Learn Candlesticks Candlestick Patterns Cheat Sheet
Candlestick Patterns Cheat Sheet
This cheat sheet is a quick reminder of what common candlestick patterns usually suggest — in plain English. Use it with levels and structure. A pattern alone is not a trade.
Risk warning: This content is for educational purposes only and not financial advice. Forex trading involves risk, and you can lose money.
Candlestick patterns (how to use this sheet)
This cheat sheet helps you recognize common candlestick patterns fast — but patterns work best as context clues, not standalone trade signals.
- Start with context: trend direction and key levels matter most
- Use confirmation: wait for follow-through, not just one candle
- Respect costs: tight targets get eaten by spreads and noise
- Risk first: define stop loss and position size before entry
First context, then candle. Never the other way around.
How to use this cheat sheet (60 seconds)
- 1) Location: is the pattern at a key support/resistance area?
- 2) Market state: trend or range? → price action basics
- 3) Confirmation: wait for the candle close → body & wicks
- 4) Risk plan: define stop loss and position sizing first.
Want this as a clean one-page handout?
Quick access (patterns)
1-candle patterns (signals of hesitation or rejection)
- Doji: pause/indecision. Best after a strong move or at a level. Needs confirmation.
- Pin bar: rejection (long wick, small body). Best at support/resistance or after a “sweep”. Confirm with follow-through.
2-candle patterns (takeover or compression)
- Engulfing: momentum takeover (second body overtakes prior body). Strongest at a level after a clear push.
- Inside bar: compression (range shrinks inside the mother bar). Great for trend continuation or range edges. Direction is unknown without context.
3-candle patterns (transition sequence)
- Morning star: down move → pause → bullish confirmation. Best near support.
- Evening star: up move → pause → bearish confirmation. Best near resistance.
Fast confirmation rules (beginner-friendly)
- Doji: wait for a strong close beyond the doji high/low (or structure shift).
- Pin bar: confirmation = follow-through away from the wick (don’t enter mid-candle).
- Engulfing: strongest when the close is decisive (not a tiny engulf in noise).
- Inside bar: the “line in the sand” is the mother bar high/low (break + context).
Stop placement shortcuts (invalidation first)
- Rejection candles (pin/hammer): stop commonly goes beyond the wick (if that breaks, rejection failed).
- Engulfing: stop often beyond the engulfing candle’s extreme (or structure).
- Inside bar: stop commonly on the opposite side of the mother bar (or structure), not inside the box.
Then size the trade based on that stop → position sizing.
When patterns lie (timing traps)
- Sunday open: thin liquidity can print weird wicks → weekend gaps.
- Rollover: spreads can spike and tag tight stops → swap & rollover.
- News bursts: fast repricing can “fake” clean patterns → why spreads widen.