Candlestick Pattern Encyclopedia

Single Candle Patterns

The Building Blocks

Single candle patterns are the foundation of candlestick analysis. Each one tells a story about the battle between buyers and sellers during that period.

DOJI - The Indecision Candle

Doji - Open equals Close

Doji - Open equals Close

What it means: Perfect indecision. Buyers and sellers fought to a draw.
Signal: Potential reversal, especially at support/resistance.
Variations:
- Long-legged Doji: Long wicks both ways - extreme indecision
- Dragonfly Doji: Long lower wick, no upper - bullish
- Gravestone Doji: Long upper wick, no lower - bearish

HAMMER - The Bullish Reversal

Hammer - Bullish reversal signal

Hammer - Bullish reversal signal

What it means: Sellers pushed price down hard, but buyers fought back and closed near the high.
Signal: Bullish reversal after a downtrend.
Nickname: "The Hangman's Revenge"

INVERTED HAMMER

Inverted Hammer - Bullish but needs confirmation

Inverted Hammer - Bullish but needs confirmation

What it means: Buyers tried to push up but sellers pushed back. Still bullish because buyers showed interest.
Signal: Bullish, but needs confirmation.

SHOOTING STAR - The Bearish Reversal

Shooting Star - Bearish reversal signal

Shooting Star - Bearish reversal signal

What it means: Buyers pushed up hard, but sellers slammed it back down. Upper wick = rejected prices.
Signal: Bearish reversal after uptrend.
Nickname: "Meteor" or "Falling Star"

HANGING MAN

Hanging Man - Bearish warning at top of uptrend

Hanging Man - Bearish warning at top of uptrend

What it means: Looks like a Hammer but appears in an UPTREND. The long lower wick shows sellers are starting to appear.
Signal: Bearish warning - potential reversal coming.

MARUBOZU - Pure Momentum

Bullish:        Bearish:
┌──────┐        ┌──────┐
│██████│        │      │
│██████│        │      │
│██████│        │      │
└──────┘        └──────┘
(No wicks!)     (No wicks!)
What it means: Open = Low (bullish) or Open = High (bearish). Pure conviction with no rejection.
Signal: Strong continuation. Buyers/sellers in complete control.
Nickname: "Bald candle" or "Clean sweep"

SPINNING TOP

     │
     │
    ┌┼┐     ← Tiny body, wicks both sides
    └┼┘
     │
     │
What it means: Similar to Doji but with a small body. Shows indecision and potential trend weakness.
Signal: Neutral - watch for follow-through.

Single candle patterns are more reliable when they appear at key support/resistance levels or after extended moves.

Key Takeaways

  • Doji = indecision, Hammer = bullish reversal, Shooting Star = bearish reversal
  • Marubozu = pure momentum with no wicks
  • Context matters - same pattern means different things in different trends
  • Always wait for confirmation on the next candle