The ONLY Candlestick guide Beginners NEED

these are candlesticks this is the body of the candle and the skinnier parts are known as the wicks for bullish candles this candle starts with an open and then will most times move lower to form the low Wick raise back up to form a high Wick and then close out once the timer for this candle has ended for bearish candles it's the complete opposite it starts with an open and then will most times move higher to form a highwick lower back down to form a lock and then close out once the timer for this candle has ended for both candles wherever the price was last that is where the price will form as a Trader who started 6 months ago candlesticks were the very first things I learned I saw videos like this all over the Internet promising that I could make boatloads of money if I memorized a few patterns like the three soldiers shooting stars and hammers obviously without any concept context this is far from the truth but with context yes you can I'm going to show you exactly what I learned through my six months of trading experience as a beginner at first I'd look at the charts and spot a bunch of patterns I'd see one here I'd see one there but they didn't mean anything because I did not understand what the market was trying to tell me and obviously no one will be the Professor Xavier in any type of Market but you can kind of understand what it wants to do the more experience you gain by analyzing charts for a long time I didn't understand well that is until I learned very basic Market structure rules these rules say this if price is in an uptrend with consistently higher highs and higher lows the trend channel line at the bottom cannot be broken if it does break we need to allow for the short-term correction to play out out by allowing it to have a break within itself then it will make a new extreme which would be a new low and after that I can expect the price to make a new extreme for the uptrend getting a new swing high that breaks the previous one during this process of getting a new extreme High I will be looking for entries with Juicy signal bars like the ones you see on your screen even though These Bars don't 100% guarantee that I am correct the probability of price moving higher after these nice signal bars are high one thing that I learned is that for me to qualify this as a high probability entry I will need this Bar's low to break the recent candle lows the low that I am talking about is the low of the candle wicks and not the low of the swings if I just get into any Nic looking bullish bar I can run the risk of getting stopped out since I trade with tight stops most times if I am patient price will move in my favor but if the correction is so strong that it drives the price down my bias may change to short positions that is what my experience has taught me about uptrends but let's flip the script and talk about downtrends if price is in a downtrend with consistently lower lows and lower highs the trend channel line at the top cannot be broken if it does break I need to allow for the short-term correction to play out by allowing it to have a break within itself then it will make a new extreme which would be a new high after that I can expect the price to make a new extreme for the downtrend getting a new swing low that breaks the previous one the same rules apply here during this process of getting a new extreme low I will be looking for entries with Juicy signal bars even though These Bars don't 100 % guarantee that I am correct the probability of price moving lower after these nice signal bars are high when I enter a trade I need to make sure that the candle's highs break the previous candle highs so I don't get stopped out this gives me extra confidence that price will no longer work higher the high that I am talking about is the high of the candle wick and not the high of the swings now for all the copycats out there this is my own strategy and understanding of Market structure that I learned through watching videos from Thomas Wade who is an amazing teacher in my opinion if you guys follow a similar strategy I would love to hear about it down below in the comments this is what I've grown to like and I'm curious about what you guys use and how candlesticks play a factor in your strategy but wait a second do not go anywhere because we're not done yet you see candlesticks are easy to read and you will learn how to react to price quickly as I have over the past months I I have not found the need to memorize Candlestick patterns because as long as I understand what the market is trying to do not what I want it to do I will be right most times I kid you not most of my problems are psychological of me being afraid to even put the trigger on trades but that's a topic for a different video when we start to over complicate things with pattern filters over our trading we may miss out on a lot of opportunities which is why I do not follow specific patterns I follow follow individual candle signals so to get into a short I need to see a red bar shaped like these to get into a buy I need to see a green bar shaped like these this way is very simple and effective for my strategy but the only way you will learn the best approach for your own strategy is to go into your software's playback system and analyze the charts for yourself you need to watch how the candles form around what you think are A+ setups and document what you notice I love how Nick sha speaks about trading there are only two outcomes you're either going to win or lose so just keep it simple and make a decision if you're right then great if you're wrong then all good just move on to the next trade candlesticks are the easiest concept when it comes to trading so just watch your charts see how candles form and you'll most likely never watch another video about this topic again for those of you who are wondering here are all my trades I took in the second week of January it wasn't pretty but we still came out green at the end of the week now if you really enjoyed this video I highly recommend watching this video next because I'm just that entertaining I'm just playing with you guys but thank you guys for watching and I'll see you in the next video

Channel: Mr.SondoFinance

Views: 66,814

Keywords: candlestick trading, day trading, finance, millionaire trader, trading for beginners

Id: nocvusdqnOs

Length: 6min 49sec (409 seconds)

Published: Wed Jan 17 2024