Price action reference · OHLC candles
26 candle patterns, what each one looks like, and what it tells you about buyers and sellers. Faded candles show the trend that should come before the pattern.
One session tells the story. The shape of body and wicks shows who won the fight.
The second candle answers the first. Look at how much of the prior body it takes back.
Slower to form and usually more reliable, because the turn is confirmed inside the pattern.
A hammer means little in the middle of a range. Reversal patterns count at the end of a clear trend, and more so at support, resistance or a moving average.
Wait for the next candle to close in the signalled direction. A hammer followed by a lower close has failed.
Higher volume on the signal candle shows real participation. A pattern on thin volume is easy to reverse.
Daily and weekly patterns carry more weight than 1-minute or 5-minute ones, where noise produces the same shapes constantly.
Partner broker · Free demo account
Reading patterns gets easier with practice. Open a free demo account with {b} and test every signal with virtual money before you risk your own.
Trading carries a high risk of losing money. Only trade with money you can afford to lose. Affiliate link: we may earn a commission if you open an account, at no extra cost to you.
Chart reading reference · Levels, trend, momentum
14 tools that read many candles at once: lines you draw on the chart, indicators calculated from price, and how to combine timeframes. Settings shown are the common defaults.
Drawn by hand on the chart. They mark where buyers or sellers have reacted before.
Calculated from price and plotted over the candles.
Plotted in a separate panel under the chart. They measure the strength behind a move.
Start on the higher timeframe and work down. A level or trend from a higher timeframe outranks a signal from a lower one.
| Timeframe | Use it for | Typical style |
|---|---|---|
| Weekly · Daily | Main trend, major support and resistance, MA 50 and MA 200 | Position, swing |
| 4H · 1H | The setup: pullback to a level, candle pattern, RSI or MACD turn | Swing, intraday |
| 15m · 5m | Entry timing and stop placement | Day trading, scalping |
Use MA or trend lines on the daily chart to decide the direction you will trade.
Wait for price to reach support, resistance, a Fibonacci level or the MA.
Look for a candle pattern at that level, backed by RSI, MACD or volume.
Levels are areas. Price often overshoots a line by a little before turning.
Partner broker · Free demo account
Reading patterns gets easier with practice. Open a free demo account with {b} and test every signal with virtual money before you risk your own.
Trading carries a high risk of losing money. Only trade with money you can afford to lose. Affiliate link: we may earn a commission if you open an account, at no extra cost to you.