Before reading this lesson you should have previously read through:

Single candlestick patterns are what the name suggests: Japanese candlestick formations composed of just one candlestick.

Single candlestick patterns are Japanese candlestick formations composed of just one candlestick. They can help you predict price reversals.

They can be traded independently and come in three main types, each of which has a bullish and a bearish version:

  • Yo Sen (bullish) and In Sen (bearish)
  • Hammer (bullish) and Hanging Man (bearish)
  • Inverted Hammer (bullish) and Shooting Star (bearish)

Single candlesticks help you predict when prices may be about to reverse or continue, depending on what the pattern is.

Yo Sen and In Sen patterns

The Yo Sen and the In Sen candlestick patterns consist of a full body and short or non-existent wicks.

The bullish Yo Sen is an upward candle with a full body and very short or non-existent wicks. The bearish In Sen is a downward candle with a full body and very short or non-existent wicks.

Yo Sen candlestick

The bullish Yo Sen candlestick appears as a single upward candle with a full body and very short or non-existent wicks. It signals a buying opportunity. The following image shows how it appears on a chart:

Yo Sen
number_1 Bullish Yo Sen.

In Sen candlestick

The bearish In Sen candlestick appears as a single downward candle with a full body and very short or non-existent wicks. It signals a selling opportunity.

The image below shows how the In Sen candlesticks appear on a price chart:

In Sen
number_1Bearish In Sen candlestick.

Hammer and Hanging Man patterns

The hammer and Hanging Man both appear as a candle with a small body at the top and a much longer lower wick and both predict price reversals. The bullish Hammer however appears during falling markets and the bearish Hanging Man appears during rising markets.

The Hammer and the Hanging Man candlesticks are exactly the same in appearance but occur in different conditions and give different signals.

Both appear as a candle with a small body at the top and a wick at the bottom that is two or three times longer than the body. There is no wick above the body. The colour of the body is not important.

Hammer candlestick

If this kind of candlestick appears when prices are falling, it is called a Hammer. It indicates that the downtrend may have reached its bottom limit and that prices may be about to reverse upwards. It signals a buying opportunity. The following chart shows how this appears on a chart:

Hammer
number_1 Hammer candlestick pattern

Hanging Man candlestick

If this kind of candlestick appears when prices are rising, it is called a Hanging Man. It indicates that the uptrend may have reached its top limit and that prices may be about to reverse downwards. It signals a selling opportunity. The followin image shows how the Hanging Man candlestick appears on a chart:

Hanging man

Inverted Hammer and Shooting Star patterns

The Inverted Hammer and the Shooting Star candlesticks also look exactly the same as each other, but have very different meanings for traders.

Both appear as a candle with a small body at the bottom and a wick at the top that is two or three times longer than the body. There is no wick below the body. The colour of the body is not important.

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Inverted Hammer candlestick

If this kind of candlestick appears when prices are falling, it is called an Inverted Hammer. It indicates that the downtrend may have reached its bottom limit and that prices may be about to reverse upwards. It signals a buying opportunity. The following image shows how it appears on a chart:

Inverted hammer
number_1 Inverted Hammer candlestick pattern

Shooting Star candlestick

If this kind of candlestick appears when prices are rising, it is called a Shooting Star. It indicates that the uptrend may have reached its top limit and that prices may be about to reverse downwards. It signals a selling opportunity. The following image shows how the shooting star candlestick appears on a chart:

Shooting star
You can practice what you have learnt about single candlestick patterns
Exercise 1: Identify the Hammer Show exercise
Exercise 2: Identify the Shooting star Show exercise
Exercise 3: Identify the Yo Sen candlestick Show exercise
Exercise 4: Identify the Hanging Man Show exercise

Summary

So far you have learned that …

  • … single candlestick patterns are Japanese candlestick formations composed of just one candlestick.
  • … they can be traded independently and come in three main types, each of which has a bullish and a bearish version.
  • … they help you predict when prices may be about to reverse or continue.
  • … the bullish Yo Sen appears as a single upward candle with a full body and very short or non-existent wicks. It signals a buying opportunity.
  • … the bearish In Sen appears as a single downward candle with a full body and very short or non-existent wicks. It signals a selling opportunity.
  • … the Hammer and Hanging Man both appear as a candle with a small body at the top and a wick at the bottom that is two or three times longer than the body and there is no wick above the body – they indicate reversals. A Hammer is found when prices are falling and a Hanging Man is found when prices are rising.
  • … the Inverted Hammer and Shooting Star both appear as a candle with a small body at the bottom and a wick at the top that is two or three times longer than the body. There is no wick below the body. An Inverted Hammer is found when prices are falling and a Shooting Star is found when prices are rising.

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  • Hey,
    is there a way so say something about the quality of a certain pattern? I've seen hammers and so on without a change of the market direction. So I guess these aren't hard and fast rules. Is it possible to say something like "if you see this pattern the probability of the market changing directions is x%-y%"?
    I'm not referring to this lesson but to patterns in general.
    Cheers, Paul.
  • Are Hammer and Inverted Hammer basically the same? And same goes for Hanging Man and Shooting Star?...
  • I just wanted to point out some improvements that could be made to the quiz. I think that quizzes are good for checking whether you learned the subject, this quiz in particular checked whether I knew the names of indicators and not what they were used for.
  • Hi IhasLuck,

    Thanks for your feedback!

    Please keep in mind that this lesson was just about learning the different single candlesticks and how to identify them.
    If you passed the quiz then you knew their names, you could identify what they look like and know what they potentially mean for the trading market smile

    Once you get to Bronze status even more lessons on candlestick patterns will become available to you!

    Good luck!
  • Yes,but what I mean is if we only know indicators name, we don't know anything about it. We only how others call it but we don't know what it means and what we should do, which is more important smile
  • Hi hartsut,

    Thanks for the feedback.

    As a newcomer, why don't you introduce yourself to the community.
    Would be great to learn about you!

    Emma
  • ola como estan soy nueva en el foro pero tengo experiencia en el comercio si no se trata del patron en si pero si donde lo ase por ejemplo si tenenmos un historial de un soporte el precio sube y ase un patron de rechazo o que nos indica ya que el patron de velas no es mas que el comportamiento humano reflejado en el precio el hamer lo uso como patron de continuacion ,por que la señal tiene importancia en el lugar que hace por ejemplo un nivel fibonacci un soporte una resistencia amas alto el time frame mas sertera la señal osea el patron de velas
  • Hi mazinger1978,

    Can you please post in English so that everyone can understand, and help you if necessary smile

    However, we have a Spanish Group should you wish to discuss in Spanish.

    Emma
  • hello how are you I am new to the forum, but I have experience in business, if not It Is pattern itself, But where does that pattern that is more important, eg if tenenmos no history of support, if the Price Add y turns to the support and grab a rejection pattern in that area, which indicates and candles that pattern is More than Human behavior reflected in the price, I use the pattern hamer Here, Why it matters Signal What makes the place such as a Fibonacci, Support Resistance as a higher time frame is more accurate bone Signal the pattern of candles, I would like to help with graphics of so they can fully understand the concept, thank you very much to all


    tank emma
  • I had always wanted to learn candlesticks but wanted to first start with the basics. Now I am enjoying the lessons.
    Thanks to Tradimo
  • Glad you guys like it!smile
    If you have any feedback on the lessons or requests for more topics let me know smile

    Regards,
    Timothy
  • The last image don't have legend?
  • And also the img from Hanging Man candlestick don't have legend?
  • Hi Freelancer,
    thanks for spotting smile we will correct it asap.
    Regards.
    Peter

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