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Talisman of Candles: All Candlestick Patterns 1 - YouTube
Channel: Trading School
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[Music]
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hello everyone from trading school
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we are with you again with a new video
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today we're going to tell you about
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candlesticks patterns
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it is said that the japanese use
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technical analysis to trade rice in the
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17th century
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minahiza homa a rice trader is alleged
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to have shaped his trade by recording
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prices that oscillated throughout the
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year
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since homeless trading strategy was
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based on understanding the psychology of
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traders in the market it meant that he
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had to see what the price of rice was
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every day
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so he could see if the price action of
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that day were causing a candlestick
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pattern to form
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because of this he is considered the
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father of the candlestick chart
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so why are candlesticks so important
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candlesticks are at least as important
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as other technical analysis methods such
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as chart patterns indicators
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in times of indecision when trading
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sometimes a candlestick will make your
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job much easier
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like chart patterns candlesticks have a
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language and tell traders many things
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so what information can we have by
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looking at candlesticks
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open high low and closing values of
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prices
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whether there is instability in the
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market what is the trend direction
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whether there will be a trend reversal
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volatility volume and momentum and many
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more can be learnt
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so how are candlesticks formed
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candlesticks consist of opening high low
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and closing values
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the green candle occurs when the closing
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value is above the opening value
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the red candle occurs when the closing
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value is below the opening value
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the highest level of candlesticks refers
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to the high value seen during the period
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and the lowest level refers to the low
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value seen during the period
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the area between the opening value and
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closing value is known as the body or
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the actual body
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the extensions below or above the body
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are given names such as shadows needles
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wicks
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the wick shows the highest and lowest
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traded prices of a security during the
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relevant period
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a reminder
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not always the shadow needle or wick of
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the body is formed
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even the body in some cases can form in
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the form of a horizontal line
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candlestick chart example is as in the
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image
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it is possible to divide candlestick
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patterns into two simple candlestick
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pattern and complex candlestick pattern
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simple candlestick pattern refers to
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patterns consisting of a single
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candlestick complex candlestick pattern
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refers to patterns consisting of
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multiple candlesticks
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in this video we will explain the simple
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candlestick pattern
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now we can move on to the details of
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these patterns
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big green candle
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it has a wide range between opening and
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closing values and an unusually green
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elongated body
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prices open low and close high it is
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considered a bullish pattern
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big red candle
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it has a wide range between opening and
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closing values and an unusually red
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elongated body
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prices open high and close low
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it is considered a bearish pattern
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do g is a model commonly found on
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candlestick charts
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it is formed when the opening and
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closing prices are the same
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it is characterized by being tall
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but the length of the shadows may vary
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do js are a sign of market instability
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a do g is not that important if there is
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no clear trend in the market
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because non-trending markets are
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naturally an indicator of instability
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if the do g is formed in an uptrend or
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downtrend this is normally seen as
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meaningful
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it can be thought that buyers lose faith
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when it occurs in an uptrend or sellers
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lose faith when it occurs in a downtrend
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a do g formation within an uptrend does
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not mean that sometimes price movements
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will reversal
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in such cases buyers and sellers are
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equivalent
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the trend continues in the same
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direction with buyers eventually
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prevailing
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the example of do g which does not
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affect the trend is shown in the image
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as can be seen although the do g was
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formed prices continued to rise
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the same rules apply in a downtrend
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in such cases it would be more correct
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to see the confirmation candle for
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trading
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the confirmation candle is the signal
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candle that forms after any candlestick
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long-legged doogee
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a doogee with a very long upper and
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lower shadow
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this stoogee reflects a great
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ambivalence about the future direction
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of the financial asset
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an example of long-legged doogee is
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shown in the image
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when it is seen at the top of the price
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movements it is considered a bearish
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signal
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dragonfly doogee
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it occurs when the opening and closing
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prices are at the highest level of the
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current period
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if it has a lower shadow it tends to
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move higher
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when it is seen at the bottom of the
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price movements it is considered a major
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bullish signal
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an example of a dragonfly doogee is
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shown in the image
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after the formation of the dragonfly do
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g it is seen that prices rise
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gravestone do
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it occurs when the opening and closing
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prices are at the lowest level of the
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current period
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if it has a longer shadow it tends to
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decline more
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when it is seen at the top of the price
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movements it is considered a major
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bearish signal
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an example of a gravestone do g is shown
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in the image
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after the formation of the gravestone do
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g it is seen that prices fall
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hammer
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a red or a green candlestick that
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consists of a small body near the high
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with a little or no upper shadow and a
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long lower shadow
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it is considered as a bullish pattern
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during a downtrend
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whether the body color is red or green
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does not change the expectation
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the candlestick is called by this name
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because it looks like a hammer
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because it has an elongated lower wick
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and a short body
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on the body maybe a small upper wick or
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not at all
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most traders believe that for a candle
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to be a valid hammer the lower wick must
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be at least two times or three times
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larger than the candle body and the body
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of the candle must be at the upper end
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of the trading range an example of the
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hammer is shown in the image
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after the formation of the hammer it is
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seen that prices rise
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hanging man
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the hammer is the same as the
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candlestick
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the difference is that it is seen during
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the downtrend
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it is considered as a bearish pattern
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during an uptrend
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the lower shadow should be two or three
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times the height of the body
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most traders believe that for a candle
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to be a valid hanging man the lower wick
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must be at least two times or three
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times larger than the candle body and
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the body of the candle must be at the
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upper end of the trading range
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an example of the hanging man is shown
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in the image after the formation of the
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hanging man it is seen that prices fall
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inverted hammer
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it consists of green or a red
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candlestick in an upside down hammer
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position
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it is considered as a bottom reversal
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signal that needs confirmation on the
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next candlestick
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in other words it is a signal that there
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will be a rise in prices
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most traders believe that for a candle
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to be a valid inverted hammer the top
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wick must be at least two times or three
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times larger than the candle body and
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the body of the candle must be at the
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upper end of the trading range
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an example of the inverted hammer is
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shown in the image
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after the formation of the inverted
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hammer it is seen that prices rise
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spinning top
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it has a small green or red body which
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is in the middle of two long wicks
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the length of the wicks may vary
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it is seen in unstable markets where
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buyers or sellers cannot dominate
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it is ntr period as a neutral candle but
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becomes more important when it is part
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of other formations
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when seen in the overbought zone or
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oversold zone it can be interpreted as a
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reversal pattern
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an example of the spinning top is shown
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in the image
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long lower shadow
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under a green or red body it is the
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formation of an elongated shadow
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this shadow has a length of two thirds
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or more of the length of the candle
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normally the price is considered a
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bullish signal when it is seen around
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the support levels
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an example of the long lower shadow is
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shown in the image
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after the formation of the long lower
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shadow it is seen that prices rise
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long upper shadow
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on a green or red body the formation of
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a long shadow is formed
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this shadow has a length of two-thirds
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or more of the length of the candle
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normally the price is considered a
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bullish signal when it is seen around
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the resistance levels
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an example of the long upper shadow is
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shown in the image
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after the formation of the long upper
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shadow it is seen that prices fall
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green marabozu
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in some cases the candle consists only
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of the body
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the current trading period is dominated
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by buyers
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there is little or no shadow formation
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above or below
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such formations are called maribozu
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which means marvel diagram in japanese
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the trend is interpreted as a
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continuation pattern
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in other words if the mariboza color is
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green it is thought that the prices will
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rise on the next candlestick
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an example of green maribozu is shown in
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the image
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red marabozu
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in some cases the candle consists only
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of the body
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the current trading period is dominated
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by sellers
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there is little or no shadow formation
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above or below
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the trend is inter-pyrated as a
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continuation pattern
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in other words if the marabosa color is
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red it is thought that the prices will
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fall on the next candlestick
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an example of red maribozu is shown in
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the image
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shooting star
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it consists of a green or red candle
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with a small body
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it has a long upper shadow
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it may have a short lower shadow or it
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may occur without a shadow
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a shooting star which looks like an
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inverted hammer occurs in uptrend trends
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and is considered a downtrend
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an example of the shooting star is shown
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in the image
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after the formation of the shooting star
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it is seen that prices fall
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we have come to the end of our video
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here
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the candlestick patterns described so
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far were patterns consisting of a single
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candlestick
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don't forget to watch our next video for
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candlestick patterns consisting of
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multiple candlesticks
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