The power of candlesticks partially stems from a self-fulfilling prophecy.  

The tremendous volume of traders who utilize candlestick charts translate into predictable market movements based upon certain formations.

For example, if a bullish pattern emerges, then market participants predictably will enter into long positions. 

On the basis of this fundamental, self-fulfilling prophecy truth, the most widely utilized and recognized candlestick formations are those that will be the most consistent performers. 

The following top 5 five candlestick formations are the most popular among technical analysts, and, therefore, have the highest probability of producing the most reliable and consistent results.

Doji Formations

Doji formations, such as dragonfly and tombstone, are widely regarded as strong indicators of a probable reverse. 

They both consist of a single horizontal line indicating that both the closing and opening prices were identical. 

As a result, there is no body, and the wick is either rising for a gravestone Doji or falling for a dragonfly Doji. 

The gravestone pattern implies depleted bullish sentiment and, consequently, a downward movement will subsequently appear.  A dragonfly pattern is naturally an opposite bullish type of signal.

Piercing and Cloud Cover Formations

Both of these formations are basically mirror images of each other and represent reversal signal patterns. 

The piercing pattern consists of a long black candlestick followed by a long white one that closes over halfway up the first candlestick.  The implication is that market participants, who sold on the first day in anticipation of a continuing downward movement, had to cover their shorts, and, as a result, prices rose and will likely continue in that direction. 

The cloud cover pattern, on the other hand, is a bearish indicator for similar reasons and is formed by a long white candlestick followed by a long black one that closes over halfway below the first candlestick.

Engulfing Formations

The bullish engulfing formation consists of a short blackbody candlestick followed by a taller white bodied candlestick that begins below and ends above the previous day's trading range. 

This means prices on the second day opened lower than the first and closed higher.  This is a highly bullish formation and indicates a long position should be considered. 

A bearish engulfing pattern would be the opposite with a short white bodied candlestick followed by a longer black bodied candlestick.  Here the signal is bearish and consideration should be made for selling short.

Hammer and Shooting Star Formations

These patterns are basically short candles with one long wick.  For the hammer, the wick points downwards, whereas for the shooting star, it points upwards.  The hammer is considered bullish in that price action clearly was able to reverse all selling sentiment, while the shooting star would be viewed as bearish for a similar reasoning logic.

Harami Formations

A bullish Harami consists of a long black candlestick with a close near the low, followed on the next day by a short white candlestick.  This indicator is interpreted as signaling that selling pressure dominated the market on the first day, but was halted on the second, suggesting that upward movement in prices will continue.  A bearish Harami has the exact opposite structure and interpretation.