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Candlesticks, Support/Resistance and Trend

Candles, levels and trend taught with arithmetic instead of folklore: what a candle records, the few shapes worth knowing and why they fail, how to draw levels you can defend, how to define a trend without arguing, and how to combine all three into setups with a stop, a target and honest R:R math.

Module 1: Candle anatomy in depth

Open, close, wick and range arithmetic; where the close sits; gaps; and why the same hour looks different on every timeframe.

  1. Open, close and the body8 min
  2. Wicks, range and where the close sits9 min
  3. Gaps and what they tell you8 min
  4. How timeframe changes a candle9 min

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Module 2: The handful of candles that matter

Engulfing, pin bars, inside and outside bars, doji types and marubozu, each explained by who got trapped, and an honest look at how often they fail.

  1. Engulfing candles and who got trapped9 min
  2. Pin bars, hammers and shooting stars9 min
  3. Inside bars, outside bars and the doji family9 min
  4. Marubozu, and how often candle signals fail10 min

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Module 3: Drawing support and resistance honestly

Swing points, zones instead of lines, prior day and week levels, round numbers, VWAP, how many touches make a level and when a level has decayed.

  1. Swing points, and zones instead of lines9 min
  2. Prior day and week levels, and round numbers8 min
  3. VWAP as a dynamic level8 min
  4. How many touches make a level, decay, and when to delete9 min

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Module 4: Trend definition and structure

Higher highs and higher lows, break of structure, change of character, range versus trend, ADX and moving-average slope as confirmation, and multi-timeframe alignment.

  1. The definition of a trend8 min
  2. Break of structure and change of character9 min
  3. Range versus trend8 min
  4. ADX, moving-average slope and multi-timeframe alignment10 min

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Module 5: Confluence and setups

Level plus candle plus trend, then three setups with entries, stops beyond structure, targets at the next level and the reward-to-risk math for each.

  1. Confluence: level, candle and trend8 min
  2. Setup 1: Breakout and retest9 min
  3. Setups 2 and 3: Failed breakout, and pullback to a level10 min
  4. Entries, stops, targets and the reward-to-risk math10 min

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Module 6: Practice and pitfalls

A 50-chart hand-backtesting exercise, the three errors that ruin chart reading, and a one-page checklist to use before every trade.

  1. Backtesting by hand: the 50-chart exercise10 min
  2. Hindsight bias, over-marking and ignoring context9 min
  3. The pre-trade checklist8 min

Take the module quiz

Educational content, not financial advice.