Context
By the end, you can explain why the same candle means different things in different locations.
A loud voice in a library versus at a concert. Identical sound, opposite meaning. The location supplies the meaning — not the sound itself.
A candle's meaning depends on where it happens. A huge green candle breaking into open space (no overhead resistance) is very different from the same candle slamming into a major resistance level where sellers wait.
Same shape, different context, opposite read. This is why 'is this candle bullish?' is the wrong question. The right question is: who is in control here, and what's around this price?
“Big green candle — bullish, I'm in.”
“Big green candle into major resistance with longs likely to take profit — that's where I'd expect a fight, not a free ride.”
A large green candle drives straight into a well-tested resistance level. Compared to the same candle breaking into empty space, this is…
- A candle's meaning comes from its location.
- Into resistance ≠ into open space, even for identical candles.
- Ask 'who's in control and what's nearby?', not 'is this bullish?'.
Up next — Reading context well requires the right mindset. Next: how professionals actually think.