Best of the Best Candlestick Patterns

Knowing your Candlesticks formations is one of the most important aspects of Forex Trading. By looking at these simple patterns we can easily discern whether the market is going to change to a different signal or whether it will continue on its way. The importance of these signals to me is even more important if they appear on a support or resistance area, in fact i will ignore candlestick patterns between these two areas which means I eliminate the chance of false signals immensely. While there are so many candlestick patterns out there, the below four I find work the best. In fact i call them the best of the best because these 4 signals are the best for changing a market trend thus allowing us a chance at getting into a powerful trend change right at the beginning. This essentially allows us to get more pips rather than relying on lagging indicators for such signals.

When looking at any form of price action in the market the first aspect a trader wants to do is detect the support and resistances on the chart. To do so follow my other post on this here. Then I wait for price to get to one of these important areas. On a support line I look for bullish candlestick patterns to enter a trade and at a resistance area I look for bearish candlestick patterns to enter a trade. By following this simple rule it allows me to bag a lot of pips with little risk and with clear direction. While price can still go against you when these signals are printed in general, I find that the amount of right signals far outweighs the wrong ones.

Bullish Candlestick Patterns

bullish candlesticks

Bearish Candlestick Patterns

bearish candlesticks

And lastly to top off how these types of formations which can be seen often on a Forex Chart, let’s take a look at the screenshot below as one example.
As you will see this is a bullish signal, the bullish pin passes through the identified support line seen on the chart and then it is thrown back above the line.

pinbar example

Thus giving it more weight and conviction. What one could do after seeing this signal is to place a buy stop order directly a few pips above the close of the pin candle. That way only if the price keeps moving ( most likely ) in the desired direction does the order open. Of course entry example above would depend on other examples as well such as trend and what potential reward existed as well from signal zone..

For a complete overview of how to trade with Candlesticks and Price Action and how to identify whether or not the price action is worth trading then I would recommend checking out the Premium Training at the Website.

About Timon Weller

Timon Weller is the professional Trader behind the blog Forex Reviews as well as a Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. Amazing tips!

    I just noted one candle formation which seems worth a trade: big candles (candles with big bodies). Reversal trades can be made with sell orders exactly on candle’s middle range, with target on the candle’s open. High %.

    What do you think?


    • Hey Joao,
      Do you mean once you have new big body candle ( engulfing ) suggesting a reversal place trade half on that candle in a way like trading on retrace..

      You may want to test it out in history over a few years.. Sounds similar to video on 1 hour pull back strategy going off weekly engulfing candle signals..


      • Hi!

        A picture is worth a thousand words…

        This kind of trade have a greater probability if the order (half on big candle range) is triggered up to 3 candles after big body candle. It means a fast retracement.

        Got it?

        • Hey Joao,
          I get what you are saying, nice one Joao.. I will do some testing of this in future. By the way, is this an 8 hour candle your highlight in blue or are you just highlighting half a daily move ( 8 candles )..?

          • I highlight just the big candle range.


            ps: and about 5-minute trading? Is there some clear and concise approach?

          • Hey Joao,
            With 5 minute trading there will be more losses overall, however same rule applies with this time frame, look left for structure points and then enter if price action aligns. Place stop above or below signal entry when entering trade. Keeping it simple is the best overall..

  2. Timon ,
    On the railroad candles are they always both the same size ?

  3. octavian says:

    Timon, of all the forex advisors I found on the internet, you are simply the best. Using the right amount of patience, your strategy works over and over again. All your articles are very apreciated. Please keep doing the great job. Thanks.

  4. I have to echo Octavian’s comment about your trading teaching being the best I’ve found in 10 years of trying to become a successful trader at working it at full time I might add. And, you’re also a patient gentleman which is a very rare commodity today.

    I’d have to say that I look for the resistance and support levels FIRST and then look for the typical doji, pin bars, railroad track candles followed by engulfing candles for further confirmation. BUT, one of the most valuable traits I’m (finally) gleaning from you is patience. Hope these comments help others.

    God bless you Timon. God knows you’re a blessing to me and my family.


    • Hey Mark,
      Thanks for the great feedback mate, appreciate it very much, helps let me know I am doing a good job and helping make a difference out there in the Forex community.
      Blessings to you and your family as well.. 🙂

  5. TIm
    Very good information – very much helps to solidify executions of trades
    thanks again

  6. Nigel Virgin says:

    Hi Timon,

    I also have to agree with a couple of the above statements, your teaching are the best I have found no nonsense strategies (KISS) and clear and easy to understand.
    Thank you again and look forward to future helpful hints.


  7. Hi Timon, thank you for all your tips they are very helpful and you are a great teacher .Thank you Jim

  8. Hi Timon
    It’s David here. Thanks again for your free and brilliant service. 🙂
    I’ve got a question and that is, With those daily support and resistance areas, can we use the daily Pivot Points instead or we have to draw them manually.
    The reason I’m asking is that we might not draw them correctly and as you said, that can be costly.
    Thanks again

    • Hey David,
      Your welcome mate. Good question, best answer to this is that not all support and resistance is equal in trading, many forms are what I refer to as midway zones which offer less value to a trader. By drawing them in manually you train the eye and the thought process to where the big traders ( such as banks, institutional trading firms, etc ) are looking to trade from. What some traders refer to as the smart money and that is what I recommend and teach ( Ref: The Engulfing Trader ) as areas to focus on as a trader.


  9. Hi mr. Timon, thanks for the reminder of these candles stick formations they are indeed powerful at the resistance, support levels. I see that Joao find himself some thing interesting that needs to be tested and I’m going to test it also. However I find a way to trade the five minute time frame successfully with bottom low risk high reward ratio and it works amazingly well everyday in London and New York open. But with the respect that I have for you I cannot disclose it on the comment section because if it wasn’t for your teachings I wouldn’t be here talking about forex right now.

  10. I would like to thanks Timon for his great work and simplicity in explaining price action. I found this website recently and I’m enjoying a lot.

  11. Thank you Timon for your lessons,they are great,very useful and so simple to understand.

  12. Senejani says:

    Great post Timon. Thank you.

  13. I love those strategies especially the engulfing pattern.i like the daily harami pattern because it reveals a possible consolidation in the hourly or H4 charts…big thanks

  14. Happy Holliday Season, Timon!
    Your teachings are much appreciated. I trade forex for about 15 years, so I use my own
    methods to trade, but your insights are very valuable and I feel pleasantly encouraged when my signals agree with yours.
    To you and your family the best in the year 2017!

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