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Explore a candlestick
Part of the Forex Vision learning library. Follow the lessons at your own pace.
Read this before the pattern list
These diagrams are invented illustrations, not live prices or trade signals. Mint bodies close above the open; pink bodies close below it. The line shows the high and low. If those terms are new, read our introduction to reading a candlestick first.
Price history and timeframe matter. An isolated shape cannot tell you whether a trade is suitable, what it will cost, or how much you could lose.
Doji
Illustrative shape only. Read the preceding price movement for context.
Open and close are very close together, leaving a very small body. Wicks can extend in both directions. This describes a balance at the close; it does not specify which direction comes next.
Hammer
Illustrative shape only. Read the preceding price movement for context.
A small body sits near the top of the range, above a long lower wick. The hammer interpretation normally depends on a preceding decline. A similar shape after a rise has a different name and context.
Shooting star
Illustrative shape only. Read the preceding price movement for context.
A small body sits near the bottom of the range, beneath a long upper wick. It is usually discussed after a rise. The same shape after a decline may be described as an inverted hammer.
Bullish engulfing
Illustrative shape only. Read the preceding price movement for context.
A falling candle is followed by a rising candle whose body covers the previous body. Compare the opening and closing prices, not just the wicks. The conventional reversal interpretation looks for this sequence after a decline.
Bearish engulfing
Illustrative shape only. Read the preceding price movement for context.
A rising candle is followed by a falling candle whose body covers the previous body. The conventional reversal interpretation looks for this sequence after a rise. The name expresses an interpretation, not a guaranteed outcome.
Candlestick patterns for forex and stocks
The same opening, closing, high and low structure can describe a forex or stock candle. A bullish candle closes above its open; a bearish candle closes below. A bullish or bearish pattern interpretation adds context beyond that single comparison. Check the chart’s session, timeframe and price source before comparing shapes across markets.
There is no universally best candlestick pattern. A proposed reversal describes an interpretation that may fail. Broader chart patterns span a longer sequence than one or two candles; learn the distinction in our chart-pattern introduction. Use the practice below to record failed examples as carefully as successful-looking ones.
Practise observation before prediction
Take a historical chart and cover the candles to the right of a shape. Write down the timeframe, direction of the preceding movement, and opening and closing prices. Name the shape only after recording those observations. Then reveal what happened next and record examples that failed as carefully as those that fit the interpretation.
Candle A opens at 1.0840 and closes at 1.0820. Candle B opens at 1.0815 and closes at 1.0845. B’s rising body covers A’s falling body: it has a bullish engulfing shape. Without the earlier candles, you cannot establish whether it followed a decline.
Does the second candle need to cover both wicks?
In the body-based definition used here, compare the bodies. Wicks describe the full range, which is different from the opening-to-closing range. Always state which definition you are using when comparing examples.
Which candlestick pattern guarantees a profit?
None. A pattern name does not provide certainty about a future price. A chart observation is also separate from position size, trading costs and your ability to absorb losses.
Why can two people give the same shape different names?
They may use different thresholds for body and wick size, or view different preceding trends and timeframes. Record the actual prices and context so you can compare their reasoning.
Do not turn a few attractive examples into a success-rate claim. A useful study records the selection rule, sample size and all outcomes. This lesson does not present a tested strategy or a claimed win rate.
Further learning
For the underlying terminology, continue with forex basics: currency pairs, pips and leverage. Send corrections to official@forexvision.org.
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