Let’s make it simple
A loud clap seems enormous in a quiet room and ordinary in a noisy stadium. A candle can also look very different when you see its neighbours.
Understand the idea
A body of 3 tokens is large beside bodies of 1, but small beside bodies of 8. Relative momentum means comparing recent price movement with nearby movement. Use the same market and timeframe.
Notice body size, full range and where each candle closes. Three shrinking UP bodies show less open-to-close progress in those periods. They do not prove the uptrend has ended.
A small UP candle after a large DOWN candle may be only a partial recovery. The full sequence matters. Avoid changing the chart zoom until a small movement looks dramatic. Keep your measurement scale consistent.
Read exact candle values
| Candle | Open | High | Low | Close |
|---|---|---|---|---|
| A | 20 | 29 | 19 | 28 |
| B | 28 | 33 | 27 | 32 |
| C | 32 | 35 | 31 | 34 |
A small worked example
An UP candle goes from 20 to 28. The next goes from 28 to 32, then from 32 to 34. The bodies are 8, 4 and 2. Prices still close higher, while each period adds less than the previous one.
Your turn
Draw bodies of 8, 4 and 2 on the same scale. Finish these sentences: "The closes are __. The body sizes are __. The next direction is __."
Compare your exercise with a model response
Closes rise while bodies shrink. This is slower progress; future direction is unknown.
Pause & think
Check your understanding
Write an answer, then compare it with the explanation. This is self-study, not an automatically graded test.
Compare all three answers to unlock the review button.
Fictional examples. Education only; no pattern guarantees a result. Course information