Boot Camp Day 2: Candlesticks — Transcript

Full transcript

1. 0:00welcome to day two
2. 0:03um day one clearly was not too difficult
3. 0:06you just had to sit there and watch me
4. 0:08cry like a little [ __ ]
5. 0:10um but here we are day two we're
6. 0:12actually looking at charts
7. 0:14um but you probably won't learn much
8. 0:17again because this is going to be a
9. 0:19video from scratch but you will gain or
10. 0:22sorry this is going to be a course from
11. 0:24scratch
12. 0:25um
13. 0:26but you will gain a couple things I'm
14. 0:27going to toss in some little tips that
15. 0:30you know you probably didn't pick up
16. 0:31when you were a beginner
17. 0:33um that can help you along the way so
18. 0:35today we are going to be talking about
19. 0:38candlesticks and price movement and
20. 0:40understanding price movement within
21. 0:42candlesticks Okay so
22. 0:44right we're on the S P 500 right now and
23. 0:46pretty much every single chart you're
24. 0:48going to have is going to look like this
25. 0:50uh wow
26. 0:52okay
27. 0:53uh pretty much every single chart is
28. 0:55going to have you know candlesticks like
29. 0:57this right you can click through
30. 1:01uh whatever ticker symbol you want
31. 1:06and you'll see candlesticks okay
32. 1:09and these candlesticks describe price
33. 1:11okay how do they describe it okay
34. 1:15through bodies and Wicks okay these are
35. 1:17called candlesticks because they leave
36. 1:19Wicks okay and these candlesticks tell a
37. 1:22story so
38. 1:24with that being said let's move over
39. 1:25here
40. 1:27and draw our own little candlesticks
41. 1:32okay
42. 1:40and I know you're probably thinking oh
43. 1:42my God I don't need to learn about
44. 1:44candlesticks I know you don't
45. 1:46okay I know you don't but this is going
46. 1:48to be beneficial Trust
47. 1:51okay
48. 1:52so these are two candlesticks okay let's
49. 1:56say
50. 2:00bro
51. 2:01how do I
52. 2:08okay whatever
53. 2:10anyways okay
54. 2:12ready so we have two candlesticks let's
55. 2:15let's uh dude I wish I could color this
56. 2:18thing
57. 2:19um
58. 2:22okay ready this one is going to be a
59. 2:24down candle
60. 2:25so I'll color it in like this actually
61. 2:27that looks terrible
62. 2:29forgive me we're going to make this oh
63. 2:32here I'm so stupid there
64. 2:37there we go that's a down candle
65. 2:41this is an up candle cool cool okay so
66. 2:45we're going to do a quick quick a quick
67. 2:48overview
68. 2:50of what these candlesticks represent
69. 2:52what the opening the close represents
70. 2:55what the body represents and what these
71. 2:56little Wicks that they leave behind
72. 2:58represent okay so first of all
73. 3:01understanding candlesticks okay we need
74. 3:04to understand what time frame we are
75. 3:05there are so many little different time
76. 3:07frame time frames up here that I'm
77. 3:09scrolling through right one minute two
78. 3:11minutes three minutes five minutes seven
79. 3:12eight whatever okay
80. 3:15and if you're very new you're probably
81. 3:17saying well what what do those things
82. 3:19mean that represents the time that it
83. 3:22takes for the Candlestick to close Okay
84. 3:26so if we are on the five minute chart
85. 3:28which we are on currently
86. 3:30if one of these let's write let's just
87. 3:33say this is an actual Candlestick within
88. 3:34the chart one of these candles this
89. 3:38candle represents five minutes
90. 3:41of price action of price movement okay
91. 3:45and the reason why these candlesticks
92. 3:48are so beneficial is Buzz is because we
93. 3:52can read and see
94. 3:54exactly what price did within those five
95. 3:58minutes with just this one Candlestick
96. 4:00okay oftentimes I can even be able to
97. 4:04understand and pretty much just guess
98. 4:07what is going on on one minute structure
99. 4:11just purely based off of a five minute
100. 4:13Candlestick or two five minute
101. 4:15candlesticks and once you get good at
102. 4:18this you'll understand how to do that as
103. 4:21well
104. 4:22um but
105. 4:23okay we're on the five minute time frame
106. 4:25one candle represents five minutes of
107. 4:28price action and market movement okay so
108. 4:32when we see a green candle or a bullish
109. 4:34candle okay we see that it goes up and
110. 4:38it ends right up here
111. 4:40okay
112. 4:41green means boom price went up right
113. 4:44everyone knows a green candle means up
114. 4:46in a red candle means down so in this
115. 4:49instance price opened right here where
116. 4:52the body of the candle starts and it
117. 4:55closed at that five minute Mark right
118. 4:59here okay
119. 5:01so
120. 5:04boom
121. 5:05right here is the open and boom right
122. 5:08here is the close
123. 5:10okay we can put this thing down oh oops
124. 5:13shrink
125. 5:19the clothes and
126. 5:23the open
127. 5:25cool cool okay now what do these little
128. 5:29Wicks that are left behind mean that
129. 5:32shows where price went during that five
130. 5:35minute duration of time okay but it
131. 5:39never ended up closing there it just
132. 5:40shows where price went right it left a
133. 5:42little snail Trail okay it's like
134. 5:45um
135. 5:46like you take a [ __ ] and you put on your
136. 5:49underwear and it's like super white like
137. 5:53brand new Calvin Klein underwear and
138. 5:56your [ __ ] from from a minute ago left a
139. 6:02little snail Trail it's showing that you
140. 6:04did go take a [ __ ]
141. 6:06um I I to be honest I don't know how
142. 6:08this relates to this but anyways okay it
143. 6:11shows where price went so that means
144. 6:13right if if there's a wick all the way
145. 6:14up here that means within this five
146. 6:16minute candle yes it didn't close up
147. 6:18here but price moved up to this point
148. 6:22okay and then same thing with here
149. 6:25okay down here was the lowest price
150. 6:28point that price went Within These five
151. 6:31minutes so now we know okay this is the
152. 6:33highest point it went to
153. 6:35and this is the lowest point it went to
154. 6:38okay same exact thing on a bearish
155. 6:42candle
156. 6:46okay
157. 6:47just slightly different okay instead the
158. 6:51open is up here
159. 6:53okay and the close is down here
160. 6:57okay so the close on a bearish candle is
161. 7:00lower obviously and the open on a
162. 7:03bearish candle is higher okay remember
163. 7:07oops
164. 7:08and again right up here is the highest
165. 7:11point that price was able to go to
166. 7:14okay and down here was the lowest point
167. 7:17that price was able to go to
168. 7:19perfect candlesticks [ __ ] simplified
169. 7:21by tjr now we can get rid of this
170. 7:24[ __ ]
171. 7:25okay now we are going to talk about
172. 7:28Candlestick patterns and and I know what
173. 7:31you're going to say you're probably
174. 7:32going to say whoa tjr
175. 7:35whoa whoa whoa whoa whoa whoa whoa whoa
176. 7:41what the [ __ ] I thought you hate
177. 7:42Candlestick patterns I do I hate the
178. 7:45ones the Candlestick patterns that are
179. 7:48based off of mountain tops [ __ ] W's
180. 7:54Head Shoulders that [ __ ] is BS I also
181. 7:58hate Candlestick patterns I really hate
182. 8:01every single Candlestick pattern that is
183. 8:03more that that contains more than two
184. 8:05candles
185. 8:06the only Candlestick patterns I like
186. 8:09because they can actually show you price
187. 8:12action and dictate where price is going
188. 8:14to go are the single Candlestick
189. 8:17patterns okay so let's look up
190. 8:21if this thing will load
191. 8:25candle stick
192. 8:29patterns cheat sheet
193. 8:33hopefully this pulls up the single
194. 8:34candlesticks
195. 8:37um okay good it has some of them on this
196. 8:39all right
197. 8:42let's pull this thing up and let's zoom
198. 8:44on in okay
199. 8:46so first of all we don't give a [ __ ]
200. 8:50about this entire top row okay I also
201. 8:53don't give a [ __ ] about anything in here
202. 8:58anything in here anything from here and
203. 9:01below I only care about doji's
204. 9:04long-legged doji's long-legged dojis and
205. 9:07doji's are the same thing okay
206. 9:09cross doji's and inverse cross doji's
207. 9:12dragonfly doji's hammers okay
208. 9:16those are the only things I care about
209. 9:18okay just this row forget about all this
210. 9:21[ __ ]
211. 9:22this is garbage okay no we don't give a
212. 9:24[ __ ]
213. 9:25all right just focus on this row right
214. 9:27here okay and why are we going to be
215. 9:29talking about this okay it's because
216. 9:33these candlesticks are showing price
217. 9:36action and showing where price rejected
218. 9:40and where it didn't okay so if I can
219. 9:44honestly just find these on the chart I
220. 9:46don't know why I pulled that up um but
221. 9:50with a candle this is just like a
222. 9:52perfect example with a candle like this
223. 9:55one right we see price opens right here
224. 9:59it doesn't go low right it pushes all
225. 10:03the way up to this point but then closes
226. 10:06down here
227. 10:07okay this candle is essentially saying
228. 10:10to me okay we have strong bowls but not
229. 10:14strong enough to close
230. 10:18damn not strong enough to close all the
231. 10:21way up here or here or here or here we
232. 10:24left a fat ass Wick up here meaning it
233. 10:27was not strong enough to close above
234. 10:29whatever was residing above here and
235. 10:33more than likely it was taking this
236. 10:35liquidity
237. 10:36okay
238. 10:39so
239. 10:40right we knew that price pushed up close
240. 10:45still bullish
241. 10:46but there was weakness because it
242. 10:48couldn't finish out this candle right
243. 10:51now
244. 10:53let's find another example okay
245. 10:56um
246. 11:02right here okay similar situation but
247. 11:05with a doji usually doji's which are
248. 11:08just small bodies of candles okay so
249. 11:11when a candle looks like this
250. 11:16doji's are great for reading price
251. 11:19action okay it's usually small body long
252. 11:21Wicks or just just small body of a
253. 11:25Candlestick in general okay
254. 11:28looks like this okay something like that
255. 11:31of some sorts okay probably not that
256. 11:33long of candles of Wicks but you know
257. 11:35what I get you know what I'm getting at
258. 11:37anyways doji's are great because they
259. 11:40can show us indecision in the market and
260. 11:43indecision with a bias in One Direction
261. 11:45okay so when we see this bearish doji
262. 11:49right we're obviously not taking a trade
263. 11:51off of this but we need to be able to
264. 11:52read the candlesticks right these are
265. 11:54these small things that that intuition
266. 11:56can build that that experience builds by
267. 11:59being able to see and read these
268. 12:00candlesticks when most people aren't
269. 12:02able to do that most people are saying
270. 12:04liquidity was swept we broke structure
271. 12:05but you guys can't even read these
272. 12:07candlesticks you don't even understand
273. 12:08what these are saying to you and they're
274. 12:10telling you a lot of information
275. 12:13okay so this Candlestick in particular
276. 12:15right we see Boom Big sell-off down here
277. 12:19okay and then we get to this candle okay
278. 12:21we get long Wicks to the downside
279. 12:24but not a full body close right we don't
280. 12:28see a a a big body close to the downside
281. 12:32means we're losing bearish momentum okay
282. 12:35and as you can see we did lose it we
283. 12:37start consolidating pull up a little bit
284. 12:38higher and then nothing [ __ ] happens
285. 12:40after that right so we lost bearish
286. 12:43momentum with this candle we can see
287. 12:46that through the long Wick to the
288. 12:48downside and then it failing to close
289. 12:51lower in a regular sized candle right
290. 12:55this is a doji this is showing
291. 12:56indecision within the market
292. 12:58okay
293. 13:01again right we we we see the long
294. 13:04extension of a wick to the upside all
295. 13:07right showing that hey you know we we
296. 13:11pushed all the way up here but we failed
297. 13:13to close above here right
298. 13:17we failed to close above these price
299. 13:19points and then what happened we fell
300. 13:22okay but this is not something you take
301. 13:24a trade off of this is just slowly
302. 13:26learning and understanding okay these
303. 13:29candlesticks and what they're trying to
304. 13:30tell you okay let's go over to gold gold
305. 13:33can give us
306. 13:34um some some great momentum some great
307. 13:38volume and also shows us some great
308. 13:40Candlestick patterns okay
309. 13:44let's go to the Daily
310. 13:51where are we at
311. 13:55huh
312. 13:57okay
313. 14:00right here okay this is a great example
314. 14:02okay we push up we come down okay yes we
315. 14:07formed a bullish doji
316. 14:09right this is a doji candle however
317. 14:13right
318. 14:15we've we failed to push up completely
319. 14:17yes we see strong rejection to the
320. 14:20downside and yes we do see closures to
321. 14:22the upside okay this is why we cannot be
322. 14:25taking
323. 14:27trades purely off of Candlestick
324. 14:29patterns because this this is only one
325. 14:31confluence
326. 14:33okay yeah we see boom super strong
327. 14:36rejection to the downside with this Wick
328. 14:38and then we close bullish still right
329. 14:40but we're in a downtrend we are
330. 14:43continuously breaking structure to the
331. 14:45downside
332. 14:48okay
333. 14:49so that's an example of where we can't
334. 14:52we can't let our bias get [ __ ]
335. 14:55get lost in these patterns okay the
336. 14:58these are very very minimal in what you
337. 15:01need to trade but it is good to
338. 15:03understand and to know and to learn
339. 15:06these if you don't know them already
340. 15:08they're fairly simple you really just
341. 15:10have to know right a [ __ ] strong
342. 15:14close which is what literally a regular
343. 15:17Candlestick looks like to you so like
344. 15:18this candle for example is a just a
345. 15:21strong close right it's full
346. 15:24it's full it has not many not a high
347. 15:28Wick
348. 15:29um to the upside if anything a highway
349. 15:31to the upside on this candle would be
350. 15:32even more of a reason for it to be a
351. 15:35strong close and then also right the the
352. 15:37wick to the downside is fairly small
353. 15:39again compared to the body right so we
354. 15:42had a move to the downside and we were
355. 15:44able to close and continue down right
356. 15:47and it wasn't just
357. 15:49a wick to the downside and then I move
358. 15:52back on up showing weakness
359. 15:55okay
360. 15:57let's just keep going through and
361. 15:59spotting these on um on the chart
362. 16:05okay again right this candle
363. 16:10this is a great
364. 16:12wow great example of something of of
365. 16:15something where like we see liquidity
366. 16:17get swept in almost like a confirmation
367. 16:19candle
368. 16:20okay right we see this long long Wick to
369. 16:22the downside price
370. 16:24at one point remember guys we have to
371. 16:26understand that price was opened here
372. 16:29so at one point in time during this week
373. 16:32price was literally a big
374. 16:36red candle
375. 16:40from this point down you PR right
376. 16:43everyone probably thought this [ __ ] is
377. 16:45going to the floor
378. 16:47right because and this is where like
379. 16:50your head headspace can [ __ ] get [ __ ]
380. 16:52up because people get so caught up in in
381. 16:55the candle that's forming and not the
382. 16:58candle that has formed okay we can only
383. 17:02make bias and decision on candles that
384. 17:05have formed not candles that are forming
385. 17:08okay that's why we always wait for a
386. 17:10close for a break of structure
387. 17:13right we have to wait for that
388. 17:14Candlestick to close because right it's
389. 17:18not an actual candle until price action
390. 17:20is done within you know whatever time
391. 17:22frame that we're on
392. 17:24okay so this candle for example we get a
393. 17:27strong rejection to the downside right
394. 17:29price pushed all the way down here but
395. 17:31then nope was able to first of all opens
396. 17:35down here comes all the way down here
397. 17:37and then rallies all the way back up to
398. 17:39this point and closes up here
399. 17:43that is a very very strong bullish
400. 17:46candle right we see
401. 17:49massive Wick to the downside tiny Wick
402. 17:53to the upside meaning it literally
403. 17:55closed almost as as bullish as it could
404. 17:58have right on on most bullish candles
405. 18:01you're going to get some sort of Wick or
406. 18:03and on most bearish candles you'll get
407. 18:05some sort of Wick
408. 18:06um to the top side or to the downside
409. 18:07but when it closes so fully like this
410. 18:10with a strong rejection to the downside
411. 18:12that is telling you
412. 18:15a bunch that's telling you a thousand
413. 18:17words right that candle is is telling
414. 18:21you exactly where price wants to go okay
415. 18:23what does price end up doing rallies
416. 18:25higher takes out these highs Etc
417. 18:28okay
418. 18:29so
419. 18:31this is all that I want you to do for
420. 18:34today I know today boring as [ __ ] boring
421. 18:37as hell you're probably like what the
422. 18:39[ __ ] but
423. 18:40right we're starting from the beginning
424. 18:42we're starting from Clear slate okay
425. 18:44trust me we're going to bring you guys
426. 18:46up with this and it it'll go it'll get
427. 18:49going a lot quicker than you think okay
428. 18:52so
429. 18:54price
430. 18:55or sorry all that I'm asking you to do
431. 18:59is get on whatever chart you trade okay
432. 19:02whether it's SPX g-u GJ whatever okay
433. 19:06get on whatever pair that you trade okay
434. 19:11get on whatever pair that you trade
435. 19:14and just spot these and see how Market
436. 19:17reacts like literally just being on this
437. 19:19chart I can I can see two
438. 19:21boom massive Wick rejection to the
439. 19:24downside still not a good close but what
440. 19:27happens next we do get a full bullish
441. 19:29close boom rallies takes out these highs
442. 19:33right okay
443. 19:35similar to this right we have a doji
444. 19:38long candle or sorry long Wick to the
445. 19:42downside bullish clothes right here to
446. 19:44the upside right we can use these two in
447. 19:47Confluence together
448. 19:50right we have this full candle and then
449. 19:52this doji with a big wick to the
450. 19:54downside showing rejection after several
451. 19:57weeks of of Doubt of being down right we
452. 20:00can show exhaustion through the dojis
453. 20:03okay and then we get boom closer to the
454. 20:06upside price rallies takes out these
455. 20:09highs so all that I want you to do
456. 20:12again strong look to the downside full
457. 20:15close rallies
458. 20:17so all that I want you to do is get
459. 20:20whatever choose whatever pair you trade
460. 20:22okay
461. 20:25um and just look for these and see how
462. 20:28price reacts off of these certain price
463. 20:30points okay find at least 10 examples
464. 20:33okay this is your homework all right
465. 20:35find at least 10 examples
466. 20:38of these doji candlesticks okay
467. 20:41understanding Wicks within the market
468. 20:44right there's there's a saying Wix don't
469. 20:47lie and I think I literally think
470. 20:49there's someone that teaches
471. 20:51on uh like YouTube or Instagram named
472. 20:54Wix don't lie I'm I may be wrong though
473. 20:57it may be fibs don't lie I don't know
474. 20:59but Wix do not lie Wix and candlesticks
475. 21:03tell the whole story
476. 21:05okay of price action no we do not care
477. 21:09about a [ __ ] Mountaintop look how
478. 21:12that [ __ ] played out [ __ ] horribly
479. 21:14right you got stopped out we don't give
480. 21:16a [ __ ] about mountaintops we care about
481. 21:21price action okay
482. 21:24and that is what we were going to be
483. 21:25studying this literally this entire
484. 21:28course okay so with that being said
485. 21:32that's your homework okay very very
486. 21:34short lesson today but essential okay in
487. 21:38on in in in in you know slowly gaining
488. 21:40that [ __ ] market experience that I
489. 21:42know you guys need and want
490. 21:44okay
491. 21:46um and honestly these are going to be
492. 21:48the lessons that are more important for
493. 21:49you guys because this is [ __ ] that you
494. 21:51guys probably brushed over and don't
495. 21:54think about too often so
496. 21:57um homework is fine 10 examples of this
497. 22:00bro
498. 22:03homework is fine 10 examples of this on
499. 22:07your own pair on your own chart that you
500. 22:09trade okay
501. 22:11take screenshots of it
502. 22:13um [ __ ] label them do whatever you
503. 22:16need but not only do I want you to find
504. 22:19examples of this on the chart but find
505. 22:21how price ended up reacting off of these
506. 22:25examples okay and that will give you a
507. 22:28better understanding of candlesticks
508. 22:30okay the closes of candlesticks how
509. 22:33Wicks work in this market okay Wix tell
510. 22:36tell so much of a story within this
511. 22:39Market these candlesticks tell tell the
512. 22:41entire story of this Market okay so if
513. 22:44you cannot understand candlesticks you
514. 22:45won't be able to understand the market
515. 22:47because we have to read these things
516. 22:49these things are telling us a story and
517. 22:52we have to be able to read them and
518. 22:53dissect them and understand them
519. 22:55so with that being said
520. 22:58that is day two super short day we're
521. 23:02starting off slow this is like syllabus
522. 23:03week right we'll we'll start you off
523. 23:07with the easy [ __ ] and then we'll get
524. 23:08into the difficult stuff okay so find 10
525. 23:11examples of that and then I'll see you
526. 23:14tomorrow all right peace