Learn to trade Candlestick Patterns

Top training on using Japanese candlesticks to anticipate market turns before they occur

Created byTradeSmart University, Jeremy Whaley

Last updated 8/2016

English

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What you'll learn

Interpret Japanese Candlesticks like they were intended to be used
Recognize the most profitable candlestick patterns
Recognize trading sentiment even if there is not a specific pattern
Understand the "story" of trade sentiment behind the candlestick
Recognize early reversal signals warning of a trend change

Course content

2 sections • 22 lectures • 1h 34m total length

Introduction10:27
Trace the origins of candlesticks from Japanese rice trading and learn how each candle shows open, high, low, close, body and shadow, revealing day-to-day sentiment and short-term pulses.
Candlestick Basics6:53
Explore candlestick basics, including how opening and closing prices shape candle color, and how single candles reveal bulls versus bears within daily sentiment, and location matters for interpretation.
Single Line Candles3:58
Identify spinning tops as candlesticks with a small real body, signaling indecision and a balance between buyers and sellers, suggesting a potential reversal.
Spinning Tops & High Waves4:30
Identify the high wave candlestick, a spinning top with long upper and lower shadows, signaling extreme market indecision and a potential sentiment shift at pivot points.
Hangman4:20
Identify the hanging man candlestick, a small body with a long lower shadow at the top of an upswing, signaling a weak bearish reversal; seek confirmation before trading.
Shooting Star3:39
Identify a shooting star, a single candle with a small real body and a long upper shadow at the top of an upswing, signaling a bearish reversal.
Hammer3:43
Identify the hammer candle as a bullish reversal. Observe a small real body and a long lower shadow at the bottom of a downswing, signaling bullish buying pressure.
The Doji4:27
Spot the dozy candle, a spinning top with the same open and close, including long legged dozy, dragon-fly dozy, and tombstone dozy, signaling a strong early reversal.
Long Day Candles4:33
Identify long day candles as two to three times the average candle, noting subjectivity, and see bulls or bears in control, often paired with other candles to signal reversals.
Defining a Swing3:37
Define a swing with candlestick reversal signals, recognizing minor reversals at turning points that can precede intermediate or primary trend changes, with bullish or bearish readings.
Action Steps1:14
Practice identifying single candle lines on stocks, assess their location on the chart, and continue virtual trading to reinforce candlestick patterns and prepare for reversal and continuation lessons.

Intro to multi-candle patterns5:57
Explore candlestick patterns beyond single candles, learning how two or more candles form powerful signals. Review candle basics, sentiment, open-high-low-close, and the importance of location for reliable reversals and continuations.
Dark Cloud Cover5:42
Identify the bullish piercing pattern and the dark cloud cover as two-day candlestick reversals, occurring at support, focusing on candle bodies, gaps, halfway closes, and stops at first day’s low.
Engulfing Patterns4:41
Identify bullish and bearish engulfing patterns as powerful reversal signals with full real body engulfment. Use these signals to manage risk by tightening stops and exiting counter-trend trades.
Counter Attack patterns2:50
Learn bullish and bearish counter attack candlestick patterns, where a long day candle gaps and fails to enter the prior range, signaling reversal. Compare with piercing and engulfing patterns.
Harami Patterns5:12
Identify harami patterns where a second candle fits inside the first, signaling a potential reversal, with bullish and bearish harami and the harami cross.
Tweezer Patterns3:51
Identify tweezer patterns: two candles with matching highs or lows and alternating colors signal reversals; recognize when similar bodies and color alternation strengthen the move, despite gray cases.
One White Soldier3:43
Learn the one black crow and the one white soldier candlestick patterns, rare yet highly consistent swing reversal signals. They signal bullish or bearish reversals.
Morning Star Pattern3:21
Learn to identify morning star and evening star candlestick reversals, including three-day patterns and dozy and dogies variations, with emphasis on proper placement near support or resistance to signal reversals.
Rest after battle6:22
Explore bullish and bearish continuation formations in candlesticks, including the rest after battle and rising three, with notes on candle bodies, timing, and connections to flag patterns.
Action Steps1:33
Identify candlestick patterns in your charts, drill them with flashcards, and practice trades to recognize signals and trading sentiment; observe how patterns respond and try trades to lock in profits.
Wrap Up0:26
Wrap up this candlestick training by reviewing Japanese candlesticks and inviting questions, with routes to contact us on our website and to explore more trading courses on the main site.

Requirements

Students should already have a working knowledge of the stock market before taking this class
A general knowledge of technical analysis is very beneficial
Ideally students will have already taken "Foundations of Stocks and Options" from TradeSmart University (available on udemy)

Description

In this course, you will learn the secrets of Japanese Candlesticks that have only recently been made available to western traders. Here you will learn how to identify and interpret candlestick patterns the way the Japanese rice traders used them more than 200 years ago. With this training, you can better anticipate market turns, pivot areas, bullish and bearish sentiment, and most importantly, make more money!

This training is brief (less than 4 hours) yet it includes all of the major candlestick patterns as well as general training on how candlesticks work. It even includes a special lecture recorded from a live webinar of "candlestick identification" in action!

You should take this course if you are interested in adding candlesticks to your technical analysis "tool bag". It will help you:

• Get into trades sooner

• Get out of trades sooner

• Trade with more confidence

• Add to your general indicator analysis

• Get the most up-to-date sentiment signals

If you are a technical analysis skeptic, or if you only place long term trades and do not work on perfecting your market timing, this course is not for you.

Who this course is for:

This course is for traders who want to develop better tools for fine tuning entries and exits
Traders who already have some experience with technical analysis
Traders who want to better understand trading sentiment
This course is not for long term traders
This course is not for fundamental or value vesting traders

Learn to trade Candlestick Patterns

What you'll learn

Explore related topics

Course content

Single Line Candles11 lectures • 51min

Multi-line candle patterns11 lectures • 44min

Requirements

Description

Who this course is for: