaling severe seller depletion.

18. Concealing Baby Swallow
Bullish Reversal66% WR

19. Unique Three Rivers Pattern#19

A long down candle, a lower-shadow hammer, and a small green stabilizing candle.

19. Unique Three Rivers Pattern
Bearish Reversal66% WR

20. Hanging Man Pattern#20

Appears at the peak of an uptrend with a small body at the top and a long lower tail.

20. Hanging Man Pattern
Bearish Reversal69% WR

21. Dark Cloud Cover Pattern#21

A strong bullish candle followed by a candle opening higher but closing below the 50% midpoint.

21. Dark Cloud Cover Pattern
Bearish Reversal73% WR

22. Bearish Engulfing Pattern#22

A green candle followed by a larger red candle whose body completely engulfs the prior candle.

22. Bearish Engulfing Pattern
Bearish Reversal75% WR

23. The Evening Star Pattern#23

A three-candle top formation: long green candle, an isolated star, and a heavy third red candle.

23. The Evening Star Pattern
Strong Bearish Reversal76% WR

24. Three Black Crows Pattern#24

Three consecutive long-bodied red candles closing at or near lows.

24. Three Black Crows Pattern
Bearish Reversal68% WR

25. Three Inside Down Pattern#25

A tall green candle, a small red candle inside it, and a third red candle closing below candle one.

25. Three Inside Down Pattern
Bearish Reversal63% WR

26. Bearish Harami Pattern#26

A small red candle contained inside the large preceding green candle.

26. Bearish Harami Pattern
Bearish Reversal70% WR

27. Shooting Star Pattern#27

Small lower body with a long upper wick (2x+ body length) and little to no lower wick.

27. Shooting Star Pattern
Bearish Reversal67% WR

28. Tweezer Top Pattern#28

Two or more candles sharing the exact same high price point at an established resistance level.

28. Tweezer Top Pattern
Bearish Reversal64% WR

29. Bearish Counterattack Pattern#29

A gap up is immediately countered by an aggressive selloff that closes at the prior day's close.

29. Bearish Counterattack Pattern
Bearish Indecision / Exhaustion61% WR

30. Bearish Spinning Top#30

Symmetric long wicks with a tight body following an extended rally.

30. Bearish Spinning Top
Strong Bearish Reversal79% WR

31. Bearish Kicker Pattern#31

A bullish candle followed immediately by a downward-gapping red candle that plunges lower.

31. Bearish Kicker Pattern
Bearish Reversal74% WR

32. Evening Star Doji Pattern#32

An evening star whose middle candle is a Doji.

32. Evening Star Doji Pattern
Rare Bearish Reversal77% WR

33. Bearish Abandoned Baby#33

A green candle, an isolated doji gapping up with no shadow overlap, and a red candle plunging down.

33. Bearish Abandoned Baby
Bearish Reversal68% WR

34. Gravestone Doji Pattern#34

Open and close are at the low of the session with an exceptionally long upper shadow.

34. Gravestone Doji Pattern
Bearish Reversal66% WR

35. Bearish Tri-Star Pattern#35

Three consecutive Dojis at the summit of a bull market.

35. Bearish Tri-Star Pattern
Bearish Warning64% WR

36. Deliberation Pattern#36

Three green candles where the first two are expansive and the third shrinks into a tiny body.

36. Deliberation Pattern
Bearish Reversal67% WR

37. Upside Gap Two Crows#37

A rare bearish reversal formation during an extended uptrend.

37. Upside Gap Two Crows
Bearish Warning65% WR

38. Advance Block Pattern#38

Three advancing green candles with progressively smaller real bodies and longer upper wicks.

38. Advance Block Pattern
Bearish Continuation72% WR

39. Falling Three Methods#39

A long red candle, three small green consolidation candles, and a heavy fifth breakdown candle.

39. Falling Three Methods
Bullish Continuation74% WR

40. Rising Three Methods#40

A long green candle, three small red consolidation candles, and a strong fifth breakout candle.

40. Rising Three Methods
Bullish Continuation68% WR

41. Upside Tasuki Gap#41

In an uptrend, a green candle gaps up, followed by a red candle that tests the gap without closing it.

41. Upside Tasuki Gap
Bearish Continuation69% WR

42. Downside Tasuki Gap#42

In a downtrend, a red candle gaps down, followed by a green candle that retraces into the gap without filling it.

42. Downside Tasuki Gap
Bullish Continuation73% WR

43. Rising Window Pattern#43

A price gap between two green candles with no overlapping shadows.

43. Rising Window Pattern
Bearish Continuation74% WR

44. Falling Window Pattern#44

A downward price gap between two consecutive red candles.

44. Falling Window Pattern
Bullish Continuation71% WR

45. Three Outside Up Pattern#45

A bullish engulfing pattern followed by a third green candle closing higher.

45. Three Outside Up Pattern
Bearish Continuation72% WR

46. Three Outside Down#46

A bearish engulfing pattern followed by a third red candle closing lower.

46. Three Outside Down
Strong Bullish Momentum77% WR

47. White Marubozu Pattern#47

A long green candle with zero wicks.

47. White Marubozu Pattern
Strong Bearish Momentum78% WR

48. Black Marubozu Pattern#48

A long red candle with zero wicks.

48. Black Marubozu Pattern
Bearish Continuation66% WR

49. On-Neck Pattern#49

In a downtrend, a red candle is followed by a green candle that only closes at the prior candle low.

49. On-Neck Pattern
Bullish Continuation76% WR

50. Mat-Hold Pattern#50

Similar to rising three methods, but the reaction starts with an upward gap.

50. Mat-Hold Pattern
High Volatility Indecision63% WR

51. Long Legged Doji#51

Features long shadows in both directions with open and close identical in the center.

51. Long Legged Doji

Institutional Caveats & Traps

The mathematics of why candlestick patterns fail without macro confluence

1. Market Regime Alignment

A hammer printed inside a choppy low-volatility range has a win rate under 45%. The same hammer at a major higher-timeframe support zone has a 70%+ win rate.

2. Liquidity Sweep Engineering

Smart money intentionally engineers false wick breakouts past obvious retail highs and lows to harvest resting buy/sell stops before reversing.

3. Volume Climax Verification

Reversal formations lacking an above-average volume bar indicate lack of institutional sponsorship and often lead to continuation of the prior move.

4. Multi-Timeframe Hegemony

A 5-minute bullish pattern will always be invalidated by a dominant 4-hour bearish trendline or resistance zone. Always trade in the direction of the higher timeframe.