■ Single Candlestick Patterns Guide
Candlestick patterns are important indicators in technical analysis. Single candlestick patterns often
indicate market reversals, continuations, or indecision. Below are the most common single
candlestick patterns with their meanings and trading guidelines.
Hammer
Bullish reversal at the bottom of a downtrend. Small body on top with long lower shadow. Trading
Tip: Enter long after confirmation, stop loss below the low.
Hanging Man
Bearish reversal at the top of an uptrend. Similar to hammer but signals weakness. Trading Tip:
Enter short after bearish confirmation.
Inverted Hammer
Bullish reversal at the bottom of a downtrend. Long upper shadow with small lower body. Trading
Tip: Enter long after breakout above high.
Shooting Star
Bearish reversal at the top of an uptrend. Looks like inverted hammer but at top. Trading Tip: Enter
short after confirmation candle.
Marubozu
Strong directional candle with no shadows. Indicates strong bullish or bearish momentum. Trading
Tip: Follow the direction of trend.
Spinning Top
Small body with long wicks both sides. Indicates market indecision. Trading Tip: Wait for breakout
direction.
Doji
Open ≈ Close. Shows indecision. Variants: Dragonfly Doji (bullish), Gravestone Doji (bearish),
Long-legged Doji (strong indecision). Trading Tip: Always confirm with next candle and context.
■ Summary Table
Pattern Type Location Signal Suggested Action
Hammer Reversal Bottom of downtrend Bullish Go long on confirmation
Pattern Type Location Signal Suggested Action
Hanging Man Reversal Top of uptrend Bearish Short after confirmation
Inverted Hammer Reversal Bottom of downtrend Bullish Buy after breakout
Shooting Star Reversal Top of uptrend Bearish Sell after confirmation
Marubozu Continuation Any trend Directional Follow the trend
Spinning Top Indecision Any phase Neutral Wait for breakout
Doji Indecision/Reversal Top/Bottom zones Mixed Confirm with context
