What Do Spinning Tops, Marubozus, and Dojis Have in Common?
They’re all foundational Japanese candlestick patterns that offer insights into market behavior.
Let’s break down each type and understand what they reveal about price action.
Spinning Tops
A spinning top features a small real body with long upper and lower shadows. The body’s color (bullish or bearish) is less important than its shape.
This pattern indicates indecision between buyers and sellers. Although price moved significantly during the session, it ended up closing near its opening level—signaling a tug-of-war without a clear winner.
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In an uptrend, a spinning top may signal that buying momentum is weakening.
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In a downtrend, it could suggest that selling pressure is fading.
Marubozu
The word marubozu means “bald” or “shaved” in Japanese—fitting for candlesticks with no wicks or shadows.
These candles represent decisive movement:
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A White Marubozu opens at the low and closes at the high, showing strong bullish control throughout the session.
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Appearing in an uptrend = potential continuation.
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Appearing in a downtrend = potential reversal.
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A Black Marubozu opens at the high and closes at the low, showing firm bearish control.
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In a downtrend = likely continuation.
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In an uptrend = potential reversal.
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These candles are often part of continuation or reversal setups, depending on their position in a trend.
Doji
A Doji forms when a candle’s open and close are nearly identical, resulting in a very small or non-existent real body.
Doji patterns reflect market indecision. During the session, price fluctuated, but ultimately closed near where it opened.
There are four main types of Doji, which may resemble crosses or plus signs depending on shadow length.
When a Doji appears, context is key:
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After a series of bullish candles, a Doji could indicate that buyers are losing steam, setting the stage for a potential reversal.
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After a series of bearish candles, a Doji may signal seller exhaustion, possibly paving the way for a rebound.
To confirm a reversal, look for follow-up price action—such as a bullish candle closing above a previous bearish candle’s open.
Wrapping Up
These three candlestick types—Spinning Tops, Marubozus, and Dojis—offer valuable insights into market sentiment, momentum, and potential turning points.
In the next lessons, we’ll explore specific candlestick patterns built from these foundational candles and learn how to apply them to real-world trading decisions.