Candlestick Charts: The Battlefield of Market Forces
- Vivek Kumar, CMT, CFTe
- Nov 14
- 3 min read
The market is a warzone. Every day, every hour, armies clash — buyers charging forward, sellers holding their ground. Each candlestick you see on the chart is a snapshot of a battle: who gained ground, who retreated, and what might happen next. Welcome to the battlefield of financial markets.
1. What is a Candlestick Chart and How It’s Built
The sun rises, and the first soldiers step onto the field — the buyers and sellers prepare for battle. At the opening bell, the fight begins. Some days, the bulls push hard; some days, the bears dominate. By the end of the day, the battlefield is marked — and this mark is the candlestick.
Open: where the battle begins (the first clash of the day).
Close: where the battle ends (last stand).
High: the farthest advance of the bulls.
Low: the deepest strike of the bears.
The body shows the intensity of the battle. The wicks reveal skirmishes that didn’t hold — fleeting gains and losses. A green candle signals a bull victory, a red candle signals a bear victory.
2. Other Types of Charts
Not all generals choose candlesticks to map the battlefield.
Line Chart: A simple trail of footsteps — shows the path but hides the fight.
Bar Chart: Shows the extremes of each day’s skirmishes, but lacks the color-coded drama.
Point & Figure Chart: Highlights only decisive victories — a map of major triumphs and defeats.
Heikin-Ashi / Renko: Smooth out the chaos — like watching the war from a high mountain rather than the front lines.
Candlesticks, however, let you see the clash in real time, feel the tension, and read the morale of the armies.
3. Why Use Candlestick Charts
As the day progresses, the battlefield tells stories of courage, hesitation, and surprise attacks. Candlesticks reveal these micro-battles in ways no other chart can.
Long green candles: Bulls launch a massive charge, pushing back the bears.
Long red candles: Bears counterattack, forcing the bulls to retreat.
Dojis: Both sides hesitate, unsure who will win this round.
Candlesticks are like battlefield reports — they show momentum, sentiment, and power shifts with a single glance.
4. Why Not to Use Candlestick Charts
But even the sharpest generals know that not every skirmish tells the full story.
Candlesticks show only price action, not the reason for victory or defeat.
Overreacting to a candle can lead to false signals — chasing phantom victories.
They are noisy; too many candles can feel like chaos on the front lines.
Use them wisely, alongside strategy maps, not as the sole guide.
5. Major Candlestick Patterns — Key Battle Formations
Every battle leaves a formation. Recognizing these formations helps predict the next strike:
Hammer 🛡️: After a losing streak, bulls rally from near defeat — a chance for reversal.
Shooting Star 🌠: Bulls push high, but bears strike back, leaving a warning.
Bullish Engulfing 🐂: Bulls completely overwhelm the bears — a powerful victory.
Bearish Engulfing 🐻: Bears reclaim the field, signaling potential retreat for bulls.
Doji ⚔️: Stalemate — both sides exhausted, waiting for the next move.
Each pattern tells a story of courage, cunning, and battlefield tactics.
6. The Western Classical Method & Candlestick Synergy
Imagine viewing the battlefield from a hilltop — you see hills, valleys, and fortresses. That’s the Western Classical Method: Head & Shoulders, Double Tops, Triangles. These are terrain maps, showing where battles are likely to rage.
Candlesticks, by contrast, show frontline skirmishes — the morale, the surprise charges, the retreats.
Combine both:
Western methods = the terrain.
Candlesticks = the battles on that terrain.
A general who reads both wins more often.
7. Final Thoughts: Reading the Battlefield of Markets
Markets are alive with conflict. Every candle is a soldier; every pattern, a tactic. Victory favors those who watch the skirmishes, read the terrain, and anticipate the next clash.
“In trading, as in war, victory belongs not to the strongest army, but to the one who reads the battlefield best.”
Step onto the market battlefield with eyes wide open, and let candlesticks guide your strategy.
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