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Top 20 Candlestick Patterns and How to Trade Them

Top 20 Candlestick Patterns in Forex Trading

Candlestick charts are one of the most effective ways to read the forex market. Every candle tells a story of how buyers and sellers fought during that time. As a trader with over 10 years of experience, I can confidently say that mastering candlestick patterns is one of the fastest ways to improve your trading decisions.

Key Summary

In this guide, we will cover the Top 20 Candlestick Patterns, what they represent, when to expect them, and how to trade them.

Top 20 Candlestick Patterns and How to Trade Them

1. Hammer

2. Inverted Hammer

3. Bullish Engulfing

4. Piercing Line

5. Morning Star

6. Three White Soldiers

7. Shooting Star

8. Bearish Engulfing

9. Evening Star

10. Dark Cloud Cover

11. Three Black Crows

12. Doji

13. Dragonfly Doji

14. Gravestone Doji

15. Spinning Top

16. Marubozu

17. Tweezer Top

When to expect: At the top of an uptrend.

Represents: Reversal signal.

How to trade: Confirm with bearish candle.

18. Tweezer Bottom

19. Harami (Bullish or Bearish)

20. Inside Bar

Bottom Line

Candlestick patterns are powerful tools for reading the psychology of the market. By mastering these Top 20 candlestick patterns, traders can quickly identify reversals, continuations, and indecision points.

FAQs on Candlestick Patterns

Q1: Which candlestick pattern is the most reliable?
A: The Engulfing patterns and Morning/Evening Stars are among the most reliable when confirmed with support/resistance.

Q2: Can candlestick patterns work alone?
A: No. Always combine them with market structure, trend, and support/resistance.

Q3: Do candlestick patterns work in all timeframes?
A: Yes, but higher timeframes (H1, H4, Daily) are more reliable than M1 or M5.

Q4: Can candlestick patterns be used in synthetic indices or crypto?
A: Yes. Price action works across all markets.

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