Candlestick Pattern Scanner — Complete guide

What are candlestick patterns?

Each candlestick summarizes four prices for a time window: open, high, low and close. Together, a sequence of candles reveals whether momentum is bullish, bearish or undecided.

Reversal patterns — the focus of this scanner — often appear after an extended move, when one side of the market starts to lose control. They are signals, not guarantees: confirmation from trend, volume and key levels remains essential.

Our engine looks for eight reversal families: Hammer, Bullish/Bearish Engulfing, Morning/Evening Star, Shooting Star, Hanging Man and Doji. Only the most recent signal per symbol and pattern is kept to reduce noise.

How to read a candlestick

Body — the rectangle between open and close. A long body means strong directional movement; a small body suggests indecision.

Wicks (shadows) — thin lines above and below the body. The upper wick marks the session high; the lower wick the session low. Long wicks often mean rejection at those prices.

Colour — on PEPS charts, green candles close above the open (bullish pressure on that bar); red candles close below the open (bearish pressure).

Context matters: the same shape at support after a downtrend (Hammer) differs from the same shape at resistance after a rally (Hanging Man). Always read the pattern inside the surrounding trend.

Bullish reversal patterns

Hammer — small body near the top, long lower wick (often ≥2× the body). Sellers pushed price down, but buyers reclaimed control by the close. Most meaningful at the bottom of a downtrend.

Bullish Engulfing — a small bearish candle followed by a larger bullish candle whose body fully covers the previous body. Suggests a shift from selling to buying pressure.

Morning Star — three candles at the end of a decline: long bearish bar, small indecision bar, then a strong bullish close. Indicates fading sell pressure and building demand.

In the scanner, bullish rows are tagged BULLISH. Check the confirmation panel: EMA trend alignment, volume vs 20-bar average, and proximity to support from Support & Resistance.

Bearish and neutral reversal patterns

Shooting Star — small body near the bottom, long upper wick. Buyers failed to sustain highs; often appears after an uptrend and warns of a possible turn down.

Bearish Engulfing — mirror of the bullish version: a bullish candle engulfed by a larger bearish body. Signals sellers taking control.

Evening Star — three-candle top formation: strong bullish bar, indecision, then a decisive bearish close. Classic exhaustion at the end of a rally.

Hanging Man — hammer-shaped candle but after an uptrend; same geometry as Hammer, opposite context. Treat as warning until confirmed.

Doji — open and close nearly equal; marks indecision. Alone it is neutral, but after a strong trend it can precede a reversal if the next bars confirm direction.

None of these patterns confirm a reversal by themselves. Use PEPS confirmations plus tools such as Trend Following, Multi-Timeframe and Smart Trade Advisor before acting.

Using patterns on PEPS Crypto

Pick a timeframe tab (1H, 4H, 1D). Higher timeframes produce fewer but generally more reliable signals.

Filter by bias or pattern type, then click a row. The chart highlights the pattern candle; the confirmation panel scores trend, volume and levels (e.g. 2/3 confirmed).

Strength (0–100) ranks shadow/body quality and recency — patterns within the last five bars score higher. Operability scoring adds next-candle confirmation and structure checks.

Use linked tools from each confirmation line: Trend Following for EMA bias, Support & Resistance for zones, Multi-Timeframe for alignment across horizons.