Candlestick Formations

Need a quick refresher on what each candlestick pattern looks like? Each card shows the shape and the one trait that defines it.

DojiOpen ≈ close — the body is a thin line1 candle Long-Legged DojiOpen ≈ close, with extreme wicks on both sides1 candle Dragonfly DojiOpen ≈ close ≈ high — long lower wick only1 candle Spinning TopSmall body, even wicks on both sides1 candle HammerBody at the top, lower wick ≥ 2× the body1 candle Inverted HammerBody at the bottom, upper wick ≥ 2× the body1 candle Engulfing Pattern2nd body fully wraps the 1st body — bodies, not wicks2 candles HaramiA small body inside the mother candle's body2 candles Piercing PatternGaps down, then closes above Candle 1's midpoint2 candles Morning StarTall red → small star → tall green closing into Candle 1's body3 candles Three White SoldiersThree rising green bodies, each closing near its high3 candles

How candlestick formations work

A candlestick pattern's formation is its visual structure — the body, the wicks, and how many candles it spans. The body records the distance between open and close; the wicks record the extremes the session probed and rejected. Formation alone is identification, not a signal: a perfect Hammer in the wrong location is just a candle.

FAQ

What is a candlestick pattern formation?

Formation is the visual structure of a candlestick pattern — the body, the wicks, and how many candles it spans. The body records the distance between open and close; the wicks record the extremes the session probed and rejected. Formation alone identifies the shape; confirmation, context, and invalidation rules decide whether it is tradeable.

How many candles make up a candlestick pattern?

Patterns span one to three candles. Single-candle patterns include the Hammer, Inverted Hammer, the Doji family, and the Spinning Top. Two-candle patterns include the Bullish Engulfing, Harami, and Piercing Pattern. Three-candle patterns include the Morning Star and Three White Soldiers.

What is the difference between a body and a wick?

The body is the rectangular section of a candle, drawn between the open and the close. The wick (also called the shadow) is the thin line extending above or below the body, marking the session high and low. Body color reflects direction; wick length reflects rejection.

42Fibonacci

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