Well, I am back with few more single Candlestick Patterns. As promised, these are not twins having different names. Let's look at them before we get to multi-candlestick patterns from next post.
Marubozu is pattern characterized by absence of horns or shadow on either side. It is basically a body only candlestick. White (or Green) Marubozu indicates that after the opening price bulls took control and remained winner throughout the trading session. It is obviously considered very bullish. On the other hand a Black (or Red) Marubozu is formed when sellers remain in control after the opening bell and close the price at it's lowest level of the day... it is very bearish. See below.
Spinning Top is what we call as classic text book candlestick. It consists of a body in the middle with almost similar size shadows on both sides. It usually indicates that market is unable to decide the trend. During the day, at some point, both bulls and bears had control but by the end of the day price was closing at or near the opening level again. It kind of indicates an indecision about the further trend of the underlying and if Spinning Top appears at the end of a long uptrend/ downtrend it usually indicates an exhaustion. It indicates that a reversal in the trend may be due now.
This is most that you can get about single candlestick patterns out there. These are pretty strong patterns in their own right but still multiple (2/3) candlestick patterns are stronger indicators and we will get to them next post onward. Keep hanging man...
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