Learnforexbasic Candlestick Patterns

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Elementary Japanese Candlesticks
Basic Japanese Candlestick Patterns
What do spinning tops, marubozus, and dojis have in

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They’re all the basic types of Japanese candlesticks!
Let’s take a look at each type of candlestick and what

they mean in terms of price action.
Spinning Tops
Japanese candlesticks with a long upper shadow, long lower shadow, and
small real bodies are called spinning tops. The color of the real body is
not very important.
The Spinning Top pattern indicates the indecision between the buyers and
sellers.
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The small real body (whether hollow or filled) shows little movement from
open to close, and the shadows indicate that both buyers and sellers were
fighting but nobody could gain the upper hand.
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Even though the session opened and closed with little change, prices
moved significantly higher and lower in the meantime.
Neither buyers nor sellers could gain the upper hand, and the result was a
standoff.
If a spinning top forms during an uptrend, this usually means there

aren’t many buyers left and a possible reversal in direction could occur.
If a spinning top forms during a downtrend, this usually means there
aren’t many sellers left and a possible reversal in direction could occur.
Marubozu
Sounds like some kind of voodoo magic, huh? “I will cast the evil spell of
the Marubozu on you!”
Fortunately, that’s not what it means. Marubozu means there are no

shadows from the bodies.
The word “marubozu ” translates to “bald head” or “shaved head” in

Japanese.
So a Marubozu candlestick is a bald candle or shaved candle means it has

no shadow or wick.
Depending on whether the candlestick’s body is filled or hollow, the high

and low are the same as its open or close.
Check out the two types of Marubozus in the picture below.
A White Marubozu contains a long white body with no shadows. The open
price equals the low price and the close price equals the high price.
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This means that the candle opened at its lowest price and closed at its
highest price.
This is a very bullish candle as it shows that buyers were in control of the
entire session. It usually becomes the first part of a bullish continuation or a
bullish reversal pattern.
A Black Marubozu contains a long black body with no shadows. The open
equals the high and the close equals the low.
This means that the candle opened at its highest price and closed at its
lowest price.
This is a very bearish candle as it shows that sellers controlled the price
action the entire session. It usually implies bearish continuation or bearish
reversal.
Depending on where a marubozu is located and what color it is, here are
few guidelines:
White Marubozu
If a White Marubozu forms at the end of an uptrend, a continuation is

likely.
If a White Marubozu forms at the end of a downtrend, a reversal is
likely.
Black Marubozu
If a Black Marubozu forms at the end of a downtrend, a continuation
is likely.
If a Black Marubozu forms at the end of an uptrend, a reversal is likely.
Doji
Doji candlesticks have the same open and close price or at least their
bodies are extremely short. A Doji should have a very small body that
appears as a thin line.
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Doji candles suggest indecision or a struggle for turf positioning between

buyers and sellers.
Prices move above and below the open price during the session, but close
at or very near the open price.
Neither buyers nor sellers were able to gain control and the result was
essentially a draw.
There are FOUR special types of Doji candlesticks.
The length of the upper and lower shadows can vary and the resulting forex
candlestick looks like a cross, inverted cross, or plus sign.
The word “Doji” refers to both the singular and plural form.
When a Doji forms on your chart, pay special attention to the preceding
candlesticks.
If a Doji forms after a series of candlesticks with long hollow bodies (like
White Marubozus), the Doji signals that the buyers are becoming
exhausted and weakening.
In order for the price to continue rising, more buyers are needed but there
aren’t any more! Sellers are licking their chops and are looking to come in
and drive the price back down.
If a Doji forms after a series of candlesticks with long filled bodies (like
Black Marubozus), the Doji signals that sellers are becoming exhausted
and weakening.
In order for the price to continue falling, more sellers are needed but sellers
are all tapped out! Buyers are foaming in the mouth for a chance to get in
cheap.
While the decline is sputtering due to a lack of new sellers, further buying
strength is required to confirm any reversal.
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Look for a white candlestick to close above the long black candlestick’s
open.
In the next following lessons, we will take a look at specific Japanese

candlestick patterns and what they are telling us.
Hopefully, by the end of this lesson on Japanese candlesticks, you

will know how to recognize different types of candlestick patterns and make
sound trading decisions based on them.
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Single Candlestick Patterns
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babypips

Elementary Japanese Candlesticks

Basic Japanese Candlestick Patterns

What do spinning tops, marubozus, and dojis have in

They’re all the basic types of Japanese candlesticks!

Let’s take a look at each type of candlestick and what

If a spinning top forms during an uptrend, this usually means there

Fortunately, that’s not what it means. Marubozu means there are no

The word “marubozu ” translates to “bald head” or “shaved head” in

So a Marubozu candlestick is a bald candle or shaved candle means it has

Depending on whether the candlestick’s body is filled or hollow, the high

Check out the two types of Marubozus in the picture below.

If a White Marubozu forms at the end of an uptrend, a continuation is

Doji candles suggest indecision or a struggle for turf positioning between

There are FOUR special types of Doji candlesticks.

In the next following lessons, we will take a look at specific Japanese

Hopefully, by the end of this lesson on Japanese candlesticks, you

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