All language subtitles for 3. Candlestick Analysis (1)

All right, welcome to the lesson on candlesticks.

These are called Japanese candlesticks, right, to select them.

You choose this button right up here in training you and you select candles, right?

You can hollow them out.

And that means they will have no feel right there.

You see, the green ones are hollowed or you can have the colors in them as I like to.

You know, sometimes some traders use a line or area charts, but for the most part, everybody is using

Japanese candlesticks right there called Japanese candlesticks because they were invented by Japanese

rice traders hundreds of years ago as they would trade rice and they needed a way to track the price

movements of the rice.

A candlestick has basically one function.

It tells you where price opened and where price closed.

Right.

And it tells you the entire range of the candlestick of the entire range of price throughout that time

frame.

Right.

We already said that if we're looking at a four hour chart here, every candle represents four hours.

Let's move down to a one hour chart here.

And you can see this one ends in 30 minutes because it is nine 27.

And so in 32 minutes, it will be o'clock and this will close.

The next one will open again.

Cryptos 24 seven.

So the next one opens where the first one closed.

Now.

Now, let me talk about the different parts of a candlestick.

A candlestick always has an opening points right now, the candlestick.

Moves down since the open and it's going to be a red candle, right?

This is a red candle here.

And let's fill that guy Red, real quick.

And on the contrary, if a candlestick opens here.

And then moves up during the hour, we're looking at hourly candles, it will be a green candle, right?

OK, and then wherever the candle closes at that same location, the next candle opens, right?

So this kind of opens here and comes up, closes here.

It will be green because it closed above where it opened.

So it's a green candle.

And one of our friends, we're looking at a one hour chart right there.

At that same price, the next candle will open.

Now, if this kind of goes straight down, it will be, what, a red candle, right?

Because it is closing below where it opened.

OK, so this will be a red candle.

And if it closes right here on that, our ends, the next one opens right here.

OK.

Now, what about the range of a candle throughout the time frame?

Right.

Let's say this green, this candle open right here with a green candle closed.

And before went down, it went up a little it went up a little right here.

During this time, it would be green, right?

It would be green, but what happens as soon as the snow starts to come down and it crosses the point

where it opened, the candle automatically turns red lifetime.

This happens life.

The candles now red.

And the snow starts moving down until it closes read right, but however, what will happen up here

in the previous area where that Qana was green, it's going to leave what we call a wite.

You can see the Wick's all over my price chart here, every candle has these white lines.

Those are called Wake's Right.

Wick's.

So we have uproars and we have lower Wick's, so the whole area of the Canada throughout that time frame,

we can know that by looking at the Wick's and the body.

Right.

If the body's red, it's a bears candle.

And if the body is green, it's a Buddhist candle, which are very, very important to they tell us

a lot about what is happening in Japanese candles right now.

Let's talk about three different candlestick patterns.

So looking at price chart right here.

You can see, for example, you can see this everywhere, this of opened and closed right here, next

one opened.

This is a little bit of an upper wick here.

So what that means is those up here and then retraced a little bit, pulled back a little bit and then

closed next an open.

It was a big green one, had a little bit of a wick.

Most candles have a little bit of a wick.

Right.

And then we finally came up here to where we closed next, kind of went a little bit north before it

just got sold off and Prince had this big red candle.

Now, this leads us to our first major candlestick pattern.

This is called a burish engulfing pattern.

What is it?

Engulfing pattern and engulfing pattern is one the body of a candle completely consumes the body of

the candle before it.

So you can see it has to open with the other one closed and it's so close where the other one opened

or below to completely consume it.

This is a bearish signal.

This means that this is a lot of sellers came into the market and completely erased the entire green

move of the candle below.

And as you can see right here, the Bears single signal played off because what happened when this kind

of closed dispersion?

Goldfein, we had a bit of a sell off and we've been down ever since.

We have our price range tool here.

You can see that we have come down about 10 percent here to these lows.

Right.

That would have been a good signal to sell short.

Right.

Or bet that the market will be coming down.

We had another signal here, as you can see, maybe you identified this already, but this is another

Persian Gulf in Canada.

The body of the red candle completely consumes the body of the green candle.

Now, on the other hand, we also have bullish engulfing candles, that is, of the body of a green

candle, completely consumes the body of a red candle.

A perfect example would be right here.

You can see we came to the bottom of this train.

We've been coming down a lot of selling pressure, this bearish trend, this downward trend right in

the market.

There are only two trends downwards or upwards.

Right.

A downward trend is called a bears trend, and an upward trend is called a bullish trend.

And we're not trending.

We're trading sideways or consolidating.

Right.

Consolidating in a sideways channel.

Anyway, as you can see, the same way that during this uptrend or this bull trend, this bearish engulfing

candlestick pattern signaled a reversal or the end of the buying momentum, the end of the upwards bullish

trend.

And it did, in fact, reverse downwards.

You can see that this bullish engulfing candle here signaled a reversal or the end of the selling.

Again, this is a bullish engulfing kind of the entire body consumes that came before it, a very bullish

signal.

So we see this at the bottom of a bearish signal, especially a previous support levels.

Then it is a reversal signal.

You're thinking maybe the buyers have come in here and we're getting ready to reverse.

He saw the same thing happen here.

Three and three green candles after that and the same thing happened here with this bullish engulfing

candle completely consuming the three previous candles, actually, and that was a hell of an uptrend

that started after that.

Right.

Um.

Again, it's very important for golf and you don't need to consume the Wick's, you can see that there's

an upper wick up here.

You just need the body to consume the body, OK?

That is an engulfing pattern.

We have another one right here.

This big red candle consumes the green one and closes below it.

And another one right here.

There was a lot of selling, another one right here before we finally got a bullish engulfing candlestick

pattern.

OK, um.

OK, the next kind of step out and we're going to talk about is the hammer scandal and with the hammer

scandal.

We're going to talk about the significance of Wick's what does it have a kind of look like a hammer

of is a small body like this?

And a long wick, right?

Just like that.

OK, so if you see a hammer cando, so for example, you have one right here, right?

You see the small green body at the top, it can't have too much of an upper wick right across else

invalid.

And it's called a dodgy or indecision candle.

Right.

And we'll talk about those in a second here.

But it has a long lower wick and a small green body.

Now a hammer candle at the bottom or an inverse hammer candle at the top of an uptrend is a signal for

a reversal.

You can see again, we've been trading in this bearish trend.

Price has been coming down downwards, selling downtrend bear trend.

And we print this hammer kind of right here.

So this is our first sign that a reversal is coming, that the bulls are coming in.

So if you're thinking of the buyers are coming in, you might be thinking of getting involved in the

market, taking a by position and opening a buy position here.

Maybe you wait for more confirmation.

Look what happened to Kandos later.

We printed that bullish engulfing that we talked about.

So that pretty much confirmed that this was a bottom.

And you can see Price went on to rally from there.

So this is where we talk about the significance of Wick's what is a Whittman?

You see this long, lower wait on the hammer, Kandal.

If you also noticed the three previous Kandos here also have long lower Wick's.

So what does this mean?

Well, if you remember how I explained how a candle works, that during the life of a candle it's down

here, but then it retraces up and leave the long lower wick.

What does this mean?

This means that all four of these candles here at one point were large red candles.

Right.

There were all down here.

At one point this larger candle was down all the way here, but pushed back up, open here.

Was down here and was a red candle, a four red candle here at one point, but before the hour ended,

it pushed back up and more because it closed green.

Same thing for these they push back up.

So what does that make you think when you're seeing a lot of long lower Wick's?

It tells you that there's buyers there, right?

Because every time prices come to this area, buyers have been able to push it back up.

So this is a strong support level, right?

There's a lot of buyers here when you're a trader.

What are the most important things to know is where the buyers and where the sellers.

Right.

So buyers are here.

They're leaving long, lower weeks, and then we print a bullish Hanmer candle and then we're pretty

bullish on both Encanto, all very good signals on the support level.

Conversely, we have an inverse hammer right here, so you can see we're in an uptrend, right?

This is an up upwards moving trend board trend.

The market is run by the buyers.

They are controlling price.

You always want to ask yourself who is controlling price?

And then we eventually get to this point where we print this inverse hammer handle with a long upper

week and a little read body.

Right.

And you can see the market came to rally.

After that, we printed another one here as further bears confirmation of rejection from this level.

OK, so that's a hammer Kandal.