Original subtitles

Alright everybody. Now in this video we're going to discuss

candlesticks part two. Now I want you to put focus on we

already discussed the basics of camel sticks. I want you to put

focus on three parts of the candlesticks that people tend

to neglect. Um and I'm going to type it out for you guys. It is

the body. Obviously that entails the volume. It is the

equilibrium of the camel stick. And now when you write

equilibrium I only want you to put in quotations or whatever.

I want you to put the daily candlestick. And then last but

not least the exhaustion. Okay. Now we already discussed the

high, the low, the open and the close but I wanted to put focus

on the body. The volume and the exhaustion. Now obviously this

is going to be our body. Our equilibrium is going to be

somewhere in the middle right over here because that's what

the equilibrium stands for. It's the middle of the

candlestick. And obviously our exhaustion. Now I know what you

guys have been taught. Some of you have been taught that if we

see a candle stick looking like this and do we have a let's say

a wick on the top. What is this telling us? This is telling us

that there's lots of momentum to the downside. Now that much

is true but it it has to be put into context. Now that context

I'm going to give to you today. So always remember it depends

on where the wick is and where in the market you are. For

example if I see a candle sticker it looks like that I'll

show you guys but it's extremely difficult. For

example right over here. As you can see there's no wick to the

downside and what happened the market immediately reverted to

the downside exactly the same with this candle stick the

market created a wick to the upside now when we have a

candle stick that has no wick to the downside and I can point

quite a number of them These are usually the cano sticks

that's not the most optimal candlestick for entry. Why?

Because there's no range. Okay. There's absolutely no range for

the market to go to. So for example if if this is our

candle stick on let's say the higher time frame let's say the

H four

And let's remove the width to the top side. I'm just briefly

going to run through exhaustion and stuff because we already

covered it. But I want you to focus on the candlestick now. I

want you don't want you to focus on the concept of

exhaustion. I want you to focus on the candlestick. Okay. And

we have this being formed and I already drew this out for you

guys. And we have this being formed on the lower time frame.

Let's say we have one bearish candle. And maybe another one.

And then we have bullish candles.

What does this mean? This is telling us in concept this is

telling us that there has been no momentum to the downside.

There has been no retracement. Okay. So we would rather want

to see something like this.

For the market to retrace and then obviously it's going to

leave a give us a wick on the other side because what's

happening over here is happening on the higher time

frames as well. So when we see this on the lower time frame

AKA let's just write it out the 30 minute then it's obviously

happening on the H4 as well. Okay so I just want to make

that clear for you guys. Now when we see this This means

that the market hasn't retraced. So you immediately

exploiting yourself or allowing yourself to experience drawdown

because where will your nearest stop loss speed will be over

here when you enter a trade like this. The market has to

come back down and retrace. Instead of waiting for

something like this wait for the wick and then just rather

wait for a small retrace to add with confluence. And then on

the next H four candle when the next H four candle opens you

can get in on that movement. So I hope that makes sense. Um now

when we focus on the exhaustion once again it depends on where

the market currently is. So for example on this candlestick

look at this market movement that we had on Friday. We had

exhaustion to the upside and to the downside. And then the next

scanner we immediately had exhaustion to the upside. So

what is this telling us? It's telling us the market is going

down. But then look immediately what happened? Exhaustion to

the downside. Now if we put it into context let's see where

the market is. Let's zoom out and we can immediately see all

right guys we're at a support zone. So we add a support zone

So this exhaustion to the upside it it doesn't tell us

pretty much it would have been better if we got a break and

then the exhaustion showing us over here. So you always have

to put the exhaustion into context. Now when I refer to

exhaustion for the guys that's still a little bit confused.

I'm speaking about the wick. Okay. I'm talking about the

wick. This is not exhaustion. Um because it's is small. Let's

say we got something like this. Ja then then we consider this

exhaustion. Okay. It all depends on your discretion. You

just have to use your discretion. Um let's point out

a few zones. Um you now we're going to do a quick exercise. I

want you to pause the video. And just test yourself. See

where you can see the exhaustion zones. Okay so pause

the video now. Okay so if you play the video I'm going to

draw out the exhaustion zones for us now. We can see this is

exhaustion. This is exhaustion. This is exhaustion over here.

Your eyes will start to recognise the exhaustion. Both

of these are exhaustion wicks. This is exhaustion wicks and

then we formed one up here. So there's no specific way of

drawing them. It's not 50% of the candle. 25% there's no such

thing. Um for me personally rule number one. If the wick is

larger than the body obviously that is that is exhaustion. Um

that is a definite rule. For example if we have something

like this this is obviously exhaustion. But if we have

something like this it's also exhaustion. Okay. So it all

depends. This is not really exhaustion. Okay. So it depends

on you. You have to use your discretion. But put it into

context. What is the exhaustion telling us? It is it has to be

on a key zone. For example let's say This is not such a

clear exhaustion zone because the market continued to rally

up. This is obviously an exhaustion zone because the

market tried to push up and it immediately went down. The

market did not revert back up. Okay. So always keep track of

that what is the exhaustion telling us. Now as I mentioned

earlier in the well in the first part of the video don't

neglect the candlesticks. Each and every candlestick is

telling us a story. For example like I just mentioned. This

story that we can plot out here. The market exhausted to

the downside on that key support area It also gave us

exhaustion to the top side. But I want you to focus on this.

Look at the wick is higher than this wick. So it tells us it is

a an uptrend on the lower time frame. Let me show you. Because

I want to show you practically. So this is a 30 minute. Let's

go to the 5 minute. And let's mark it out. So as you can see

let's just mark it out so this is the higher low and then the

market made a high why is this not a valid higher low it can

be but remember it has to be in context so if we broke above

this candle stick high it would have been a high low but I

don't want to confuse you and this is our next high low so

let's go to the 30 -minute once again and we can see okay this

week was higher than this wick so when up and immediately

after that this wick was higher than this wick. And we

continually continuously created higher highs. Okay so

always put it into context and I'm definitely not talking

about candlestick formations such as engulfing candles or

dojis. I'm talking about focusing on the candlestick as

a as a whole. Letting the candlestick tell you a story

for example. Um this support that we had formed this

morning. It nearly broke the support but did we have a wick

to both sides? Yes we did on the breakout camel stick but

this camel stick did not give us a wick. So this was not a

trade that I would have entered because we did not get that

wick to the top side. Meaning the market can still come back

up and create this wick nine times out of ten. So it's just

a basic rule that we need to focus on. But if you focus on

the current let's forget about that and we focus on the

current market conditions. Every camel stick a story. We

can see we created high lows. We created a small support.

Forget about everything else. I'm just speaking about the

current market conditions. Okay. Forget about everything

else. Forget about the high time frame, the session

timings. Just I just want to explain the story to you. We

can see we're currently in a range We can see that we're

breaking this range and the market is creating lower highs

and lower lows. Okay. So always remember the market is telling

us a story. Um stop neglecting the candle stick. Each and

every candle stick is telling us a story. But obviously take

note of this.

Sorry.

Okay take note of this. And take note of those three candle

sticks that we mentioned. And don't neglect your candle

sticks. Okay so I'll see you guys in the next section where

we'll start identifying the trend.