Candlesticks

Phase 2 — Read Price with Candlesticks

Candlesticks are a visual form of OHLC price data. In this phase, you will start with one candle, build a full candlestick chart, measure candle geometry, turn visual patterns into explicit Python rules, and finally combine those rules into a simple pattern scanner.

OHLC data
→ one candlestick
→ candlestick chart
→ body and wick measurements
→ price structure
→ pattern rules
→ preceding context
→ thresholds
→ reusable functions
→ pattern scanner

Phase 2 Lessons

1. How to Draw One Candlestick from OHLC Data in Python
2. Build Your First Candlestick Chart from Scratch with Python
3. What Does One Candlestick Really Mean? Read OHLC with Python
4. How to Read Rising and Falling Price with Candles in Python
5. What Is a Hammer Candlestick? Find It with Python
6. What Is a Shooting Star Candlestick? Find It with Python
7. Bullish and Bearish Engulfing: Compare Two Candles with Python
8. Same Shape, Different Meaning: Hammer, Hanging Man, Inverted Hammer, and Shooting Star
9. What Is a Doji? How Small Is “Small” in Python?
10. Build Your First Candlestick Pattern Scanner with Python

What You Should Understand After Phase 2

• OHLC values determine the shape of a candlestick.
• Body and wick sizes can be measured with Python.
• Visual descriptions need explicit numerical rules.
• The same candle shape can have a different name depending on preceding price context.
• Thresholds are parameters that can be changed and tested.
• Pattern rules can be written as reusable Python functions.
• A scanner repeats those rules across many rows of market data.
• A candlestick scanner is not yet a trading strategy.

Next: Technical Indicators

Phase 2 focused on reading price itself. Phase 3 begins transforming price into technical indicators, starting with the simplest example: a moving average.

What Is a Moving Average? Build One from Prices with Python

Start Here → Market Data → Candlesticks