Single candle patterns in stock trading can be bullish or bearish indicators:
Bullish
Hammer
A small body at the top of the candle with a long lower shadow indicates a potential reversal of a downtrend.
Inverted Hammer
Similar to the hammer but with a long upper shadow, also signaling a potential bullish reversal.
Dragonfly Doji
The open and close prices are equal, forming a T shape, suggesting a strong potential for an upward price movement.
Bullish Spinning Top
A small real body centered between long wicks indicates indecision but can signal a potential bullish reversal, especially after a downtrend.
Bearish
Hanging Man
Similar in shape to the hammer but appears after an uptrend, signaling a potential bearish reversal.
Shooting Star
Similar to the inverted hammer but occurs after an uptrend, indicating a potential bearish reversal.
Gravestone Doji
The open and close prices are equal, forming an inverted T shape, suggesting a strong potential for a downward price movement.
Bearish Spinning Top
Similar to the bullish spinning top but can signal a potential bearish reversal, especially after an uptrend.
