The more time that you spend learning about day trading and technical
analysis, the more, these different terms come up and you guys have
heard it said before the price action is King.
One of the most useful tools that you can use when determining what
price is going to do is looking at Candlestick patterns a group of
candles together that tell a story of what price is doing and what
it's going to do next.
So, in this video, I'm going to give you 5 Candlestick patterns.
That are really going to change the way that you see the story of the
charts.
Welcome back to the channel, everybody.
My name's already and this is the moving average a show or we
discussed everything day.
Trading to keep you profitable on a consistent basis.
So I'm pretty sure that my intro says that all siliceous get into the
charts and start showing you some examples of how to find and see
these Candlestick patterns.
Okay.
So what I'd like you to do first is always start with a naked chart.
This is the best way to tell where the support and resistance levels.
Are because knowing what these Candlestick patterns are saying and
doing it's much more impactful when knowing where the key support and
resistance levels are.
So looking at the chart here.
Basically, you're just going to draw a horizontal line across every
single area that recently had some rejections and support.
Basically anywhere that there's a point just by having these few lines
up on your chart.
You're going to be able to see these different zones and use them as
ladders.
So as the
Rice went through these areas.
These were specific areas where the price rejected and or health
support.
So now going forward as the price starts going in between these lines.
These are going to be at your take profit areas.
Okay, so the first and probably most important Candlestick pattern is
a long Wick candle.
Now, I know this can be different with how you have your chart view
laid out.
But what I want you to do is look at the surrounding candles and see
what the average candle looks like.
Like in comparison to a long Wick and I'm going to show you what a
long Wick looks like even right here.
You can see this is a pretty long Wick in comparison to the rest of
what's on the chart here.
But let's say you start looking at the charts and it looks like this,
there's no candles past this point.
What I want you to do is wait for the price to come back up to this
level.
We should always be under the assumption that when price reaches a
level that it's previously rejected at that.
It's most likely going to reject at that point, but you need these
Influences in price action to determine whether you're going to enter
a trade at that level.
So as price comes back up to that level, what you're looking for is a
long Wick.
This is why day trading is a total patience game because you have to
wait multiple hours for price to come back to a certain level.
That's why I highly Advocate setting alerts, just drawing up at that
level and alert and your phone sends you a message when it hits that
level.
This my friends is a long way.
Like candle hitting that level showing a massive rejection off of that
zone.
That right.
There is your entry at the close of that candle for a short position.
Targeting the next Zone.
That's a 20 pip trade on Australian dollar US dollar.
Now, when looking at different take profit levels, you can check areas
where it's found resistance before here here.
And here always look left when you're looking at your targets.
So because this is such a small trade to the next support and
resistance Zone.
You can do is actually Target the next Zone down where we saw some
resistance taking this from a 20 pitch trade to a 50 pip trade.
But your main take profit area should be that key level that you
marked up.
Those smaller Zone trades, are usually going to hit take profit
faster.
And if you want a long-term hold that, you just need to monitor the
trade and have a trailing stop loss on it and or look for another long
wig candle.
Now, the next Candlestick pattern that I want to discuss with you guys
is called the engulfing candle.
They're also known
known as momentum.
Candles a lot of these things have different names, but I like to call
them engulfing candles because it literally engulfs the previous
candle.
Now, when a candle engulfs a previous candle, it doesn't always mean
that the momentum is going to shift right there.
But when a candle engulfs another candle at a previous support and
resistance level, it's way more important and significant than when it
happens in the middle of a zone.
So as price action is going up.
We are waiting for price to hit.
Is Zone and give us an indication of what it's going to do next?
You always have to wait for it to hit zones before you can get into a
trade comfortably.
So as we're getting closer to the Zone.
This is when you're waiting.
Basically for your app to give you a notification that prices, hit
this area.
Then you can hop on the charts and look for these specific Candlestick
patterns.
This right here is way more significant than this right here.
I know that this eventually went up, but if you had set your stop,
Loss below this engulfing, candle right here.
You would have been stopped out.
It's way better to set your trades, at Key support and resistance
levels.
So because we've already been in the trade that went through that
level coming back up to retest.
This is going to be another good entry point.
And at this point, you can Target that neck support and resistance
Zone.
Giving us a 20, pip stop loss and a 92.
Pip take profit.
Keep in mind though that this is a one hour time frame, sir.
You are
To be holding trades for a long time.
This is not scalping the next Candlestick pattern that I want to
discuss with you guys, is called the inside bar.
It's basically the opposite of the engulfing candle.
So as the price comes down to a key support level, but that candle
actually stays within the range of that one.
So it does not engulf it, it completely lives within that range that
shows a loss of momentum.
Meaning, the selling pressure has completely diminished.
Just letting you know, you should keep an eye out for a long position
here.
But this is not an entry candle.
This is just a candle to signify a loss of momentum at that zone.
So these candles are going to help, you know, when the momentum is
dying at a certain area.
Okay?
Now the next to kind of go hand in hand, so I'm going to group them
together for this example, basically as price is coming up or down to
one of these.
Key support and resistance zones, and it's starting to lose momentum
before it gets there.
You don't have these big fat ones, hitting it, and then rejecting off
of it.
You start to see this slow wean down of momentum and it usually
happens at the very end of a long move.
The candles go from this to this to this to this to this to this and
they start getting less and less prominent.
So you go from seeing these like massive.
Chunks of red getting smaller and smaller and smaller up until it hits
that support and resistance Zone.
And then, you know, you need to keep an eye out for a potential
reversal at that zone because of the loss of momentum.
And in conjunction with that when that usually does happen, that's
when you start getting these multiple long wick, candles multiple long
wick, candles at a specific zone is also showing that loss of momentum
that
Battle between the buyers and sellers because When Buyers start losing
momentum, what they're doing is closing their positions.
When a buyer closes a position, it becomes a sell order, then the
seller start coming in and start selling at that same level and it's a
double action Candlestick pattern where the buyers are stopping and
closing their positions selling and the sellers are coming in opening
their positions and selling.
Hope that made sense.
So multiple long Wicks at a support and resistance zones.
Known as well as the candles becoming smaller and smaller and smaller
these areas right here.
Almost guaranteed to show momentum shift in the opposite direction.
I get so many questions about price action and how to tell what the
price is going to do.
So, I'm going to try to make more videos about price action, different
Candlestick patterns to help you guys.
Really read the story of what these candles are telling you, because
every single candle is telling you something.
And when you can tie, what these
Candles are telling you at Key support and resistance levels and
combined them, like, these last two work together perfectly.
But if you can combine all five of these patterns in one level the
assurance that you're going to have on that trade is far greater,
allowing you to get that bigger take profit and hold that trade for
longer.
The more confluences.
You have, the more confidence you have in your trade.
I really hope this video.
Helped you guys out but what I really want you to do.
Do is prevent making the mistakes.
So the top 10 day trading, mistakes that I see on a daily basis that
people DM me, that video is right here.
And if you got some value out of this video and you like, the way that
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Thanks so much for watching and we'll see you in the next video.