Lesson 8 — Candlestick Patterns
Study candlesticks as market behavior: rejection, momentum, exhaustion, indecision, and confirmation.
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Login to Track ProgressCandlestick patterns show what happened inside a time period. They can reveal momentum, rejection, uncertainty, continuation, or exhaustion. But a candle pattern has limited value without context. A pin bar at a major level is different from a pin bar in the middle of noisy price action.
This lesson teaches students to read candles as behavior instead of memorizing pattern names. Long wicks may suggest rejection. Large bodies may suggest momentum. Small candles after expansion may suggest pause or indecision. Clusters of candles can show compression before expansion.
Students learn that candlestick analysis should support a larger framework. Candles should be combined with support/resistance, trend, supply/demand, liquidity, and risk planning. A candle is evidence, not a guarantee.
1. Find five rejection candles at meaningful levels.
2. Compare one successful candle signal with one failed signal.
3. Write the context around each candle, not only the candle name.
- 1. Why is candle location important?
- 2. What can a long wick suggest?
- 3. What can a large candle body suggest?
- 4. Why should candlesticks not be used alone?
- 5. What is better: memorizing names or reading behavior?