How to teach candlestick charts

Teaching candlestick patterns runs into the same problem every time: the chart that would explain the point clearly is not on screen today, and may never have existed. This page covers building the example you need, hiding the outcome until the class has committed to an answer, setting it as homework, and marking what comes back.

If you are learning the candles rather than teaching them, start with what a candlestick chart is instead.

The chart you need is rarely the chart the market gives you

Build the example, then the variations

Two copies of the same short decline. On the left it ends in a bullish engulfing candle. On the right the last candle closes below the first candle's open, so it is not engulfing.
The clean case and the copy that breaks it, one close apart.

Hide the answer until they have tried it

Step 2 of the New assignment panel with a reveal boundary placed: a dashed line on the chart and the note 7 of 20 candles hidden.
Candles right of the dashed line stay hidden from the student until the reveal.

Set it as homework, and get the work back

A student's submission open for feedback. The student's trendline starts late, and the educator's orange line and the note Start the line at the first higher low are drawn beside it.
Feedback drawn on the student's own chart, beside their line.

What this deliberately does not do