3 Chart Patterns You Can Use to Trade Almost Anything -- Looking at the Markets with David Moadel
hello and welcome to looking at the markets with David Modell three chart
patterns you can use to trade almost anything not only can you trade almost
anything such as crypto currencies currency pairs forex stocks commodities
indexes gold that kind of thing but also you can use these three chart
patterns on almost any timeframe whether it's daily candlesticks or one-minute or
two-minute 5-minute four-hour candlesticks even weekly candlestick
charts these should all be effective and powerful they do not work 100% of the
time they are not perfect so make sure that you make your own decisions and be
careful respect your stop losses okay and do not over leverage yourself over
leverage yourself don't trade too much at one time I don't want you to get hurt
in the markets okay all right so let's start with number one here we go the
hammer candle and gap up this is such a great chart pattern right here let's say
and this is Apple stock the one day daily candlestick chart but again these
patterns can apply to almost any timeframe
okay so you got Apple stock day after day going down down down down could
there be a reversal about to happen though well check out this hammer
candlestick right here you got a small body and a long lower wick or shadow as
they call it okay that means that the sellers tried to push down the price but
they failed because then before the period was over before the day was
finished the buyers stepped in and bid the price right back up okay almost to
the top of the day all right so that's a great sign now you might want to use
confirmation though a hammer candle at the bottom of a downtrend that's
but you might want some confirmation just to make you feel that this is
really going to go up okay no guarantees but this can increase your probabilities
sometimes so let's look at the next candle a gap up okay you see how there's
a white space there the next day the next period started up here that's a gap
up after the hammer candle you had a gap up now if you have the volume bars here
on your chart let's say and let's say you had a big green volume bar down here
below the gap up candle that's possibly even more powerful that could be even
more confirmation for you because big green volume that could mean conviction
behind the move a lot of participation a lot of shares being bought okay
but we don't see that here we're just looking at the two candle pattern the
hammer at the bottom of a downtrend and then a gap up and by the way this also
has a nice big green body on the candle as well that is pretty good confirmation
as far as I'm concerned no guarantees it's going to go up after that but look
what happened on this Apple chart it did because that that's two signs right
there that the buyers are stepping in and taking control back from the sellers
okay so that's the first chart pattern I have two other really powerful ones that
I like a lot okay so stick around for those first when people ask me I want to
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number two and number three we have the patterns the chart patterns
this is chart pattern number two bullish engulfing candlestick after a swing low
so this is Apple again but this is the 1-minute candlestick candlestick chart
okay but all these patterns I'm mentioning today you can try them out on
daily candlestick charts 1 minute 2 minute 5 minute for our weekly charts
daily whatever you like ok so this is a one-minute candlestick chart and you had
Apple stock going up but then a swing low oh but how do I know well you never
know for sure but when can I get some confirmation that maybe the swing low is
finished and I can buy well look at this look at these two candlesticks right
here a bullish engulfing pattern is a two candlestick pattern you have a
smaller red candle and then a bigger engulfing green candle right there
that's the buyers stepping in and taking control back from the sellers okay what
is engulfing mean I'll give you a quick review right now look at the body of the
candlestick the body of the bigger green candle is lower than the bottom of the
body of the red candle so the bottom is lower and also the top of the body is
higher of the green candle compared to the smaller red candle so entirely in
the green candle entirely engulfs or is bigger than top and bottom the preceding
red candle the red candle before it okay talk about buyers stepping in and taking
control back that is pretty powerful now if you put again the volume bars below
the candles that can give you even more confirmation if there's a big green
volume bar below it that could be even more confirmation that could tell you
there's conviction in the move okay and what happened afterwards boom right look
at that up and up and up it does not happen like that every single time but
you know that's pretty good confirmation IRA
I like it right there okay now if you want to wait for the next candle for
even more compliment confirmation notice there was a gap up there okay
so that's another good sign all right but bullish and golfing after that swing
low could be a reversal pattern could be a bottom oftentimes not always but
oftentimes and the third one is the long-legged
doji candlestick to signal a possible reversal so here we have Apple 1-minute
chart once again all right up but then a swing low as they say okay we got it
down down down five five red candles in a row notice that last red candle though
it's kind of small the body is kind of small hmm interesting
okay could that be were a reversal I don't know if that's enough confirmation
for me let me look at the next candle look at that a long-legged doji what is
it doji when the body of the candle is flat that means that the stock or
whatever it is opened and closed and around the same price or even exactly
the same price sometimes either close to or exactly the same price open and
closed all right and so when that happens you get a more of a flatline
okay not much of a body at all all right that
signals indecision and possibly a reversal pattern okay now why is it a
long-legged doji candle well its doji because you got that flat body but it's
long-legged because you got a long upper wick and a long lower wick so yes you
have indecision and possible reversal pattern in the making but you also have
a lot of movement because you have that big upper wick and the big lower wick
that's a lot of movement in one candle all right in one period of time a lot of
movement so that could mean explosive action possibly coming all right
possible reversal with possible big moves coming and that's exactly what
happened boom right first of all look at the next look at the next two candles
big green bodies on those candles and it just kept going alright so if and again
if you want to wait for confirmation you can you can look at the next candle to
see if it's a green one and if it's got a big green volume bar below it that's
possibly even better that's possibly even more confirmation but if you ever
wanted confirmation this is pretty good right here look at the size of the
Candle they're green and large all right that's pretty good confirmation and so
you may not want to buy on the long-legged doji you may want to wait
for the next one to see if the buyers really are ready to step in and again
look for the volume too if you want to alright so those are three great chart
patterns you can use them for so many things
crypto currencies stocks indexes commodities
alright Forex currency pairs the dollar whatever it is you're trading you can
use it and if you want a great way to trade those then you can go to the link
in the description below this video and click on that link and it'll take you
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alright my name is David Modell this is looking at the markets and I'm going to
keep on bringing you great ideas that you can try out on your own just be
really careful respect your stop losses don't over do not over leverage yourself
just be really super cautious with your trading thank you so much for watching
and listening I will talk to you again soon