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All About Candles in Trading in 20 Minutes - Complete Guide for Beginners in 2026

0h 20m video Published Jun 26, 2026 Transcribed Aug 4, 2026 F FREADMAN ТРЕЙДИНГ
Beginner 20 min read For: Beginner traders looking to understand candlestick patterns and market dynamics.
AI Trust Score 65/100
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"Delivers a solid beginner guide but padded with community promotion and repetition."

AI Summary

This video is a comprehensive beginner's guide to reading candlestick charts in trading. The instructor explains the anatomy of a candle, the battle between buyers and sellers, and categorizes all candles into three types: strong, reversal, and indecision. He emphasizes the importance of context, key levels, and higher timeframes for effective analysis.

[00:42]
Anatomy of a Candle

Each candle has four key levels: open, close, high, and low. The body is the large rectangle, and shadows (wicks) show where price reached extremes but didn't stay.

[02:10]
Timeframes

Candles can represent different time periods (1 min, 5 min, 15 min, 1 hour, etc.). An hourly candle can be broken into four 15-minute candles.

[02:53]
Battle Between Buyers and Sellers

Candles illustrate the ongoing battle between buyers and sellers. Each candle shows who won that specific time period.

[03:19]
Buying and Selling Pressure

Large shadows indicate strong pressure from the opposing side. For example, a long lower shadow on a bearish candle shows strong buying pressure.

[05:15]
Three Types of Candles

There are only three types: strong (large body, small shadows), reversal (small body, large shadow), and indecision (small body, shadows on both sides).

[05:28]
Strong Candle

A strong candle has a large body and small shadows, indicating one side dominates. Absence of a shadow suggests no resistance and likely continuation.

[07:24]
Reversal Candle

A reversal candle has a small body and large shadow, indicating a shift in control. It often appears at key levels and signals a potential reversal.

[10:08]
Indecision Candle

An indecision candle has a small body with shadows on both sides, showing no clear control. It's a 'wait and see' signal; avoid trading on it.

[12:14]
Momentum

Big candles indicate strong momentum, small candles weak momentum. Compare candles: if each subsequent candle is smaller, momentum is weakening; if larger, strengthening.

[14:31]
Key Rules

Rule 1: Always look at higher timeframes (HTF) first for the global picture. Rule 2: Focus on candles at key support/resistance levels.

By understanding the three candle types and applying the two key rules (higher timeframes and key levels), traders can read charts like a book and improve their trading decisions.

Mentioned in this Video

Study Flashcards (8)

What are the four key levels of a candlestick?

easy Click to reveal answer

Open, close, high, and low.

00:42

What does a long lower shadow on a bearish candle indicate?

medium Click to reveal answer

Strong buying pressure, as buyers pushed price up despite sellers.

03:19

What are the three types of candles?

easy Click to reveal answer

Strong, reversal, and indecision.

05:15

What does a strong candle with no shadow indicate?

medium Click to reveal answer

No resistance, high probability of continuation in the same direction.

06:12

What is a reversal candle and what does it signal?

medium Click to reveal answer

A candle with a small body and large shadow, signaling a potential reversal in price direction.

07:24

What is an indecision candle and what should a trader do?

medium Click to reveal answer

A candle with a small body and shadows on both sides, indicating no clear control. Trader should wait for clarity.

10:08

How does momentum relate to candle size?

easy Click to reveal answer

Big candles indicate strong momentum, small candles weak momentum.

12:14

What are the two key rules for reading candles?

medium Click to reveal answer

1. Look at higher timeframes first. 2. Focus on candles at key support/resistance levels.

14:31

💡 Key Takeaways

💡

Candles as a battle

Reframes candles as a narrative of buyer-seller conflict, making analysis intuitive.

02:53
🔧

Only three candle types

Simplifies complex chart reading into three categories, a powerful mental model.

05:15
⚖️

Higher timeframe priority

Emphasizes the importance of context, a key principle for avoiding false signals.

14:31

[00:01] story. The story of the battle between buyers and sellers. Who attacked, who defended, who won and who now controls the market. Most traders look at these candles and just see either green or red

[00:14] rectangles, but they don't understand what these candles are telling them. Today I will teach you how to read these stories, and you will understand the market better than 90% of traders. By the way, I have a Telegram channel and a free trading community. There I

[00:28] share my setups, conduct live trading, and personally help each participant. The link will be in the description. Now let's go. I'll show you everything. Now let's go. I'll show you everything. [music]

[00:42] the anatomy of a candle. Each candle has four key levels. We'll start with four key levels. We'll start with the opening. And the candle opens.

[01:00] This is the very maximum and closes at this level. We have key points, key zones - opening, closing, top and bottom. And the big rectangle is either green or red. And no matter

[01:14] which direction it goes, it will be called a body or bodydi. I also so that you understand all the terms in English. This will be useful to you. The shadow

[01:26] is what is on top. These are these two sticks on the top side and on the bottom side. This is where the [music] price reached its maximum, either to the top or to the bottom, but in the end it didn’t stay there. In case

[01:40] we are talking about a bearish candle, the only difference will be that the opening will be higher than the closing. That is, our candle opens from the top side and closes from the bottom side. That is, if we were talking about a regular candle, then

[01:55] we had an opening at this level, it closed higher in a bearish candle. And it turns out that the opening will be higher, the closing will be lower. That is, in the end it went down [music], that’s why it’s called bearish.

[02:10] Another important point that I want to point out is that each candle can represent a certain period of time. That is, time frame you have open, that is, this candle can show, a, trading for

[02:25] 1 minute, 5 minutes, 15, 1 hour, 4 days, a week, a month, and so on. That is, [music] if we say, for example, we have an hourly chart open, and we will have one hourly candle. Next, if we switch to a fifteen-minute

[02:39] chart, for example, this candle will already look like four small candles. Now the most important thing is that most people don't understand. Candles are not just pictures, they are an illustration of the

[02:53] battle between buyers and sellers. Buyers are actively buying, and the price is moving upward. Sellers, in turn, are actively selling, and the price is moving down. The market is a constant battle between buyers and sellers. And

[03:06] each specific candle at a specific time interval shows who won this battle. Now let's talk about another important point. something you absolutely must know. There are such concepts as buying pressure

[03:19] and selling pressure. Ah, I'll explain what it is . That is, we see that we have, a, a candle, for example, of this level, a, of this size. And, as we can see, we have a fairly large active shadow on the buyer side. That is, it can

[03:34] buyer side. That is, it can be, uh, in our case, uh, for example, bearish, right? That is, we see that we have very strong buying pressure, that is, pressure from buyers. At the same time, if we

[03:48] can speak in this case, and for us it looks like this.

[04:00] shows that we have very strong pressure from sellers who want the price to go [music] down. But ultimately this is counterattacked by buyers, and the price closes at this level. But, as we can see, there is quite a lot of

[04:12] pressure being exerted here. And also one more important point that you should know is that the color of the candle is not always important. You also need to look at the shadows. For example, here we see that the candle, [music] and let's look at this

[04:26] [music] and let's look at this option, that our candle is bearish, it closed down, but, as we see, we have a fairly strong shadow. That is, regardless of the fact that it closed in a bearish direction and it is

[04:39] red, that is, here we have, as we see, pressure. And that is, it is very weak, because the shadow is very large. And in a similar way, that is, we can similar way, that is, we can now consider this kind of example.

[05:02] can see, it is also quite weak, because the shadow is very large. Now the main thing is why you are watching this video. Forget about thousands of patterns, forget about complicated names. There are only three types of candles in the world, just

[05:15] three. Learn to see them, and you will be able to read the chart like an open book. We'll start with the first type of candle. It is called strong or candle power. In English it's called strength, [music], so as we can see there's a big body and

[05:28] little shadows at the top and bottom. What does this mean? Let's look at a bullish example. That is, we have a green candle, and this means that the price actively opened at this level and simply confidently moved upward to this level. That

[05:43] is, these small shadows here show the slightest resistance from sellers. And also, if we talk about the opposite case, that is, here, if we talk about a bearish candle, the candle opens and confidently goes

[05:58] down. There may be some small deviations in the shadow. This is resistance from the buyer, but as we see, they are active, and the sellers are eating it up and are simply rapidly moving up. There is also another very

[06:12] rare phenomenon that can be seen on the charts - the absence of a shadow. If we are talking about a bear, then there is no shadow on top. If we are talking about a bullish candle, then this will be the absence of a shadow from below. This means that the candle is

[06:26] actively moving upward and there is no resistance from sellers or buyers on the . This also means that there is a very high probability that the next candle will go in the same direction and continue to grow, very

[06:40] likely. Also, depending on the context, the candle power can and may be called an engulfing candle. That is, as we see, the candle absorbs several previous ones, and this shows the seizure of control by buyers or

[06:55] sellers. That is, we see that there is one big candle here. These sellers did in one candle what it took the buyers four times longer to do. Therefore, as we can see, it is also important to understand what context is happening and

[07:09] to look at the history of the candles on the chart. What was before this. Now let's talk about the next type of candle - the reversal candle. It is also called Control Shift Candles. That is, as we can see, this is a candle with a fairly small

[07:24] body and a large shadow. Let's look at an example now, a, a, bychi. That is, our candle is green. The history of this candle suggests that the price opened at this level and was actively moving upward. That is, it is an analogy of a strong

[07:38] candle, yes, which is located on our left. But the sellers, ah, took the initiative and began to actively beat back the price and push it down. That is, as we can see, the is, we see that purchasing power, although it was strong at the beginning

[07:54] , was ultimately outweighed by sellers. And in the end, the sellers took the initiative. That is, this may mean that the next candle, may mean that the next candle, or perhaps in the opposite direction, in the opposite direction

[08:08] , will go in the opposite direction. If we talk, ah, now [music] about the bear example, that is, we are now considering this case, and now considering this case, and now I will do everything to make it clear.

[08:22] A, that is, this tells us that the candle opened, went down, but at the same time, buyers actively fought back, began to fight back, and the price fixed and closed at this level. That is, we have enough, a, a weak bearish

[08:39] candle in the end, since buyers took an active part here. And what does this mean? This means that right now a reversal is happening now a reversal is happening in the market, in the price movement. In

[08:54] this type of candle, it is also important to understand that color will not always that color will not always matter. Here. And here, in essence, we need to look at the situation. If this particular candle

[09:06] is formed at key levels, at levels of support or resistance, that is, support or resistance. That is, if we are, for example, at a support level and see a candle like this, then, most likely, the next

[09:20] movement will be a reversal. If we are at a resistance level, we will get a are at a resistance level, we will get a candle like this. candle like this. And now, on the contrary, with

[09:39] big long shadow, a small small body. That is, most likely, the price has reached a logical resistance level and will no longer go up and will go down, or a sideways range level may follow until it becomes clear

[09:53] who will take over, who will take control. If you have also heard about pinbar candles, which are called, they also belong to this type, to reversal candles. Remember, in these situations, in this type of candles, context is very important

[10:08] . And the last type of candle we will talk about is the indecision candle. It is quite similar in structure to a reversal candle, but the difference is that the opening price and

[10:20] closing price will be at approximately the same level. That is, the history of this candle shows us that the price opened at this level. At first, buyers pushed it up, then sellers pushed the price down and began to

[10:32] push it down. But then buyers began to counterattack, and the price ultimately closed, for example, at the same level. Whether it is a bearish or a bullish example, the essence remains the same, and we will have large shadows of approximately the

[10:48] same level, and the price at the end of the body will be small, the price will close at about the same level as it opened. The most important thing is that when you see this type of candle, do not trade, rely on or make decisions based on

[11:02] this type of candle. Wait until the situation becomes clear. Also, if this is at a key level, then this may also mean that there may be a reversal. Also, keep an eye on what candles will come next; if a

[11:16] strong candle with such a large body follows, then this also means that a reversal may occur. A classic example, if you've heard of it, is called Dodge Candles. These are exactly the same type of candles. That is,

[11:31] as I said, this type of candles can characterize a reversal. That is, if we have an active price movement, and where there is a strong candle, it reaches a certain level, we will form a price of uncertainty, that

[11:45] is, here we will have a flat, a sideways movement, and this could be a potential reversal. This does not 100% mean that the price will reverse. It just means that there is a potential possibility that the trend is

[12:00] Be sure to watch what will happen after this candle, what kind of next one will be formed. Now let's talk about momentum or how to determine the force of movement through candles. Ah, it's all simple. That is, [music] and if we

[12:14] see a big candle, this is strong momentum. Many participants, many transactions take place. If we have a small candle, for example, this one, then this means that there is weak momentum,

[12:26] less activity in the market. Despite the fact that all this happens within the same period of four-hour time frame, and, as we can see, in the same amount of time, one candle has made a much greater change in price than this. And another important point

[12:41] that I want to point out is that you need to compare the spark plugs with each other. Look at the candle on the left. If the candle is to your left, and the candle you are looking at is closer to yours, then this will mean that the momentum is weakening. If

[12:55] the candle is actually smaller and your candle, which you are looking at, is larger, then this may mean that the momentum is growing. For example, let's look at

[13:07] this situation. That is, here, if each subsequent candle, for example, becomes smaller, this will mean that the momentum is weakening. If, on the contrary, each subsequent candle becomes larger, this will mean

[13:20] that the momentum is becoming stronger. Here we see that we have one candle with a fairly large body. There is less and less here. This, by the way, is an indecision candle or a glow of certainty. That is, as I said earlier, at this

[13:34] moment, when the momentum weakens, we can potentially reach, if this is a key level, and a reversal can potentially occur. That is, this is an important remark that I want to point out that this will not always, but 100% mean

[13:47] that there will be a reversal, that is, the price can accumulate here and continue further, and the growth here is simply in specifics, in specifics, if we talk about this movement, that here we have a price and the momentum is weakening.

[14:02] But if it’s the other way around, that is, each subsequent candle becomes larger, then this will mean that the momentum is becoming stronger. And in this case it is very good to be already in the deal. That is exactly what we

[14:17] need. If we enter into a deal and momentum, and with each candle it becomes more and more. This is a great opportunity to collect a lot of pips. Now I'll touch on another important point - this is about the key points, how and where to

[14:31] look at candles in general. That is, first of all, and the first rule that you should remember is to always pay attention and look, and first on the higher time frame, that is, now I am on the four-hour time frame.

[14:45] It will be more important compared to if you look at a lower time frame, fifteen minutes. That is, ah, an important point, that is, the four-hour time frame will give you a more global

[14:58] picture. Then you can move on to fifteen-minute timeframes and look specifically at the entry point, look for confirmation, and then enter. That is, if you look, for example, in the context of a five-minute

[15:13] candlestick, here, for example, you may have a customary tendency, yes, but in general you will be right. What if it ends up here? That is, here you are actually expecting a bullish direction and will enter with the expectation that this is a long. In fact, if

[15:28] you understand and look at the bigger picture, you will see that the overall trend is bearish and there is no point in even considering the long side . [music] That is, uh, the first and key rule, uh, always

[15:41] pay attention first and look at the higher time frame. higher time frame. HTF is a higher timeф, HTF is a higher timeф, and this will be, a, more priority in

[15:55] and this will be, a, more priority in relation to L timeфame. This is a junior timefm. This is the first rule. The second rule is

[16:08] also very important - pay attention and look at the candles first and foremost at key levels. That is, here we have, for example, a support level, and here we have a resistance level. For example, if you

[16:20] see a strong candle at this level, this may mean that the level may be broken quite quickly and the price may go lower or higher. If we have candles in this area

[16:34] such as an indecision candle or Ctrl Shift, then this could mean, well, that is, in the case of Ctrl Shift, this could mean a reversal with a higher probability , if it is an indecision, then here we just need to wait,

[16:49] wait until the price forms a direction. The second key rule is to always look at the candles in key areas. That is, they will give you a general idea of ​​what to expect. Here. Well, and secondly, it will simply

[17:03] make your time easier than looking for every candle there. Now let me write the second rule - always look at,

[17:18] well, the key levels of the So, actually, at this moment in this video, these are two important rules in addition to the theory that I previously explained. That

[17:34] is, taking this into account, your trading will become much better, much more effective. I'd also like to point out that under the video in the channel description I'll include links to other videos that are useful and relevant to this topic. So look,

[17:48] go to what will resonate more. And also, if you're interested in trading, and I'm absolutely sure you are , since you watched this video to the end, I also recommend you visit my Telegram channel. Here I

[18:01] will publish even more information about trading in general. And I'm describing how my about trading in general. And I'm describing how my trading takes place. For example, in A yesterday trading takes place. For example, in A yesterday I made plus 1,512 dollars some

[18:15] today. This turned out to be a small minus. I had some liquidations here. That is, I am honestly describing how my days go in general. I also publish useful information, podcasts, and here are the results of community members in general. And if you're

[18:29] interested, for example, in receiving more information or want to immerse yourself in then joining the community is completely free. Here, for example, today I announced a free introductory course to trading. I will be covering this over the

[18:44] next few months. I also share my setups here, publishing specific entry points, stop-loss, and take-profit. Here I trade in Vlaformate. And as a plus, for all community members, as you can see, I only started at the

[19:00] beginning of January, and I have personal support , meaning I'm always available for any questions and will be happy to help. I want to turn this community into a cool team, a community. [music]

[19:19] story of the battle between buyers and sellers. And each candle tells who attacked, who defended and who won. There are three types of candles in total. A strong candle has a large body and small shadows. [music] One side dominates, and therefore

[19:32] waits for the continuation. There are also reversal candles - this is [music] a small body and a large shadow. On the one hand, this means a seizure of control and a possible reversal. There are also candles of uncertainty. It's a small body

[19:44] [music] with shadows on both sides. Nobody controls. Accordingly, wait and see moment. Big candles mean strong movement. Decreasing candles mean weaker movement. I also told where and how to look at candles.

[19:58] First of all, only at key levels. And in the second case, I pay higher timeframes, then to the lower ones. Well, now you read the market like a book, and each candle is a page, and you understand what is written on it.

[20:12] Now I ask you to subscribe to the channel, like it and click the bell so as not to miss the next videos, which will also be very useful. And please write in the comments what topic

[20:24] [music] to discuss next. Thanks for watching. See you in the next video. M.

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