Most beginners only see a “green or red stick.”
Advanced traders see market psychology, liquidity, and trapped traders inside every candle.
Here’s how to read it like a pro 👇
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🧠 1️⃣ Wick Psychology: Who’s Losing the Battle?
Wicks show rejection — but which side is trapped?
✔ Long Upper Wick
→ Buyers pushed price up, sellers crushed them.
Meaning: Weakness, liquidity grab, possible reversal.
✔ Long Lower Wick
→ Sellers dumped, buyers absorbed everything.
Meaning: Strong demand, possible bounce.
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📉 2️⃣ Body Size = Strength of Momentum
✔ Big Body Candle
→ Aggressive traders in control.
Trend continuation likely.
✔ Small Body (Doji)
→ Market indecision, liquidity building.
Often seen before big moves.
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🔍 3️⃣ Open vs Close = Market Intent
The relationship between open and close reveals who dominated that candle.
• Close near high → buyers strong
• Close near low → sellers strong
• Close near middle → battle unresolved
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🎯 4️⃣ Candles Don’t Predict — They Reveal Context
A single candle means nothing.
A candle inside a trend, zone, or breakout means everything.
Examples:
• A strong bullish candle at resistance = liquidity trap
• A rejection wick at support = smart money absorption
• A doji during consolidation = accumulation phase
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⚔️ 5️⃣ Candle Traps (Advanced Tip)
Market makers often use candles to trap emotional traders:
• Fake Breakout Candle → long wick above resistance
• Stop-Hunt Candle → long wick below support
• Inducement Candle → candle that invites retail in before reversal
If you learn to recognize these, your losses drop FAST.
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💬 Quick Interactive Question:
Which candle type confuses you the MOST —
Doji, hammer, engulfing, or fakeouts?
Drop it below and I’ll explain it in simple language 👇