Module 3 · Understand Candlestick
Read Candles in Threes
Price action means reading buying and selling pressure straight from the candles, without leaning on indicators. It starts with telling a strong candle from a hesitant one.
Strong or hesitant
- Long body, short wicks = strength. That side is in control.
- Short body, long wicks = hesitation. Nobody has won yet.
Read them in sets of three
One candle only tells a short part of the story. Three in a row show whether price is continuing or turning. A 3 candle reversal predicts the next candle far better than a single candle does.
Three candles tell the whole story. One candle does not.
In the course this becomes numbering candles 1 to 4 to find swing points and entries, confirmed with CISD.