While not strictly a candlestick pattern, continuation triangles (ascending, descending, symmetrical) are multi-candle patterns where price contracts between converging trendlines. Breakouts from triangles tend to continue the prior trend. Triangles are measured-move patterns — the target equals the height of the triangle projected from the breakout point.
Ascending triangle: flat top resistance with rising support, Descending triangle: flat bottom support with falling resistance, Symmetrical triangle: converging trendlines with equal slope, Volume typically decreases during formation and spikes on breakout
Breakout from the triangle on above-average volume, Retest of the broken trendline as new support/resistance, Divergence resolution on oscillators at breakout, Prior trend context (continuation bias)
Target = height of the triangle base projected from breakout point, Stop just inside the triangle on the opposite side, Time-based invalidation: if no breakout by ~75% through the triangle, the pattern weakens
1H, 4H, Daily
Triangles that form in the direction of the prior trend have a higher probability of breaking out in the trend direction. Volume contraction during formation is key — if volume stays high, the pattern may not be a triangle.
Three white soldiers are three consecutive large bullish candles with progressively higher closes, each opening within the prior candle's body. Three black crows are the bearish equivalent. These patterns signal strong momentum shifts and conviction from buyers (soldiers) or sellers (crows).
Pin bars are single-candle reversal patterns with a long tail (shadow) on one side and a small body on the opposite side. The tail shows a sharp rejection of a price level. Pin bars are the most widely used price action signal among naked chart traders and work on all markets and timeframes.
The kicker pattern is one of the most powerful two-candle reversal signals in candlestick analysis. It forms when the second candle opens at or beyond the open of the prior candle and moves aggressively in the opposite direction, effectively 'kicking' away from the previous sentiment. Kickers often occur after overnight news events or fundamental catalysts that cause an abrupt sentiment shift.
The hammer and hanging man are single-candle patterns with small real bodies and long lower shadows (at least 2× the body). A hammer appears at the bottom of a downtrend (bullish), while a hanging man appears at the top of an uptrend (bearish). The long wick indicates that sellers pushed price down but buyers recaptured ground.