Patterns are – Doji, Marubozu and Spinnig Top
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.
Doji candles suggest indecision between buyers and sellers. Neither buyers nor sellers were able to gain control and the result was essentially a draw.
After Doji is formed in uptrend this signals that the buyers are becoming exhausted and weakening.
There are four special types of Doji candlesticks.
Doji is formed when opening and closing prices are virtually the same. The length of shadows can vary. It is considered that doji candlesticks are usually components of many candlestick pattern.
Dragon Fly Doji is formed when the opening and the closing prices are at the highest of the day. If it has a longer lower shadow it signals more bullish trend. When it appears at market bottom it is considered as a reversal signal.
Gravestone Doji is formed when the opening and closing prices are at the lowest of the day. If it has a longer upper shadow it signals more bearish trend. When it appears at market top it is considered as a reversal signal.
Long Legged Doji is consists of a Doji with very long upper and lower shadow. When it appears at market top it is considered as a reversal signal.
A black or a white candlestick is formed with a small body. The size of shadows can vary. It is interpreted as a neutral pattern but gains more importance when it is part of other formations.
If a spinning top forms during an uptrend, this usually means that buyers are exhausted and a possible reversal in direction could occur.
If a spinning top forms during a downtrend, this usually means that sellers are exhausted and a possible reversal in direction could occur.
A long or a normal candlestick (black or white) is formed with no shadow or tail. The high and the low is consisted of the opening and the closing prices. It is considered as a continuation pattern.
While Marubozu is a bullish candle as it shows that buyers were in control the entire period of time. It is usually the first signal of a bullish continuation or a bullish reversal pattern.
Black Marubozu is a bearish candle as it shows that sellers were in control the entire period of time. It is usually the first signal of a bearish continuation or a bearish reversal patter.