Candlestick Patterns — How to Read Japanese Candles | Student Wyckoff
📌 STUDENT WYCKOFF • Price Action

Candlestick Patterns: How to Read Japanese Candles (Properly)

Candlestick patterns work best when treated as reactions at key levels, not as “magic shapes”. Use a consistent process: structure → pattern → confirmation → risk rule. Below is a practical guide and a TradingView checklist.

🧭 Focus: context • confirmation • risk

How to think about candlestick patterns ✅

  • A candle is a battle between buyers and sellers in one period.
  • The most important question: where does the pattern appear (support/resistance, range edge)?
  • Patterns without context are noise. Patterns at levels + confirmation become actionable.
  • Always define invalidation (where you are wrong).
💡 The best pattern is the one at structure with follow‑through. Patterns in the middle of nowhere lie often.

Core patterns (minimal set) 🎯

  • Engulfing: bullish/bearish control shift.
  • Pin Bar: long wick + rejection at a level.
  • Doji: indecision; meaning depends on next candle and location.
  • Hammer / Hanging Man: long lower wick; quality depends on confirmation.
  • Shooting Star: long upper wick near resistance.
  • Inside/Outside Bar: compression/expansion; useful for breakout/false-break scenarios.

Confirmation rules 🧭

  • Location: at support/resistance or range edge.
  • Next candle: follow‑through in the expected direction.
  • Retest: often the best entry is after confirmation and a retest.
  • Volume context: if volume is available, check effort vs result consistency.

Common mistakes 🚫

  • Trading patterns without levels and without risk plan.
  • Anticipating patterns on an unclosed bar.
  • Using 20 patterns and getting confused (keep a small set).
  • Ignoring higher timeframe context.
Can I trade only candlestick patterns?

Risky. Candles are triggers; structure and confirmation matter most.

Best patterns for beginners?

Engulfing and pin bars at key levels with confirmation.

Why the same pattern works sometimes and fails other times?

Context. Location, higher‑TF background, and confirmation decide quality.

⚠️ Educational content only. Not financial advice. Candlestick patterns are context, not guarantees.

TradingView checklist ✍️

1) Draw structure first Support/resistance and range boundaries (your map).
2) Pick 3–5 patterns Engulfing, pin bar, doji, hammer/star, inside/outside is enough.
3) Require location Only trade patterns at levels or range edges.
4) Require confirmation Follow‑through candle or retest after confirmation.
5) Risk rule Stop beyond structure/wick; position size from stop distance.
6) Journal Screenshot: level → pattern → confirmation → outcome. Review weekly.
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Best use: levels + pattern + confirmation + strict risk management.