Candlestick Patterns Cheat Sheet for Crypto Traders

Candlestick patterns are the language of price action. Here’s a quick reference to the most important patterns.

Single Candlestick Patterns

Pattern	Looks Like	Signal
Doji	Open ≈ Close, small body	Indecision, potential reversal
Hammer	Small body at top, long lower wick	Bullish reversal (in downtrend)
Shooting star	Small body at bottom, long upper wick	Bearish reversal (in uptrend)
Marubozu	No wicks, full body	Strong momentum continuing
Spinning top	Small body, long wicks both sides	Indecision

Two-Candlestick Patterns

Pattern	Signal
Bullish engulfing	Green candle fully engulfs previous red candle → bullish
Bearish engulfing	Red candle fully engulfs previous green candle → bearish
Piercing line	Green closes above 50% of previous red → bullish
Dark cloud cover	Red closes below 50% of previous green → bearish
Tweezer top	Two candles with same high → bearish reversal
Tweezer bottom	Two candles with same low → bullish reversal

Three-Candlestick Patterns

Pattern	Signal
Morning star	Long red → doji → long green
Evening star	Long green → doji → long red
Three white soldiers	Three consecutive long green candles
Three black crows	Three consecutive long red candles
Three inside up	Long red → small green inside → green above
Three outside down	Long green → small red inside → red below

Reversal Patterns (Most Reliable)

Pattern	Reliability	Volume Confirm
Bullish engulfing at support	High	High volume on engulfing candle
Morning star	High	High volume on third candle
Hammer with long wick	Medium	Volume increase
Double bottom	High	Volume at second bottom

Continuation Patterns

Pattern	Signal
Rising three methods	Long green → 3 small reds → long green
Falling three methods	Long red → 3 small greens → long red

How to Use Candlestick Patterns

Context matters — A hammer in an uptrend is meaningless. A hammer in a downtrend is a signal.
Volume confirms — Strong patterns need strong volume
Higher timeframes — Patterns on 1H, 4H, daily are more reliable than 1-minute
Wait for close — Don’t act until the candle closes
Combine with levels — A reversal pattern at support/resistance is much stronger

Common Mistakes

Mistake	Better Approach
Trading every pattern	Be selective — wait for clear setups
Ignoring the trend	Only trade patterns in trend direction
No confirmation	Wait for next candle to confirm
Low timeframe patterns	Focus on 1H+ for reliability

Candlestick Anatomy

      Upper wick (high)
   ┌──────────┐
   │          │
   │   Body   │ ← open (red) or close (green)
   │          │
   └──────────┘
      Lower wick (low)

Green (or white) = close higher than open Red (or black) = close lower than open

Bottom Line

Candlestick patterns are a language, not a crystal ball. Learn the major reversal and continuation patterns, use them in context of the broader trend, and always wait for confirmation. A pattern at a support or resistance level with volume confirmation is your highest-probability setup.