๐ How to Read โOne-Candle Signalsโ
For short-term traders, even a single candle can tell a story. Here are 4 common one-candle patterns to know:
1๏ธโฃ Long Upper Shadow
Bearish signal โ sellers are taking profit.
The longer the wick on top, the stronger the selling pressure.
2๏ธโฃ Long Lower Shadow
Bullish signal โ buyers are stepping in hard.
The longer the wick at the bottom, the stronger the buying pressure.
3๏ธโฃ Doji Candle
No body (open = close) โ market indecision.
Often appears before a reversal.
Fun fact: โDojiโ means error in Japanese โ itโs rare for open and close to match exactly.
4๏ธโฃ Umbrella Shapes
Hammer (red umbrella) โ heavy buying, possible bounce upward.
Hanging Man (green umbrella) โ sellers may be ready to reverse an uptrend.
๐ก Tip: One-candle signals are hints, not guarantees. Always check the bigger picture before trading.