Some short-term traders make decisions based on the shape of just one candle on a chart.
If you’re new to candlestick analysis, learning these quick “one-candle signals” can give you an edge.
1. Long Upper Shadow#TradingCandles
Meaning: Often signals bearish pressure.
Why: Shows sellers stepping in to take pro$fits after buyers pushed the price higher.
Tip: The longer the upper shadow, the stronger the bearish hint.
2. Long Lower Shadow
Meaning: Usually a bullish sign.
Why: Indicates strong buying pressure that pushes the price back up.
Tip: A longer lower shadow often means a more reliable bullish signal.
3. Doji Candle
Meaning: Market indecision, possible reversal ahead.
Why: The open and close prices are nearly identical, forming no real body.
Fun fact: “Doji” is Japanese for “error,” because it’s rare for prices to match so perfectly. This pattern dates back to Japanese rice traders in the 1700s.
4. Umbrellas (Hammers & Hanging Men)
Structure: Long lower wick with a small body on top.
Hammer (often red): Bullish signal — strong buying interest after a price dip.
Hanging Man (often green): Bearish warning — sellers may soon take profits, reversing an uptrend.
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💡 Pro tip:
Never rely on a single candle in isolation. Always consider the broader trend, volume, and market conditions before making a trade.
