Top 20 Candlestick Patterns in Forex Trading to Improve Profit | Pipze

Top 20 Candlestick Patterns in Forex Trading to Improve Profit

By Pipze – Learn Forex Trading the Easy Way

Candlestick patterns help forex traders understand market mood. They show whether buyers or sellers are stronger. If you learn these patterns, you can make better buy and sell decisions and improve your profit chances.

Below are the top 20 candlestick patterns explained in simple language, perfect for beginners.

🔹 Bullish Candlestick Patterns (Price May Go Up)

1. Hammer

A small body with a long lower wick.
It appears after a fall and shows buyers are coming back.
👉 Signal: Possible buy.

2. Inverted Hammer

Looks like an upside-down hammer.
It shows sellers are losing strength.
👉 Signal: Trend may reverse upward.

3. Bullish Engulfing

A big green candle covers the previous red candle.
Shows strong buying power.
👉 Signal: Strong buy signal.

4. Piercing Line

A green candle closes above the middle of the previous red candle.
Shows buyers entering the market.
👉 Signal: Bullish reversal.

5. Morning Star

Three-candle pattern after a downtrend.
Shows trend change from down to up.
👉 Signal: Good buying opportunity.

6. Three White Soldiers

Three strong green candles in a row.
Shows strong upward momentum.
👉 Signal: Strong bullish trend.

7. Bullish Harami

Small green candle inside a big red candle.
Shows selling pressure is weakening.
👉 Signal: Trend may turn bullish.

8. Tweezer Bottom

Two candles with same low price.
Shows price rejection from bottom.
👉 Signal: Market may go up.

9. Dragonfly Doji

Looks like a “T” shape.
Buyers control the close.
👉 Signal: Bullish reversal possible.

10. Inside Bar (Bullish)

Small candle inside a bigger one during uptrend.
Shows market is preparing for breakout.
👉 Signal: Buy on breakout.

🔻 Bearish Candlestick Patterns (Price May Go Down)

11. Hanging Man

Looks like a hammer but appears after an uptrend.
Shows weakness in buyers.
👉 Signal: Possible sell.

12. Shooting Star

Small body with long upper wick.
Shows sellers pushing price down.
👉 Signal: Bearish reversal.

13. Bearish Engulfing

A big red candle covers the previous green candle.
Shows strong selling pressure.
👉 Signal: Strong sell signal.

14. Evening Star

Opposite of Morning Star.
Shows trend change from up to down.
👉 Signal: Sell opportunity.

15. Dark Cloud Cover

Red candle closes below the middle of previous green candle.
Shows buyers losing control.
👉 Signal: Bearish sign.

16. Three Black Crows

Three strong red candles in a row.
Shows strong downtrend.
👉 Signal: Strong sell trend.

17. Bearish Harami

Small red candle inside a big green candle.
Shows buying momentum slowing.
👉 Signal: Possible downtrend.

18. Tweezer Top

Two candles with same high price.
Shows resistance level.
👉 Signal: Market may fall.

19. Gravestone Doji

Looks like an inverted “T”.
Shows buyers failed to push price higher.
👉 Signal: Bearish reversal.

20. Inside Bar (Bearish)

Small candle inside a bigger one during downtrend.
Shows market waiting before next fall.
👉 Signal: Sell on breakdown.

✅ How Pipze Helps You Use Candlestick Patterns

At Pipze, traders learn:

Candlestick patterns with live chart examples
How to combine patterns with support & resistance
Risk management for safe trading
Beginner-friendly forex education

Candlestick patterns work best when combined with trend, volume, and proper stop-loss.

📌 Final Words

Learning these top 20 candlestick patterns can greatly improve your forex trading skills. Don’t rush. Practice on demo accounts, understand market trends, and trade with discipline.

With Pipze, forex trading becomes simple, smart, and structured. 🚀