The Complete Candlestick Pattern Library
This is your visual reference for every essential candlestick pattern. For each one you'll see the exact formation, what it means, the direction it implies, a bullish-reversal / bearish-reversal / continuation tag, and a real crypto chart example showing where it appears. Bookmark this lesson and return to it whenever you spot a setup.
How to use this library
A candlestick pattern is only as good as its location and confirmation. The same shape can be bullish or bearish depending on where it appears — a hammer at the bottom of a downtrend is a hammer; the identical shape at a top is a hanging man. Use these three rules with every pattern below.
- 1Location: patterns only matter at meaningful levels — support, resistance, or the end of a trend.
- 2Confirmation: wait for the next candle to confirm the signal before acting. A pattern is a hint, not a guarantee.
- 3Context: combine the pattern with trend, volume and structure. Confluence turns a hint into a high-probability trade.
Each card is tagged Bullish reversal (price expected up), Bearish reversal (down), Continuation (trend resumes) or Indecision. The mini chart embeds the actual pattern on BTC, ETH or SOL so you can see it in real context.
The pattern library
Single candle patterns5
Doji
Open and close are almost equal, leaving a tiny body with wicks on both sides. It signals a balance of power between buyers and sellers — indecision. After a strong trend it warns momentum is stalling, but it always needs a confirmation candle before you act.
Example · BTC/USDT (4H): Doji at the top of a rally — momentum stalls before the pullback.
Hammer
A small body near the top with a long lower wick (at least twice the body) and little to no upper wick. It shows sellers drove price down but buyers absorbed the supply and pushed it back up. Appearing at the bottom of a downtrend, it's a classic bullish reversal signal.
Example · ETH/USDT (1D): Hammer prints at support after a sell-off — buyers reclaim control.
Inverted Hammer
A small body near the low with a long upper wick, occurring after a downtrend. Buyers tested higher prices before sellers pushed back, but the attempt hints that downside momentum is fading. It needs a strong bullish confirmation candle to validate the reversal.
Example · SOL/USDT (4H): Inverted hammer at a swing low — first sign buyers are stepping in.
Shooting Star
The same shape as the inverted hammer — small body near the low, long upper wick — but appearing at the top of an uptrend. Buyers pushed to new highs and were firmly rejected, leaving a long upper shadow. It's a bearish reversal warning that demand is exhausted.
Example · BTC/USDT (1D): Shooting star rejects resistance at the highs — distribution begins.
Hanging Man
Identical in shape to the hammer — small body, long lower wick — but it forms at the top of an uptrend. The long lower wick shows sellers were active even as price made highs. Location is everything: this is a bearish reversal signal, the mirror of the hammer.
Example · ETH/USDT (4H): Hanging man at the top of a rally — sellers testing the highs.
Two candle patterns6
Bullish Engulfing
A small red candle is completely engulfed by a larger green candle that opens below the prior close and closes above the prior open. Buyers have overwhelmed sellers in a single session. At the end of a downtrend it's one of the most reliable bullish reversal patterns.
Example · SOL/USDT (1D): Green candle engulfs the prior red at support — momentum flips up.
Bearish Engulfing
A small green candle is engulfed by a larger red candle that opens above the prior close and closes below the prior open. Sellers have seized control in one session. At the top of an uptrend it's a strong bearish reversal signal.
Example · BTC/USDT (4H): Red candle engulfs the prior green at resistance — sellers take over.
Piercing Pattern
A long red candle is followed by a green candle that gaps down on the open but closes back above the midpoint of the red body. Buyers rejected the lower prices aggressively. It's a two-candle bullish reversal — slightly weaker than a full engulfing.
Example · ETH/USDT (1D): Green candle pierces above the red's midpoint — buyers respond.
Dark Cloud Cover
The bearish mirror of the piercing pattern: a long green candle followed by a red candle that gaps up but closes below the midpoint of the green body. Sellers rejected the higher prices. At the top of an uptrend it warns of a bearish reversal.
Example · SOL/USDT (4H): Red candle closes deep into the prior green — demand fades at the top.
Tweezer Bottom
Two candles with matching lows back to back — first red, then green — after a downtrend. The identical lows show a price floor that sellers couldn't break twice. It's a bullish reversal signal marking strong support.
Example · BTC/USDT (1D): Two matching wicks defend the same low — a floor forms.
Tweezer Top
Two candles with matching highs — first green, then red — after an uptrend. The identical highs reveal a ceiling buyers couldn't break twice. It's a bearish reversal signal marking strong resistance.
Example · ETH/USDT (4H): Two matching wicks reject the same high — a ceiling forms.
Three candle patterns4
Morning Star
A three-candle bottom: a large red candle, a small-bodied 'star' that gaps down (indecision), then a large green candle that closes well into the first candle's body. It maps the handover from sellers to buyers and is a powerful bullish reversal.
Example · SOL/USDT (1D): Big red → indecision star → big green: the bottom is in.
Evening Star
The bearish mirror of the morning star: a large green candle, a small 'star' that gaps up, then a large red candle closing deep into the first body. It marks the handover from buyers to sellers at a top — a strong bearish reversal.
Example · BTC/USDT (1D): Big green → indecision star → big red: the top is in.
Three White Soldiers
Three consecutive long green candles, each opening within the prior body and closing at a new high with small upper wicks. It shows steady, building accumulation. Emerging from a base it's a strong bullish reversal — but beware if it appears already extended.
Example · ETH/USDT (4H): Three strong green closes in a row — sustained buying pressure.
Three Black Crows
Three consecutive long red candles, each opening within the prior body and closing at a new low with small lower wicks. It signals sustained distribution and selling pressure. At the top of an uptrend it confirms a bearish reversal.
Example · SOL/USDT (4H): Three falling red closes in a row — sellers in firm control.
No candlestick pattern wins every time. Always trade with a defined stop (just beyond the pattern's invalidation), risk a fixed small percentage, and let confirmation and confluence filter out the weak setups.
Key takeaways
- Location + confirmation + context = a valid pattern
- Bullish reversal: hammer, inverted hammer, bullish engulfing, piercing, tweezer bottom, morning star, three white soldiers
- Bearish reversal: shooting star, hanging man, bearish engulfing, dark cloud cover, tweezer top, evening star, three black crows
- Doji = indecision — needs confirmation
- Same shape, different context: hammer vs hanging man · inverted hammer vs shooting star
- Always trade with a stop beyond the pattern's invalidation
Test your knowledge
1. A hammer and a hanging man have the same shape. What makes them different?
2. What confirms a bullish engulfing pattern as a reversal?
3. A doji primarily signals…
Frequently asked questions
Yes — candlesticks reflect human and algorithmic order flow, which is universal. They work across BTC, ETH, SOL and altcoins, though crypto's higher volatility means confirmation and risk management matter even more.
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