Candlestick Trading MasterClass with TRREE Trading Setup | Gaurav Khullar | Skillshare

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Candlestick Trading MasterClass with TRREE Trading Setup

teacher avatar Gaurav Khullar, Professional Banker(10 Years Experience)

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

19 Lessons (2h 24m)
    • 1. Intro to the Class

      3:27
    • 2. Candlestick Design

      6:50
    • 3. Life Cycle of a Candlestick

      1:52
    • 4. Importance of Wick/Shadow

      6:00
    • 5. Importance of Body

      1:47
    • 6. Importance of Closing Price of a Candle

      1:33
    • 7. Importance of Range

      0:57
    • 8. Candlestick Pattern Types

      7:24
    • 9. TRREE Trading Setup

      9:22
    • 10. Dojis

      17:10
    • 11. The Hammer and the Hanging Man

      9:28
    • 12. The Inverted Hammer and The Shooting Star

      9:09
    • 13. Engulfing Patterns

      10:01
    • 14. The Dark Coud and Piercing Line Patterns

      9:34
    • 15. The Harami (Bearish Bullish)

      10:53
    • 16. The Bullish and Bearish Railway Track Pattern

      11:17
    • 17. Morning and Evening Star Patterns

      10:37
    • 18. Three White Soldiers and Three Black Crow Patterns

      7:35
    • 19. How to Search Candlestick Patterns in the Jungle

      8:36
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About This Class

Learn Candlestick Trading from Scratch using a new "TRREE" Trading Setup.
The class is ideal for novice as well as experienced traders who want to sharpen their trading and investing skills.

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Gaurav Khullar

Professional Banker(10 Years Experience)

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Business Finance Candlesticks

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Transcripts

1. Intro to the Class: Hello offers. Welcome to this amazing course on Candlestick trading Masterclass with three trading set up France. Japanese rice traders have been using candlesticks for over 400 years to create huge fortunes, a candlestick pattern in factual that Cheney in creator psychology and high probate leader trend is about to reverse with passage of time and testing over the years, these candlesticks are now being used all over the world in almost all financial markets, including stocks, derivatives, forex commodities and many others. But fact of the matter is most traders or investors things that candlesticks trading is hard and takes lots of time to master. Many even find it difficult to scan the candlestick patterns on the charts or are confused with which pattern to create and which to leave. Because of these reasons, only Morris traders or investors end up belonging. Toa any of these categories. They either invest build on their financial channel recommendations every morning and think starter Analysts have been comprehensive reserves, and their only goal is to make you rich. Or some traders even get membership off a stock recommendation company for their investment decisions. And last year there are some who take advice from their family members or friends who portray himself other season trader. But France discourse will help you in achieving that key skill, which will save you from landing in any off these categories. French, Less practical knowledge off candlesticks is, in fact, one of the core reasons why 80% of dictators lose money and quit trading within 1st 2 years . And these are the people who attacked markets as hub of gambling. So it's extremely important for you as an investor or trader, to educate yourself and learn this language of market learning. Candlesticks becomes more important if you are new to the world of financial markets are treating. Let's take a simple example. Suppose you want to relocate to a different place, which have a different language, then for living there for a longer term. It's most for you that you try to learn the native language. The faster you learn, the more easier it will be for you to survive. Well, the same is true for financial markets. Sensible candlesticks are, in fact, the language of financial markets, and it's much for you to master this in order to survive for long term. This language will make you read what's going in the market by looking at the chart in few seconds. But unfortunately, if you don't learn this language on your days will be numbered here. And you will also quit the market by saying same three words that as markets are casinos but friends of discourse designed for both new as well as experience traitors will teach you this important language called candlesticks from level zero. In a very simple, systematic and effective manner. In this course, you will learn a very effective technique or tree. Yes, it's treated Ebola 200 consistent profits from the market. By using Candlestick charting, I will take you from zero to experience level in a stab at Steph manner. So even if you have almost no knowledge off candlesticks, even then, you can use this course to enhance your candlestick knowledge. And there were adding this important tool in your treating arsenal 2. Candlestick Design: Hello, friends. Welcome to this new lecture. Let us know. Understand how the candlesticks are designed. We will also learn a stamp, a stamp matter to design any consistent so that stock France candlesticks are basically used to describe the price action during a given time frame. And the best thing about candlesticks is that it can be used for any timeframe. So whether it's one minute, five minutes, 15 minutes hourly, daily, weekly or even monthly timeframes later in this course, you will also learn to use candlesticks in your customer in time frames, using candlesticks, branding so friends. In order to create a candlestick chart, you must have a data set that contains open, high, low and close values for a particular time. Peter If the candle is closed above its opening prize, then it's shown by green candle. But many charts even shoulders with a white candle, and if the candle is closed below its opening price, then it's shown by a red candle. Some jars, even shoulders as a black random. So generally you will see who pipe so kind of 60 presentations fosters green and red, and second is white and black, so don't get confused with different representations off different charting platforms. But formation or structure of candles seem whatever color combinations you are using, I will again summarize this important concept. So this horizontal line represents the opening level and candle closes above this level. Then it will be represented as a green candle. On the other hand, if the candle closes balloons hoping level, then it will be represented as our red candle. No friends of best rate along candlesticks is not theoretically what visually so let's use the basic structure and formation off a candle. The hollow are filled section of the car industry is called a real body, or simply body off the candle than the 10 lines poking above and below. That body displays the high or low range and our core Vicks or shadows the top of the hour . Berwick is, ah, higher price off that time period, while the bottom of the lower wick is a lower price for that time period. Now, France, as you have already learned it just talk clothes is higher than its opening price are green . Candlestick body is drawn with the bottom of the body representing the opening price and top of the body representing the closing price. Similarly, it was talk closes lower than its opening price are red, congested body is drawn with the top of the body representing the opening price and bottom of the body representing the closing price. Another point Do not here is that the green candle in with the price closed above the opening is often called a bullish candle and indicate the bullish sentiments off the market in that particular time for him. Similarly, a red candle in with the price closed below the opening is often called a very scandal, and this indicates a very sentiment of the market. Now let's see the stuff bust a process to create a candlestick. Friends. A candlestick can be drawn using four simple steps in step one marked open in the close. Now, please, not here the open and not losing price, whichever is higher. You need to mark that on the top and other at the lower side. In this example, I am, as you mean, closing price above the opening price and steptoe draw the box around the open in the close . This box top rectangle is in fact, the real body, so as you have seen earlier, the rial body re president start ranged between the open and close off the session. If the closes hired and open the real body is colored green or why. On the other hand, if the closes Lord and open the real body will be colored as red or black, and Step three among the high end joined this to the top of the box that Israel body, the still line above the box is called the Upper Way. Order up a shadow. This year, I've already learned in the last light finally in stuff or marked the low and joined this to the bottom of the box. That Israel body, as you have learned earlier, that this 10 line below the boxes called a lower Vic or Lord shadow. So finally you got your candlestick for the Dillon session friends. If you are confused with any step, then we will do some examples to clear this important concept off Candlestick designing. Let's do a practical exercise. This is the chart off us. Talk Amazon for 90 grand continuity. As you can see, the open, high, low and close are given. Now let's start plotting the Candlestick. So the first er just take the open and close. As you can see, the stalk is open Our 20 for 5.43 and closed at 204.76 which is Lord and Open. I'm Martin open and close here as tough toe. Just make a box around this open and close Instruct rejoined the high of the session with the top off the books like this and finally in stuff or joined the low of the session with the bottom of the boss like this. So this is your candlestick for the session. Also in order, body will be heard since the Open is higher than the clothes. This is a screenshot off actual candle from the chart. Friends of the things are getting clear by now. Let's do a final example to make the concept of Candlestick designing crystal clear. This is Euro USDA data off for five trading sessions. That is, from 16 past 2022 20 months. 2020 as you can see open, high, low and close are given for all the trading sessions. Not just watch the video and try to make the chart for these five trading sessions using the steps as discussed earlier in this lecture, please door for 16 March 2020. The session started at 1.1085 that is here and closed at 1.1183 So just make this boss onboard these levels, this works will be green because often his below the clothes on the way it made a high or 1.1 to create that is here and low of 1.1 to divorce extent is this hope this kind of structure is clear to you. Similarly, you can blow the candles for 17 18 19 and 28 march. Just try it yourself. Some friends hope the candlestick designing is clear to you. From next lecture, we will study the price action and psychology off each part of the candlestick in detail. 3. Life Cycle of a Candlestick: Hello, friends. Welcome back to a new lecture. Let's know, understand the life cycle of a candlestick that is its journey from birth. To get this will make you learn not only about the formation off candlesticks but also how price action works in the market. Francie Life cycle of a candlestick consist off four stages that is open, high, low and close. The life cycle or ease off a cycle is a time Peter in which we are working. So if you are working on a five minute chart than the life cycle of the candle, in fact passes through all the four stages in the speedier. No friends. A candle is always born as a horizontal line like this. Yes, friends, that's a new one Candlestick. At this point of time, no one knows whether this will die bullish or bearish, or no one knows whether it will move up or known. And now the real fight begins. That is the fight between bulls and of years. If the buying pressure is more than the candle will start moving up and form a bullish candle. And if the selling pressure is more than the candle will start moving down and forbearance . Red candle French student despite you will notice the color of the body changing from green to red or wise Corsa. Depending upon whether the current prices above or below the opening price. And finally even the time frame errands or life cycle is over, we finally see the result off that battle between the buyers and the sellers. If the buyers one, then we will have a green candle or is the sellers one. Then we will have a red candle. You will also notice between open and close. Candlestick also passes through who other stages that is high n low. So friends hold the lecture and price action behind formation of candle is clear to you. 4. Importance of Wick/Shadow: Hello, friends. Welcome back to a new lecture. Now let's understand the importance and psychology off each part of Candlestick. First, let us see the importance off or shadow. French weak not only shows the high and low off a candle, but it also offers other important information as well. Just about this candle below. This has a small lord with small, bearish body and along or Berwick. This contractual is that after opening, Bush tried to pick the price high as represented by the law about a week. But before this scandal closed, bears took the charge and pushed the price back down. Does the higher price vegetables initial itto was rejected altogether? Does Victuals the price reduction of the market? The longer the wig, the higher is a price rejection. Let's see a practical example. Just look at this nifty chart for Air Temporal 2020. The market started at 86 double it, and then Bush took the market all the way to 9131 But finally, towards the end of the day market close just slightly above the day's open, that is that age salmon food it now in candlesticks. This whole trading session is represented by this single candle just noticed this long week . This represents that the bullish move off the market is completely rejected by the participants, though this candle is green. But underlying sentiment is not bullish. It's in fact, a beer sentiment with rejection off upper price levels. Let's see the candles with shorter wigs. Novels just see this candle below. It has a short Lord with ah, British body and a shark a part of it. Such kind of sticks with short weeks indicate that most of the trading action was confined near the open and close. No, just observe this candle below. And can you read the psychology off this candle? Here, positivity you for a moment and just observe the price action. No, friends don't come out with the Japanese name off the candle pattern. Please read from the price action point of view. First, these candlesticks with a long operatic long lower with on a small real body, our core spinning tops. And this mainly represents the indecision in the market. Just off. The bulls try to pay the price high as represented by the long upper week, and then Bs took the control and took the price all the way down, as shown by the long Laura Vic. But when you see the end result, none among the bulls or the Beers one and price closed near to the open does making a short body in long weeks. Fact of the matter is that put upper and lower prices were rejected by the market altogether. Now, in this example of the stock Netflix, just observe the long weeks off these candles. Just see these candles, which got long Lauritz. This shows the rejection off lower prices off the market and also notice how the stock rise after formation. All these candles no noticed this candle the short, upper and lower with and what high and low near to open and close, respectively. Judiciales The market was trading in a range of the body. Now these candles with long about and lower Vicks and small body. These are in fact, spinning toffs and shows markets in decision. Please note. Neither buyers nor sellers could gain the upper hand, and this resulted in the small body off the scandal. No offense just noticed this shot off Microsoft Corporation and also the multiple price rejection here. If you were at multiple price variation than this is a strong signal off reversal. Just see home Lord. Prices were rejected. Beer. They're trying hard to get the price lower, but market rejected does altogether, and you can see how the price rises after formation. All these candles with Long Lord fix. So friends are you take over here. Is that at all? Or along with knees? Christ reaction And they're the stop. Or, as a class might make a reversal. In other words, a long upper work in 23 continuous candles means or downtown is coming because the higher prices being rejected by the market again and again. Why a long lower work into three continuous candles means arises coming because the lower prices being rejected by the market again and again. No friends. What if there are virtually no vex, no candle with virtually no. It is regarded as a strong signal of conviction by both buyers and sellers, depending upon whether the candlestick is bullish or bearish. This type of candlestick is created when the security's price doesn't rate outside the range of the opening and closing prices. Just look at this candlestick. These candlesticks have virtually no Vicks. Now these kinds of 60 president's strong conviction in the market, that is, if the body's red, then it shows market sentiments are strongly bullish in downward direction. Now there is a special word for such candles, with virtually no weak and long bodies. These type of candlesticks are our models of candles. So if it's read, as in this example, then it's called a bearish matter. Gozo and efforts Green. Then the candlestick is called a bullish motto. Grosso, please remember this as it's very important. Candlestick Candlesticks Trading France Nomenclature here is naughty Borden, but what's important is that you must understand the price, action or psychology off any candlestick. 5. Importance of Body: Hello, friends. Welcome back to another lecture. Let's see the importance and psychology behind a body off a candlestick. As you have already learned, a real body is the wider part off a candle that represents the range between opening and closing price. First, it is a common caution among illustrators about how to identify the strength off any move as strong or V so body off a candle in factual. The moment, um, in the market, if the body is no dish, yours market is friending. Any of the bodies are short and market is no training or it is said to be in a sideways woman. Noticed this chart on Microsoft Corporation and absorb the smaller bodies off Candlestick in the area shown in rectangle just off. The whole small bodies are resulting in consolidation off the market, that is, there is indecision in the marker, and now he dis portion on the chart, where we have long candle bodies and just see the training market and overhaul prices are moving, making things. This market is in fact, very good for trading, and this formation off long candlesticks side by side, is a strong single. That market will soon start trending. No, just look at this chart off now. Jones, notice the candle bodies after the break. Out off Covert 19. Look at the long candle. Water is indicating strong moment of in the market. And this was in fact, the sharpest and fosters fall in the markets from all time high. So, friends that you take away here is that long candle bodies show strong momentum in the market, which you can utilize in your trading profits. 6. Importance of Closing Price of a Candle: Hello, friends. Welcome back to a new lecture. Now let's see the importance off. Closing price off a Candlestick France closing price not only decides whether there will be a bullish or bearish candle, but also shows who's in control of the market at the end of that particular frame of time brothers, bulls or bears. If the kind of closes near to the higher, that means bulls are in control. Just look at all these candles and noticed that all the candles are closed near to its higher. Does all these kind of shows bully sentiment of the market? If you are confused with this red candle, then he's nor dishes a rejection off lower prices and finally closing close to the higher than that we used. This candle also represents bullish sentiments than if the candle is closed near to the law . That means beers are in control. Just look at all these candles and notice the price clothing near to the law. Visually, presidents of beers are in control and lastly of the candles closed near its open, then that means neither bulls nor beers are in control. Just look at all these candles and notice Bodo open and close are very close to each other , which shows there is strong fight between the bulls and of years. But the result is still undecided. None of the bulls of years have an upper hand. These candlesticks in factual indecisiveness off the monkey. 7. Importance of Range: Hello, friends. Welcome back to a new lecture at last letter. See the importance off range with respect to price action? Friends of range of a candle refers to the difference between high and low. For Kendall, this is basically the journey of the price within the time frame. I hope you are getting the difference we do in Candlestick Body and the Candlestick Range. I will again repeat bodies. The difference between open and closed while ranges are difference between high and low, please note. Longbridge off a candle shows high volatility in the market. Just although this does yard and notice the longest candles forming and absolved of all eternity off this shot prices moving up and down and making very volatile patterns. So, friends with this, we're done with the intro of candlesticks. 8. Candlestick Pattern Types: hello. Friends will come back to a new lecture prince before discussing the candlestick pattern types. It's must for you that you understand the basic trading moral of candlesticks or pretty any candlestick pattern. Now the first step is obviously, that markets should be in a trend. Prince Candlestick patterns always works when the market is trending. Trend is the first thing that traders should notice before trading any candlestick pattern . Now this trend can be up or down, but please note side with friend doesn't compare. Also, remember, in your training, whenever visa market is trending, that means either up or no because this is when you make your money. Then second step is utterance off Candlestick pattern and finally did his confirmation when you paid your trade. No friends. Dis confirmation depends upon your level of riskiness. If you are aggressive, then you can simply take trade on just one confirmation level. But if you are a conservative greater than you will take multiple confirmation levels and only then take your trade. Now, being a retail greater, I am personally in middle of the stool. I'm neither very aggressive nor very conservative. We will discuss all these hours later in the score where we will develop our conference trading strategy called Tree Goddess Tree with Ebola and this movement, you just You don't understand that we all the street candlestick pattern once there is a trend, then there is formation of Candlestick pattern, and finally, there is confirmation where we take our entry. Now let's dive into the main topic off this lecture that is candlestick pattern types. So they are broadly four types of candlestick pattern that occur at Step two as discussed before, fosters bearish reversal pattern. Now these patterns occurs. An uptrend followed by formation off, bullish reversal, part on like bearish and golfing or dark low cover or evening star. Please don't worry. We will learn all these names later in the scores. No formation of beers reversal. Candlestick pattern indicates that the market Mary words and we must enter into a short raid. And finally, we take entry on confirmation. Once a market made reversal in downward direction. Now I will again repeat that there is no short dinner market will make a reversal on or much Yes, there is very high program. Do not, it will vivid Later in the scores learned toe at conferences to increase our probity. Auvinen creeds. The next is bullish reversal pattern. Now this pattern off course in there don't train. And then there is formation of bullish reversal back on. Now, once this is formed, there is very high probability that market will make a reversal in up for direction after this. Now this pattern can be a hammer bullish engulfing Morningstar or any other bullish reversal presidents. Once again, it's not a guarantee that market will rivers and you can enter a long trade. But just the probabilities very hideout reversal will take miss on a force. As a trader, we are always looking to increase your probability. Overeating. That's why I love candlesticks as it gives clear signals of Ellen. And once then third Candlestick pattern type is bullish continuation pattern. Now, in this formation there is an up train. Then there is formation of bullish continuation pattern and then the trend continues after confirmation and lastly, we have Berries continuation program. In this formation there is a down train and then there is formation of Berries continuation pattern, and finally, the trend continues in downward direction. After confirmation, I will again repeat this is just a signal and not a shorty you must be noticing. I'm repeating again and again in this lecture. So this is a basic thing that you need to understand if you want to improve your training or make a jump from novice to professional. Trader candlesticks are in fact writing you signals and increasing your probability off successful trades. So just take this huge advantage. But with open eyes finally a word of caution. Whenever any of these candlestick pattern occurs in sideways market like this than these patterns, loser intended meanings, and you must never trade this apartment in a sideways market price we went after. This is, in fact, unpredictable. Market can either go up, down or can even continue it Sideways movement also note. Most often Candlestick patterns are pretty. Does reversal trades? Dana's continuation? I am also focus on reversal patterns and discourse as these creates highly profitable and high probability trades. Now let's see some examples to get the concept discussed in this lecture. Clear. This first example is off S and P 500 index. Just notice their daughter in accident. Don't bring So this is basically stuff one. As we discussed earlier. Now notice this formation off candlestick pattern This tree candlestick part on it is a strong bullish reversal pattern called Morning Star which you will learn later in this course after formation all the part time. You just need a good conformation to enter into the reversal trade in this example. As you can see, you got a good long trade. This next example it off Euro USD daily chart just notices Upturn in the currency pair this after and is followed by a strong various reversal pattern called bearish engulfing, which is a to candlestick reversal pattern. This pattern also you will learn later in this course. Finally, we got our entry on confirmation nerve and the currency pairs started trading in lower direction. As you can see, this was a good career too short and was indeed a profitable trade. Finally, before winding of this lecture lacks your final example. This is a GBP USD daily chart just noticed this down trend towards left off the chart. This downtrend followed up with the formation off Morningstar, which, as you have seen earlier, is a strong bullish reversal pattern. But as you can notice, the price did me the reversal. But reversal was not that strong off course. In trading, everything is not as perfect as many show, but still, it was a profitable trade. Now, please note here where the market again started trending on. This is followed up with a bearish and golfing pattern. Now, this time market makes a strong reversal and we got our entry on confirmation around here. This was, in fact, a good, sharp and profitable trade. Lastly, this downturn ended up with formation off a bullish and golfing pattern, which is a bullish reversal. Barton. We got our entry here where the price started, training her so friends. With all these examples, you have seen the other candlesticks provide advance signals. But as always, nope. Ratings trying to do is perfect. You need to refine your skills to utilize the potential of candlesticks. But don't worry. You will get a refined trading strategy which will improve your probability off. Successful creates. When you master the treat strategy later in this course 9. TRREE Trading Setup: Hello, friends. Welcome to this new lecture. In this lecture we will learn our tree trading set up Not this tree with devil are nothing is a specialty of this training set up is there It answered three off the basic but very important questions that readers have. That is what you prayed there to prayer and went off entering into any trade. So without wasting much time, let's lives trade into the set up also, nor the set up can be applied by both conservative trader as well as I get a separators along the way, I will explain what changes both Piper Paraders CanDo while following this. Adam. This attack is also built on the principle of confluence which I have explained end up in my price action creating class and 15 90 trading glasses in charge. The principle simply and locates toe are known. Various conferencing factors which will increase the probability of successful prayers and eliminate false trails. Does here also reveal a different conferencing factors and increase the probability of success in our trees. Lastly, this is every worsen training set off that is, we will be trading possible reversals in the train since most Candlestick patterns indicate reversals that's we will primarily focus on reversal training rather than continuation training. Sufferance Pre is basically an acronym with Stand For. He stands for playing our stand for region off interest. R stands for artists I Can you stand for entry and, lastly, Eastern for Exit No friends. This is a simple but very effective second. Let us discuss each of these steps in detail. Step one is speed at his friend France District. Answer the basic questions. That is what she should do. That is whether you should buy ourselves, as you know, market never wolves in any particular direction for our. If the trend is up, then there will definitely be retracement either major or minor. And after some time there's definite reversal in the trend. This side of in fact walks in a trending market. So if the trend is up, then you should wait for possible reversal where you can enter a short prayer. What if the market is trending down? Then you should wait for possible reversal where you can enter into a long red. In short stuff, one tells you, do identify trending after class and wait for the formation of Re Werfel candidacy. Question that is weird for bullish reversal, Candlestick pattern in case off downtrend and bearish candlestick pattern in case off upturn. Then Step two is our that is region off interest. No. First, this is an important step off. The second this step answers another important question that is, were you should trade? Was the Candlestick part on this form in the trending market? Visual Dan Check if it's formed in a region off interest now what we mean. Medication often trust France region. Often trust is a place on the chart, which is important with respect to price action. In simple words. If the trend is up and you gotta be rich reversal pattern, then the region off interest can be under the since level or a trend line, which is acting as a resolutions or a moving average or some important Fibonacci level. So if your baby Suri were Phil Patton is formed at such region off interest, which is acting as a strong resistance level, then the possibility of reversal is huge. Let me show you some charts that will make this important concept here to you. Please look at this chart off issuing pains and notice the stalk is an uptrend here. This is followed by the formation of beers harambe pattern, which is a bearish reversal pattern. This pattern you will learn later in this course no friends. Let's check if this parrot on his form that region off interest. As you can see, this pattern is formed that are important with the since level does. This pattern is indeed for me at important Price Action Zone, which is adding to the probability off reversal. Let's see another example from the stroke TCS, as you can see here also data stalking in a print here, which is followed by formation of a shooting star. This is also a beard is reversal pattern which we would learn later. Now just notice if I draw this friend line here you belong. Love that the prices respecting this trend line as a strong resistance level does this shooting star is indeed forming at the important region. Off interest were probability of reversal is huge. Some friends hold this concept of region often. Trust is clear to you. I am generally using support and resistance and trend lines in this course to make it easier for you to understand, but you can add various other tools, like rivers, Fibonacci or chart patterns. For example, hadn't solos flag Ballard's Air Sacra to check if the candlestick pattern is forming at a region off interest? So friends hope the concept of identifying region often trust is clear to you messed up. Three off our predating Setubal's art, that is, artists I friends if you are into technical analysis than you must be family or with our sighs. But for those who are new are inside that is related. Strengthen. Dex is a mo mentum oscillator that measures the speed and change off price Woman's the value off Alice I also x between 0 100 Another point off importance is Alyssa is considered over Wardman above 70 and over Sorbonne below 30 it is considered if the asset classes an overworked level, then there is probably off decline. And if the asset classes an oversold region that is below 30 then there is probably off price. Race number is this knowledge off site is enough as far as our strategies concern. So in this start step of our strategy, you just need to get a simple conformation from artists. If the candlestick pattern is bullish reversal part on an artist, I should be oversold region that is less than 30 or just touching the oversold region. And if the candlestick pattern is bearish, reversal pattern, then address. I should be over what region that is above 70 or just touching this level. The next up is E. That is entry. So friends finally, after the 1st 3 steps, the probability of reversal is really high, and we must get ready to enter into the trade. So if the candlestick pattern is bullish reversal pattern and you should enter the opening often next candle. If it's a gap up opening else, wait for the next candle, do close above the bullish reversal pattern that is taken three only African formation. On the other hand, if the candlestick pattern is very reversal, then you should enter at the opening off Next candle effects gap down, opening as we wait for the next candle to close below the bearish reversal pattern French Regarding stop laws, you can place the stop loss below the Candlestick Kratter or ask for the out of this taking comparability, and last five is E. That is exit. So friends Final step, an important step in any creative exit. If you are into a long position, then you should ideally target previous swing high or resistance level, or you can even go for one is to do restore. You are ratio Now. Conservative traders may even book the profit at 50% off the level off previous swing high or resistance levels. You can even praise your stop loss to write the profits higher. Nothing stargate depends upon the context of chart, and it varies from one situation to other along. Of course, you will see this. So if a particular soon high is too far and you don't expect that level to each, then you can even set a target off 50% off that level, that is, you must take your targets judicially at different positions, so friends hope the settlements clear to you. You will find that sort of a simple yet Africa. You can even change or modify the sort of asked for your risk taking abilities. You can add or remove convincing factors like Karzai or region off interest. For example, you can add volume also and take a lead. Those talks, which have about average volume at the time off Candlestick formation. But as off now I have kept a set up. Simple trance, please. Norden Trading No set up will provide you 100% success. You just need to tweak the setups on charter charge basis. But the street reading framework will always remain the base for any week that you need to do. As for your trading style, if you still have any doubt or confusion than from next section, we're starting their different special candlestick patterns, where you will learn this tree set up in detail. Why a practical charts and all your doubts related toe. Any step will become crystal clear. 10. Dojis: Hello, prince. Now let's start learning different candlestick patterns. First, we will learn single can district patterns that is, patterns. Dad consist of holy single can district. Then we will learn to candlestick pattern that is, patterns consisting off two candlesticks. And finally we will on three candlestick patterns. In this morning we are covering single candlestick patterns. That is, 1st 1 is dodgy candlesticks, then second centers the hanging one and a hammer, and third shatters the inverted hammer and the shooting star French before starting the discussion. He's nor these names are for informational purposes only. And as a trader, these names are irrelevant. You just need to understand the price, action or psychology off any candlestick pattern. So let's start with dodgy candlesticks. Friends. I have already introduced their duty candlesticks in one of the previous lectures. Let's take dark discussion. I heard and learned this important candlestick in detail turns. As you have loan earlier. Dodi's created on the opening price and the closing price off a candle are almost the same . Do toe this. Our duty does not have a real body on the body simply looks like a straight line like this . The upper and lower. This can be long or short. As a trader, we normally ignored orgies. The small Vicks, so that he commendation is to pay attention to only those doggies with long weeks. Now this longer short weeks, you have to observe with context off recent price action. Let's discuss a valid set up off Doje that we can consider for trading friends. Ideology is classified as an indecisive candle if it is found within a sideways market formation off Cojean aside with market it off used importance as a trader, since market can follow any direction after formation off duty. But do these are considered, very importantly, founding trending market. If Jodi's appear in a trending market and this indicates Lawson Mo mentum and gives us a signal that reversal off market is near, so position of Doje is very boring before we take them as a trading signal. Now there are three variations of dodgy that are important as a trader. 1st 1 is gravestone nog than 2nd 1 is dragon fly doggy and last one is long like dodgy, actually, each one of these in detail and also don't how efficiently cleared them. 1st 1 is gravestone Doje. No offense that gravestone doggy is formed on the open, close and low are at the same level along with this. It also has a long upper work, but a little or no normal apart. Grifton don't even look like this. Now let's see the value set up off Greystone Doggy Friends Gravestone Doje formation is very effective at the top off a train and often results in market reversals does. It's a bearish reversal pattern. So whenever the trend is up and this formation off this Doje, then you must consider this as a creating signal. But you can ignore this Doje in sideways or down trending market. Now let's understand the psychology behind a gravestone. Doje principles The market is trending up and one day gravestone doggies form. Now this is a signal that buyers are tempted to push the price above the opening, but failed miserably the price of repressed with the same level as opening off the session where it also closed. Now this gives formation off long a perfect off a gravestone. Doje. The bulls are tired now, and bears are also to pick the control. Now if there is gabbed on opening nasty then there is high probability that the trend has reversed for a while. Let's now apply are free trading set up and see how to create gravestone. Doje, first of Christie that is, friend, not friends. Trend must be up in case of Greystone Doje. The next is our that is region often dressed since this is a bearish reversal pattern, so they should form around rather, since levels now as discussed before this can be a trend line or the horizontal resistance level, or even a moving average. The third step is artist. I know. For artists I it should be over what levels the next obvious e for entry. Now the entry level can be opening off next scandal. If it's a gabbed on opening else, wait for the next day scandal to close below the priest on duty on Lee Dan Take country. As said earlier, all Vestager confirmations and now trade candlesticks in isolation and last up is E for exit. Now, friends who can take your target at previous aboard or reverse swing low, please, nor just use your analytical mining setting targets. Training is in fact, never perfect. If the previous wars or swing low is much lower and you don't expect that to cross. Then you can even exit at 50% off that level. Trading is all about generating profits and not being too greedy. You can even exhibit one is to do restore the war issue. Let's see a practical example from the U. S. Stock quitter. As you can see, the stalker's an uptrend here, which is followed by the formation of gravestone Doje. The open and close off this doggy are almost at same level. This has a long upper with and negligible Lord Wick. Does this forms are valued gravestone. Doje, As for price action in next up off the strategy, we will check if this doggies form that region off interest. Now this region, often dressed, must act like a resistance so that the probability of reversal is increased at this level. Let me zoom off the chart and see the previous price action. So this is a Zumar chart. And here is our creative strong Doje. No friends to check of. This is a region off intestine. Lord, I will simply draw a rectangle around this duty and take it backwards. Now can you observe something please notice that this region is in fact acting as a region off interest just off the this condition here and also price bouncing off here. So after break out here, this region must act as a resistance. Friends hope you know, this important fag that previous support generally acts as a strong resistance after break out and vice versa. So we can confirm that this gravestone Luigi is in fact format of major region, often trust which is acting other than just us. Let's zoom back in and check the other parameters. French next step is to check the r S. I, as you can see the exercising or what region and does this also actually in favour off person. Finally, we will take our entry other than next candle. As you can see next Candle had a gap up opening which was in fact not expect Er but still it closed below the breast on duty, which confirmed that we were still Israel. And we can take and rear the opening off next candle so we can take entry here with stop loss Just at the top off this Doje. Lastly, we will take our target travelers at this minor retraced one during this operation. This target was it here And this was in fact, a minor profitable trade. Assad, You can tweet the set up. Ask for your trading style and risk taking abilities. Next, let's you dragon fire! Does he Friendster? Dragon Fly Doje is formed when the open, close and high correct same prize during an average or larger Dailide INGE It has a long lower week. But no, a perfect ah perfect dragon fight. Does evil look like this? Let's see the valid set up French dragon fado Gee formation is very effective at the bottom off the train and often results in market reversals. So whenever the trend is down and there is formation off this duty, then you must consider it as a trading signal. But you can't ignore this doggy in sideways and up trending market. Let's know, understand the psychology behind Dragon Fly? Does he France? Let's assume there is continuous selling pressure in the market as indicated by the Stone train and to the recession, has also started off quite bearish and is currently trading near Day's low. Now, at this point off, the day we have a very beautiful looking candle and sellers look to be in full control. The sellers are simply shorting seeing this long, very scandal. But then the buyers really show up near these laws and start absorbing the selling pressure . The market finally closes the session right back where it was open, leaving a massive IQ at the bottom of the candle. So what exactly happened here? In short, we saw a change in market sentiment, from a beer sentiment to bully sentiment. The lower reveals or failed attempt by the seller's toe move the price lower. The bearish momentum, in fact, did not hold long, and the price rises to close almost on the opening level. No offense after register. Expectation is for reversal and a friend to follow. Now let's apply our three trading set up and see how Great Dragon fire does he. So the first travesty that his trend now they're trend must be down in case or Bragan fi dozy. The next stop is our that is region off interest, since this is a bullish reversal pattern, so they should form around support levels. Now this can be a trend line or horizontal support level, or even a moving average and third step is our. That is artist I now for our insider artists. I should be over sore levels. The next stop was either this entry. Another entry level can be open off next candle If there is a gap of opening as wait for next day scandal to close above the dragon fight Oji Onley, then take the entry. Our last stop is E. That is exit No friends. You can take your target at previous resistance or previous swing high. If the previous resistance or swing high is much higher and you don't expect that to cross than you can even exit at 50% off that level, I will again repeat trading is all of our generating profits and not be too greedy or you can even set your target. Using one is to restore reward ratio as had earlier. Take your targets rationally seeing the whole contraction of the market. You actually look at a practical example. This is the daily chart off transit very Euro USD. As you can see, the currency pair isn't downturn here which leads to formation over Dragon Fried doggy. So ask about our trading set up first condition got this friend is don't work now Let's see if this dragon friend Jody is formed at a region often trust But friends Things are not clear from this chart. You have to off the chart and then look at the broader picture. This one over to the right represents the position of hard driving by dozy friends. Just look at this region here and notice the price record from this level. Before this record, this level was acting as a resistance. So ask for technical analysis after break out, this level should act in a support level. So our condition toe ask for our training. Set up holds court. I will again zoom in and check the other parameters. Now let's check the petition off artists I, as you can notice here the Alice Isen oversold region. Let's take a final confirmation from the Candlestick ritual or one in next training session friends and next day scandal didn't have a gap of opening, so we will wait for the session to close the session. In fact, most hired and the doggy so we can confirm that most probably the market will reverse from this operation and we will take our entry around these levels. Finally, our target will with this resistance level. As you can see, our target was hit here. Please note £4 of emotive traitors who are doubtful of the Stargate. It's possible or not, they can even exit at 50% or even that one is to do restoring water ratio. French hope the example is clear to you. Now Let's see the last of your time. That is long legged goji friends and longer booties. For one, the open and close are at same price levels during a long range. The open and the clothes are almost at the midpoint over exchange does, forming a long, lower and upper weeks. When this Dodea marches during a trending market, then Japanese used to see that marketers loss. It's more in term, and the trend Mary was from here on now this can be a complete reversal. Or even though sideways market a perfect long like George even look like this on your charts. Now let's understand the psychology behind formation off long like Dougie French suppose the market is trending in up for direction, which shows bulls are gaining momentum. But one trading session you will notice formation off Long Blagoje, which indicates that on this particular trading sessions, bulls again tryingto take the prices higher as shown in long upper work. And bears also came in and took the market lower, as indicated by Long Lord with. But the market still closed almost at the same level as open the show's loss of moment off the market in for direction. And if we had a Gabon opening next year or can district closing Lord and this duty, then we can take the trade, depending upon other factors off trading strategy. Now let's apply our free trading set up and see how you create long that. Does he he's noble. Awaken foods, under steps mentioned, are for the case when Longley at duty is formed during an uptrend and we are training for the reversal. As for our tree trimming set up so for trading longer Gaudino Downtrend. Just rework the steps so far. Steppers Defour trend. Now the print must be up in this case that second division off in trust in this case, the part must warm around resistance levels. Now this can be a trend line or horizontal resistance level, or even a moving average. The next is artist I. So for RS I, the artist, I should be overworked levels. The next up was and three. Now the entry Evel will be open off next candle. If it's a gap down opening as wait for next candle to close below the long legged oji. Only then take gentry acid earlier. Always take your confirmations and now a trade candlesticks in isolation. Then finally start with E for exert. No friends. You can take your target that we will support him. Reverse swing low. If the previous a border swing low is much lower and you don't expect that to reach, then you can, even as they get 50% off. That level you can even use one is to restore reward ratio as your target level. Let's see a practical example and see how go apply our tree training set up in case off. Long like dodgy. This is a chart of Reliance industries. In this example, we are treating a longer Doje in case of downtrend. As you can see, the trend is down here, which is followed by formation off a long legged duty. Next check the second step and see if this is formed in a region often trust. Now, if you look at this trend line, you can notice the stalker's respecting this trend line and taking support off this level. And when you observe the position off dodgy, you can notice that matters indeed formed at a region off interest. Now let's check the Alizai, which is almost touching the oversold region. Finally, we get our confirmation when the next day scandal had a gap of opening. This confirms that the reversal is actually riel and we can take the street. We took entry here with our target level list reviews resistance. That is, this level, our target. What hater? And this was a good, profitable trade. I will again repeat, take your target. As for your risk taking couple Realty, the conservative traders can even book the profit at 50% off this level, or even one is to do the story water issue. They can even trail your stop. Losses stood right, the profits higher so friends will decide. Wind of this lecture hope duties are clear to you, though there are some other types of duties as well, but these three are the most relabeled Oh jeez and often generates good, profitable trades 11. The Hammer and the Hanging Man: Hello, friends. Welcome back to another lecture. In this lecture, we learned a second group of single candlestick patterns that is hammered and hanging man pattern. Now these two parents come under the umbrella, go since the shape of bodies are similar toe umbrella due to their short body and one part of the candle and a long week to another. At this point, he's not a very important fact about I'm really broke candles. The color is immaterial in analyzing the umbrella group candles. I hope by now you can answer this question. Yes, friends, because of their short body and along with the color, is not important as open and close are very close to each other. Yet start with a hammer pattern. Friends. The name Hammer comes from the fact that the shape of this pattern looks like a hammer in case off hammer. The open and close are close to each other, forming a tiny real body. The lower week must be at least twice the length off the real body or more the better. As discussed earlier. The real body can be green or red, and finally, there is no or little upper week as shown in these demo hammer patterns. No friends. Hammond is a bullish reversal pattern, and does this should be ideally forming a down train. Now, let's understand the psychology behind this pattern now as a market is in continuous downtrend on the day off hammer formation. Also, the beers dragged the price down during the session, as indicated by long lore Wick. But soon the smart money, person and bullfights strongly and conquers the bears by pushing the price back near to the open of the session, which resulted information off a little square share body. The longer the with the shorter is the likelihood of a reversal. This formation shoes that the sellers momentum has in fact weaken and sellers were not able to push the prices lower. And if next also doubles hold, therefore, then we can say that the reversal Israel and trading position can be taken. Nothing here is nor Darda psychology. Information off Hammer is similar to the Dragon Fly Doje, since here also the long lore with results into likely reversal. However, the hammer forms a real body, but the Dragonflies is expected to have a little or negligible distance between open and close so friends here, I would like to conclude an important point. Now The dragonfly ideology is in fact a stronger indicator of reversal than the hammer. But as you can notice, that distinction is very minute between these two. No, let's understand the breeding set up off hammer Badham friends Asada was almost seem as that Don't dragon fly Doje. So the first step is the four train. Now the trend must be down in case off a hammer. Then next is our that is vision off interest, Francis. This is a bullish reversal pattern, so they should, ideally former on support levels. Now this can be a trendline or horizontal support level or even a moving average. Now for artists I either artist, I should be in also levels. The next is E for entry. Now the entry level can be open off next candle. If there is a gap of opening as we wait for next year scandal to close above the hammer, only then take country. Our last stop was finally exiting the trade. No friends. You can take your target at previous resistance level or previous swing high. He's nor just takes your targets rationally asked for your risk taking capability. If the previous assistance or swing high is much higher and you don't expect that to cross than you can even exit at 50% off that level are, many traders can even use One is to restore the water issue. Let's see a practical example of us talk. Kessler. Just notice the stalk is in downtrend here, which is followed by a formation off hammer Candlestick care, as shown in this yellow walks, just noticed that the size of the work is more than twice the size of body does it some valued hammer pattern. So let's apply our pre treating set up and determine if we can pray to set up. So the first up it's clear that this friend is don't train. Then we noticed that this hammer button is obviously farmed in the region off interest. No, does this support level? Then we will check the artist. I notice this is also in oversold region. Finally, we will wait for the next candle. As you can see, the next session has a gabbed on opening. But the session ended higher than the hammer pattern, which gives a signal that we can go along at around this level. The stop was we get Lauren off the hammer that is here, and Target will be resistance level. That is this. As you can notice, our target ward hit around here, I will again. Repeat, the conservative investors can target one is to do is to reward ratio or even 50% off this level. Now let's go on to the other pattern off the set That is the hanging man pattern. No friends in case off hanging man. The open and close are closer to each other with a long lower, with we just twice the length of the real body. But more the better. The hanging one pattern generally has no or negligible upper week. As shown in these demo Batons says this is a beer is reversal. Barton has. It must form in an uptrend here. Also, the cholera body has least importance. Nothing's before you start raising your eyebrows. I would like to clear an important question, which most new pictures asked. That is worse. The difference between hammer and hanging man, the boat looks similar to me, so friends of formation off hanging man. It seems that off hammer But please know another difference lies in the position off signal that is, the hammer comes after a downtrend. While the hanging man comes after an up train, hope the difference is clear to you. No, let's understand the psychology off hanging man pattern friends. As a price rises steadily, forming an upturn one day, you see the price falling heavily. Generally do do selling pressure now. This can be because of profit booking by the big bulls off the market or even expensive valuation off the market. Seeing the price drop, the retail investor generally took this as an entry opportunity at lower prices. This leads to price recovery and it and slightly above or below the opening price. So this is how the hanging man part on his form does. The hanging man can be treated as four signal of weakness during an operation. Now let's understand that trading set up, so the first step is T four trend. Another trend must be up in case off hanging man, then second, it's a region off interest French, since this is obviously a powerful pattern, so they should form around resistance levels. This can be a trend line or a horizontal resistance level or even a moving average. Now for our insider Alice, I should be overworked levels. Then the entry level can be opening off next candle if it's a gap down, hoping as wait for the next day scandal to close below the Hanging Man candle. Only then take country asset earlier. Always take your confirmations and now a trade. Candlesticks and isolation. Finally, the last of his exit from the train. No friends. You can take your target at previous support level or previous swing low. If the previous support or swing low is much lower and you don't expect that to cross, then you can even exit at 50% off. That level you can even exit with one is to do this to the war issue or even trail your stop loss and write your profits longer. Let's look at the practical example of Hanging Man from both Tesla shark. As you can see the trendy apparel, which is followed by formation off hanging man in this yellow box. Let's check other conferencing points off our three seconds, so let's check the region off interest. French dish art is not showing any region. I will just do more of the SHAR to have a comprehensive view. No friends. This is a sumo chart. And here is a hanging man pattern. Now, can you conclude anything here? Just noticed this trend lane and see how the prices respecting this trend line this trend line is in fact acting as a strong resistance level. Does you can see that are hanging, Man Candle is formed at a region off interest lasts only no name. So let's check the A C as you can see the Erez Eisen overboard region. Finally, we take our entry here at the gap down, opening their target off this region of congestion. As you can see, this target was achieved here. So friends hope this set off single Candlestick reversal pattern is clear to you in next lecture. We will London inverted, however, and shooting started, we're still patterns 12. The Inverted Hammer and The Shooting Star: Hello, friends. Welcome back to a new lecture. In this lecture, we will learn the last set off single candlestick patterns that I have the inverted hammer and the shooting star patterns. These two are very what and reversal candlestick patterns. Let's understand each of these in today. The 1st 1 is in What did hammer pattern? First name in water. Hammer comes from its ship that is similar to that often inverted hammer. No friends in what it hammer is in fact form near the bottom. Off a down train. The open and close are near to each other. That's forming a small, real body. There must be a long copper victor. Must be, at least why is the land off real body, but all the better. The open must be close to the law or should have only a negligible lord with since the over and clothes are very close to each other has color of the bodies in material here. Next, friends of significance off in wooded hammer comes from its long a perfect but still a green body has slight, and one day is over a red body in case off inverted hammer. Let's understand the psychology behind formation off in Water Hammer Friends, as you have known earlier in what Did Hammer, is a signal of bullish reversal after a down train. No, as the market isn't downtrend, there is panic in the markets, and this is the time when smart money starts pouring in, seeing the low valuations. So one day the bull step in and takes the market high, as represented with a long operatic, eventually the beers driving back down and manages to close the session near doorman. But this session has shown the strong presence of bulls, and if the next day, also the bull show their strong presence again, then the reversal is, in fact, riel and traders can look for long opportunities. Now let's look at our pre set up and see how to even this morning, what did hammer? So the first time was all mostly P for trend. Now the trend must be down in case off in what did hammer the next is region off in trust friends, since this is a bullish reversal pattern, so they should I really form around support levels. Now this can be a trendline or horizontal support level, are moving average or even Fibonacci levels. Next, the artist. I should be in over four levels. Finally, the entry level can be open off next candle. If there is a gap of opening as wait for next year scandal to close above the hammer, only then take the entry. Our last stop of the strategy is exit. No friends. You can take your target at previous resistance or even swing high if the previous assistance or swing high is much higher and you're going to expect that to cross than you can even exit at 50% off that level are, many traders can even use. One is to do restore reward ratio or you won't trail the stop loss on writing the profits longer. Let's look at a practical example off us talk wrestler as you can see the stalkers in downtrend here, which is followed by the formation off in what did hammer here. This is a valued formation, as is clear from the land of the vic, which is more than twice the length of the body. Now let's look at if this is formed at the region off interest for this, I will do more of the shark friends are invited. Hammered is located here and as you can see this in what it hammer is indeed formed at a support level. So our second condition of our tree strategy words good for this unwatered hammer. Now let me zoom in the charter game. Next, let's check the artist I and you can observe the artist is an oversold range. Finally, we will take our entry depending upon formation off next candle. What friends? Before that I will introduce you the volume here. This is another convincing factor which you can use in the strategy to get high probability trades now in increasing or increased volume shows increased momentum or vulnerability in the market. The above average volume one. The day before the signal formation she was bulls are gaining momentum. I was just removed A volume toe Have some clarity. Some friend As you can see, the next section Candle had a gap up opening that we will take under. Here are the opening off candle without target as just a resistance level. As you can see, the target was hit at around this candle. So when this is all about inverted hammer next let us go on to the other part of this candlestick pattern. No, let's see the next pattern off. The said that this shooting star, nothing shooting Start is formed in our prayer does. It's a beautiful reversal pattern. The formation of this pattern is similar to get off in what did hammer that is the open and closer near to each other that's forming a small, real body. There is a long paperwork that must be at least twice a land of the real body. But more the better the open must be are the law or should have only a negligible Lord Beric, since the open and close are very close to each other, has the color of body is a material here. Francis Significance Off Shooting star also comes from its long A perfect also. Nor the name shooting star comes from the fact that this pattern almost resemble the star that is suddenly falling from the sky to the earth. No friends. The only difference between in what did Amber and shooting started is their location, and in what did hammer Roker's in a downtrend while the shooting star appears in an uptrend . So in a shooting star or read what he has slighted one days over a green body. Let's understand the psychology off a shooting star, friends and get off shooting star. The market isn't up train, and this also continues on the D or shooting star formation. The bulls continuously pushed the price off during the session, resulting in a long operate. But seeing the green in the market or extra heat and markets the smart when he sees this as a shorting opportunity. And there's a beer fight strongly and conquers a bull by dragging the price below or near the opening level, forming a little square shaped body. So in case of shooting star, the longer the upper shadow, the more effective the beer signal is. It tells us that the beers are strong enough to conquer the bulls, who are once in full control of the market. No, let's understand operating set up. So in first half, the trend must be up in gets off shooting star. The next is vision often trust no friends, since this is a beer is reversal pattern. So the shoot ideally formed around resistance levels. Now this can be a train line or horizontal resistance level or even a moving average. Now for our insider artist, I should be in over what levels. Then the entry level can be open off next candle. If it's a gap down, opening else, wait for naturally a scandal to close below the shooting star Onley. Then take the entry finally, to set the targets. Friends. You can take your target at reversible about our previous swing low. But in the previous support or swing low is much lower and you don't expect that to cross than you can even exit at 50% off. That level you can even exit with one is to go this total war ratio or trail your stop loss for writing the profits higher. Let's see your practical example and understand the application. This is US dollar Kennedy and Dollar For a chart. As you can see, the currency PR is an uptrend here, which is followed by the formation off a shooting star. Please notice This has a long upper bake with a small red body and the lower side also in order. Size out of it is more than twice that a body, so this is a value shooting star pattern. Next let's check. If this is formed at a general interest for this, I will zoom on the chart to have a look at previous price action. As you can see, the shooting start is indeed form that a media resistance level as its care from all these price reductions. Next, we will look at the artist's eye as you can see, the artist is in or what region which add on to the probability off reversal from this level. So finally, we will take our Andre depending upon next candle the next candle close below the shooting star. And as we will take our entry here, our target will be the swing low. As you can see, this target was hit here. The traders could have even trailed their stop loss to have higher profits. So friends hope the example is clear to you. From next lecture will start discussing to Candlestick patterns. See you again in the next section. 13. Engulfing Patterns: Hello, friends. Welcome back to a new lecture From this lecture. We will start to Candlestick Patterns. So in next few lectures you will under fall into Candlestick croutons. 1st 1 is the engulfing patterns that is a bullish and golfing and the bearish engulfing patterns this we will cover in this lecture. After this, we will cover the dark, low and the piercing signal. No, we will, under Khatami patterns that is the beautician bullish Aram apartment. And finally, we will learn the bullish and bearish railway track patterns. Nothing's most books or instructors teach parents of two number tree, but I have found rave attract part on very effective, and it's included in one of my favorite candlestick patterns. In this lecture, we will London and golfing patterns. So let's start with bullish engulfing back on Friends of bullish engulfing is a candlestick bullish reversal pattern, so there must be a proceeding down train. When this pattern occurs, you can easily identify this pattern were to oppose it colored of your bodies in case of bullish engulfing. The second a is green. Real body must totally engulf the first day Israel red body that is the green candle open lowers and close hired under Red Candle. If you are confused with the time and golfing than engulfing basically means overlapping, please. Nobody should compare the bodies only and not a full range of candle. Let's understand the psychology behind formation and reversal After bullish engulfing pattern French supporter, stock or currency, Pierre is in continuous downtrend. Now this creates panic in the investors, and they start exiting at lower levels. So this creates the long red candle on the first day Now because of this huge selloff next day, that's talk opens with a gap down opening. But now the smart money poison since the start looks attractive at these lower levels. So doubles overtake beers comprehensively and stop finally closes above the previous day's Red Candle does creating green and golfing candle. The bulls, in fact, have not fully over it on the bears. The stock it doesn't ready for a day or so Friends of bullish engulfing pattern is a most bullish off all bullish reversal patterns. This is because the counterattack shown by the Bulls on the second day completely nullifies the downward pressure made by the beers on the first day. By closing the second day higher than the open off Thursday. Let's now look at the trading set up and see how to apply a pre set up here. Not a friend must be down in case or bullish engulfing pattern. The second is region often does no French, since this is a bullish reversal pattern, so it should, ideally, former home support levels. Now this can be a trendline or horizontal support level, are moving average or even Fibonacci levels number as I should be over four levels. Finally, the entry level can be open off Next candle, that is day three. Candle. If there is a gap up opening else, wait for next year scandal. That is their three candle who close above the green candle of the pattern. Only then take country. Finally, you can take your target at previous resistance or levy a swing. I if the previous assistance or swing high is much higher and you don't expect that to cross than you can even exit at 50% off that level or paraders can even use one is to do is to reward ratio. Asset takes your targets internationally, seeing the overall context off the market. Let's see a practical example. This is the Charter bank Nifty. And he's noticed Downtrend Here. Notice This downtrend is followed by the formation of a coalition golfing pattern. As shown in this yellow box, I will just do more this part. And now you can see this part clearly. Please notice for Strat, candle is a small water candle and next green candle has a cab down opening and completely engulfed their red candle body, thereby making a valid polish engulfing Kratom. Let's see if this is formed out of vision, often trust that was about to have a broader picture. No offense, but this is a location off our bullish engulfing pattern. Not to find the region off interest. I will just dry region around this pattern and take it backwards. Now you can notice this level acted as a strong resistance level here. So after break out at this point, this level must act as a strong support level. I hope you remember this important concept with respect to support and resistance is so conditioned to off our trading set up is fulfilled here. Let's zoom in and see other conditions as well. Next, we will check the artist I and as you can see, the artist is just touching the old or region. Finally, we will wait for the next candle. As you can see, the next candle closes above the green candle of the pattern which confirms our entry here . Our target with displaying high and they started it got hit here. As you will notice, this was a trade which required patients. But obviously this is one of the most important quality. Every trader must have some friends hold retreating, set up. It's clear to you I actually want to. The second engulfing pattern that is bearish engulfing pattern friends of bearish engulfing is a cool diabetes reversal pattern, so there must be a christening up grand before the formation off. This pattern you can easily identify it with were to oppose it colored real bodies in case of bearish engulfing the second days of red real body must totally under the first days screen. Real body, that is. The red candle opens higher and closes lower than the green candle. He's no, the vics are not important here, but shorter the better. Let's understand the psychology behind formation and reversal after bearish engulfing pattern not friends. Just imagine the stalkers and continuous up train. There is exuberance in the market, which is Earth's information off green candle, implying the complete control of the bulls. You do this continuing. A trend of market opens above the high off the green candle next day, indicating the complete grip of bullet forces. But now the smart money or big players enter the market and the start booking the profits or enter fresh short trades seeing the overheated markets. Finally, the bulls lose momentum. The bear steak charge and send surprise down during the session and eventually manages to close below the law. Green candle. Finally, the bulls are in full control of the market, and market is second fall, let under standard trading set up. Now the trend must be up in case off the aeration golfing the next. Is vision off impressed now, since this is a bearish reversal patterns, so they should form around resistance levels. Now, this can be a trend line or horizontal distance level or even a moving average. Another address. I should be overworked levels done. The entry level can be opening off next candle, that is the tree candle. If It's a gap down. Opening else wait for next day scandal that is the tree candle to close below the wreck and all of the pattern on Lee. Don't take the entry as said earlier. Always take your confirmations and never trade candlesticks in isolation. Nothing's finally, you can take your target at previous support or previous swing low. If the previous support or swing low is much lower and you don't expect that to cross, then you can even exit at 50% off that level. You can also exit red. One is to do restore water issue. Let's see the obligation of the strategy with the help of this yard. This is a chart off us talk apple and as you can see, the trend is a pair. After reaching this resistance level, the prices we trace down, but again the uptrend continue. As you can see, this is followed by the formation off. A bearish and golfing pattern on the stock is again testing this city of resistance. No offense, please notice. This region has deviously acted at that strong in the sense level. So now also, the probability is high that this level will act at a strong resistance. Let's see if the pattern formed is valid, bearish, engulfing or not, As you can see, the first candle is a green candle, which, which is completely under by go red candle body. The red candle had a gap of opening and close below the previous green candle, thereby making a perfect variation golfing pattern. Next, let's check the position off artists. I, as you can see, the other side, is just touching the old board region. But seeing the price action off the chart and strong rejection previously, we should not miss the street. Finally, our entry will depend upon the next candle after the pattern. Now the next scandal was a bearish scandal that, close below the pattern, does we will go ahead with the trade around this level. Our target will be this previous swing low, which got hit around this level. So friends hope the example is clear to you. So it is our wind of this lecture this is all about and golfing patterns. In the next lecture, we will learn the dark load and a piercing line patterns 14. The Dark Coud and Piercing Line Patterns: Hello, friends. Welcome back to a new lecture. In this lecture, we will learn a second set off to Candlestick Parton's that Is Piercing Line and Dark Lochore. Let's start for discussing piercing pattern, which is a bullish reversal pattern. France. A piercing line is a two day bullish reversal pattern. Does this pattern is off importance when formed in a don't train? This pattern can be identified by the feature that heard the second day's green real body Pierce's back into or above the midpoint off the first days Real red body. Or simply you can say that the second day's green body must have a gap down opening but closes at 50% or above the first days red body that is here. Our typical piercing partner can look like any of these important point here is to Nor this green candle, which opens below the clothes off previous scandal but closes above this 50% dotted line. Friends hold. The concept is clear to you, and you can easily identify this on your charts. Let's now look at the psychology. Were information off this partner and and why it leads to a reversal. First, just say the market isn't don't train as this frustrate candle also implies the control of beers in next session. The market hasn't gabbed on opening and opens below the law of the first red candle, which indicates that beards are still holding the four and suggest continuation. Off down train Martin, Big player Start buying at these lower levels, which led to loss in moment or more beers. The bulls conquer and take surprise up during the session and eventually manages to close above the 50% levels from the previous day's candle body. Some friends by now you can analyze that this reversal. Bratton is less powerful than bullish, engulfing since in bullish engulfing, bulls come out strong and close the candle above the red candle body, but in piercing Goebbels came out strong, but not as powerful as that are bullish engulfing friends a small historical fact here. The Japanese used to give great importance to number two candle off any pattern, their phone over the centuries, that if Bull manages to close the second a scandal more than half a above the red candle, then the probability is very high. That reversal Israel. Let's look at the trading Satyam and see how to apply your tree strategy here. For us, the trend must be down in case appears in part time, then the region off interest. Now, Francis, this is a bullet reversal pattern. So this should for moral support levels. Now, this can be a trendline or horizontal support level. Ah, moving average or even Fibonacci levels. Now for our insider artist, I should be oversold levels. No friends entry level can be open off next candle. That is their three candle. If there is gap up opening else, wait for next day scandal. That is the three candle to close above the green candle of the pattern on Lee. Then take the entry, our last stop of the started years E that has exit no friends. You can take your target at previous a distance or previous swing high. If the previous with the stance or swing high is much higher and you don't expect that to cross, then you can even exit at 50% off that level, or you can even exhibit One is to do restore reward ratio as that take your targets rationally seeing the old picture of the market. Let's see a practical example from nifty chart. As you can see, the trend is down for so many days, which is followed by formation off years in pattern as shown in the yellow box. Now, when you analyze both the candles, you will see there to candle close below the closing off of one candle and close just out of 50% mark off previous red candle body. So the piercing pattern form is in fact, valid pattern. Let's move or hurt and apply your predating strategy. We will next check if the pattern is formed at a vision off interest. For that, I will zoom on the charts so that we can have a larger picture off price section of the market. Now here is our piercing Barton, and when you see carefully human notice that the pattern is indeed formed at our region, off support does. It's highly probable that reversal may happen. Finally, we will check the Iris I, now the assize, touching the also region. We will accept this and take our entry at opening off this next day scandal, which was gap A. By the way, the aggressive target will be this about Swing Region, which got hit here, but conservative traders can take the target with. One is to do with story war issue friends hold. The example is clear to you. Let's move on to the other part. On off the set that is dark cloud over Britain, Friends of Dark, Locked over is also a two day beers reversal pattern. Does this pattern is off? Importance ran, formed in an up train. This problem can. We are identified by the feature that here the second day's read real body falls down below the big point off the first green. Real body, or simply you can say the second days of red body must have a gap of opening but closes at 50% or below off the first days green body. Our typical dark cloud cover part on will look like any of these important point. Hate is too, no doubt the second Red candle, which opens above the clothes off previous scandal but closes below this 50% dotted line hold. The concept is clear to you, and you can easily identify this part out on their chance. Let's look at the psychology behind formation off this pattern and why it leads to reversal friends. As the trend is up, the bulls are in full control, and first green candle of the pattern also indicates uncontrollables in next session. The market have a gap up opening and candle opens above the high off the green candle, which is that the bulls are still in control and meeting this really forward. But as the market becomes overrated, big place enter the scene and starts profit booking and again takes new positions in the market. Doubles, then lose the momentum as the beer start conquering the market. The beers then take the price lower during the session and eventually manages to close the price at 50% or more from the previous session. French hope the psychology behind this pattern is clear to you. Let's understand the trading set up for dark cloud cover pattern. Another friend must be up in case on dark cloud cover. Next, is region off interest? No, Francis. This is a very supercell Barton, so this should form around resistance levels now. This can be a trend line or horizontal resistance level, or even a moving average. No for artists either, as I should be in overworked levels. Then first the entry can be opening off next day. Scandal that is, their tree can low if it's a gap down. Opening has just wait for Dexia scandal that is the tree candle to close below the rat candle of the pattern on Lee. Then take the entry as said earlier, always Steger confirmations and now a trade candlestick in isolation. Finally, you can take your target at previous supporter Reverse Swing low. If previous supporters swing low is much lower and you don't expect that to cross, then you can even exit at 50% off. That level you can even exit with one is to restore the war or trail your stop loss. To write the profits longer lets you example to understand the set of better. This is a chart on U. S stock Facebook, as you can see, the stalkers in operating here, which is followed by the formation of this dark cloud cover pattern. Let's check if this is a valid pattern on or he's in order for scandal is a long, bullish green candle, and the second red candle had a gap of opening and closing into the 50% body off the first green candle. Moreover, since this pattern is forming, an up train does. It's a valid dark Lord cover pattern. Please notice this back on his farm, Addison is just level just point to off, are set up, holds good here. Then we will take a look at Alice I, the Assize Also the vineyards confirmation. Finally, we will wait for the next candle, as you can see next candle close below the pattern which gives us a go ahead with the trade at around this level. Our target, as for Saturday, will be the swing low, which unfortunately was missed. But conservative traders with one is to do this to reward ratio. Could have at you their targets very easily. Friends, even though aggressive target was missed. But still, for traders who would have trailed their stop laws, this trade was in fact a profitable trade. So friends with desire wind up this lecture hope this set off who Candlestick patterns is scared to you. In next lecture, we will learn the third set off to kind of secret on that is Haram me Candlestick patterns 15. The Harami (Bearish Bullish): Hello, friends. Welcome back to a new lecture in this lecture. We will look at the third set off who candlestick patterns that is bullish. Karami and Berisha Rami patterns. Let's first start with bullish Harambe pattern. Friends of Bullish Khatami's a bullish reversal pattern, so it will be formed when the market isn't. Don't bring. The first candle is a long red candle, which is followed by small green candle. He's nor the second day's green candle must recite within the first days red candle body. Or, in other words, you can say that the second a scandal has a gap of opening of the previous close and closes within the first days Red body. The example shown below are perfect bullish Rami patterns. Just notice the second green candle has a gap up opening and also closing below the open off red candle. Also in order. Second, green candle has a shorter body, and it must be green in color. Lastly, it is not necessary for the vics off the smaller candle Toby within the range of previous scandal. Now you must be wondering why this pattern is Dame Haram E First name Haram E is derived from Japanese were Haram Me means pregnant. So if you just use your imagination and look carefully at the pattern, you will yourself realize how the pattern got its name. I guess if you join these doors are on this part on, you will end up with something that resembles the airplane off a pregnant woman. The first red candle depicts the mother candle. Why your second short green candle, the trickster futures. Next, let's understand the psychology behind formation off bullish Karami Pattern. Friends of Bullish on Army is formed after a continuous downtrend and first candle that is long red candle. Also, the extent beers are in full control and market is all sacra bro photo. But first, due to some news or changing market sentiments after trading us that demand for securities underrated and next day there is a gap of opening. This makes the beers nervous, and those who were in short trades begins to close their position and starts profit booking . Visually, it's two more rise in the stock price, and that's managing to close the store below the open off previous red candle. If the bulls are still holding the fort next day than the show that reversal is imminent and we can enter into long trades. Now let's see the training set up. As for our three trading strategy now the economists were down in case of Polish army. Next, the vision off interest. No, Francis. This is a bullish reversal pattern. So this pattern should I really form around the support levels now? This can be a trend line or horizontal support level or moving average or even Fibonacci levels. Now, for our aside, as I should be in over sore levels, then the entry level can be opening off next. Candor that is the three candle. If there is a gap of opening as wait for next day scandal, that is the tree candle to close above the red candle of the pattern on Lee. Then take the entry, our last about the started. He is exit no friends. You can take your target at previous resistance or previous swing high. If the previous resistance or swing high are much higher and you don't expect that to cross , then you can even exit at 50%. Off that level. Many traders even use one is to do is to do our ratio as that take your targets rationally using the full context of the market. Let's look at a practical example from Reliance Industries. As you can see the stalkers in downturn here, This is followed by a formation off a bullish harambe pattern. Just observe the first candle. In noted by one is a long red candle and the second candle is a short green candle with a gap up opening and closing valuable in the body off previous red candle. So this is a valid bullish Karami pattern. Then we will check if this is formed at our region off interest. That was amount of it to have a comprehensive view. As you can see, the pattern is formed at a major regional support. This condition to off our trading sort of holds true here. You will also observe that very certain sport in the volume on haven visuals move and don't have the market. Let me hide the volume to have a better view. Next we will check the artist I and you can see that are sizing oversold region. So finally we have to wait for third candle before we dive into the trade. As you can see the third candle is a gap of opening, which gives us confirmation and green signal to enter into the trade. So that gap of opening we enter into the trade at around these levels. But as you can see, this was a red candle. But it's okay. This happened in training and we will stick to our trading Second are targeted with this swing high, and if you trail your stop loss, you could have, even now, higher profits. As you can see our target portrait at around these levels, let's look at another example from the stock oracle. As you can see the stalkers in downtrend here, and this is followed by the formation of bullish Army pattern. Please note. The first candle is a long red candle, and second green candle had a small gap up opening and close velvet in the previous red candle. Does it seem valid? Bullish Harambe pattern Next electric. If it's formed in a region off interest, let me someone from the chart to have a wider picture off price action. As you can notice, this bullish Harambe pattern is indeed form that our vision often trust. Decision was acting as a support here and before record from this level, it was acting at a strong resistance level, as you can see here. So this region must, after the strong support for this bullish Rami pattern. Also let me zoom in the chart and proceed without reading. Set up. Next we will check the artist I and you can notice that our size touching the over four region. I will take this as a green signal. Finally, we will wait for the third candle toe picker and three into the trade. Just noticed this third candle has a gap of opening. We just more contracts to this reversal to carry on does we will take our entry at this camp of opening with a target as dis resistance level. The target in this case was easy at you. Friends hope the trading start. It was clear to you Let's now look at the baby shower. Mommy batter Friends of Berisha Rami Pattern is a two beers reversal pattern. Does it is form after an uptrend. In this pattern along green candle is followed by a small red candle The second days ahead body must recite within the first years green body in other words. The second is that candle forms a gap down, opening and closing of the open off devious green body. A variation on the pattern will look like this. Just noticed a small red candle body form inside the long green candle body. Let's know, understand the psychology behind formation. Off this pattern, friends, there be additional B. Pathan is formed after a continuous, up ran and first candle that is long green. Candle also depicts that bulls are in full control on market is all set to rise for the next day. But due to some negative news or change in market sentiments after training us their demand for the securities decrees and next day and it is a cab down opening. This makes herbal snowblowers, and those who were in long trade begins closing their positions and starts profit booking, which leads to more drop in stock price but nonetheless managing to close the stock of off the open off previously is Green Candle. If the beers are still holding the fort next day, that is the tree than the shows. That reversal is imminent and we can enter into short rates. Next. Understand that reading set up Now the trend must be up in gets off bearish army. The next is region off interest Now, Francis. This is a beautiful reversal pattern, so they should, ideally form around resistance levels. Now this can be a trendline or horizontal resistance level, or even a moving average. No for others either, as I should be overworked levels, no friends, the intrigue and the opening off next candle that is third candle. If it's a gabbed on opening as wait for the next candle, that is third candle to close below the red candle of the pattern. Onley denting country asset earlier. Always take your confirmations and never trade candlesticks in isolation. Finally, you can take your target at the VA support or reverse swing low. If the TV a supporter swing low, are much lower and you don't expect that to cross than you can even exit at 50% off that level and acid earlier you can even trade with one is to do the story war ratio or even trail your stop losses. That's no applied the set up in a practical example. Now this is the chart off GDP, US dollar and, as you can see the currency pair isn't a print here. This friend is followed by the formation of a bearish Harambe pattern. He's nor the four Scandal is a long green candle, and second candle is a shorter red candle within the body of us green candle that this is a very, very Shalabi problem. Next, let's check if this is formed in a region off interest for this have resume or discharge so that we can have a look at previous price action in this currency. Pierre, Now here is our beauty shop me part time friends. When I dry rectangle backwards along this pattern you can off of their decision is indeed acting as a major region off interest. Just look at how this region is acting as a support here and after break out. This is acting other resistance at all these places so we can conclude that this beer economy part on, is indeed form that a major regional registers. The probability of reversal is huge at this level. Next, let's check the artist I, as you can see, the other side isn't overboard region. Finally, we will take our entry at this level after this long red candle is closed below the pattern . No friends for target levels. He's noticed that this uptrend is not small. There are lots of congestion areas along the up train, and when such areas are there, it's always recommended toe. Take the target. Er these condition areas only now This is because on the price again, test these congestion areas most often you will see these acting as strong support or other stances does Our first condition area is this level, so I will take the target as this level. Now traders can even trail there, stop losses to write the profits higher. So friends we decide wind up this lecture. This is all about Khatami patterns. In next lecture, we will look at the railway track right on. These are also took Candlestick reversal patterns. 16. The Bullish and Bearish Railway Track Pattern: Hello, friends. Welcome back to a new lecture. In this lecture, we will learn the last sort off to candlestick patterns. That is JV track pattern French despaired on is one of the easiest and most profitable set up, but only if it is treated properly. This paradigm is very effective in telling the market reversals. And above all, this pattern lets you write the trend for much longer durations. So if a stalker currency br is in a train, then it should be in your watch list. And once you see this formation, then probability of reversal is very high. So what is real? It, like random friends, are really attract. Martin is fairly easy to sport. The river track pattern consists off two candlesticks off almost equal bodies. What oppose it in color, that is, one is bullish and others bearish or wise for so so really attract pattern. Looks like any of these pair of candles no deserved the bodies off both The candles are almost equal in length, since this pattern looks like a really retract with long and almost equal candle bodies hand six, often called a village Iraq, Britain Let us now see some characteristics off this pattern and how you can effectively support this pattern on in naked chart. Least pay attention as this forms the basis of identification between a valid and invalid pattern. The first is that who candles off the paradigm must have bodies, which are almost equal inland. No, Dad, we don't consider weeks well, considering the size. Also, the size of the body need not we exactly equal. As in trading, nothing is perfect as a reference. That difference between sizes off the body should not be more than continued 30%. While considering acceptable really track patterns, I would like to discuss another point or I should say, the confusion which illustrators have that is. Many traders start competing this pattern with previous patterns that we learned earlier, like Engulfing or Haram Everton's. But the fact is, this pattern is completely different from both these partners. No doubt in her army, the size of the child can. It doesn't matter. But here the size off one candle should not be less than 70 or 80% of the other candle. I hope by now you can differentiate between the Haram me or engulfing patterns with this real Vitra Quentin. The next is the size of these two. Candles must be longer than average. That is open and close must be far from each other and not closer to each other like that off duty or pin bars. Another point to consider is the position of Buddha candles. You remember that candles should be almost that same level that is bold. These patterns are acceptable really track patterns. While this 3rd 1 is not considered a real track part time because of positioning off candles, the difference is I should not be like this. Last year will be tracked part injured, forming a train that is local for this pattern in either uptrend or downtrend. Never trade this pattern in choppy markets. So if you see that are putting, let's talk is an upturn. Then add that to your watch list. You might find a good trading opportunity in coming days. No Lexie types of railway track. Parton's France really track pattern occurs in two forms. First, is bullish really would rock bottom and second is being Israel. But required on that does he each one in today. Let's first look at bullish railway track pattern. Friends of bliss revert back. Barton has all the characteristics as we discussed before. The only changes in bullish railway track partner The first candle is bare is that is rad. And second Candle is bullish that the screen, since pattern denotes trend reversal from down Trento up ran, as these are often found out down swings or during down trends does. If you see Bullish River Track Barton at important price action zones like supports with Bonacci levels or downtrend lines, then stay alert for possible reversal of trend from downtrend. Uptrend. Let's see the trading steps. As for our strategy now, as you have seen, the trend must be down in case or bullish. Really attract Martin. Next, we have to check with the general from trust. Now, for instance, is a bullish reversal pattern, so it should be formed around reversal levels. Now this can be a trendline or horizontal support level, are moving average or even Fibonacci levels. No for a. So I should be in over four levels. No friends. The entry level can be opening off next candle that is the a tree candle. If there is a gap of opening else we'd for next day scandal that is their three candles to close above the clothes off green candle of the pattern on Lee. Then take country. Finally, you can take your target at Revis Resistance or leave s going high. If the previous resistance are suing, I is much higher and you don't expect that to cross. Then you can even exit at 50% Off that level, or many traders even use one is to do is to do our ratio. The best would be to trail your stop loss in case off this patterns. Since this pattern often generates high profits, let's apply the strategy in this example off nifty index. As you can see, the trend is down here, which is followed by formation off, Really track pattern lease in order for a scandal is a long, very scandal. And second candle is a long, bullish candle. Both are long body candles and almost that same level does. This is a valid bullish railway track Wharton. Next, we will check if this is formed at a region often trust France. As you can see this pattern this form that a region off support, then we will check the Alizai friends are size. Just touching the oversold region does. We will take this as a green signal and finally our entry will be close off this green candle which confirms that reversal is real and not fake. Our target will be this wing high and it's got hit here. Also no stop loss will be lure of the candle bodies again. The stop loss should be selected judicially after proper analyzing the price action off the market friends hold. The example is clear to you. No luck. CB Rees Railway track pattern in a very real attract part, unforced candle is bullish and second candle is bearish. Beer is really good. Record on denotes trend reversal from opera to downtrend. Has these are often found out upswings or in Upton does. If you see your beer dish really will track pattern at important price action zones like the resistance is futile. Nazi levels are up trend lines and stay alert for possible reversal. A friend from uptrend downtrend. Nothing's before moving forward. Let's understand the basic price action behind the formation off railway track pattern. I will explain you with the help of a Berries railway track pattern. Friends, this is the daily chart of Bitcoin U S. Dollar. As you know, a bearish reliever track pattern is formed in an uptrend, and since the trend is up, most readers go for long conditions, and that's forming a long, bullish candle. Now, as illustrators realized that a major region off interest has been leased, which is acting like a strong resistance, they immediately closed their positions and get into the opposite side of the market. That is, instead off long. Now the switch over too short positions does huge. Exiting the market positions causes formation off long, very scandal. And with this date is reversal due to changed market sentiment, from bullets to bearish. Over this, you are clear with the psychology behind formation often really track pattern France Price action works on the psychology of the market, and if you can read the psychology of the market, then you can easily read the price movements, and hence you can take good positions in the market. Let's see the training set up in case of beer. Israel Track pattern. Now, as you have learned, that trend must be up in case of beer is really attract, then for region off interest. Since This is a bearish reversal part time, so they should ideally form around for the distance levels. Now this can be a trend line or horse under resistance level or even a moving average. Then for decider address, I should be overbought levels. So after all these confirmations are entry level can be the opening off next candle that is their three candle. If it's a gap down opening else, wait for the next day scandal. That is the tree candle to close below the red candle of the pattern. Only then take the entry. I s earlier always taken formations and now a trade candlesticks in isolation. Finally, friends, you can take your target at Riva support or previous swing low. If the previous support or swing low is much lower and you don't expect that to cross, then you can, even as it at 50% off the level. France treating is all amore generating profits and not being too greedy. You can even exhibit one is to do restore reward ratio. Let's see your practical example and understand that start off being Israel would wreck Britain. This is the charter Bitcoins U S dollar. You can see the trend is off, which is followed by formation off. A beer is really track. Please note. The first candle is a long green candle and second candle is a long red candle. Both are long and both are almost that same level. Does we can conclude that this is a valid beer is really attract pattern. No movie, Jack, if this is a credible pattern or not for that let's see if this is formed out of vision, off interest friends, when we zoom or the chart and look at the larger picture, we see that this very Zvilli track Barton, is formed at a media resistance level. This in fact, adds to the probability off reversal. Next, we also observed that war looming above average. An artist, I is also in over what region? Finally, we will take and get close off this red candle around this level and I will take the target at this level of congestion. Please know this congestion around here is an important vision off interest. As you can see your target What hit around here? Please, no. Do crap even take up the swing low as your target. But that would have been very aggressive. Target French. Let us know, discuss some and one days off. This really attract Barton. The first is it is very easy to sport and offers frequently. French decide of is very easy to sport and awkward frequently in charts does. If you are aggressive trader, then you will get ample creating opportunities. The second is high distilled water Issue first, this trade startup gives very high risk to reward ratio. Generally we go for one is to restore reward, but even one is too trees relies. On many occasions, the Antarctic is easy and three into the trade friends. The best part of the set up is you get into the trend very early and hence right on the way for long term. Those profitability margins are very good in this candlestick pattern. So we designed wind of this lecture. Hope really track pattern is clear to you 17. Morning and Evening Star Patterns: Hello friends, welcome back to a new lecture. Transform this lecture we will start with some complex candlestick patterns. All the patterns discussed in this module are three candlestick patterns and are considered very powerful. When record on our candlestick charts, I will primarily focus on the Morning Star and the Evening Star candlestick patterns. Since these are the best and most profitable three candlestick patterns. Though there are some other three candlestick patterns as well, like 3-white solders and three black roles. But frankly, I don't use them much in trading due to two important reasons. First is the difference between stop-loss and entries very large in these two patterns, this unnecessarily increases our risk and decreases reward. The second reason is by the time trader takes the entry, the stock or current CPR is already well I into the reversal and there is not much gas left in that stock or currency pair. So for these two specific reasons, I have found both these patterns not much profitable. But for informational purposes, I will discuss both these patterns. But for grading purpose, I would not advise to trade these unless and until the price action on the chart is really favorable. So as said earlier in this lecture, we will discuss the first set, that is the Morning Star and the Evening Star patterns. Now both these patterns are reversal candlestick patterns. The Morningstar is a bullish reversal pattern. Why evening star is a bearish reversal pattern? Let's start with morning shot better friends for a Morningstar pattern on the previous trend must be downtrend. Since this is a three candlestick pattern, the first candle must be a red candle with a long body. The second candle opens with a gap down and has a small red or green body, which in fact shows indecision. Please note here, if the weeks of this candle are smaller, the better it is. Only thing you must look at is a small body and preferably gap down opening. And finally, the third Candle has a gap of opening and closes at least and 50 percent into the first candle body. Now France, you can see Morningstar in various forms like any of these. Please note all of these have similar characteristics as per our definition. The first candle of each of these pattern is a long red candle. Second is a small candle with a gap down opening. And finally third Candle has gap up opening and loses well into 50% of the body or the first candle for unsteady special name for some Morningstar patterns. So when second candle is a DOJ like this, then this Morningstar pattern is called abandoned baby Morningstar. Next 1 second candle is a gravestone, do G. Then this is called a gravestone, dodgy Morningstar. And if second candle is a dragonfly dodgy, then this pattern is called a dragon fire DOJ Morningstar. Now if the second candle is hammer, then it's called a hammer, Morningstar. And finally, if second candle is an inverted hammer, then it's called inverted hammer Morningstar. Again, friends nomenclature is irrelevant here. You just need to understand the basic price action. Now friends, you must be curious with the name Morningstar given to this pattern. Now, Morningstar is a term which indicates light after darkness. After the darkness of price for all there is light, which means prices are likely to rise in coming days. Friends or name of this pattern is inspired from the planet Mercury or her solar system. And you must be knowing this fact that Mercury is often known as a Morningstar. Let's now understand the psychology behind this pattern. As you know, the Morningstar pattern is formed in a downtrend in market. The market is dropping day by day. And first long red candle also implies that dominance of beers in the downtrend. Long red candle, the sentiments becomes more negative and gapped opening of second candle holder confirms that the bulls are in full control of the market. But the tiny candle body at the end of the day, it tells us that bulls have started swing their presence. On the other hand, years have started to lose their momentum. Finally, the gap up opening of the third candle indicates that the bulls have completely overtaken the beers and also manages to take the market up to 50 percent or more into the first long rectangles body. Once this happens, the reversal is set to be real and we can enter the long traits. Let's now see the application of a trading setup for Morningstar pattern. Prints. As you have learned, a trend must be down in case of warning star pattern. Then for Region of Interest, since this is a bullish reversal pattern, so they should ideally form around support levels. Now this can be a trend line or horizontal support level, or a moving average, or even Fibonacci levels. Now for RSI, the RSA should be in oversold region. Now after all these conformations, the entry level will be open off. Next scandal of the pattern that is fourth candle of the silicons. For conservative traders, you can read for this candle to go above the higher height of the Morningstar pattern candle bodies. Our last step is definitely the exit. Now friends, you can take your target at previous resistance or previous swing high. If previous resistance or swing high is much higher and you don't expect that to cross, then you can even exit at 50% of that level. Many traders even use one is to do risk to reward ratio. Let's understand the set-up with the help of a practical example from the stock Britannia industries. Friends notice the trend is down here. This is followed by the formation of a Morningstar candle. Just observe the first scandal of this pattern as shown in the yellow box, is our red long candle. The second candle is at DOJ type candle and has a small gap down opening. Finally, the third candle of the pattern is a green candle with gap opening from previous candle and closes 50 percent into the body of the first red candle. Does this is a valid Morningstar candle. Let's check if this is formed at a region of interests, friends, this is the same zoomed out chart and our Morningstar pattern is around here. Just notice this is formed at a major previous support level. Does point to of our setup holds true here. Next we will check the RSI. Just notice the RSI is an oversold region. Finally, we are all set to take the entry into the trade at the opening of next candle to the pattern that is around this level. I will take the target at this wing high, which got hit around here. So you can see this was a profitable trade. Trends hold the example and Morningstar pattern is clear to you. If you have any doubt and you can message me. Let us now move on to the evening star pattern. For instance, this is a three candlestick bearish reversal pattern. So there must be a preceding operand before formation of an evening star pattern. The first candle, a pattern has a long green body, and the second candle opens with a gap of opening and other small green or red body. Finally, the third candle opens with a gap down and closes 50 percent into the first candles body. These are some of the Evening Star patterns that you may encounter on your charts. Please note I'm not repeating the special evening star times. The names are same as we learned in the morning star pattern. Now friends, you must be curious with the name evening star given to this pattern. Evening star is basically a term which indicates darkness after brightness. After the brightness of price rise, there is darkness, which means prices are likely to fall in coming days. Friends, the name of this pattern is inspired from the planet Venus in our solar system. And you must be knowing this fact that Venus is known as the evening star. Let's see the psychology behind evening star pattern trends. As you know, the evening star pattern is formed in an up trending market. The market is rising day by day. And first long green candle also implies the dominance of bulls in the operand. With long green candle, the sentiments become more positive. Gap up opening of the second day further confirms the bulls are in full control of the market. But the tiny candle body, it tells us that the beers have started showing the presence and the bulls have starting losing their momentum. Finally, the gap down, opening up the third day indicates that beer's have completely overtaken the walls and in fact, managed to take the market lower. That is up to 50 percent or more into the first green candles body. Once this happens, the reversal is said to be real and we can enter the short reads. Let's apply our reset or for evening star pattern. Now as you have learned, the trend must be up in case of Evening Star. Then for Region of Interest, since this is a bearish reversal pattern, so they should ideally form around resistance level. Now this can be a trend line or a horizontal distance level, or even a moving average. Now for RSI, the RSI should be in overboard levels. Now after all these conformations are entry level will be open up next candle to the pattern that is fourth candle other sequence. For conservative traders, you can wait for this candle to go below the lower low of the evening star pattern candle bodies. At last you can take your target at the US abort or previous swing low. If previous support or Swing Low is much lower than you can even exceeded 50 percent of that level. Let's use a practical example from the commodity crude oil. As you can see, the crude is an uptrend here, which is followed by the formation of a evening star pattern. And you will observe the first candle is a green red candle, which is followed by the formation of gap up red candle showing indecision. And finally third candle is along red candle with gap down, opening and closing below 50 percent body off first green candle. Does with respect to price action, this is a valid evening star pattern. Next, we will check if the pattern is forming at a region of interest. As you can see, this operand is strictly respecting this up for channel. Does we can take our entry at the breakout here. Before entering, we also check the RSI is very close to overboard region. Finally, we can take the entry at the breakout here with the target as this wing low. The target was achieved here that this was a good profitable trade. So friends hope both the patterns that is Morningstar and evening star are clear to you. Both these are very powerful tree candlestick patterns and often reward readers with lots of profitable trades. 18. Three White Soldiers and Three Black Crow Patterns: Hello friends, welcome back to a new lecture. In this lecture, we will discuss the second set of three candlestick patterns status three white soldiers and 3 will across. As I've said earlier in the last lecture, that here these patterns are discussed only for informational purposes. And I don't use these in trading, nor I would recommend you to take trades build on these patterns due to the simple reason that is high risk and low reward linked to these buttons and also late entry into the reversal. But still you can take the trades based on these patterns only if the setup aspart price action is looking really rewarding. Let's first discuss three by soldiers pattern. Friends, three rights holders is a very visual pattern and can even be found even by New traders on the charts. In this pattern, there are three conjugative green candles with long or above average bodies. On three consecutive days. The candles in a perfect three white soldiers should have long bodies which ought or non existent upper or lower Wix. But if these candles are bullish, Margo x2, then it's much better. Now let's see the construction of this pattern. Now the first candle is a green candle in a downtrend. Then second candle is also a green candle with the opening price within the previous candles body and the closing price above the closer previous candle. Finally, third candle is also a green candle with the opening price within the previous candles body and closing price above the close of previous candle. Now for instance, psychology when formation of three rights holder, his dad, in this pattern, each candle opens within the body of the previous candlestick, which resembles a potential fall. However, each candle ends up with a higher close. So after three such instances, the beers are assumed to be dead. So in this construction occurs, then it's assumed that the trend is reversed. And as a trader, we can change our collisions from short to long. Now the trading setup is similar as we followed all throughout this course. Let's use a practical example of three white soldiers and understand the setup. This is the chart of Nestle and as you can see, the stalk and then downtrend here. This is followed by formation of three rights holders as shown in this yellow box. Notice the first candle is a green candle with above average body as compared to previous candles. Second candle opens within the body offers when candle and close higher than the first candle body. Finally, third candle opens within the second candle body and loses above the second candles body. Does. This is a valid three white soldiers pattern. Let's now check if this pattern is formed at some region of interest. This is a zoomed out chart and here is our pattern. As you can see, this level is acting as a support here. And previously also this level has acted as a major region of interest. Notice how this level is acting as a support at all these places. Next we will see the RSI. Here. Please note this important point that after complete pattern. And that is after three candles, you will never see RSI in oversold region. So as a reference, just check where the RSI was after the first candle. Here you can see the RSI just as the oversold region. Finally, we will take and read opening of fourth candle that is here. With stop-loss around these levels. For illustrators can even place a stop loss after first green candle. But all of this depends upon your risk-taking ability. At last, our aggressive target will be this region of congestion. But as you can see, this was missed comprehensively. But those with conservative targets of around 50 percent, then the target would have hit around here. Finally, friends. Here comes the problem with this pattern. As I said earlier, the risk data is difference between entry and the stop loss is very high in this pattern. Actually we are entering bit late in this pattern. Though this pattern really gives false reversal signals. But for trading purposes the profits are not satisfactory as compared to the risk. Even for conservative graders, you can notice that reward was not as profitable as compared to the disk. So this is a major reason I tried to avoid trading this pattern. Let's move on to the other part. That is three black crows pattern. S3 black holes is also a very visual pattern and can be easily found by novice traders on the charts. In this pattern, there are three consecutive red candles with longer above average bodies on three consecutive trading this, the candles in a perfect tree black roles should have long. What do you use with short or non-existent upper or lower weeks. But if these candles are bearish Margo x2, then it's much better. Now, let's see the construction of this pattern. So the first candle is a red candle in an uptrend. Then second candle is also a red candle with opening price within the previous candles body and closing prices below the previous candles closing price. Finally, third candle is also a red candle with opening price within the previous candles body and closing prices below the previous candles closing price. So friends are perfect. Three black holes pattern will look like this. But as said in trading, nothing is perfect as shown here. So we can also accept some modifications as per price action on the chart and other conferences. Now find the psychology behind formation of three black closes that in this pattern, each candle opens within the body of the candlestick, which resembles potential rise. However, each candle ends up with a lower close. So after three such instances, the bulls are assumed to be dead. There is a confirmed the richness in the market. So when this construction occurs, then it's assumed that trend is reversed. And as a trader, we can change our positions from long to short. Finally, the trading setup is same as you followed all throughout this course. This is a chart of US stock, Tesla. As you can see, the stock is an uptrend here, which is followed by formation of three black rose pattern. As you can see by the formation of three back-to-back read candles, one below the other. Let's take of this pattern is formed at a region of interest. As you can see, this pattern is formed at a medium resistance level. Does the probability of reversal is huge here? Then we will see the RSI, which is very close to the overboard level. Finally, we will take the entry at around this level, that is after third red candle. The target will be this week low, which got hit around this level. But friends here also, you will notice the same problem though our target was heard, but still notice that risk to reward ratio, the risk is much larger as compared to our reward. We are taking entry into the trade. We're down almost in the middle of the trend. But still the profits were more for traders with trailing stop loss. So for us, even though this pattern provides actual turning points or the market, but still with respect to w2 reward, this pattern gives lesser profits. I hope this pattern is clear to you. So with this, I wind up this lecture. See you again in the next lecture. 19. How to Search Candlestick Patterns in the Jungle: Hello friends, welcome to this new lecture. Well friends the $1 million question. After learning all these candlestick patterns and going through any candlestick courses, how can a search or find these batons out of ten, hundreds of stocks or so many currency pairs. I don't have time nor patients to search each and every chart available. When firms, the query is genuine and, and frankly it's not even practical to see thousands of charts. Add max, you can analyze 50, 60 charts and data ones are weekends only. Now if it is a beauty of three strategies that, that it helps you in dealing with this important question also. So what you need to do is start from step 3, that is RSI. Notice that the set of we learn is a reversal setup. And often the stocks or currency pairs were in over water, oversold region or just touching these regions. So the starting point of the search will be to make two lists. In list 1, choose talk. So currency pairs close to over what region. I generally choose RSI 65 to a 100 for filtering. Now we are choosing 65 intentionally because we want only those stocks which are coming closer to the overboard levels. We need these talks also in our redox. Second list is stops or currency pairs close to oversold region. For this, I generally choose RSI 0, 235. Now here also we are choosing 35 intentionally because we want those talks or currency pairs also which are coming closer to oversold level. We need these talks also for analysis. So friends, once you apply this filter, you will be left out with very less dogs or currency pairs which are easy to analyze. But friends, this list will also contain penny stocks which are easily manipulated. So next we will filter out such talks as well. Now different countries have their definition of penny stocks. So you can filter out these stocks as well as for which price levels talks are considered penny in your market. These two steps are in fact very important and helps you in filtering or stocks which are not useful for trading. As part of this setup. You can use to free tools available for filtering for stocks. You can use investing.com slash stock hyphen screener. And four for x, you can use trading view.com slash forex hyphen scanner. For instance, beauty of investing.com tool is that it works for any country. You just need to select the country in which you are reading from this drop-down menu. Once elected, you need to select the stock exchange of that specific country. And here you go, all the stocks will be listed. As you can see in this example of NSE around 1865, stocks are listed. Next, you need to move on to the Add criteria section, where you can add these two filters. First add RSI by clicking this technical indicators. And from here select RSI. Once I added, you will see RSI added in this edit criteria window. For selecting stocks around or sold region. Just enter the values in these two boxes. I will have 0 here and 35 here. Once you hit this, you will notice that the stock list is reduced from one and 65 who just 157. Next, remove the penny stocks also. For this, go to the price tab here and click last price. And then enter the price from where you want the stocks to be listed. I am adding contain minimum here. This will filter out the stocks with tries 0 to 19 rupees. Once you hit this, you will notice that the number of stocks filtered are reduced from 157 to just 77. So friends, as you can see, the list of stocks dropped substantially from whooping one at 65 to just 77. Now this is the initial list of stocks which must be in your Aadhaar. Next was searching candlestick pattern. Investing.com has made the things simpler for you. You can just click this candlestick pattern stamp here. And once you do this, all the stocks with candlestick patterns in all the time frames will be listed here. Not only this, all the candlestick patterns that have been formed already in last one or two days are also listed down here. So you can check charts of all these talks and then analyze if the criteria of our tree setup are followed or not. But friends, please note these patterns are detected by software is only. So even if the pattern is formed in a sideways market, then also stock will be listed here. So it's important you to check whether the stock is trending or not and also check the region of interest as well. These are two very important aspects that no software can calculate. If you are a conservative trader, you can also add volume filter here and select only those stocks which have above average volume. Again, this will reduce more stocks from the list. Finally, you will be left with less than half the stocks which are in your checklist on radar. Now friends, you can do the same exercise for generating L2 of the stocks which are close to overboard region. Finally, you will have approximately 50 or stocks that are easier to analyze from day to day basis. Now France, using the help of software generated candlestick pattern is for those who are short on time or less patient. But ideally it's important to Search good trading opportunities manually. The first two filters have already removed a lot of irrelevant stocks. After this step, I adopt a manual approach and remove the stocks that are not trending and not form closer to any region of interest. Please note this exercise performed once or twice in a week will remove half of the stocks and you are left out with trading stocks close to some region of interest and inner around or what or oversold levels. These are the stores which have high probability of reversals. So if you manually look at these filtered stocks and analyze a price action, then you can get good trading setups. Let us manually analyze these first few stocks. Now this is the chart of ITC limited. And please note this talk is trending downwards and approaching this major support level, the RSI is also approaching the oversold region. Thus, this cop must be in our checklist. The probability of this dog going more downwards towards the support level is very high. And if there is formation of a bullish reversal pattern at the support level, then we must enter into the long position. Next talk is as ba leaves do the stock is currently in a congestion with RSI approaching oversold region. When you see the previous price action, you will notice the stock is currently at a support level. But asset we should not read candlestick patterns in sideways market. So ideally we should wait for this stock to move more downwards and oppose this second support level. If this is followed by formation of a bullish reversal pattern, then we can definitely take the non collision in this talk. Lastly, let's see the third stock that is IOC. As you can see, the stock is currently in downtrend and already approaching the support level. Thus, if this is followed by formation of a bullish reversal pattern, then we must make entry into the stock. Likewise, you can analyze ie stock of this list and then remove the stocks that are not as per our trading setup. So friends just keep the stocks in your radar and wait for candlestick patterns to occur. If you observe some candlestick patterns have already occurred, then you can even plan your entry. So friends hope the process of candlestick pattern search as per our tree setup is clear to you. I have explained both the ways. That is first where we get system-generated list of stocks in which candlestick patterns have occurred. And second on manual approach, where we scan the stocks for candlestick pattern formation.