Candlestick Cheat Sheet
Definitions and ratios for the candlestick formations traders quote most, with the location rules that make them usable.
Single-candle formations
Single candles describe pressure inside one period. Ratios make the descriptions countable.
- Hammer — lower wick at least twice the body, body in the upper third
- Shooting star — the inverted hammer description
- Doji — body very small relative to range
- Marubozu — large body, minimal wicks
Two- and three-candle sequences
Sequences describe a change or a pause across periods. Definitions must specify body or range comparison.
- Bullish and bearish engulfing — new candle swallows the previous body
- Morning and evening star — pause between two opposing pushes
- Three white soldiers and three black crows — persistence
- Inside bar — full range contained within the previous candle
The location rule
No candle formation is a signal by itself. Require a level and a higher-timeframe condition before the candle is allowed to trigger anything.