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Candlestick Patterns Cheat sheet (95% Of Traders Don’t Know This)

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Candlestick Patterns Cheat sheet (95% Of Traders Don’t Know This)

hey hey what’s up my friend so in today’s training right you will learn how to read candlestick patterns like a professional trader even if you’re a new like beep right so this is my promise to you is that even if you know you have no experience with candlestick patterns you have a bit of experience by you’re overwhelmed by the sheer number of patterns don’t worry because in today’s video I will show you a simple method to rekindle stick patterns like a pro without memorizing a single pattern right without getting confused by the sheer number of patterns and without getting overwhelmed it’s very simple or if you just follow my simple procedure all right so let’s kick things off right first and foremost the basics so candlestick patterns is a way to show prices on your chart and it’s not the only way you have stuff like bar chart line chart etc so candlestick patterns is one of the more popular approach and when you are dealing with candlestick patterns right you must be aware that there is for price point right for every candle on your chart it’s the opening price the high the low and the close so when we talk about a higher is the highest price point of the candle and a particular point in time and the low is the lowest price point of the candle within it particular point in time right depending which timeframe you’re trading on where is it the daily weekly or monthly so let me explain so candlestick patterns usually have you know two popular colors the green and the red bar sometimes it might be white and black depending on the settings that you use but more more commonly it’s gray and green so for example over here this is a green candle what a green candle means right is that the price has closed higher for the time period okay so the opening price is always here for a green candle it here mister opening price this is the closing price is where the price is closed within a time period and this over here right the highs that you see and the lows over here we call this the wicks all right some people call it upper shadow some call it lower shadow by just treating it so call in a week right to make things simple so this is the upper week then lower week and upper wig right signifies on the high of the time period the lower week right signifies a low of the time period and you might be wondering hey right now what is time period exactly so here’s the thing right candlestick charts candlestick pattern it can be shown on different time frame the daily the weekly the monthly the five million 15 minutes 20 minutes whatever you you desire right it can be shown on the respective timeframe so let’s say you are looking this green candle on a daily timeframe what this means is that this is the opening price of the day this is the closing price of the day this is the highest price right and the price is actually when right within the day itself okay the highest price point within the day that the market did move to it towards that high and this is the lowest price point within the day itself that the price actually traded to so this is what we mean by in on the high of the day and the low of the day all right so likewise right for this one the rate bar very important feature is that their green and red bar their opening closing prices at different location when you see a red bar it means that the price has closed lower for the day so for the price to close low for the day where must the open me the open must be here right here this point opening price and this is the closing price and likewise this is the high of the time period and this is the low of the time period so let’s say you’re looking at this on the one-hour time frame so this is the highest price right in the price meet within the last one hour and this is the lowest price that the price went to within the last one hour right so if this is a one hour Kendall okay so this is the basics of candlestick patterns and how to read it and here’s the thing right for those of you who if you know devil in candlestick patterns for a while right you will face this problem and what’s this problem is this right now so many patterns out there you have the tree white soldiers the bullish and go field should install him or her ami doji etc and if you memorize all this you know we’re naming patterns it’s a matter of time before you get overwhelmed okay and and really right memorizing patterns is not the way to treat markets right so this is a problem that I faced personally and I suppose right many traders would encounter something similar as well so what’s the solution to this if you don’t want to memorize candlestick patterns and at the same time right you want to know the meaning behind it so my suggestion is this every time you look at it candlestick patterns and you are not sure what it means right ask yourself these two questions because when you ask yourself these two questions right you will gain clarity right that you you’ve never seen before it’s kind of like an x-ray vision do you see some being right know most traders will never see right if they are you know always try to memorize patterns so here’s the first question where did the price close relative to the range the power of this question right will tell you who’s in control is the buyers in control or the sellers in control or nobody in control okay so here’s how it works so if you look at this right now this green candlestick pattern right it tells you that the price has closed higher for the time period it opened over here and it closed here so you notice there is no low awake right so in other words the opening price is also the low of the day right let’s say this is a daily candlestick pattern right and the opening price is also the low of the day and notice that there is a upper wick over here okay so one thing you notice that is that the price right it close right near the highest of the range so what exactly is the range the range simply put it is the distance between the highs and the lows so this is the highs okay and you go all the way down and this is the lows okay so this is the entire range and you notice right the price is actually close here which is near the highest of the range this is very close again this is the highs and this is the lows the price actually close near the highest of the region this tells you that hey who’s in control the behind sigh the buyers are in control and that’s why they are able to close the price right near the highest of the range another example this one yes it’s still a green candle right if the price is close above the opening price but it’s the buyer in control other buyers still in control well again just use this question right where the price close relative to the range so where is the range well this is the hoist which is here and this is the the lows right opening price and lows it’s the same price point so this is high the lows right so this is the entire range of the candle and now with the price close right relative to reg views look at this right the price actually closed over here this is the closing price so let’s say so over here closing prices here highs is here and lows this year now we are seeing a different picture than one previously right why is that because now you realize that the price it only closed marginally higher right relative to the ridge what does it tell you it tells you that at one point in time right the buy so actually trading near these highs over here and from this highs right to this close right forget to happen right it means that sells at one point in time right they have to come in and push the price level down all the way to this close over here this tells you that in the background right there are there is selling pressure looking around and this is a sign of weakness so yes the price did close higher within the time period but you can see that there is a strong price rejection right strong selling pressure and a great grounder and that cost the price actually just close marginally higher within the range okay so this question tells you who’s in control so at this point you look at this candle it tells me the sellers right are actually the ones in control okay where did the price close relative to the range okay second question is this what’s the size of the pattern right relative to the earlier ones then this question right it gives you a tells you the conviction behind the move right tells you whether is there really strength behind the move right is it really a smoke screen or is this for real so let me explain what this means so if you look at this chart okay notice that this is the retracement okay but and you look at this right this tells you if you studied what I mentioned earlier it tells you that the buyers are in control right the price is actually close near the highs but if you look at the range of this candle the most recent candle over here relative to the earlier candles you notice that the range of this candle doesn’t really signify much right it’s not really very large all right compared to the earlier ones in fact in in terms of the range of the candles in terms of size it’s pretty much the same so this tells me that it really is it any strong by conviction behind this this candlestick move right you really isn’t anything you know phenomenal or in effect anything outstanding okay but when you compare this right with this one over here now okay look at this right is the retrace bud and now you see this big candle over here look at the size of this most recent candle look at the size of it relative to the earlier ones this tells you now that there is strong conviction behind the move not only on a bias I can control but there is also strong conviction behind the move okay can you see why I’m coming from so when you look at this a candle right I’m doing the second question right what’s the size of the pattern relative to the earlier ones it tells you right the conviction behind them of whether is to move real or not okay so this is what we are trying to understand over here so once you understand these two questions right then you pretty much I can actually read any candlestick patterns right then you come across just need to remember the first question whether the price close relative to the range it tells you who’s in control and a second question is what’s the size of the pattern relative to the earlier ones all right so bonus right just one final bonus tip for you is that candlestick patterns they are very versatile you can actually combine them right across different time frames and you can actually you know visualize actually see what the pattern will be on the higher time frame does it make sense well let me give you an example so if you look at this pattern right let’s say on the 4 hour time frame right you have this bearish bar over here on the former time frame and the next candle you have this bullish bar over here so when you go up to the 8 hour time frame okay you’re you will realize that the candlestick pattern will look something like this this hammer over here and how do you get this picture of this hem over here very simple you take the first candle the opening price of the first candle right it will be the opening price of this candle over here the closing price of this second candle which is here the closing price will be the closing price of this candle over here and then the highs right within this two time period I the highs within this in our time frame right in the highs and the lows right will be the exactly the highs and the lows right for this in our time for a candle over here as well okay so sometimes if you are looking at the chart you don’t quite understand what’s going on man what what’s going on I couldn’t control one candle is green one is bread you know so what now all right what you have to do is just just combine these two candlestick patterns and you will have a clearer understanding right of who’s in control right let me give you an example before a real chat shall we look at this okay so for example let’s say somehow rather you look at this chart and you wonder man Rayner look at this Rayner this is so confusing right one moment the candle is green next moment is red so should I be you know buy or should I be Sally or what’s going on man I’m confused very simple right do what I just share with you earlier you stick the opening price of this candle the first candle over here and you notice that the price on the second candle is closed marginally lower I saw the opening price is here the close is marginally lower the highest of the candle is here the lows of the candle is here so if you visualize this right what does this give you it will give you something like this right price open here it closed marginally lower so let’s say we imagine that this is a lower closed then you notice that the highest of the candle is actually here okay which is very high from the close right quite a long distance so I assume that there’ll be a very long wick over here showing your price rejection and that’s one very tiny week at the bottom here if not you can see it so let’s just draw this little wick all right so I’m guessing right the price action only in our time frame this is the forward time frame right the price action you know what time frame will show me this price rejection right so if you go up to the eight hour time frame and yep there you have it right this candle over here right this tells you that there is rejection of higher prices over here right and that’s how you actually combine candlestick patterns to to make sense right out of something that you’re not quite sure of right so this tip right this bonus tip could help you along the way so along with the two questions that we have covered earlier so let’s do a super quick recap about today’s topic on candlestick patterns right so candlestick patterns it shows you the open high low and close for a given time period it could be a daily weekly monthly five minutes 30 minutes chart whichever you decide and instead of memorizing every single candlestick pattern out there just answer some of these two questions number one whether the price close relative to the range this tells you who is in control however this question itself it’s not a full picture because you also want to understand right the conviction behind the movement that’s where you want ask yourself this second question what’s the size of the pattern relative to the earlier ones if the pattern is of similar size then it tells you that there’s really not much conviction behind the move right but if the pattern is huge right two or three times larger than the earlier range of those candles that is telling you that hey there is conviction right behind this particular move and finally right I share with you how you can actually combine candlestick patterns on lower timeframe right to form a higher time frame candlestick pattern this is a additional tip for you if you know you sometimes you still look at a chart you’re not quite sure what this means just – a higher time frame right maybe looking at 12 I just go up to the forward time frame right and you will have a different view or I have a better understanding of what’s going on so if you are looking one time from and you not sure what’s going on go up one time for Empire right from my – or we can go forward or we can go in our time for you and trust me right things will be clearer for you so with that said right I hope you’ve enjoyed this video if you do right hit that thumbs up button if you don’t enjoy this video then hit the subscribe button and well that’s it I’ve come towards the end of this video any feedback questions let me know below and no any topic you need to cover leave it in the comment section and I’ll do my best to help with that said I wish you good luck and good trading I will talk to you soon you

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