Candlestick Pattern Course For Beginners (patterns that actually work)

if trading 4x was like a puzzle then candlestick charts would be like the little tiny confusing pieces to that puzzle if you don't understand these pieces and you don't understand how to put them together correctly then your chances of consistent profits are next to zero and that is why in this video i'm gonna get you to a point of not only understanding candlestick charts but mastering them so that they can help improve the accuracy of every single trade you place i'm gonna do that by first explaining to you what a candlestick is and what it represents after that i'm going to teach you how to tell the story of each individual candlestick that way you don't have to memorize the hundreds of candlestick patterns that are out there instead you can just look at a single candlestick and based on the price action within that time period you will know what the market's likely to do next and at the end of the video i'm also going to be sharing with you the two candlesticks that i think you should be paying attention to these are two candlesticks that have immensely improved my ability to accurately make market predictions i think they can do the same for you so if you are interested in that then i need you to do two things go ahead and click that subscribe button down below the video to the right-hand side of the notification bell so you never miss content from us again click that like button for me to help out with the youtube algorithm third thing actually is go ahead and follow us over on instagram to get some early release content you do that while the intro and disclaimer rolls and i will be right back to share with you the only candlestick chart video you'll ever need see you soon [Music] all right welcome back guys so before you can understand a full candlestick chart you have to understand a single candlestick itself so let's dive into that right now what you see on the screen is a single candlestick and that means it's not in a relationship just kidding and what these candlesticks represent is a certain period of time it doesn't matter what that period of time is for instance you've probably seen this before on your chart we have daily charts we have one hour charts five minute charts for example sake we're going to assume that this is on a daily chart a green candlestick represents a day in price if we're on a daily chart it really represents a period of price where price closed above where it opened or a positive day in this case meaning that we had a day that price increased for a certain asset in this case a currency pair so on these candlesticks we have two major parts which are the bodies and the wicks we have the body of the candle which is represented by the green and red we have the upper wick and the lower wick that is less important to understand than understanding the four main points of a candlestick so as we said we're going to focus on the green candlestick and we're going to assume we are on a daily chart what does this candlestick actually mean well it means that we had an open of the day right here at the bottom of the body if we're on a green candlestick it means that we had a close of the day right here at the top of the body if we're on a green candlestick it means the highest point that this market got during a 24-hour period is the high of this wick and the lowest point that this market got during a 24-hour period is the low of this week so if we were watching this green candlestick throughout the entire day of price what we would see is this market open right here at the open push down to a low push all the way up to a high and eventually push back down and close right at the top of the body of that candlestick that's what one day of price would have looked like on a daily chart if this was the candlestick that was printed so these candlesticks represent a period of time where price is moving and these four points show you where price opened where it went at its lowest point where it went at its highest point and where price closed that is a green candlestick a red candlestick is very similar we're going to talk about that in just a second but i want to go over this a little bit further again this candlestick any candlestick represents a period of time it could be a daily chart this could be a one hour chart if it was a one hour chart that means at the beginning of that 60 minutes the price opened at the bottom of the body of this candle the price went down to a low at the low of the wick the price went up to a high at the high of the wick and by the end of that 60 minute period the close of the price is the top of the body of that candle so that is a green candle stick and hopefully that was enough for you to understand what a green candlestick represents we're gonna take a look at a couple of examples on a chart in just a second but first let's go over a red candlestick same thing let's assume we're on a daily chart here with big red and on a daily chart the red candlestick the only difference between it and a green candlestick is that we switch the open and the close because a red candlestick if a green candle represents a positive day then a red candle represents what a negative day of day when price fell off and because of that the open of a red candlestick is the top of the body the close of a red candlestick is the bottom of the body the lowest price point that price got to is the low of the wick and the highest price point that price got to is the top of the wick so if we were looking at this candle and we were watching it trade throughout the entire day we would see an open right here we would see the price push up to a high push all the way down to a low and eventually push back up to the close of this particular candle and that's what it would have looked like if we were sitting there staring at the chart all day so a red candlestick the only thing you need to remember is that the open and the clothes are on the opposite sides of a green candlestick because it's a day or time period where price fell off same with the green this could have been a one hour chart and we would have had the open of the 60 minutes here at the open a high the highest point price got within that 60 minutes a low the lowest point price got within that 60 minutes and a close and of course it could be any number in terms of the time frame the important part to remember is these four points represent a certain period of price and they show you four things they show you where price opened during that period of time whether it's a five minute chart or a monthly chart it shows you where price opened where price went to at its lowest where price went to at its highest and where price closed that is the point of these candlesticks so now that you understand that let's go ahead and take a look at two examples one bullish and one bearish on a chart to make sure it's extremely clear right now we're on a 15 minute chart of the euro pound i'm going to zoom in as far as i can we're going to look at two candles let's first look at this red candle i'm going to circle right now on this red candle see if you can spot the high low open and close where would they be hopefully you were able to say that this red candle opened right here this red candle got up to a high that's right here this red candle then pushed down to a low that's right here eventually push back up to a close that's right here and that would be the anatomy of that specific candle that's exactly what that candle did in what time period how long did it take this candle to form well as i said we're on the 15 minute chart so obviously this was a 15 minute candle within 15 minutes this chart or this candlestick went from an open to a high down to a low and back up to a close and that's exactly what that candle did on this green one we're going to take a look at this next what do you think happened here try to point out the open high low and close on your own hopefully you were able to say that we opened at the bottom of the body of this candle and we pushed down to a low here we pushed up to a high here and we closed right in this area on the top of the body of that green candle that would represent the 15 minutes of price action where this candle existed so that's how you read a specific candlestick chart a specific candlestick on a candlestick chart now let's jump into how do you read the story of a candlestick so you don't have to understand and memorize every one of the hundreds of candlestick patterns that there are instead i want to get you to a point to be able to look at a candlestick and understand what's likely to happen next just by what that candlestick looks like and the price action that existed in that time period let's do that now so as i said i'd like to see this as a story and for me i want you to imagine this with me i like to imagine a bull with boxing gloves on and a bear with boxing gloves on and each and every one of these candlesticks is a match between the two if you're unfamiliar with this concept bears represent a selling day or a day when the price went down or a period of time when the price went down doesn't have to be day can be an hour right like we just discussed and bulls represent a positive day or a buying day a day or time period when price moved higher so with that being the case i like to imagine a bull and a bear with boxing gloves on and each candle stick is a match between the two and i'd like to pay attention to see if it was a draw was the match a draw did nobody really win was it a little win on the bull or the bear side or was it a major win for the bulls or a major win for the bears and that's represented to me by these candlesticks so now you know the story i'm telling myself in my head when looking at these candlesticks as silly as it may sound it really did help me at the beginning of my trading career to imagine that with every candlestick but now let's talk about the technical side of that how do you know if it was a draw between the bulls and the bears with their boxing gloves on well the way to tell if it was a drawl looks something like this this is what's called a doji and a doji is a candlestick with a small body and nearly equal wicks on both sides if you saw this candlestick and you thought of it as a boxing match who would you think won if red represents bears and green represents bulls did anybody win this match no of course not that's not a win for either side so that would be considered a draw what about this match that's going to be a draw as well we're looking at no one having the upper hand during the match right so that's a doji candle and that's what the story i tell myself about doji's but what are the what are the other stories you can see on this chart let's take a look after the doji here and let's tell the story of each candle afterwards well the next candle we see what do we have how are we going to read the story of this particular candlestick well if you're reading this story what we can see remember the open is the top of the body of a red candle i wish i could zoom in more i'll probably zoom in on the actual recording software i'm using but we have an open it's right here and then let's say during the first couple of rounds the bulls took control but what about this comeback if i'm thinking about it like a boxing match what about this comeback where the bears pushed the market down and we closed literally on the lows the lowest point this market got to it closed down there so to me this candle represents a day or in this case 15 minutes of price because remember it represents a period of time 15 minutes of price where the bears completely took control by the end of that period by the end of the match the bears were on top in a major way with that being the case what do i expect out of price next well expect price to fall and i didn't say that because this is an inverted hammer i didn't say that because it has a long well i did say because that's a long way to the top side let me slow down but i didn't say it because i know the name of this candlestick right that's something that i'm trying to get traders away from is thinking they have to memorize the name of every single candlestick no just pay attention to what price is doing during this time period and it will tell you what the likelihood of it continuing down is if you see a candlestick where during the first couple of rounds the bull bulls were taken over and then the bears took over and we finished near the lows that's a very bearish signal that's a selling signal right there so we have that candle what's the next candle look like this candle tells me bears were in control during the whole match right we have the open of the candle here the high barely moved any higher then immediately we pushed down to a low and bulls can't take back control after that low whatsoever they barely push this market up so with that being the case what would i assume price to do and this is you can't trade just on candlesticks don't take it like that what i mean by this is the story of this candlestick tells me that during that 15 minute period bears were in control the entire time the entire 15 minutes so let's continue looking what about here well we consider this kind of a small win for the bears right bulls were kind of taking control towards the end but we still finished red so this is the way i want you to start looking at telling yourself a story with every candlestick that's printed i don't have to keep going with this i feel like you probably understand the concept but that is what you need to know and what i'm going to do next is show you the candlesticks you should be paying attention to and teach you the technical side of what candlesticks actually matter in the market and what candlesticks are likely to push the market around we're gonna do that in just a second but as i said what about this candlestick just as a final example here what would you think about let's say it was a boxing match what would you think of this candle here did the bulls of the bears win this match and was it a i'd like to see it in three different paths it's either a draw a little win for a bear or a bull or a big win for a bear or bull in the case of the candle i just circled little win big win draw what is it this to me would be a big win for the bears why like i said earlier first couple of rounds bulls think they have it they have control we got we got all the way up here new highs right compared to the previous high we've gotten new highs and then the bears just took complete control and closed near the lows so with that being the case that entire 15 minute period the entire period wasn't controlled by the bears but it was pretty cool seeing the comeback right and so this would represent a completely bearish signal for me considering that fact now let's take a look at the technical side of the two candlesticks that i think you should pay attention to in your trading again these candlesticks these two candlesticks are something that's helped me immensely in making more accurate price predictions based on candlestick charts let's take a look at those and i'll see you there all right so the first of the two that i want to share with you is what i call the complete control candle it's ccc abbreviated with ccc complete control candle and the way i spot this in markets is if you looked we're gonna go back to the the fighter story between the bulls and the bears if you looked at this candle what story would you tell yourself for me this represents a moment of match a fight a time period of 15 minutes where the bulls that was a weird bee are in complete control and the reason they're in complete control is because this is a candle that has very little to zero in this case bottom wick and a very small top wick outside of that the entire candle's green so the bulls were in control during this whole fight that means that this candle represents a completely bullish period of time in this case 15 minutes on the euro pound with that being the case i assume that price can head higher from this of course this is not some kind of magic candlestick pattern that never loses that's not what any candlestick pattern is it's just something that if applied correctly can help to provide an edge over the market which is what i'm trying to do here so it's the complete control candle the way we spot it specifically is a green candle and i'll do it i'll do a bearish version a red candle in just a second but a green candle with a very small to no bottom wick that closes in the top ten percent of the candle so if i get that if i get a green candle that's open is next to zero we have we have an open and almost no wick or no wick at all here and we have a close in the top ten percent then i see that again telling myself the story of a time period where bulls had complete control so that's what i like to look at so like right here for instance we have that let's say we are pushing forward and we want to find a bearish version of this same exact candle the complete control candle let's push the market forward also something to note these candles work best right after swing lows and highs so we have a push up a push back down a swing low with a long wicked candle which is the next one we're going to talk about and then a complete control candle bowl showing after this swing low we're taking control completely that's the story i tell myself and that's what helps me to understand the ccc or complete control candle so let's take a look moving forward until we find another complete control candle after a high remember it works best after a swing low for bullish or after swing high for bearish here we have another bullish after swing low so we had to push up swing high actually the swing high's right over here push back down we have a swing low and then we have the bull saying hey i'm taking control here because we have a close in the top ten percent of this candle in this case at the very top close at the highs and a very small bottom wick meaning the story that this says is we had to open here the bears barely pushed the market down before the bulls said nope and took complete control closing towards the highs of this specific period now let's keep going until we find a bearish version of this after a swing high and there we have a swing high but this close is not in the bottom 10 for a bearish that's what we'd be looking for of the candle for that reason we wouldn't be entering there we're waiting we're waiting we're waiting we now have a swing high after our little one two three move here one two three putting me into a downtrend i call this a one two three move if we get a break and close below previous level support then we get up here to a swing high after this swing high what do we have we have a complete control bearish candle so what we're looking at here is a candle that opened right here barely pushed up before the bear said nope took control pushed it all the way down closing at the lows so what i want you to pay attention to for this complete control candle is a candle with a very small to zero wick to the top and a very small to zero wick at the bottom whether it's green or red and another thing to point out that is a little bit beyond the scope of this video is that the candle must be at least one atr atr is right up here so it would be seven to eight pips in this case these candles were that i was pointing out but if you want to learn more about the atr indicator there's a link in the top right of the video so you can go over there and learn more about that but the the complete control candle is something that has dramatically increased my ability to predict market moves accurately so that's the complete control candle remember it's a candle with a very small wick or no wick at all to the bottom and a very small wig to no week at all at the top next we're going to look at what i call the 382 candle this is a candle i have talked about before in the past but it represents a story that can tell you whether the market's going to go up or down again not with 100 accuracy nothing is 100 accurate but it can give you a good indication and give you an edge if used correctly with the correct risk management plan strategy other conditions a lot of that beyond again the scope of this video but let's take a look right here if you saw this video this excuse me if you saw this candle what would you think what's the story you would tell yourself well in this case we started out as a bull right down here and the market got pushed up by the bulls but somewhere in the late rounds the bears started to fight back and eventually closed down here closer to the lows the reason i call this a 382 candle is because whenever i put a fibonacci retracement from the high to the low of this candle i want excuse me it's a 333 candle not a 382 if that's what i've been saying i want to see this whole body of this candle below 33.3 percent from the height of the low don't let that confuse you all i'm doing is taking the fibonacci retracement from the high of the candle to the low of the candle if the entire body of the candle is below 33.3 percent then i consider this to be selling pressure dramatic selling pressure again the story being that the bulls had control up to the high and then got pushed around by the bears coming back down to close near the lows so if we have a 333 candle i see that as bearish pressure if it's a bearish candle meaning the wick the longer wick is to the top side and if we have a 333 candle let's see if we can find one that pushes the market up like right here if you look at this candle what is your expectation the color is irrelevant in this case for this specific candle but in this case we see an open we see the bears winning the first few rounds and then we see the bulls fighting back to close at the highs as high as possible on this candle with that being the case and we can take a fibonacci retracement again just to confirm we have the entire body of this candle above 33.3 percent of the entire candle from high to low low to high in this case with a bullish example so with that being the case i'm seeing this as massive amounts of bullish pressure and as you can see the market after this candle pushed higher again this is not a candlestick that is 100 accurate nothing is and it must be added to a specific strategy and rules that you already have that are way too advanced for me to get into in this specific video we have other videos about it of course but i hope that these candlestick patterns can help you make more accurate predictions in the market and if this was something that was helpful click that like button for me if you're interested in some more advanced training on candlestick patterns and actual strategies that i use we have some availability in the eap training program this program comes with a full training course i'll put some testimonials on the screen from recent graduates in this training course you'll see the actual candlestick patterns and the full strategies that i use on a daily basis you'll also be receiving three to five email alerts per week of trades that i'm taking based on the strategies you're learning in the eap training program and you will have priority email which means access to me personally through email if you have any questions about the strategies or forex in general i'll be the one personally responding to you and helping you in any way i can to go further along in your professional trading career so if that sounds interesting that is the top link in the description if not that's totally fine too just make sure you are subscribed here so i don't miss you and you don't miss me for our next video go ahead and click that notification bell to make sure you're alerted about it and click the like button for me if you enjoyed the video comment below for future video ideas what do you need help with and i'll make sure to throw it in the next video i will talk to you later see ya

Channel: The Trading Channel

Views: 138,905

Keywords: forex, forex day trading, forex trading, make money online, forex trader, how to trade forex, how to make money, day trading, day trading for beginners, trading strategy, Forex trading strategy, learn to trade, how to day trade, how to swing trade, candlestick patterns, how to enter a trade, how to swing trade forex, forex swing trading, structure trading, support and resistance, best forex strategy, price action trading, price ation strategy, best forex entries, indicators

Id: TbYAiaR0itQ

Length: 23min 12sec (1392 seconds)

Published: Sun Aug 02 2020