Candlestick charts are an essential tool for technical traders in the financial markets.
They provide a visual representation of price movements and are a key component in analyzing potential trends and reversals.
One of the most asked questions is “How Many Candlestick Patterns Are There?“
But did you know that there are over 90 different candlestick patterns that traders use to analyze the market?
From simple one-candle patterns to complex multi-candle formations, each pattern provides unique insights into market behaviour.
While not all patterns are equally important or reliable, understanding the basics of candlestick patterns is crucial for any trader looking to make informed trading decisions.
So, let’s dive into the fascinating world of candlestick patterns and explore how they can help us gain an edge in the market.
How Many Candlestick Patterns Are There?
There are over 90 different candlestick patterns that traders use to analyze the market. However, not all patterns are equally important or reliable. Traders usually focus on a few key patterns that have proven to be effective in their trading strategy.
Below we have 97 candlestick patterns that cover the majority of them.
Key Takeaways
- There are over 90 different candlestick patterns used by traders to analyze the market, but not all are equally important or reliable.
- Candlestick patterns provide traders with a visual representation of the market, helping them identify potential trends and reversals in the market.
- Candlestick charts were developed in Japan in the 18th century by a rice trader named Munehisa Homma and were later adopted by traders in other markets.
- Traders usually focus on a few key patterns that have proven to be effective in their trading strategy.
- The provided list of 97 candlestick patterns covers the majority of them and includes single candlestick patterns, two-candlestick patterns, three-candlestick patterns, four-candlestick patterns, and five-candlestick patterns.
- Candlestick patterns are important tools for traders to make informed trading decisions.
What are Candlestick Patterns?
Candlestick patterns are a way of visually representing price movements in a financial market. They consist of a series of bars that show the open, high, low, and close prices of an asset for a given time period. Each candlestick represents a single trading session or period.
Candlestick charts were developed in Japan in the 18th century by a rice trader named Munehisa Homma. The charts were used to track the price of rice and were later adopted by traders in other markets.
Why Are Candlestick Patterns Important?
Candlestick patterns are important because they provide traders with a visual representation of the market. They help traders identify potential trends and reversals in the market. This information can be used to make informed trading decisions.
A Complete List of All Candlestick Patterns
Below you will find a table that is categorized for all candlestick patterns that are popular, although there are more which are not as well known.
| Candlestick Pattern | No. of Candles | Type |
|---|---|---|
| Belt hold, bearish | Single | Bearish |
| Belt hold, bullish | Single | Bearish |
| Candle, black | Single | Continuation |
| Candle, short black | Single | Continuation |
| Candle, short white | Single | Continuation |
| Candle, white | Single | Continuation |
| Doji, dragonfly | Single | Bullish |
| Doji, gapping down | Single | Bullish |
| Doji, gapping up | Single | Bearish |
| Doji, gravestone | Single | Bearish |
| Doji, long legged | Single | Continuation |
| Doji, northern | Single | Continuation |
| Doji, southern | Single | Bullish |
| Hammer | Single | Bullish |
| Hanging man | Single | Bullish |
| High wave | Single | Continuation |
| Long day, black | Single | Continuation |
| Long day, white | Single | Continuation |
| Marubozu, black | Single | Continuation |
| Marubozu, closing black | Single | Continuation |
| Marubozu, closing white | Single | Continuation |
| Marubozu, Opening Black | Single | Continuation |
| Marubozu, Opening White | Single | Continuation |
| Marubozu, white | Single | Continuation |
| Rickshaw man | Single | Continuation |
| Shooting star | Single | Bearish |
| Spinning top, black | Single | Continuation |
| Spinning top, white | Single | Continuation |
| Takuri line | Single | Bullish |
| Above the Stomach | Two | Bullish |
| Below the Stomach | Two | Bearish |
| Dark cloud cover | Two | Bearish |
| Doji star, bearish | Two | Bearish |
| Doji star, bullish | Two | Bullish |
| Engulfing, bearish | Two | Bearish |
| Engulfing, bullish | Two | Bullish |
| Hammer, inverted | Two | Continuation |
| Harami cross, bearish | Two | Bearish |
| Harami cross, bullish | Two | Bullish |
| Harami, bearish | Two | Bearish |
| Harami, bullish | Two | Bullish |
| Homing pigeon | Two | Continuation |
| In neck | Two | Continuation |
| Kicking, bearish | Two | Bearish |
| Kicking, bullish | Two | Bullish |
| Last engulfing bottom | Two | Bullish |
| Last engulfing top | Two | Bearish |
| Matching low | Two | Bullish |
| Meeting lines, bearish | Two | Bearish |
| Meeting lines, bullish | Two | Bullish |
| On neck | Two | Continuation |
| Piercing pattern | Two | Bullish |
| Separating lines, bearish | Two | Bearish |
| Separating lines, bullish | Two | Bullish |
| Thrusting | Two | Bullish |
| Tweezers Bottom | Two | Bullish |
| Tweezers top | Two | Bearish |
| Abandoned baby, bearish | Three | Bearish |
| Abandoned baby, bullish | Three | Bullish |
| Advance block | Three | Continuation |
| Deliberation | Three | Continuation |
| Doji star, collapsing | Three | Bearish |
| Downside gap three methods | Three | Bullish |
| Downside Tasuki Gap | Three | Bullish |
| Evening doji star | Three | Bearish |
| Evening star | Three | Bearish |
| Hikkake, bearish | Three | Bearish |
| Hikkake, bullish | Three | Bullish |
| Identical three crows | Three | Bearish |
| Morning doji star | Three | Bullish |
| Morning star | Three | Bullish |
| Side by side white lines, bearish | Three | Bearish |
| Side by side white lines, bullish | Three | Bullish |
| Stick sandwich | Three | Bearish |
| Three black crows | Three | Bearish |
| Three inside down | Three | Bearish |
| Three inside up | Three | Bullish |
| Three outside down | Three | Bearish |
| Three outside up | Three | Bullish |
| Three stars in the South | Three | Bullish |
| Three white soldiers | Three | Bullish |
| Tri-star, bearish | Three | Bearish |
| Tri-star, bullish | Three | Bullish |
| Two crows | Three | Bearish |
| Unique three-river bottom | Three | Bearish |
| Upside gap three methods | Three | Bearish |
| Upside gap two crows | Three | Bullish |
| Upside Tasuki gap | Three | Bullish |
| Concealing baby swallow | Four | Continuation |
| Three line strike, bearish | Four | Bearish |
| Three line strike, bullish | Four | Bullish |
| Breakaway, bearish | Five | Bearish |
| Breakaway, bullish | Five | Bullish |
| Falling 3 methods | Five | Continuation |
| Ladder bottom | Five | Bullish |
| Mat hold | Five | Continuation |
| Rising 3 methods | Five | Continuation |
What is the best candlestick pattern to trade?
There is no single candlestick pattern that is considered the “best” for trading. The effectiveness of a candlestick pattern depends on various factors such as the market conditions, timeframe, and the trader’s individual trading strategy.
Some traders prefer to focus on simpler and more common patterns such as the bullish and bearish engulfing patterns, the hammer and the inverted hammer, and the doji. These patterns have been found to be effective in identifying potential trend reversals and can be used in conjunction with other technical indicators.
Other traders prefer to use more complex patterns such as the three black crows or the morning star. These patterns can be more difficult to identify and require more experience and skill to trade effectively.
Ultimately, the best candlestick pattern to trade depends on the trader’s individual style, risk tolerance, and overall trading strategy. It is important for traders to do their own research and testing to find the patterns that work best for them.
Conclusion
Candlestick patterns are an important tool used by traders to analyze the market. There are several types of patterns, including single, double, and triple candlestick patterns.
While there are over 90+ different candlestick patterns, traders usually focus on a few key patterns that have proven to be effective in their trading strategy.
In this article, we provided a table showing all candlestick patterns and answered the question “How Many Candlestick Patterns Are There”.
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