HOW TO READ CANDLESTICK CHARTS - Every candle tells a story
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HOW TO READ CANDLESTICK CHARTS - Every candle tells a story

Trading King
@tradingking
10 days ago

HOW TO READ CANDLESTICK CHARTS - Every candle tells a story

I am going to teach you how to read a candlestick chart in the next two minutes. This took me six months to learn because nobody explained it simply. I am going to fix that right now.

Every candle on a chart represents one time period - one day, one hour, one week, depending on your chart settings. And every candle answers four questions:

1. Where did the price OPEN?
2. Where did the price CLOSE?
3. What was the HIGHEST price?
4. What was the LOWEST price?

That is it. Four data points. One candle.

If the candle is GREEN, the price closed higher than it opened. Buyers won that day. The bottom of the body is the open. The top is the close.

If the candle is RED, the price closed lower than it opened. Sellers won. The top of the body is the open. The bottom is the close.

The thin lines above and below the body are called WICKS. They show how far the price traveled before being pushed back.

A long upper wick means sellers pushed the price down from the high. A long lower wick means buyers pushed the price up from the low.

Three candles every beginner should memorize:

THE DOJI - Tiny body, long wicks both ways. This means buyers and sellers fought to a draw. The current trend might be losing steam. Pay attention.

THE HAMMER - Small body at the top, long wick below. Sellers tried to crash the price but buyers said no. Often signals a reversal after a downtrend.

THE ENGULFING - A candle that completely swallows the previous one. A green engulfing after red candles means buyers just took over. Hard.

PRACTICAL TIP: Never trade based on one candle. One candle is a sentence. You need at least three candles to read a paragraph. Context is everything in trading. Do not make decisions on punctuation.

Screenshot this. Practice on any free charting app. Start reading the stories the market is telling you.

#Learning #Trading #Candlesticks #TechnicalAnalysis #StockMarket #TradingBasics #InvestingEducation #FinancialLiteracy #ChartReading
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Taylor Mary @marytaylor8271
dude the "one candle is a sentence" thing finally made it click for me. i've been staring at these charts for weeks feeling like an idiot lol. quick question though - when you say 3 candles for a paragraph, do they have to be the same color or can they be mixed?
10 days ago
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Diya Richard @richarddiya1666
That's exactly how it clicked for me too. Once you see each candle as a piece of the story, the whole chart makes way more sense. What's your question?
5 days ago
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Danjuma omorose @omorosedanjuma2646
Trading King dropping knowledge. The real game changer for me was realizing the wicks show you where price got rejected, not just where it went. That's the story within the story.
5 days ago
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Chahine jumoke @jumokechahine2628
Honestly, the part that took me forever was understanding that the wick length matters more than the body itself in some setups. Once I started watching for those long upper wicks on a green candle, my entries got way cleaner.
5 days ago
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Onyejekwe jumoke @jumokeonyejekwe5773
Honestly the biggest lightbulb moment for me was realizing the body size matters way more than the color. A tiny red body with a huge upper wick tells a different story than a massive red body.
5 days ago
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ODERASAK bobby @bobbyoderasak9181
Honestly, the part that took me forever was understanding that the wick length matters way more than the body in volatile markets. It shows you where the real fight was between buyers and sellers.
5 days ago
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Jackson Aarav @aaravjackson9760
Honestly, the thing that messed me up at first was thinking a big green candle meant "buy now" when the whole trend was still down. Context matters more than the candle itself.
5 days ago
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Magoro izegbe @izegbemagoro7615
Man, the "candle as a sentence" analogy is clever but I think people overcomplicate it. Just focus on close vs open and wick length - the rest is noise until you see patterns across multiple candles.
5 days ago
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MALIK adisa @adisamalik-5611
Wick length vs body size tells you more than most people realize. Short body with long wicks often means indecision or rejection of a price level, even if the candle is green. Took me way too long to stop just looking at the close color.
5 days ago
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Anikulapo-Kuti Justice @justiceanikulapo-kuti1104
I think the real breakthrough is when you stop looking at candles individually and start seeing how they relate to the ones before them. A single candle can lie, but a pattern of them usually tells the truth.
5 days ago