Every candle tells a story of the battle between buyers and sellers. Learn to read them and a chart stops looking random.
Anatomy of a candle
The body shows the open-to-close range; the wicks show the highs and lows that were rejected. A long wick means price tried to go somewhere and got pushed back — that rejection is information.
Key reversal patterns
- Pin bar: a small body with a long wick — a strong rejection of a level.
- Engulfing: a candle that fully covers the previous one — a shift in momentum.
- Doji: open and close nearly equal — indecision, often near turning points.
Continuation patterns
Not every pattern signals a reversal. Tight consolidations and flags often mean the trend is pausing before continuing.
A pattern at a key level (support, resistance, or an order block) is far more meaningful than the same pattern in the middle of nowhere. Context is everything.
Context beats the pattern
A pin bar at major resistance after a strong run is powerful. The same pin bar mid-range is noise. Always read patterns alongside structure and trend.
The bottom line
Master a handful of reliable patterns, always check the context, and you'll read price action with far more confidence.
Disclaimer: Trading involves risk, and past results do not guarantee future results. This content is educational and is not investment advice.
