This lesson teaches you how to read a single candlestick correctly —
not as a pattern, but as a record of market behavior.
Lesson Objective
By the end of this lesson, you will be able to:
- Understand candlestick anatomy
- Identify buyer and seller control
- Recognize strong vs weak candles
- Prepare for market structure analysis
Candlestick Anatomy — The Only Parts That Matter
A candlestick represents one complete interaction between buyers and sellers during a specific period of time.
- Open
- High
- Low
- Close
Candles do not predict. They record who fought and who won.
Candle Body — Who Controlled the Session?
The candle body shows how much control one side had during the session.
Large Body
- Strong conviction
- Clear control
Small Body
- Indecision
- Balance between buyers and sellers
This image does not show a trading signal.
It only explains price rejection.
Wicks — Where Price Was Rejected
Wicks show where price attempted to move, but failed.
- Long upper wick → rejection from sellers
- Long lower wick → rejection from buyers
This image does not show a trading signal.
It only explains price rejection.
Why Candle Close Matters More Than Shape
The close shows who maintained control when the session ended.
Common Beginner Mistakes
- Memorizing candlestick patterns
- Treating candles as signals
- Ignoring context
- Predicting instead of observing
Knowing candlestick names does not mean you understand the market.
Candlesticks describe behavior, not predictions.
Mini Assignment
- Open TradingView
- Choose one market
- Observe the last closed candle
- Identify control, rejection, and close
Do not predict.
Do not trade.
Only observe.
In the next lesson, you will learn Market Structure —
how individual candles form trends and ranges.