The Tao of Forex Candlestick Meditation
A Step-by-Step Meditation Guide for Dynamic Candlestick Reading
This meditation blends Taoist mindfulness, I Ching wisdom, and real-time candlestick analysis to help traders cultivate patience, intuition, and clarity.
The Empty Cup
Step 1: Prepare Your Mind
"The usefulness of a cup is in its emptiness." – Lao Tzu
1. Clear Your Screen – Remove indicators, leaving only raw candlesticks.
2. Breathe Deeply (3 Cycles) – Inhale Yang energy, exhale Yin energy. Feel the market’s pulse.
3. Set Your Intention – "I observe without judgment. I flow with the market’s energy."
The One-Pointed Focus
Step 2: Observe the Current Candle
"A journey of a thousand miles begins with a single step." – Lao Tzu
1. Look at the forming candle – Is it Yang (bullish) or Yin (bearish)?
Yang (Green/White): Buyers leading. "Is this strength or exhaustion?"
Yin (Red/Black): Sellers leading. "Is this fear or consolidation?"
2. Note Its Size & Shape
Long body = Strong conviction.
Small body = Indecision (Yin-Yang balance).
3. Ask: "What story is this candle telling me right now?"
The Dance of Yin & Yang
Step 3: The Adjacent Candle Dialogue
"When Yang reaches its peak, Yin is born within it." – I Ching
1. Compare to the Previous Candle
Yang → Yang (⚊ ⚊) – Momentum building
Yang → Yin (⚊ ⚋) – Strength fading
Yin → Yang (⚋ ⚊) – Potential reversal
Yin → Yin (⚋ ⚋) – Downtrend solidifying
2. Meditative Prompt:
"Does this new candle confirm or contradict the last one?"
"Is the market inhaling (Yin) or exhaling (Yang)?"
3-Candle Flow Meditation
Step 4: The Moving Trigram
"Three candles reveal the heart of the trend."
1. Track the Last 3 Candles – They form a living trigram.
Example: ⚊ ⚋ ⚊ = Fire – Passion with instability.
2. Ask:
"Is this trigram strengthening or weakening?"
"What would a 4th candle change?"
3. Visualize the Next Candle – Before it forms, imagine:
If Yang appears, does it extend the trend or overextend?
If Yin appears, does it correct or reverse?
Anticipating the Unfolding Pattern
Step 5: The Hexagram Seed
"A hexagram is born one line at a time."
1. Observing the previous 3 candles, project the next 3 candles – Without predicting, remain open.
Example: Current sequence: ⚋ ⚊ ⚋ (The Water trigram – Double Water trigrams form Hexagram 29: ䷜ “The Abyss”)
Next candle ⚊ → Becomes ⚊ ⚋ ⚊ (The Fire trigram – Double Fire trigrams form Hexagram 30: ䷝ “The Clinging”)
"Will the market shift from danger to clarity?"
2. Journal Your Insights – Note how your interpretation evolves.
Wu Wei Trading – Action Without Force
Step 6: The Decision
"The wise trader acts when the moment is ripe, not when the mind is eager."
1. If the Energy is Clear (e.g., strong ⚊ ⚊ ⚊ or ⚋ ⚋ ⚋):
"The Tao is strong here—flow with it."
2. If the Energy is Mixed (e.g., ⚊ ⚋ ⚊ or ⚋ ⚊ ⚋):
"The market breathes in conflict—wait for clarity."
3. If You Feel Doubt:
"The Tao does not rush. Neither do I."
The Trader’s Tea Ceremony
Step 7: Post-Chart Reflection
"After the trade, the mind must return to stillness."
1. Review Your Meditation – Did you impose meaning or observe meaning?
2. Note Emotional Shifts – Did fear/greed distort your reading?
3. Adjust for Next Time – "How can I become more like water?"
The Trader’s Koan
"The perfect trade is not the one you take, but the one you understand."