How to Use Candlesticks in a High-Probability Way | Tutorial #3

📊 Market Context: Ranging Market

This tutorial completes the trilogy of market conditions:
Trending (Uptrend & Downtrend) → Ranging Market.

From the next tutorials, we move into advanced concepts, where candlesticks are placed into proper context and combined with the most important element in trading — Support & Resistance.

🕯 Candlestick Types Covered in This Tutorial (Ranging Market)

• Shrinking Candlesticks
  ➡️ Loss of momentum and reduced participation — balance, not an automatic reversal.
  
  
• Inside Bar
  ➡️ Compression and consolidation inside the range, often before expansion.
  
  
• Takuri Line
  ➡️ Strong rejection from range support — buyers stepping in.
  
  
• Hanging Man
  ➡️ Context matters. In a range, it highlights supply — not a sell signal by itself.
  
  
• Inverted Hammer
  ➡️ Buyer response after downside pressure within the range.
  
  
• Spinning Top
  ➡️ Indecision between buyers and sellers.
  
  
• Spinning Bottom
  ➡️ Temporary hesitation near range extremes.
  
  
• Engulfing Candle
  ➡️ Strong participation when aligned with location and context.
  
  
• Momentum Candlestick
  ➡️ Large-bodied candle showing aggressive participation.
  
  
• Change Color Candle
  ➡️ After a sequence of same-colored candles, a color change may signal pause or shift.
  

🧠 Best Practice

Candlesticks should be read as clusters and sequences, not isolated signals.
This tutorial focuses on how candles stack together inside a ranging market to tell the full story.

⚠️ Important

Candlesticks alone are NOT enough.
High-probability setups come from combining them with:

• Support & Resistance
  
• Areas of Confluence
  
• Chart Patterns
  
• Trendlines
  
• Indicators
  
• Multi-timeframe context
  

This is how high-probability trading is built.

👉 Want Part 4?
From the next phase, we move into advanced trading:
combining candlesticks with Support & Resistance — this is where the real edge begins.

📈 Follow to catch the next tutorial.

⚠️ DISCLAIMER
This content is for educational purposes only and does not constitute financial advice.
Trading involves risk — always conduct your own analysis.
I am not responsible for any decisions or losses based on this material.