The candlestick trading bible

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THE CANDLESTICK TRADING BIBLE 
bearish candle which indicates that buyers are coming to reverse the 
market direction.
If this price action happens near a support level, it indicates that a 
bearish reversal is likely to happen. 
The chart above shows us a tweezers bottom that occurs in a 
downtrend, the bears pushed the market downward on the first 
session; however, the second session opened where prices closed on 
the first session and went straight up indicating a reversal buy signal 
that you can trade if you have other elements that confirm your buying 
decision. 
Don’t focus on the name of a candlestick, try to understand the 
psychology behind its formation, this is the most important.

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THE CANDLESTICK TRADING BIBLE 
Because if you can understand why it was formed, you will understand 
what happened in the market, and you can easily predict the future 
movement of price. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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THE CANDLESTICK TRADING BIBLE 
Candlestick patterns exercise 
Now i think that you get some information about Japanese 
candlesticks, you know the anatomy of each candlestick and the 
psychology behind its formation, let’ take this exercise to test your 
knowledge and see if you still remember all of the candlesticks we 
talked about. 
Look at the chart below and try to find the name of each candlestick 
number, and the psychology behind its formation. 
If you can easily identify these candlestick patterns, and you 
understand why they are formed. You are on the right path.
But if you still struggle to identify these patterns, you will have to start 
learning about them again till you feel like you master them. 

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