A handful of candlestick patterns carry real information when they appear at the right place. Learn these few well rather than memorising dozens you'll never use.
Pin bar
A pin bar has a small body and one long wick, showing strong rejection of a price area. A bullish pin (long lower wick) at support, or bearish pin (long upper wick) at resistance, is a classic signal.
Engulfing
An engulfing candle's body fully covers the prior candle's body, showing a decisive shift in control. A bullish engulfing at support or bearish engulfing at resistance carries weight.
Doji
A doji has almost no body — open and close nearly equal — signalling indecision. After a strong move, a doji warns momentum is fading. On its own it's weak; at a key level it's a heads-up.
Key takeaways
- Pin bar = rejection; strongest at support/resistance.
- Engulfing = shift in control when it covers the prior body.
- Doji = indecision; meaningful after a strong move at a level.
Risk warning: Forex and CFD trading carry substantial risk and most retail traders lose money. This material is educational only and is not financial advice, a signal service, or a profit promise.