Japanese Candlestick Cheat Sheet – Part OneSingle-Candle Formations That Speak
Before you dream of profits, learn the one language that never lies: price.
Indicators are just subtitles — price is the voice.
Japanese candlesticks are more than just red and green bars — they reflect emotion, pressure, and intention within the market.
This series will walk you through the real psychology behind candlestick patterns — starting here, with the most essential:
🕯️ Single-candle formations — the quiet signals that often appear before big moves happen.
If you can’t read a doji, you’re not ready to understand the market’s hesitation.
If you ignore a hammer, you’ll miss the moment sentiment shifts.
Let’s start simple. Let’s start strong.
This is Part One of a five-part series designed to build your candlestick fluency from the ground up.
1. DOJI
Bias: Neutral
What is the Doji pattern?
The Doji candlestick pattern forms when a candle’s open and close prices are nearly identical, resulting in a small or nonexistent body with wicks on both sides. This pattern reflects market equilibrium, where neither buyers nor sellers dominate. Dojis often appear at trend ends, signaling potential reversals or pauses.
As a fundamental tool in technical analysis, Dojis help traders gauge the psychological battle between buyers and sellers. Proper interpretation requires context and experience, especially for spotting trend shifts.
Meaning:
Indicates market indecision or balance. Found during trends and may signal a reversal or continuation based on context.
LONG-LEGGED DOJI
Bias: Neutral
What is the Long-Legged Doji pattern?
The Long-Legged Doji captures a moment of intense uncertainty and volatility in the market. Its long wicks represent significant movement on both sides, suggesting that neither buyers nor sellers have control. This back-and-forth reflects the psychology of market participants wrestling for control, which often foreshadows a shift in sentiment. When traders see a Long-Legged Doji, it highlights the need to monitor for potential changes in direction.
They can appear within trends, at potential reversal points, or at consolidation zones. When they form at the end of an uptrend or downtrend, they often signal that the current trend may be losing momentum.
Meaning:
The prominent wicks indicate volatility. Buyers and sellers pushed prices in opposite directions throughout the session, ultimately reaching an indecisive close.
SPINNING TOP
Bias: Neutral
What is the Spinning Top pattern?
A Spinning Top is a candlestick with a small body and long upper and lower wicks, indicating that the market has fluctuated significantly but ultimately closed near its opening price. This pattern often points to a moment of indecision, where both buyers and sellers are active but neither dominates. Spinning Tops are commonly found within both uptrends and downtrends and can suggest that a trend is losing momentum.
For traders, a Spinning Top provides a valuable insight into market psychology, as it hints that the prevailing sentiment may be weakening. While Spinning Tops alone aren’t always definitive, they can serve as a precursor to larger moves if the following candles confirm a shift in sentiment.
Meaning:
Shows indecision between buyers and sellers. Common in both up and downtrends; signals potential reversal or pause.
HAMMER
Bias: Bullish
What is the Hammer pattern?
A Hammer candlestick appears at the end of a downtrend, with a small body and a long lower wick. This shape reflects a moment when sellers pushed prices lower, but buyers managed to absorb the selling pressure and drive prices back up before the close. This pattern is particularly important for spotting potential reversals, as it indicates that buyers are beginning to reassert control.
Hammers reveal the underlying psychology of a market where buying confidence is emerging, even if sellers have dominated for a while. To successfully trade this pattern, it’s essential to confirm the reversal with subsequent candles.
Meaning:
Showing rejection of lower prices. Signals potential bullish reversal, especially if followed by strong buying candles.
INVERTED HAMMER
Bias: Bullish
What is the Inverted Hammer pattern?
The Inverted Hammer forms at the bottom of a downtrend, with a small body and long upper wick. This pattern shows that buyers attempted to push prices higher, but sellers ultimately brought them back down by the close. The Inverted Hammer is an early sign of buyer interest, hinting that a trend reversal may be underway if subsequent candles confirm the shift.
Interpreting the Inverted Hammer helps traders understand where sentiment may be shifting from bearish to bullish, often marking the beginning of a recovery. Recognizing these patterns takes practice and familiarity with market conditions.
Meaning:
Showing rejection of higher prices. Can signal bullish reversal if confirmed by subsequent buying pressure.
DRAGONFLY DOJI
Bias: Bullish
What is the Dragonfly Doji pattern?
The Dragonfly Doji has a long lower wick and no upper wick, forming in downtrends to signal potential bullish reversal. This pattern reveals that sellers were initially in control, pushing prices lower, but buyers stepped in to push prices back up to the opening level. The Dragonfly Doji’s unique shape signifies that strong buying support exists at the lower price level, hinting at an impending reversal.
Recognizing the psychology behind a Dragonfly Doji can enhance a trader’s ability to anticipate trend changes, especially in markets where support levels are being tested.
Meaning:
Found in downtrends; suggests possible bullish reversal if confirmed by a strong upward move.
BULLISH MARUBOZU
Bias: Bullish
What is the Bullish Marubozu pattern?
The Bullish Marubozu is a large, solid candle with no wicks, indicating that buyers were in complete control throughout the session. This pattern appears in uptrends, where it signals strong buying momentum and often foreshadows continued upward movement. The absence of wicks reveals that prices consistently moved higher, with little resistance from sellers.
For traders, the Bullish Marubozu offers a glimpse into market psychology, highlighting moments when buyer sentiment is particularly strong. Learning to identify these periods of intense momentum is crucial for trading success.
Meaning:
Showing complete buying control. Found in uptrends or at reversal points; indicates strong buying pressure and likely continuation of the trend.
SHOOTING STAR
Bias: Bearish
What is the Shooting Star pattern?
The Shooting Star appears at the top of an uptrend, characterized by a small body and a long upper wick, indicating a potential bearish reversal. Buyers initially drove prices higher, but sellers took over, bringing prices back down near the open. This shift suggests that buyers may be losing control, and a reversal could be imminent.
Interpreting the Shooting Star gives traders valuable insights into moments when optimism begins to fade, providing clues about a potential trend shift.
Meaning:
Indicating rejection of higher prices. Signals a potential bearish reversal if followed by selling pressure.
HANGING MAN
Bias: Bearish
W hat is the Hanging Man pattern?
The Hanging Man candle forms at the top of an uptrend, with a small body and long lower wick. This pattern suggests that sellers attempted to drive prices down, but buyers regained control. However, the presence of a long lower shadow hints that sellers may be gaining strength, potentially signaling a bearish reversal.
The Hanging Man pattern reflects market psychology where buyers might be overextended, making it a valuable tool for identifying potential tops in trends.
Meaning:
Signals potential bearish reversal if confirmed by selling candles afterward.
GRAVESTONE DOJI
Bias: Bearish
What is the Gravestone Doji pattern?
With a long upper wick and no lower wick, the Gravestone Doji reveals that buyers pushed prices up, but sellers eventually regained control. Found in uptrends, it suggests that a bearish reversal could be near, as the upper shadow indicates buyer exhaustion. The Gravestone Doji often appears at market tops, making it a valuable indicator for those looking to anticipate shifts.
Understanding the psychology behind this pattern helps traders make informed decisions, especially in markets prone to overbought conditions.
Meaning:
Showing rejection of higher prices. Found in uptrends; signals potential bearish reversal if followed by selling activity.
BEARISH MARUBOZU
Bias: Bearish
What is the Bearish Marubozu pattern?
The Bearish Marubozu is a large, solid bearish candle without wicks, showing that sellers held control throughout the session. Found in downtrends, it signals strong bearish sentiment and suggests that the trend is likely to continue. The lack of wicks reflects consistent downward momentum without significant buyer support.
This pattern speaks about market psychology, offering traders insights into moments of intense selling pressure. Recognizing the Bearish Marubozu can help you align with prevailing trends and avoid buying into weakening markets
Meaning:
Showing strong selling pressure. Found in downtrends; signals continuation of the bearish trend or an intensifying sell-off.
👉 Up next: Double-candle formations – where price meets reaction.
