All language subtitles for 2. Interpreting A Candlestick Price Bar So You Can Use It Effectively

Well, the first thing we need to do when we're talking with candlesticks is understanding what they're

trying to tell us, right.

They're trying to tell us something.

And so we need to be able to interpret what the candlestick is.

Price Bar is trying to tell us, if you look at this example here, we have a red wine and a white one.

And these candlesticks are trying to tell us something about the pricing, the range of prices, the

opening in the closed, whether it was up or down.

But we need to learn how that works.

But you can kind of see just looking at these two examples, that the candlestick basket, the price

basket, their name, because they look like candles, right.

You have a body that looks like a candle, the main body, and you have a wick on top.

And this also with Kandace, the candle sticks and technical analysis in pricing.

You have a wick on the bottom, too, and they can vary in different lengths and all that, as you'll

see.

But that's the idea is to kind of look like a candlestick or, you know, with just or a candle, which

is great.

Now, what's it telling us, though?

This is great.

Steve looks nice, but give us a little bit more so we can understand what this means.

So we look at these two here and now we're going to look at how to interpret them.

Right.

So what is this telling us?

So let's start with the one on the left and are actually let's start in the middle here.

We look in the middle, which is upper shadow, real body and lower shadow.

So all candlesticks share these upper shadows, real bodies and lower shadows.

Some are different lengths, of course, but in these two, they're exactly the same length on all these.

The upper shadow is basically that straight line that you see on both of them going up and down the

real body, as is the rectangle, a kind of the body of the candle.

And the lower shadow would be like the wick on the bottom part of the candle.

So an upper wick and a lower wick and a body again.

You'll see, though, they can vary in size as far as height and weight.

So now if we look at the candle on the left, the red one, you can see that the high of the prices

of the day is at the top of the wick, at the top of the upper shadow.

So that's telling us in this price range, that would be the absolute high that the that the security

traded during the day.

If you jump down to the low at the very bottom, you can see the other wick where it goes down towards

the bottom.

That would be the absolute low in terms of prices.

When you see these on a chart, you'll see the different prices and things and you'll see all these

candlesticks and you'll see their highs and lows based on the wick's of the upper shadow and the lower

shadow.

Now the body itself tells you something.

So the one on the left, you can see at the very top of the rectangle, at the top the body.

That's the opening price.

So that line, that horizontal line would represent what the price was at the opening of the trading

day at the bottom of the rectangle.

On this one, it would show you the closing price.

At the end of the day, what is the closing price?

And then the color of the candlestick actually has meaning.

So you can instantly see the open occur, the close occur higher or lower than the opening.

You can see this one being red.

On the left, there is a down day.

Prices went down, so the prices opened higher.

But at the end of the day, when the price is close, they closed lower.

So just by looking at the candles to color, you can see red down days, right?

So I know my open is lower than my clothes and my Wick's tell me my high and low.

The same thing on the right hand side with the green one.

The difference is, is that the clothes was higher than the open.

You probably see that on the real body.

The top represents the highest price for the closing price, which is lower or higher than what it opened

out.

So it opened that where the open prices there and then had a range of highs and lows, but then it finished

the day at higher.

So the way you can tell that instantly, so you can see that the body is filled in with either a white

or a different color, for example.

So I know if I see a red body in this example, I know my I had a down day, right.

It opened and then closed lower.

If I see it's a white body, I instantly know.

And a pattern of these candlesticks over several days that this one was one.

We're closed up higher than an open.

May seem a little confusing at first, but it's it's not too bad.

You'll you'll get the hang of it.

You're real quickly.

If we look at, let's say, if something as bullish as in the prices go higher, you can see again,

here's that representation of the open being lower in the close being higher.

Bearish would be where the candlestick is typically red in color and would show a opening higher than

a closing lower.

So it's a bearish or decreasing type of candlestick and these candlesticks can be green and white.

My represent bullish red and black would represent a bearish one depending on the price chart you're

using, the platform you're using, and the open and closed depends on the color it'll be at the top

and the bottom of the box and they'll indicate the color depending what happens.

But your lows and your highs will always stay the same high.

Always be the top pick and your low will always be the bottom kick.

As far as the price ranges, here's an example of the same exact security shows you the same period,

what it would look like as far as with an open, high, low, close bars versus, let's say.

Candlestick bars.

And you can kind of see the look similar, but they also look different, too, and as far as we can

get from them.

Now, one thing with Candlestick, those are things that can be indicated.

They give you more information within a pattern or the shape of the candle itself.

Here's a closer look at the candlestick bar chart as an example.

And you can start seeing that you have these different heights, right?

See how some are really kind of square, you know, short and squat and some are real long.

Some have real long wicks at the top.

Some have notebooks at the top are very little and long walks on the bottom.

Novick's the top.

In fact, you can see this one here over on the far left.

Do you see some in the far left, you know, after the you kind of in between where it starts to rise

up a little bit.

At the first part, you might see a candlestick that has a very long top, but not much for difference

between open and close has a very small almost like a line across a body.

And that's actually called a dodgy.

And there's actually things we trade around that's a candlestick with little or no body.

And it's a special case as where the open and close are occurring at or near the bottom.

If it happens near the bottom, it's a gravestone, don't you?

This is an example of a great stone dog where it's occurring more towards the bottom.

You'd be a different name if same thing happened, but occurred at the top, open and close, right

near the top.

So we're gonna learn all about Doges here coming up, because there are very important in terms of,

you know, recognizing a trading opportunity.

But the real takeaway from that is to understand that these candlesticks can have different shapes.

And they're trying to tell you something when you look at them both within their own individual candlesticks.

But also when we start looking at patterns of candlesticks coming up, we're going to give us a lot

of trading information.

And some people, all they do is trade off of Candlestick.

So it's all they focus on is candlesticks.

I like can use them and then use other indicators with them as well, I think is very powerful.

But what people they just love candlesticks and these different patterns and that works well for them.