If you’re just getting started with trading and feel overwhelmed by charts, you’re not alone. One of the most important tools every trader should learn is the candlestick pattern cheat sheet. In this simple guide, we’ll break down candlestick patterns in a way even a 6th grader can understand. Plus, we’ll give you a powerful, easy-to-use cheat sheet that works for stocks, forex, and crypto.
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What Is a Candlestick Pattern?
A candlestick pattern is a shape you see on a chart that shows how the price of something (like a stock or currency) moves over a short time. Each candlestick gives four main pieces of information:
- Open – the price when the period started
- Close – the price when the period ended
- High – the highest price reached during the period
- Low – the lowest price reached during the period
The body of the candle shows the range between the open and close prices. If the close is higher than the open, the candle is usually green (bullish). If the close is lower, it’s red (bearish). The lines above and below are called “wicks” or “shadows.”
When you put many of these candles together, they form patterns that help traders predict what might happen next in the market.
Why Use a Candlestick Pattern Cheat Sheet?
If you’re new to trading, remembering every single candlestick pattern can feel impossible. That’s why traders love having a candlestick patterns cheat sheet. It acts like a quick reference tool to help you:
- Understand the market mood (bullish or bearish)
- Spot buying or selling signals with more confidence
- Avoid emotional trading decisions
- Make smarter and more informed choices
Using a cheat sheet improves your ability to read charts quickly and react fast when opportunities appear. It’s also a great learning tool to build your trading skills over time.
Basic Candlestick Pattern Cheat Sheet (Must-Know for Beginners)
These are some of the easiest and most common candlestick patterns. They should be on every candlestick cheat sheet.
| Pattern | Description | Signal | Where It Appears |
|---|---|---|---|
| Doji | Candle with almost equal open and close; very small body | Indecision | After trends, in uncertain markets |
| Hammer | Small body, long lower wick | Bullish reversal | Bottom of a downtrend |
| Inverted Hammer | Small body, long upper wick | Bullish reversal | Bottom of a downtrend |
| Shooting Star | Small body, long upper wick | Bearish reversal | At the top of an uptrend |
| Bullish Engulfing | The big green candle covers the previous red | Bullish reversal | End of a downtrend |
| Bearish Engulfing | The big red candle covers the previous green candle | Bearish reversal | End of an uptrend |
These simple patterns help you understand when the market might be changing direction. They are very useful for day trading and swing trading strategies.
Intermediate Patterns (Good for Growing Traders)
Once you’re comfortable with the basics, these patterns can help you sharpen your skills and improve your timing in the market.
| Pattern | Description | Signal | Where It Appears |
| Morning Star | Three candles: red, small, green | Bullish reversal | End of a downtrend |
| Evening Star | Three candles: green, small, red | Bearish reversal | Top of an uptrend |
| Harami (Bullish) | Small green inside large red | Reversal up | After downtrend |
| Harami (Bearish) | Small red inside large green | Reversal down | After uptrend |
| Piercing Line | Red followed by green opening lower, closing above halfway | Bullish reversal | After downtrend |
| Dark Cloud Cover | Green followed by red closing below midpoint | Bearish reversal | After uptrend |
These patterns offer more context than single-candle patterns. They combine multiple candles to give clearer signals.
Advanced Candlestick Pattern Cheat sheet (For Experienced Traders)
If you’re already trading often, these advanced cheat sheet candlestick patterns help you stay one step ahead and improve your market timing.
| Pattern | Description | Signal | Where It Appears |
| Three White Soldiers | Three strong green candles in a row | Strong bullish trend | After downtrend |
| Three Black Crows | Three strong red candles in a row | Strong bearish trend | After uptrend |
| Rising Three Methods | Green, 3 small reds, another green | Bullish continuation | During uptrend |
| Falling Three Methods | Red, 3 small greens, another red | Bearish continuation | During downtrend |
| Upside Gap Two Crows | Green, gap up with two reds | Bearish reversal | Top of uptrend |
| Downside Tasuki Gap | Red candle, gap down, green candle that doesn’t close the gap | Bearish continuation | During downtrend |
How to Use the Candlestick Patterns Cheat Sheet
- Print or download a PDF version (search for candlestick patterns cheat sheet pdf)
- Use it daily while reviewing your charts
- Compare patterns with current market trends before acting
- Combine with indicators like RSI, MACD, and volume
- Keep practicing to train your eye to recognize patterns instantly
Best Platforms to Practice Candlestick Pattern Cheat Sheet
If you’re new, you don’t have to risk real money. These platforms offer free demo accounts:
- TradingView – Great for drawing and watching charts
- MetaTrader 4/5 – Popular for forex traders
- ThinkorSwim by TD Ameritrade – Excellent for U.S. stock traders
- eToro – Beginner-friendly with social trading
Common Mistakes to Avoid
- Relying on one pattern alone – Always use other tools too
- Ignoring the trend direction – Patterns are more powerful with trend support
- Overtrading every signal – Wait for confirmation
- Not setting stop-loss – Risk control is key
- Skipping practice – Real mastery comes from time and effort
Final Thoughts
The candlestick pattern cheat sheet is one of the best tools you can have as a trader. Whether you’re into stocks, forex, or crypto, understanding these patterns gives you a strong edge.
This guide makes it simple, clear, and effective to learn. By practicing regularly and using a cheat sheet, you will grow faster as a trader and make smarter decisions.
