{"id":49274,"date":"2023-12-04T14:05:12","date_gmt":"2023-12-04T08:35:12","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?p=49274"},"modified":"2025-03-26T15:49:51","modified_gmt":"2025-03-26T10:19:51","slug":"35-types-of-candlestick-patterns","status":"publish","type":"post","link":"https:\/\/www.5paisa.com\/finschool\/35-types-of-candlestick-patterns\/","title":{"rendered":"35 Types of Candlestick Patterns For Intraday Trading"},"content":{"rendered":"\t\t
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Candlestick Chart Patterns are technical tools that are more useful than the traditional open, high, low and close (OHLC) bars or simple lines that connect the dots of closing prices. Candlestick Pattern<\/a> build patterns that predicts price direction once completed. The candlestick patterns<\/a> are used for predicting the future price movements. The candlestick patterns are formed by grouping two or more candlestick way. Candlestick chart patterns are best used on daily basis. The idea being that each candle captures a full days\u2019 worth of news data and price action and that\u2019s why candlestick patterns are more useful to long term or swing traders.<\/p>

Here are 35 powerful candlestick patterns for Day Trading that can be divided as <\/strong><\/h2>

1. Bullish Reversal Patterns<\/strong><\/p>

2. Bearish Reversal Patterns<\/strong><\/p>

3. Continuation Patterns<\/strong><\/p>

Bullish Reversal Pattern<\/strong><\/h2>
  1. Hammer<\/strong><\/li><\/ol>

    A Hammer candlestick Pattern<\/a> is a price pattern in candlestick which occurs when the security trading happens significantly lower than its opening price, but rallies within the period close near to opening price. This pattern is called hammer shaped candlestick pattern. In this pattern we can observe a hammer shaped candlestick in which the lower shadow is at least twice the size of the real body. \u00a0The body of the candlestick represents the difference between the opening and closing prices. The shadow shows the high and low period.<\/p>

    \"Hammer<\/p>

    \u00a0 \u00a0 \u00a02. Piercing Pattern<\/strong><\/p>

    Piercing Pattern<\/a> is a multiple candlestick pattern formed after a downtrend indicating a bullish reversal.. Two candles form it, the first candle being a bearish candle indicates the continuation of the downtrend. and the second a bullish one. The second one opens the gap down but closes at more than 50% of the real body of the first one. This shows that the bulls are in the market, and a bullish reversal is taking place.\u00a0<\/p>

    \"Piercing<\/p>

    3.\u00a0 Bullish Engulfing<\/strong><\/p>

    The bullish engulfing<\/a> candle appears at the bottom of a downtrend and indicates a surge in buying pressure. The bullish engulfing pattern often triggers a reversal in\u00a0trend\u00a0as more buyers enter the market to drive\u00a0prices\u00a0up further. The pattern involves two candles with the second candle completely engulfing the body of the previous red candle.<\/p>

    \"Bullish<\/p>

    4. The Morning Star<\/strong><\/p>

    The Morning Star pattern<\/a> is another multiple candlestick chart that is formed post a downward trend, indicating a bullish reversal. Made of 3 candlesticks – the first one is bearish, the second one a Doji, and the third a bullish one. The first candle showcases the downward trend continuation, while the second one indicates indecision in the market. The third bullish candle shows that the bulls are back to reverse the market. In this case, the second candle must be completely out of the real body of the first and third ones.<\/p>

    \"The<\/p>

    5. Three White Soldiers<\/strong><\/p>

    The three white soldiers<\/a> pattern is a bullish candlestick formation on a trading chart that occurs at the bottom of a downtrend. As the name suggests, the pattern consists of three candles, which are green in colour. Traders believe that this formation signals an upcoming price reversal because of the strong buying pressure. These candlestick patterns<\/a> are made of three bullish bodies that do not have long shadows that are open within the real body of the previous candle in the pattern.<\/p>

    \"Three<\/p>

    6. White Marubozu<\/strong><\/p>

    The White Marubozu<\/a>\u00a0is a single candlestick pattern that is formed after a downtrend indicating a bullish reversal. This candlestick has a long bullish body with no upper or lower shadows, which shows that the bulls are exerting buying pressure, and the markets may turn bullish. This single stick pattern is formed post a downward trend that indicates a bullish reversal.<\/p>

    \"White<\/p>

    7.\u00a0 Three Inside Up<\/strong><\/p>

    The three insides<\/a> up is a multi-candlestick pattern that forms post a downward trend. It consists of three candlesticks – the first being a bearish candle, the second a small bullish candle in range of the first one, and the third a long bullish candle confirming the bullish reversal. <\/span>The relationship of the first and second candlestick should be of the bullish Harami candlestick pattern. Traders can take a long position after the completion of this candlestick pattern.<\/p>

    \"Three<\/p>

    8. Bullish Harami<\/strong><\/p>

    The\u00a0Bullish Harami<\/a>\u00a0is multiple candlestick chart pattern which is formed after a downtrend indicating bullish reversal. It consists of two candlestick charts, the first candlestick being a tall bearish candle and second being a small bullish candle which should be in the range of the first candlestick. The first bearish candle shows the continuation of the bearish trend and the second candle shows that the bulls are back in the market. This multi-candle chart pattern consists of two candlesticks – the first one being a tall bearish one, the second being a small bullish one that is in range of the first one. The first candlestick shows a continuation of the bearish trend, while the second shows that the bulls are back in the market.\u00a0<\/p>

    \"Bullish<\/p>

    9. Tweezer Bottom<\/strong><\/p>

    A tweezer bottom pattern<\/a> consists of two\u00a0candlesticks\u00a0that form two valleys or support levels that are equal bottoms. Typically, when the second candle forms, the price cannot break below the first candle and causes a tweezer breakout. This pattern can be seen as a\u00a0reversal\u00a0in a downtrend. I may see the tweezer bottom at a turning point in the market or a reversal of a\u00a0stock. This pattern formation can allow for precision trading by trend traders and good setups for\u00a0dip buying. Tweezer bottom patterns usually occur while the stock is in a downtrend. Once a tweezer bottom is found, look for a reversal. The price should move up. Remember to confirm with more indicators. Have an entry, exit, and stop-loss plan before making the trade. Having a game plan helps traders stay in a trade, as well as helps with emotions.<\/p>

    \"Tweezer<\/p>

    10\u00a0 \u00a0Inverted Hammer<\/strong><\/p>

    The inverted hammer candlestick pattern<\/a> (or inverse hammer) is a candlestick that appears on a chart when there is pressure from buyers to push an asset\u2019s price up. It often appears at the bottom of a downtrend, signaling potential bullish reversal. The inverted hammer pattern gets its name from its shape \u2013 it looks like an upside-down hammer. To identify an inverted hammer candle, look out for a long upper wick, a short lower wick and a small body.<\/p>

    \"Inverted<\/p>

    11. Three Outside Up<\/strong><\/p>

    \u00a0<\/span>Three Outside Up<\/a> is a three-candle bullish trend reversal pattern. A bearish candlestick pattern<\/a> is followed by a bullish candlestick pattern that opens below the closing price and closes above the opening price of its previous candlestick pattern. In other words, the body of the second bullish candle stick pattern engulfs the body of its previous bearish candle stick pattern. Three Outside Up pattern is basically a Bullish Engulfing pattern breakout in the next candle itself. This pattern is stronger than the Bullish Engulfing pattern.<\/span><\/p>

    \"Three<\/p>

    12. On Neck Pattern<\/strong><\/p>

    An on-neck candlestick pattern<\/a> occurs when a long bearish candlestick is followed by a small bullish candlestick following a downtrend, opening and closing near the close of the previous candlestick. The\u00a0on neck pattern\u00a0occurs after a downtrend when a long real bodied bearish candle is followed by a smaller real bodied bullish candle which gaps down on the open but then closes near the prior candle\u2019s close. The pattern is called a neckline because the two closing prices are the same or almost the same across the two candles, forming a horizontal neckline.<\/p>

    \"On<\/p>

    13 Bullish Counterattack<\/strong><\/p>

    \u00a0<\/strong>Bullish Counterattack<\/a> is a reversal pattern that predicts that the current downtrend in the market will reverse in the future. This pattern is a two bar chart that appears during a market downturn. For it to be a bullish reversal pattern, the following conditions must be true:<\/p>