Learn core candle patterns and what they do not tell you.
Definition
Market intelligence means making decisions with data, context, and risk rules. Not with hype or fear.
What a candle shows
Each candlestick shows open, high, low, and close for a time window. It does not explain why price moved. It only summarizes what happened.
Three patterns that beginners overrate
- Doji.
- Engulfing candles.
- Long wicks.
These can matter, but only in context. Trend, support zones, and volume often matter more.
Tip
One candle is rarely a signal. A zone and a plan is a signal.
A calm way to read a chart
- Mark obvious support and resistance zones.
- Identify trend on a higher timeframe.
- Look for confirmation near zones.
- Define invalidation with a stop.
Quick quiz
- What does a candle represent.
- Why is context important.
- What comes before entry.