Candlestick Formations

Black and White Marubozu. Marubozu candlesticks do not have upper or lower shadows and the high and low are represented by the open or close. A White Marubozu forms when the open equals the low and the close equals the high. This indicates that buyers controlled the price action from the first trade to the last trade. Black Marubozu form when the open equals the high and the close equals the low. This indicates that sellers controlled the price action from the first trade to the last trade.

Long Black and White Real Bodys. Long white candlesticks indicate aggressive buying. Conversely, long black candlesticks show strong selling pressure. See also, Trend Day.

Spinning Tops. Candlesticks with a long upper shadow, long lower shadow, and small real body are called spinning tops. Spinning tops are said to represent indecision. The small real body shows little movement from open to close, and the shadows indicate that both bulls and bears were active during the session, but neither dominated. See also, Neutral Day.

Doji. Doji form when a instrument's open and close are virtually equal. Some regard open-close equality a necessary Doji qualification while others do not. The length of the upper and lower shadows can vary. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation.