Original subtitles

hello everybody how is it going today

so today we're going to be talking about

how to read charts

and welcome to lesson number eight

we're going to be talking about how to

read charts analyze candlesticks

and reading price action so by the time

you're done this class

you should have a very firm grasp on

what are all these charts what are

what's all this information going on

with all these charts

what do these candles actually mean what

is actually price action

i'm sure that you guys have been very

overwhelmed before

if you have not been exposed to learning

how to read charts before

and these candlesticks guys they really

do tell a story

so let's recap everything that we've

learned thus far from lessons one to

seven very briefly

so i hope you guys have had a fantastic

day trading so far

and i am so excited to be doing this new

lesson number eight with you guys and

thank you very much for tuning in

so in the very first class you guys

should be able to speak the lingo with

me now right

we've talked about the common

terminologies in lesson number two

we talked about how to deal with your

emotions

how to naturally progress by losing

quite often

what is risk management as well and how

we try to make sure that we

increase our probability so we can trade

like a casino and we focus

on taking high probability setups that

yield

high rewards with very little risk in

lesson number three

we talked about dollar cost averaging

what is dollar cost averaging and what

is laddering your buys

laddering your buys is the process of

slowly buying on the dips as it gets

lower and lower

this way you can average out the cost of

your position

this way you're not actually trapped in

one particular situation

only what is the level two that was

lesson number four

reading the level two is a crucial part

of understanding

quick and real-time momentum changes we

have to understand what the bids are we

have to understand what the asks are as

well

it's only until we know how to read the

level 2 order book

that's when we'll have a very firm grasp

on what

exactly is going on in the order book we

also get a chance to spot

walls whenever we see these walls some

people call it manipulation

a lot of people also call it strategy we

have to keep in mind that trading is one

big strategy game right and because it's

a very big strategy game

there's always people trying to block

each other and then lesson number five

we covered what is going long what is

going short

what is margin trading what is

leveraging what are the risks

associated with it now in lesson number

six

we talked about what is why do we need

charts right why do we need charts and

why is it

important we talked about how to

customize trading view as well

and in lesson number seven which was

just the previous lesson

we talked about what are technical

indicators what is a technical analyst

how are they actually used how are these

indicators used

how do we differ from a technical

analyst and a fundamental analyst

what are some of the philosophies

associated with being a technical

analyst

rather than investing from a fundamental

level

so guys let's get right into this okay

i'm very excited to be talking to you

guys about how to read charts

we're going to learn how to analyze

candlesticks we're going to learn how to

read price action so thank you very much

once again for joining me for this

lesson

number eight okay let's jump right into

this tutorial

as you guys have probably customized

already this is how my screen

normally looks like i've got six charts

here on my large

32 inch monitor it's not a 4k monitor

because i don't need a 4k

monitor right a 1080p monitor does the

job perfectly fine

and it's actually all that i need some

people prefer to have a 4k monitor

you guys have seen my setup before right

i have two

32-inch monitors and let me just show

you guys my setup if you've never seen

it before

so this right here is the setup that i

use on a day-to-day basis

i've got two 32-inch monitors there i've

got a really cool corsair

mouse and keyboard combo lots of messy

cables but it's actually all cleaned up

now

i've got a really cool monster rig here

i really enjoy my

my led displays that you guys see here

right

beautiful displays here with rgb

lighting i've got a nice 1060 video card

all water cooled as well yeah it's it's

a cool setup it really is a really

definitely a really cool setup here

so that but the main thing to notice is

that this is this is my monitor setup

right here okay guys

this screen that you guys are looking at

is right here and this is where my web

camera is

i've got a steel series headset rgb

lighting keyboard and mouse as well

and this is the monitor that you guys

always see but normally i actually have

six

setups on here so make sure that you

guys are customizing your view as well

to however you prefer them

and i also have a tablet that i'm always

keeping on my keyboard

or buy my keyboard i've got a cell phone

as well actually two cell phones both of

them have my 2fa on it that don't touch

the internet at all

so yeah i just want to show you guys my

quick setup make sure you guys are

customizing

your setup as well make sure you're

investing

in a really good chair because you're

going to be sitting down on it all day

right

so let's talk about candlesticks guys

let's talk about candlesticks and what

this

means so we're going to go over it from

the very very

very beginning i'm just going to assume

that you guys don't know nothing at all

okay so we have a candle that's like

this

right as you guys all know that is

basically a candle okay

this is what we call the body now you

guys will always see

stuff like this right the o the h

the l and the c okay i'm just going to

write it down this is the o

which stands for open okay the h

refers to the high the l

refers to the low and the c refers to

the close okay

so what is the open so let's say

that this is a green candle there are

two different types of candles okay

there's a green candle

and there's basically a red candle right

just like this over here

and i'm going to draw this red so it

makes it very familiar the reason why

we need to make sure that we understand

how to read

these candles very well is because these

candles

tell a story they tell us throughout the

day

and it's called price action okay the

price action

will show us what is happening

throughout the day

and after it's happened already these

candles will form

now it's really important because they

really do tell a story

and once you learn how to read the story

it really does become like a book

and once you learn how to read this book

it will actually increase your

probability of leaning towards a

specific way or another way

and once you get these probabilities

down guys you guys are going to be

much much much more successful over time

i guarantee it

so make sure that you're putting a lot

of emphasis in learning

how to read these candles because i want

to make sure that you guys are

successful traders

i really do want to ensure that you guys

know how to read this properly

because it will only add to the

probability of having a higher success

rate when you're actually trading okay

so as you guys can see here

we have the open so what the open refers

to

is this right here and i'm going to

annotate it all for you guys

the open is right here okay

this is where the candle opened so just

as an example i'll move this to the to

the side actually so we can deal with

the red candle in a little bit

so this is the open let's say that this

was

ten dollars okay we're just gonna

hypothetical

okay this line right here that it's on

right

right there this specific line right

here

that is ten dollars right so now what

would the clothes refer to what what do

you guys think actually sorry

this would be the open my mistake there

guys okay this

is actually the open right here i was

thinking we were at a red candle

so this is the open where it starts to

open

up the candle at ten dollars so what do

you guys think the close would be

let's just pretend here that this is

eleven dollars okay

right here is eleven dollars do you guys

think that this would be the close

yeah it would be the close okay so if

that was ten dollars here

we'll just pretend that this one here

closed

at 11 okay just like that

so this is the open because we have to

think about it from the ground

up right we have to think about it from

this particular

way up right here okay it's going

upwards like that right

does that make sense so we think about

it from the perspective

of going down to up because

it is green so let's take a look at this

one right here okay let's take a look at

the red one

so because the red one is actually going

from

up to down we would actually think about

it from the

other way okay let's just move this a

little bit over

so you guys can get a very clear picture

of what's going on right now

i don't want to constrain you guys with

too little room here

so i hope this makes sense where because

it's green

you're thinking about it from going down

to up

right now if we look at it from the

other perspective of a red candle right

we would think about it from the

perspective of going up

to down so the open would actually be

up here okay this would be the open

and this right here would be the close

of the candle

so this is an important concept because

you guys will hear

very often about about traders talking

about okay what did the candle open at

and a lot of the times if a candle

actually ends up opening higher

than the previous candle on a high time

frame then it could indicate the

momentum

that's heading and where it's heading so

if this one here was the open

at 10 11 rather okay

then where do you guys think the close

would be

yeah if you guys said this was the close

close at at ten dollars right here okay

so yeah this would be the close at ten

dollars so once again

when we have a candle right that opens

at ten dollars

and it closes at eleven dollars it's

means that it went from the bottom

to the top now if you have a candle that

is red

and it was actually down trending then

you would see it

the open at 11 and the close is at 10

but because these candles have no wick

what we're also going to say

is that the high is also the same

as the actual open okay so

the high is also 11

right that's the high the highest at

this possible

candle actually got okay now what do you

guys think the low is

yeah if you guys said the low was ten

dollars you got it okay

so the low is also ten dollars

so for this one right here what do you

guys think the high is

take a guess

yeah if you said the high was also

eleven dollars you got it

what do you think the low is

if you guys said low was ten dollars you

got it okay

so pretty easy concepts right now okay

so i've changed it over to a daily chart

now and i just want to reiterate one

more time to be very clear okay

the it opened here because this was a

green candle

it goes from the bottom to the top right

that makes sense goes from the bottom

here to the top because we're going from

low

to high right so the low is ten dollars

and it opened at each ten dollars as

well okay

now the high is 11 and it's also the

same

as the close as well right

and then the other way around we're

going from

we're going from up to down because

this is where we're starting the opening

price so this is actually a downtrend

right

so for example this green candle is

going from down

to up and this candle is going from up

to down right so then the open

is at 11 and that was also the high

of that candle and then the low is it

reached to a low of 10

right which also closed at 10 as well

so now let's introduce this concept of a

wick

okay let's talk about wicks

and i'm sure that you guys have seen

wits before so you guys see these wicks

right

we always see wicks as you guys can see

what does a wick refer to okay

a wick refers to this right here i'm

gonna show you guys let's actually draw

in

some wicks in here okay do you guys see

the white

right there that's a white wick all

right

let's actually clear out the background

so you guys can see it a little bit

better

here okay let's uh take out the vertical

lines

i don't we don't really need them right

we definitely don't need them

whatsoever so let's just take that out

here for a moment

so you guys can see it a little bit more

visible and let's also

make a wick on the other side as well

okay

let's make a wick there let's also make

a wick here

and let's also make a wick right there

to make it easy for you guys to see

okay let's draw some nice candles in

here as well

that's pretty visible guys yeah it

should be right okay

so now we have the same concept

right the exact same concept where we're

going from down to

up okay so once again this right here

just refers to the body okay

body of the candle known as just the

body okay

that's the body of the candle and this

is just the body of the candle in here

so the body does not actually refer to

the

wicks at all so what are these wicks and

how can we talk about them okay

so now we're still going from down to up

but the only thing that changed was that

there was a wick

okay so let's just say for example

that we say that it's still open at 10

it's just to say there's no wick for now

just as an example first of all okay

there's only a wick up here at the top

and not one at the bottom

well the high where do you guys think

the high is now that we have a wick

well the high is actually up here now

right

so perhaps this high was of 12 right

so the high is where the highest point

of the wick actually

where it got to so now this is the high

of the candle

because that's where the wick is right

that makes sense guys

so this top point right there is the

high of the candle

so we still see it as the exact same way

where it opened

at ten dollars right

and then it got to a high of twelve

dollars

and then it closed over here eleven

dollars

now you might wonder what would cause a

wick

okay what would cause a wick so the body

of the candle

is only the solid part of the candle

that people will start buying and if it

closes with a body of a candle

only that's where it officially closes

people stop

buying at that candle but what this wick

actually refers to is that people bought

they opened at ten dollars and people

bought up to eleven dollars right

and then they actually bought all the

way up to twelve dollars okay they

bought

all the way up to twelve dollars right

there

but they actually couldn't sustain that

price

so if this actually pushed up to twelve

dollars

and it closed there then this one would

have a close of twelve dollars as well

okay but because people pushed it up to

twelve dollars

and then they could not sustain that

price well people

started selling off right because they

started selling off

selling off selling off selling off

selling off selling off

and then it came back to the price of

eleven dollars

right so so we what we see

is that it got up to the high of this

candle right here

or the wick rather of 12 and then people

started

selling it down okay they started

selling it down

and instead of closing at 12 up there

the close

was actually at eleven dollars instead

now let's introduce another concept of a

wick down here okay

and we see that often do you guys see

this candle right here

it has a wick on the downside right and

it has a wick on the upside

and it has a body of the candle right

here

as well right okay i'm sure you guys do

see that

so let's talk about what happened here

so

the open of the candle is always where

the body begins okay and the high of the

candle

is always or sorry the close of the

candle is always where the body

ends right and the high of the candle

and the whole thing refers to the how

high

that entire candle got including

the wick and then the low will mean the

exact same thing then right

it'll mean that what is the lowest point

of the candle that it actually got to of

the whole thing

including the wick well it's still

opened here

right let's see that we're that this

low actually got to nine dollars instead

okay

so what could have happened right what

could have happened to make

the low right there the lowest point of

the candle nine dollars

where where it opens at ten dollars

and it pushes up to there but it still

closes 11. so let's think about that for

a moment i'm going to give you guys a

few seconds to think about what kind of

scenarios

do you think that would make a wick on

the bottom end like this

can you guys come up with any good ideas

i can come up with a few good ideas i

can share if that's for sure

all right so what could happen here

is this let me show you guys and tell

you so let's see

it opened at ten dollars right the

candle in the next candle that formed

this is where the first price and the

people interacting with the market

actually ended up buying it so they

first bought it at ten dollars right

but what it could actually mean is that

people could have sold off okay it could

have

sold off to nine dollars first of all

right people could have sold off to nine

dollars if they did sell off to nine

dollars first

right this would actually look like a

red candle like that down

right so people sold off okay they sold

off

to nine dollars where it's actually

gonna look red like this first and i'm

actually going to go

through all the motions to make sure you

guys understand so it would have been

red like that at first

and it actually would have had no wick

so it would have opened that ten dollars

and reached a low of nine dollars but

because

it didn't actually sustain that price

the market

pushed it back up like this okay they

pushed it back

up back to the original opening and then

instead of being red

remember that if it's red it means that

the price is going down

if it's green the price is going up like

that right

so red will go down right

green will go up so red right here for

example right

if it opened right here at 11 red will

mean that it's pushing it down

like that right to the close so it

opened here

and now it's about to close right there

okay

and then if it's going up this is where

the open is

and then we're going up up up up right

people are buying it up but if it goes

down the candle the price goes down

it'll move down like that

so what this refers to is that people

are

actually buying right there guys right

they're buying it

well first of all once again people were

selling it off

to nine dollars opened at ten dollars

people sold it off to nine

but the market defended and because they

defended and they pushed it back up

there's now a wick right there's now an

actual wick

so then the market pushes it up and up

and up

and up all the way to 12 right to 12

that's where they're at but because the

market could not sustain it

at that particular price then what they

do is

the market pushes it back down like that

and that's why

we could actually have a wick okay so i

hope that makes a lot of sense

you guys are gonna hear me talk about it

a lot in the next few videos right

and i will be talking about the market

psychology behind

each candle as well because the

psychology

behind each candle is incredibly

important since they actually tell a

story right

and because they tell a story i

definitely can guarantee

that that once you guys learn how to

read these storied books

it's going to increase the probability

of you making a successful trade

and if you actually increase the

probability of making a successful trade

well guess what guys you're gonna be

profitable over time right and the money

will actually start to roll in

so now let's look at the red candle okay

let's look at the red candle here right

and let's just say

that it opened at ten dollars so it

first of all started right there okay

started right there and then the market

wanted and that's also the high

right because this is the high at eleven

dollars

and it also opened at that price so then

the market decides to sell down

decide to sell it down sell it down sell

it down

sell it down sell it down right

if it actually if it actually um

oops my mistake if it actually closed

right here

right then we would say that the low is

the same as the close

right right there but let's just say for

example

that it actually got to nine dollars

okay

nine dollars right here all the way down

to over here right

all right so let's say that this low was

actually nine dollars right down over

here right

so what would possess it to do so think

of it like this with me okay

i'm just gonna hold up my hand here to

give you guys a good idea so we're gonna

sell it down

we're gonna sell it down

whoops my mistake

okay we're gonna keep selling it down

okay it's gonna keep selling down

selling down selling down selling down

okay

selling down i'm not sure why this is

looking like that right now that's kind

of kind of weird

there that might be a little bit better

now okay sorry about that guys

so now we're selling it down selling it

down selling it down

selling it down and it actually got to

nine dollars right here okay

it got to nine dollars right here and

now

if it actually closed there right

if it actually closed right here then

the

open or sorry the close and the low

would actually be nine dollars right but

because

they actually could not sustain it right

the market pushes it back up

okay and as the market pushes it back up

to ten dollars right here a wick

actually ends up showing

just like that right so instead of

actually

closing at nine dollars you now close at

ten dollars

so the psychology behind this candle as

an example

is that the market tried to push it

really hard to nine dollars

right and keep it there but the bulls

actually ended up defending okay the

bulls

who are the people that actually want to

profit by going long i'm always going to

use

bulls and bears quite often so make sure

we're familiar with these terminologies

remember that a bull attacks going

upwards right they attack with their

horns going up

so they want the price to go up to make

money but

bears they want the price to go down

because they either want to

short the market or they want to buy

back cheaper

right so bears swipe with their claws

coming down

so we always think of the battles of the

bulls versus the bears

and they're constantly fighting

constantly fighting each other

back and forth back and forth so right

here

the bulls have defended and they pushed

it back

up right and then we actually see the

wick

so the low was now nine dollars right

and now the close was ten dollars

so let's also add another scenario like

this okay

we'll add this one right up there just

as an example we have a wick

so what would this possibly mean i'll

give you guys a few seconds

to think about what this scenario could

actually mean okay

so let's think about this together where

we now have a high

of twelve dollars okay and

open of eleven dollars a

close of ten dollars and a low

of nine dollars i'll give you guys 30

seconds

while i have a sip of my peach mango

drink right here

to think about what circumstance could

we actually have

that right there

all right let's get into this guys so

let's say

that we opened at 10 or so 11

right here right so what could have

happened

in this candle is that the bowls okay we

open right here

and this would actually first of all it

would have been a green candle right

because we're going up

so the open would have been 11 right if

it had finished there

then the close would have been 12 but

because

the bowls could not sustain it okay it

gets green

it gets green it gets green it's green

it's green it's green it's green

now the bears actually push it back down

that when it gets

past the point that it actually opened

that is where the candle will actually

start to turn red

okay so that's what happened it was

green green green at first right

the bulls tried to push it up really

high there

but the bears actually pushed it all the

way back down

so anywhere there's a fight between the

bulls and the bears

that is where it is actually going to

show a wick

okay it's going to show a wick and then

the bears end up pushing

it down again pushing it down pushing it

down right

and they push it down all the way to

over here right

and because they push it down here but

the bears could not hold their position

then the bulls actually end up pushing

it all the way back

up like that okay they push it all the

way back up

just like that that makes a lot of sense

i would imagine right guys

so once again the bowls they are pushing

it

all the way up right right okay they

push it all the way up just like that

but they actually could not hold their

ground and because they couldn't hold

their ground

the bears actually pushed it back down

and that's why there's a long

wick then the bears they keep driving it

down

the bears keep driving it down they

drive it down more they drive it down

even more

right then they push it to all the way

to nine dollars

but the bulls actually end up defending

and they push it back

up that is why there's a wick so let me

ask you guys this now okay

what if okay what if

this wick was really long okay let's say

this wick was really long

and this actually got all the way to

seven dollars we'll say okay

what do you guys think that this would

mean

if there was a really long wick at seven

dollars

okay what do you guys think that that

means

let's say we're on a downtrend okay

we're on a downtrend

and then we see this candle okay

actually let me ask you guys two things

okay

let's say we're on a downtrend and and

one candle was green like this okay

right let's say one candle was green

like this

and they both got to seven dollars like

that

what do you think the difference between

these two candles are

where one is green and one is red

but they both have a very long wick

can anyone guess what it means i'll give

you guys time really really think about

this okay

i want to give you guys a clue first of

all

you have to think of three dollars where

the bulls

ended up fighting back against the bears

and defended their position so what do

you guys think that this could actually

mean

okay let's get into it because i love

talking about this okay

what it means okay we'll talk about the

red one first

okay the red one opened here okay

the red one open it could have it could

mean many things first of all okay

let's talk about all the different

scenarios okay so

it could it opened there for example

right

it opened there and the first thing that

could have happened

was this okay the first thing that could

have happened

is that it pushed all the way back up

like we were talking about

right it pushed all the way the bowls

actually pushed all the way up here

first right

where this was green at first right but

the bears ended up defending

and they pushed it all the way down all

the way down all the way down

all the way down all the way down to

seven dollars

but now the bears and the people who are

interested in the

in the coin at this price they're like

no at seven dollars

we are actually going to hold our ground

and we want to buy it back up we don't

want to let it get past seven dollars

so now the bulls step in and they're

like okay we're pushing it up

we're pushing it up we're pushing it up

we're pushing it all the way back up to

ten dollars

okay so that's what it means it means

that

the range from seven dollars to ten

dollars

there was really strong support okay

guys

there was really really strong support

that's what it basically means okay

that it's not getting below that so we

call this a

bowl wick okay a bowl

wick like b-u-l-l like the animal a

bull wick because this refers to

a really large price in rejection

where the bears simply could not hold it

at that price

so the bulls actually end up defending

that three dollar range with a really

long

wick and guys what we look for is we

look for

wicks okay we look for wicks because wix

will give us the

best indication of what we can actually

do

in terms of the ranges of defense and

where these supports are

so if we get a lot of support in these

particular regions

we're going to be able to find clues of

where to actually go

long okay so that's a very exciting

concept

okay so we call this a bulwick right

guys

a bowl of wick is what we want to hunt

for

okay now let's talk about the green

candle

versus the red candle okay every time i

say candle

it reminds me of my friend maria maria i

miss talking to you if you're watching

these videos

you should really really get back in

touch with me she got really too busy

she got

much much too busy um recently with

school and everything so we kind of lost

touch

but every time i say the word candle it

just reminds me of her accent

it was kind of adorable so

yeah anyways sorry sorry about the

segway there in a little bit

i hope you guys don't mind my small

little anecdotes here and there and so

on okay

so let's talk about the difference

between the red candle

and the green candle okay so let's talk

about this right now

so the the actually we didn't even

finish this one right so we talked about

this first right here

okay where we talked about it going high

up and then the bears

simply pushed it down down down down

down here

and then the bulls defended it to make

it come back up

so we have a red candle keep in mind

right it's a red candle regardless of

how you see it

so the other way is it could actually

have gone

down first right it could have gone down

first down first like that

down first right and then the bulls

actually defended it

the bulls defended it pushed it all the

way back up

pushed it all the way back up like that

right

and then what ended up happening was the

bears actually pushed it all the way

back down

so you can see more of a struggle

when it actually comes to the red candle

right

red candle it's super bearish compared

to

what we're just about to talk about here

okay

so let's say we talk take a look at this

one now right

so this one could have happened like

this right

now what we want to see is the the first

way first of all is that

the the bowls attempted to push it up

right

it opened up here at 11 right

or sorry sorry it opened here on the

bottom right

opened here and then what ended up

happening was it went it the bulls

pushed it up first

pushed it up pushed it up right pushed

it up like that

right they pushed it up like that but

then it came

all the way back down here first to a

low of seven

dollars right like that

actually i shouldn't i shouldn't be

talking about it from that perspective

my apologies okay

i should be talking about it from this

one right here let's backtrack just a

second

and now the it opened here and then the

bowls pushed it all the way up

pushed it all the way up pushed it all

the way up right

but they couldn't hold their ground

right so it ended up getting pushed

all the way back down to over here right

which created a massive bull wick so the

bears

are actually trying to push it down but

the bowls are simply

too strong in this candle right and then

they pushed it

all the way back up to right here so

you can see the difference between how

strong

this one is and now the other way is

that it opened here right it opened

right here

and then the bears tried to push it down

first okay

but the bulls are like nah we're not

having any of that right now

we're not having any of that so then the

bulls pushed it all the way back up

all the way back up all the way back up

to even where it's twelve dollars right

and then some of the bears they took

profit or whatever then they pushed it

down and it just steadied right there

so that's an even more powerful

indication

so we have to think of the differences

between these two candles right

the green one is obviously a lot more

bullish

and the red one is a lot more bearish

and what we want

on a downtrend is a really big

green candle right now a red one

can still be a bullish candle but of

course

a green one will give you a much better

of a bullish

better chances of it being seen as a

harder supporter

so i hope that this has cleared up a lot

of the definitions

between open high open close

high and low so now let's move into even

more formations and give you guys

crystal clear

examples of what we see on

a typical day all right all right guys

let's get into some candlestick

formations

and let's talk about a lot of these

different types of candles right here

okay

let's first of all talk about the hammer

candle okay

we're gonna go over every single one of

these candle formations and they're

gonna be in high detail

so let's talk about the hammer candle

right here okay

so a hammer candle is green like this

preferably better green than red as

we've talked about earlier before

so the hammer has a fairly decent sized

wick

just like that right so this is called a

hammer

candle and this chart right here guys is

available to download just look below

it's going to be a part of the resources

where you can access and make sure that

you guys are saving this particular

chart right here

so the hammer candle implies this okay

that the bears

attempted to push well below okay

well below but the bulls actually

defended it very successfully pushing it

all the way back up

so it opened right here and it closed

right there so at the beginning

what happened was the bears tried to

defend

or they tried to push it down but the

bulls defended it pushing it

all the way back up hence the hammer now

the next one

is called the inverted hammer candle

okay

the inverted hammer is the opposite like

that

where it's an upside down candle but

this is still a very

bullish candle and the reason why it's

bullish is because well

the bulls are actually attempting to

push it up regardless right

and because they didn't get it that high

but nevertheless it's still bullish

because

they are attempting to push it up now

this right here

is called a dragonfly doji this one

right here

this dragonfly doji has a very small

body okay

a super small body just like this now

this one here it could be even smaller

like that right

this one is pretty much the exact same

terminology where the bears

tried to push it down but the bolds

defended and they pushed it back

up so if you ever see these at the

bottom of the downtrend

these are very bullish candles and it

would actually imply that if there's a

good chance

that something is going to happen in

terms of the bulls

defending successfully and we should get

higher high

now the next one we're going to talk

about is the bullish spinning

top okay the bullish spinning top has

basically like that where the body of

the candle is pretty much

right in the middle just like that okay

it's got wicks on the upside

and it's got wicks on the downside so

these are incredibly powerful candles as

well

okay and then we also have i'm just

going to go over the very common ones

that i think

are very important to understand right

so let's say you had

a uh a red candle right where you're

coming down

okay let's see you got a red candle

coming down just like this

so you got like a series of red candles

like that right

let's just say you got like two candles

right and this one's a small one

and let's say the next one here is a

really large

candle okay a large green candle that's

much bigger

than the previous red candle this one is

called the

bullish engulfing candle and the reason

why

it's called an engulfing candle is

because it's eating up

the previous candle right think of it as

a much bigger candle

that's actually just devouring it so

that's how i see it

and then you got another combination of

a candle called

the tweezer bottoms okay tweezer bottoms

is exactly as the name implies it looks

like tweezers right

it's got two little wicks like that that

actually look like tweezers

and if you guys see these two little

wicks right here

right that will actually imply that the

tweezer bottom it's showing some sort of

rejection to the downside

and that's what i personally love to see

quite often okay

so if you guys ever see these kinds of

candles they're

incredibly important for you guys to

recognize the signs

of a possible reversal coming up very

soon

so let's talk about some bearish candles

now right

let's say we got like you know some

bearish candles like that where

it's just sorry we should make that

green

not not red okay let's make this uh

green

okay where we're just getting a series

of green candles like that

it's still on an uptrend well let's talk

about some of these candles like a

hanging man all right

this is a hanging man right there make

sure you guys are downloading this to

add to your learning

so let's say that you actually get a

candle like this

okay where this one is now red

or green one or the other regardless

it's still seen as very bearish now the

psychology behind it

is this right here okay the psychology

behind it

is that the uptrend is almost over

and the bulls are actually losing their

steam

and the reason they're losing their

steam is because the bears are starting

to take profit

they're trying to actually drive down

the price of the market

right that's why you're seeing this

really larger wick right here as well

and some other bearish candles is the

bear spinning top

it's kind of the opposite of the bullet

spinning top where you get

a body that's right in the center and

you have a wick that's equal length on

the top

and on the bottom right so that's called

a bearish spinning top it might look

something like that a little bit bigger

if you got something that's very small

right like this right here for example

this is called a doji right small little

wicks

small little body so this would be

called a

bearish or sorry a bearish doji candle

or just a doji in general

now this one right here is the most

powerful reversal candle that i'm just

about to show you guys so please

remember this one

this one right here is called the

shooting star okay

the shooting star looks something like

that right

a shooting star is a candle with a

really

long wick to the upside okay with a

really long wick to the upside

which is very implicative that the bulls

have tried

very hard to push it all the way up but

they actually

couldn't push it all the way up and

instead the bears ended up pushing it

all the way back down now another

combination of a candle

is for example a tweezer top so the

tweezer top is exactly like the tweezer

bottom

except now we're seeing it on the top

and reversed where we're seeing kind of

formations like that

and the best thing to do is just to

actually get right into the candles and

take a look at tons of examples that

we're going to find

in these charts together so let's

remember

the significance of these candles okay

the significance of these candles

is that when we find them in specific

places

in specific positions on a chart it

might actually

indicate the momentum of what is

happening

so if you see a lot of wicks going to

the downside

when you're already on the way down it

might indicate

supports because they're trying to push

it down but the bulls are actually

defending and push it up

let's say you're going on an uptrend

right if you see a lot of wicks

right on an uptrend a lot of wicks to

the upside

it might also indicate that hey it might

not actually be the best time to go long

because we're getting rejections

so just to give you guys a basic idea of

what

different time frames is is you have to

remember what time frames are okay guys

we're going to go over time frames

in the next chart in the next um lesson

actually in lesson number nine

how to read the how to interpret time

frames

by looking at the little picture and

also the big picture as well

but just to give you guys a quick

introduction right

if you take a look at the daily time

frame

and you also see four hour time frames

as well

well guess how many four hour candles

will actually make up a daily candle

it would be six right because it takes

six four hour candles

to make up a single daily candle

right that makes sense so the way that

we look at time frames is

it's a way for us to get a gauge of

what's happening in the big picture

and also in the little picture as well

and overall

we try to do this because we want to get

an overall picture of everything that's

happening

on a micro level and on a macro level as

well

so let's just go over some candles that

we see

that might indicate just as an example

okay

so if you guys see right here right this

right this is a downtrend

this is a downtrend this is the

downtrend so what people were waiting

for

was basically a candle that was going to

be

bullish and this end up ended up forming

on the daily candle right here

it ended up forming a bullish spinning

top think of a bullish spinning top like

a rolling pin

right a rolling pin so then that signal

to the market right there

that hey this might actually be the

bottom right there

so let's look at it on an uptrend right

these two

candles right here made a tweezer top

right take a look at it's got those two

little wicks that are poking to the top

there

and then you get this candle here called

the bearish

engulfing candle right so on an uptrend

when you get the bearish engulfing

candle it's very indicative and very

powerful that we're going to pretty much

be done the uptrend

so let's take a look at some of these

this one here we're getting

starting to get a lot of wicks right

tons of wicks to the upside

tons of wicks to the upside and because

we're seeing a lot oh sorry about that

because we're seeing a lot of wicks to

the upside

what ends up happening is it usually

signals to the market that hey

are we actually done this particular

uptrend right now

so it might actually be time for you

guys to take profit

so here are more so indecision candles

right

sometimes when we see large ranges like

this range in that one day went from

9000 all the way to 11

400. these are more so indecision

candles okay

now let's see we're looking at this

candle what we're seeing is a hanging

man

candle so the hanging man candle signals

too the next day that hey this is it

guys like this is

this is definitely it right here we're

not going to get any higher highs

we're most likely just going to end up

trending very much so downwards

and this candle right here guys this is

the shooting star

but it kind of looks like a a bearish

engulf

sorry a bearish spinning top and it kind

of also looks like

uh a doji candle right a bearish doji

candle

so when we saw this right here on

december the 17th it was actually

signaling to the market that there's no

way we're going to get any higher than

that right

that's why we ended up dropping almost

20 000 there in a few days which was

actually really scary

so then but and it was also really

indicative because the next day as well

you're getting a doji near the very top

so it signaled to the market hey

might actually end up coming down so on

the downside

we actually see a lot of wicks right

here right so because we're seeing

tons of wicks on the downside right here

it actually shows that it's rejecting to

the downside

and because it's rejecting to the

downside it eventually

went back up for a little bit right and

then we got this bearish spinning top

here

at the top and this bearish spinning top

signal to the market that hey

it's actually time for us to take some

profit these long wicks to the upside

is basically a battle between the bears

and the bulls

and clearly the bulls ended up losing so

the bulls

attempted to push it up very high but

they just couldn't hold it right

and because they couldn't hold it it

just ends up coming downwards

so what we try to do guys is we try to

find confluence right what confluence

lets you do is it lets you find reasons

from a price action analysis and you

combine it with other indicators

such as rsi such as macd such as

tons of other indicators that might give

us more of a reason

and a higher probability that it might

actually lean one way a lot more than

the other way

so that's what we that's why we're

trying to evaluate

these candlesticks right here right

so let's just keep going right let's

just keep going

for example february 6 right we got this

gigantic hammer candle

the hammer didn't really hold there

because it didn't have a lot of volume

so what you want to make sure that you

have a lot of as well

on a downtrend is a lot of volume guys

okay

it's really important to have a lot of

volume if you get a lot of volume

you're going to be able to confirm that

the market is generally

interested in sustaining it at that

price and supporting it

so after we got this candle for example

a hammer candle

when this daily candle formed it would

have been very

wise guys to enter a position and you

would have entered perhaps with this

candle closed right there it opened

there

it closed there the next day you would

have entered your position

you would have set your stop loss

slightly below okay

you set your stop loss slightly below

and then you target at least the

previous high roughly right

the interim high right up there so that

you would have had a beautiful risk to

reward

of about two point about 2.0 we can say

okay 2.0

for a possible 48 gain for a possible 23

loss that's definitely a very good risk

to reward

now keeping it to candlestick analysis

only if you guys actually take a look

at this massive candle that formed do

you guys remember the name of this

candle right here

look up look up tie to the skies and

what do you guys see

whenever you want to make a wish

yeah you see a shooting star right

whenever you see a shooting star you

make a wish

and here for shooting stars it implies

that the bulls tried very very very

very hard to push it super high upwards

but instead they got rejected and it

simply just got shot down

and because it got shot down the next

day

it implies that the market psychology

says hey the bulls tried

the bears have pretty much taken over so

now

we're going to make sure that it's going

to keep going downwards so it implies

that the momentum

is carried over from the previous day so

we keep looking at these

wicks to see what kind of pattern

we can get and we try to read the price

action

once we read these price action enough

they will tell a story guys okay

like here for example right we see a

story being told

where it's actually coming down we see a

little wick of a rejection so it's

almost close right with the volume

this one here we see a wick as well

right and this one here we finally get a

doji candle

and because we finally got a doji candle

it would have been a

very nice signal to go long actually

especially with these series of wicks

so if you went into a long position

there right you would have entered into

a long position with that candle formed

right around here

you would have set your stop loss

slightly below that candle

and you would have targeted roughly the

high of that candle

and you would have had yourself a

beautiful risk to reward ratio

of about 6.54 now take a look at this

series right here guys

this series right here you guys remember

what this looks

like it looks like a hanging man candle

right

it looks like a hanging man candle

because there

there's a bull trend bull trend bull up

up

up right but here we get a more sold

indecision candle

but i would see it as a hanging man it

would be more

bearish if it was actually red but

that's okay

a green can still be considered bearish

so make sure that you guys are not

thinking that oh

it's a green candle it's gonna be

bullish oh it's a red candle it's gonna

be a bearish candle

no guys it is not like that at all a

green candle can be very bearish

depending on the position that it's in

for example if you saw this

candle right here this green candle on a

downtrend

you would think that you would find

heavy support but if you find this

candle right here

on an uptrend that you can easily know

that because it's on an uptrend that the

bulls have given up almost right they're

starting to lose

their steam and that's what candlestick

and price action

analysis actually lets you do it gives

you a really good gauge

of just general sentiment in the market

at that specific time it doesn't always

mean that they're losing the battle

but it does mean that steam is actually

starting to get lost

right so this candle right here the

bulls

have lost almost because the bears have

tried to push it down they tried to push

it down

but they defend excuse me a hiccup there

they defended and the bulls pushed it

back up

but the next next candle right here what

we see

is we see like a shooting star type

candle right and because

we see these two candle formations where

the bulls were starting to lose steam

and then the bears actually are starting

to take over because the bulls tried to

push it up

we got this nasty red doji shooting star

type candle right

so it implies that the bulls tried the

bulls pretty much lost here after they

tried

so the next few days that's why we saw

this very large

downtrend okay so if we keep going right

here

right we go down right this one looked

like it was going to go up

right this one looked like it was going

to go up this one looks kind of bullish

right

but it really didn't really get anywhere

so we also have to understand that it

doesn't always guarantee guys okay

it doesn't always guarantee that we are

actually going to see an uptrend when

something like that happens

right it just shows that sometimes

it's going to tell a story and it'll

give us a general market sentiment

but not always is it going to be

guaranteed because sometimes

you know we see this as a strategy game

right and as a strategy game

a lot of players will play against each

other so this one here

looked like a bearish engulfing or sorry

a bullish engulfing candle with a

tweezer bottom right

or even a spinning top but because it

actually didn't get anywhere

hey you might have taken a chance there

you might have got stopped out and broke

even

this one as well right it looks like

it's going to support

almost supported but it didn't really

get anywhere the next day

right but this candle for example is a

nice hammer candle

and with a really long wick right so

because it has a really nice

long wick and it actually has

lots of volume it was very easy to tell

as well

that it was going to uptrend eventually

right

so if you guys look at this region right

here we see it trending in this region

for a really long time with a lot of

wicks right

near the 6500 range and that alone was

actually very indicative

in my opinion that it was eventually

going to

go on an uptrend right so we see lots of

wicks and downsides lots of wicks

so these wicks are basically indicating

support and especially when we got

these two wicks right here guys okay

these two wicks right here

they give us a really good clue to tell

us at that there's

two rejections over two days to the

downside

so the next few days it's definitely

going to go on an uptrend right

so let's take a look at some other

candles right here for example

this one started to get uh just three

days ago on

actually sorry may the third here uh we

ended up getting a bearish

in uh hanging man candle right we got a

hanging man candle

which was starting to imply already that

the bolds were starting to lose steam

but the bulls said you know what we're

actually going to try a little bit

we're going to try to push it up push it

up push it up right

and the bulls definitely did a great job

but the next day

the bulls tried to push it up again

and they fail okay they completely

failed unfortunately

and because they failed we ended up

getting this double tweezer formation

at the top which is basically two widths

right so with two wicks guys whenever we

see them

we always have to think of it as very

bearish

and rejection and surely enough after

yesterday's candle formed

we're now getting this massive candle on

the downtrend

so we're going to keep going over a lot

more of this in

other videos to come and you guys are

going to familiarize yourself with a lot

of this okay guys

i assure you that there's going to be

lots and lots and lots of practice down

the road

so i think that we're going to conclude

the lesson here

tons of examples i don't want to

overwhelm you guys with material

i think we might have gone over almost

an hour already for this particular

video

and we're going to go through tons of

these lessons because i want to make

sure

that you guys are actually very

comfortable

with everything that i'm talking about

so thank you very much guys for joining

me for this lesson

so in this lesson we covered basically

how to read charts

right from a candlestick analysis type

we also talked about price action as

well

the candlesticks they actually dictate

or not dictate but they

they tell us a story about the price

action

and what's happening in the market at

that specific time

and when we learn how to read

candlesticks a lot better

and also read the price action when we

combine it with things like level two

for example

when we combine it with things like rsi

and macd

as well it'll actually increase the

chances of us being

having a higher probability of being

successful right

so we want to find more reasons to

to take a trade right and this is called

confluence once again right

see i'm just gonna spell it out for you

guys confluence right over here if you

guys see i'm gonna highlight it

confluence okay i know it's a word

that's not used

a lot but confluence when we try to find

hey

the candlestick is actually showing us

that for example you know it might find

support

hey our side is actually bullishly

diverging right now hey

macd histogram is ticking up right now

wow hey level 2 is showing a lot more

people interested in buying

hey volume as well is showing people

buying so you're finding tons and tons

and tons of these reasons to enter a

trade

and because you're finding tons of these

reasons well it's a really good

sign then you would actually have more

confluence

so you would want to enter the trade and

as you actually enter the trade you have

also a higher probability of winning it

simply because you're finding more

confluence so with higher probability

trades that you're taking

it's going to increase your chances of

just winning well more down the road

so i had a lot of fun talking to you

guys about lesson number eight over here

we are almost done if you guys get to

level 17

that is the big one okay guys lesson 17

will have so many examples

of using my specific strategy and what i

do

and it will have about 20 live trades

for you guys

three quarters of them will be going

long and a quarter of them will be going

short okay so when you guys actually get

through all of these lessons

you're going to have a lot of experience

under your belt you're going to have a

lot of information

under your belt as well and you're going

to know exactly what i'm talking about

when i live trade

and you guys can watch the magic happen

so thank you very much for joining me

for lesson eight

i had a wonderful time talking to you

guys about charts talking about

analyzing candlesticks talking about

price action

and i really look forward to talking

about lesson nine with you guys which

will be

about the big picture and the little

picture and how to interpret time

frames so have yourselves a wonderful

day thank you very much for joining me

in this particular lesson students make

sure you guys are posting

tons of questions okay post tons of

questions

make sure you guys reach out to me on

udemy we're gonna be able to tackle a

lot of these questions that you guys

have

because i want to make sure that you

guys are getting your dollars worth

so have yourself a great day and thank

you very much for joining me on this

lovely afternoon

i hope you guys have taken a lot away

from this video and more importantly i

hope you've had a very fun time learning

as well

may you guys always stay profitable take

care now bye