Important:

The drawing of the candlestick ends a little earlier than the specified duration for visual separation purposes. In this regard, “gaps” will form on the chart — visual gaps between adjacent candles, caused by a sharp jump in price in the interval between candlestick constructions.

1. Doji

Is a candlestick with a very small body, or no body at all (the opening and closing prices are almost equal, or the same). When Doji appears on the chart after a strong trend, it can signal a likely price reversal.

There are several types of Doji:

1.1. "Long-Legged Doji" ("Rickshaw Man") — both shadows of the candle are long. Indicates uncertainty in the market.

1.2. "Dragonfly Doji" is a candlestick with a long lower shadow and no upper shadow (the opening and closing prices are approximately equal to the maximum price). Usually signals a trend reversal upward.

1.3. "Gravestone Doji" is a candlestick with a long upper shadow and no lower shadow (open and close prices are approximately equal to the minimum price). Usually signals a downward trend reversal.

1.4. "Four Price Doji" — a candlestick without shadows (the opening and closing prices are equal to the maximum and minimum prices).

2. The Hammer / Hangman

Is a candle whose body is located in the upper part, the upper shadow is absent or very small and the lower shadow is at least 1.5 times longer than the body. However, they can be of any color.

These candles are an important signal of a trend reversal. The hammer is at the end of a downtrend and speaks of a possible upward reversal, while the Hanged Man is at the top of an uptrend and speaks of a possible downward reversal.

3. Inverted Hammer / Shooting Star

Like the Hammer / Hanged Man, are signals for a trend reversal, but at the same time have long upper rather than lower shadows. An Inverted Hammer is at the end of a downtrend while a Shooting Star is at the end of an uptrend.

4. Spinning Top

Is a candlestick with long upper and lower shadows and a short body. Speaks about the indecision of sellers and buyers. A spinning top can signal a trend reversal if it appears at its peak.

5. Marubozu

Is a candle that consists only of a body and has no shadows. Unlike Spinning Top, it speaks of the decisiveness of buyers or sellers (depending on the color of the candle) and confirms a trend reversal if it appears after Doji or Spinning Top.