12 High-Probability Forex Candlestick Patterns for 2026
Candlestick patterns are the ultimate language of price action. When understood in the correct context, they reveal the hidden battle between buyers and sellers. At Pip Campus, we've developed the Candle Reader game specifically to help you internalize these patterns so you can recognize them instantly on live charts.
How to Use Candlestick Patterns Correctly
Patterns alone are not a strategy. Use these rules to improve accuracy:
- Start with trend: Trade patterns in the direction of the higher timeframe trend.
- Mark key levels: Patterns are strongest at support, resistance, or supply and demand zones.
- Wait for confirmation: Look for a close that confirms rejection or continuation.
- Control risk: Every pattern needs a clear stop-loss and target.
12 High-Probability Candlestick Patterns
1. Bullish Engulfing
Large bullish candle completely covers the previous bearish candle. Strong reversal signal at support.
2. Bearish Engulfing
Large bearish candle covers the previous bullish candle. Strong reversal signal at resistance.
3. Hammer
Small body with a long lower wick. Buyers rejected lower prices.
4. Shooting Star
Small body with a long upper wick. Sellers rejected higher prices.
5. Morning Star
Three-candle reversal pattern showing a shift from sellers to buyers.
6. Evening Star
Three-candle reversal pattern showing a shift from buyers to sellers.
7. Inside Bar
Small candle contained within the previous candle. Indicates consolidation and potential breakout.
8. Outside Bar
Large candle that engulfs the previous candle's range, signaling strong momentum.
9. Pin Bar
Very small body with a long wick showing sharp rejection. Best at key levels.
10. Doji at Key Level
Open and close are nearly equal, signaling indecision. Strong when it forms at major support or resistance.
11. Tweezer Bottom
Two candles with matching lows, often signaling a bullish reversal.
12. Three White Soldiers
Three strong bullish candles in a row, often signaling trend continuation.
Quick Pattern Confirmation Checklist
- Is the higher timeframe trend aligned?
- Did the pattern form at a key level?
- Is there room to the next target?
- Does the risk-reward reach at least 1:2?
Example Trade Setup
- Pair: EUR/USD
- Context: Uptrend on daily chart
- Level: Support at 1.0850
- Pattern: Bullish engulfing on 4H
- Entry: Close above the engulfing candle
- Stop-loss: Below the swing low
- Target: Next resistance zone
Next Steps
Ready to sharpen your price action skills?
- Read Risk Management Guide - Protect every trade
- Explore Smart Money Concepts - Understand institutional footprints
- Learn 7 Best Trading Strategies - Combine patterns with strategy
About the Author: Pip Campus Technical Analysis Team - Focused on clean, repeatable price action setups.
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