What Are the Most Reliable Candlestick Patterns for 2025?

What is a candlestick pattern?

A candlestick pattern is a visual chart representation of price movements showing the opening, closing, high, and low within a specific period.

Most Reliable Bullish Candlestick Patterns

1. Hammer – Appears at the bottom of a downtrend; signals strong buying pressure.

2. Bullish Engulfing – Small bearish candle followed by a large bullish one; clear reversal signal.

3. Morning Star – Three-candle pattern using the 3-candle rule: bearish → indecision → strong bullish; confirms trend reversal.

4. Piercing Pattern – Bullish candle after a bearish one, closing above the midpoint; indicates strength returning.

5. Inverted Hammer – Small body with long upper shadow; reversal possible if confirmed by next candle.

Most Reliable Bearish Candlestick Patterns

1. Shooting Star – Small body on top with long upper shadow; indicates a reversal after an uptrend.

2. Bearish Engulfing – Small bullish candle engulfed by a large bearish candle; strong sell signal.

3. Evening Star – Three-candle pattern using the 3-candle rule: bullish → indecision → strong bearish; confirms trend reversal.

4. Dark Cloud Cover – Red candle closes below the midpoint of the preceding green candle; trend weakening.

5. Hanging Man – Small top body with long lower shadow; warns of potential trend reversal.