PART 04
Before you begin
Every candle on every chart is four numbers, and an argument about who gave up first.
The questions it answers
- Why the same candle has two names, depending on the week before it
- What a trader means by “the sellers lost control”
- Which shapes carry a real rule, and which are stories people tell
- Why a pattern from a textbook vanishes on a moving chart
- What a candle cannot tell you, which is most of what is claimed for it
Every chart you will ever open is built from these. Once you know the rule behind each name, a chart stops being decoration.
How this book is different
- You do not read about a pattern, you build it. Move one price and the name changes the moment the shape crosses its rule.
- Every name has a measurement behind it, never an adjective — so you can tell a hammer from something that merely looks like one.
- You practise on charts where nothing is labelled, the way it will look on the day it matters.
Chapter 04.02
Candle Categories by Meaning
6 of 6 written
- 01Momentum / conviction candles→
- 02Rejection candles→
- 03Indecision candles→
- 04Absorption candles (high volume, small range)→
- 05Exhaustion candles→
- 06Belt hold, marubozu variants, and the four-price doji→
2 / 7
Chapter 04.03
Reversal Patterns
12 of 12 written
- 01Doji family: standard, long-legged, dragonfly, gravestone→
- 02Hammer and hanging man→
- 03Inverted hammer and shooting star→
- 04Bullish and bearish engulfing→
- 05Harami and harami cross→
- 06Piercing line and dark cloud cover→
- 07Morning star and evening star→
- 08Tweezer tops and bottoms→
- 09Doji stars and the abandoned baby→
- 10Three inside up and three inside down→
- 11Three outside up and three outside down→
- 12Tristar, two crows, and the upside-gap variant→
3 / 7
Chapter 04.04
Continuation and Multi-Candle Formations
8 of 8 written
- 01Three white soldiers, three black crows→
- 02Rising and falling three methods→
- 03Inside bars and outside bars→
- 04Marubozu and trend acceleration→
- 05Mat hold→
- 06Tasuki gap and separating lines→
- 07Three-line strike→
- 08Hikkake and modified Hikkake→
4 / 7
Chapter 04.05
The Rule That Makes Candles Work
5 of 5 written
- 01A pattern without location is noise→
- 02The four-filter test: trend + level + volume + context→
- 03Same pattern, opposite meaning: worked examples→
- 04Base rates: what candlestick statistics actually show→
- 05Why candles are a trigger, never a thesis→
5 / 7
Chapter 04.06
The Psychology Encoded in a Candle
3 of 3 written
- 01Who was trapped, and where→
- 02Stop-loss clusters and liquidity hunts→
- 03Why patterns persist despite being widely known→
6 / 7
Chapter 04.07
The Rest of the Catalogue, and Why It Is a Reference
6 of 6 written
- 01Why a detection library is not a syllabus→
- 02The neck-line group: on-neck, in-neck, thrusting→
- 03Advance block, stalled pattern, identical three crows→
- 04Kicking, counterattack, and breakaway→
- 05The rare tail: homing pigeon, matching low, stick sandwich, ladder bottom, unique three river, three stars in the south→
- 06Side-by-side white lines and the gap three methods→
7 / 7
More chapters are being written.