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Single Candlestick Signals (Part 3) — Transcript

by Hrh Demydea · 2,720 words · 445 segments · language en · Watch on YouTube

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0:00Right now, let's jump into the shots and
0:02see what bullish engulfing is and what
0:04bearish engulfing is.
0:06We've actually known the the
0:08significance of a bullish engulfing
0:10candle and a bearish engulfing candle.
0:12So, let's have a practical example on
0:14the on the shots.
0:15All right.
0:17The shots we have here, well, let me
0:19bolden it. You can see this. This is a
0:22bullish engulfing candle.
0:24If I make it a bit smaller, you can see
0:26this is a downtrend having a lower low,
0:29lower low, lower low, lower low,
0:31lower low, lower low. Right? So, but now
0:35here we have a bullish engulfing candle
0:37at this point.
0:38This bullish engulfing candle, you can
0:40see it actually swallows this bearish
0:42candle that precedes it. So, this
0:45actually is
0:46signifies [snorts]
0:47that there's actually going to be a
0:49shift in the market towards the upside.
0:51So,
0:52that's the function of a bullish
0:54engulfing candle. Wherever you see a
0:56bullish engulfing candle
0:57on either a support or a resistance
0:59level or at a Fibonacci level or a
1:02retracement Fibonacci retracement level
1:05or wherever you see it at
1:07a demand zone or a supply zone or an
1:10order block or an imbalance or heavy
1:12fair value gap, it signifies that
1:15there's something about to happen.
1:16There's a shift about to come into
1:18place. So, yeah, let's look for an
1:21example for
1:23bearish engulfing.
1:31Okay.
1:33>> [snorts]
1:33>> You can see this. This is a bullish
1:35candle.
1:36The market was actually trending upward
1:38before.
1:39Trending upward, trending upward. At
1:41this point, there's no there's no
1:43bearish engulfing candle. There's no
1:44bearish engulfing candle. The market
1:45came down and went back up. But at this
1:48point where we have a what? A bearish
1:49engulfing candle at this point.
1:52The market changed direction and started
1:54coming down. So, these are the effect of
1:57uh
1:58a bullish or a bearish engulfing candle
2:00whenever you see them in the market. All
2:02right? So, let's jump into the next one.
2:05The next one
2:07is
2:08trying to give more explanation, more
2:11explicit explanation about what the
2:13bullish and the bearish engulfing. A
2:15bearish engulfing pattern
2:17signals strong selling power
2:21in the market. Whenever you see it
2:23formed at the what at the upper part of
2:25a trend.
2:26This [snorts] formation appears after an
2:28uptrend. It shows that sellers have
2:30what? Overpowered the buyers, often
2:32making the beginning of a potential
2:34trend reversal. Whenever you have a
2:36bullish engulfing at the what at the
2:38lower part of a trend, this also
2:40signifies that or this also connotes
2:43that or this is also trying to speculate
2:44that the market is about to reverse.
2:47Now, let's talk about the doji candle.
2:49The doji candle is a kind of candle
2:50where you have
2:51uh the opening price and the closing
2:53price that's almost the same.
2:56Look at this. As you can see, as you can
2:59see, the opening price is same as the
3:01closing price. This signals
3:04This signal means that the market didn't
3:06decide which direction it would take.
3:08So, a doji candle is just like an
3:10indecision candle
3:11where the opening price and the closing
3:13price is almost the same. So, let's look
3:16at this on the chart.
3:19If we go on the chart,
3:21this market is trending up. It's
3:23actually trending up, trending up,
3:24trending up. At this point, this is a
3:26doji candle. This is a doji candle which
3:28signifies that the the opening opening
3:31price and the closing price is almost
3:32the same. This signifies indecision.
3:35This actually signifies indecision in
3:37the market. So, an indecision point in
3:39the market is trying to tell you that
3:41this upward movement, this higher high
3:43is about to revise or reverse to start
3:46forming a lower low. At this point,
3:48after this indecision candle, you can
3:50see there's a sharp drop in the market
3:52and the market started selling. So,
3:54that's how to use the doji candle when
3:57you are trading.
3:59Okay, so the dragonfly doji The
4:02dragonfly doji The difference between
4:04the dragonfly doji and the
4:06doji candle This doji candle has a upper
4:09wick and a lower wick, but a dragonfly
4:11will only have a single wick. There
4:13won't be a wick at the opposite side.
4:16See, this one has a single wick. There's
4:18no wick here. A dragonfly doji will have
4:21a lower wick.
4:22>> [snorts]
4:23>> While the gravestone doji, we have a
4:25upper wick.
4:27The gravestone doji, we have a upper
4:29wick. While the dragonfly doji, we have
4:31a lower wick. This one often appear at
4:34the at the lower part of the market
4:36after a long lower trend.
4:39Let's jump into the shots and see this.
4:42If you look at this market, it's
4:43actually coming from
4:45a
4:46lower high, lower high
4:49forming lower low, lower low, lower low.
4:52All right. Now, we have a what? We have
4:54a
4:55We have a doji, a dragonfly doji.
4:58There it is.
5:00Looking at this at the bottom of the
5:03what At the bottom of the of the trend,
5:05it's trying to let you know that
5:07the market is about to shift from
5:10being bearish into being bullish. These
5:13are the things you need to check out for
5:14whenever you are checking the shot. The
5:16effect of these candles,
5:18if properly interpreted, can make you
5:21profitable. You don't need all the all
5:24mighty concept of strategy in the world.
5:26If you keep your shots simple, your
5:28analysis simple, the basic things in in
5:31trading can make you profitable.
5:34Let's look for another example.
5:43There's another one here.
5:48There's is another one here.
5:51This is also a dragonfly doji.
5:53It has a lower wick, no upper wick. The
5:56market was trending down. Whenever this
5:58appears at the lower part of the trend,
6:01it's trying to let you know that the
6:02market is about to shift to the opposite
6:04direction. Having this one here and this
6:06bullish engulfing
6:07is to let you know that this market has
6:09shifted from this point,
6:11you can place a buy,
6:13put your stop loss here, and enter for
6:151:2.
6:16If you put your stop loss here, you
6:17place a buy at this point, this is one,
6:20this is two.
6:21Take your profit here. This 1:2. So,
6:25these are the simple ways to take trades
6:27and to get profit. You don't need to to
6:30make it over complicated by drawing so
6:32many things, unnecessary things on the
6:34chart. Just keep it simple. So, the next
6:37one is what? The the gravestone doji.
6:39The gravestone doji is an opposite of
6:41the dragonfly doji.
6:43>> [snorts]
6:43>> Right? So, it's used in the same way.
6:46One appear at the upper part of the
6:47trend, while the other one appear at the
6:49lower part of the trend. This gravestone
6:51doji appear at the upper part of the
6:53trend.
6:54The gravestone doji is the bearish
6:55counterpart of the dragonfly doji. It
6:58forms when the open and close prices are
7:00equal or nearly the same.
7:03What sets it apart is the long upper
7:06wick. This is the long upper wick,
7:08which signals that the price was
7:11pushed higher, but failed to hold. It is
7:13being pushed higher, bullish bullish
7:15bullish bullish, but at this point, the
7:17bullish momentum failed to hold, then
7:19the market start dropping. This long
7:21upper wick suggests that the market has
7:23encountered strong selling pressure or a
7:26significant resistance zone where
7:28sellers stepped in and they and rejected
7:31higher prices. So,
7:34the dragonfly doji and the gravestone
7:35doji, you always know that one will be
7:37at the upper part of the trend, and one
7:38will be at the lower part of the trend,
7:40and it signifies reversal in the market.
7:42So, the morning star candle, the morning
7:45star candle, which is the next one, and
7:47the evening star. These are also the
7:49same but happens in different places.
7:51This happens at the bottom
7:54of the uh That means at the at the lower
7:56part of the trend. This happens at the
7:58top. This happen at the upper part of
8:00the trend. So, looking at this, the only
8:02thing that you need to take into
8:04consideration when you talk about the
8:05morning star or the evening star is
8:08the formation of the three candles. This
8:10is the first candle. This is the second
8:12candle and this is the third candle.
8:14Whenever you have a smaller body within
8:16these three candles, this is the small
8:18one. This is the first one, big one. The
8:20second one is also big and the third and
8:22the middle one is small. Whenever the
8:24third one closes above or at 50%
8:28of the first one,
8:30that signifies it's either the morning
8:32star candle or the evening star.
8:35Whenever it closes above the 50% of the
8:38first candle, whenever it closes This is
8:40the first candle here. It closes
8:43If If you look at the 50% of this, that
8:45would be the middle. Whenever it closes
8:47below the 50%, that signifies a strong
8:51reversal pattern. At this point, you can
8:53sell. At this point, you can buy.
8:55Whenever it closes above the average
8:58section of this candle. Whenever you
9:00have this small body, large body, large
9:02body, this third large body
9:05ex- extended beyond the average of the
9:07first body, that's when you shall You
9:09can get in for a buy. Let's try and see
9:12if I have
9:13a chart to show you this.
9:15You [snorts] can see This is the morning
9:17star.
9:18You can see the candle closes above the
9:2050% range. You can see the candle closes
9:23above the 50% range
9:26here. So, this signifies a bullish
9:28momentum. And this
9:30And this happened at the lower part
9:33of the what? Of the
9:35of the trend. At the lower part of the
9:37trend.
9:38When the market is trending downward
9:40downward
9:41and you have this, the morning star
9:43candle,
9:44the morning star candle is all all
9:45pattern is always having three candles,
9:48not just a single candle. Three candles.
9:51It's a pattern. Not a single candle.
9:53It's a morning star candle pattern. So,
9:55please take note of that. A single
9:57candle is not a morning star candle
9:58pattern. It consists of three candles.
10:00One will be the first candle, which will
10:03be a large candle. The second one will
10:05be a small candle and the third one will
10:07be a large candle, which will close
10:10at minimum of 50%
10:12of the first candle. That's it. So,
10:16the first candle, strong bearish candle.
10:20It confirms the sellers are still in
10:21control. The sellers are still in
10:22control. The second candle, small bodied
10:24candle, small bodied candle
10:26shows slowing selling pressure. That
10:29means the selling pressure is dropping.
10:31You you can see the selling pressure is
10:33dropping.
10:35Then the third candle is the bullish or
10:38bearish candle. It can be bullish or
10:40bearish, but provided it has closed
10:43above the 50% of the first candle. It
10:46can be bullish, it can be bearish, but
10:48so far it closes above this 50% of this
10:51first candle, then you are good to go.
10:56The third candle, the strong the third
10:58candle is this the strong bullish
11:00candle.
11:01It opens higher and closes above the
11:03midpoint of the first candle.
11:06Above the midpoint, that's the 50%. This
11:08signals a clear shift from the sellers
11:10to the buyer. So, that's just the basic
11:12explanation or illustration of what of
11:14the morning star candle. The same thing
11:16applicable to the what to the evening
11:18star candle. So,
11:20evening star and the morning star is
11:21just a vice versa opposite thing.
11:25So, let's move to the next one, which is
11:27the pin bar, which is called the hammer.
11:29The pin bar or the hammer,
11:31>> [snorts]
11:31>> as you can see, we have the hammer. This
11:33is the hammer. This is the inverted
11:35hammer. The inverted hammer is also
11:36called the shooting star. The in-
11:39inversion of hammer is the shooting
11:40star. So,
11:42the hammer forms when the open price
11:45This is the open price and the closing
11:46price
11:47um are very close and has a long wick.
11:50While the inverted hammer forms when the
11:52what? The opening price and the closing
11:54price are very close and has a what? A
11:56long upper wick. So, this can be used to
11:58also
12:00signify a change in direction in the
12:02market. So, when a hammer appears at the
12:04bottom of a trend, it signifies a
12:06potential bullish reversal.
12:08But, the long lower wick reflects strong
12:11buying pressure. Whenever you have a
12:13long lower wick,
12:15it signifies a long a strong buying
12:17pressure. Let's turn and see
12:19how it appears on the chart.
12:21Looking at the chart,
12:23you [snorts] can see the market is
12:24forming a lower low,
12:26lower low, lower low, lower low.
12:29But, here you can see the hammer.
12:33And I said,
12:35"When a hammer appears at the bottom of
12:37a downtrend, it signifies a potential
12:40bullish reversal." Now, let's go back to
12:42the chart. This is the bottom of a
12:44downtrend.
12:46This is example of a hammer.
12:49It is appearing at the bottom of a
12:51downtrend,
12:53possibly on a resistance level,
12:55possibly on a fib level,
12:58or a trendline
13:00at a downtrend.
13:02And this is showing you a bearish
13:04candle. So far is
13:06an hammer or a hammer is trying to let
13:09you know that the market is about to
13:10reverse. And as you can see, the market
13:12actually reversed.
13:15So, these are the simple simple things
13:17you take into consideration when taking
13:19your trades.
13:20So,
13:24and whenever it appear at the top of a
13:26trend, Upper part of a trend. The market
13:29was actually trending up.
13:30This point this marked out point is a
13:32resistance level.
13:34When it appear, it's trying to let you
13:36know that the market is about to
13:37reverse. It's about to reverse. You can
13:40see a reversion
13:42back to the downside.
13:44All right? So, these are simple simple
13:46things about the what? The hammer and
13:48the shooting star. So, now let's talk
13:50about the
13:51inside bar candle. Some people call it
13:53the arami pattern, while some call it
13:56the inside bar. This is when you have a
13:57big candle followed by what? A small
14:00candle. The big candle is referred to as
14:02as the mother candle and the smaller
14:04candle within it is called the baby
14:06candle. It's Some call it a pregnant
14:09candle in the Japanese
14:11uh
14:12area of the world, they refer to as a
14:14pregnant candle. Look at the meaning
14:15pregnant in Japanese. Arami pattern is
14:18meaning a pregnant. It's The meaning is
14:20that it's pregnant. So, this is actually
14:22pregnant and the pregnancy is this small
14:24one. This is actually pregnant and the
14:26pregnancy is this what? The small one.
14:28So, this will be big while this one is
14:30small. And this is trying to let us know
14:32that there is about to be a shift from
14:34being bearish to being bullish. And
14:36there's about to be a shift from being
14:38bullish to being bearish. It is made up
14:40of two candlesticks.
14:42The first one is large candle known as
14:44the mother and the second candle is
14:46known as the baby candle. This is the
14:48baby. The body of the second candle must
14:50form within the range of the first
14:52candle. If it comes out of this, that
14:54means it is no more the what? The inside
14:56bar candle. So, a bullish
14:59form of this
15:00at the bottom of a downtrend indicates a
15:03potential upward reversal.
15:06So, let's see in the shots.
15:08You can see this.
15:10This
15:12is a bullish momentum.
15:15You can see this is the mother candle,
15:16this is the baby candle. This is longer
15:20and this is shorter. Within this body,
15:22this
15:23Looking at this, this is a bearish
15:25movement, but this is a bullish candle.
15:28Within
15:29this bearish momentum, it's trying to
15:32let you know that the market is about to
15:33reverse. At this point, the bullish
15:36momentum was going bullish candle,
15:38bullish candle, bullish candle. You can
15:39see the small baby candle here, which
15:43is also existing within
15:45the length of the what? Of the first
15:47bullish big candle. It's also signifying
15:49the candle uh the market is about to
15:51reverse.
15:52Same thing applicable to whatever it is.
15:55You can You can also use it in a
15:57trending

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