Candlestick Patterns Cheat Sheet

Candlestick Patterns Cheat Sheet

Whenever you looked at a stock chart, you felt like you were trying to read a foreign language. All those little red and green bars can seem confusing. Candlestick patterns are those patterns that show what buyers and sellers are doing in the market.

Candlestick patterns are a simple chart that shows where prices might move next. Traders have used them for many years because they give a quick, clear picture of market sentiment.

This guide is your simple chart-reading cheat sheet with clear candlestick patterns, easy meanings, and practical tips to trade with confidence.

Candlestick Chart Cheat Sheet:

A candlestick chart represents all the analysis of Candlestick patterns.

Candlestick Charts:

A line chart only shows the closing price of a stock. But a candlestick chart shows the full story of the day’s price moves.

It shows the price movement during a specific time, like a minute, an hour, a day, or even a week. Every candle gives you four key details:

1. The Open: The price at the start of the period.
2. The High: The highest price reached during the period.
3. The Low: The lowest price touched during the period.
4. The Close: The price at the end of the period.

Real body:

The rectangle in a candlestick is called the real body. It shows the difference between the opening and closing prices.

• The candle is green or white. If the closing price is higher than the opening,
• The candle is red or black. If the closing price is lower than the opening price

The thin lines spreading above and below the body are called wicks or shadows. They show the high and low prices for the period.

Uses of Cheat Sheet:

trading happens quickly, so that sometimes you must decide in seconds. You do not have time to flip through a textbook every time you see a potential setup on a chart.

A candlestick cheat sheet is a quick guide to help you in such a way:

• Spot patterns fast: No need to remember every chart pattern, look at your cheat sheet and confirm what you see.
• Build confidence: A cheat sheet helps learners feel sure about their choices.
• Learn faster: Using it makes patterns easier to remember.
• Stay organized: It keeps you focused on smart strategies.

Candlestick Cheat Sheet:

Here are the most common candlestick patterns:

Bullish Patterns

These patterns come after a price drop and suggest the price might go up.

• Hammer: A single candle with a small body, little or no upper wick, and a long lower wick (at least twice the body). It shows sellers tried to push the price down, but buyers came back strong, hinting at a possible reversal.

• Bullish Engulfing: A two-candle pattern. The first is a small bearish candle. Its colour is Red. The second is a large bullish candle that completely covers the first. Its colour is Green.

• Morning Star:  three-candle reversal pattern:
  1. A long bearish candle.
  2. A small candle ( Doji) that gaps down, showing indecision.
  3. A strong bullish candle that closes into the first candle’s body, confirming buyer control.

• Piercing Line:  two candle pattern. The first is a strong bearish candle. The second opens lower but then rallies, closing above the midpoint of the first. It shows buyers fighting back strongly.

Bearish Patterns

These patterns typically form at the end of an uptrend and may indicate that the price is about to head lower.

• Shooting Star: Opposite of  Hammer. A small body with a long top line after an uptrend means buyers tried to push prices up, but sellers pulled them back down.

• Bearish Engulfing: The opposite of its bullish counterpart. The first candle is a small bullish green candle. The second is a large bearish (red) candle that completely engulfs the first. It indicates that sellers have taken over from the buyers.

• Evening Star: This is a three-candle reversal pattern that signals the end of a sunny day (uptrend).
• • A long bullish candle.
  • A small-bodied candle (or a Doji) that gaps up.
  • A long bearish candle that closes well into the body of the first candle. It confirms the sellers have seized control.

• Dark Cloud Cover: This two-candle pattern shows early strength but then sells off, closing lower and signaling fading optimism (Dark Cloud Cover).

Neutral Patterns

These patterns show confusion; buyers and sellers are equal. The next big move could go up or down.

• Doji: It looks like a cross, meaning price opened and closed the same. It shows balance and can signal a reversal.

• Spinning Top:  It has a small body with lines on both sides that show lots of movement, but no clear winner. It may mean the trend could change.

Chart Patterns Cheat Sheet PDF:

Having a digital or printed copy of your cheat sheet can be very use full for you.

Why a Trading Cheat Sheet PDF is Handy?

A cheat sheet PDF is one of the best tools for traders. It keeps your trading stable.

• Keep the PDF on your devices and use it anywhere.
• Print it and keep it with you for quick pattern reminders.
• A good PDF gives a clear reference so that you can check and confirm instantly

Create Your Own Cheat Sheet:

You can find many cheat sheets online; creating your own cheat sheet can be a good learning exercise for you.

• Open a simple document like Google Docs or Word. Create three sections: Bullish, Bearish, and Neutral.
•  Under each section, list the patterns you want to learn first. Please start with the ones we have covered here, as they are the most common.
• Use a charting platform to find real-world examples of each pattern. Take a screenshot and paste it into your document next to the pattern's name.
• Please write a short description about candlestick patterns and their meanings in your own words.
• Your document is complete.

Mistakes to Avoid:

• Check the trend: A Hammer only matters after a downtrend, not in a sideways market.
• Wait for proof: Don’t act on one candle—look for confirmation.
• Pick the best setups: Not every pattern is worth trading.
• Use other tools: Candlesticks work better with volume, averages, and trend lines.

Conclusion:

Candlesticks are useful, but real trading success comes from combining them with a solid plan, smart risk management, and market awareness.

Disclaimer!

This article is for informational and educational purposes only.

We do not provide financial, medical, or legal advice.

Always verify important details from official sources before making any decisions.

Every effort is made to keep the content accurate and helpful, but we advise readers to rely on their own judgment and official references.

If you find any mistakes or issues, please contact us to correct them.