What Are Candlesticks & How To Read Them | FOREX 101

[Music] you may have asked yourself a one point or another when you were discovering Forex what are candlesticks candlesticks candlesticks so that is exactly what we will be discussing in today's video what are candlesticks what do they look like how to read them when it comes to Forex so if you're curious to know what candlesticks are in forex and how to read them on a Forex chart then keep watching what's up guys Kandace be here thank you so much for coming to my channel welcome back to my subscribers and my new ones do y'all like my space buns so I mentioned in my last video for you guys to let me know if you wanted me to make a video about what candlesticks are and I got quite a few responses requesting it so that is why we are making this video today we're gonna try to keep it simple we're gonna try to keep it short and sweet so let's get right into it so what my goal is in this video is to give you the basic information on what a candlestick is and the information that comes with that and you know how that really creates a story when it comes to price action when all of these candlesticks are put together and how it affects different timeframes as well now as a disclaimer of course I have to say this is how I personally interpret candlesticks so you know maybe other people might interpret it differently but this is my kind of explanation of how its interpreted and what it means so I hope that it can at least help one person maybe my way of explaining it can help somebody I've been getting pretty good feedback from my different videos just saying how the way I explain things is very straight for it is very helpful to beginners so I kind of want to stay on that path you know I wanna keep it real simple matter of fact go ahead and smash that like button if any of my videos have helped you in some way shape or form during your trading journey during your studying phase your researching phase about Forex definitely let me know by clicking that like button so there are a few different Forex candlesticks there is the bullish candlestick the bearish candlestick and the doji candlestick which is basically the indecision so if you kind of go back to remember when it comes to trends you know you have the uptrend the downtrend and the consolidation so you can kind of interpret a doji candlestick as like an indecisive candlestick a candlestick that doesn't know if it wants to be bullish or it wants to be bearish so really there are three type of candlesticks that you will encounter in different shapes literally in different shapes in different forms and so to break this down a bit more when we're interpreting candlesticks we have to think about the sequence so when it comes to a bullish candlestick you have the opening price you have the low of the candlestick so where price will kind of push down and tap and then you'll have the high of the candlestick so where price will end up leaving that low and moving up too and then you have the close of the candlestick and the clothes of a bullish candlestick is always above the open and that's what makes it bullish on the other side with a bearish candlestick you have the open you have the high where it tries to push up to you have the low where it pushes down to and then you have the close which is again below the open so bullish and bearish candlesticks are obviously opposite of each other but just kind of to get a visual we're going to look at some examples and we also want to of course take into consideration the different time frames so you have to also know that with every candlestick depending on the time from you're looking at the open will very end and the close as well so let's say for example the four-hour we're looking on the h4 time brain every four hours a new candlestick opens and so you have to keep that in mind that you know depending on the time zone you're in you have to know you know when the four hour will open and close that is what you'll see the candlestick will be four hours worth of information one candlestick will be four hours worth of information likewise with the one hour one candlestick will be one hour of information 30 minute one candlestick will be 30 minutes worth of information so every single time frame whenever you see the candlestick one candlestick it is relative to the time frame it is relative to okay what time from my honor from on the daily then that one candlestick is one day's worth of information so it's very obvious that if looking at a higher time frame then that candlestick that one candlestick that you see has so much information in it because it's over one day it's over 24 hours so when you go down to the lower timeframes that's when you'll see more information and so of course if you know for all those people who are good at math for one hour candlesticks will equal one for our candlestick stuff like that so we have to get a visual so I know I'm getting into a good be patient all right so let's look at a chart right now so let's look at this candle right here so we're on the 4:00 hour and we're looking at gold and as you can see I personally have designed my charts to have green candlesticks or bullish candle sticks and red for bearish candlestick so I feel like that kind of helps we know that it's bullish so we know that either way when we're looking at it you know that it's gone up so right away that gives the impression that this is the open this is where price opened at what time is that that's January 5th 2025 p.m. Eastern Time so price had opened here and as if you can see this little little finger so there's a little little you know a little little wick price push down a little bit then it shot right up and so this is the low right under so you really have to kind of zoom in and see that price opened it did create a low it did not just kind of start from here it created a little low and then it pushed up and this is where the high happen so when it comes to wicks and this wicks of course are a part of candlesticks whenever you see these long little thin lines that is a wick so that is where price has attempted and it kind of helps because when you see a lake you know it's either a a high or a low that was created so it's pretty informative in this case price went up created this high and then it wasn't able to sustain this high level of price so what it did was it came back down it rejected and it closed but as you can see it was still quite above the open so that makes it a bullish candle because the close is above the open like I mentioned and then of course we get that confirmation because it's a green candlestick we know that it's bullish we know that price is pushing up so let's look at another example I actually kind of want to find a doji but I probably won't be able to so let's look at this candlestick right here this cute little one right here thank you so this is December 4 December 24th 2019 Christmas Eve 1:00 a.m. in the morning and so again we already know it's a green candlestick so we know it's a bullish so we're going to be looking at this as the open price pushdown tested this area a little bit and then it pushed up tested this as the high and then it closed above the open so it is foolish so this is informative because if we're comparing it to the last candlestick you know that last candlestick was huge it you it's safe to say that journey not for our time price was very bullish and it knew the direction that I wanted to go whereas in this case you know it could could be a different a few different factors of course you have to think of volatility I mean this is Christmas Eve so the markets are very very very slow it's a holiday and so price is not going to move as dramatic as much as the other candlestick so that's why the body is quite small and that really gives you information that you know what there is not that much volatility in the market right now and another thing I want to point out is that it's very important to wait for a candle to close in my opinion I think that that's very important because what seems like a metaphor so when we're thinking of price let's say we're we're reading a book it can be kind of compared to reading a book so you're reading this book you know it started off pretty good and then you're kind of reading and then it gets to this point which is like hmm I don't really like this book like that's not this is not what this is not a really good story so that's kind of the low of the book and then you say you know let me just keep reading let me see if it's gonna get better so you're reading you're reading and reading and oh my god it gets a climate and you're just like whoa this is amazing so that could be interpreted as like the high of the candlestick so it's the high of the book and then you know you keep reading cuz see now you're really intrigued and then it kind of gets a bit semi dramatic you're just like this is not as soon as I can as the as the you know the climax and then it closes you finished the book it ends and even though it ended better than it started it did not and as high as the climax but it didn't and as low as the down part the the fat part of it I don't know if that was you getting metaphor like now that I'm thinking of it like I don't know if my explanation right my explanation sometimes are very very but yeah if you think of it at the book there's a four-part you know there's when it comes to a bullish candle there's the beginning there's the low there's the high and then there's the closing years like okay whatever you know it's it's a book so that's how we can kind of look at this candlestick is like you know there's four components there are really so many different types of candlesticks forming as you can see even if let's say we go down to the one hour um and we look okay where's my chart yep and we look at you know the different types of candlesticks on the the one hour there's a lot more going on so as you go down to the top the lower timeframes let's took the 30 minute you will see you know more and more information you'll see smaller candlesticks because of the fact that all these candlesticks are creating a story that kind of accumulate and add up when you look at the higher time right so 30 minutes is pretty quick so of course price is not gonna have too much time to really form a huge story a huge information on you know what it is doing so each candle so you kind of have to start adding it up okay this one this one this one okay - da da da so really in my opinion of course a higher time frames give more information about what price wants to do and like I said waiting for the close of the candlestick especially on the higher time frame will be so helpful because it really really will show you the direction of what price wants to do is prices you know really overall motive so yeah just keep that in mind that that's really how we can interpret a bullet a bullish candlestick so yeah I hope that that kind of showed you what a bullish candlestick means how its interpreted it's pretty simple but it's kind of complicated if you're just kind of starting on your looking at it it takes some practice to actually look at a chart and figure out what the candlestick is doing yeah let's look at a few bearish candlestick so we're just gonna see what's in front of us we're gonna take what's in front of us let's look at this candle right here so we have this this cute candlestick you know it's red so we know that it is been so when it comes to bearish candle sticks if you remember what I said at the beginning of the video the clothes is lower than the open and that's what makes it marriage so we're gonna obviously know that this is the open and as you can see there's a little bit of a wick there's a little line so price did push up a little bit maybe it had a bit of courage to think you know what I'm gonna push up but then boom it dropped it completely dropped and it created this low and once that low was created it pushed up within that four hours and at the final minutes of that for our it closed there's quite a bit probably happened within this four hour time frame but it's safe to say really that price had not much desire to push up it it really it did kind of want to at first a little bit but clearly when even when you're just comparing you know the body of the candlestick and seeing how large the candlestick is and how large the floor is to get this lower which is you know price really was bearish price really had that intent to push down and then of course when you were wanting to look at how to analyze you're looking at the candlesticks before I did stuff like that but you know we can maybe do that in another video I just really want to explain how candlesticks look like what they look like and whatnot and how to interpret them so let's look at another one again I just want to show kind of like more of a smaller so this actually can be considered a doji so with a doji like I was saying you know the open and the low are usually the same but a doji can also have a small small body so in this case it looks like the low and the high are very close to each other but they are not exactly on top of each other so that being said you can see the color of the candle you can still see the business a bearish candlestick so that's pretty interesting to keep in mind as well so yeah you can see that you know price had opened up here it went up then boom it pushed down and then it closed pretty similar to where it open this is still definitely considered an indecisive candlestick because we can't really gather much information from that body in terms of where price wants to go so if you ever see a candlestick like this kind of in the middle of price action you know not talking about at the top of the zone or top of the trend raised like that just randomly in the middle of a in just the middle of a chart how I interpret that as you know is indecision let me not let me not enter the trade let me wait and see what the next candlestick might show or the next few candlesticks might show depending on the timeframe so of course if something like this is forming on a higher time frame then you can really really know and understand that price definitely know what it wants to do and it's gonna be a bit of a way you gotta be patient you might have to sit on your hands and wait to see what the next candlestick does and how the next candlestick opens and closes yeah again just many different kinds of candlesticks and then of course going down to the lower timeframes let's even look at the 15 these are way smaller candlesticks it's a lot quicker here when it comes to precedence every 15 minutes every 15 minutes of counts tickets for me every 15 minutes obviously if you're looking at for can four 15-minute candlesticks without 15 3:45 an hour so four 15-minute candlesticks equals 1 one-hour candlestick so let me see if this lecture you work let me let me try to circle it and see so if we're looking at from I want to see from 11 o'clock ok so this is 11 o'clock I want to circle from eleven to twelve I didn't see if when I go to the 1-hour if this will actually show oh I gotta find it yeah so right where I circled it literally is this whole one-hour candlestick so that's kind of cool you know what I would actually suggest to you guys to do is to have some fun with this go through different handles go through different time frames circle the topic handles and then go to the higher time frame and see how this clump of candles created a story on the higher time frame so and you can do this in any time zone whatever the case may be just know which time zone you're in and how it relates to the forex market because it is GMT that the forex market rents on so just go through it and just practice just practice looking at the candle what does it mean where's the high where's the lower so open where's the closed how many of these candlesticks equals this candlestick how many of these you know one our channel sixties was a four-hour how many for our panel six equal daily and just go from there and honestly if you just do that like thing once a day for an hour a day you will man you will be able to just be able to look at the chart and know exactly what is going on it'll help you so much in your analysis and it'll help you to not have to use different things because you're just looking at price action price action is the best thing that can tell you what's going on because it's price action it's telling you what it wants to tell you it this is giving you the answer so you want to be able to look at it see what story it's creating and see how to interpret it in order to know what price wants to do ideally and then from there you create your analysis okay if this candlestick when it opens and closes if this does this that I'm going to take a seller I'm gonna take a flyer I'm gonna wait you can start to form your plant and honestly that is the the least stressful way to trade because you're planning you are analyzing the story and you are planning your strategy around it you are planning different outcomes because again Forex is a probability game and then that will help you form your risk instrument will help you form your reward where you want to add to the trade etc so it is honestly a beautiful thing I love candlesticks and this is really for x101 candlesticks is the basic of the basic if you do not know what a candlestick is you should not be trading Forex you should be stopping you should be learning what candlesticks are and what they mean and going from there if you don't know what count sticks are let me just say this again you should not be trading you have to learn what they are first and then go from there ok guys ok so just make sure you are taking the time to learn the basic I get a lot of questions lately about you know how can I start training how how can I do what have you done but it's like if I were to ask them do you know what a candlestick is and this is no shade no anything I'm just saying take the time don't rush please do not rush the process of learning for axis is a long-term game guys this is not something that you can just pick up and start doing and expecting thousands of dollars because right now your current situation is that you're struggling you just need money now this is not the thing for you let me repeat Forex is not a get-rich-quick scheme this takes work this takes time to six hours and hours and hours of studying and getting your mind your eyes accustomed to what price is showing you and before you know it one day you'll be able to look at try and be like I know what's going on I I at least can form a story I can form a sequence that will help me in my analysis so once you get that feeling it's like it's such a satisfying feeling because then you know that what you have been doing all this time all this studying is going to start paying off now and then you can go to the next step so yeah guys there you have it I hope this explained it a bit better I've been telling people that I'm really not a teacher and no I do not mentor for those people who keep asking me if I metronome I don't measure if I'm not a might work if you like sometimes when I try to explain things it's a little bit awkward but again please let me know because think of this video I hope that it was helpful in some way you know leave some comments down below if you have any questions about what I explain I will try to clarify because of course everyone kind of interpret things differently so if I'm thinking of this is this makes sense you know you might not think it makes sense so please ask questions let me know I will do my best to answer them well and again I like this video if you liked it and you what's the information I'd really appreciate if you like this video it means a lot to me and last but not least I would really appreciate you guys if you subscribed you know if you stayed a little while stayed a little while you know you want to you know you want to stay you know you want to say to just stay with me please just stay let me know what type of videos you guys want to see next is well I have a few suggestions that I've been given and of course I have you know my list of videos that I plan to be doing so bear with me and thank you in advance for your patience and for your loving for your support and even if there's negative comments thank you cuz I don't get baby booboo I don't get paid I love you still the thing you guys forgetting so much for watching I love you all so much and I will definitely see you in the next video very soon [Music]

Channel: Candice B

Views: 36,858

Keywords: Forex, Forex Trader, Female Forex Trader, Forex Candlesticks, Japanese Candlestick Chart, Forex Charts, Bullish Candlestick, Bearish Candlestick, Doji Candlestick, How To Trade Forex, Forex 101, Naked Forex, Forex Psychology, How To Learn Forex, Why Trade Forex, Forex Journey, How To Start Forex, How To Make Money, How To Make Money In Forex, Make Money Fast, Forex Money, Easy Money, Fast Money, Risk Management, Work From Home, Make Money Online, Entrepreneur

Id: FOhR9y8USyY

Length: 22min 48sec (1368 seconds)

Published: Sun Jan 12 2020