Focus on learning and collecting, achieving insights without relying on indicators, purely observing candlestick language can also reveal the true direction of the market.
Here are the 5 major trading principles and practical points of naked candlestick experts 👇
1️⃣ What is a 'naked candlestick'?
🧩 Naked candlestick = removing all technical indicators, only observing price action
📉 Does not rely on MACD, moving averages, or Bollinger Bands
📊 Only observes the structure, shape, position, and rhythm of candlesticks
Core belief: 👉 All information is reflected in the price; candlesticks are the 'language' of the market
2️⃣ Why remove indicators?
✅ Technical indicators = lagging
✅ Indicators easily lead you to 'faith in formulas, ignoring market rhythm'
Advantages of naked candlesticks:
Directly observe the behavior of the main force
Reduce noise and focus on structure
Closer to the essence of the market
3️⃣ The most important observation points in naked candlesticks:
📌 The significance of a single candlestick is minimal; the key lies in 'combinations' and 'positions'
📌 Judging 'candlestick language' mainly focuses on 3 points:
1⃣ Candlestick structure (bullish/bearish, upper/lower shadows)
2⃣ Arrangement relationships (engulfing, pregnant line, reversal)
3⃣ Key positions (previous highs/lows, support/resistance, failed breakouts)
4️⃣ Five classic models of naked candlestick trading:
🧠 Naked candlestick experts often repeatedly use these structures:
✅ Pin Bar:
A strong signal, often used at reversal points
✅ Inside Bar:
Wait for a breakout, suitable for explosive movements after consolidation
✅ Engulfing:
A signal of trend reversal, stronger effect when combined with key levels
✅ Fake Break:
Common signals of wash trading that entice buying/selling, build positions in line with the trend
✅ Trend Bar:
A signal of 'inertia continuation' during a trend, suitable for adding positions in line with the trend
5️⃣ The underlying logic of naked candlestick trading:
📖 This is not 'pattern trading', but understanding the rhythm of bullish and bearish struggles:
🔍 Who is in control? Is the behavior of the main force exposed?
🎯 Is the transaction position key? Is it inducing behavior?
📉 Has the sentiment shifted? Are there signs of panic/greed in the trading volume?
✅ 3 training focuses for naked candlestick traders:
1️⃣ Chart reading training: Take screenshots and draw lines daily, describe market rhythm
2️⃣ Review model cases: Collect Pin bar and Fake break cases
3️⃣ Limit trading frequency: Only act when 'structure + position + signal' align
“Trading is not about prediction, but making decisions within high-probability structures.” It's not about being right every time, but only making trades in 'clearly structured' setups.
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