Ultimate Candlestick Patterns Cheat Sheet

Candlestick patterns are the visual language of the market, reflecting the continuous battle between buyers and sellers in real-time. Having a cheat sheet of the most reliable reversal and continuation patterns allows you to quickly interpret market structure and make rapid, informed trading decisions. They form the basis of a good price action strategy.

However, a word of warning before we dive into the patterns: Memorizing these shapes without understanding the underlying order flow is a recipe for disaster. A Bullish Harami in a random consolidation zone means very little. A Bullish Harami printed exactly at a higher timeframe Order Block is a highly actionable signal. Use this cheat sheet as a tool to identify triggers, not as a standalone strategy.

Single Candle Patterns: Instant Sentiment Checks

Single candlestick patterns provide immediate feedback on the session's action. They are particularly powerful on higher timeframes (Daily, Weekly).

• The Pin Bar (Hammer & Shooting Star): This candle has a small body and an extremely long wick on one side. A long lower wick (Hammer) indicates aggressive rejection of lower prices and buying pressure. A long upper wick (Shooting Star) indicates rejection of higher prices. Pro Tip: The best pin bars sweep liquidity before closing back within the range.
• The Doji: The open and close are at almost exactly the same level, forming a cross shape. The Doji signifies absolute indecision. Neither buyers nor sellers gained ground. When a Doji forms after a prolonged trend, it warns that momentum is exhausting.
• The Marubozu: A large, full-bodied candle with little to no wicks. This shows extreme conviction. If it's bullish, buyers controlled the price from open to close. In SMC terms, a massive Marubozu often leaves behind a Fair Value Gap (FVG) that we can trade on a retest, or a mitigation block if it fails.

Dual Candle Patterns: Confirming the Reversal

Two-candle patterns offer higher reliability because they require confirmation over two sessions.

• The Engulfing Pattern (Bullish & Bearish): The second candle's real body completely engulfs the real body of the first candle. A Bullish Engulfing at support shows buyers entirely wiping out the previous selling pressure. This is one of the strongest reversal signals in price action trading.
• The Harami (Bullish & Bearish): The exact opposite of an engulfing. A small candle is contained within the large body of the preceding candle. It indicates a sudden halt in momentum, acting as a brake on the current trend. For more details, see our Bullish Harami guide.
• Tweezer Tops & Bottoms: Two consecutive candles that share matching highs (Tops) or matching lows (Bottoms). They indicate a rigid level of support or resistance where institutional algorithms are repeatedly stepping in to defend the price. They are very common before a tick trading breakout.

Triple Candle Patterns: The Definitive Shift

Three-candle patterns are the gold standard for confirmation, offering the highest probability (though they often require a larger stop loss).

• Morning Star & Evening Star: A Morning Star (Bullish) consists of a large bearish candle, a small indecision candle (like a Doji) gaping down, and a large bullish candle that pushes deep into the first candle's body. The Evening Star is the bearish equivalent. These represent a complete transition of power from one side to the other.
• Three White Soldiers & Three Black Crows: Three consecutive, large-bodied candles closing near their highs (Soldiers) or lows (Crows). This pattern signifies overwhelming institutional momentum and algorithmic trend continuation. Do not step in front of this pattern.

Context is King (SMC Integration)

As stressed throughout this academy, patterns fail constantly when traded blindly. To elevate your win rate, you must combine this cheat sheet with an institutional narrative. Here is the ultimate checklist for validating any pattern:

1. Where is it forming? Is the pattern occurring at a random price, or is it aligning with a Daily Order Block, a 4H FVG, or a major liquidity pool?
2. What is the HTF Trend? Are you trading a bullish engulfing pattern in a Daily downtrend? If so, you are likely trading a trap. Align your LTF candlestick triggers with the HTF algorithmic bias.
3. What time is it? Patterns formed during the dead Asian session have much lower follow-through than patterns formed during the volatile London or New York opens.

Keep this cheat sheet handy, master the core shapes, but always remember to view them through the lens of liquidity and institutional order flow. Maintaining this discipline is the core of lucid trading psychology.