The Ultimate Candlestick Patterns Trading Course

The Ultimate Candlestick Patterns Trading Course

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Hey. Hey what's, up my friend so welcome, to the ultimate candlestick. Pattern, trading costs right in this course. Right you'll learn how to identify high, probability, trading, setups so you can profit in boo and bear markets now. Some of you might be thinking right, I'm new to trading right would this help me I have no idea about candlestick patterns I don't know technical analysis, don't, worry right because in this course, right I'll walk you through step by step from A to Z right on how to treat candlestick, patterns even if you have no trading experience and, by, the end of this session, right I can assure you that you will, be able to treat candlestick, patterns like a pro sounds. Good then let's begin. So. Now the first thing right to get started is what is a candlestick, pattern okay so a candlestick pattern is essentially, a method, right of reading a price chart, it originated, back in Japan, right that's the history and. The, key component of a candlestick chart is that it shows you four things, it. Shows you the opening, price, the. Price the high of the session the, low of the session and the, closing price, okay. So when I use the term session, or it can mean different. Things right if you're looking at Candlestick charts on a daily timeframe it means the high of the day if you're looking at Candlestick charts on the one-hour time frame it means the high of the, one-hour, session, okay so it can mean different things depending on the timeframe you're, looking at we will cover that in more details, later. So. Now how do you read a candlestick. Pattern or how do you read a candlestick chart so remember there are only four things the open the, high the, low and the close so. Looking, at this right you can see that the candles are usually typically. Two colors either you know green red, or perhaps. Can be black white right sometimes you can even no change. The color if you want but generally, the, most common color is green and red so, when you see a green candlestick, pattern. Right it means that the price has closed, higher. For the session so. You can see that this is the opening price at this this line over here this is the opening price, this. Is the, closing price, and. When you see this black shadow over here we call this a wick right this is the upper wick this is the highest of the session, and this. Over here is the lows of the, session all right this at this point over here so. Likewise. Right on the. Other hand, the. Rate Calabar the bearish bar the. Open is at. The opposite side the open now is on top right, over here the open and the. Close is at a bottom and the. Lowest of the session is here over here and the, highest of the session is here, so. The main difference between a bearish bar and a bullish bar is that the open and closed already opposite, side for a bullish, bar it means the prices closed higher for the session the open is always below, the. Closed for. A bearish bar it means that the price has closed. Lower, for, the session and the open has to be above. The. Closed. Okay. So now let's try. To understand know this. Candlestick, patterns in more depth. So. First thing right you'll notice that is that candlestick patterns there are two.

Main Component, to it right one is what we call the body this portion here is the body right, in this green area and this, black, shadow thing is what we call the. Wick right, so the body pretty much tells you right who's, in control so in this case you can see that the buyer is the opening, prices over here and the buyers push price up all the way up higher and finally, closing, in this highs of the session, however. You can neglect this, a shadow, as. Well because what it's telling you is that there, is price, rejection, there is you know, rejection. Of higher prices because if you think about this right this was once, the. Highest of the session so what this tells you is that at one point in time the sellers actually pushed, a price from, this highs down. Lower right, until it price closed, over here all. Right until it closed over here so, if you think about this right this is actually a form of price rejection, right. Rejection, of higher, prices, so there are two components to a candlestick. Pattern. The body and the. Week, the. Third thing that I want you to know is this, right where. Did, the or, rather what is the size of the body relative. To the week because you can see over here again you, have just a wick and the, body but this time around the message, is completely. Different right, if you look at this candlestick. Pattern. Over here it shows that yes, the price did close higher the, price open here at this level and it closed over, here right is the close this is the open. However. If you look at the week notice. The. Price rejection, because at one point in time right the highest of the session is over here at. This point and the, only way for, the price to, actually close, at this level is that. A price, right has to come all the, way down from the highs and then. Finally closing. And this this level so. What does this tell you it. Tells you that yes right the bias did, push. The price up slightly higher, for the session but. There. Was an immense, amount of selling, pressure a strong price rejection, right, that actually pushed the price lower during, the session so you can see that over here this isn't a very bullish, pattern. In fact it's quite bearish, as it shows you that the immense, selling. Pressure by the sellers okay so you also want you to pay attention to actually these three things number one is the body. Number. Two is the week and number. Three is the body, relative. To the week right the size of the body relative. To the week usually, if the wick is much longer than the body it is a sign. Of price, rejection, okay, so this is a how. You read candlestick, patterns just three components, the body the. Wick and the. Body. Relative, to the wick. So. Moving on right let's look at a few, variations, right to Candlestick patterns so the first one I think is something that you are probably you know familiar. With the price actually opened here, open. Then. It closed, this. Is the highs this. Is the lows of the session this is a closer I quickly see then. In terms of the meaning. Behind it you, can see it's quite straight forward the price open near, the lows it tried to reach come down lower but rejected then you finally close, near the highs at one point in time I was actually at this level over here meaning the buys way this, level at one point in time and the sellers came in push, price slightly lower and finally, closing near the high so it's a sign of strength how. About this candle you can see that a price open here and it closed over here so. When, the market just opened right possibly. What happened is that a price came down lower, the. Sellers were in control then a bias to charge and push push press all the way back up higher, back towards this heist and then finally the sellers came back in him and. You know the market closed, at this price level so, generally, the meaning behind me is that there is you know indecision, in the markets both buyers and sellers are present. Right and the Mucky just inched, slightly, up higher so if, you, ask me generally, this is what we call an indecision, pattern, and if, you look at this last candlestick, pattern try the price open here. Market. Came down all the way down lower sellers are in control then the bias took charge and reverse back, and finally. Closing, near the highs so. The meaning of this pattern is rejection. Of lower prices the buyers are clearly, in control, okay. Moving. On right just the opposite variation, this one I think I don't need as much to go through it's just the opposite, to what we have just shared earlier okay, this is instead that this is the selling. Version. Of it so. Now let's do a quick recap shall we a candlestick. Chatter it shows you who's in control. All. Right remember. I said pay attention to the body the, wig and the body relative. To the week that is important as well right because if you can have a bullish. Close button if you're wick is much. Longer than the body right it's still a sign of price rejection, okay.

So, Moving on. Candlesticks. On different time frames so earlier right if you recall I say that candlestick. Chart. Can appear on different time frames daily one-hour whatsoever. And if you look at this right this is a candlestick, chart on the 16 minutes time frame right. Which is the, one hour so you can see that this means that every hour one. Of this bar will be painted right, every hour this bar be painted one hour despise painted one hour later this bar is painted one hour later this bar is painter so a bar is printed, on the screen every. One, hour and. If. You, look at this one over here this is the daily time frame okay, see this over here one sorry. 1d. Right means daily right, this means that every, single bar. Is printed, after a day so. Here's a Monday there'll be a bar Tuesday, there is one bar Wednesday there is one bar and etc so this is how candlestick, patterns, right can form on the different time frames. So. Now on walk you through something what we call. Combining. Candlestick, patterns because candlestick, patterns, they. Are essentially just show you the price of the different sessions and if you think about this right this can be combined. Right for example let. Me share with you right if, you look at this I just imagined and let's say this is a one, hour candle right the green one is one hour. Rate. One is one hour. So. Now when you combine these two candlestick. Pattern this. One over here Oh what time, frame is this candle gonna be, well. One hour plus one hour this will be a two hour kendo. All, right and how did this to our candle, come, about very. Simple right a two hour candle simply means right it I didn't if I was the high, over. The last two hours what, is the low over. The last two hours the. Opening, price of. The, first hour and a closing price right at the, second. Hour simple. So if you look at this right this, is essentially, the open. This. Is the closed this. Is the highest let's call the H and this. Is the lows right. Let's call it L so. You can see that where did we get the open from we get the open from the first candle because this is the first candle the first hour of the, two hours so this is the open so this is why we have the open over here now. Where is the high the, high is simply the highest point, between these two candles, so in this case the. Highs between these two candles is pretty much the same so this is the highest, what. About the lows the, loss is essentially, the lowest, point between these two candles, between these two one-hour candles and the lower the low is actually this over here which got this dis and where. Is the close well, the close is essentially the close of the second candle which is this one over here this candle. Close at this price level and that's why you got this close so, when you combine these two candles, this one plus this one you gotta get this, bearish. Looking, price rejection, on your chart does it make sense okay.

Let's Look at some real examples. So. If you look at this chat right this is the chart of the one hour time frame okay, just pay attention I want you to pay attention to this two, areas right these two candle this one this, one and this one, this. One, briefly. Visualized in your head right at hey let's say I'm gonna, move to a two hour time frame right now how. Will these patterns. Change. So let me give you five seconds to can I know work, on your visualization one. Two. Three. Four five all right so let's have, a look. So. You saw those two patterns earlier it pretty much is reflected, like this on a two hour time frame can. You see what happened the. Two 1-hour candles are simply combined to. Form the. Pattern and you are seeing right now okay. Let me just go back a little bit so you can see right this one over here this one plus this one and, this. One plus, this one so what happens is you, get this. Candlestick. Pattern over here and this. Candlestick. Pattern over here all right so let's just to walk you through why is this green color because the. Second candle did, close, higher above the first so if you look at it. This. Second candle over here it it closed higher. Above. This. One over here so that's why you got a bullish, bullish, close okay. And similar, for this right, this candle it closed right but it didn't exceed the open of this candle so that's why it's still red on the, two hour time frame as you can see over here and, over. Here okay. So by now I hope you can understand how candlestick. Patterns can be combined, so this is very useful right when you're, looking at a price chart let's say the one-hour time frame and you can you, can't make sense out of it right so you're gonna see. Clearly. What you can do is go on to a two hour time, frame and things might be different or you might get a clearer, view of what's happening similarly. If you're on a four hour time frame you can make, sense out of it go, up to the eight hour time frame and things might be clearer for you okay. So this is the so-called. Usefulness, right off combining, candlestick pattern second I know just understanding, what's going on on the big picture, so. Now how not to trick candlestick, patterns right so like no you're not we candlestick, patterns even not to combine, them how, do you not treat candlestick patterns because this is a mistake right I see many new traders make because, you know as I've said right earlier you, recall that I see there, if the candle is green it means bullish, if the candle is red it means bearish, right the price is close lower, so. What traders would do is that you look at a chart and they find a series. Of green candles and it go long for example they see over here what many candles green over here bullish, bullish, let me buy it so bullish to go along and bam MA, reverse, similarly. Ready look at the chat oh it's, so Barry's right Rick and little Rick and the brainless aids you know selling. A cellar sign control I should go along bum market. Reverse right, or if they look at you know this green kennel oh you know rejection, of a. Rejection. Of lower prices this Kendall right let me go long Pam mark in Reverse what's going on right. Why why is that so so. I'll, explain why surely but first right how. The. Message I'm trying to bring over here is that you don't want to treat candlestick, patterns, in isolation what is isolation it means, right you know what a trick candlestick, patterns by in itself just because the, candlestick is green it doesn't mean you go long just because it's great doesn't mean you go short that's what I mean by isolation.

So Don't treat, candlestick, patterns in this manner. Okay. So just a quick recap right, Candlestick. Charts, it can be combined as I've shared with you earlier and also, you don't want a trick candlestick, patterns, in isolation so now you might be wondering okay Rana so how should I treat candlestick, patterns right so let's talk, about that so, how should you treat candlestick, patterns I would. Like to introduce to you something what I call the K framework. The Taytay, framework, all right so what is Tay Tay. Stands for, Train. Right. Is, area. Of. Value. And. E. Stands. For entry. Trigger. Okay. So, when you want to trick candlestick, patterns right remember these three things the, trend the, area, of value and the. Entry trigger. So. Now before I can you know dive into this framework and this methodology. Right I need to explain. To you what is entry, trigger okay. So, to, do so right I would say candlestick, patterns are very useful, and powerful, entry. Trigger into a tray so, before we can go into this framework right let me share with you right five powerful, five, powerful candlestick, patterns right that can serve as an, entry trigger and once, we've learned that right we can look, at this framework and see how we can actually find high, probability, trading, setups in the market okay so, moving on the. First candlestick pattern, that I want you to know is the engulfing. So, the engulfing, pattern right, this is the so called the, theory. Behind it right so you can see that this, green candle over here is what we call the bullish, engulfing pattern. Why, is that because if you look at it right the body of the green candle which is here from here in the open and the, close it. Has engulfed. The, body of the previous candle so this is the previous candle let's call it number one and it's number two right, you can see that the, engulfing, candle. Bullish engulfing candle, has actually covered, the entire body, of the first, candle so this is why we call it the bullish engulfing pattern because the meaning behind it is that if, you look at the charts. Right first. Candle sellers are in control the open over here and it close near, the loose on a second. Candle the. Buyers are somehow on steroids, I pump the ready, on steroids ready open near the lows and you finally push price up all the way up near the highs over here they are freakin on steroids, right. This is open and this is the closed so this is a sign of strength right let's see it shows you that the bias have, reversed all the selling pressure and more, so this is why it's. Called a bullish engulfing pattern right firstly engulfed the body of the previous candle and it's, a sign of strength as a bias have pushed price higher and even closing, above the highs of the previous candle. The. Other pattern is what we call the bearish, engulfing patterns. Just the opposite right you can see that the first kind over here is bullish bias, are in control open here and closing. Near the highs. But. A mix candle sell us to Chechens smash. The price lower right they open, near. The. Highs as well but they took charge and finally push price lower and closing, near the lows over, here so this is a bearish engulfing pattern telling, you know what sellers are in, control. Okay so this is the first pattern I want to share with you the engulfing, pattern and, it's. Very useful to identify no market. Reversals, the. Next one hammer. And shooting star. All. Right so let's have a look at the hammer so, the hammer is something that you might be familiar with because you saw earlier right be earlier examples, so, the hammer is a bullish. Reversal because it's actually showing you price rejection, in the market in fact it's rejection of lower prices, if, you look at this right the price open, here and at. One point in time when the sellers were actually in control, push, price lower near. The lows of this session near. The lows of this session and then.

The Bias came in to just hey hey this is enough man I'm coming in right they push price all the, way up higher and finally. Closing near the highs right. So this is a sign of strength right rejection. Of lower, prices so this is what a hammer means, on, the, other hand right the shooting star is just the opposite right it's. Showing you rejection, of higher, prices, if you look at this right the, price, open. Here, bias. Took Church push the price up higher but, then hey you know sellers suddenly, came in and push the price down maybe you know detainment it prices too high you, know it can't go any higher this cell they shot the market and a market collapse, lower finally. Closing near, the, lows so this is a rejection. Of higher, prices, right these two patterns again all, right are, you. Try to help you identify market. Reversals. Dragonfly. And a gravestone doji right. Sounds, a handful but really dependent is very, similar to the hammer, and shooting star, the, only difference, right is that now this doji. Doji, simply means right a indecision. In the markets but for dragonfly, and gravestone, doji it's, a sign of price rejection, because if you look at it right it's actually very similar to the hammer and shooting started, you've seen earlier right, let me just go back a little bit hammer. Shooting. Star. Dragonfly. Doji, gravestone. Doji so. Now let me ask you what. Is the difference between the. Hammer and shooting star and the, Dragonfly and gravestone. Doji. If. You think about this right the only difference is the. Doji, doesn't, have a body there is no body right what it just shows you is just the price rejection so, this component over here is the rejection, of lower prices, this, component, over here is the rejection of higher, prices, so. If you think about this right even, though the price is opening close at the same level it doesn't mean that the market is undecided, because the market has actually, tilt its Henn right. Because at one point the, sellers were in control pushing price down lower and then the bias came. In right, and took charge and finally push up all the way up higher and closing near where. It open exit, level so this is a sign of strength rejection. Of higher rejection. Of lower prices and this, just the opposite right price. Open at this level bias. To judge push the price up higher and then seller smash, the price down lower closing, at the same, level okay so this is a rejection of lower, prices rejection. Of higher, prices. Moving. On right morning, and evening star. Right. Star let's look at the star so, this is a morning star so. You can see that this is a somewhat. Similar to the engulfing pattern but with a slight variation to it first, candle sell, uh sign control open, over here and closing. Near the lows second. Candle which is this dodgy, looking candle. Is indecision. Right because the market opened and closed at the same level because if you if, you, read this uh candlestick. Pattern what is telling you there's the opening a close are, at the same level. Market. At one, point in time right this was the height of the session and at one point in time this is the lows of the session so, eventually right the highs and lows the market actually know when back to do where it open right so it's telling that there is someone in decision indecision.

In The markets and then. Finally right the third candle prize open and push. Up all the way up higher and finally closing, near, the highs so. If you look at the price. Section of this candlestick pattern or if you think about this is like first candle sellers Inc are in control push the price lower second. Candle buyers, and sellers there include in equilibrium. Cannot designer who gets, the advantage, so they're pretty much closer at the same level candle. By a step in right and say hey you know I mean Josh boom price. Close, near the heist so that's the meaning behind the a Morningstar. It's a bullish reversal, pattern, and the. Evening star is just the opposite right first. Candle buyers are in control closing, near the heights, second. Candle indecision, right Candace I know whether you know go, up will go down so that's why they closed in the, same level where they open on this, disc and over here opening close say the same level and Kendall. Morningstar. Right sorry. Bears come, in and push price lower closing near the lows so this is what we call an evening star a bearish, reversal pattern. And. Finally, tweezer top and bottom, right so a tweezer top right is this, one over here okay so. This is actually a tweezer bottom so let's talk about tweezer bottom first twist. The bottom basically right it's a it's a offseason. Because, it's actually showing you right rejection. Of lower prices, two. Times right, first. Rejection second. Rejection right so if you look at the price section again price open over here. At. One point in time right the sellers came, down all the way down lower tried em by a step in push price higher and closing year. Then. The, next can know the price open at this level cell let's try to push price lower once again right, near, the lowest rate you did previously over here couldn't. Exceed the lows just couldn't push price lower then, the buyers stepped in and finally closing, and the. Highs so this is a sign of strength right rejection, of lower prices in fact you. Rejected the price says, twice, right so this is a quite a strong pattern right shows you two. Times the price of rejection and. On. The other hand right this is a tweezer. Top right you can see that over here price, open. Over here and closed, here at one point in time it was at the height of this session before the sellers did push price quite a bit finally. Closing near, this, middle of the range of the candle, then. The next candle the price open here and the buyers quickly took charge God, rejected, in the same level or around the same level again before the sellers come in pushed the price lower and finally. Closing, near. The low so again two, times the price rejection, rejection, of higher, prices so this is a bearish. Reversal. Pattern. So. Now that you understand. Right the five powerful, candlestick, patterns how does this fit, into. The teh framework. Right, remember the T right trend. Area. Of value and the, entry trigger so now we really settle the entry trigger portion because the reversal, patterns, that you have seen earlier those. Are entry, triggers that you can use to enter the trade but. Before, you you know you, trade it right remember we said right don't trade it in isolation like this means that we have to use other factors, or other market, conditions, right to look for before, we, wait, for our entry trigger and the conditions that we look for is the K, framework that trend, and area, of value and, finally. The entry trigger so. Firstly right the trend so. What we are looking for is that if the, price is above the 200 ma we will have a long bias this means that we want to be a buyer in this market condition, if the price is below the 200 MA we'll have a shot buyers this means that we will only be looking to shop right so understand that when I define, the trainer it doesn't mean that just because the price is above the 200 period moving average it, doesn't mean you go along immediately, no no no this, is just to give you a bias a permission. That hey you know now it's time to be buying now it's time to be looking for buying. Opportunities. Okay so. Now that we have defined the trend a second thing we want to look for is area, of value right you wanna get a trait from an area of value when you go to a supermarket you.

Don't Be buying apples, right when you're selling tree apples for $30, you want to be buying apples, at 3 for $1 3 for $2 right getting, value out of it and it's, the same for trading right when you want to buy trip. From an area of value so an area of value could be stuff like support, and resistance, moving. Average trendline. Channels, etc etc, so I'm just gonna give you a few examples over here area of value and, the. Third thing is where we look for the entry trigger to enter the trade like for example the candlestick, patterns you've seen earlier engulfing. Pattern tweezer tops and bottoms you know and etc okay so now using this framework, we, can then formulate, trading, strategies, right to profit. In pull and bear, markets so, remember the first thing we are looking for the. Trend right if it's an uptrend we will only look to buy and we'll buy it either area of support moving. Average or upward trend line and then we look for an entry trigger right the entry trigger would be a bullish, reversal pattern, like a hammer, a bullish, engulfing pattern right. A dragonfly. Doji in a cetera does, it make sense okay, so now let's have a look at a few examples to kind of know bring. In this concept, together bring, all these concepts together. Example. One so. You can see over here right, I don't have the 200ma on the chart right but needless, to say the trend is down right because you can see that the market is moving from up, to, down so it's a downtrend, then. We saw that you know the price came into this area of resistance right, the way the, price of rejected wants twice, in a third time and at, that time over here you've got this entry, trigger so number one you look right you have the trend what, is the trend the, trend is down, number. Two do, you have the area of value. Yes. You do right this is the area of value we're at resistance, right. And I'm tree do you have your entry. Trigger let's call it e entry, trigger yes, you do have right this is a shooting star rejection, of higher, prices. So can you seen it now you're, not trading candlestick, patterns in isolation, now you're trading candlestick, patterns, in the context of the market meaning you're trading candlestick patterns, right based. On you know market. Structure based on the trend this actually increased the, probability of your trade working out so you can see that over here right, shooting. Star occurred at resistance in a downtrend okay, and the market did continue slightly. Lower so, one thing to point out is that the examples I showed you right are all pretty much winning trades but, in reality right you won't get all winning trades you will probably meet you know 50 percent winners 50, percent losers again the.

Reason Why I share winning trades because it's easier to illustrate the concept but again those chart or rather the chance you are seeing right now this are cherry-pick I admit right to illustrate the point I'm trying to make a cross but, in a real wall of trading right you won't have hundred percent winners somewhere, along 50%, 55% winners. So this is something that you must a kind of asset and embrace okay, so this is the first example. Second. Example, right. What is the trend of one. What is the trend train is well down right down train or I can see that the prices coming down lower number, two where, is the area of value this time around the area of value is a moving, average this is the 50 period moving average is acting as a dynamic. Resistance, I'm. A tree what. Is your entry trigger this. Time wrong we have this a bearish, engulfing pattern I noticed this over here market. Closed higher second. Candle smash. Lower closing you're the low so this is what we call a bearish engulfing pattern. Right. So we have treating someone train, area, of value and entry trigger and we can go short now having, our stops above this high somewhere here right, and the market, to. See, if the market can continue lower so now you can see that hey you know we're all trading with something that. That. Kind of makes sense right based on what, the market is telling you we're not just trading these patterns, blindly. In isolation. Example. 3 alright look at this right ask yourself again what is the trend what what is the Train well, uptrend, right series of higher highs and higher lows. If. You can't see this right just pull out your 200 ma right and chances are this one the price will be above the 200 ma so, anyway the trend is up second. Thing area, of value do we have an area of value to treat from well. Seems like it right because the price. Has been respecting me 50m in here here. Here. And here okay so number three entry. Trigger do we have an entry trigger well. Seems like it right we have a bullish engulfing pattern over, here a sign, of reversal rejection, of rejection of lower prices right price closed, higher engulfing, be for a scandal here. As well price, open and enclose higher above the first candle another bullish engulfing pattern so this is a bullish. Reversal pattern, then you can go, long right, not a bullish, reversal pattern, then you can go long and again we, are not going long just because we see a bullish reversal pattern, we go along because it's, in an uptrend from, an area of value. Right. Let's. Have a look at another example this. Time round right what is the, Train again what is the trend one look it's an uptrend, number. Two area. Of value where is it right if you look at the area of value we have this actually this trend, line support so, this time round it's not it's. Not a moving average or, support. Right it's a trend. Line upward. Trend line so you can see that over here in fact if you look closely this. Over here right you can actually plot a level over here, it's. What we call a previous, support. That EGIS resistance, this one and on top of it you have the confluence, of a trend line so your area of value now is there, are two things right I'm just call it x 2 1 is the trend line upward. Trend line support and the other one is the. Previous. Resistance again support right so this is strong area of value the, third thing what, do we have all. These engulfing pattern right, we have this right so this is your entry trigger again, the, Tay framework is met right uptrend, area. Of value entry. Trigger right this bullish engulfing is, a bullish reversal pattern. Ok. Another, example right I really want to do hammer in this consumer right so once, you can apply it right I would say that you know you can start finding right much higher probability trading.

Setups Instead of you know just blindly, trading these patterns. So. Again number one what, is the trend well down trend right, number. Two area. Of value, what. Is the area of value this, one over here right resistance, previous support acting, as resistance resistance. Okay. Number three what. Is the entry trigger I think, we've got something called knee tweezer top right as you can see that the price rejected. The highs over here one time then. You rejected here second time right and finally. Closing near the loo so this is a tweezer top Barry's. Reversal, pattern traders can look to go shot and. Stop-loss. Right, I typically set it a distance, away from the high side I want to set it immediately directly, above the highest because sometimes the market can just spike up higher and then reverse lower, alright so usually I give it some buffer put it somewhere here right, if. You notice I have not talking about target profits yet because this entire cost is about Candlestick patterns I don't want to go into trade management and target profits if not your run right for, a few hours right but generally, right if you are a swing trader what you can do is to capture the swing look, to take profits, right before, the, set. Before the buying pressure comes in so now you're looking to shop you want to take profits, right before where buyers. Would step in and push price higher so if you look at it right where, will bias come in right bias chances, are they will come in right in this area of support. So. You may want to take profits right before this, area of support okay so say. Your stop-loss is here your entry is somewhere here right and your target right could be somewhere here before. The, area of support so t p is. For entry and s, is for a stop loss all right stop-loss, entry, target, profit so this is something right you know how we can go about trading, this particular, market right, so this is for swing trading for. Position, trading what you can do just drill your stop-loss so I can use a moving average like a 20-period, moving average to trillium stop-loss if the price closes, above the 20 ma you exit the trade or in, this case right if the price breaks and close above the previous, candle high you, exit the trade as well so in this case right Kendall, did this. Candle over here break and close above this previous candle high so you exit somewhere here so, depending where you capture a swing or write a trend your, trade management will differ accordingly. Okay so but it's a video for another time but just to give you a brief introduction into you know trade management and exits. Example. Six all right let's have a look again right so again, at a framework number one what is the trend tell. Me right. The trend is down number. Two do we have an area of value where we can trade from right seems like the market is respecting, this are 50 ma all right and then. 30. Do we have a valid entry, trigger, to trade from oh yes, we have an evening star right price close, higher. Decision, Kendall and in smash lower reverse in the other lows so now Weaver the trend downtrend, area of value 50 MA and entry.

Trigger Is. This evening star bearish, reversal pattern, okay. One. Final example to really hammer home right bumper mama mom the concepts that you've learned today. Number. One what is the trend, Kranitz. Downtrend. Okay number two are. We trading from an area of value. Yes, we are previous, support I guess. Resistance, okay number. Three do. We have a valid entry trigger, to go short hey what is this this looks like an evening, star, alright so evening star right. Market. Closed higher ii can know somewhat of an indecision candle and entered, candle market closed lower alright, so yes we have all this, three criteria so min so, one thing to point out right is that, earlier. You've, seen that the I've shared with you the different, reversal candlestick, patterns and if you notice right, the. Evening star looks slightly different from what I shared earlier what I said earlier if you recall this middle, candle shows, a doji, where the price opening, close at the same level right where is this one over here there's, actually a slight body, where the price did close, higher slightly, and. This is important because what. I share with your earlier, the so-called textbook. Patterns. Right there, are always variations, to it in the live market so this is why it's so important, to understand. The candlestick, patterns not by memorizing, patterns, right but understanding, right what each candle mean by looking at the wick the body and, ready the body close relative to the wick so this is why I keep hammering that point earlier the 3-pointer body the. Wick and where the price close. Right for, the body relative, to the wick okay, so because in the real world of trading you won't get this textbook examples, right you won't get you know the opening close at this exact same price level sometimes gonna be a slightly higher open, sometimes. Gonna be a slightly lower closer and stuff I mean you. Gotta, understand right nuances, and variations, they can come with it right same for that you know tweezer tops and bottoms if you see earlier, the tweezer tops, right. That takes for example I share the highs right were able an exact, same level but for this example or this one the second candle the highest actually exceeded, the first candle again there are always variations. To it so, if you're a top of you, know die die you know memorize, the patterns then you couldn't have a really hard time because the market will, not give, you the exact textbook setup it's always comes in all variations, slight. Nuances, and changes along so you have to be prepared and you know really. Know, how to read candlestick patterns so that's why we spend some time right talking, about reading, candlestick patterns in the earlier part, of the video, okay. So, with that Citra let's. See. OK, we've covered this alright let's do a quick recap shall we whatever. So far we've spoken, about the TAFE rainwork right in the trend area. Of value and entry trigger right you look for these three things right you can't find high probability, trading setups in boom markets and bear, markets. There. Is spoke, about the. Candlestick. Patterns that you might want to pay attention to the N golfing, pattern the hammer shooting. Star doji, tweezer, tops and bottoms and morning. And evening star. Okay. So so. Now alright that's pretty much what we have covered so give me a moment, let me check, so. Yeah that's a recap. And really if you want to learn more, okay. You found a learn more about what I do what I recommend is you know you can go down to my website trading, with rainy or calm okay, if you can't find it this. Is it right you can go down to my website trading with rain or calm. Over. Here the link right, and you, found a little mobile the strategies, and techniques that I used to create the markets going download these two free trading guys okay, the lingo just so, over here I just go down to my website click, this blue button this one will share with you on techniques, on how to write massive trends in the market remember we didn't have time to talk about you know trailing stop loss and exit so this book over here will talk about how you can go about writing trends, in the market for. Price action trading right in the ultimate guide to price action trading this one will share with you on how you can better read the markets and better time your entries and exits pretty, much similar, to what you have learnt today but, in a more in-depth, manner so go to my website download these two trading guides click this blue button and I'll send it to your email address for, free okay, so that's it I've come to the end of this, presentation. I hope you've enjoyed it and if you really do please, write hit the like button smash, it bam bam bam bam right and subscribe to my youtube channel so you always be updated whenever I publish, content like this and finally.

Any Questions or feedback let me know below and I'll do my best to help so with that cigarette I hope you got value out of this presentation I wish, you good luck and good trading and I'll talk, to you soon. You.

2019-03-19 13:45

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Your video is very good. Well explained and in details. Two thumbs up for you sir.

Really good I learn a lot about candlestick pattern and how to read them. Thank you so much

Rayner, very good presentation. Would you apply these techniques to all time frames? Would you apply to all markets (stocks, futures, forex)? Thanks and I subscribed. mjh

What is 200MA

Great way to learn.. Very informative video

Awesome to hear that, sagar khade!

Thank you for this

May I know Wat is MA and how to find it chart area of value

MA is moving average there's 2 types of MAs Exponential and Simple. Only difference between both is Exponential reacts faster in the market than Simple but they are both very helpful.

Really a good view to know the candle sticks

Rayner, you are the best. Thanks so much for this mind blowing lecture.

My pleasure, Dr Iroegbu Ferdinand!

My God...What a way of explanation..One of the best cancel stick information..Thank you very very much.

17:00 I'm alittle confused, dont sellers want to SELL at a higher price and buyers push the price down when buying?

It isn't about what people Want to do, it is about what happens to supply vs demand at people buy all at once or sell all at once.

Rayner , do you day trade stocks between $2-$10 . What type of trader are you? thank you!

Although is is very educational and informative, less than 1% of traders will be able to master candlesticks and price action enough to become consistently profitable. Its too discretional, and it takes a certain kind of talent(?) to be able to gain an edge from this kind of trading because you simply cannot statiscally quantify its edge other than post trade performances.

Hi, I want to your suggestions on Forex Platforms? do you have some advice? I am beginner,thx

This guys explains everything waayy better than all this gurus, when I watch your videos I turn my Ad blocker off I’ll watch a few ads for you lol

Brilliant explanations buddy.. Subscribed.. God bless you.. just I have 2 questions.. firstly, at around 12.00 in the video you didn't explain how 2 hour pattern formed the opening and closing on the candlesticks.. m confused.. please explain .. secondly, Can these lessons be applied to the option trading ?? Or it will be different there ?? What should be the MA in the option trading of currencies ?? Plz respond asap.. Thanks in advance :)

Thanks a lot

Cheers ivoryjoy!

This really helps a lot.. thank you.... Love & Gratitude...

Just wanted to know while doing live trading timing of candle forming like 1 min,5min or 1 hr 2 hr which is suitable over here for intra day trading

This dude is a genius.

superb Content in the video...Thank you Rayner...

Cheers Bala Krishna!

Is there a reason 200 MA is used for the trend bias?

hi can you please tell me 200 ma u were talking about

just watching for the first 15 Min, i can definitely say that the content of the video is so high and easy to understand. there are only few youtuber who create such a quality content... thank a lot... it would be great if you can make a video on live trading with explaning the things happening during the trade. Thanks again Buddy....

Savage video

Really enjoyed this video. I love the simplicity in which candlestick patterns gets explained. I've found too many articles and videos who advertise as being for beginners, but the amount of jargon that's used only confuses you more than when you started out looking.

very useful video.

I am new to this, also attended a lot of talk about forex trading. Your explanation is clear as crystal. I hope you can also show how to make MA, and some indicators. Thank you.

Thank you for the nice presentation

Who did you get the first part from? name please?

youre a great teacher ty

how do i found area of value

Fantastic Video!

I don't understand what you mean by 200ma

Excellent video ... Rarely we see such kind of clarity ...

Cheers rakesh ranjan!

Very clear and nice explanation. Thanks a lot.


I understood everything!! Keep up the good work

Awesome to hear that, Ben Cruz!



super vedio.more helpful


This is very clear understanding video. I am very new as a trader. Can you suggest me what are best tricks to get profit.

Excellent video. Thanks a lot...

Cheers karthick shankar!

Very informative.. Worth watching.. Tnx, keep up the good work

Cheers eric senson!

hello Reyner... i like all your videos man.. hahahah when u say bulls r freaking coz they r on steroids..hahahaha for bullish engulfing


verry useful subject.good teaching style .love u brothr tank u

You're welcome, Upendra Patel!

Great video for beginners like me. Thank you for the good work!

You're welcome, Luxe Feel!

Man, I have been studying this for over a year, and THIS video was the best one I've seen. Not only that, but I understood it. You are amazing!

wow! Wow!....this is a kind of explanation i was looking for!!!...thanks you so much,how can i get more of your course ?

u have somethin great broo, i must subscribe

98% people won’t see this but I want to say... for the 2% reading this, I hope you become successful in life with everything you dreamed of, and accomplish more than you had imagined and have a nice day! And remember to stay positive, and don’t forget to smile! Stay Awesome

Hey Rayner does it matter if the candles are red or green in the hammer/shooting star? I feel like they don't because it's just upward or downward price rejection?

Thank you, Rayner. You are awesome for making this simple video. Thank you!

You're welcome, Sam S!

Nice explanation

Cheers gopi nathan!

Bro, I almost lost it when you said "Shooting Star" haha


Now you need a lot of patience, money, and persistence and stop loss protection to stay in the game

excellent rayner i like it. if you have any more on price action then please send it to me.

Rayner I just want to say thanks. I've been trying to learn candlesticks for the last 3 weeks and well it has been confusing. When you showed me the T.A.E. Framework, it just all the sudden made sense.

Awesome to hear that, Amazing Guide to Web & Graphic Design!

I echo all of the positive feedback on the clarity of this presentation. But, you say success probability is 50-55%. 50% means its a total waste of time. If its only slightly better than that you might have more fun playing Blackjack using Basic Strategy. Does anyone have any hard data on the effectiveness of this using these tactics? Or, better, the relative effectiveness of each pattern?

Awesome video.

Thank you, Tyler Carder. I appreciate it!

You are merely fantastic Rayner. Thank You.

Cheers Sagar Tachtode!

awesome presentation! Thanks!

You're welcome, Mark Bin Jude!

Thank you

i know im supost to be serious but the first second i was on the floor laughing my butt off!!!!!!

This is the open, This is the close. These are the highs, These are the lows.

I liked your presentation.

Leave it to an Asian to get it right. Smartest people ever.

Hello Rayner Teo, I am just a beginner in trading, lost money also because of lack of knowledge, now I saw your tutorial, the best one I ever seen. Thanks for sharing your knowledge...keep posting

Cheers prinil chandran!

Thank you very much. I could able to learn it.

Hello sir my name is vipin from india and i have seen your video sir from 2 weeks and i getting lot more knowledge but i am very serious about learn candlestick pattern give me some more study point please sir reply me

Hi Ray, thank you for this wonder lecture on candle pattern. now i can identify the TAE frame work. thank u and no more loses lol

Awesome to hear that, Kingsley friday!

very good! Thank you

Cheers Muhammad Nimji!

Can I ask you a question?. What do you mean by the “rejection “...

I paused this video in between just to give it a like. Thumbs up to you man! really enjoyed the video. God bless you.

Thank you, rahil kherani. I appreciate it!

Holy molly Rayner, very concise. Thanks!!!

Cheers Noel Jiri!

Great explanation and very informative

worthwhile to watch... Thanks dear

Hi Rayner. It's a delight to watch your videos. Days and months I was trading with losses..was ordering books, watching YouTube videos, studying charts and still making losses. Your single video made me realize what mistakes I was making, still have a long way to go. Thank you so much your practical approach and simple way of explaining is great. One of the best . Respect and good wishes.

Awesome to hear that, Mandy Talkies!

I am Muslim and from Pakistan and I loved the way you are teaching. Alas I found you after loosing so much

Just found you...thanks for the information … very clear.

Thank you for this video. Informative and you explained the concepts in an easy to understand manner.

You're welcome, Ken Shuart!

Very good presentation

Thank you, Benny Mshudulu. I appreciate it!

I am very new to this, so i might not be understanding correctly, but aren't you using the term "sellers" and buyers" backwards? for instance; in the shooting star explanation. wouldn't the price rejection come from the buyers and not the sellers? in my head the seller sets the price and it us up to the buyer to accept or reject.

I know right.... me too... isn't it backwards?

As as beginner today i have Learn alot

This was INSANELY insightful. Best video I ever watched. I knew nothing and I was able to absorb everything. Thanks homeboy. Subbed.

Thank you!


You're welcome, Michael Davis!

so much value in this one video. But really, 50% hit rate is as good as guessing.

Excellent video. Thank you so much.

You're welcome, Mandy Talkies!

nice experience in learning

Thank you for the class ! I love the way you explain and how you give plenty of examples to illustrate it all !

You're welcome, Sheogorathization!

Finally making profit now after 4 and a half years of losing thanks to simply trading strong trends only. 2018 was the first year my account actually grew and I didn't blow it up. Thankyou Reyner!!!!!! Your teachings are simple but very powerful.

Awesome to hear that, Gaius Caligula!

Can someone explain to me why the resistance lines are often placed so high above all the highs and the support lines so low below the lows? Wouldn't it make more sense if the resistance or support line would be directly attached to the highs and lows?

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Rayner, this is really well explained and thought out. I've learnt a lot, and taken notes. Thank you for making this.

You're welcome, Karuken Complex!

Great explanation brother!!! Hats off to your knowledge and your teaching skills...

Cheers Awsome CRICKET!

Amaising !! I will came back and tell you let me go for it!!

super explanation of candlestick pattern wow.

Cheers Anandharasan Mani!

Great explication! Good job, I will go to see your website

Hello anyone help me about trading business i dont have any money am jobless


Cheers Jonas Caballero!

My pleasure, Iyam Banguel!

What is MA?

bhaai cancel stick likha hain tu

@ 13:22 you meant go short?

One of the best educational video i have watched ..keep it up ..thanks

I'm new to trading, was using a trading app and saw these candles I had no idea what they met. Thanks to you I now fully understand.

thanks for your video

thank you very much for your tutorials on candle sticks patterns, it really open my mind

I would like a pdf version of what you did in the video so i can print it and study it more carefully offline. Great video btw.

Just take screenshots. I did the same.

Cheers مغزت را چارچ کن!

well explained but most of all very funny (buyers on steroids yea ;)

Great Video My Friend!

Thank you very much for this video, such a clear and simple explanation of how candles work. :-)

in your 4th example after 6 candles of where u have pointed there is a bullish engulfing pattern however the market has declined after this....does this mean the entry trigger points are not totally dependable?

Man you're a genius your explanations are 100% on point!!!!

very helpful..thank you

Excellent Reynar. I destroyed the like button! You earned a sub too.

Awsome video! Really appreciate it

ofc they are not

Why does it feels like im in the class

how do we fix the problem of different brokers having slightly different CANDLESTICKS. For example on trading view USD/CHF i saw a perfect setup. it was trending up, it was in Area of Value and then the entry trigger candle formed a Hammer but on OANDA that candle had no wick, the candles were slightly different compared to FXCM

Candles.... or Kendalls? LMFAO

Awesome to hear that, sunday kazzah awan!

You too!

thank you for your generosity, dude!! wish success always be with you

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I appreciate Mr Grant Cardone for his wisdom and especially how he keeps in track with the trends, More trades with Mr Grant and i would be able to use the relative strength index indicator know my personal rrading account.

I have been able to win multiple trades this week with the helpnof Mr Grant trading system.

He has wonderful strategies he uses to win a lot trades, no loss thanks to Mr Grant Cardone he is the best i have ever come across.

whenever you come across testimonies of traders who work with Mr Grant Cardone strategy, believe it Please for your own benefit I am earning what I thought was impossible, instead of doubting, contact him and see for your self.

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The knoledge Mr Grant his on strategies views intellectual supremacy over other binary trader experts. thank you, buddy, I did contact him, wow he's really a great teacher, I have started trading.

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Very good presentation thank u very much brother I have some doubts Whats the time frame for intraday and positional


Superb... Friend. I m from India.

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