L-EarningCharts

Candlestick Charts for Absolute Beginners

7/6/2026

basics
candlesticks
guide

One candle = one period's battle: open, high, low, close. Green body = buyers won; red = sellers. Wicks = the fights that failed.

Level by level

Beginner

Start with five candles: doji (tie), hammer (buyers' comeback), shooting star (sellers' ambush), engulfing pairs (takeover), marubozu (domination).

Intermediate

Context is 80 percent of the meaning: the SAME hammer is bullish after a fall and meaningless mid-range. Prior trend first, candle second.

Advanced

Candles summarise order flow: long wicks = absorbed aggression at the extremes. Combine location (levels) + candle (trigger) + size (risk) — that trio IS price-action trading.

Common mistakes

  • Memorising 50 names before understanding one battle
  • Trading candles floating in the middle of nowhere

Practise & tools

_Educational content only — not financial advice. Historical behaviour never guarantees future results._