
Basic Japanese candlestick patterns

Basic Japanese candlestick patterns
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.
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
The word “marubozu ” translates to “bald head” or “shaved head” in Japanese.
Depending on whether the candlestick’s body is filled or hollow, the high and low are the same as its open or close.
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.
Prices move above and below the open price during the session, but close at or very near the open price.
There are four special types of Doji candlesticks.
The word “Doji” refers to both the singular and plural form.
In the next following lessons, we will take a look at specific Japanese candlestick patterns and what they are telling us.