Stock Market · Technical Analysis

Single candlestick patterns

Marubozu. The candle with no wicks

A Marubozu has no upper or lower wick. The price opened at one extreme and closed at the other without pulling back. This shows complete domination by one side.

• Bullish Marubozu: opens at low, closes at high → buyers were in full control all session
• Bearish Marubozu: opens at high, closes at low → sellers crushed buyers throughout

> Marubozu candles near the end of trends are especially significant. They signal strong momentum.

Doji. The battle that ended in a draw

A Doji has nearly the same open and close price, giving it almost no body. Buyers and sellers fought all session and neither won. This signals indecision. A potential reversal is possible.

Types of Doji:

• Standard Doji: tiny body, roughly equal wicks both sides
• Gravestone Doji: no lower wick, long upper wick. Bears won at the end (bearish)
• Dragonfly Doji: no upper wick, long lower wick. Bulls won at the end (bullish)

Spinning Top, mild indecision

Small body with wicks on both sides, but the body is larger than a Doji. Both bulls and bears showed up but neither took control decisively. Less significant than a Doji but still signals caution.

1 candlecan sometimes signal an entire trend reversal

How to use these patterns

Single candle patterns need context. A Doji near resistance after a long uptrend is a strong reversal signal. The same Doji in the middle of sideways movement means almost nothing. Always look at the surrounding price action.

Takeaway. Marubozu = one side dominated; Doji = indecision; Spinning Top = mild indecision. Context is everything.