Do candlestick and chart patterns predict prices?

No. A pattern describes what buyers and sellers did over a few candles. Traders read meaning into it, and that reading is often wrong. No pattern is reliable on its own, which is why every entry in these lessons says where it fails.

Why are there no success rates on these pages?

Because we have no established source for one. Figures of that kind are often printed beside patterns without saying where they come from, which market they were measured on or over what period. We would sooner give none than give one we cannot support.

In what order should the lessons be read?

In the order given. Lesson 1 explains the candle, lessons 2 to 4 the candle patterns, lessons 5 and 6 trend and levels, lessons 7 to 9 the larger chart patterns and breakouts, and lesson 10 puts them together with a plan.

Where can I try reading a chart without risking money?

On a demo account on 777 Raptor, the GIO4X platform. A demo account uses virtual funds and simulated prices, so nothing is at risk while you learn to recognise the shapes.

Chart school · the lessons

From one candle to a plan.

10 short lessons and 64 drawings. Each one shows a shape, says what traders read into it and says where that reading fails. None of them says what to do.

Start with lesson 1 Every shape at a glance

The course

Ten lessons, in order.

Each lesson builds on the one before. Start with a single candle. Finish with the three questions to ask before any idea is acted on.

01Reading a candleFour prices in one shape: open, high, low, close.4 drawings · 3 questions
02Single-candle shapesDoji, hammer, shooting star, marubozu, spinning top.10 drawings · 3 questions
03Two-candle patternsEngulfing, harami, piercing line, dark cloud, tweezers.8 drawings · 3 questions
04Three-candle patternsMorning star, evening star, soldiers, crows, three inside.6 drawings · 3 questions
05TrendHigher highs and higher lows, ranges, trendlines, channels.5 drawings · 3 questions
06Support and resistanceLevels where the price has turned before.5 drawings · 3 questions
07Reversal chart patternsHead and shoulders, double and triple tops, wedges.9 drawings · 3 questions
08Continuation chart patternsFlags, pennants, triangles, rectangles, cup and handle.8 drawings · 3 questions
09Breakouts and gapsBreakouts, false breakouts, retests and gaps.5 drawings · 3 questions
10Putting it togetherContext first, then the pattern, then the plan.4 drawings · 3 questions

At a glance

Every shape, on one sheet.

All 64 drawings, lesson by lesson. Choose one to go straight to its entry.

01Reading a candle

02Single-candle shapes

03Two-candle patterns

04Three-candle patterns

05Trend

06Support and resistance

07Reversal chart patterns

08Continuation chart patterns

09Breakouts and gaps

10Putting it together

SimulationEvery drawing is invented to show a shape. None of them is a market. Educational information, not investment advice or a recommendation to trade.

Before you start

What these lessons will not tell you.

They will not tell you what to buy or sell, and they will not tell you that a shape works. They teach you to recognise what is on a chart and to say it accurately. What to do with it is a matter of risk, which lesson 10 comes to.

01
A pattern is a description.
It names what a price did over a few candles. It does not say what the price will do next, and the lessons never use the word “predicts”.
02
No pattern is reliable on its own.
Every entry has a part called “Where it fails”. You will find no success rates or accuracy figures here, because there is no figure we could stand behind.
03
Every drawing is invented.
The candles and lines were drawn to show each shape as plainly as possible. They stand on no scale and belong to no market. Real charts are messier.
04
Practise before anything else.
The place to look for these shapes is a demo account on 777 Raptor, with virtual funds and simulated prices, where being wrong costs nothing.

Questions people ask

About patterns in general.

Do candlestick and chart patterns predict prices?: No. A pattern describes what buyers and sellers did over a few candles. Traders read meaning into it, and that reading is often wrong. No pattern is reliable on its own, which is why every entry in these lessons says where it fails.
Why are there no success rates on these pages?: Because we have no established source for one. Figures of that kind are often printed beside patterns without saying where they come from, which market they were measured on or over what period. We would sooner give none than give one we cannot support.
In what order should the lessons be read?: In the order given. Lesson 1 explains the candle, lessons 2 to 4 the candle patterns, lessons 5 and 6 trend and levels, lessons 7 to 9 the larger chart patterns and breakouts, and lesson 10 puts them together with a plan.
Where can I try reading a chart without risking money?: On a demo account on 777 Raptor, the GIO4X platform. A demo account uses virtual funds and simulated prices, so nothing is at risk while you learn to recognise the shapes.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

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Fetching the page

Ten lessons, in order.