INDICATOR · BEGINNER GUIDE
CANDLESTICK PATTERNS
Labels the classic candles where they matter most: at a recent high or low.
◆10 classic candles◆Only at highs and lows◆Bullish ▲ / bearish ▼◆Closed candles only
WHAT YOU SEE · EURUSD 1H · 18–30 OCT
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1Shooting star: long top wick at a high.
2Hammer: long bottom wick at a low.
3Engulfing ▲: a rising candle swallows the one before.
4Engulfing ▼: the same the other way, at a high.
5Doji: open and close almost equal: indecision.
6Not every one works: this one came before more falling.
Use it in 5 steps
- Switch it onCharts → Basic Indicators (ƒx) → tick Candlestick Patterns.
- Look at where it isA candle only means something at a recent high or low, so that’s all it labels.
- Read the colourGreen ▲ bullish, red ▼ bearish, gold indecision.
- Wait for the next candleA strong next candle the same way makes it more convincing.
- Check the panelSee how often each side followed through on this chart.
Low to high on EURUSD
EURUSD 1H, 28–30 Oct. A bullish engulfing and a hammer marked the lows, then a shooting star marked the high before the drop. Plenty of others on this chart didn’t work.
The dashboard
- Last pattern: the most recent candle it labelled.
- Where: at a recent high or a recent low.
- When: how many candles ago.
- Higher / lower 5 later: how often each side followed.
- What this means: what that candle shows, in plain English.
Golden rules
- A pattern, not a signal. Single candles are weak on their own.
- About half followed through. On our markets, only about half went the candle’s way.
- Place matters most. Use them at levels you already trust.
- Always use a stop loss and risk 1% or less per trade.
🔔 Get told when it fires: click Alerts, choose Candlestick Patterns and tick “Bullish candle pattern” or “Bearish candle pattern”.
For educational purposes only. The results in this guide come from testing on past prices. Past performance does not guarantee future results, and real spreads, slippage and delays can make results worse. Nothing here is financial advice, and trading carries a high risk of losing money. Read the risk warning.