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Candlesticks
Candlesticks (Complete Beginner Guide)
Candlesticks are the “language” of price. They don’t predict the future, but they help you understand what happened inside a candle: who was in control (buyers or sellers), how strong the move was, and where price got rejected.
This hub covers candlestick basics first (anatomy and wicks), then moves to practical patterns and the mistakes beginners make when they try to trade patterns without context.
Forex candlesticks
Learn candlestick basics the right way: what bodies and wicks mean, how to read rejection and momentum,
and how to avoid pattern-hunting without support/resistance or structure.
- Anatomy: body & wicks
- Patterns (with context)
- Common beginner mistakes
Candlestick basics: what to look at first
- Body size: strength of the move (momentum).
- Wicks: rejection and failed attempts to push price higher/lower.
- Location: a candle matters most near key levels (support/resistance) or structure points.
- Follow-through: what happens on the next candle often matters more than the “pattern name”.
Read candles like evidence: strength + rejection + location.
A 60-second candle reading checklist (no pattern hunting)
- Mark the context first: draw the nearest key level(s) → Support & Resistance.
- Read the candle’s story: is it mainly momentum (big body) or rejection (long wick)? → Anatomy & Wicks.
- Check structure: did it confirm or break the current swing structure? → Market Structure.
- Define invalidation: where is the “this idea is wrong” point? → Stop loss.
- Size the risk: set position size based on that stop, not on hope → Position sizing.
Use candles as evidence at a level — not as a standalone signal.
Common mistake: trading patterns without context
- Pattern hunting: seeing dojis/pin bars everywhere without a level or trend context.
- Ignoring structure: candles work better when they confirm market structure (higher highs/lows or breaks).
- No risk plan: a “nice candle” is useless without a clear stop loss and position size.
Patterns are optional. Risk control is not.
Candlestick basics: where to start
Start here
Patterns & tools
Engulfing
Pin bar
Inside bar
Hammer vs Hanging Man
Morning Star vs Evening Star
Pattern cheat sheet
