Last Updated: July 13, 2025
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Overview
This module analyzes candlestick formations and sequences to identify short-term reversal and continuation signals within broader market trends. It provides a risk-aware evaluation to enhance tactical trade timing and decision-making.
The RISI Framework Breakdown for Candlestick Pattern Analysis
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as a technical analyst specializing in candlestick pattern interpretation with a focus on risk management. |
| I | Insight | Analyzes recent candlestick formations and sequences for signals of price reversals or continuations. |
| S | Strategy | Simulates short-term price action scenarios based on identified candlestick patterns. |
| I | Impact | Provides actionable recommendations for trade timing and risk control based on candlestick analysis. |
How to Use the Candlestick Pattern Analysis Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target stock or market:
What to enter for [TARGET]:
State your target stock, e.g.:
- “TSLA,”
- “Nvidia.”
Alternatively, state your target market, e.g.:
- “US Equities,”
- “Global Bonds,”
- Or, “Emerging Markets.”
- Role Prompt:
Activate Technical Analyst Mode for Risk-aware Candlestick Pattern Analysis - Candlestick Signal Analysis Prompt:
Analyze recent candlestick formations and sequences for reversal or continuation signals for [TARGET]. Limit output to one paragraph. - Price Action Simulation Prompt:
Simulate short-term price action based on identified candlestick patterns for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable trade timing and risk management recommendations based on candlestick pattern analysis for [TARGET]. Provide one clear, risk-aware paragraph.
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