Candlestick patterns are one of the most important tools in technical analysis. They visually capture market psychology—showing who is in control, buyers or sellers—and help traders anticipate potential trend continuation or reversal.
This article explains three powerful single-candle patterns: Marubozu, Hammer, and Shooting Star.
1. Marubozu: The Candle of Pure Strength
What is a Marubozu?
A Marubozu is a candlestick with:
- No upper wick
- No lower wick
- Only a full body
This means the entire trading session moved in one direction without any pullback.
It signals complete dominance by buyers (bullish) or sellers (bearish).
Types of Marubozu
a) Bullish Marubozu
- Opens at the day’s low
- Closes at the day’s high
- No shadows (wicks)
Meaning:
Buyers controlled the entire session.
It indicates strong upward momentum, often used to confirm an uptrend or a breakout.
b) Bearish Marubozu
- Opens at the day’s high
- Closes at the day’s low
Meaning:
Sellers dominated the market throughout the session.
It signals strong downward pressure and potential continuation of a downtrend.
When is a Marubozu powerful?
- During trending markets (confirms momentum)
- After consolidation (strong breakout signal)
- Near key support/resistance levels
2. Hammer: A Bullish Reversal Signal
What is a Hammer?
A Hammer appears after a downtrend and has:
- A small real body at the top
- A long lower wick
- Little or no upper wick
Meaning:
Sellers pushed the price down, but buyers stepped in strongly and pulled the price back near the open.
This shows buyer strength and the possibility of a trend reversal.
Where is a Hammer most effective?
- At the end of a downtrend
- Near major support zones
- When the next candle closes bullish
3. Shooting Star: A Bearish Reversal Signal
What is a Shooting Star?
A Shooting Star forms after an uptrend and has:
- A small real body at the bottom
- A long upper wick
- Very small or no lower wick
Meaning:
Buyers pushed prices up, but sellers took control and forced the price back down by the close.
This creates uncertainty and signals a potential pullback or trend reversal.
When does a Shooting Star work best?
- At the top of an uptrend
- After strong rallies
- When followed by a bearish candle
Key Trading Psychology Behind These Patterns
| Pattern | Market Message | Who is in Control? |
|---|---|---|
| Bullish Marubozu | Strong buying pressure | Buyers |
| Bearish Marubozu | Intense selling pressure | Sellers |
| Hammer | Buyers defending the bottom | Buyers gaining control |
| Shooting Star | Sellers rejecting higher prices | Sellers gaining control |
Final Thoughts
Candlestick patterns are most powerful when:
- You consider the prior trend
- You look at support and resistance
- You combine them with volume and technical indicators
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