Single-Candle Reversal Patterns
TL;DR. Single-candle patterns are the most basic reversal signals in technical analysis. The key ones — Hammer, Hanging Man, Shooting Star, Inverted Hammer, and Doji — are all built on the same principle: the wick shows that price was rejected at an extreme, suggesting the prevailing move may be exhausted. None of them are signals alone. They are evidence that needs confirmation.
The underlying logic
Every single-candle reversal pattern tells the same story: price attempted to move in one direction but was pushed back. The longer the wick relative to the body, the more decisive the rejection.
At the end of a downtrend, a candle with a long lower wick means sellers pushed price down sharply during the period — but buyers stepped in and drove it back up before the close. This is the fingerprint of demand appearing at that level.
At the end of an uptrend, the mirror image: a long upper wick at a high means buyers pushed price up but sellers pushed it back down. Supply appeared.
The three critical questions for any single-candle pattern:
- Where is it? — at a known support/resistance level? After a sustained move?
- What is the wick length? — at least 2× the body for meaningful rejection.
- What does the next candle confirm? — a reversal candle without confirmation is just information, not a trade.
Hammer
Appears: at the end of a downtrend
Signal: bullish reversal
Shape: small body at the top, long lower wick (at least 2× body), little or no upper wick
The Hammer is one of the most recognised single-candle reversal signals. It forms at the bottom of a down move: price falls sharply during the period, but buyers push it back up and close near the open. The long lower wick is the visual record of the failed seller attempt.
What it means: at this price level, there is meaningful buying interest. The sellers who drove price down during the period were overcome. The level may be significant support.
Colour matters but not critically. A green Hammer (close above open) is slightly more bullish than a red Hammer (close below open), but both are valid. The long lower wick is the signal, not the body colour.
How to use in scalping:
- Look for Hammer at a known support level or after a sustained downward move.
- Confirm with the next candle: it should close higher, ideally above the Hammer's body.
- Entry: above the high of the Hammer, stop below the low.
Minimum wick ratio: lower wick should be at least 2× the body length. A wick that is barely longer than the body is not a Hammer.
Hanging Man
Appears: at the end of an uptrend
Signal: bearish reversal warning
Shape: identical to the Hammer — small body at top, long lower wick
The Hanging Man looks exactly like the Hammer. The name and meaning change based on where it appears. After a downtrend: Hammer (bullish). After an uptrend: Hanging Man (bearish warning).
The logic: during the period, sellers managed to push price far below the open — a bearish development. Even though buyers recovered, the fact that sellers had such control during the period is concerning when the market has already been trending up.
Important distinction: the Hanging Man is a warning, not a confirmed sell signal. It needs bearish confirmation on the next candle (a close below the Hanging Man's low or body).
Shooting Star
Appears: at the end of an uptrend
Signal: bearish reversal
Shape: small body at the bottom, long upper wick (at least 2× body), little or no lower wick
The Shooting Star is the bearish mirror of the Hammer. It forms at the top of an up move: buyers pushed price sharply higher during the period, but sellers overwhelmed them and drove price back down to close near the open. The long upper wick is the record of failed buyer momentum.
What it means: this level attracted significant selling. The buyers who created the upper wick could not sustain their gains. The level may be meaningful resistance.
How to use in scalping:
- Most effective at known resistance, previous highs, or round numbers.
- Confirm: next candle closes below the Shooting Star's body.
- Entry short: below the Shooting Star's low. Stop above the high.
Inverted Hammer
Appears: at the end of a downtrend
Signal: potential bullish reversal
Shape: identical to Shooting Star — small body at bottom, long upper wick
Like Hammer vs Hanging Man, the Inverted Hammer is the context-dependent partner of the Shooting Star. After a downtrend, the long upper wick shows buyers attempted to push higher — even if they could not sustain it. This signals that demand is beginning to show up at lower prices.
Weaker than the Hammer — requires stronger confirmation from the next candle, since buyers did not actually win the period. Look for a bullish candle closing above the Inverted Hammer's high before acting.
Doji
The Doji is the most nuanced single-candle pattern. It forms when the open and close are at nearly the same price — the body is a line or very thin rectangle. The wicks can extend in both directions.
Standard Doji
Equal wicks both sides
Long-legged Doji
Very long wicks both sides
Gravestone Doji
Long upper wick only
Dragonfly Doji
Long lower wick only
Standard Doji — open equals close. Neither buyers nor sellers won. Perfect indecision. At a key level after a trend, this can signal exhaustion and potential reversal. In the middle of a range, it means nothing.
Long-legged Doji — price ranged widely but closed exactly where it opened. Extreme indecision and volatility. Often appears at key turning points or before a large directional move.
Gravestone Doji — price opened, buyers pushed it sharply higher, but sellers drove it all the way back down to close at (or near) the open. The result looks like a gravestone — hence the name. Strongly bearish when it appears after an uptrend at resistance. The buyers' entire effort was wiped out.
Dragonfly Doji — price opened, sellers drove it sharply lower, but buyers recovered everything to close at the open. The mirror of the Gravestone. Strongly bullish after a downtrend at support. Shares characteristics with the Hammer.
Spinning Top
Signal: indecision
Shape: small body (any colour), with meaningful wicks on both sides
The Spinning Top is not strictly a reversal pattern — it signals indecision. Small body, wicks in both directions. Neither side convincingly won. In context, it can signal potential trend exhaustion, but it needs surrounding price action to be meaningful.
The confirmation rule
Every single-candle pattern needs confirmation from the next candle. This is not optional.
A Hammer with a red candle immediately following it is not a reversal — the pattern has failed. A Shooting Star followed by a strong green candle is not a short signal — price rejected the rejection.
The minimum confirmation:
- For bullish patterns: the next candle closes above the top of the pattern's body.
- For bearish patterns: the next candle closes below the bottom of the pattern's body.
In scalping, this confirmation candle is also your entry trigger — you wait for it to close and enter on the open of the following candle (or with a limit order just above/below the confirmation level).
Common mistakes
Taking signals at the wrong location. A Hammer in the middle of a range does not matter. It only matters at meaningful support — a previous low, a round number, a VWAP level.
Ignoring wick ratios. A barely-noticeable wick is not a Hammer. The lower wick must be meaningfully longer than the body — at least 2× is the classical standard.
Entering without confirmation. The most common error: the Hammer appears, the trader enters immediately, and then the next candle continues down.
Over-identifying Doji. Not every candle with a thin body is a significant Doji. The body should be genuinely negligible relative to the wick range.
Further reading
- Two-candle patterns — Engulfing, Dark Cloud Cover, Piercing Line, Harami.
- Candlestick basics — the anatomy and context foundation.
- Support and resistance — where to look for candlestick signals.
This article is educational content, not investment advice. Trading derivatives carries substantial risk, including total loss of capital. See disclaimer.