10 Powerful Candlestick Patterns: A Trading Guide for Beginners👇

Japanese candlesticks visually display price movements. They reflect the open, high, low, and close in a specific period. Their shape and color tell us stories about the market.

1. Bullish Envelope

This pattern indicates that buyers are taking control. It appears at the bottom of a chart. It's as if the market is whispering: "maybe we've hit bottom."

It is identified when a small red candle is completely "wrapped" by a larger green candle. The market opens lower than the previous close, but then... surprise! Buyers appear and push up.

It seems to work quite well. Studies from 2025 give it a 68% effectiveness in predicting rises. Not bad.

2. Bullish Harami

A two-candle pattern. First, we see a small green candle after a larger red one. It is often seen at the bottoms of charts and can indicate a change in direction.

The Harami speaks to us about confusion in the market. Sellers are losing strength. Buyers are gaining ground. Little by little.

The data from 2025 grants you a 56% success rate. Slightly better than before.

3. Lower clamp

This pattern shows two or more candles with identical lows forming a horizontal support. It appears at bottoms and could signal a momentum shift.

Traders love it. It shows buyers entering at the same level. It also suggests that sellers are weakening. The bottom could be there.

It's as if the market has reached its bearish limit. Equal lows are a barrier. Buy against sell in equilibrium.

The backtesting of 2025 gives you a 63% effectiveness. Not too bad.

4. Morning Star

Three candles tell this story. A strong bearish candle. Then a small one, sometimes doji, showing indecision. The third, a strong bullish candle, marks the change.

Traders use it to place stops below the doji or bullish candle. It seems to be a strong indicator.

In 2025, its effectiveness hovers around 67%. It has improved a little over time.

5. Morning star doji

Three candles here as well. The first one is very bearish. The second one is necessarily a Doji, suggesting uncertainty. The third one is strongly bullish, closing above the midpoint of the first.

The studies from 2025 give it an impressive 70% success rate. One of the best, it seems.

6. Abandoned bullish baby

Another three candle pattern. A strong bearish first candle. The second opens with a bearish gap and forms a doji. The third opens with a bullish gap. A radical change in sentiment.

Reflects how the market shifts from pessimism to optimism. The initial bearish candle continues the trend, but the doji shows uncertainty. Then comes the bullish confirmation with that gap.

The data from 2025 indicates a 67% effectiveness. Quite consistent.

7. Three out up

It is formed with three candles at the bottom of the chart. First, a bearish one. Then a bullish one that engulfs the previous one. Finally, a third one that opens and closes higher.

It is a reliable signal. It suggests that the bears have been defeated. The market appears ready to rise.

The statistics for 2025 give it a 71% success rate. Impressive.

8. Three from the inside out

Another three-candle pattern. A first bearish. A second small bullish. And a third strongly bullish marking the change.

Shows how sentiment evolves. First selling, then neutrality, finally decisive buying.

Studies from 2025 attribute a 65% effectiveness to it. Solid.

9. Bullish Kicker

Here we see a bearish candle followed by a strong bullish one that opens with a gap and closes above the previous high.

Indicates a sudden shift in sentiment. Suddenly, everyone wants to buy.

In 2025, its success rate is around 69%. A pattern to keep in mind.

10. Drilling Line

A pattern where a bullish candle opens below the previous low but closes above its midpoint.

Indicates a possible reversal. Sellers are losing strength, buyers are taking control.

The latest data gives it a 62% effectiveness. It has improved over time.