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."