1. You try to find meaning in EVERY candlestick that appears on the chart.
A lot of the time, markets are “noisy.” Not every candlestick is useful when thinking about future price movements.
Instead of looking at every candlestick, focus on the ones where the price is currently trading near important support and resistance levels.
So first identify where you think these levels are, and then start looking out for candlestick patterns.
2. Your imagination is too strong.
If you have to zoom in 500% or squint at the Japanese candlestick chart because you think “you see something”, there’s probably nothing there.
You don’t have to assign a textbook label to candlestick formations you see.
Focus on finding evidence of strong buying pressure when you expect to buy, and evidence of strong selling pressure when you expect to sell.