Technical Analysis › Candlestick Patterns: The Complete Reference

Candlestick Patterns: The Complete Reference

A candlestick pattern is a specific arrangement of one to five bars whose open, high, low, and close describe a recognisable shift in the balance between buyers and sellers. This reference covers every pattern individually, grouped by how many bars it takes to form, because bar count is what determines how long you wait for the signal and how much can change while you wait. Each page gives the exact geometry, the trend context the pattern requires to mean anything, and the look-alike it is most often confused with.

By Swoopr Editorial Team

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Candlestick chart showing a downward trend in the stock market analysis.
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Direct Answer

A candlestick pattern is a specific arrangement of one to five bars whose open, high, low, and close describe a recognisable shift in the balance between buyers and sellers. The same shape carries opposite meaning depending on what preceded it: a hammer and a hanging man are geometrically identical, and only the prior trend separates them. A pattern read without that context is not a weak signal, it is an undefined one.

Common questions

How do you read a candlestick?

Each candle summarises one period of trading with four prices. The body spans the open and the close; the wicks reach the high and the low. A close above the open is conventionally hollow or green, a close below it filled or red. The body shows where the period settled, the wicks show what was rejected, and that distinction is what every pattern below is built from.

Why does context decide whether a pattern means anything?

The same shape carries opposite meaning depending on what preceded it. A hammer and a hanging man are geometrically identical; the hammer appears after a decline and the hanging man after an advance. A pattern read without its prior trend is not a weak signal. It is an undefined one.

Every guide in this section

88 guides in this section.

Reading candlesticks

Start here: anatomy, the context that validates a pattern, and how patterns fail.

Single-bar patterns

One bar carries the whole signal, so it resolves immediately, and gives you the least confirmation.

Two-bar patterns

The second bar defines the pattern against the first, usually by engulfing, piercing, or gapping away from it.

Three-bar patterns

A three-bar sequence describes a turn in progress: thrust, pause, reversal.

Four- and five-bar patterns

The longest formations, mostly continuation patterns that need a full pause to complete.

About the author

This guide was written and reviewed by the Swoopr Editorial Team, which researches and maintains Swoopr Investment's educational library.

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