Press "Enter" to skip to content

The Ultimate Candlestick Patterns Trading Course

Hey hey what’s up my friend so welcome to the ultimate candlestick pattern trading costs right in this course right you’ll learn how to identify high probability trading setups so you can profit in boo and bear markets now some of you might be thinking right I’m new to trading right would this help me I have no idea about candlestick patterns I don’t know technical analysis don’t worry right because in this course right I’ll walk you through step by step from A to Z right on how to treat candlestick patterns even if you have no trading experience and by the end of this session right I can assure you that you will be able to treat candlestick patterns like a pro sounds good then let’s begin so now the first thing right to get started is what is a candlestick pattern okay so a candlestick pattern is essentially a method right of reading a price chart it originated back in Japan right that’s the history and the key component of a candlestick chart is that it shows you four things it shows you the opening price the price the high of the session the low of the session and the closing price okay so when I use the term session or it can mean different things right if you’re looking at Candlestick charts on a daily timeframe it means the high of the day if you’re looking at Candlestick charts on the one-hour time frame it means the high of the one-hour session okay so it can mean different things depending on the timeframe you’re looking at we will cover that in more details later so now how do you read a candlestick pattern or how do you read a candlestick chart so remember there are only four things the open the high the low and the close so looking at this right you can see that the candles are usually typically two colors either you know green red or perhaps can be black white right sometimes you can even no change the color if you want but generally the most common color is green and red so when you see a green candlestick pattern right it means that the price has closed higher for the session so you can see that this is the opening price at this this line over here this is the opening price this is the closing price and when you see this black shadow over here we call this a wick right this is the upper wick this is the highest of the session and this over here is the lows of the session all right this at this point over here so likewise right on the other hand the rate Calabar the bearish bar the open is at the opposite side the open now is on top right over here the open and the close is at a bottom and the lowest of the session is here over here and the highest of the session is here so the main difference between a bearish bar and a bullish bar is that the open and closed already opposite side for a bullish bar it means the prices closed higher for the session the open is always below the closed for a bearish bar it means that the price has closed lower for the session and the open has to be above the closed okay so now let’s try to understand know this candlestick patterns in more depth so first thing right you’ll notice that is that candlestick patterns there are two main component to it right one is what we call the body this portion here is the body right in this green area and this black shadow thing is what we call the wick right so the body pretty much tells you right who’s in control so in this case you can see that the buyer is the opening prices over here and the buyers push price up all the way up higher and finally closing in this highs of the session however you can neglect this a shadow as well because what it’s telling you is that there is price rejection there is you know rejection of higher prices because if you think about this right this was once the highest of the session so what this tells you is that at one point in time the sellers actually pushed a price from this highs down lower right until it price closed over here all right until it closed over here so if you think about this right this is actually a form of price rejection right rejection of higher prices so there are two components to a candlestick pattern the body and the week the third thing that I want you to know is this right where did the or rather what is the size of the body relative to the week because you can see over here again you have just a wick and the body but this time around the message is completely different right if you look at this candlestick pattern over here it shows that yes the price did close higher the price open here at this level and it closed over here right is the close this is the open however if you look at the week notice the price rejection because at one point in time right the highest of the session is over here at this point and the only way for the price to actually close at this level is that a price right has to come all the way down from the highs and then finally closing and this this level so what does this tell you it tells you that yes right the bias did push the price up slightly higher for the session but there was an immense amount of selling pressure a strong price rejection right that actually pushed the price lower during the session so you can see that over here this isn’t a very bullish pattern in fact it’s quite bearish as it shows you that the immense selling pressure by the sellers okay so you also want you to pay attention to actually these three things number one is the body number two is the week and number three is the body relative to the week right the size of the body relative to the week usually if the wick is much longer than the body it is a sign of price rejection okay so this is a how you read candlestick patterns just three components the body the wick and the body relative to the wick so moving on right let’s look at a few variations right to Candlestick patterns so the first one I think is something that you are probably you know familiar with the price actually opened here open then it closed this is the highs this is the lows of the session this is a closer I quickly see then in terms of the meaning behind it you can see it’s quite straight forward the price open near the lows it tried to reach come down lower but rejected then you finally close near the highs at one point in time I was actually at this level over here meaning the buys way this level at one point in time and the sellers came in push price slightly lower and finally closing near the high so it’s a sign of strength how about this candle you can see that a price open here and it closed over here so when the market just opened right possibly what happened is that a price came down lower the sellers were in control then a bias to charge and push push press all the way back up higher back towards this heist and then finally the sellers came back in him and you know the market closed at this price level so generally the meaning behind me is that there is you know indecision in the markets both buyers and sellers are present right and the Mucky just inched slightly up higher so if you ask me generally this is what we call an indecision pattern and if you look at this last candlestick pattern try the price open here market came down all the way down lower sellers are in control then the bias took charge and reverse back and finally closing near the highs so the meaning of this pattern is rejection of lower prices the buyers are clearly in control okay moving on right just the opposite variation this one I think I don’t need as much to go through it’s just the opposite to what we have just shared earlier okay this is instead that this is the selling version of it so now let’s do a quick recap shall we a candlestick chatter it shows you who’s in control all right remember I said pay attention to the body the wig and the body relative to the week that is important as well right because if you can have a bullish close button if you’re wick is much longer than the body right it’s still a sign of price rejection okay so moving on candlesticks on different time frames so earlier right if you recall I say that candlestick chart can appear on different time frames daily one-hour whatsoever and if you look at this right this is a candlestick chart on the 16 minutes time frame right which is the one hour so you can see that this means that every hour one of this bar will be painted right every hour this bar be painted one hour despise painted one hour later this bar is painted one hour later this bar is painter so a bar is printed on the screen every one hour and if you look at this one over here this is the daily time frame okay see this over here one sorry 1d right means daily right this means that every single bar is printed after a day so here’s a Monday there’ll be a bar Tuesday there is one bar Wednesday there is one bar and etc so this is how candlestick patterns right can form on the different time frames so now on walk you through something what we call combining candlestick patterns because candlestick patterns they are essentially just show you the price of the different sessions and if you think about this right this can be combined right for example let me share with you right if you look at this I just imagined and let’s say this is a one hour candle right the green one is one hour rate one is one hour so now when you combine these two candlestick pattern this one over here Oh what time frame is this candle gonna be well one hour plus one hour this will be a two hour kendo all right and how did this to our candle come about very simple right a two hour candle simply means right it I didn’t if I was the high over the last two hours what is the low over the last two hours the opening price of the first hour and a closing price right at the second hour simple so if you look at this right this is essentially the open this is the closed this is the highest let’s call the H and this is the lows right let’s call it L so you can see that where did we get the open from we get the open from the first candle because this is the first candle the first hour of the two hours so this is the open so this is why we have the open over here now where is the high the high is simply the highest point between these two candles so in this case the highs between these two candles is pretty much the same so this is the highest what about the lows the loss is essentially the lowest point between these two candles between these two one-hour candles and the lower the low is actually this over here which got this dis and where is the close well the close is essentially the close of the second candle which is this one over here this candle close at this price level and that’s why you got this close so when you combine these two candles this one plus this one you gotta get this bearish looking price rejection on your chart does it make sense okay let’s look at some real examples so if you look at this chat right this is the chart of the one hour time frame okay just pay attention I want you to pay attention to this two areas right these two candle this one this one and this one this one briefly visualized in your head right at hey let’s say I’m gonna move to a two hour time frame right now how will these patterns change so let me give you five seconds to can I know work on your visualization one two three four five all right so let’s have a look so you saw those two patterns earlier it pretty much is reflected like this on a two hour time frame can you see what happened the two 1-hour candles are simply combined to form the pattern and you are seeing right now okay let me just go back a little bit so you can see right this one over here this one plus this one and this one plus this one so what happens is you get this candlestick pattern over here and this candlestick pattern over here all right so let’s just to walk you through why is this green color because the second candle did close higher above the first so if you look at it this second candle over here it it closed higher above this one over here so that’s why you got a bullish bullish close okay and similar for this right this candle it closed right but it didn’t exceed the open of this candle so that’s why it’s still red on the two hour time frame as you can see over here and over here okay so by now I hope you can understand how candlestick patterns can be combined so this is very useful right when you’re looking at a price chart let’s say the one-hour time frame and you can you can’t make sense out of it right so you’re gonna see clearly what you can do is go on to a two hour time frame and things might be different or you might get a clearer view of what’s happening similarly if you’re on a four hour time frame you can make sense out of it go up to the eight hour time frame and things might be clearer for you okay so this is the so-called usefulness right off combining candlestick pattern second I know just understanding what’s going on on the big picture so now how not to trick candlestick patterns right so like no you’re not we candlestick patterns even not to combine them how do you not treat candlestick patterns because this is a mistake right I see many new traders make because you know as I’ve said right earlier you recall that I see there if the candle is green it means bullish if the candle is red it means bearish right the price is close lower so what traders would do is that you look at a chart and they find a series of green candles and it go long for example they see over here what many candles green over here bullish bullish let me buy it so bullish to go along and bam MA reverse similarly ready look at the chat oh it’s so Barry’s right Rick and little Rick and the brainless aids you know selling a cellar sign control I should go along bum market reverse right or if they look at you know this green kennel oh you know rejection of a rejection of lower prices this Kendall right let me go long Pam mark in Reverse what’s going on right why why is that so so I’ll explain why surely but first right how the message I’m trying to bring over here is that you don’t want to treat candlestick patterns in isolation what is isolation it means right you know what a trick candlestick patterns by in itself just because the candlestick is green it doesn’t mean you go long just because it’s great doesn’t mean you go short that’s what I mean by isolation so don’t treat candlestick patterns in this manner okay so just a quick recap right Candlestick charts it can be combined as I’ve shared with you earlier and also you don’t want a trick candlestick patterns in isolation so now you might be wondering okay Rana so how should I treat candlestick patterns right so let’s talk about that so how should you treat candlestick patterns I would like to introduce to you something what I call the K framework the Taytay framework all right so what is Tay Tay stands for Train right is area of value and E stands for entry trigger okay so when you want to trick candlestick patterns right remember these three things the trend the area of value and the entry trigger so now before I can you know dive into this framework and this methodology right I need to explain to you what is entry trigger okay so to do so right I would say candlestick patterns are very useful and powerful entry trigger into a tray so before we can go into this framework right let me share with you right five powerful five powerful candlestick patterns right that can serve as an entry trigger and once we’ve learned that right we can look at this framework and see how we can actually find high probability trading setups in the market okay so moving on the first candlestick pattern that I want you to know is the engulfing so the engulfing pattern right this is the so called the theory behind it right so you can see that this green candle over here is what we call the bullish engulfing pattern why is that because if you look at it right the body of the green candle which is here from here in the open and the close it has engulfed the body of the previous candle so this is the previous candle let’s call it number one and it’s number two right you can see that the engulfing candle bullish engulfing candle has actually covered the entire body of the first candle so this is why we call it the bullish engulfing pattern because the meaning behind it is that if you look at the charts right first candle sellers are in control the open over here and it close near the loose on a second candle the buyers are somehow on steroids I pump the ready on steroids ready open near the lows and you finally push price up all the way up near the highs over here they are freakin on steroids right this is open and this is the closed so this is a sign of strength right let’s see it shows you that the bias have reversed all the selling pressure and more so this is why it’s called a bullish engulfing pattern right firstly engulfed the body of the previous candle and it’s a sign of strength as a bias have pushed price higher and even closing above the highs of the previous candle the other pattern is what we call the bearish engulfing patterns just the opposite right you can see that the first kind over here is bullish bias are in control open here and closing near the highs but a mix candle sell us to Chechens smash the price lower right they open near the highs as well but they took charge and finally push price lower and closing near the lows over here so this is a bearish engulfing pattern telling you know what sellers are in control okay so this is the first pattern I want to share with you the engulfing pattern and it’s very useful to identify no market reversals the next one hammer and shooting star all right so let’s have a look at the hammer so the hammer is something that you might be familiar with because you saw earlier right be earlier examples so the hammer is a bullish reversal because it’s actually showing you price rejection in the market in fact it’s rejection of lower prices if you look at this right the price open here and at one point in time when the sellers were actually in control push price lower near the lows of this session near the lows of this session and then the bias came in to just hey hey this is enough man I’m coming in right they push price all the way up higher and finally closing near the highs right so this is a sign of strength right rejection of lower prices so this is what a hammer means on the other hand right the shooting star is just the opposite right it’s showing you rejection of higher prices if you look at this right the price open here bias took Church push the price up higher but then hey you know sellers suddenly came in and push the price down maybe you know detainment it prices too high you know it can’t go any higher this cell they shot the market and a market collapse lower finally closing near the lows so this is a rejection of higher prices right these two patterns again all right are you try to help you identify market reversals dragonfly and a gravestone doji right sounds a handful but really dependent is very similar to the hammer and shooting star the only difference right is that now this doji doji simply means right a indecision in the markets but for dragonfly and gravestone doji it’s a sign of price rejection because if you look at it right it’s actually very similar to the hammer and shooting started you’ve seen earlier right let me just go back a little bit hammer shooting star dragonfly doji gravestone doji so now let me ask you what is the difference between the hammer and shooting star and the Dragonfly and gravestone doji if you think about this right the only difference is the doji doesn’t have a body there is no body right what it just shows you is just the price rejection so this component over here is the rejection of lower prices this component over here is the rejection of higher prices so if you think about this right even though the price is opening close at the same level it doesn’t mean that the market is undecided because the market has actually tilt its Henn right because at one point the sellers were in control pushing price down lower and then the bias came in right and took charge and finally push up all the way up higher and closing near where it open exit level so this is a sign of strength rejection of higher rejection of lower prices and this just the opposite right price open at this level bias to judge push the price up higher and then seller smash the price down lower closing at the same level okay so this is a rejection of lower prices rejection of higher prices moving on right morning and evening star right star let’s look at the star so this is a morning star so you can see that this is a somewhat similar to the engulfing pattern but with a slight variation to it first candle sell uh sign control open over here and closing near the lows second candle which is this dodgy looking candle is indecision right because the market opened and closed at the same level because if you if you read this uh candlestick pattern what is telling you there’s the opening a close are at the same level market at one point in time right this was the height of the session and at one point in time this is the lows of the session so eventually right the highs and lows the market actually know when back to do where it open right so it’s telling that there is someone in decision indecision in the markets and then finally right the third candle prize open and push up all the way up higher and finally closing near the highs so if you look at the price section of this candlestick pattern or if you think about this is like first candle sellers Inc are in control push the price lower second candle buyers and sellers there include in equilibrium cannot designer who gets the advantage so they’re pretty much closer at the same level candle by a step in right and say hey you know I mean Josh boom price close near the heist so that’s the meaning behind the a Morningstar it’s a bullish reversal pattern and the evening star is just the opposite right first candle buyers are in control closing near the heights second candle indecision right Candace I know whether you know go up will go down so that’s why they closed in the same level where they open on this disc and over here opening close say the same level and Kendall Morningstar right sorry bears come in and push price lower closing near the lows so this is what we call an evening star a bearish reversal pattern and finally tweezer top and bottom right so a tweezer top right is this one over here okay so this is actually a tweezer bottom so let’s talk about tweezer bottom first twist the bottom basically right it’s a it’s a offseason because it’s actually showing you right rejection of lower prices two times right first rejection second rejection right so if you look at the price section again price open over here at one point in time right the sellers came down all the way down lower tried em by a step in push price higher and closing year then the next can know the price open at this level cell let’s try to push price lower once again right near the lowest rate you did previously over here couldn’t exceed the lows just couldn’t push price lower then the buyers stepped in and finally closing and the highs so this is a sign of strength right rejection of lower prices in fact you rejected the price says twice right so this is a quite a strong pattern right shows you two times the price of rejection and on the other hand right this is a tweezer top right you can see that over here price open over here and closed here at one point in time it was at the height of this session before the sellers did push price quite a bit finally closing near this middle of the range of the candle then the next candle the price open here and the buyers quickly took charge God rejected in the same level or around the same level again before the sellers come in pushed the price lower and finally closing near the low so again two times the price rejection rejection of higher prices so this is a bearish reversal pattern so now that you understand right the five powerful candlestick patterns how does this fit into the teh framework right remember the T right trend area of value and the entry trigger so now we really settle the entry trigger portion because the reversal patterns that you have seen earlier those are entry triggers that you can use to enter the trade but before you you know you trade it right remember we said right don’t trade it in isolation like this means that we have to use other factors or other market conditions right to look for before we wait for our entry trigger and the conditions that we look for is the K framework that trend and area of value and finally the entry trigger so firstly right the trend so what we are looking for is that if the price is above the 200 ma we will have a long bias this means that we want to be a buyer in this market condition if the price is below the 200 MA we’ll have a shot buyers this means that we will only be looking to shop right so understand that when I define the trainer it doesn’t mean that just because the price is above the 200 period moving average it doesn’t mean you go along immediately no no no this is just to give you a bias a permission that hey you know now it’s time to be buying now it’s time to be looking for buying opportunities okay so now that we have defined the trend a second thing we want to look for is area of value right you wanna get a trait from an area of value when you go to a supermarket you don’t be buying apples right when you’re selling tree apples for $30 you want to be buying apples at 3 for $1 3 for $2 right getting value out of it and it’s the same for trading right when you want to buy trip from an area of value so an area of value could be stuff like support and resistance moving average trendline channels etc etc so I’m just gonna give you a few examples over here area of value and the third thing is where we look for the entry trigger to enter the trade like for example the candlestick patterns you’ve seen earlier engulfing pattern tweezer tops and bottoms you know and etc okay so now using this framework we can then formulate trading strategies right to profit in pull and bear markets so remember the first thing we are looking for the trend right if it’s an uptrend we will only look to buy and we’ll buy it either area of support moving average or upward trend line and then we look for an entry trigger right the entry trigger would be a bullish reversal pattern like a hammer a bullish engulfing pattern right a dragonfly doji in a cetera does it make sense okay so now let’s have a look at a few examples to kind of know bring in this concept together bring all these concepts together example one so you can see over here right I don’t have the 200ma on the chart right but needless to say the trend is down right because you can see that the market is moving from up to down so it’s a downtrend then we saw that you know the price came into this area of resistance right the way the price of rejected wants twice in a third time and at that time over here you’ve got this entry trigger so number one you look right you have the trend what is the trend the trend is down number two do you have the area of value yes you do right this is the area of value we’re at resistance right and I’m tree do you have your entry trigger let’s call it e entry trigger yes you do have right this is a shooting star rejection of higher prices so can you seen it now you’re not trading candlestick patterns in isolation now you’re trading candlestick patterns in the context of the market meaning you’re trading candlestick patterns right based on you know market structure based on the trend this actually increased the probability of your trade working out so you can see that over here right shooting star occurred at resistance in a downtrend okay and the market did continue slightly lower so one thing to point out is that the examples I showed you right are all pretty much winning trades but in reality right you won’t get all winning trades you will probably meet you know 50 percent winners 50 percent losers again the reason why I share winning trades because it’s easier to illustrate the concept but again those chart or rather the chance you are seeing right now this are cherry-pick I admit right to illustrate the point I’m trying to make a cross but in a real wall of trading right you won’t have hundred percent winners somewhere along 50% 55% winners so this is something that you must a kind of asset and embrace okay so this is the first example second example right what is the trend of one what is the trend train is well down right down train or I can see that the prices coming down lower number two where is the area of value this time around the area of value is a moving average this is the 50 period moving average is acting as a dynamic resistance I’m a tree what is your entry trigger this time wrong we have this a bearish engulfing pattern I noticed this over here market closed higher second candle smash lower closing you’re the low so this is what we call a bearish engulfing pattern right so we have treating someone train area of value and entry trigger and we can go short now having our stops above this high somewhere here right and the market to see if the market can continue lower so now you can see that hey you know we’re all trading with something that that kind of makes sense right based on what the market is telling you we’re not just trading these patterns blindly in isolation example 3 alright look at this right ask yourself again what is the trend what what is the Train well uptrend right series of higher highs and higher lows if you can’t see this right just pull out your 200 ma right and chances are this one the price will be above the 200 ma so anyway the trend is up second thing area of value do we have an area of value to treat from well seems like it right because the price has been respecting me 50m in here here here and here okay so number three entry trigger do we have an entry trigger well seems like it right we have a bullish engulfing pattern over here a sign of reversal rejection of rejection of lower prices right price closed higher engulfing be for a scandal here as well price open and enclose higher above the first candle another bullish engulfing pattern so this is a bullish reversal pattern then you can go long right not a bullish reversal pattern then you can go long and again we are not going long just because we see a bullish reversal pattern we go along because it’s in an uptrend from an area of value right let’s have a look at another example this time round right what is the Train again what is the trend one look it’s an uptrend number two area of value where is it right if you look at the area of value we have this actually this trend line support so this time round it’s not it’s not a moving average or support right it’s a trend line upward trend line so you can see that over here in fact if you look closely this over here right you can actually plot a level over here it’s what we call a previous support that EGIS resistance this one and on top of it you have the confluence of a trend line so your area of value now is there are two things right I’m just call it x 2 1 is the trend line upward trend line support and the other one is the previous resistance again support right so this is strong area of value the third thing what do we have all these engulfing pattern right we have this right so this is your entry trigger again the Tay framework is met right uptrend area of value entry trigger right this bullish engulfing is a bullish reversal pattern ok another example right I really want to do hammer in this consumer right so once you can apply it right I would say that you know you can start finding right much higher probability trading setups instead of you know just blindly trading these patterns so again number one what is the trend well down trend right number two area of value what is the area of value this one over here right resistance previous support acting as resistance resistance okay number three what is the entry trigger I think we’ve got something called knee tweezer top right as you can see that the price rejected the highs over here one time then you rejected here second time right and finally closing near the loo so this is a tweezer top Barry’s reversal pattern traders can look to go shot and stop-loss right I typically set it a distance away from the high side I want to set it immediately directly above the highest because sometimes the market can just spike up higher and then reverse lower alright so usually I give it some buffer put it somewhere here right if you notice I have not talking about target profits yet because this entire cost is about Candlestick patterns I don’t want to go into trade management and target profits if not your run right for a few hours right but generally right if you are a swing trader what you can do is to capture the swing look to take profits right before the set before the buying pressure comes in so now you’re looking to shop you want to take profits right before where buyers would step in and push price higher so if you look at it right where will bias come in right bias chances are they will come in right in this area of support so you may want to take profits right before this area of support okay so say your stop-loss is here your entry is somewhere here right and your target right could be somewhere here before the area of support so t p is for entry and s is for a stop loss all right stop-loss entry target profit so this is something right you know how we can go about trading this particular market right so this is for swing trading for position trading what you can do just drill your stop-loss so I can use a moving average like a 20-period moving average to trillium stop-loss if the price closes above the 20 ma you exit the trade or in this case right if the price breaks and close above the previous candle high you exit the trade as well so in this case right Kendall did this candle over here break and close above this previous candle high so you exit somewhere here so depending where you capture a swing or write a trend your trade management will differ accordingly okay so but it’s a video for another time but just to give you a brief introduction into you know trade management and exits example six all right let’s have a look again right so again at a framework number one what is the trend tell me right the trend is down number two do we have an area of value where we can trade from right seems like the market is respecting this are 50 ma all right and then 30 do we have a valid entry trigger to trade from oh yes we have an evening star right price close higher decision Kendall and in smash lower reverse in the other lows so now Weaver the trend downtrend area of value 50 MA and entry trigger is this evening star bearish reversal pattern okay one final example to really hammer home right bumper mama mom the concepts that you’ve learned today number one what is the trend Kranitz downtrend okay number two are we trading from an area of value yes we are previous support I guess resistance okay number three do we have a valid entry trigger to go short hey what is this this looks like an evening star alright so evening star right market closed higher ii can know somewhat of an indecision candle and entered candle market closed lower alright so yes we have all this three criteria so min so one thing to point out right is that earlier you’ve seen that the I’ve shared with you the different reversal candlestick patterns and if you notice right the evening star looks slightly different from what I shared earlier what I said earlier if you recall this middle candle shows a doji where the price opening close at the same level right where is this one over here there’s actually a slight body where the price did close higher slightly and this is important because what I share with your earlier the so-called textbook patterns right there are always variations to it in the live market so this is why it’s so important to understand the candlestick patterns not by memorizing patterns right but understanding right what each candle mean by looking at the wick the body and ready the body close relative to the wick so this is why I keep hammering that point earlier the 3-pointer body the wick and where the price close right for the body relative to the wick okay so because in the real world of trading you won’t get this textbook examples right you won’t get you know the opening close at this exact same price level sometimes gonna be a slightly higher open sometimes gonna be a slightly lower closer and stuff I mean you gotta understand right nuances and variations they can come with it right same for that you know tweezer tops and bottoms if you see earlier the tweezer tops right that takes for example I share the highs right were able an exact same level but for this example or this one the second candle the highest actually exceeded the first candle again there are always variations to it so if you’re a top of you know die die you know memorize the patterns then you couldn’t have a really hard time because the market will not give you the exact textbook setup it’s always comes in all variations slight nuances and changes along so you have to be prepared and you know really know how to read candlestick patterns so that’s why we spend some time right talking about reading candlestick patterns in the earlier part of the video okay so with that Citra let’s see oK we’ve covered this alright let’s do a quick recap shall we whatever so far we’ve spoken about the TAFE rainwork right in the trend area of value and entry trigger right you look for these three things right you can’t find high probability trading setups in boom markets and bear markets there is spoke about the candlestick patterns that you might want to pay attention to the N golfing pattern the hammer shooting star doji tweezer tops and bottoms and morning and evening star okay so so now alright that’s pretty much what we have covered so give me a moment let me check so yeah that’s a recap and really if you want to learn more okay you found a learn more about what I do what I recommend is you know you can go down to my website trading with rainy or calm okay if you can’t find it this is it right you can go down to my website trading with rain or calm over here the link right and you found a little mobile the strategies and techniques that I used to create the markets going download these two free trading guys okay the lingo just so over here I just go down to my website click this blue button this one will share with you on techniques on how to write massive trends in the market remember we didn’t have time to talk about you know trailing stop loss and exit so this book over here will talk about how you can go about writing trends in the market for price action trading right in the ultimate guide to price action trading this one will share with you on how you can better read the markets and better time your entries and exits pretty much similar to what you have learnt today but in a more in-depth manner so go to my website download these two trading guides click this blue button and I’ll send it to your email address for free okay so that’s it I’ve come to the end of this presentation I hope you’ve enjoyed it and if you really do please write hit the like button smash it bam bam bam bam right and subscribe to my youtube channel so you always be updated whenever I publish content like this and finally any questions or feedback let me know below and I’ll do my best to help so with that cigarette I hope you got value out of this presentation I wish you good luck and good trading and I’ll talk to you soon you

Learn how candlestick patterns can help you identify high probability trading setups — so you can profit in bull and bear markets.

SUBSCRIBE: https://bit.ly/2MsGjRR

If you want more actionable Forex trading tips and strategies, go to https://www.tradingwithrayner.com

**FOLLOW RAYNER**
Facebook: https://www.facebook.com/groups/forextradingwithrayner
Twitter: http://www.twitter.com/rayner_teo
My YouTube channel: http://bit.ly/2EFg5VN

0:50 To get started is what is a candlestick pattern? Okay, so a candlestick pattern is essentially a method, right? Of reading a price chart. It originated back in Japan, right? That’s the history. And the key component of a candlestick chart is that it shows you four things. It shows you the opening price, the price, the high of the session, the low of the session and the closing price,

2:00 How do you read a candlestick pattern? Or how do you read a candlestick chart? So remember there are only four things, the open, the high, the low, and the close. You can see that the candles are usually typically two colors, either you know, green, red, or perhaps it can be black, white. Sometimes you can even you know, change the color if you want, but generally, the most common color is green and red.

9:00 So now, I want to walk you through something what we call combining candlestick patterns. Because candlestick patterns, they are essentially just showing you the price of the different sessions. And if you think about this, right? This can be combined, right?

12:48 So now, how not to trade candlestick patterns, right? So now you know how to read candlestick pattern, you even know how to combine them, how do you not trade candlestick patterns? Because this is a mistake.

15:00 So how should you trade candlestick patterns? I would like to introduce to you something what I call the TAE framework. The TAE TAE framework, alright? So what is TAE? TAE stands for Trend, right? A is Area of value, and E stands for Entry trigger.

16:00 The engulfing pattern, right? This is the so called the theory behind it, right? So you can see that this green candle over here is what we call the bullish engulfing pattern. Why is that? Because if you look at it, right? The body of the green candle which is the… From here in the open and the close, it has engulfed the body of the previous candle.

18:00 Hammer and shooting star. Alright, so let’s have a look at the hammer. So the hammer is something that you might be familiar with because you saw earlier, right? The earlier examples. So the hammer is a bullish reversal, because it’s actually showing you price rejection in the market. In fact, it’s rejection of lower prices.

19:20 Dragonfly and a Gravestone Doji, right? Sounds a handful but really the method is very similar to the hammer and shooting star. The only difference, right? Is that now this Doji. Doji simply means, right? A indecision in the markets. But for Dragonfly and Gravestone Doji, it’s a sign of price rejection.

20:45 Morning and evening star. Red star, let’s look at the star. So this is a morning star, so you can see that this is somewhat similar to the engulfing pattern, but with a slight variation to it. First candle, sellers are in control. Open over here and closing near the lows.

23:00 Finally Tweezer Top and Bottom, right? So a Tweezer Top, right? Is this one over here, okay? So this actually a Tweezer Bottom.

24:26 How does this fit into the TAE framework, right? Remember the TAE, right? Trend, Area of value, and the Entry trigger. So now we have really settle the entry trigger portion because the reversal patterns that you have seen earlier, those are entry triggers that you can use to enter the trade. But before you, you know, you trade it right? Remember we said, right? Don’t trade it in isolation. This means that we have to use other factors or other market conditions, right?

This book over here will talk about how you can go about writing trends in the market. For price action trading, right? The ultimate guide to price action trading, this one will share with you on how you can better read the markets and better time your entries and exits. Pretty much similar to what you have learned today, but in a more in-depth manner. So go to my website and download these two trading guides. Click this blue button and I’ll send it to your email address for free.

Mission News Theme by Compete Themes.