1 of the Biggest Mistakes I See Traders Make With Candles

by Roger Scott | Oct 2, 2026

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I’ve been trading for over three decades, and if you want to know the single most revealing thing about a trader’s skill level, watch whether they wait for candle closes before acting on signals.

When I sit next to a trader — whether they’re experienced or just starting out — the first thing I look for is whether they’re waiting for the candle to close. This one habit tells me everything I need to know about their discipline and understanding of market structure.

Because if you’re not waiting for the candle to close, you’re taking an anticipatory exit. You’re not taking a confirming exit. That distinction can determine whether you follow your strategy or let temporary price movement force you out of a good trade.

Anticipatory Exits vs. Confirming Exits

An anticipatory exit is driven by fear or impatience about what might happen while a candle is forming. A confirming exit is based on what actually happened once that candle closed.

One is reactive and emotional. The other is disciplined and strategic.

Here’s an example from my trading. I was monitoring Hut 8 (HUT) as it approached the VWAP. It briefly moved above that level, which could have triggered an emotional exit. But a temporary move above VWAP is not enough.

I need the candle to close there before treating it as confirmation.

Once HUT closed above VWAP and its relative strength was rising, the evidence changed. That was the time to close the short position. The exit wasn’t based on a momentary spike or a guess about what might happen next.

It was based on two confirming signals: a close above a key technical level and strengthening relative performance.

This is an important nuance. Waiting for confirmation doesn’t mean ignoring risk or stubbornly holding a position. It means defining your exit conditions in advance, then acting decisively when the market confirms them.

Why This Discipline Changes Everything

In fast-moving markets, candles can show dramatic moves. Stocks will spike, drop and reverse — all within a single candle. If you react to every wiggle instead of waiting for confirmation, you’ll get shaken out of good trades constantly.

This discipline applies across time frames and signal types. Whether you’re exiting at a technical level, entering a breakout or managing another signal-based decision, waiting for the close helps filter out temporary movements and wicks that don’t represent sustained price action.

The difference between trading what might happen and trading what actually happened is the difference between guessing and executing with precision.

For the next five trading days, commit to waiting for every candle to close before acting on a signal. Watch how it reduces emotional reactions and improves your decision-making.

I hope that helps!

Roger Scott
Roger Scott Trading

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