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Why You Lose Money With Candlestick Patterns

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Why You Lose Money With Candlestick Patterns

hey hey what’s up what’s up my friend so in today’s episode I want to talk about candlestick patterns right why traders lose money with candlestick patterns even though they have a pretty good idea usually at most of them about what Candlestick patterns is about right so here’s just why right so introduce learn candlestick patterns from courses from books and whatnot they memorize these patterns right you know the hammer the engulfing pattern the hurom in the doji yada yada right stuff like that they memorize what these patterns mean right and they trade it literally for example if you see a hammer right many traders would make a mistake off you know see your hammer always bullish let’s buy it because the buyers are in control the market is going up higher let’s mine well the next thing you know the market collapse slow and it gets topped up okay so that’s not the way to trade Candlestick patterns don’t memorize the meaning of it and don’t literally tray this candlestick patterns right just because it’s green you buy just because it’s great you sell no it’s not as simple as that okay a better way to approach it right is to use what I call the may formula right the main formula it’s a spell as M ay e a formula and I’ll break this formula down run and explain to you what this is all about and how you can actually use this right for your owner candlestick pattern trade so the may formulator the M stands for market structure the first thing that you want to find out is what’s the current market structure right is the market in an uptrend is it in a downtrend or it’s in a range right you identify the current market structure next thing area of value is the market an area of value is it a support is it a resistance is it bouncing off the upward trend line is it coming towards a respect that moving average like the 50-day moving average right stuff like that this is the area of value the third thing right entry trigger right is there a valid entry trigger for my trading setup write an entry trigger could be something like a hammer a bullish engulfing pattern a shooting star right this is where candlestick patterns shine because they are very useful to serve as an entry trigger to get you into a tree okay and finally exits right where will you exit the trick if you’re wrong right where is your stop-loss and where is your TP your target profit if the market moves in your favor so this is what the may formula is all about and let me just give you an example of how to actually you candlestick patterns right using the may formula how to trick candlestick patterns with the main formula let’s see number one market structured market is in an uptrend okay so we know that if market is in an uptrend we want to be looking for buying opportunities so if identified the market structure number two it’s the price nearer and area of value so here’s the thing right just because the market is in an uptrend doesn’t mean you want to buy immediately right you’ll buy from an area of value this could be from an area of support from the upward trend line where the price respects the trend line you want to be buying near this area so number two you’ll ask yourself right it’s the price near an area of value if it is right for example it’s an area of support then great move on to number three which is your entry trigger now do you have a valid entry trigger to enter a trade an entry trigger could be something that is a hammer for example showing your rejection of lower prices or a bullish engulfing pattern right telling you the buy assign control st over overwhelm the sellers and closed near the high stack could be a valid entry trigger to enter your trick and finally exist where do you exit your trade if you’re wrong where it’s just stop-loss right you could put your stop-loss let’s say you know one eighty are below the low of the entry trigger Kendall and as for your target profit you can look to take profit and the swing high right that’s another way to EXCI your trade or if you’re new trailer stop-loss to right the trend you can drill your stop-loss as well so by now I hope you can see that how candlestick pattern right actually fits into the may formula right if you follow this may formula I’m pretty confident that your trading results with candlestick patterns will dramatically improve I can guarantee you you know you you be a consistently profitable trader you make tons of money I can’t guarantee that but if you are struggling with candlestick patterns and you adopt this formula right the formula that I just shared with you right your trading results right will improve and if you want more training about a main formula I have a dedicated youtube training video just for a just go to youtube google search I mean just – a search on youtube right the may formula alright ma e formula and you’ll find something a youtube video with my face on it click on the video and you’ll learn in full details alright so that’s pretty much it for today’s episode I hope you can join it right with that’s it I will talk to you soon you

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