This Candlestick Pattern Video Is GOLD — Transcript

Full transcript

1. 0:00These are candles.
2. 0:03And these are sticks. If you stick them
3. 0:06together, they will become candlesticks.
4. 0:08You would have seen them in the stock
5. 0:09market graph. What do they even
6. 0:11>> I can't what
7. 0:12that is the most insane way to start a
8. 0:14video.
9. 0:15>> What mean? There are two colors in
10. 0:17candlesticks. Green color, price is
11. 0:19going upwards. And red color, price is
12. 0:21going downwards. The lower body is open
13. 0:23price of the stock. The upper body is
14. 0:26closing price. In the red candles, it is
15. 0:28the opposite. If the body is bigger,
16. 0:30that means more momentum in selling or
17. 0:32buying. If it is smaller, then lesser
18. 0:34movement. Upper stick is the highest
19. 0:36>> of people don't even think about candle
20. 0:38structures. So, this is actually good
21. 0:39information.
22. 0:40>> price of the time period. The bottom
23. 0:42stick is the lowest price. If the upper
24. 0:44stick is longer, that means prices went
25. 0:46high and fell back to lower price. If
26. 0:48the lower stick is longer, it means
27. 0:50prices went falling down, but buyers
28. 0:52hammered it back buying more stocks,
29. 0:54which leads to higher stock prices. If
30. 0:57you like candles,
31. 0:58>> Yeah, I got to watch that intro again.
32. 1:00>> These are candles.
33. 1:03And these are sticks. If you stick them
34. 1:06together, they will become candles.
35. 1:08>> joke I've ever seen for a video. These
36. 1:10create candlesticks. That's amazing. On
37. 1:12another note, the candles he showed in
38. 1:14this video are actually very, very
39. 1:16strong reversal candles. I've actually
40. 1:17built an indicator off candles like this
41. 1:20that pairs with divergences and then
42. 1:22higher time frame candle patterns. As
43. 1:23you can see today, we had a shooting
44. 1:25star pattern. This is actually a 1-hour
45. 1:26shooting star, but it's plotted on a
46. 1:2815-minute chart. And if I go to the
47. 1:305-minute as well, you can see it's
48. 1:32plotting the entire 1-hour shooting star
49. 1:35that followed divergences. So, there was
50. 1:37divergences into a 1-hour shooting star
51. 1:40that enabled this giant reversal. But
52. 1:42for you scalpers out there, we can
53. 1:44actually bring this down to let's say a
54. 1:465-minute higher time frame. So, we're
55. 1:48looking for 5-minute patterns on a
56. 1:501-minute chart. So, you can go to the
57. 1:511-minute chart here, we can look for
58. 1:535-minute patterns. But Jacob, how do I
59. 1:55know which divergences are the good
60. 1:57ones? Well, the biggest thing is there a
61. 1:58gap here? Can you draw an N on bullish
62. 2:00divergences? Can you draw a U on bearish
63. 2:03divergences? That's usually the key. As
64. 2:06you can see here, nice N makes a move.
65. 2:08Nice U makes a move. Look at ones that
66. 2:10aren't that way. These are just straight
67. 2:12divergences that have no structure. I
68. 2:13mean, it still made a move lower, but
69. 2:15it's not going to be as strong. Is there
70. 2:17a gap here? Yes, a very nice gap. And
71. 2:19then this is followed by a nice bearish
72. 2:21engulfing. And then it makes a nice
73. 2:23move. Look at how big the reversal
74. 2:25pattern is. Is it a very aggressive
75. 2:27reversal like these, or is it a tiny
76. 2:29little hammer like this? That's really
77. 2:31going to give you a big difference. So,
78. 2:33I want to give you guys the link to this
79. 2:34indicator absolutely free. It's going to
80. 2:35look like this. You can scroll down and
81. 2:37literally click get access on
82. 2:38TradingView right now. Just comment the
83. 2:40word candle and I'll send you a link.