Single candles

Japanese name: marubozu – “shaved head”

A big green candle with no wicks (or minimal ones). Price opens at the bottom of the period and closes at its top. Buyers control the market from the first second to the last.

How to recognize it

• Long bullish body – significantly bigger than the average of the last 10–20 candles
• No or almost no upper and lower wicks
• Open = low, close = high
• Most significant after a decline or on the breakout of a level

The psychology

Throughout the entire period, sellers fail to push price below the open even for a moment, and buyers close at the absolute top. This is an expression of complete dominance and often marks the start of a new impulse.

How to trade it

Entry

On a break above the marubozu's high or on a pullback (retest) to 50% of the body.

Stop-loss

Below 50% of the body (aggressive) or below the candle's low (conservative).

Target

Next resistance or a minimum of 2R.

Japanese name: marubozu

A big red candle with no wicks. It opens at the top and closes at the bottom. Sellers dominate throughout the entire period.

How to recognize it

• Long bearish body, bigger than average
• No upper or lower wick (or minimal ones)
• Open = high, close = low
• Most significant after a rise or on a breakdown of support

The psychology

Buyers never once manage to lift price above the open. Sellers close at the bottom – nobody wants to buy even cheaper. A signal of strong downward pressure.

How to trade it

Entry

On a break below the candle's low or on a bounce to 50% of the body.

Stop-loss

Above 50% of the body or above the candle's high.

Target

Next support or a minimum of 2R.

Japanese name: doji – “at the same time”

A candle where the open and the close are at the same (or almost the same) level. The body looks like a thin horizontal line, and the wicks can be of different lengths.

How to recognize it

• Body equal or almost equal to zero (up to ~5–10% of the whole range)
• Upper and lower wick of roughly equal length
• Significant only after a clear move (trend)
• Requires confirmation from the next candle

The psychology

Buyers and sellers are in equilibrium. After a strong trend, a doji shows that the dominant side is losing momentum – the market “pauses to think”. On its own it is not a reversal signal but a warning.

How to trade it

Entry

Only after confirmation: in an uptrend – a close below the doji's low; in a downtrend – above its high.

Stop-loss

Behind the opposite end of the doji.

Target

The previous structure zone or 2R.

A doji with very long upper and lower wicks. Price moves strongly in both directions but closes where it opened.

How to recognize it

• Body almost zero
• Very long wicks in both directions
• The range is bigger than average
• Most significant at trend tops and bottoms

The psychology

A huge battle between buyers and sellers that ends in a “draw”. Volatility increases while direction is lost – it often precedes a reversal or a big move.

How to trade it

Entry

After a break of the candle's high or low in the direction of the confirmation.

Stop-loss

Behind the opposite end of the candle (the range is big – reduce your lot size!).

Target

2R or the next level.

Japanese name: tonbo

A doji with a long lower wick and no upper wick. Open, close and high are at the same level – at the top of the candle.

How to recognize it

• Open ≈ close ≈ high
• Long lower wick (at least 2–3 times the range of the “body”)
• No or minimal upper wick
• Appears after a decline, ideally at support

The psychology

Sellers drive price sharply lower, but buyers absorb all the pressure and bring it back up to the open. Rejection of lower prices.

How to trade it

Entry

Above the doji's high after a confirming bullish candle.

Stop-loss

Below the low of the lower wick.

Target

Next resistance or 2–3R.

Japanese name: toba

A doji with a long upper wick and no lower one. Open, close and low are at the same level – at the bottom of the candle.

How to recognize it

• Open ≈ close ≈ low
• Long upper wick
• No or minimal lower wick
• Appears after a rise, ideally at resistance

The psychology

Buyers push price up high, but sellers bring it back down to the open. The market rejects higher prices – the “grave” of the uptrend.

How to trade it

Entry

Below the doji's low after a confirming bearish candle.

Stop-loss

Above the high of the upper wick.

Target

Next support or 2–3R.

A candle where the open, high, low and close are at the same level – it looks like a small dash. It occurs in extremely low liquidity.

How to recognize it

• O = H = L = C (or nearly)
• Usually on very low timeframes or around holidays
• Has no trading value on its own

The psychology

The market is practically not trading – there's no interest from either side. It's important to recognize it so that you do NOT read it as a signal.

How to trade it

Entry

Not traded.

Japanese name: koma

A candle with a small body in the middle of the range and upper and lower wicks of roughly equal length. The color doesn't matter much.

How to recognize it

• Small body (less than ~30% of the whole range)
• The body is roughly in the middle
• The wicks are longer than the body
• Significant after a strong move

The psychology

Neither buyers nor sellers manage to take control. After a trend it shows slowing momentum – similar to a doji, but weaker.

How to trade it

Entry

After confirmation – a break of the high or the low.

Stop-loss

Beyond the opposite end of the candle.

Target

2R.

Japanese name: takuri

A candle with a small body in the upper part of the range and a long lower wick, at least twice as long as the body. It appears after a decline. The color can be green or red (green is stronger).

How to recognize it

• Appears after a downward move
• Lower wick ≥ 2× the body
• Small or no upper wick
• The body is in the upper third of the range

The psychology

Sellers push price down hard, but buyers step in aggressively and close near the high. The market “hammers” the bottom and rejects it.

How to trade it

Entry

Above the high of the hammer or after the next bullish candle closes.

Stop-loss

Below the low of the lower wick (+ a small buffer for the spread).

Target

The last decline (lower high) or 2–3R.

Japanese name: kubitsuri

A candle with the same shape as the hammer – a small body at the top and a long lower wick – but it appears after a rise. A red body is a stronger signal.

How to recognize it

• Appears after an upward move
• Lower wick ≥ 2× the body
• Small or no upper wick
• MANDATORY confirmation – the next candle closes below the body

The psychology

The long lower wick shows there was heavy selling during the period – the first sign that buyers aren't fully in control. If price falls the next day, those who bought at the top are left “hanging”.

How to trade it

Entry

Below the low of the body after a bearish confirmation candle.

Stop-loss

Above the high of the candle.

Target

The next support or 2R.

A small body in the lower part of the range and a long upper wick. It appears after a decline. It looks like a shooting star, but in the opposite context.

How to recognize it

• Appears after a downward move
• Upper wick ≥ 2× the body
• Small or no lower wick
• Requires confirmation – a bullish candle after it

The psychology

For the first time, buyers make a serious attempt to lift price. Even though buyers can't hold the high, sellers can no longer push price below the open. If the next candle opens high – the shorts start covering.

How to trade it

Entry

Above the high of the upper wick or after a strong bullish confirmation candle.

Stop-loss

Below the low of the inverted hammer.

Target

2R or the next resistance.

Japanese name: nagare boshi

A small body in the lower part of the range and a long upper wick after a rise. One of the most popular bearish reversal candles.

How to recognize it

• Appears after an upward move
• Upper wick ≥ 2× the body
• Small or no lower wick
• Strongest when it opens with a gap up and touches resistance

The psychology

Buyers lift price to a new high, but there they're met by massive selling and price collapses back to the open. The new highs are rejected – those who bought up there are sitting on a loss.

How to trade it

Entry

Below the low of the shooting star or after a bearish confirmation candle.

Stop-loss

Above the high of the upper wick (+ a buffer).

Target

The last higher low or 2–3R.

Japanese name: yorikiri bozu

A long bullish candle that opens at its low (no lower wick), usually with a gap down after a downtrend, and closes near the high.

How to recognize it

• Appears in a downtrend
• Opens at or near the low – no lower wick
• Long bullish body
• Often opens with a gap down

The psychology

The market opens low and sellers expect continuation, but from the very first minute buyers take control and don't let price go any lower.

How to trade it

Entry

Above the high of the candle or on a retest of the middle of the body.

Stop-loss

Below the open/low.

Target

2R or the next resistance.

Japanese name: yorikiri bozu

A long bearish candle that opens at its high (no upper wick), often with a gap up in an uptrend, and closes near the low.

How to recognize it

• Appears in an uptrend
• Opens at or near the high – no upper wick
• Long bearish body
• Often opens with a gap up

The psychology

The market opens high and buyers are happy – but a sell-off starts right away and doesn't stop until the end of the period.

How to trade it

Entry

Below the low of the candle or on a bounce to the middle of the body.

Stop-loss

Above the open/high.

Target

2R or the next support.