Methodology

How CandleDojo scores your chart reading.

CandleDojo uses a trend-following framework to curate scenarios. The scored answer is the side rewarded by the fixed 30-candle replay window, and each scenario only makes it into the library when that rewarded side also agrees with the higher-timeframe 10-period Exponential Moving Average (EMA) trend. Every scenario uses real historical price data — nothing is simulated or generated.

How scoring works

Direction over 30 candles.

Scoring is based on direction accuracy over the fixed 30-candle replay window. You see a frozen chart and call Long or Short. If your call matches the side the scenario rewards by the end of that replay, you are correct.

XP is awarded based on difficulty:

— Easy correct: 10 XP
— Medium correct: 20 XP
— Hard correct: 30 XP
— Incorrect (any difficulty): 5 XP for participation

You always earn XP, even on incorrect calls. The participation XP ensures that every rep contributes to your belt progression regardless of outcome.

How scenarios are generated

Real OHLC, filtered for clarity.

Every scenario is built from real OHLC (Open, High, Low, Close) data from actual markets. No price data is simulated, synthetic, or algorithmically generated. For the underlying data structure, see Investopedia's OHLC chart reference.

Scenarios pass through multiple quality filters before they enter the library:

— EMA trend detection confirms a clear directional bias on the higher timeframe. See the exponential moving average reference for the underlying math.
— Minimum 30-candle replay movement thresholds filter out flat, choppy, or ambiguous periods.
— Directional balance checks ensure the library is not skewed toward Long or Short.

The result is a library of scenarios that present clear, tradeable setups across multiple instruments and timeframes. Ambiguous or noisy price action is excluded.

What "correct" means

Replay outcome, trend-aligned.

A correct answer means your directional call matches the side the fixed replay window rewarded by the end of candle 30. If price finishes the replay above the entry close, the correct call is Long. If it finishes below the entry close, the correct call is Short.

CandleDojo still uses a trend-following framework: scenarios are only accepted when that replay-window winner also agrees with the higher-timeframe EMA trend. This keeps scoring objective while preserving one clear, repeatable reading framework.

Two-timeframe approach

Context + entry, side by side.

Every scenario presents two charts side by side:

— Context chart (22 candles, higher timeframe) — shows the broader trend and market structure.
— Entry chart (26 candles, lower timeframe) — shows the precise decision point where you make your call.

Three timeframe pairs are available:

— Scalp: 15-minute context / 1-minute entry
— Intraday: 4-hour context / 15-minute entry
— Swing: Daily context / 4-hour entry

This mirrors how real traders analyze setups: establish the trend on a higher timeframe, then look for entries on a lower timeframe. CandleDojo trains that exact workflow.

Difficulty levels

Easy, Medium, Hard — algorithmic, not manual.

Scenarios are classified into three difficulty levels based on how clear the trend signal is:

— Easy — strong, obvious trend. Clear EMA direction, price firmly on one side. Most traders would agree on direction.
— Medium — moderate trend. EMA direction is present but price action is less clean. Requires more careful reading.
— Hard — weak or transitioning trend. EMA may be flattening, price may be crossing. These scenarios test edge-case reading ability.

Difficulty is determined algorithmically based on the strength of the EMA signal and the clarity of the price action relative to the trend. It is not manually assigned.

Belt system

XP-based, not accuracy-based.

CandleDojo uses a martial-arts-inspired belt system to track lifetime progress. Belts are earned through cumulative XP, not accuracy percentage. The ranks are:

— White Belt (starting rank)
— Yellow Belt
— Orange Belt
— Green Belt
— Blue Belt
— Purple Belt
— Brown Belt
— Red Belt
— Black Belt (highest rank)

Each belt requires a higher XP threshold than the last. Belts measure dedication and volume of practice, not just accuracy. A trader who plays 500 rounds at 55% accuracy will progress further than one who plays 50 rounds at 90%.

Belts exist to make long-term progress visible. They reflect volume and consistency of practice, not live trading performance or product access claims.

Limitations

Trend-following only. No secrets.

CandleDojo trains one framework: trend-following using EMA-based trend detection. This is a valid and widely used approach, but it is not the only way to trade. For broader context on the trend-following literature, see Britannica Money's overview of trend-following strategies.

Other valid approaches that CandleDojo does not currently teach or score:

— Range trading and mean reversion strategies
— Counter-trend entries at key levels
— Volume-based analysis
— Order flow and market microstructure
— Fundamental or news-based analysis

A "wrong" answer on CandleDojo does not necessarily mean a wrong trade in real life. It means your read did not match the replay-window outcome CandleDojo rewards inside its trend-following framework. This transparency is intentional: you should know exactly how you are being evaluated.

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