Each candle formation tells a different story, both by itself and by where it appears on the chart. On this post I'm going to focus on the single candle formations and what they usually mean.

I won't reinvent the wheel, though; it will be a quick overview using a nice flash that I found:
Different Candle Formations

 The most important candles are those that can signal a change in trading momentum:

• Hammer & Inverted Hammer: They represent a trading period that opened, took a directión but ended up coming back to where it opened and further, either to the upside or downside. This means that the market sentiment is changing and now sellers are taking control or the other way around. Very useful when trying to find bottoms or tops.

• Dojis: This formations indicate that the struggle between buyers & sellers has come to a stalemate, trading sideways without a prevailing direction. This kind of formation usually appears at the end of a trend, as people are shifting their opinion, and during consolidations, as there are people taking profits as well as buying for a possible second move; Is better to wait for some sort of confirmation than trying to buy or sell into a doji.

 As you can see, each candle represents some kind of price action and, depending on where it appears, it may signal the reversal of a trend, which is going to be the next chapter on my candlestick posts: Bullish Reversal Patterns.