Top 10 Performing Candlesticks

This usually shows strong momentum and a confident move by sellers (or buyers if it’s the opposite), which is why the pattern is considered powerful. I just wanna ask about that second most powerful candlestick pattern mentioned in the article—the two black gapping. Also, I’ve heard from Smart Money Concepts (SMC) that these gaps tend to get filled eventually, meaning the price often comes back to close that space.

Bearish Continuation

The green candles are all confined inside the bearish bodies’ range. It demonstrates to traders that the bulls lack the strength to buck the trend. Download the 35 powerful candlestick patterns pdf  to enhance your knowledge in technical analysis. Read our 35 Candlestick Patterns PDF in Hindi for easy understanding – Download Now!

Higher volume on confirmation strengthens the pattern’s credibility. The Hammer shows that despite heavy selling, buyers were strong enough to recover and close near the highs. A bullish pin bar has a long lower wick and small body near the top of the range. A bearish pin bar has a long upper wick with a body near the bottom.

The ladder bottom is a five-candle bullish reversal pattern that develops after a strong downtrend. It starts with three consecutive bearish candles, each making lower lows, followed by a small-bodied doji or spinning top that reflects indecision. The final candle is a strong bullish candle that closes above the prior candle’s high, confirming a potential reversal. The dark cloud cover is a bearish reversal pattern that appears at the top of an uptrend. It consists of a strong bullish candle followed by a bearish candle that opens above the previous high but then closes below the midpoint of the first candle’s body.

Bullish Short Line

The second candlestick chart is a long bearish candle that completely engulfs the first candle and shows that the bears are back in the market. It is formed by two candles, the first candle being a bullish candle which indicates the continuation of the uptrend. This resulted in the formation of bearish pattern and signifies that seller are back in the market and uptrend may end. The relationship of the first and second candlestick chart should be of the Bullish Engulfing candlestick pattern. The third candlestick should be a long bullish candlestick confirming the bullish reversal. It consists of three candlesticks, the first being a short bearish candle, the second candlestick being a large bullish candle which should cover the first candlestick.

• It has a small body near the top and a long lower wick, showing that sellers pushed price down but were overpowered by buyers before the close.
• Patterns emerge when multiple candles combine to show momentum shifts.
• The percentage of Gravestone Doji winning trades was 57% versus 43% losing trades, higher than the 55.8% average performance across all candlestick types, in fact, the third best.

The Three Outside Down is a bearish reversal pattern composed of three candles. The Three Outside Down begins with a small green candle, followed by a large red candle that engulfs it, and then another red candle closing lower. The first candle represents bearish dominance, the Doji shows indecision, and the final green candle confirms bullish reversal. According to the Journal of Technical Analysis, Tasuki Gap patterns succeed about 60–65% of the time, especially in strong trending markets. The Falling Three is a bearish continuation pattern that mirrors the Rising Three. The Falling Three consists of a long red candle, three small-bodied upward candles within its range, and a final strong red candle closing below the first.

• The most trading platform use white color to refer to bullish candlesticks.
• Bullish candlestick patterns indicate buyers are gaining control and price is likely to rise.
• Candlestick patterns are visual representations of price movements that show the open, high, low, and close prices for a specific period.

Bullish Breakaway Identification

The Rising Three is a bullish continuation pattern consisting of most powerful candlestick patterns five candles. The Rising Three begins with a strong green candle, followed by three small-bodied candles drifting lower, and ends with another strong green candle that closes above the first. The first candle represents bearish dominance, while the Doji reflects market indecision. The final green candle signals that buyers have regained control.

Morning Doji Star Identification

This pattern signals a shift in momentum, as buyers initially push the price higher, but strong selling pressure forces it to close significantly lower. The morning star is a three-candle bullish reversal pattern that appears at the bottom of a downtrend. This formation signals that selling pressure has weakened, and buyers are beginning to regain control. Patterns are classified as bullish or bearish, depending on the type of signal they provide. Bullish patterns indicate that buying pressure may strengthen, whereas bearish patterns suggest increasing selling pressure and price declines.

The Evening Star: Identifying a Bearish Takeover

The candle that follows a doji often reveals which side wins the next round. A daily candlestick chart shows a security’s open, high, low, and close prices for the day. The wide, rectangular part of the candlestick, called the “real body,” represents the range between the opening and closing prices. Unlike the previous one, this pattern refers to the bullish category. The same way as the Evening Star Pattern, Abandoned Baby is plotted with three bars that indicate the market gap while fresh sellers are still unable to appear on the market. Those crows aren’t always sticking to the script with full-on bearish candlesticks.

The first body is large and bullish, the second is small and neutral, and the third is large and bearish. According to CFA Institute research, Bullish Counterattack patterns achieve a success rate of about 56–59%, with stronger outcomes when confirmed by volume. Confirmation comes with a green candle closing above the counterattack pattern.

A tweezer bottom appears at the bottom of a downtrend and consists of two consecutive candles with nearly identical lows, suggesting that selling pressure is weakening. The evening star is a three-candle bearish reversal pattern that forms at the top of an uptrend. This pattern signals that buying momentum has weakened, and sellers are taking control.

A bearish belt hold appears after an uptrend and has a long bearish candle with little to no upper wick, signaling aggressive selling pressure from the open. The tri star is a rare three-candle reversal pattern that consists of three consecutive doji candles. This pattern indicates extreme market indecision and is usually found at the top or bottom of a trend, signaling a potential reversal. This pattern indicates that the market took a brief pause, but buyers remained in control. It is considered a stronger continuation signal than similar patterns because the bearish candles do not retrace too deeply into the first bullish candle’s range. The pin bar is a single-candle pattern that signals a potential price reversal.