Start with geometry, then examine context
A doji describes little net change between the open and close. A long total range can still contain substantial movement, so it is not necessarily a quiet session. Different recognition methods compare body size with tick size, recent bodies or total range. State the chosen convention rather than treating every tiny body as identical.
A hammer suggests that price recovered from lower levels during the period. The usual reversal interpretation requires a preceding decline, with a short or absent upper shadow. A similar shape after an advance has different context. Even a well-placed candle records only one period of activity and may be followed by renewed selling.
Measure the body and lower shadow
Assume a declining market produces open 50.00, high 50.60, low 47.00 and close 50.50 dollars. The body is 0.50, the lower shadow is 3.00 and the upper shadow is 0.10. The lower shadow is six times the body, making the shape compatible with a hammer. A later completed close at 51.00 is above its 50.60 high and adds recovery evidence. A close at 46.80 instead breaks its low. For comparison, open 50.00 and close 50.02 create a near-doji body of 0.02 under a suitable tolerance, irrespective of candle color.
A recognizable candle does not identify the participants
The shape cannot prove institutional buying, deliberate stop hunting or a precise order sequence. Low activity and wide spreads can also generate unusual shadows. Repeated small bodies inside a range may show ordinary congestion rather than a major turning point. Historical pattern counts depend on definitions and cannot be treated as universal success probabilities.
Record the preceding move and the next close
Inspect available completed daily, weekly or monthly candles. Record the prior trend, nearby zone, four candle prices and your confirmation condition before reviewing what follows. Keep unconfirmed shapes labeled as candidates. The purpose is a repeatable chart description, not an automatic trading instruction based on a candle name.
Primary sources
Sources explain the mechanics and limitations; the editorial examples use invented numbers rather than market quotations.
Your next practical step
Compare candle geometry with its preceding trend and the next completed reaction.
Open the first-chart instructions ↗