0% found this document useful (0 votes)
2 views8 pages

Single Candlestick Patterns Guide

This document is a beginner-friendly guide to six single candlestick patterns used in trading, including Doji, Hammer, Inverted Hammer, Hanging Man, Shooting Star, and Bullish Marubozu. Each pattern is explained with its shape, meaning, and confirmation criteria, emphasizing the importance of context and confirmation before making trading decisions. The guide concludes with a quick revision sheet and a practice exercise to identify real chart examples of each pattern.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
2 views8 pages

Single Candlestick Patterns Guide

This document is a beginner-friendly guide to six single candlestick patterns used in trading, including Doji, Hammer, Inverted Hammer, Hanging Man, Shooting Star, and Bullish Marubozu. Each pattern is explained with its shape, meaning, and confirmation criteria, emphasizing the importance of context and confirmation before making trading decisions. The guide concludes with a quick revision sheet and a practice exercise to identify real chart examples of each pattern.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Single Candlestick Patterns — Learning Guide

Beginner-friendly • 6 patterns • 2 visual examples for every pattern

How to read a candle


Open: where price started. Close: where it ended. High/Low: highest and lowest traded price. The thick part is
the body; thin lines are wicks/shadows.

Golden rule: A candle pattern is a probability clue, not a guaranteed prediction. Always consider trend,
support/resistance, volume and confirmation.
1. Doji
Shape: Open and Close are almost the same. The body is very small; wicks can vary.

Meaning: Market indecision. Doji is not automatically a Buy/Sell signal.

Confirmation: Check trend, key levels and the next candle for confirmation.

1. Doji

Example 1 Example 2

Strong move → Doji • Wait for confirmation

Example 1: The pattern appears in the stated market context. Wait for the confirmation instead of entering immediately.

Example 2: The same candle shape can behave differently when its surrounding trend or price level changes. Context gives the
candle meaning.
2. Hammer
Shape: Small body near the top with a long lower wick. Usually appears after a decline.

Meaning: Sellers pushed price down, but buyers rejected lower prices. Possible bullish reversal.

Confirmation: Prefer confirmation when the next candle breaks/closes above the Hammer high.

2. Hammer

Example 1 Example 2

Downtrend → Hammer • Possible bullish reversal

Example 1: The pattern appears in the stated market context. Wait for the confirmation instead of entering immediately.

Example 2: The same candle shape can behave differently when its surrounding trend or price level changes. Context gives the
candle meaning.
3. Inverted Hammer
Shape: Small body with a long upper wick. Usually appears after a decline.

Meaning: Buyers attempted to push price higher. It becomes stronger with confirmation.

Confirmation: Look for the next candle to move above the Inverted Hammer high.

3. Inverted Hammer

Example 1 Example 2

Downtrend → Inverted Hammer • Possible bullish reversal

Example 1: The pattern appears in the stated market context. Wait for the confirmation instead of entering immediately.

Example 2: The same candle shape can behave differently when its surrounding trend or price level changes. Context gives the
candle meaning.
4. Hanging Man
Shape: Hammer-like shape, but it appears after an advance.

Meaning: Shows selling pressure during an uptrend. It is a warning, not a guarantee.

Confirmation: Bearish confirmation can be a break/close below its low.

4. Hanging Man

Example 1 Example 2

Uptrend → Hanging Man • Possible bearish warning

Example 1: The pattern appears in the stated market context. Wait for the confirmation instead of entering immediately.

Example 2: The same candle shape can behave differently when its surrounding trend or price level changes. Context gives the
candle meaning.
5. Shooting Star
Shape: Small body near the lower part with a long upper wick. Usually appears after an advance.

Meaning: Buyers pushed price up, but sellers rejected higher prices. Possible bearish reversal.

Confirmation: Look for the next candle to close/break below the Shooting Star low.

5. Shooting Star

Example 1 Example 2

Uptrend → Shooting Star • Possible bearish reversal

Example 1: The pattern appears in the stated market context. Wait for the confirmation instead of entering immediately.

Example 2: The same candle shape can behave differently when its surrounding trend or price level changes. Context gives the
candle meaning.
6. Bullish Marubozu
Shape: Large bullish body with little or no upper/lower wick.

Meaning: Strong buying control from open toward close; shows bullish momentum.

Confirmation: Use with trend, breakout and volume context; avoid blindly chasing a large candle.

6. Bullish Marubozu

Example 1 Example 2

Strong buying → Marubozu • Bullish momentum

Example 1: The pattern appears in the stated market context. Wait for the confirmation instead of entering immediately.

Example 2: The same candle shape can behave differently when its surrounding trend or price level changes. Context gives the
candle meaning.
Quick Revision Sheet
Pattern Typical context Main idea Confirmation

Doji Any trend / key level Indecision Next candle

Hammer After decline Bullish reversal possibility Above high

Inverted Hammer After decline Bullish reversal possibility Above high

Hanging Man After advance Bearish warning Below low

Shooting Star After advance Bearish reversal possibility Below low

Bullish Marubozu Bullish move/breakout Strong buying momentum Context + volume

Practice: Find 10 real chart examples of each pattern. Mark the prior trend, candle high/low, confirmation candle and what happened
next. This guide is educational, not financial advice.

You might also like