Complete Candlestick Trading Guide | Major Keys For Candlestick Forex Trading

your swag academy gang we are in the building and i got my microphone in the camera you see what happens when austin's not here nobody is here to direct me so since the last time i posted a video on youtube i've probably posted maybe 10 or 11 new videos um in the academy because we have this whole plan to you know reconstruct it design and do the whole website over do every single video over but all in detail with this new setup because you're about to watch a candlestick video right now of me going off for 40 50 minutes an hour long and that is how long these new videos are i'm in the mood in the spirit to just create longer videos because it's a lot easier for everybody to digest it and see the value in it all and put it all together in one video as opposed to five small videos that's nine minutes each and i'm just not in that phase anymore you know what i mean so if you want to be a part of the academy before the you know new academy is done in the next few weeks and see the new videos that's coming out daily um it is www.swagacademy.com and it's not like it's a seasonal pass once you're in you're in for life on another note candlestick trading and i'm excited to make this video because a lot of people you know have been seeing me trade and analyze the market and make youtube videos and talk about the market for a good amount of time but i don't think i had a dedicated video just on candlesticks on youtube yet i don't think so and people have been asking me for so this video is strictly talking about candlesticks so make sure you sit back you have your notes out you do whatever you can do just to try to learn some type of information from this video my goal at the end of this video is for you guys to at least gain one percent of knowledge from this video if you guys watch the whole video and the entire thing was full of value and you learned so much great but i don't want you to watch this video that's an hour long and you receive zero type of value that's not what i want if i can at least help you some way shape or form i did my job and i can be happy with myself so without further ado let me stop talking and let's get right into the video so when it comes to candlestick trading i have a lot of notes um written down that i want to go you know over you guys step by step by step and then i have a lot of examples to show you guys as well um before i start this video i want you guys to know that this is my experience this is my opinion um what works for me may not work for you and what works for me may work for you the goal is for you guys to create your own foundation but get some inspiration from you know a trader like me or another trader out there and put your overall foundation together so this is how i interpret candlestick trading in candlesticks as a whole and before i get into you know everything else because if you can look at the little time you know the length of the video below you see it's a very long video but the first two to three minutes just like i did with the moving average video i want to talk about it for beginners just in case somebody's watching my video has no idea what it is but just give me two three minutes of your time for those who already know the open the hide below the close just give me three minutes leave your time and then the rest of the video is just all my notes and me diving into the market and just giving you guys some examples and some value uh for your own overall uh trading and experience again i just want to be on this part for again two or three minutes i'm gonna you know go through this fairly quickly because i really want to be on the charts and i really want to be on my notes because a lot of those has maybe some points that you guys have never heard before um but as far as candlesticks this is what we use to read the markets what we use for technical analysis um so if we see something like this which is essentially how a candlestick will look you know we'll just got to get used to this if you're a beginner right this is called the wick the little lines on the top and the bottom and this is called the body right just keep that in your mind now if it's red just like it is right now up here is the open where price opened right here is the close right here is the lowest point price went to this uh lower wick is the lowest point price went to and this higher wick is the high price went to i drew that on wrong a little bit but yeah so let me if i could just delete this and kind of give you guys an example um open high low close what you'll see is that you know the market will like open right here right and then it'll come down all the way down here it's all body right but the minute the market comes up here because if you're looking at a 15-minute time frame one candlestick represents 15 minutes if you can look at the chart really quick again like i said just give me two or three minutes of your time if you're a beginner trader i mean if you're a more advanced and intermediate trader because i'm going to get to everything overall just give me two more minutes so if you see this right here i'm on a four-hour time frame this represents four hours this represents four hours this represents four hours right so if i can go to my notes you will see you know it'll be all body but the minute you know price has to come back up and like trade around this level it'll be like this better have this wick because it'll show you the trail of where price went to just like the price goes way up here and then it comes back down and goes right in there it'll look like this it'll have that wick from the bottom and that wig from the top now if it's green it's the exact opposite right you may see something along this line where it's just like this and what this means is it opened down here it closed up here this is the highest point price went to and this is the lowest point price went to and the reason why i'm breaking it down on a basic level is because i need you guys to understand and pay attention to the body and the wicks of these candlesticks people just look at the at the overall candlestick and not even pay attention to how big the wicks are or how much the body is in comparison to the wicks and that's actually one of my notes that i have uh later in here but i want to break it down in the most simple format so you guys can easily understand it and easily digest it so keep this all in your mind if a candle ends up being red that means it opened up here oh i just erased it sorry guys that means it opened up here right and it closed down here right and if a candle is green that means it opened down here and closed up here the high and low remain the same no matter what um it's just the open and closed flips depending on the color of the candlestick and if it's bearish or bullish now to the notes my first note and first overall role when it comes to myself is you don't need to look at every single candlestick at every single time frame every second of the day it's so relevant and this is one of the issues that i had when i first started trading in 2015 and looking at the market like i would be so obsessed with looking at a one minute in a five minute time frame and just looking at it and okay did this and what is this candle then what is this candlestick what is this pattern i thought everything had to be a pattern and i was so locked in on what the market was doing on a five-minute time frame even a 15-minute time frame that my bias would you know sway you know 15 minutes and then come back down and come back up and come back down like my bias would switch because i'm looking and trying to trade on a 15-minute time frame and you guys got to keep in your mind which is what i realized is that the market is open 24 hours a day five days a week so no matter if you're bullish or bearish the market has to present candles in both directions so for example i can actually go right back to my notes for a second right and even delete all of this all right let me just delete all this and then go back to actually creating and look at this so if you're looking at the market and it's going up it's not going to just do this all day it's not like in this obviously this line for beginners is represented by a bunch of candles like the market is not going to just go straight up and then that's it it's going to go up and then down and then up and then down and then up and then down creating higher highs and higher lows or lower highs and lower lows in a downtrend just like you just see what it is on the chart it went down then it went up and then it went down so if it's a downtrend it'll go down a lot more then the retracement will come back up you know what i mean so we're looking at this understand the market has to present a bunch of candles to create the overall structure i still have to say just like i had in my notes people would look at a five minute time frame a 15 minute time frame and see this right here right they'll see this and price coming down and all of a sudden think it's a reversal because they saw one candlestick pattern that's like a shooting star you know what i mean right here and it's deleting again sorry guys but they'll see a shooting star right here and all of a sudden they're like oh price is going down and it's like no the market is reversing don't get too caught up in you know every single candlestick every single second that's one of the first rules that i have when it comes to my own trading that i had to realize over the course of years is do not get caught up in every single candlestick and i have a note in here that tells you exactly where i only look for candlesticks um but we'll get to that in a second um again next thing is for me looking at candlesticks in the middle of nowhere does absolutely nothing for me it's not necessary just like i said above price has to retrace so i mainly pay attention to candlesticks when it's near a psychological level or a trend line that is it i even have notes over here that says clear as day should be right here right here again i'm only looking for one thing when it comes to candlesticks seeing what it does on a major area a psychological level a trend line or fibonacci retracement for entries and exits that is it and people you know may wonder why it's because when you're looking at price in the middle of nowhere it's already made its move like you're just a little bit late to the party so for me if i if i look at the market and i see let's say for instance you know how i trade i trade in like levels psychological levels right if price is in the middle of those levels and it's already moving up or already moving down i'm not looking to enter i'm just going to wait until it gets to the levels and then i'm looking to enter and see what candlestick price will you know print on it so if i can go to my examples really quick i'm going to keep my face off just so i can show you guys an example really quick but if you look at this you know this is kind of in the middle of nowhere and like over here it's kind of the middle of nowhere like if i see price already moving that much and that far i'm not going to get in near what i mean because it's already moving all i'm looking for is a price it does at these levels like what is it doing at this psych level what is it doing at this psych level what is it doing at this psych level what is it doing at this psych level you know the mid-level you know what i mean like this is what i'm looking for overall when it comes to the market and seeing how it prints right so you can see right here price bullish engulfing right right on the psychological level and then it goes all the way up right same over here if i can delete that big line i just created price at this psychological level nice evening star no morningstar excuse me nice morning star right where does it do go all the way up right sam was over here what does price do tweezer bottom followed by a momentum candle and then where does it go all the way up right same it over here consolidation right and then price prints all the way out i would consider this more of a hammer but it does so and then it goes up so i'm looking for these actual patterns overall at these psychological levels i'm not looking at it in the middle of nowhere because if it's in the middle of nowhere that means it's already in the middle of a trend i'm not trying to get into the market during a trend candlestick patterns are a main confluence with me but in my opinion they're nothing without support and resistance support and resistance i've said this time and time again is the number one you know most important thing when it comes to you know technical analysis because it tells you exactly where price stopped in the past and where it can potentially stop in the future you know what i mean candlesticks don't necessarily tell you where it's going to stop it gives you the example of it stopping like it shows you the sign of a stopping because it'll print a shooting star at a resistance or a bullish engulfing at the bottom and again i just wanted to do the first two minutes for beginners but now right right now this is not necessarily for you know somebody who knows absolutely nothing about uh candlesticks i'm going to have more videos out here that break down exactly a shooting star and exactly a hammer and exactly a bullish engulfing um you know later on especially in the new academy um but right now the goal is to go through all of my notes for those who have been trading or at least reading upon the market even if they haven't placed the trade yet and understand you know candlesticks at uh its basic level um now when it comes to these psychological levels i don't care if it's a single double or triple candlestick formation you know how a single was like a hammer or a shooting star or even a doji right i'm not necessarily worried about that or if it's a tweezer bottom or tweezer top or bullish engulfing or a bearish engulfing or head and shoulders or inverted head and choke i'm not necessarily worried if it's a single double or triple candlestick formation if i see some type of formation printed on a psychological level or a trend line or a fibonacci retracement mixed with another type of confluence like a moving average crossover whatever type of indicator you guys use that's enough of a confirmation for me to get in period i only need three confirmations for me to get in and that's enough for me right there like a lot of guys will anticipate a evening star being created at the next resistance and it's like you can't anticipate that you can't all you can do is react to the market you can't just be like this is what's going to happen at this level you have to look at the overall grand scheme of things when it comes to candlesticks you can do that in terms of analysis like you can be like oh i think price is going to get to 1.40 and then reverse you can do that but you can't say i think price is going to get to 1.40 and it's going to present an evening star and then you can't do that because you may get a bearish engulfing and then just wait for that evening start to be created and it never creates and it just drops and you miss your entry so you can analyze where price may go in the future but candlesticks you have to literally see what candlestick is being created so keep that in your mind when it comes to candlesticks now candlesticks also give you the confirmation you're looking for pay attention to them because i like to find a confirmation on a higher time frame and the reason being is that it tells me where price is going to head you know for the next few weeks so if price is nearing a psychological level and it presents one form of a candlestick on a 15 minute time frame i'm not putting too much emphasis on it like unless it creates overall structures what i mean by that is when price is getting near a level and it's on a higher time frame like a one hour or two hour and i see a bearish engulfing out of resistance like a bearish engulfing and it's coming down that tells me exactly what price is going to do for the next few days and if i see that on a four hour or daily that's going to tell me what price is going to do for the next week or week and a half and it's just like i said in my other videos when it comes to fibonacci retracement and moving average and my entries i'm more of a trader who likes to know the grand scheme of things like what price is going to do for the next two weeks and then try to trade in that direction for those two weeks not necessarily that i'm gonna hold it for two weeks straight i can sometimes i do but that's not necessarily what i'm saying what i'm saying is if i know price is going up for the next two weeks because the weekly candles is showing that the next two or three weeks it's going to get to this level i'm going to only look for buys and if price is retracing that is only just counter trends for me to look for more entries that's it so keep that in your mind i don't want that to go over your head if i know price for the next four days week two weeks is going to this level like from 1.76 to 1.80 it's going to get there 400 pips it's not going to get 400 pips in a day or in two days and it's not going to get there straight you know it's not going to just get there straight up what it's going to do is go up 100 pips come down 40. go up 50 pips come down 20 go up 70 pips come down 30. and every time it does that come down 20 or comes down 40 or comes down 50 i'm not trading you know the retracement down i'm looking for you know to to get in on those kind of trends and how do we get in on those counter trends understanding candlesticks because when price is retracing and i have to go to my notes for a second um to kind of give you guys a clear example of what i'm talking about this is the last thing we just had on let me delete this and then let me put my face up here sorry this freaking tool that's on my desk using to fix uh something yesterday anyway if price is going right the price is right here right and you guys can't even see it cause my face is in the way but the price is right here and it's going up here right it's not just going to do this just like i said earlier what it's going to do and what you guys should understand and embrace instead of wondering why prices are tracing and think it's going against you it's probably gonna do this and this and this and this and this and this and this and then boom it's there and chances are these places i'm deleting it again there we go these places that are stopping at are usually psychological levels or the mid-level something of the sort so when it comes and retraces at these levels the reason candlesticks are important is because the psychological level is just holding it firm for us that's all it's doing it's holding it firm and saying it's not going to get you know lower than this anymore right it's not going to get lower than that anymore so now that we know price is actually rejecting this level what are we looking for we're looking for some type of bullish formation that tells us that price is going to head all the way back up if we get that some type of you know bullish engulfing or a hammer or evening a morning star i'm entering because we already have all the confirmations in the world we already know that price wants to get to this level and the reason we know that is because of our analysis of the market understand that the market is all you know perspective it's all opinion-based so there's no guarantee that it's gonna get to this level but using all the the confluences and all the things that we've learned in the past we can analyze and predict that price will get there that's all the market is the market is just speculating and i've said this time and time again nothing is a hundred percent guaranteed when it comes to this market not my strategy not your strategy not somebody else's strategy it's like nothing is a hundred percent guarantee all we're doing is speculating like yeah some traders may be better than other traders or like and you guys may think it's the overall strategy but it's not necessarily that it's more so than understanding the market understanding the cycles understanding the legs of the market understanding their psychology understanding the risk management associated with it all understanding the the fundamental announcements that's coming out and making sure you're not trading around those times because it can easily stop and wick you out it's understanding you know all of it but all we're doing is speculating and predicting where price is going to go based on what it did in the past so knowing that all we can do is be confident in our bias that's all we can do like there's nothing that's sure fire and that's one of the notes that it's probably like a life trading note like forget canvases for a second it's more like a life trading note is nothing is guaranteed in this market but if you have several confluences be confident in your trade period if you lose you lose but you you didn't just you know get in the trade for no reason you actually named and pinpointed four different reasons why the market is going to go up so in my opinion if you have three or four confluences every single time it's hard to just see that you're just going to lose 10 20 30 trades in a row when you're showing that it's calculated risk and it's not so much i'm just getting in for no reason so when if i can go back to my overall uh charts people may say oh is that enough for a reason for you to get in yes any type of you know this is why i keep the psychological levels on in my ma's on some time but any type of bullish candlestick formation at these levels i'm getting in same with over here any type that's strong enough and not on like a one minute time frame but that's strong enough i'm getting in semi's over here i'm getting in and i may lose some trades but i'm confident that i'll win more trades than i lose if i keep my overall discipline and my overall strategy which is if i see a bullish you know engulfing and a bullish engulfing obviously can be something along these lines right we may see something like you know price doing this actually let me do it a little bit lower right let's say this was the resistance level i'm going to show you guys in the charts uh in a second that's a resistance level right and price does this and it's a body and it comes down boom and it does this right here right and if i see this right price dude like since it closed down here remember i'm gonna actually get a blue one right it closed right here because it's a a red candlestick right so that means the next candlestick has to open right there let me just draw that back onto the eraser by accident there we go so it opens here right and it comes and looks down here but if i see this right this is ugly but who cares right on a uh key level like this i'm looking to get in period because chances are the ma has done crossed over it did this on a psychological level i i don't see price doing this and then opening right here and then coming all the way back down and i don't see that like you know what i mean like price is not going to and i want you guys to keep this in your mind as well and hopefully keep this in your notes price is not going to um do random things at random points in time everything is impactful and purposeful and for a reason like people who are trading and you guys should understand what the market is is people just buying or selling so if if you see this on this psychological level chances are a million other traders see the same thing and they're gonna try to force price you know higher and higher so it closed here it opens oh this is red sorry if i can make it green for a second it opens here maybe wait down here then it goes higher right boom and then it's the same thing right which again then it goes higher but it actually closes you know down here higher boom and then we start getting some you know closes here boom retracement right and then boom retracement and some guys may think guys are girls right they may think that oh price is reversing when it's not really it's just retracing here you can easily get a fibonacci level right fibonacci level whether it's you know 38.2 50 61 was actually opposite right this would be 38.2 this would be 50. this would be 61.8 and then it reverses and we're looking for the exact same thing going forward right the price is just retracing we're not we still are in our first trade but we're not looking to get out or get scared it's just simply retracing and then we start to see this right we got this candlestick and then we got this regular doji right nice little doji and then we got this exact candlestick right here over here and what is this a morning star right a red candlestick a doji and then a green candlestick that's kind of the same in length and now we're looking to get back in because we have a morning star at the 50 retracement level and chances are the amazing crossover we know the overall move the market is to get up here right so we're looking to get in and then price is the same thing boom body boom body boom and then it goes all the way to here you know so i want you guys to understand that that price has to retrace it's not just going to let me just uh show my face for a second just like i i said in my first overall role price is not just going to just drop all the way down and just drop all the unless it's some type of fundamental announcement like pushing it it's not just going to you know drop a thousand pips and make it as simple as that it's going to have some retracement and even if you see it on a daily time frame where price is dropped overall chances are if you're an intraday trader and you're on a 15 minute time frame that daily you know confirmation is 24 hours one candlestick on a 15 minute time frame is 15 minutes so you need four represented to represent an hour and then 24 i believe times for 20 40 60 80. so 96 basically you need 96 15-minute you know candlesticks to represent one daily candlestick so if i can just show that on the actual chart really quick and then i'm going to get to the actual overall trading view charts this is i want you guys to keep this in your mind how important this is overall right like i'm trying to break it down as simple as possible for you guys but there's just little notes and gems that i'm throwing out there that i need you guys to really keep in your mind and understand right if you know that sorry i'm bringing my ipad down if you know that 96 15 minute you know candles represent one daily candle right chances are those 96 15 minute candles are gonna be boom boom boom boom boom boom boom boom boom boom like some crazy stuff because that overall daily it's just going to look as simple as this whether it's green or red simple as that so keep that in your mind like when you look at a 15-minute you know candlestick and you see it moving around around don't be swayed by where price is heading or where the direction is going because overall it still has to create that structure for that four hour time frame or that daily time frame if that makes sense so just like i said in my notes um before i got into the examples i like to find the confirmation on the higher time frames because it tells me more of a story than the lower time frames can when it goes to the overall direction because once you know the overall direction it's easy to get in a few times on a 15-minute time frame or hourly time frame but just find the overall direction on a higher time frame don't find that on a lower time frame so if i can go to my overall charts if you look over here with aud usc you can see claire's day that we had a tweezer top right at point 80 right so understand that we didn't have that over here we didn't have a tweezer top right at you know 0.79 or even a tweeter top right at point 78 what the price do bulldoze right above it what the price do get there no type of candlestick whatsoever like these are not a pattern this is a pattern like a clear-cut pattern tweezer top like when two bodies are the exact same in a sense but just different you know colors you know one's bullish one's bearish or one's bearish one's bullish that's an actual candlestick formation so knowing that now we know that potentially price could be reversing at least 2.79 on the next psychological level um we wouldn't know it would get this far until we've seen this candlestick like you see how much of a shooting star this is and how much momentum this has we know if it has this much momentum and it's super close near a psychological level it's not just gonna stop right here like it's gonna bold those through but just to get in from point 80 to 0.79 this tweezer top is all we need for us to give us a sign for us to scale down to a 15-minute time frame right and look for structure there right go to point 80 and that tweet actually i gotta go back to the far to see exactly where the tweezer top uh stopped at it stopped at point seventy nine seven thirty right so if we go to the 15 minute time frame and we look for that right point seventy nine seven 730 which is around right here right so it's around right here so there's two ways you could have gotten in let me uh throw my ma's on for a second right you could have gotten in right here at that point 79 excuse me at that point 79 730 level which is a bearish engulfing on a 15-minute timeframe but the tweezer top overall came down created a lower high look at this lower high right this high is lower than that high so you got all the confluences in the world after you saw that tweezer top right you saw the tweezer uh top on the four hour time frame so you scaled down you see what happened for a price to create that exact squeeze or top oh prices gave us a bearish engulfing on a 15 minute time frame and then came down and created more structure created a lower high and then boom now we're here for the end of the tweet to top great it's okay to enter right into right here your stop loss is a few pips above here or even above here to be safe and guess where it goes it goes all the way 2.79 and that's when you can go back to the four-hour time frame to see overall what is price doing oh candlesticks gave us a shooting star boom call it out right if i can get a call out tool if i can get it call out to yeah right shooting star boom minimize take that out we have a shooting star right here right that's telling us that price how i trade when it comes to psychological levels is going to break past this .79 level and at least get to 0.78 like i i trade in terms of levels if you guys trade differently that's okay but what i want you guys to really focus on is pay attention wherever your support and resistance is you know at pay attention to what these candlesticks are printing near these levels like that's one of the biggest values and keys to this video what candlesticks are being printed near these psychological levels period end of story like i'm not looking for in the middle of nowhere i'm looking for it as a confirmation that price is going to reverse or it's more of a confirmation that it's going to continue once i get that confirmation which brings me to my next note you know what i mean it says that people who enter on a 15-minute time frame and that's okay but just make sure you have a bunch of confluences to go with that so for me i'm not looking on a 15-minute time frame right when price is at a psychological level because it's easy to get faked out you don't know that price is going to reverse there i need that confirmation on a two hour or a four hour time frame once i get that then i can scale down to a 15 minute time frame and see the structure being created try to find a candlestick pattern after that and i find it you know valuable and i can actually even uh write it down right here i find it valuable right to find a candlestick pattern on a higher time frame and then once i have that confirmation yes right that confirmation then head down to a lower time frame for an entry and for an entry we're looking for structure slash another candlestick formation and i just showed you guys that on this chart where you saw that you know on a four-hour time frame we got this um tweezer top so after that now we can scale down and look to see what price is doing and over here we clearly got that if you look way up here we got that um not shooting star bearish engulfing but price created structure when that tweezer top finished and ended and it's easy to get in it's easy to get in like do not have a two pip stop loss or a five pip stop loss not getting the stop losses you know later but that's not necessarily going to work because you know how mad you would be if you had a two pip stop loss let's say like let's say you entered right here right the moving average crossed over and you entered this little you know neckline of a cents right price got this low came up and it took it out and you're entered right here and your stop loss was like short position you entered right here all later here and your stop loss is like right here you're gonna get stopped out it's it's too close you have to give your your your trade some room to breach so a few people above here good enough or even above here for more breathing room great perfect whatever your risk reward ratio is you keep it like that you understand that but the the one thing that i can tell you guys that's valuable is when you see these candlestick patterns you know forming at these psychological levels make sure you are placing your stop loss correctly which is below an uptrend below where it printed or above where it printed on an uptrend um if i can go to uh let's go to gu right on ga instead of gu right so when price gets here at this 177 level this is why it helps to have these psychological levels printed on like this is why i i talk about psychological levels over and over and over again because it literally tells you it's the first time you need to know that price is going to reverse so knowing this when price came down look over here right price came down came up created lower high came down lower low so what is the first sign that we need to to see that price is going to reverse okay some potential type of movement right here right this is not enough this is enough right here why because this was structure right high you know low lower high lower low this just took out the last lower high right so that lower high is irrelevant now so we know that's no price is heading up but when prices get into this point 78 level kim's patterns right what is it doing boom bulldozes above it's a hammer this is a hammer candlestick pattern right look at this boom right here and then price scales up and now there's no guarantee that price is going to get from point seventy eight to a point uh not point seventy one point seventy eight to one point eighty one none at all so we're not gonna be like oh it's going we're gonna hold our trade for 300 pips we're not going to do that all i do is trade them levels so 0.78 to 0.79 just like i said in the last video what is price doing it's too strong to just get to 0.79 and stop so as i'm in this trade from that point 78 and it's getting to the next level of 0.79 if i see prices still forming and it's still getting stronger and stronger and stronger if i can just draw a rectangle around here just so i can clearly see it on that 15 minute time frame right let's go over look over here i can delete it we can see it clear as day that price is just getting stronger and stronger and just heading up and up and up and up and up this .79 level is around right here this does not look like it's flowing up anytime soon great we can we know that it's going to get you know higher to maybe that 500 level or the 1.80 level flat um but always uh understanding keeping your mind when it comes to candlesticks as well is that when price is near a new set of 10 digits like 1.70 1.80 1.90 or for aud usd like 0.70.80.90 those are a lot stronger and i'm going to show my face for a second they're a lot stronger than the 1.76 is the 1.77 of the world because they can get hit go up go down get hit go up and down when price gets to that new set of 10 digits be very aware of what the candlesticks would do near there so no ga we talk about 1.8 b a lot or gu 1.40 a lot because those are major levels that price is just not going to just barrel through like it's going to stop it's going to consolidate it's going to you know move around a little bit until it breaks above those levels you know what i mean so the next note is you can know all the candlesticks in the world if you inaccurately draw a trend line or don't have the correct levels on even though like they're all opinion based but you can really tell based on what price did in the past which is how all the buyers and sellers kind of know where to get in or where they you know take their money out at because they can look at the past and see where price you know hesitate or stop that overall if you you don't have it you know accurately drawn on you will be faked out by the candlestick being printed candlesticks have to be combined with other forms of technical analysis which is what i talked about throughout this video whether it's with psychological levels or moving averages or fibonacci retracement or trend line it has to be combined with all that overall you can't just not have a blank chart with no you i guess you can like everybody trades differently i just don't see it i i can't do it i literally can't like if i don't have support and resistance on and looking at the overall you know market and seeing where i went in the past and seeing where it's going to go in the future i can't really trade i can't put too much emphasis on these candlesticks like how do you know where price is going to reverse that if you don't have support and resistance you know drawn on there you know what i mean so candlesticks tell us exactly there's going to be a reversal there's going to be a continuation just like you saw with that g8 tray where there was a hammer right at a resistance level that tells us it's going way up to that next level but if you see a shooting star or a tweeter top just like we showed you on aud usd that tells us okay price is going to reverse candlesticks tell us exactly you know what's going to happen with these reversals but these psychological levels are literally halting price or it's giving us in a better prediction in the future that is going to go up meaning here it goes up all right we we know price is going to get to that next level now we're waiting for you know more structure to be created before we get in or structure was probably created when it broke through that level and we don't need for it to necessarily retest because it did it on a 15 minute time frame great now we're looking to enter now the next note is candlesticks are the first signs of price making a major move you know what i mean like these psychological levels will halt it and give us you know the overall picture once we see whatever bearish or bullish chemistry being you know printed it it gives us the first sign that it's going to be major now sometimes the can after the chemist forms you won't necessarily have an entry sometimes the candidates will be too small or there's just not an area for us to enter right there like sometimes just a heads up that price is about to head in that direction as immediately after it may retrace a little bit like after it created that you know bullish engulfing it may retrace a little bit before continuing with the overall move creating structure so let me just show you guys an example really quick one so with aud usd right this right here is a evening star right right at the mid level in the quarter level mid level of 0.77 500 you guys don't know what you know quarter levels are before i get to this example it's basically just every 250 pips so if i can bring my ipad down you guys can see one point ten zero zero zero right one point twelve five zero zero one point fifteen zero zero zero same with like you know a to ufc it's like point seventy right point seventy two [Music] right same thing blake griffin agrees to contract by out with the pistons interesting all right so delete this right so just to keep you guys uh in the loop so that point 77 level as you see right here delete delete delete you can see this is the the mid level for that quarter level over here right point 77 500 right so we get this evening star right here and then we get that confirmation going down but then price immediately retraces right so knowing that this is why it's important to see uh where price is doing overall first of all if you were to got in right here that's perfectly fine and i talked about this in my uh last two videos for the new academy where i talked about uh getting better entries right there's no such thing as an absolute perfect entry there's there's zero drawdown like all these traders out there telling you that they're they're all they're all liars like there may be an instance where you will get in and price immediately goes in your direction great but the reason we have an accurate stop-loss in a breathing room with stop-loss because we have to anticipate some form of drawdown happening right so if you were to get in right here because you saw this evening star right at point 77 500 right and you saw this confirmation candle right after that great that's perfectly fine as long as your stop loss has a breathing room if you got in right here and your stop loss was like right here guess what you got stopped out right after that and then price went in your direction and now you're contemplating you should be a trader or not because you just got stopped out and you had a two pip stop loss like you guys got to be realistic you can't have a five pip stop loss and then get wicked out every time and think oh the market is against me you had a five pip stop loss on gbp jpy like be more realistic you know what i mean so when you have this entry right here if you were to enter right here and price just goes up it's okay you can be confident enough that price is going to go in your direction which we talked about earlier you know being confident all we're doing is speculating have your stop loss up here right and the price wants to get up here and stop you out so be it we're going to keep the same discipline and trading plan over and over again which means if we see a candlestick formation on a psychological level i don't have my uh moving averages on here but all the confluences in the world we're going to take our chances and get in the trade um but if you wanted to wait right if you saw price get here but it goes up and you want it for to wait for this break of this original low right like you know how we talk about the break retest and continuation right price got down here created some type of low came up we're now waiting for it to break this low and it comes down you break it that's okay too like that's more of a conservative more relaxed way and more of a confirmation way that is perfectly fine too price goes down gives you a strong candlestick right this is not necessarily a pattern but it's still momentum where it has little wick and before i get to my overall point i want you guys to like the first thing i said in this video look at the overall body in comparison to the wick so back over here if i see a candlestick pattern and it's just like this right boom boom boom boom it has all of this type of body but the wick is like this and like this that means there's so much momentum when it comes to this candle this basically if you look at this overall in comparison to the body to the wicks how much percentage do you think it closed this is probably 97 all body momentum right if you saw this big wig boom boom boom big wig what do you think this is maybe 40 of the overall candlestick right look at it in terms of that right you see this type of candlestick right and it goes like this and they go like this boom boom and it goes like this this may be 60 of the overall move right so understand that the the less of a wick you see the more confirmation that it's going to go up same what this is why an evening star is so much of a confirmation that price is about to head down because what is the evening star we got a resistance level right here we got a wick and then we got nothing but you know a body just like we saw with you know aud usd um over here if i can uh show you guys really quick remember over here that shooting star right shooting star no wick down here but a wick up here right gotta wake up here i'm trying to zoom in as much as i possibly can can't really zoom in too much um but you can see over here there's a wick up here but no week down here that gives you all the momentum in the world tell you price is about to burst through this point 79 level and go right to the next level right so if i can get back to my overall point look at how big the weight is in comparison to the body so going back to this uh chart right you see how this candlestick right here if i can actually delete these over here right but you see this it barely has any wick i don't want to block it i want you guys to see this one right here right barely has any wits was telling us that price has the momentum going down we not only got a you know evening star on a psychological mid level right we got a lower high and then we got price broke through this little neckline right here right and then it gave us you know structure overall by showing us that this has all the momentum in the world when it comes to a candlestick price could have easily printed you know nothing right here it could have did like take away this for a second this candlestick right and just imagine if price just did a bunch of dojis right this is telling us that all right this level is just holding firm even though it's not you know necessarily a major level our major level is up here but it's saying this level's holding firm nope that's not what it did so all it did is you know consolidate for a few hours and then just broke right through and that breakthrough showed us that price is heading down this didn't break through distant breakthrough distance this did so pay attention to you know when price is breaking these you know levels and the reason i said that is because my last point that i just had was you know some they're the first signs of a major move pay attention to what i said early on just like i said with aud usd you know you saw that tweezer top right at a level you knew to get in you need to go to a 15 minute time frame and look for an entry to get in but when we go back to this over here right this evening star okay you could have gotten in right you could have gotten in right here but if you didn't price just retraced a little bit it's okay and then when it gives that confirmation going down get in get in get in get in get in get in like more times than not we take our chances we're confident in our trades and we go on from there now if you miss your entry just like i just showed you over there it's fine price has to create more structure anyway once it does that look to get in so that's basically the point i just brought up with aud usc if you didn't get in on this evening star at this psychological level or you know knowing this was the last red move it made so waiting for it to break that level right right it's okay just wait for more structure to get in right just wait just wait just wait just wait just wait a lot of times i see traders you know experience fomo which is obviously fear of missing out and they just jump into trade randomly price has to create structure so back to my original overall point where i said if price is in the middle of nowhere and it gives us no room to get in i'm not looking to get in i'm waiting for the next level so if you i can just delete this over here and give you guys an example look over here where could you have gotten in right where could you have gotten in right like price just went straight up within this you know 100 pip range price goes up it comes down and then goes up and then goes down but where could you have gotten in right here it's hard so that is what i mean where it's like in the middle of nowhere there's nowhere to get in but over here if you missed your entry luckily price gave us a lower high came down another lower high right any any candlesticks that are forming in the opposite direction is it is a way for us to get in so right here another type of lower high okay now we could potentially be looking to get in and scale to a 15 minute time frame and see if we see something look for the overall confirmation on the one hour whatever it may be but if you missed your entry it is perfectly fine like i'd rather you guys get in at the perfect time for you guys yourself not the perfect entry but the perfect time when you guys feel i'm confident i'm comfortable i have a lot of confluences i'm going to enter right now in the story let's see what happens as opposed to you getting a call from your man let me show you guys myself for a second you're getting the call from your mans or your girl like yo gdp usd just dropped 100 pips did it okay boom all right go get in all right sell boom all right hopefully i i can get some type of money out of that and it's like you just did the worst thing you possibly could do you got in when the move was already created if you had if somebody i told you that and then you looked at your phone and prices already dropped go back to my notes for a second really quick right and price had already dropped let me show my face really quick sorry guys and price already you know dropped no but the price dropped and you're looking at it and price already dropped and it starts to go up then it gives you more reasons but all right now i'm waiting for what some type of bearish candlestick pattern over here and then i'm waiting for it to drop below right that's more feasible than price is dropping you're like oh my getting right here price already dropped 100 pips what are you doing so it helps to understand what you know the overall moves are it helps to understand what your favorite candlestick patterns are when it comes to the market like i've been i've been you know looking at this market and being a part of it for the last few years and and i love it um so i do have my select and my favorite uh candlestick patterns that i necessarily look for um i actually just did a video about candlesticks in my academy um yesterday that i posted um so figure out what kind of state patterns you love um and go from there i only use the same 10 or 11. i just like i said just made that video in the academy i wrote it all down boom boom boom boom the same thing over and over again i know there's some candlestick you know books out there and articles that have like 100 and 150 different formations i don't use all that if you use more than what i do great if you use less great it all depends on what you like and what works for you overall now also keep in your mind a major candlestick pattern may not be prevalent on every psychological level like sometimes most times whatever it may be there will be some type of candlestick formation at a level but sometimes price just consolidates at that level and then slowly creates small candlesticks before one just you know bursts right through that consolidation level and that one burst is the the hammer or the shooting star or whatever it may be but when you when price is at a psychological level don't just assume it's just going to break immediately or just create some type of pattern immediately it may you know consolidate a little bit and then create that pattern so just make sure you're aware and make sure you're you're mindful and it doesn't mean if it's you know consolidating for five hours that all right i'm just gonna sit and wait for five hours a way i can combat this is by setting alerts at every single psychological level around me when i'm trading so when i get a text on my phone i'm able to open my phone or laptop and see where the next few candles are showing me so if i can go to back to just the examples for a second if this is a psychological level down here right if this is a psychological level down here and price gets down here i do have an alert let's say the alert is blue right right here so when price hits it i'm gonna get a text on my phone that says price is at let's say 0.77 right 0.77 so now i'm looking at my phone to see if i can get that type of bullish canvas information if i don't get that and i get a bunch of candles that's like this all right then i'm just going to create like a box around here let me actually make that box green no blue right create a box around here what i'm going to do is set a alert up here that says okay 0.77 100 text my phone text me whenever price breaks above because i know if price is breaking above this level consolidation is consolidation for a reason if you see consolidation all it's doing is up down up down up down up a little bit down up down up down that's all it's doing right so it's easy to create a box around it so that means i'm able to confidently uh put some type of alert up here because some type of structure or level is broken so when price is doing that and it gets like this and it's just consolidating if i can get right here over and over again down here right i'm going to place an alert so if price does break above in a bullish direction right some type of hammer some type of council information then it'll do the same thing it did was going to get down here text my phone so now i can look at the market again and see now we broke above consolidation now can price come down create a a higher low then go up and then we can get a trend line pop in like what can we do and you ha guys have to you know test things out see what your overall foundation is and see what works for you what works for me is putting an alert down here at the level to see immediately it's probably going to break below like that shooting star we saw in aud you know usd earlier if i can go back to it really quick you know i would have had an alert right here sorry guys right here you know right at this level then when it texted me i would have saw oh we got these you know tweezer top on the flower then a clear shooting star with barely no wick down here right near my .79 level all right i know it's going to break below this level and get to the next level but sometimes it'll get smaller candlesticks right and then just like it did over here it got smaller and smaller and smaller you know what i mean knowing that i would have had an alert that would tell me all right just wait to see if a candlestick you know can be presented right here what type of formation can be shown at this resistance level at this next support level if i don't see anything i'm going to get off my phone try to you know place an alert like 10 pips above or 10 pips below and then wait to see if they can hit it and if it does boom i'm on my phone and i can go from there so that is one way i combat looking at the market over and over and over and over again for a few hours i don't want to you know hurt my eyes and i think it's funny when a lot of people say you know if you're if you're a trader and you're trading how do you have time to make youtube videos or help other people and it's easy for me i don't think it's easier for somebody who's like trying to help somebody one-on-one or one-on-two it's harder in that sense um but in terms of a grand global scheme of things like youtube it's easy i can trade and when i'm not trading i can be on youtube like trading is not a thing where you're trading for two hours straight just looking at the market or five hours straight just looking at the market i'm placing my trade i'm putting my stop loss and i take profit and i'm walking away for those more intense traders they may be at the church for 10 hours straight and i have a life i'm not about to do that so my life is trading teaching basketball my wife and going from there um so and saying that that is the reason why i use alerts because i can't just look at the market 24 7 and just try to see what type of candlestick is being formed just like i said in my first overall rule there's going to be a lot of candlesticks that are going to be shown up and down up and down because they're on a daily time frame or four hour time frame they gotta make up all of it right there are just like i said in my first rule just like i said in my first rule there are a lot of candlesticks that are being you know printed on a 15-minute timeframe in a 30-minute timeframe in a five-minute time frame to make up the four-hour time frame or the daily time frame right you got to understand that so i'm not getting swayed by what it does on a five-minute timeframe or a 15-minute time frame you know what i mean so this is why i'm not staying at the charts 24 7. i'm looking for the confirmation on a two-hour or four-hour even one hour um to see the overall direction of what price was to do the next 24 hours the next 48 hours the next week the next two weeks next month and then i'm trading in that direction overall some of y'all may trade differently than me and that is okay keep that in your mind some of you guys like to trade as if it's a game and trade every 10 minutes and every 15 minutes and every 20 minutes i'm not like that i'm more of a i know what price is going to do for the next week you know trying to predict what it's going to do and i'm going to trade in that direction and some trades i may hold for a week straight some trades i may just because i know it's going to get there by the end of the week you know get in and in every single retracement just like i talked about in my getting better at entries video in my academy every single retracement scale in scale in no take profit partial profit get in get out get in get out like i would do that but it's in accordance with the overall trend which i found on a four-hour time frame now another thing to keep in your mind is for me the same level of importance you put on your entries i see everybody time and time again focus so much on entries and not anything else you have to have the same level of importance as your entries as your stop loss your take profit your risk reward ratio and the lot size you use because stop loss placements gets overlooked like everything has to be as important people let's say for instance i can put a psychology video out right and some people will watch it i can put a chart work video out like on the charts and it seems everybody wants to just watch that and it's like you guys have to understand that you can have all the chart work you want in the world if your psychology isn't right just like with candlesticks you know you can know all the candlestick patterns in the world if your psychological levels aren't placed on right it won't matter you can understand every single technical analysis tool in the world but if your psychology isn't on right if you're you know over leveraging if your risk to award ratio isn't what it should be it doesn't make sense in accordance with your overall trading plan you know what i mean if your stop loss is only two pips or five pips every time or you know if you have a stop loss over 10 pips you don't know how to trade because people are stupid they don't know what they're talking about right it doesn't matter how you know what your entries are because you can get some good entries over and every now and then but then it's going to be some point in time where you're over leveraging and then you use a way bigger lot size than you should have and then you blow your account or your risk toward ratio isn't one to three every single time so that means you have to win you know 80 of your trades you know what i mean or your stop loss is two pips every single time and then you get whipped out and then it goes in your favor but you're not in the trade because you got wicked out for having too tight of a stop loss so place importance on every single thing please this is important when it comes to entries and candlesticks and seeing overall what it does at these levels but everything else is just as important too so overall some of the gems and the keys i made for this video is that understand that on a 15 minute time frame or a five minute so many candlesticks are created to make a one hour time frame or two hour time frame or a four hour time frame so keep that in your mind don't let you know a five minute candlestick that goes up here and then goes down here and goes up here and then goes down here and don't let that sway you thinking it's going to go down it's going to go up it's going to go down relax for me it's important to look at the candlesticks on a higher time frame and then scale down for entries another thing to keep in your mind is that i'm only looking for these candlestick formations at these major areas a psychological level it's a trend line a fibonacci retracement those are you know of the utmost important to me in my experience i find that it only makes sense when price is bouncing off of those areas or breaking through those areas and i can combine that with some type of formation that seems to be um what works for me and again i don't necessarily care how well you know these candlestick patterns if you don't have you know everything in accordance with it like if you don't have you know the accurate levels drawn on it doesn't necessarily make sense because they are hand-in-hand they have to bounce off of something they don't just bounce randomly right if you just have a clear screen you just look at the charts it doesn't just bounce randomly it has to bounce off of some type of support or resistance level or break through if it's you know a continuation type of candlestick keep all this in your mind make sure you can test it out and back test it for yourself again these are my rules and what works for me may not work for you but you may also find out that what works for me most of it works for you or all of it just try it out test it for yourself see how these candlesticks react on these psychological levels see if you can you know analyze it on like somewhat of a higher time frame i don't care if you have a small account people use excuses all the time i only have a 300 account or a 500 account you know why should i be looking on an hourly timeframe because you're gonna get faked out over and over again by trying to trade on a small time frame you know finding an entry on a smaller time frame and trying to trade like actively only have a 15 minute you know time frame you know opening and trying to trade off of it are two different things and i found that you get wicked out a lot because you don't know the overall structure you're like oh price one of my favorite for 20 pip and then it just dropped all the way against me but then you look back on a four-hour time frame you see it was in a downtrend the whole time so keep that on your mind back test it try it out um i appreciate you guys for watching the video if you uh do want to see you know more videos like this that's this long but in great detail go to my academy www.swagacademy.com i told you guys in the beginning of this video i just released 10 videos just like this that the minimum time length is like 40 minutes like 42 an hour long where i'm just releasing you know everything and doing you know 90 to 100 videos and just putting it for this new academy that me and the developers are you know currently creating right now that should be created within the next few weeks the old content still deciding on if i want to archive it and keep it you know somewhere within the new academy or just get rid of it as a whole um i know these new 9200 videos if you like this video and you like the last moving average video and you like the fibonacci video on youtube you know before that you're going to love this new academy i'm trying to find a balance you know everything has been you know tried and tested over time shorter videos medium term videos but now a lot of people have been asking for longer videos and just in detail overall and with this new setup with austin not just sitting here for an hour long straight and everything is just done for me um it's a lot easier for me to create them so you guys will be excited for the new academy there's not going to be a sale right now like that was just for the one year anniversary so if you're interested www.swagacademy.com if not feel free to continue to watch my you know youtube videos um i'm not guaranteeing that i post youtube videos every single day or even every other day but i'm going to try to get content out when i can overall i appreciate you guys and as always dang

Channel: The Swag Academy

Views: 141,888

Rating: 4.9559541 out of 5

Keywords: forex, stock market, forex Swaggy c, the swag academy, forex the swag academy, forex market swaggy, forex market the swag academy, candlestick trading, swaggy, the swag academy candlestick trading

Id: dIhU-khdVYw

Length: 62min 4sec (3724 seconds)

Published: Sat Mar 06 2021