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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.

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