Pattern Library

Candlestick Patterns

Classic technical-analysis setups wrapped as runnable backtest strategies.

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What is this?

Each pattern below carries its definition, the trading scenario where it works, and a complete strategy expression that runs end-to-end in the backtester. Tap Use Pattern to open Strategy Lab with the expression pre-filled — pick a universe and timeframe, then run it. Click a card to expand the trading-scenario notes and the underlying engine code. Use Multi-Pattern Mode (select 2+) to combine patterns with AND / OR / SUM logic.

Multi-Pattern Mode 0 selected Click checkbox on each pattern to add. Click card to expand.

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Reversal

Hammer Bullish

Small body at the top with a long lower shadow (at least 2x body). Signifies rejection of lower prices.

Trading Scenario

Most reliable during a downtrend. Look for a large bullish candle following this hammer to confirm the reversal.

Engine Expression

order(normalize(if_else(logical_and(gt(lower_shadow(), multiply(2, body_size())), lt(upper_shadow(), multiply(0.1, lower_shadow()))), rank('Close'), neg(rank('Close')))), 0.75, 0.25, 1)

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Reversal

Inverted Hammer Bullish

Small body at the bottom with a long upper shadow. Suggests buyers are starting to push back after a downtrend.

Trading Scenario

Excellent for spotting early reversals in a downtrend. Ensure the next candle opens above the hammer's body.

Engine Expression

order(normalize(if_else(logical_and(gt(upper_shadow(), multiply(2, body_size())), lt(lower_shadow(), multiply(0.1, upper_shadow()))), rank('Close'), neg(rank('Close')))), 0.75, 0.25, 1)

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Reversal

Bullish Engulfing Bullish

A large green body that completely covers the previous day's red body. Strong reversal signal.

Trading Scenario

Highly potent after a prolonged descent. Use as a strong signal to exit shorts or initiate long-only modes.

Engine Expression

order(normalize(if_else(logical_and(gt('Close', 'Open'), logical_and(lt(delay('Close', 1), delay('Open', 1)), logical_and(gt('Close', delay('Open', 1)), lt('Open', delay('Close', 1))))), rank('Close'), neg(rank('Close')))), 0.8, 0.2, 1)

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Reversal

Dragonfly Doji Bullish

T-shaped candle with no body and a very long lower shadow. Bullish rejection at support.

Trading Scenario

Look for this near major support levels. It indicates total seller exhaustion and is a high-conviction reversal sign.

Engine Expression

order(normalize(if_else(logical_and(lt(body_size(), multiply(0.05, candle_range())), lt(upper_shadow(), multiply(0.05, candle_range()))), rank('Close'), neg(rank('Close')))), 0.8, 0.2, 1)

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Reversal

Piercing Line Bullish

Current green candle opens below previous low but closes above the midpoint of the previous red body.

Trading Scenario

Best used in sideways markets or shallow pullbacks to identify where buyers are stepping back in.

Engine Expression

order(normalize(if_else(logical_and(lt(delay('Close', 1), delay('Open', 1)), logical_and(gt('Close', 'Open'), logical_and(lt('Open', delay('Low', 1)), gt('Close', add(delay('Close', 1), multiply(0.5, abs_val(subtract(delay('Open', 1), delay('Close', 1))))))))), rank('Close'), neg(rank('Close')))), 0.75, 0.25, 1)

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Reversal

Morning Star Bullish

Three-candle pattern: Tall red, small indecisive middle, tall green candle. Classic reversal.

Trading Scenario

One of the most reliable 3-day patterns. Trade if the third candle's volume is higher than the first.

Engine Expression

order(normalize(if_else(logical_and(lt(delay('Close', 2), delay('Open', 2)), logical_and(lt(abs_val(subtract(delay('Open', 1), delay('Close', 1))), multiply(0.2, abs_val(subtract(delay('Open', 2), delay('Close', 2)))), gt('Close', delay('Open', 2)))), rank('Close'), neg(rank('Close')))), 0.85, 0.15, 1)

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Reversal

Shooting Star Bearish

Small body at the bottom with a long upper shadow (2x body). Signifies rejection of higher prices.

Trading Scenario

Reliable at the peak of an uptrend. If price fails to break the star's high, expect a significant correction.

Engine Expression

order(normalize(if_else(logical_and(gt(upper_shadow(), multiply(2, body_size())), lt(lower_shadow(), multiply(0.1, upper_shadow()))), neg(rank('Close')), rank('Close'))), 0.25, 0.75, 1)

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Reversal

Hanging Man Bearish

Looks like a Hammer but appears at the top of an uptrend, signaling potential exhaustion.

Trading Scenario

Beware: looks bullish but indicates that the price is finally vulnerable to selling pressure at the top.

Engine Expression

order(normalize(if_else(logical_and(gt(lower_shadow(), multiply(2, body_size())), lt(upper_shadow(), multiply(0.1, lower_shadow()))), neg(rank('Close')), rank('Close'))), 0.25, 0.75, 1)

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Reversal

Bearish Engulfing Bearish

A large red body that completely covers the previous day's green body.

Trading Scenario

A classic 'Sell' signal. Most effective on daily timeframes following a multi-day rally.

Engine Expression

order(normalize(if_else(logical_and(lt('Close', 'Open'), logical_and(gt(delay('Close', 1), delay('Open', 1)), logical_and(lt('Close', delay('Open', 1)), gt('Open', delay('Close', 1))))), neg(rank('Close')), rank('Close'))), 0.2, 0.8, 1)

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Reversal

Gravestone Doji Bearish

Upside-down T candle with no body and long upper shadow. Bearish rejection at resistance.

Trading Scenario

The counterpart to the Dragonfly. Signals a failed attempt to rally; target short positions towards previous lows.

Engine Expression

order(normalize(if_else(logical_and(lt(body_size(), multiply(0.05, candle_range())), lt(lower_shadow(), multiply(0.05, candle_range()))), neg(rank('Close')), rank('Close'))), 0.2, 0.8, 1)

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Reversal

Dark Cloud Cover Bearish

Current red candle opens above previous high but closes below the midpoint of the previous green body.

Trading Scenario

Watch for this after an earnings rally or overextended move. Confirms sellers are returning in force.

Engine Expression

order(normalize(if_else(logical_and(gt(delay('Close', 1), delay('Open', 1)), logical_and(lt('Close', 'Open'), logical_and(gt('Open', delay('High', 1)), lt('Close', subtract(delay('Close', 1), multiply(0.5, body_size(delay('Open', 1), delay('Close', 1)))))))), neg(rank('Close')), rank('Close'))), 0.25, 0.75, 1)

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Reversal

Evening Star Bearish

Three-candle pattern: Tall green, small middle, tall red candle closing deep into the first body.

Trading Scenario

Powerful top-reversal sign. Use to start profit-taking or switch to bearish momentum modes.

Engine Expression

order(normalize(if_else(logical_and(gt(delay('Close', 2), delay('Open', 2)), logical_and(lt(abs_val(subtract(delay('Open', 1), delay('Close', 1))), multiply(0.2, abs_val(subtract(delay('Open', 2), delay('Close', 2)))), lt('Close', delay('Open', 2)))), neg(rank('Close')), rank('Close'))), 0.15, 0.85, 1)

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Momentum

Bullish Marubozu Bullish

Solid green body with little to no shadows. Shows total buyer dominance from open to close.

Trading Scenario

Best for trend confirmation. If this breaks a resistance level, the breakout is likely extremely strong.

Engine Expression

order(normalize(divide(body_size(), maximum(candle_range(), 0.001))), 0.6, 0.4, 1)

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Momentum

Bearish Marubozu Bearish

Solid red body with little to no shadows. Shows total seller dominance.

Trading Scenario

Indicates panic selling. Use with high-frequency rebalancing to capture rapid downward moves.

Engine Expression

order(normalize(if_else(logical_and(lt('Close', 'Open'), gt(divide(body_size(), maximum(candle_range(), 0.001)), 0.95)), neg(rank('Close')), rank('Close'))), 0.2, 0.8, 1)

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Indecision

Doji Neutral

Classic Doji where the range is large but the body is tiny. High indecision.

Trading Scenario

Don't trade blindly. Wait for a breakout of the Doji's high or low to determine the next trend direction.

Engine Expression

order(normalize(neg(divide(body_size(), maximum(candle_range(), 0.001)))), 0.55, 0.45, 1)

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Indecision

Spinning Top Neutral

Small body with long upper and lower shadows of nearly equal length.

Trading Scenario

Often found at the end of trends. Signals exhausting momentum; prepare for a reversal or consolidation.

Engine Expression

order(normalize(if_else(logical_and(lt(body_size(), multiply(0.3, candle_range())), lt(abs_val(subtract(upper_shadow(), lower_shadow())), multiply(0.1, candle_range()))), neg(abs_val(returns())), rank('Close'))), 0.55, 0.45, 1)

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Regulatory Disclosure: ftInvstr is a quantitative research and analytics platform. We are NOT SEBI-registered investment advisers or research analysts. All automated strategies, backtests, and portfolio rebalancing metrics are provided for educational and research purposes only. Historical performance is not indicative of future results. No part of this content should be construed as investment advice or a recommendation to buy or sell securities.