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Single Candle Patterns

There are some types of single candle patterns in candlesticks' theory. They are the following:

• Dragonfly Doji
• Gravestone Doji
• Hammers/ Hanging Man
• Hollow Red Candles
• Filled Black Candles

Doji's

Doji's are reversal candlesticks. They and are formed when the security opens and closes at the same level, implying indecision in the stock price. Depending on the length of the shadows and location, doji's can be devided into the such formations as: doji, long legged-doji, butterfly doji, gravestone doji, 4 price doji, etc. Doji's become more significant when seen after an extended rally of long bodied candles (bullish or bearish) and are confirmed with an engulfing.

Long-legged Doji

A long legged-doji is the candlestick formation when the close and the open prices are the same. Long legged-doji's become more powerful when preceded by small candles, as a sudden burst of volatility in a relative unvolatile stock, can imply a trend change is coming.

Dragonfly Doji

Dragonfly Doji's are doji's that opened at the high of a session, had a considerable interperiod decline, then find support to rally back to close at the same level as the open. Dragonfly Doji's are often seen after a moderate decline, and are bottom reversal indicators when confirmed with a bullish engulfing./p>

The Dragonfly Doji has a higher reliability associated with it than a Hammer.

- The long lower shadow is about two to three times of the real body.

- Little or no upper shadow.

- The real body is at the upper end of the trading range.

- The color of the real body is not important.

Note: Bearish trend and Moderate reliability

Gravestone Doji

Gravestone Doji's are the opposite of the Dragonfly Doji and are top reversal indicators when confirmed with bearish engulfings. As the name implies, gravestone doji's look like a gravestone, and could signal impending doom for a stock. 4 price doji's occur when the stock opens, Forex market trades and closes at virtually the same level for the period. These are very rare, except with thinly Forex market traded securities.

- Small real body at the upper end of the trading range.

- Upper shadow usually at least three times as long as the real body

- No (or almost no) lower shadow

Note: Bullish trend and Moderate reliability

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