The four patterns you'll see constantly: doji, hammer, shooting star, and engulfing. This free lesson covers: What you'll learn, The doji, Indecision, The hammer, Name it, The shooting star, The shooting star, Engulfing patterns, Name it, Context matters, Reading it in context.
Chart Patterns · Learn · Step 1 of 11
Four patterns that show up constantly on any chart: the doji, the hammer, the shooting star, and the engulfing candle.
Going deeper
Candlestick patterns are descriptions of behaviour, not predictions. A hammer describes a period where sellers pushed price down and buyers took it back — whether that matters depends entirely on where it happened.
Most published win rates for these patterns come from studies that ignore context and give wildly inconsistent results. Treat any specific percentage claim with suspicion.
None reliably in isolation. The context — where it forms and what preceded it — matters more than which pattern it is, which is why this Academy teaches structure before patterns.
The shapes appear on every timeframe, but lower timeframes produce far more of them and a much higher proportion are noise.
Scanners find shapes, not situations. They will flag dozens of technically-valid patterns in places no experienced trader would act.