How to Use Candlesticks in a High-Probability Way | Tutorial #1

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In this tutorial, we break down candlestick analysis in a clear, structured, and practical way—focused on probability, context, and confirmation, not guessing.

You’ll learn what candlesticks really represent, how to read market intent behind them, and how to use them correctly within a high-probability trading framework.

🔍 What are candlesticks?

Candlesticks visually represent price behavior, showing the battle between buyers and sellers within a specific time period. Each candle tells a story—but only when read in context.

📘 Candlestick Types Covered in This Tutorial

📌 1) Shrinking Candlesticks
➡️ What is a shrinking candle?
Shows loss of momentum and potential market pause or reversal.

📌 2) Inside Bar Candlestick
➡️ What is an inside bar candle?
Indicates consolidation and compression before expansion.

📌 3) Takuri Line Candlestick
➡️ What is a Takuri Line candle?
A strong bullish rejection candle with a long lower wick.

📌 4) Hanging Man Candle
➡️ What is a hanging man candle?
Warns of potential bearish reversal after an uptrend.

📌 5) Inverted Hammer
➡️ What is an inverted hammer candle?
Shows buyer reaction after downside pressure.

📌 6) Shooting Star
➡️ What is a shooting star candle?
Signals seller dominance near highs.

📌 7) Spinning Top Candle
➡️ What is a spinning top candle?
Represents indecision between buyers and sellers.

📌 8) Spinning Bottom Candle
➡️ What is a spinning bottom candle?
Indicates uncertainty after downside movement.

📌 9) Doji Candle
➡️ What is a doji candle?
Shows balance—often a warning sign before a shift.

📌 10) Engulfing Candle
➡️ What is an engulfing candle?
Strong momentum candle that fully absorbs the previous one.

📌 11) Momentum Candlestick
➡️ What is a momentum candle?
Large-bodied candle showing aggressive participation.

📌 12) Change Color Candle
➡️ What is a change color candle?
Occurs after minimum 5 candles of one color, followed by a candle of the opposite color—often signaling momentum shift.

🧠 Best Practice

Candlesticks work best when multiple candles stack together, forming a story—not when traded individually.
This tutorial shows real chart examples of candle clustering and how to interpret them properly.

⚠️ Important Note

Candlesticks alone are NOT enough.
They should be combined with:

--> Support & Resistance

--> Areas of Confluence

--> Chart Patterns

--> Trendlines

--> Indicators

--> Other high quality traits

This is how high-probability setups are built.

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⚠️ DISCLAIMER

This content is for educational purposes only and does not constitute financial advice.
Trading involves risk—always conduct your own analysis.
I am not responsible for any decisions or losses based on this material.

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