An inside bar is a candle completely contained within the range (high to low) of the previous candle. It represents a contraction of volatility and indecision. Inside bars are used as breakout setups — traders wait for price to break above or below the inside bar's range (or the 'mother bar' range) to enter.
Entire second candle within the first (mother) candle's range, Multiple inside bars (inside-inside bar) increase the compression, Mother bar often represents a strong trend candle, The breakout direction determines the trade
Inside bar at a key support/resistance level, Inside bar after a strong trend move (continuation setup), Break of the inside bar range with volume, Multiple inside bars creating maximum compression
Enter on break of inside bar high (bullish) or low (bearish), Stop on the opposite side of the inside bar, Target the measured move or next key level
4H, Daily are optimal; works on lower timeframes with faster execution
Inside bars are best traded as breakout setups, not reversal signals. The mother bar defines the true range. If trading daily, you can use 4H for a tighter entry after the daily inside bar forms.
A marubozu is a candle with no wicks (or very small wicks) — the open and close are at the extreme ends. A bullish marubozu opens at low, closes at high. A bearish marubozu opens at high, closes at low. Marubozus represent maximum conviction and can signal the start of a strong momentum move.
The shooting star is a bearish reversal candle with a small body near the low and a long upper shadow (at least 2× the body). It appears at the top of uptrends and signals that buyers pushed price higher but sellers took control. It is the inverted version of the hammer.
Three white soldiers are three consecutive large bullish candles with progressively higher closes, each opening within the prior candle's body. Three black crows are the bearish equivalent. These patterns signal strong momentum shifts and conviction from buyers (soldiers) or sellers (crows).
While not strictly a candlestick pattern, continuation triangles (ascending, descending, symmetrical) are multi-candle patterns where price contracts between converging trendlines. Breakouts from triangles tend to continue the prior trend. Triangles are measured-move patterns — the target equals the height of the triangle projected from the breakout point.