Recently, I’ve noticed that many traders are still stubbornly relying on various technical indicators, staring at live streams waiting for master tips, but ending up with heavy losses. I think, rather than wasting time like that, it’s better to calm down and learn naked candlestick trading, also known as price action trading.

Naked candlestick trading sounds mysterious, but it’s actually just judging market direction by observing the price movement structure on the candlestick chart, without relying on complicated technical indicators. Of course, this doesn’t mean completely ignoring other tools; it’s just emphasizing that the naked chart itself is the most core source of information. Trend lines, support and resistance, Fibonacci retracements—these are all directly derived from the candlestick chart. Ultimately, price structure is the key to everything.

My personal experience is that many people lose money because they don’t understand the market structure clearly. You see, sometimes prices bounce off important support levels, sometimes they are broken straight through. This unpredictability often comes from not truly understanding what the current market structure is telling you. Market structure is basically connecting all the highs and lows during price movement to form a zigzag line, which can tell you what the market is really doing.

To effectively use naked candlestick trading, I suggest a three-step approach. First, identify important support and resistance levels. These are usually areas where bulls and bears fiercely battle, best marked on larger timeframes like hourly or daily charts. Besides obvious swing highs and lows, pay attention to key round numbers (these tend to act as support because many traders watch them), and important Fibonacci retracement levels like 50% and 61.8%.

The second step is to determine the market direction, or trend. The market generally moves in three ways: uptrend, downtrend, or sideways. An uptrend is characterized by gradually higher lows and higher highs; a downtrend is the opposite, and sideways is just oscillating within a range. Once you confirm the trend, you can set your entry strategies accordingly.

The third step, which is often overlooked, is understanding market psychology. At this point, price patterns and candlestick formations on the naked chart come into play. Reversal patterns like head and shoulders, double tops, V-shapes, and continuation patterns like triangles, rectangles, flags—all reflect the balance of buying and selling forces. For example, if in a double top pattern the right shoulder forms a lower high, it indicates that sellers are gaining the upper hand.

I’ve seen many examples, such as in commodities like palm oil, where a double top on the hourly chart breaks the neckline, signaling a good sell opportunity. Combining trend, support/resistance, and pattern analysis together allows you to judge what’s likely to happen next quite clearly.

Honestly, naked candlestick trading is indeed considered one of the most powerful technical methods for profitability, but ultimately, whether you make money depends on the person using this approach. Experience, psychological resilience, and understanding of the market are the decisive factors. So rather than blindly following various indicators and live stream advice, it’s better to spend time studying market structure and gradually accumulating experience. That’s how you can achieve consistent profits.