Candlestick
Patterns
Guide
Property of Data Trader, do not repurpose or redistribute.
High Winrate Candlestick Patterns GUIDE
Shrinking Candles Engulfing Pinbar
3 Bar Continuation 3 Bar Reversal Breakout
Pattern #1 - Shrinking Candles GUIDE
Bullish Bearish
big green candle
3 consecutive closes above the
red candles, each body of second red
body getting smaller candle
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Shrinking Candles Example
take profit at
1 . 5x - 2x
stoploss
Buy at green
candle’s close
Stoploss at low of
third candle
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Pattern #2 - Engulfing Candle GUIDE
Bullish Bearish
big green candle closes
above previous red candle
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Engulfing Candle Example
Stoploss at high of
red candle
short at red
candle’s close
take profit at
1 . 5x - 2x stoploss
Pattern #3 - Pinbar Candle GUIDE
Bullish Bearish
long wick above + small body
long wick below + small body indicates selling pressure.
indicates buying pressure.
Tip: the color of the candle itself doesnt matter, the position of the long wick is what matters
example: a red candle with small body + long wick below still counts as a bullish pinbar
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Pinbar Candle Example
take profit at
1 . 5x - 2x
stoploss
Buy at NEXT green
candle’s close after the
bullish pinbar
Stoploss at low of pinbar
Pattern #4 - 3 Bar Continuation GUIDE
Bullish Bearish
large green candle
small red
candle
medium to large
green candle
3 Bar Continuation Example
take profit at
1 . 5x - 2x stoploss
Buy at third green candle
Stoploss at low of
second red candle
Pattern #5 - 3 Bar Reversal GUIDE
Bullish Bearish
medium sized red candle
+ small red candle large green candle
that closes above the
first red candle
3 Bar Reversal Example
take profit at
1 . 5x - 2x
stoploss
Buy at third green candle
Stoploss at low of
second red candle
Pattern #6 - Breakout Pattern GUIDE
Bullish Bearish
at least 3 candles 1 large red candle
with small body
and small wick
(could be any color)
Breakout Pattern Example
multiple candles with
small wick and small body
Stoploss at red
candle’s open
Short at red
candle’s close
take profit at
1 . 5x - 2x stoploss
Important Tip
Chart patterns shouldn’t be used on their own. Don’t go all in on a
trade just because you saw a bullish engulfing pattern form in the
middle of a chart. Instead, look for setups where these candlestick
patterns form near key levels. This way, they act as confirmation,
adding strength to your entry decision.
3 Bar Reversal + Support Level
Bullish 3-bar reversal pattern
forming at support level
Support level: shown by two
previous price bounces
Exclusive Strategy #1 GUIDE
Combining candlestick patterns with Fibonacci Retracements
In this strategy, we combine candlestick patterns
with Fibonacci retracement levels for high-
probability entries. Apply Fibonacci from the
swing low to swing high (white arrows). The price
pulls back to the 61.8% Fibonacci zone, where a
Bullish Pinbar forms, followed by a green candle.
Enter BUY at the close of the green candle after
the Pin Bar.
Exclusive Strategy #2 GUIDE
Inside this guide, I've mainly shown examples of
candlestick patterns forming reversals at key
levels. However, you can also use them for
breakouts. In this example, a bearish 3-bar
continuation pattern forms after the price breaks
a support level, signaling a possible continuation
of the downward trend.
Exclusive Strategy #3 GUIDE
Double Candlestick Patterns
Bearish pinbar
Bearish 3
A setup to keep an eye on is double candlestick
bar reversal
patterns, where two candlestick patterns combine
into a single setup. This type of setup offers a
better chance of the pattern playing out. In this
chart, we see a bearish 3-bar reversal pattern,
where the small candle also happens to be a
bearish pinbar.
price below
How to Increase a 100 EMA
Pattern’s Winrate
Bearish
A simple way to significantly boost the win rate of a chart engulfing
pattern
pattern is to trade in the same direction as the long-term
trend. To do this, apply the 100 EMA Indicator to your
chart. If the price is above the 100 EMA, only trade bullish
patterns. If the price is below the 100 EMA, only trade
bearish patterns.
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