Free e-book: The Definitive Guide to Candlestick Patterns

Hammer, Engulfing, Morning Star, Three White Soldiers: candlestick patterns are the fastest way to read what buyers and sellers did in a single candle or a short sequence of them. This guide brings together more than 30 patterns, with the context in which each one appears and the moment the entry is confirmed.

What is inside the e-book

• Reversal patterns: Hammer, Hanging Man, Shooting Star, Bullish and Bearish Engulfing, Dark Cloud Cover, Morning and Evening Star, Abandoned Baby and more.
• Continuation patterns: Tasuki Gap, Separating Lines, Side-by-Side White and Black Lines, Mat Hold and Three-Line Strike.
• For each pattern: the context in which it appears, how it forms and the trigger that confirms the entry, with an illustration of the pattern and another one in the middle of a chart.

How to use the guide

Most patterns only count after confirmation: the entry happens when the next candle breaks the high (for a buy) or the low (for a sell) of the pattern. Read the context before the shape. A hammer in the middle of an uptrend is not the same signal as a hammer after a decline.

The best way to learn them is to practice. Open the chart on the demo account, look for each pattern in the assets you follow and note how often the confirmation came before you risk real money.

About the author

The guide was written by trader Caio Caúla, from the Thon Trader PRO channel on YouTube, and appears on the Safirion Blog with his permission.

Risk warning: Trading leveraged products involves a significant risk of loss and may not be suitable for all investors. Past performance is no guarantee of future results. Trade only with capital you can afford to lose.