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Beginner · 9 min · strategy

5 most important candlestick patterns

Doji / Engulfing / Hammer / Shooting Star / Inside Bar — covers 80% of your entry decisions.

fxcn editorial 2026-05-29
## Candles are not magic
A candlestick only shows open, high, low and close for one period. It cannot predict the future alone, but it helps you read how buyers and sellers react at important levels.

## Five patterns that matter
Doji shows hesitation and matters most near the end of a move. Engulfing shows one strong candle taking out the prior candle, best used near support or resistance. Hammer often appears after a selloff. Shooting Star shows rejection after an advance. Inside Bar shows volatility compression and often precedes a breakout.

## How to avoid misuse
Do not trade a pattern just because it appears. It must happen at a meaningful location: previous high or low, trendline, moving average, supply-demand zone or post-news retest. Without location, a pattern is only a shape.

## Practical process
Read higher-timeframe trend, mark key levels, wait for candle confirmation, then trade with fixed risk. Candles confirm a plan; they do not replace one.