Candlestick Cheat Sheet

Single-Candle Patterns
Pattern Shape Meaning Action
Doji Cross (+) Indecision, trend may reverse Wait for confirmation
Hammer T-shape (long lower wick) Bullish reversal (after downtrend) Look for BUY
Inverted Hammer Upside-down T Possible bullish reversal Wait for strong bullish candle
Shooting Star Upside-down T (long upper wick)Bearish reversal (after uptrend) Look for SELL
Spinning Top Small body, long wicks Market uncertainty Wait for trend confirmation

Double-Candle Patterns
Pattern Structure Meaning Action
Bullish Engulfing Small red → large green engulfing Buyers take control Look for BUY
Bearish Engulfing Small green → large red engulfing Sellers take control Look for SELL
Tweezer Bottoms Red then green, same low Bullish reversal Look for BUY
Tweezer Tops Green then red, same high Bearish reversal Look for SELL

Triple-Candle Patterns
Pattern Structure Meaning Action
Morning Star Red → small → green Bullish reversal Look for BUY
Evening Star Green → small → red Bearish reversal Look for SELL
Three White Soldiers 3 strong green candles Strong bullish momentumBuy cautiously (check overbought)
Three Black Crows 3 strong red candles Strong bearish momentum Sell cautiously (check oversold)

Tips for Using Candles Effectively

1. Always confirm with the next candle before entering.
2. Combine candlestick analysis with support/resistance levels.
3. Use indicators (RSI, MACD, Moving Averages) to filter false signals.
4. Always manage risk: set a stop-loss.
 Advanced Candlestick Cheat Sheet – Continuation
Patterns

Continuation Candlestick Patterns

Pattern Structure Meaning Advanced Explanation Action

sing ThreeLong
Methods
green, 3 smallThe
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thensmall
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lling Three Methods
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for SELL
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next big
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Enter BUY
up confirms
on confirma
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Three Inside Down
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Second
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candle
big red inside
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first shows reduced buying pressure, third candle breaking
Enter SELL
downon
confirms
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be
side Gap Two Crows
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redsBearish
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continuation
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sellers
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rejecting
position
hi
One
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Advanced Trading Tips

1. Continuation patterns are stronger when aligned with overall trend and volume.
2. Use multiple timeframe analysis – confirm pattern on daily and 4H charts.
3. Avoid trading continuation patterns against strong support/resistance zones.
4. Always confirm with other tools (trendlines, moving averages, RSI divergence).
5. Manage risk carefully – continuation setups can fail if market sentiment shifts suddenly.