Alright, let’s talk about why we traders should pretty much marry closed candlesticks and ignore their wishy-washy, still-forming cousins.

Imagine you’re at a party, chatting with someone, and they tell you they’re thinking about buying a yacht. “Ooh, exciting!” you think. Then, five minutes later, they declare they’re actually going to buy a unicycle instead. That’s an open candlestick for you—full of potential, but ultimately unreliable until it’s, well, done.

A closed candlestick, on the other hand, is like getting a signed purchase agreement for that yacht. It’s final. It’s fact. It’s the market saying, “Okay, this is what actually happened in this time period, no take-backs!”

Why is this so crucial?

• Avoiding “Wick Tricks”: Ever seen a candle blast past a level, making you think “Breakout!” only for it to snap back and close like nothing happened, leaving a giant wick? That’s the open candle trying to trick you into an early, usually painful, trade. Waiting for the close saves you from these emotional rollercoasters and potential account headaches.

• No FOMO Follies: The Fear Of Missing Out (FOMO) is a trader’s worst enemy. An open candle screaming, “Look at me, I’m going to the moon!” can tempt you to jump in. A closed candle makes you pause, breathe, and only then consider if the “moon trip” was actually confirmed, or just a fleeting daydream.

• Pattern Confirmation (The Real Deal): Most powerful candlestick patterns (like engulfing candles or hammers) are defined by where they close. An open candle might look like a bullish signal, but then it pulls a vanishing act and closes as a tiny doji. Waiting for the close ensures you’re trading confirmed patterns, not just hopeful outlines.

So, while that open candlestick might look exciting and full of drama, always wait for the closed candlestick. It’s the reliable friend who tells you the truth, even if it’s not what you wanted to hear, saving you from a world of speculative pain. After all, nobody likes a flip-flopper, especially in trading.

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