All language subtitles for 7. How to Trade Price Action With Doji Candlesticks

Hello and welcome back to cryptocurrency trading masterclass by a wealthy education in this video,

we'll take a look at how to trade the dodgy candlestick.

Now, the thing about the dodgy candlestick, you should think of it more or less as like a family of

candlesticks because there are multiple variations.

There is the classic Doce.

Where it shows.

Open, high, low, close.

So basically unchanged.

There is.

One with a body, not a huge one, but like a small one.

You don't have to open and close at the exact same price.

There is the dragonfly.

Which shows that we fell and then rallied again to close unchanged.

So this one shows indecision, this one shows indecision, and this one shows potential bullishness

because the sellers have been repelled.

This is a gravestone Doce, which is.

Potentially bearish buyers came in and could not hang on.

There is also a long legged dog which just shows that it was a much more wild day or hour or whatever.

Or we had a bigger range.

There is the Northern Doges, so these are just candlesticks in Northern Douchy would be up here and

it's not technically in Northern Doce until you roll over like this, you have to have Kandal Dozy Candle.

That would be a parish sign, a southern Doce.

Would be the exact opposite, a gapping dodgy is when you have candlesticks and then you get a big gap

and a.

There are.

Also.

Those young stars, which shows several in a row.

Showing in an uptrend, for example, that you're running out of momentum and that's the whole point,

you're just running out of momentum.

Now, some of them.

Do tend to lean in one direction or another.

But for the most part, the main takeaway is that during that hour, that day, that four hour candlestick,

whatever momentum had stopped.

Now, the problem with those is that you will run into is you don't necessarily want to trade them.

By themselves, because some people will trade them.

You know, you get a dodgy and as soon as price breaks above it, well, it's time to buy or below that

time to sell.

That typically is the problem with the Doce is by themselves.

They aren't necessarily reliable as a signal.

However, you can do little tricks with them and they can tell you.

Give you a little bit of a heads up, think of it more or less as a warning signal, that's probably

the best way to think about it.

So.

You can see that we formed a doozy here, a dozy there that a you there?

Kind of a dragonfly there was you there intentionally, something called a hammer, which we'll get

into in another couple of videos, but you can see.

That there was support there.

And resistance there couldn't get above or below, and that's denoted by the fact that we had rallied

with three decent candlesticks in a row and just kind of went nowhere.

And it shows all of the indecision.

Well, once you finally get a decisive candlestick, that's your cell signal, indecision, indecision,

indecision.

Then suddenly they make a decision.

So.

If you remember, I mentioned the Dragonfly Noge, which shows that buyers pushed the market back up.

Well, what happens when we break down below the bottom of that Dorji that shows the buyers have lost

strength?

Right.

So if you close below there, that that could be a sell signal.

The.

Thing is, like I said, you don't use it by itself, so in this scenario, you can see that this was

the one I was pointing out we broke below it right here, you would expect.

A certain amount of support.

We actually slice through it.

But that would be part of what might keep you out of shorting that, remember, support resistance,

very important.

In matter of fact, that's that's the most important thing, because almost all systems are built upon

it.

So.

Like anything else, the higher the time frame, the more important it's going to be.

That's because it takes more work to produce those DOGIES or candlesticks.

So the first thing.

That I would ask you.

He is on this daily chart of a theory, I mean, you can see that, you know that in the daily candlestick

isn't done for me, but lunch, just for the sake of argument, suggests that this was the candlestick

you end up with.

There's two different ways to look at this, and there's two different outcomes we could break down

below.

Or we could break higher.

Now, here's the thing, if we break here, what is this?

Does you mean this does means that we had a couple of days of really strong bullish pressure in a theory.

We took a minute to kind of perhaps struggle with the idea of seventeen hundred, catch our breath,

and then we broke higher, continuing the trend.

That's a very bullish sign.

You want to be a buyer of a theory, but what happens if we pull back?

Well.

Unfortunately, most retail traders try to pick tops and bottoms.

So what will happen is they will start shorting this and it could work.

Don't get me wrong, I'm not saying he can.

But there's a much better chance to look for this big, large round number right around fifteen hundred

dollars to potentially offer support on a pullback, this pullback would be perfectly healthy because

in any trend you get them, you have to have more people coming in.

So with a 20 day Emma reaching towards a fifteen hundred dollars level, I would expect somewhere in

this general vicinity that there should be a bounce and you can use another candlestick or just.

The fact that the market bounced as a reason to get involved, the 20 day Emma, you can see the market

is respecting that quite nicely.

So that is something that you definitely want to keep in mind.

You can see that we are approaching the oversold condition, you know, for what it's worth in the RSI,

but the candlestick alone will tell you that.

So.

Litecoin.

Is like all other crypto at the moment, bullish as I record this.

This is a perfect example of the kind of thing that I just showed you, you can see that we rallied,

rallied, rallied, formed this almost long-legged those shows that there was a little bit more, you

know, range for the day and we broke down below it.

Now, again, some people will sell that right away.

Typically.

It's going to be better not to find the overall trend.

And this was an impulsive move, you can see that's where we took off from and that's where we dropped

to, so this dodgy suggested that we could fall or depending on how you choose to trade, it could tell

you, hey, you're about to get a bargain if you are.

Willing to wait for a better price?

There is so much more money to be made hanging on to a trend than there is trying to catch each top

and bottom, that's actually, I think, where a lot of retail traders run into serious issues.

They believe that trading more equals more profits, and that's not necessarily true.

And in fact, over time, you will find that actually the less you trade, the better off you'll do

because you tend to pick better trades and once it starts work and you really let it go.

So here's an interesting set up of a bunch of doges.

Notice we have one, two, three, four, five in a row.

So a lot of times what I will do is I will draw a line at the top and a line at the bottom.

And look at it as a signal, if we break out if you remember the rectangles, that's really all I'm

doing here, you could extrapolate this down to a lower time frame.

You know, like these candlesticks here, that's what that would look like on a line chart on maybe

the one hour time frame.

So really, that's all you're doing.

You can see there's a lot of sellers here.

You can see there's a lot of buyers here.

Somebody is going to win.

Once they do that, you can take off.

This might be a little bit more of a reversal signal than anything like this would be.

And why is that?

Well, that's because there's a lot more fighting going on.

There's a better chance that if it does break down, there's a little bit of exhaustion.

This looks a lot like a gravestone, don't you, but it actually has a little bit of a line underneath

it which could be splitting hairs here, but that could also be what is known as a shooting star.

We will talk about that in a couple of videos.

Excellent signal most of the time.

So the thing about those candlesticks is.

Again, it really comes down to where it's place to look at this one.

This was the pullback that I had just talked about.

Well, look at this one here.

We pulled back again.

It does make sense that we would drift lower there because of the previous resistance.

Again, though, it's not as if we were in a downtrend.

So you don't necessarily want to sell it, but it is viable to think that it could happen.

So as I put this Bollinger Band indicator on notice, how we pierced yet again after all of this and

from the stocks you saw.

So what does that tell you?

That tells you that the market was running out of steam.

It got overbought.

This is perfect natural behavior.

The.

Doses, of course, can work in both directions, you know, as you can see here, that was negative.

Again, though, that's more or less a shooting star.

The fact that it that's splitting hairs, some people would call this a shooting star.

Some people would call it a dodgy because it was unchanged.

Really, at the end of the day, it's going to tell you the same thing.

The biggest thing about candlesticks that you need to keep in mind is that each one is trying to tell

you a story somehow or like a chapter in a book.

Some chapters are more important than others, and you have to take it in the context of the entire

story.

So not all those years are going to matter.

They can, but they can also just be, you know, the time of day.

So, for example, if you find that a market that you trade tends to be more active in Asia than it

does in North America, well informed dozes on a one hour chart during U.S. trading.

US trading time, I should say, then that may not mean much either, other than the fact that, you

know, a lot of the market participants were actually working at that moment.

So you will find a lot of times they end up being at.

Fibonacci retracement, this is the 50 percent Fibonacci ratio.

Again, this is like that one that I pointed out earlier that could be called a shooting star.

This could be called a hammer or doozy, really both are technically true.

But notice how we pulled back half of the move and then rallied again with the hammer will go into more

depth later on.

So.

I would say that as far as those are concerned, the ones they do tend to work out.

More important, more importantly, the ones are a little bit more clear, I guess, although when you

get multiple in a row and then you can draw like a rectangle and use it basically as a rectangle.

And again, sometimes they just give you a heads up that, hey, you may get a pull back.

Maybe you want to add to it a position or you want to tighten your stop loss.

They're quite often used more or less for trade management.

So go through your cards and it really doesn't matter to the market, but go through multiple charts

and take a look and see, identify, doges and see what it was trying to tell you in the bigger context

of the entire story.

Doges in a major uptrend.

That might mean a pullback.

Though she's in a major downturn, that might mean hesitation or pullback, it can mean a turnaround,

but typically you need to pay attention to support resistance after that, see if you clear it.

To the downside in this case, then, OK, fine.

But they are very subtle.

It takes a little bit of subtle reading into the story to truly grasp what the do is you trying to tell

you it's not one of your more clear cut patterns, you know, especially when you have something like

this that's not really telling you anything other than the market isn't moving.

So always take it in context.

Take it with your indicators and your support resistance, and you can extrapolate what the markets

may be trying to whisper to you at the moment.

In the next video, we'll talk about how the trade price action with the hammer and the hanging man

candlesticks.