Candles are not just colors… they are emotions of our body!
Green = Let’s go moon baby!
Red = Oops! sell panic mode ON!🚨
First let's go back to Day 2
In Day 2, we learned about Candlestick Patterns like:
Hammer
Doji
Bullish Engulfing
Bearish Engulfing etc.
But now we will go deeper —
Why those candles form?
What they say about buyers and sellers?
How to read their emotions before they attack your capital?
What is Candlestick Psychology?
Understanding what traders were doing and thinking when that candle was start.
Each candle equal a battle.
Bulls and bears fight, but who will win If Bull Green or Bear might Red. So simple.
The candle shows who won, how hard the fight was,
and if anyone cheated (fakeout).
Here is some Candle Emotions
1. Hammer – Bull’s Comeback Story
Price went down. Then buyers punched back up.
Emotion: You thought I was finished? Ha!
Example: Like getting rejected and still showing up to the party looking fresh.
2. Shooting Star – Bull’s Embarrassing Fall
Price went high, then dropped fast.
Emotion: I tried to fly… and faceplanted.
Example: Like jumping to dunk and missing the rim.
3. Doji – Market’s Confused Face
Price went up and down. Closed almost the same.
Emotion: I don’t know… You need to decide.
Example: Like standing in a shop for 2 hours and buying nothing.
4. Bullish Engulfing – Buyer Power Move
A small red candle is eaten by a big green one.
Emotion: Get outta the way!
Example: Like someone pushing through a crowd and shouting, I got this!
5. Bearish Engulfing – Seller Flex
Same as above, but red wins.
Emotion: Nice try, bulls go back to your home.
Example: Like a kid winning against a bodybuilder in arm wrestling. Oops!
So… How Does This Help Me Trade?
If you feel what the candle feels, you stop chasing random signals.
You get clarity.
You take stronger trades with less regret.
Some Questions
Q: Can 1 candle decide my trade?
A: No, It’s like judging a movie by 1 scene. Wait for confirmation.
Q: What if it’s a fakeout?
A: Use Volume + Candle + Area Support/Resistance.
Don't trust a candle standing alone in the wild.
Q: What’s the secret sauce?
A: Understand why the candle formed — not just what it looks like.
Actually what we do
Candle shows big green wick
You enter long like a hero
Market drops like a rock
You stare at screen: But… but the candle was green?
Moral of the story, Candle looked strong. But inside, it was weak. Don’t get catfished by fake candles!
My personal opinion
Candlestick psychology is the hidden language of the market.
Learn it, and candles will talk to you like old friends.
Ignore it, and they’ll slap your stop loss every time.
Next: Day 6 – Reversals Zone
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