The shape of each candle
Binance uses standard Japanese candlestick charts. Since you want to know about "all" the important types you'll encounter, I'll break them down into groups based on **their effect on price**, with a precise description of their shape so you can spot them at a glance on your screen.
### First: Reversal Candlesticks (Price Direction Change)
These candles are the "warning signal" that tell you the price will reverse direction.
#### 1. Candles Indicating Upcoming Uptrend (Bullish):
* **Hammer:** * **Shape:** A small body on top (green or red) with a very long lower wick (at least twice the size of the body).
* **Meaning:** Sellers took control, but buyers pushed them out at the last moment.
* **Inverted Hammer:** * **Shape:** A small body at the bottom with a long upper wick. Appears at the bottom.
* **Meaning:** The beginning of strong buying liquidity.
* **Piercing Line:** * **Shape:** A red candle followed by a green candle that opens below it but closes **above the midpoint** of the red candle.
* **Meaning:** Buyers have started to regain control strongly.
#### 2. Candles Indicating Upcoming Downtrend (Bearish):
* **Hanging Man:** * **Shape:** Looks exactly like a hammer (body above and wick below) but appears at the **top** of an uptrend.
* **Meaning:** Buyers have lost their strength, and the price is on the verge of collapsing.
* **Shooting Star:** * **Shape:** A small body at the bottom with a very long upper wick. Appears at the top.
* **Meaning:** The price tried to rise but was "hit" by the sellers.
* **Dark Cloud Cover:** * **Shape:** A green candle followed by a red one that opens above it and closes **below the midpoint** of the green candle.
* **Meaning:** Seller dominance has officially started.
### Secondly: Continuation Candles (Price will continue its path)
* **Marubozu:** * **Shape:** A candle that is a "block" of color (completely green or red) **without any wicks** at all.
* **Meaning:** The dominant party is very confident, and the price will continue strongly in the same direction.
* **Spinning Top:** * **Shape:** A very small body in the middle with equal upper and lower wicks.
* **Meaning:** A short pause for the bulls, and the price often continues its trend afterward.
### Third: Indecision and Doji Candles
* **Doji:** * **Shape:** A straight line (+), the price opened and closed at the same point.
* **Meaning:** No one knows where the price will go. If it appears after a crazy rise, it's a warning sign.
* **Dragonfly Doji:** * **Shape:** The letter (T) in English.
* **Meaning:** A signal of massive buying strength at the bottoms.
* **Gravestone Doji:** * **Shape:** An inverted (T).
* **Meaning:** A very strong bearish signal at the peaks.
### Fourth: Composite Patterns (Group of Candles)
This is the strongest on Binance and is often used by professionals:
1. **Morning Star:** (Large red ← Doji or small candle ← Large green). **= Strong buy.**
2. **Evening Star:** (Large green ← Doji or small candle ← Large red). **= Immediate sell.**
3. **Engulfing:** A candle that comes and fully "eats" (covers) the previous one. (If the green eats the red = upward, and if the red eats the green = downward).
### How to memorize them quickly?
Imagine the candle as a **"battle":**
1. **The body** is the ground occupied by the victor.
2. **The wick** is the ground that the defeated entered and was expelled from.
3. **The green color** means buyers won this round, **and red** means sellers won.
**Technical Tip:**
On Binance, you can activate an indicator called **"Candlestick Patterns"** from the settings, and the system will automatically write the name of the candle above it (like Hammer or Doji) to help you at the start!
