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Candlestick Charts For Beginners (The Ultimate Trading Guide)

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Candlestick Charts For Beginners (The Ultimate Trading Guide)

hey hey what’s up my friend so in today’s video you’ll discover how to read candlestick chats like a professional trader so who is this a training video for right there it’s a man for a few group of traders number one you’re the type of trader that is completely new to Candlestick right you do not know how to read it you do know what it means then hey you know this video is for you number two you’re the trader who knows that I know Candlestick charts can help you better time your entries and exits in the market alright and you want to learn how to use this powerful – and hey this video is for you as well and finally if you had a group of trader who simply wants to read the price section of the markets without relying on no lagging tools like indicators and stuff like that then hey this video is for you as well sounds good right then one favor right that I want to ask for you from you all right subscribe to my youtube channel right click the button below and hit the thumbs up button this way right whenever I publish a new video you always stay up to date meaning you never miss a single you know training from me ever again right so hit that subscribe button and the thumbs up button do it right now it’s all below subscribe and hit that thumbs up button have you done it then let’s get started so firstly right what is a candlestick chart well candlestick chart is simply write a method of reading a price chart there are different ways to read you have Renko chart bar chart line chart but by far right based on what I’ve seen candlestick chart is the most popular approach right to reading prices on a chart so if you don’t know what the difference between a candlestick patterns and a candlestick chart is quite simple a candlestick chart is made up of a series of candlestick patterns so if you if you you know you’ve seen a chart you see something like this right this is a maybe this is a bearish one the next one is a bullish one okay then you have a little bit of a wick sticking out so this will individual white one this is called a candlestick pattern this is another candlestick pattern so you have you know many different candlestick pattern on your chart and all this right the series of candlestick patterns is what we call a candlestick ciao when you join all this candlestick patterns together is what we call a candlestick chart I think I draw it this pretty badly so we just you know know this portion so just imagine a series of candlestick patterns over here all of it form together is a candlestick cha so naturally right before we can talk about candlestick chart we need to understand you know what is a candlestick pattern because that is the foundation of Candlestick charts so candlestick pattern simply shows you the open high low and close in the market right the prices so for example if you are looking at it on the daily timeframe it shows you the high of the day the low of the day the opening price of the day and the closing price of the day and a little bit of history for those of you who wonder you know where candlestick patterns where Candlestick charts came from so basically originated in Japan right sometime in the 1700s by a rice trader call Mooney heesu Houma I hope I pronounced it correctly okay in the 1700s then it was introduced right by Steve nice and right to the Western world sometime in in recent times right and pretty much he transferred all this a wealth of knowledge into a book called Japanese candlestick charting techniques so that’s pretty much the brief history about you know where candlestick patterns came from originated from Japan and brought into the Western world and you know to know what it is right now today so as I’ve mentioned right it shows you the open high/low and the closing price that’s a candlestick pattern and now how do you actually read a candlestick pattern right so let me you know explain to you so this is a candlestick pattern I’ll just walk you through step by step so the first one is what we call you know when you see a green body can notice what we call a bullish candlestick pattern it simply means that the closing price the closing price is above the opening price so this means the market has closed higher for the day that is why it’s a bullish right the price is closed higher for the day so you can see that the opening price is here closing price is here this is the high of the day right you see that the extreme power of this a black color whip they call it a wig they call it a shadow you know whichever you know suits you all right is the highest price within the time period and this is the lowest price within this time period so a candlestick pennant can be you know shown on a daily timeframe weekly timeframe monthly timeframe five minute time frame so how you read the open high low and close is relative to the time frame that you are looking at so for example if this is the let’s say the weekly timeframe so this is the high of the week the low of the week the opening price of the week and the closing price of the week if you’re looking at the one hour time frame then this is the open right of the candle right during this particular hour this is the highest point right of the candle within a particular hour and this is the lowest price point of the candle within that particular hour and finally this is the closing price right of the hour okay so it depends you know which time frame you’re looking on and then you you reference to the open high low and close accordingly so moving on right the opposite of a bullish candle is what we call a bearish candle and it simply means that you know the closing price is below the opening price so you can see over here now the opening price is above rights on top over here and the closing price is below over here rice is the opposite right of the bullish candle and it makes sense right if the market if the price is you know closed lower for the day close lower for the our clothes lower for a week right then hey you know it’s usually the shown in a red color body candles which is usually not I once it’s not a good sign but just it’s just the way it’s being represented so it’s usually red in color okay the closing price is below the opening price the high and the low is still the same right it could be the high of the week the high of the day depending you know which which timeframe you’re looking at for this particular candle okay so this is how you read a candlestick pattern right usually you see these two colors green or red sometimes it’s black or white depending you know how traders want to you know adjust to their own preference but this is how you read a candlestick pattern moving on to important questions right whenever you know you are trading or dealing with candlestick patterns because a big mistake right that traders make is that this day oh it’s a big green candle right by it’s a red candle sell sell sell No right it doesn’t work that way I mean it’s not as simple as you know just blindly buying self based on the color you see on your chats so whenever you you trick candlestick patterns or candlestick charts there are two important questions you must always write ask yourself first question where did the price close relative to the range right this question tells you who’s in control and I’ll explain why shortly second question what’s the size of the candlestick pattern right relative to other candlestick patterns this gives you or tells you the conviction behind the move okay so let’s look at the first question right where did the price close relative to the range why this is important so if you look at this okay you can see that again this green one is what we call the body this black one is what we call the weak so you can see that for this particular candlestick pattern right the price is close near the upper end of the range so what is the range the range is simply the highs and the low of the candle the entire the range is simply you take the high and the low right from the high all the way down to the low all right this is what we call the range of the candle so when you want to see right who’s in control you want to see where the price close relative to the range in this example the price has closed right near the highest of the range so this tells you that you don’t bias they are in control temporarily right they have closed the market they have closed the price right near the highest of the range another example you can see that this time round okay the market still closed foolishly I still a bullish close as you can see that the closes above the open but if you go back to the first question I mentioned earlier where the price close relative to the range the range is here from the highest to the lowest this is the lows here okay around here this is the range and you notice that the price only close right near the lows of the range in this case right it’s what we typically call a shooting star pattern right it close near the lows of the range so what does this tell you well it tells you that there is strong selling pressure right in this market right now so you can see that if you want to read the price action right you can see that there are buyers in control but they are weak right that’s why they only close marginally higher whereas the selling pressure is very strong is from this high over here at one point in time right the bias if you can imagine they have pushed the price all the way up higher to this high over here and then suddenly the sellers to control and push the price down all the way down back right near the lows of the range and finally closing marginally higher so if you look at this right back to the first question where the price close relative to the range in this case it closes right near the lows of the range and this tells you that there is strong price rejection in this market right there is selling pressure you know looking around okay so you can see right this new candlestick patterns both of them are green both of them are bullish but back to the first question where did the price close relative to the range it tells you right who’s in control okay so I hope that makes sense the first question and taking things a little bit further again this candlestick pattern who is in control again look at where the price close relative to the range this one close relatively you know near the highest of the range so the buyers are temporarily in control second candlestick pattern right the price it closed somewhere in the middle of the range or you can agree that you know somewhere marginally around the middle of the range so this tells you that hey no one is single in control right the sellers are not in control the buyers are not in control and this is where we say the market is in equilibrium and finally the third one you can see that the price the body is quite small as well but the price is you know close and the highest of the range and if you look at the wick over here it shows your strong price rejection I’ll explain right the market right if you think about this it open at this level at one point in time the sellers do in control they push the price all the way down low and from this lows lows for the day for example if this is a daily timeframe and suddenly the buyers you know maybe they took a lot of you know protein shake and creatine and steroids boom they pushed the price all the way back up higher and finally closing at the highs okay so who’s in control well where the price close relative to the range close at highest of the range the buyers are in control okay I hope this this makes sense so the next thing that I want to talk about is that this one right what’s size of the pattern relative to the other candlestick parents right this tells you the conviction of the move right how much conviction how much strength there is in a move right so let me share with you a few examples okay so let me just get on my charts okay so it’s loading so let’s have a look shall we examples here so we look at pound Canadian okay so what do I mean by you know look at you know the size of the candle relative to the other candlestick patterns so if you look at this I’m just get rid of this watch this okay so you can see over here okay just just follow with me mark it make a strong move okay then here’s the retracement over here then mark it consolidate a little bit so what I want you to pay attention is this this portion over here notice right the size of this candle relative to the earlier candles if you notice the earlier candles they are all relatively small over here right they’re all quite small right not showing you much sign of you know conviction of or strength but this first candle this bullish candle is the first one right that actually shows you a sign of strength shows you conviction notice this candle it has covered right the range of the previous one two almost three candles the ridge we call this a bullish engulfing pattern right where the candle pretty much engulfs cover wraparound right the range of the earlier candles so this shows you conviction strength behind the move right so this is what I mean by you know comparing the signs of the candlestick right relative to the earlier candles to tell you right what is the strength conviction behind the move so that’s the second question right what’s the the range of the candle relative to the other candles so here’s another example okay notice this again the market right made a strong rally let it be Cline and Maggie starts to consolidate now I notice the range of these candles over here in this consolidation notice that they’re all relatively small right not much conviction not much sign of strength or weakness and then what happened this candle this one over here large big bearish Bo body can do where you see the price you know closing lower there is conviction there is strength behind the move because right you notice the range of the candles it’s larger right relative to the earlier candle so this tells you that there is conviction there is strength behind the move okay so this is a how you read right the so called price section of the market identifying know strengths and winners so don’t worry about you know how to identify trend reversal we will cover that you know in the later part of this training video but for now I understand right the two questions that I just shared with you this is very important this is something that most traders who treat candlestick patterns they never think about it they just you know memorize patterns green means by rate me in the cell and then I wonder you know why why they are losing consistently in the markets so these two questions is very important okay don’t don’t don’t forget that okay so remember number one you’re not yourself where did the price close relative to the range number two you wanna ask yourself right what’s the size of the candle the range of the candle relative to the earlier candles these two questions right will tell you number one who’s in control and number two the strength or the conviction behind the move okay so at this point in time you now you’re a candlestick pattern Pro right you do need to memorize candlestick patterns once you understand this right you can read the candlestick patterns right with ease so moving on why we have covered candlestick patterns so now we can finally move on to how to read a candlestick chart so it’s mentioned right earlier candlestick chart is simply write a series of candlestick patterns so if you just look at this over here right this is one candlestick pattern this is one candlestick pattern this is one candlestick pattern but when you combine all of them together all of this together it becomes a candlestick chart do all right right no sir okay but still I just want to know me make it clear so how do you read a candlestick chart so there are first and foremost right back to fundamentals basics candlestick chart I can be used to identify the Train so how do you identify the trend okay so here are a few things to bear in mind number one you want to identify the swing highs and lows and market so what is swinging highs and lows in the market so that’s a little bit of a subjectivity here just a little bit right but I’m going to share with you a very simple technique so a swing high is the point on a chat where it’s very obvious the swing levels so for example the market does this up down up down okay and maybe does something like this them up like this so where is the swing high and lows on this chart so if you ask me right if I look at a chat I would say the swing price is here here here and possibly here the swing low it’s over here over here and over here right this one and this one I won’t consider it a swing low because again it’s a it’s my know low so it’s not the one that sticks out the most in your face right when we are talking about swing highs and lows when you and those levels those points that you know stick up in your face there yeah like that stick out in your face those are the ones which I classify those swing highs and lows on the charts okay so once you’ve identified the swing highs and lows right the next thing is quite simple all right an uptrend simply consists of higher highs and higher lows right higher swing lows and higher swing highs all right I was wondering what’s that what’s the word to use right higher highs and higher lows higher swing lows higher swing heights and a downtrend is just simply the opposite right here for the lower swing lows and lower swing highs and a range right is just where the swing highs and a swing lows they all pretty much you know in a equal area equal level so just to you know illustrate up trying to be something like this right higher swing lows higher swing highs a downtrend is just the opposite lower swing low and low sorry Louis swing high and lower swing low and finally arrange rise where your swing lows and highs highs and swing lows right they’re all pretty much at similar levels okay so let’s have a look at a Chan right to kind of you know illustrate my point okay how do you tell the direction of the trend so let’s have a look right back to my chart okay let’s do you know walk through some examples Eurodollar so if you look at this right now right let’s look at the most recent price action what is the trend of Eurodollar right now well using the concept that I share with you right let’s identify the swing high and low first okay I am just you know to keep things a constant right I’m just going to use the reset button so there are equal number of you know bars on this chat right now because if you think about this right the trend is it can be subjective depending on you know how many candles you look at the chart if you you know put in so deep over here you might think that hey this might be an uptrend because you have a series of higher lows well you sumup some more right all the way down back you can see that this market might be you know a long term range and if you just zoom in a little bit more it might be in a downtrend so can you see my point so whenever you’re trying to define the trend not only that your time frame is important you must have you know equal number of you know candlestick candlestick patterns or candlestick chart equal number of bars on your chart list at the point I’m trying to make do you know to define the trend so one way to keep it constant if you are using trading view just click you know reset chat and that’s it if you know if you want a little bit more more debt okay just zoom in a little bit right that is fine as well it’s up to you what’s important is to you know keep it constant so for simplicity sake I’m just gonna use the reset chart and we’ll work with this okay so how do you define the trend right so we talked about swing highs and swing lows so let’s you don’t just mocked out the swing highs and swing lows right now this is a swing high I know this is the swing low swing low swing high swing high swing low swing low and possibly the swing high over here so from the looks of it right what I’m seeing right now life right I mean it’s recorded right but what I’m literally seeing right now is that the market is making lower swing up lower swing highs and lower swing lows right let’s call it no lower lows and lower highs so from this right I’ll conclude that the Train is down okay simple not example right let’s look at a pound dollar okay so you can see that pound dollar okay I have some level is drawn over here I’ll just remove this temporarily right we don’t want to clutter the chart yet again back to basics fundamentals alright identify the swing high and swing low swing high okay swing high swing high and that’s about it right so you can see that up minor levels right but to me right these are all the more the most of this swing high levels that I’m seeing how about swing low this this this and this okay so again generally we have lower lows and lower highs the trend is towards the downside so you can see that there are definitely minor levels over here like note this one over here I can see this one here this one here but they are not major swing highs and lows right if you are taking too long to figure out is this a swing high is this a swing low then is not a swing low swing high alright it’s not a swing high or low okay so if it’s if it’s there is there if it’s not it’s not there okay so let’s have a look at a few more examples to kind of my own new home this at this point right let’s let me look at one more let’s say euro yen okay so you’re again again what I’m seeing over here it’s uh this is the swing high swing high swing high high right swing low swing low swing low so you can see that now right the market it’s a that is still in a slight downtrend but if you look at the price section right you’ll notice that the highs and the lows are relative you know on equal equal area equal level so this is where you start to concluded hey you know this market is in a range okay in the range right where you have similar highs and similar laws okay one more example right just before we move on to the next section or Zn so okay we can see of Aussie and of Aussie yen over here obviously this is the swing swing high swing low and one at one point in time right this was also a swing low right after which when this new swing low is mean right our reference to this again you can see that again this market is arranged the highs and the lowest ride are at similar level well what’s interesting is that this market now has actually broke below this prior swing low okay so with the market now rallies and collapse lower you have officially another new swing low over here and at this point of time right if it’s a lower high in a lower low okay Aloha Aloha high and a lower low and the market is likely to move on into a downtrend okay so this is how you read the direction or rather identify the trend of the market using you know just basic technical analysis concepts swing high swing low good simple powerful then let’s move on and oh yeah if you are still watching this video hit that thumbs up button and subscribe to my youtube channel because you’d want to miss such you know goodies in the future right okay so we have covered how do you tell the direction of the trend moving on how do you identify the strengths of the move how do you define a string right of the move so again I just want to share with you a couple of concepts number one is what I call the trending move ok this training move and tradesmen move so as you know right earlier we talked about in an uptrend and downtrend when the market is in an uptrend you’ve higher highs and higher lows so what I want to pay attention right to you is this right this is what I call the trending move and this is what I call the retracement move right retracement move over here and this is the trending move so if you note this right the trending move right usually when the market is strong the trend is strong right you will notice that day size of the Kendall is the body of the Kendall’s it’s lunch you have large body candles and on the retracement move right you will notice smaller body can those so if this is what you you notice right in the trend it’s telling me that the trend is healthy where the buyers are in control right so this is how a healthy good-looking trend would look like where the trending move has larger bodied candles and a retracement move right has smaller body candles and vice-versa for a downtrend so let me let me know share with you a few examples of this concept called the trending move and the retracement move okay so let’s have a look at the WTI it stands for western Texas Instrument in some soil product not exactly sure what’s the exact name for it so let’s see WT are in crude oil okay let’s see I’m just that crude oil okay I think we can use how we can use this as well it doesn’t really matter okay so you can see over here crude oil where can you see the trending move and the retracement move alright so let’s look at pay attention to this area over here okay so the trending move okay it’s a this portion over here trending move retracement move trending move retracement move trending move retracement move trending move so you pay attention to the size of the Kendall’s when the market is making the trending move right large body Kendall’s large bodied Kendall’s large body Kendall’s on the retracement move small body Kendall’s small body Kendall’s and this one is a relatively small bodied Kendall’s as well so this tells you that you know the strength of the trend and it’s strong towards the downside okay this is how we you know look at the string of the move using the trending move and the retracement move consent moving on right after example New Zealand yen for our things quite a good example as well okay can see can you see it right let’s focus on this area over here trending move retracement move trending move retracement move trending move retracement move look at the size of the Kendall’s that’s what I mentioned earlier trending move you have larger bodied Kendall’s and on the retracement move the title of the Kendall’s tend to be smaller so what does this tell you it tells you that the the string of the move right a string of this downtrend it’s healthy its strong towards the downside okay when the string is getting weak right what you’ll notice is that the training and retracement move right weights where the retracement moves start to make a lot retracement large body candles right so this is a signal that hey you know this trend is getting weak and you know in my consolidate or reverse from here so this is the first clue that you wanna pay attention right that the trend is getting weak or might even reverse okay but it’s that’s for later on we will you know cover more in depth but for now I just want to know nail home the trending move and retracement more threatening moving retracement move okay let’s have a look at and not example dollar gives the Norwegian krone oh okay daily timeframe again you can see right okay so this was a little bit more more less textbook example you can see that you know we have this trending moving this retracement move right is quite deep as well notice the range candles getting a large as well okay then you have this trending move slightly tradesmen then this a training move is not not very strong and then this retracement move is very strong right the large bodied candles okay so you can see that this is a know how trading is gonna be like it’s not gonna be in all textbook examples as I’ll just share with you and then finally this market starts to you know make higher highs and higher lows right you can see that now trending move retracement move trending move retracement trending retracement trending move so now this one this portion over here this trend is looking stronger as you know I noticed that the retracement move the candles the range of the candles it’s a smaller compared to you know the earlier prior retracement moves okay so again the concept is the same trending move retracement move and the trend of this market was the trend right again using our swing high swing low concept swing high swing high swing high swing low swing low and I was in this swing low and this swing low right these are the most obvious level to me higher highs higher lows market is in yen uptrend okay let’s see what other examples I have for you so a little bit more examples before we conclude this section dollar against the same okay now you look at this trending moving retracement move right trending move retracement move trending move retracement trending retracement trending retracement move so one thing to note is that the trending move and the retracement move they are the size of the candles are largely similar okay you notice that the range of the candle is the body of the candles between the range I mean between the trending and retracement move they are quite similar so this is where you can conclude right there now the buyers and sellers right there are somewhat in equilibrium so that you’ve got something looking like a range market right now so buyers and sellers they are somewhat in equilibrium so if the market you know were to breakout higher then the trend is likely to continue higher and if the market were to break down lower then hey know this uptrend might reverse now towards down trim so again you can see they know price section analysis all right trending moving retracement move it gives you clue right to what the market might potentially do mix potentially or nothing is a certain in trading so it’s all dealing with the probabilities so hope there’s a good example to to highlight you and uh let’s have another one Ozzy New Zealand weekly timeframe so again you just look at this right market right now just compare the training and retracement move trending retracement trending retracement trending retracement right it’s all this – swings as well but largely we can conclude that you know the trending and retracement move they are all pretty much having equal get bodied candle size so we can say they know buyers and sellers now on this timeframe they are largely in equilibrium right notice that the highs is here and the swing low is here right all at a similar price level okay and I just one more additional Chandra is just a just doing over to talk about this a concept right which is taking Bitcoin it’s a good one okay so I wanna share with you is that Bitcoin daily time frame right and just pay pay attention right to the trending and retracement move and swing high and swing low this is really all you need like to read price section of the markets to read candlestick charts so we look at this okay let’s go back to basics identify swing high swing low swing low oh sorry suing high swing high swing high swing high swing low what about it right here here here here here right now this is pretty much a similar level and if you study chart patterns you know that this is what we call a descending triangle lower highs in to support my Chuck methods aside right next thing on you to pay attention to is the trending and retracement move okay trending move retracement move trending move retracement move trending move retracement move trending move retracement move what do you notice about the retracement move right pay attention to the retracement move once again all right because the trending move they all pretty pretty strong right in the range of the kendos all pretty large large large and large but what about the retracement move this is quite large this is quite large this is getting smaller this is getting even smaller and this is non-existent so what is it telling you Co you see you know is your brain juice moving well tell you that hey you know the bias yeah clearly right starting to lose control the sellers are now in control s as you can see that the the trending move towards the downside is still strong where’s the retracement move towards the UPS is getting weaker and weaker plus your lower swing high points that we have just discussed earlier signals to that he know hey this market is likely to break down lower okay and I in this case I is cherry picking some boy up the market didn’t break down all right but the main thing that I want to highlight you is that you know just observing the swing highs and lows just observing the trending and retracement move we’ll give you rightly in sign right to the price section to the string and weakness of the market that is really all you need right to read the price section to read Candlestick charts okay I hope this this this helps right this is a one good example Bitcoin uh just one final one shall we write euro Canadian I just want to show you that you know trading is all about probabilities and never certainty so if you look at this a euro Canadian right if you look at is pretty much similar to the bit corner if you know lower swing high and no swing wars are pretty much a similar level and if you look at again the trending and retracement move the retracement Munoz getting weaker and weaker right here’s quite strong quite strong and obvious quite strong enough to here got a little bit weak but in this case the market didn’t break down in fact it broke out higher okay so again price action analysis is all about probability probabilities right this pretty much the main thing that I want to share with you I don’t want you to look at this chart and make it thing is all so simple and then when you trade it lie for demo you realize main why am I losing or of course you have losers I blessed trading it’s all about probabilities there are winners there are losers right buttock so you have to know prep yourself for it so this is my reason I’m sharing with you this particular chart that you know nothing is hundred percent or perfect in the real world of trading okay so now that we have you know probably put a bid on the trending move in and the retracement move how do you find trading opportunities right using candlestick charts okay so I wanna share with you a very simple formula I call it the T formula T stands for trend right trading with the trend area failure so what is area of value it can be stuff like you know a trendline my price coming to a you know upward trend line that is an area of value price coming towards the fifty period moving average there could be an area of value price coming into an area of support there’s an area of value so there are you know different ways to represent area of value and that entry trigger so what is the trigger that we don’t get you into a tree it could be know stuff like Candlestick parents hammer shooting star bearish engulfing bullish engulfing pattern or maybe just into a double top you know breakup build-up stuff like that so entry triggers there are get dime a dozen so I just wanna share with you right how you can use this formula it’s not an exact strategy to zero it’s more like a formula a template a framework that you can use to n develop your own trading strategies alright so this is the formula then I want to share with you train area of value n entry trigger so let’s have a look at a few examples shall we my dear my love my buddy my friend okay first you first want me to let’s look at the five year okay the daily timeframe right is the five year Treasury no futures so basically say us are born so you know I don’t use any tool right so so again look at this chart right what is the trend okay we we talked about identifying trade swing highs and swing lows so in this case I train is clearly towards the down side area of value is the price that is area value well if you draw support resistance you know that there is actually this this level over here some way about here right where the resistance resistance right so now the morn if the trend over here number two you have an area of value this in this case is resistance and number three do we have an entry trigger so entry trigger as I mentioned can be many things right it can just be a straight off I don’t a price rejection why a long wick sticking out could be a bearish engulfing pattern can be a shooting star in this case what we got is a quite a strong price rejection right I think the exact term we’ll call this the that cloud cover but basically it shows you that the market has rejected higher prices easy market at one point I’m close at this height and then X candle it kept up and close right near the lows of this are the range of these own Candle right near the lows of the ridge right so there is a sellers are temporarily in control and there is no in terms of the conviction behind the mover IV notice the range of the candles it’s not as large as the prior one right but it’s relatively larger if you look at over the last series of you know four or five candles so there is you know some conviction behind this move okay so okay trend area value entry trigger and it sold the concept that we have you know been discussing right today let’s see what else I can find dollar Canadian I think dollar Canadian okay it’s just one example the Canadian so again we look at this right you see dollar Canadian right now it’s a again less analyzer right trend you can see that it’s in an uptrend okay trending move retracement move trending move retracement move you can see that right now the market is somewhat near the highs of the retracement move I mean the trending move okay so I think we can draw a trendline just to connect the loose something like that right so when I draw a trendline I like to connect as many points as possible like to touch as many weeks or body included as possible if you learn how to do it right I have a video called Lee Trend trading secrets right you can have a look at the video where I talk about trend lines I think it’s trend line trading strategy that video I’ll put a link below so you can reference to it but anyway right you can see that market now is in an uptrend and if you go down to the forward timeframe again we look at dinner trend area of value entry trigger so I think in our timeframe is also possible let’s let’s keep it really it out what time frame okay so you can see that again the more we have the trend number two where’s the area of value right if you ask me area varies possibly at this level over here previous resistance that could occur support plus you have this upward trend line which could have some you know buying pressure at this area as well and the third thing that we look forward it’s the entry trigger so if the market can come down lower all right despite download and finally no closed foolishly higher near the highest all right that would be a valid entry trigger as it tells you that the market the prices reject that lower prices so that would be a valid entry trigger too cool lock and then we have all three ingredients as well the trend the area value and the entry trigger so it’s the get the T formula right so this is a basically no trading using multiple timeframes but again the concept is the same let’s see what else that’s one more example okay so WTI okay okay I think this was T was the one I was looking for earlier okay so WTI again you can look at it daily time frame so this one is a little bit different right but basically if you look back on this chatter I just let me just plot out some level here I believe this one over here okay so you can see that there is a level over here on this chart that I want to bring your attention to notice that this actually previous resistance they could I can support okay so price did breakout and finally it didn’t really know respect it much it support but this nonetheless is a level that’s you know respected by the market yes you know reject at this level a few times right notice this week weeks over here is our upper shadow ok so again same formula same concept trend towards the downside you have a swing highs and swing lows lower highs lower lows area of value are we trading from an area of value so this is a little bit different right because now the area of failure I said this our previous support they could I guess resistance right prices now break this support down good excess resistance so now this is an area of value okay and then entry trigger was this entry trigger well this one can be a couple of things it could be as simple as the entry trigger where the price breaks below this swing low that’s an entry trigger or if you can you use multiple time frame right in our time frame is where the market you know break this this downward trend line right where it breaks the downward track I mean the upward trend line plus or at this swing look so that it could be another entry trigger as well and then your stop-loss right for me personally I liked you know have it above this this level over here somewhere here give it some buffer okay so now the market would rally up higher at least I have this in a market structure which is this area of resistance to to contain this lower prices I mean of course you can break right pilots I have an obstacle something that you know it’s in my favor – you know so called you know hold the price lower right so that’s where I put my stop loss okay so this is another example of the K familiar trend entry trigger sorry trend area of value and entry trigger okay just one more example shall we so I’ve been talking for almost 40 minutes now it’s quite quite longer than one of my longer videos pound Canadian okay so you can see that in this case or you can see that this uh this market right what’s the trend now sees towards the down side what plus a little bit of range in recent times market has you know spiked up higher right then you have this uh this this also called bearish candle lower at this point in time right market is heading higher so again if you trade off this you know bearish reversal candlestick pattern you can you simply go shot have your stop water you know a buffer a distance above this heist alternatively right which is what I’m going to talk about later is how you actually analyze the price section of the markets right to do so called you know give you a better risk to reward so in this case right what you can do is that if you go down to the forward timeframe okay and you know what I’ll talk about this later on sensors it’s a concept I have not covered yet but for now right again the Tay formula it applies for this as well okay so with that said I don’t uncover the last section for today’s video is no it’s going to run close to an hour all right so to actually identify trend reversals in the market how to predict market turning points right usually again candlestick charts and price action analysis all that we have covered so far so okay if you’re still watching this video subscribe to my youtube channel and hit the thumbs up button alright I know I I sound a little bit irritating but it’s fun so okay anyway this one over here how to identify trend reversal so just two things to pay attention to number one you want the price to lean against a higher time frame structure that’s the first thing very important right whenever I treat trend reversals whenever I try to attempt do you know predict market turning points right I want the price to lean against a higher time frame structure number two right I look for price action weakness on the lower timeframe so how this looks like is that let’s say for example the daily timeframe right price comes into this area of resistance okay so this is the higher time frame structure resistance what I’ll then do is I go down to a lower time frame it can be either to our time frame for the forward time frame right just a lower time frame and I’ll look for price action weakness on the lower time frame so let’s say this is the TV okay the two hour time frame right or forward I’ll look for something like this you know that the market made this uh I would move through a 12 hour time frame look you know like an uptrend so what I’m looking for is price action weakness right where the market shows me signs of weakness where you know the retracement move right what we spoke about earlier it’s getting larger right so which strong bearish retracement move and then the trending move right is you know someone losses energy right where they prior training move is very strong now is giving weeks so it looks somewhat likely a bear flag patterns and the market if it breaks below this low right there’s a good chance that he could continue lower okay and on top of it right this over here this section is leaning against the higher time frame structure alright so this is what I do to identify no trend reversals in the market ok so let me just walk you through this concept so there are many variations to it and it’s not possible to cover everything but so just let me just you know cover with you a few examples so you can understand what I’m trying to bring across so let’s have a look at this right so we can look at this one this one over here the pound Canadian this example so here again this it’s an area of resistance okay so if you want a better time your entry no get a better risk to reward on your trade or you can just go down to the for over time frame and you know watch watch alright how the price action unfolds watch the candlestick chart candlestick patterns to let you know that hey you know right now the the seller says we can have regain control so what you see over here is again trending move retracement trending retracement trending retracement so notice this retracement move right the range of the candles are getting larger this is a good sign if you want to shut the markets because it’s telling you they know there are selling pressure coming in so there are a couple ways this can run full number one market stage another rally and it comes down lower and that’s that’s the consolidated right small range candles telling you that you know the buyers are unable to push the price higher and if it breaks below this lower right then hey there’s a good chance the market can continue lower another variation could be the market just simply know someone away like a lower highs into support like this and then he breaks down right there could be another variation right off the price action weakness in the market so this is you know what I mean by identifying trend reversal you’re basically using a combination of you know multiple time frame analysis market structure and then price action weakness right on the lower time frame so in this case right if you were to trade of this price action structure so if for example you were to shot this break down over here you can actually reference your stop-loss are either from this high or this high so you can see that now your stop-loss it’s tighter compared to no trading off the daily time frame where your stop-loss is larger right because you know trading off or rather you know timing your entries based on this four hour time frame price action analysis okay so there’s no right or wrong to it it really depends on your trading style and how much time you have devoted to trading the markets okay so let’s have a look look at a few examples before we know we conclude today’s session right Aussie Canadian okay so you look at Aussie Canadian notice that on the daily timeframe okay what I’m seeing over here there is a them just draw the level okay so you see over here a year for the prices at this previous support the now could I guess resistance yes I said it’s an area of value over here on in our time frame okay get less observe the price section analysis trending move retracement of trending move retracement move trending retracement training or retracement move notice here this retracement move retracement move the range of the candle is getting larger then the trending move gets weaker and weaker and then starts to consolidate near this area of support no guarantee the market will collapse and reverse I but hey you know the odds are now in your favor so if the market now what to break right let’s say break below this area of support right it’s an opportunity to go shot stop-loss right just a reference it from this swing high don’t give you some buffer maybe somewhere about here and you know there will be a to me right it’s a trading opportunity to trade it towards downside right so again it’s a concept that I just share with you market is leaning against a higher time frame structure in this case a higher time frame resistance okay and the low protection analysis is showing signs of weakness right make sense good understand all right one more example shall we before we conclude today’s session my throat is dry and I need many lots of water later on so let’s have a look at a look at rain you know did Evan worked well for me right but again the concept is the same so New Zealand dollar oh I thought it clicked it okay so New Zealand dollar we’re on a pay attention is to this portion over here this is actually a trade that I took so over here notice right again price again trained area of value right so this downtrend here evaluate this our previous a support that could next resistance and on the four-hour time frame right is we only share with you the price section analysis over here on the forward time frame so it’s a let me find it it’s over here okay so same thing same concept trending move retracement move threatening move retracement move trending move retracement move so notice the retracement move right range of the Kendall’s getting larger and larger then the trending move the strain right getting weaker right notice the range of these camels right here getting smaller it still quite large but over here I become very small looking someone like a a bear flag pattern this is the key area of support right price break below it I went shot stop-loss again I just said it a buffer above this swing high somewhere about here tried everything shot and in this case right a market niwet in my favor right but due to the way I manage the trade right you hit my trailing stop loss and actually you know had a loss on this tree is a loss of point four six are okay so the concept right this is the concept that I’m trying to bring across and again the entry approach the is one thing how you manage the trade is another thing because for another trader who trade is which is it’ll go with maybe a fixed target profit will take profit let’s say swing this swing low over here or this swing over here they might you know get out with a small profit or break even but for me I drilled my stop-loss on this street and you know he hit the trailing stop loss right and it happened to be a loss for me on this tree so that is a another thing you talk about all together for another day but again the main thing to share with you here it’s about you know identifying trend reversals right market turning points by number one identifying the higher time frame structure in number two going down to a lower time frame to reap the price section weakness strangle weakness depending whether you and I buy or sell alright so with that see it alright let’s do a recap right it’s almost 50 minutes already number one candlestick chart is made up of a series of candlesticks right candlestick shut it’s just a fool thing candlestick patterns just the individual can notice that you see on the chart alright and and before we talk more string high and lows right I want to remind you of the two questions again number one first question is you don’t you wanna pay attention to where the the candlestick right close relative to reach because in the highs it’s good if close near the lows or at least bearish its close in the middle it’s pretty much undecided right buyers and sellers are in equilibrium and a second question to share with you is you know the what is the size of the candlestick paddock relative to the earlier patters this tells you the conviction the strength behind the move okay then we talk about identifying the direction of the trend using swing high and swing low concent then we talk about a trending and retracement move right it shows you strength and weakness in the market finally not finally right but almost there we talk about that a formula right basically trading with the trend from an area of value and then having a valid entry trigger to do enter the tree and finally we talked about how to actually know predict or anticipate trend reversals what you’ll do is you use a higher time frame structure like support resistance trendline all right whatever you diffuse to define your structure and then price section analysis on the lower timeframe right to help you know read the price section and to gauge the strength and weakness of the market whether the market is about to reverse lower so a few tip for you over here if you are referenced referencing the higher time room time frame structure like the daily okay you can use the either the two-hour or the forward time frame right to read the price section analysis there’s no best timeframe right which is better 200 forward there is an abbess because it really depends on how the price section unfold itself okay so generally the two and four were right it’s a good time frame to refer to if you are you know trading off the daily time frame market structure okay so with that sit right I have a come towards the end of this video if you want more if this is still not enough for your reader I want more of your stuff right then what you’ll do is go down to my to my website over here trading with Viacom just scroll down a little bit depending on you want to learn right so today we cover a lot about candlestick charts in price section if you want even more of it right then you can download this ultimate guide to price action trading we talked about you know market structure entries and exits volatility contraction and much more click this orange button and I’ll send it to your email address for free alternatively if you want to learn more about trend following writing trends right how do you know trail your stop-loss and to write massive trends then hey the ultimate trend following guy is for you just click this orange button and I’ll send it to your email address for free so we can see that my voice it’s changing so that’s all I have right for you right now so if you’ve enjoyed this video again subscribe to my youtube channel subscribe to my youtube channel hit the thumbs up button and any feedback or comment just let me know below so with that said I wish you good luck and good trading i I you know I wish you all the best right and I’ll talk to you soon you

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