The Ultimate Candlestick Day Trading Guide (Make Money FAST)

Candlesticks is basically like oxygen for us profitable day traders. It's extremely important that we're able to read them and understand them because they tell us exactly what price is going to do, if price is going to go up, if price is going to go down. And realistically, it's all just a language. So in this video, I'm going to break down that language for you guys, tell you guys everything you need to know about candlesticks, how you can use them, what candlesticks are telling you what. I'm basically going to decode every single candlestick that you can take this, study it, implement it tomorrow, and actually start accurately predicting what price will do on any single chart. So what are candlesticks and what the heck do they mean? In simple terms, candlesticks are literally just showing us exactly what price has done in a certain amount of time. You can go on different time frames, let's say on a 1-minute time frame, and that'll show you everything that price has done, everywhere price has been throughout 1 minute. It'll show you on a 5-minute, 10-minute, 15, hourly, whatever it is you can choose it. But literally all the candlestick is doing is showing you where price has went throughout a certain period of time. And we're going to hop into the charts. I'm going to break this down for you extremely simply because I remember when I was first starting off, everybody made it way too complicated, way overly complicated, I'm not gonna lie. So I'm going to simplify it so that literally a 4-year-old would be able to understand it. Let's hop into the charts. So this is the website that basically every single trader uses. It's called TradingView. Now you've probably seen these things before, and we'll go over it on actual live examples right here. But first, let's break down these candlesticks so you understand exactly what they mean, what they do, why they're here, right? So I told you guys you could be on any time frame, and all time frame means is that— let's say right now on the, the daily time frame— so every single one of these candlesticks is one day. So let's say this was November 1st, this is November 2nd, this is November 3rd. That's all that means. Now, if this was— if we were on like the 5-minute time frame, this could have been 12:30, 12:35, 12:40. That's simply it. And all the candlesticks are doing is telling you exactly where price is or what price was doing during that time. Now, for red candlesticks, the top of it is where price started at. So let's go with our example of let's say this is a 10-minute candlestick and this candlestick was at 10:30, right? At 10:30, price was right here. Whatever, if we were at— if we were on a Bitcoin chart, if we were on a Tesla chart, whatever, price started right here at 10:30. And on, like I said, on a red candlestick, the top is where price started, the bottom is where price ended at. So at the end of— well, when 10:40 hits, because this is a 10-minute candlestick, price was right down here. Now these wicks that you see, these lines that you see, price was up here at one point during 10:30 At one point between 10:30 and 10:40, price was down here. At one point between 10:30 and 10:40, the wicks just tell you where price has been throughout that time. Like I said, the body on a red candlestick, the top is where it actually started, the bottom is where it ended. On a green candlestick, it's vice versa. The same thing with the wicks. Price has been all throughout this area throughout this 10-minute timeframe or period. It's been all up here throughout this 10-minute time period.. But on the body of green candlesticks, the bottom is where price started at. So if this is the 10:30 candlestick, this is the 10:40 candlestick. So the bottom right here at 10:40, this is where price started at. And since it's a green candlestick, the top is where price ended at. So at the end of this 10:40 candlestick, so technically at 10:50, this is where price stopped at. And as you see, the next candlestick started where price stopped at. As you see, it's completely aligned, right? Price stopped here on a green candlestick. That's where it ended at, at 10:40. And 10:50, it started right here. That's literally all it means. And like I said, the wicks, or these little lines at the top and the bottom, that's just where price has been throughout that time between the period of those 10 minutes if we're on a 10-minute time frame. Now, if we were on a 5-minute time frame, this is what's happened during the period of 5 minutes. So it's very simple. That's how you understand it. Now there are a bunch of different shapes and sizes. If we zoom out, as you see, there are a bunch of different shapes and sizes, but all these basically tell you exactly what's going to happen next. And what I mean by that is a lot of times we can look at the wicks, we can look at the sizes of the body, the size of the wicks, the colors of the candles, and it'll actually tell us what the next candlestick will do, whether the candlestick will go up or whether the candlestick will come down. Now this is not 100% accurate, but if we're able to look at these patterns and see specific candlesticks we can really have a high percentage that the next candlestick will either go up again or the next candlestick will go down. And there are a couple different candlesticks that tell us that, and I'm going to go through each and every one of them. So when you see them happen on your charts, you're able to give an accurate assumption that the next candlestick will either go up or the next candlestick will either go down. And the reason why that's so important is because if you're able to master that, you can see, okay, we saw this candlestick, so realistically the next candlestick is probably going to go up. So we could buy right here and make money on the next candlestick that goes up. Or vice versa, we can see, okay, we saw this candlestick, and because of this specific pattern and because this candlestick looks this way, we can probably assume that the next candlestick is going to go down. So we can hop in a sell and make money as price goes to the downside. So that's the reason I'm saying realistically, being able to learn candlesticks and see the patterns and understand the language and what these candlesticks are trying to tell you is extremely valuable because you can easily make money just by understanding, studying, and being able to spot these patterns and making actions when you see these specific candlesticks pop up. So let's hop into some examples of the candlesticks and exactly what they mean and what will happen next when you see these candlesticks. Okay, so there are 6 candlestick patterns that give you a great assumption for what's going to happen next. I'm going to dive through them. They're actually my favorite patterns to look for. They're the exact patterns that I use to hop into every single one of my trades. So let's hop into them. So first of all, we have the doji candlestick, we have a shooting star, we have a hammer, we have an inverse hammer, we have an engulfing candlestick, we have an inverse shooting star. I have all these and I have a bunch of examples of them, so I'm going to go through them and I'm going to tell you exactly what each and every one of them means. So let's start with a doji candle, which is very, very, very easy to see. Spot and understand. All a doji candlestick is, is when you have a small body with wicks on the top and the bottom, preferably equal size wicks. Remember, wicks are those lines on the top of the bottom. So a doji, like I said, is when we have a small body like this with wicks on the top and on the bottom, preferably equal size. They don't have to be completely equal, but close in size to the top and the bottom. And what this candlestick means is that there's is indecisiveness. And what that means for us is that when we see a doji candlestick after a huge move in one specific direction, that usually means after the doji candlestick, it's going to go in the opposite direction. We have a bunch of examples of this. So we see price was coming down, we have all these red candlesticks, price was just dropping, dropping, dropping, dropping, dropping. Then we got a doji candlestick right here, we got that indecision candlestick. And what happened after we saw doji candlestick? Price went up, up, up, up, up. So it completely reversed. A same scenario right here. We had a huge drop down, then we had a doji candlestick. Then what happened? Price started going back up. We have a bunch of different examples of these. I have these two that I put out. We have this one right here as well. And honestly, if you go on a chart and just look for these doji candlesticks and get used to spying these doji candlesticks, this is one of the easiest candlesticks to spot and trade because, you know, after we have huge moves in any direction— it could be going up, going down— as soon as we see that doji candlestick, that indecisive candlestick, we know that trend is probably about to end and it's about to go in the opposite direction. So we see price was going down, down, down. We got our doji candlestick right here and price started going up. Right here again, down. We got our doji candlestick, price started going up. Very simple, smooth, and extremely valuable candlestick pattern to pay attention to and master. The next candlestick pattern that I want to go over is called a shooting star, and we'll go over the inverse version of that as well. But all a shooting star is, is when we have a long wick on the bottom, then we have our body at the top and a small or no wick at the top. So like I said, long wick on the bottom, just like this. And then we have our body, which preferably is like a smaller size body, something like this. And preferably no wick at the top, but it can have a small wick just like this. And basically what this means— remember I told you guys the wicks is where price has been throughout that candlestick, and the close— the body is where price opened at and closed at. So when we see wicks, long wicks on the bottom side of it, that means— and I like to put it this way, just makes it easy to understand— is that means price could have tried to come, let's say, down here, right? But it got scared, right? It got scared of this area and jumped back up here, and it ended up closing up here, which means that price looked and tried to drop down, but it actually ended up going up. And that usually means that since price got scared of the area down here, that once we have a shooting star candlestick like this, price realistically is probably going to go up after that. And as you see right here, we were going down we got our shooting star candlestick and price started going up. I have another example of this. I have multiple different examples of this, but we can go over our inverse version of it, which is basically just the opposite, right? It's when we have a long wick at the top and our body is at the bottom of it. So we have a small body at the bottom of it and preferably no wick at the bottom, but it can be a small wick at the bottom. And that's what we call an inverse shooting star. So it's just the opposite of a shooting star. Like I said, usually when we see an inverse shooting star, that means price is going to go down. As you see, after we got our inverse shooting star, price started going down. After we got our regular shooting star, price started going up. And that's because when we see those long wicks at the top or the bottom, wherever you see those long wicks at and small wicks on the opposite end, it's most likely going to go in the direction with the smaller wick or the smaller body. And shooting stars, like I said, are one of my favorite candlestick patterns to use. They're very, very accurate in predicting if price is going to either respect a zone— let's say we have a support or resistance zone, it's telling us that it's either going to respect this zone and turn around and go the other way, or if it's not. And a lot of times when I see these shooting star candlestick patterns going off of or going into my support or resistance zones, I know I can feel confident hopping in the opposite direction, going in the direction of those— the little wick or the little body. Now, the next one I'm going to go over is called a hammer candlestick. Now, this is very, very, very similar to a shooting star or an inverse shooting star. And basically all it is, like I said, we have a couple examples right here. This is a hammer candlestick. We have a long wick on the bottom and a very, very, very small body to the top., and it can have a wick at the top. But like I said, we prefer it has a very small wick or a, a no wick at all. So like I said, it's very, very similar to a shooting star candlestick. The main difference is that the body is a lot smaller and usually the wick is there, or I mean, it's non-existent or it's a lot smaller. So same thing when it comes to a hammer, because we have a long wick to the downside, we know price is scared of this downside, going down. It's scared of going down. So that means the next candlestick is probably going to go up. As we see, after we had our hammer candlestick, price went up. Now this is a great example because we had two of our indecisive or reversal candlesticks. We had our hammer candlestick right here, then right after the hammer candlestick we had a doji, which if you guys remember, that's an uncertainty candlestick. So we had two confluences is what we call it, where we had a hammer candlestick telling us price was about to go up, then we had a doji candlestick telling us that there was uncertainty in price, so price probably was going to reverse. And as we saw, after we had both of these, price bought up and we could have made a lot of money on the buys to the upside. Now here is an example of an inverse hammer. Like I said, it's just the complete opposite, it's the flip side of a hammer. Instead of our us having our long wicks on the bottom. We have our long wicks at the top with a small body to the bottom and a small wick to the bottom, preferably no wick, but it can be a small wick just like this. And like I said, this just shows us that price is going to continue down. So we saw this candlestick and price continued down after we got our inverse hammer. Like I said, these are very similar to shooting stars. I would definitely suggest you guys Go on your charts, practice spotting these, mark them off, and see exactly what happened over the next 1, 2, or 3 candlesticks after them. I guarantee you, majority of the time, it went in the opposite direction. It went in the direction of the small wick or the small body. Now let's go over one of my favorite— I feel like I've said this for every single candlestick, but let's go over one of my favorite candlestick patterns that I like to see. And I call these— well, they're called engulfing candlesticks. And all they mean is that the candlestick basically ate the other candlestick. The size of the candlestick basically was bigger than the candlestick before it in the opposite direction, and that usually means that price is going to continue in the direction of that engulfing candlestick. A great example of that is this candlestick right here. The candlestick before it, as you see, it's this size, right? It's pretty small. And then our next candlestick basically ate that entire candlestick. It's the opposite— it went in the opposite direction. This candlestick was going up, our engulfing candlestick was going down, and the size of this candlestick was massive. It was much bigger than the candlestick before it. We have a bunch of different examples of this that you can see, right? So we have this candlestick right here where price was smaller, but then our next candlestick was in the opposite direction and price went down. And as you see, the candlestick after this one, price went down. The candlestick after this engulfing, price continued to go down. Same thing that we saw right here where we had a small doji. Most of the time I like to see a bigger candlestick before I classify something as an engulfing because it's not hard to engulf such a small candlestick like this one. But we had a candlestick, we had an engulfing candlestick, and price continued to go down. We can find literally a bunch of these examples here. Price— we had a a candlestick that was going down, then we had an engulfing candlestick. This candlestick is bigger than this one, and once this happened, price went up. Like I said, that's one of my favorite candlestick patterns to help me see exactly where price will go on the next candlestick, because most of the time, like I said, when we see these— this engulfing pattern, price is going to continue in the direction of that engulfing pattern, because these engulfing candlesticks are showing us that there's a lot of volume, there's a lot of buyers or sellers in the market that want to push price either down or price up very strongly, and we want to be able to ride that wave. We want to be able to capitalize on that and trade in the direction of these engulfing candlesticks. Now, I do want to point out, every single one of these different candlestick patterns that we went over— the doji, the shooting star, the hammer, the inverse hammer, the inverse shooting star, engulfing candlestick— these can be done on stocks, crypto, Forex, futures, It can be done on any chart, it can be done on any time frame. So no matter if you're on the daily time frame, the 1-minute time frame, the 15-second time frame, the 10-minute time frame, no matter what time frame, no matter what pair you're trying to trade, it applies the same. When you see these patterns, it means the exact same thing. So it's absolutely amazing to have these valuable assets and have these valuable patterns memorized so that when you see them on the charts, you know exactly what your moves can be. Now we just went over regular candlesticks. Now I use regular candlesticks every once in a while, but if you guys have followed me for a while— if you're new here, I have something amazing to show you guys. It's a different type of candlestick called Heikin-Ashi candlesticks. These are the candlesticks that are like my bread and butter. These are what I base all of my strategies based off of. This is how I've been able to make way more money in my trading the past couple years because these candlesticks actually tell a different story and they help you make more money, be more confident in your trades, be more patient, hold your trades a lot longer, which in turn makes you a lot more money. And honestly, they're just much easier candlesticks to trade. So I'm going to go over a couple patterns with Heikin-Ashi. I'm going to break down exactly what Heikin-Ashi candlesticks mean because they're a little bit different than regular candlesticks. Sticks. But I want to educate you guys on Heiken Ashi candlesticks because, like I said, they're the absolute best thing that I've ever found on these charts. They've helped me out drastically, and like I said, they are what I base majority of my strategies off of and what I use for all of my entries. Now, you guys can get the exact strategies that I use step by step, detailed, broken down systematically, so that even as a completely new trader you're able to understand and start using these strategies to make money. These are the same strategies that I use to make $10,000, $20,000, sometimes even more thousand dollars every single day, day trading. And you guys can get that system, the exact system that I use. Just hit the link for inside the description down below. You'll get walked through exactly how to use these strategies, no matter if you're a beginner or advanced. You'll be able to implement these strategies literally today, and you get a bunch of examples. So you see good versions of the strategies and the setups versus bad versions of them so you can avoid the bad versions and double down on the good ones. So if that sounds interesting to you, hit the link inside description down below. Now let's hop into the charts so you can master these Heikin-Ashi candlesticks. So first of all, how the heck do we even turn on Heikin-Ashi candlesticks? So these are regular candlesticks on TradingView. You'll hit this dropdown right here next to the candles, and you'll just click on this thing called Heikin-Ashi. Now I put a star next to it because I just favorited it, so so that it's easier for me to turn on. But you'll click it and you'll see the candlesticks change. And like I said, these are a little bit different than regular candlesticks. Actually, they're a lot different. But as you see, they look a lot smoother, a lot cleaner, a lot more beginner-friendly actually. And they're just, in my personal opinion, much easier to use when you're trading. But let's break down what these candlesticks mean and what each and every one of them are telling you. So the difference between these and regular candlesticks is that the bottom of where the candlestick is on bullish candlesticks or candlesticks that are going up, that's not where price started at. Where regular candlesticks on bullish candlesticks, the bottom is where price started and the top of the body is where price ended. That's not the case when it comes to Heikin-Ashi. Heikin-Ashi candlesticks, the bottom— and when candlesticks that are going up, the bottom of the candlestick always starts in the middle of the candlestick before it. So as you see, this candlestick started in the middle of this one. This candlestick started in the middle of this one. This candlestick started in the middle of this one. So it's extremely important that you notice that. And then the top of the candlestick, the side that has the wick on it, um, this is the average of where price has been throughout the entire candlestick. So if you remember, on regular candlestick, we have our bodies, we have our wicks, and the wicks are telling you where price has been throughout it. The body is telling you where price opened at and where price closed at. With Heikin-Ashi, we're not seeing where price opened at or where price closed at. The body is the average of where price has been throughout the candlestick. Now, the wicks work the exact same. So when you see wicks on the top or wicks on the bottom, that's where price has been throughout the entire candlestick. But like I said, the body is completely different. The body of a bullish candlestick, or candlestick that's going up, the top of it, that's what— that's the average where price has been throughout the entire candlestick.. Now, if we're looking at a bearish candlestick or candlesticks that are going down, the bottom of the body is the average where price has been throughout the entire candlestick. Same thing when it goes to the wicks. The wicks is where price has been throughout the entire candlestick. So you'll see all these are different shapes and sizes, but like I said, that's how you break it down simply. Just remember that the body of the candlesticks is the average of where price has been throughout the entire candlestick, and that's actually very, very important and very useful in a lot of the different strategies that I talk about inside of my strategies course. But let's hop into here and show you guys some examples of specific chart patterns or candlestick patterns that I look for and exactly what they tell me that's going to happen next. So starting with a simple one because it's literally exactly what we saw before on regular candlestick, it's the same name, but we'll talk about doji candlesticks. Now they work the same and they look the exact same on Heikin-Ashi candlesticks, except these doji candlesticks I trust a lot more. They look the same, like I said. A great example of it is right here where we have a small body with a wick on the top and a wick on the bottom, preferably the same size wick on the top or the bottom. This isn't a perfect example of it, but the candlestick after it is a perfect example of it where we have a small body with wicks on the top and wicks at the bottom. And as we see Price was going down, we got our doji candlestick, and price started going up. Very, very easy to see. We can see it multiple times. Price was going down, we got a doji candlestick right here, small body, wicks on the top, wicks on the bottom, and as you see, price started going up. Then right here, price is going up, we got our doji candlestick, small body, wick on the top and the bottom, price started going down. Doji candlestick again right here, wick on the top and the bottom, price started going up. Doji candlestick again, price started going down. That's why I'm saying on Heikin-Ashi it's just a lot easier to see. Price was going down, wick on the top and the bottom, a small body, price started going up. Doji candlesticks with Heikin-Ashi is like a cheat code to printing money inside of the freaking markets. If you can be patient enough and wait for these doji candlesticks to pop up on Heikin-Ashi, you can make yourself a lot of money. And if you are using other strategies like support or resistance Let's say you had a support zone right down here and you see a doji candlestick off of your support zone. That is an easy confirmation to enter into the trade because price is probably rejecting off of there. So that's one of my main candlesticks that I like to see when it comes to Heikin-Ashi that tells me that price is going to end up reversing in the opposite direction of where it has been going. Now, one more candlestick pattern that I personally love on Heikin-Ashi candlesticks— and I use this a lot inside of my super scalping strategy, which like I said is inside of my strategies course. Literally, when you see a candlestick with a small— with no wick on the bottom but a wick on the top, and it's a big candlestick, literally just like this. After we saw a— after we saw price going in a specific direction, let's say we see price going down here, but then we see a candlestick with no wick on the bottom. Wick on the top and the candlestick is really, really big compared to the candlesticks before it, that's an easy indication that price is going to continue to go up. Perfect example is literally right here. We have a bunch of these examples where we see prices going down, then we got not just our doji candlesticks, but we also got a candlestick with no wick on the bottom, but it's huge in comparison to the candlesticks before it. We got this candlestick, and as we see price continued to go up. Now this works the same way on when we're looking for sells, or we're looking for price to go down. We saw price going up here, then we got a big candlestick with no wick on the top, because remember, now we're looking for sells, we're looking for price to go down. So we have no wick on the top but wicks on the bottom, and it's big in comparison to the candlesticks before it, and price continued to go down. You can see examples of these all around. Price was going up, we got our— not just our doji candlestick, but we see our flat top candlestick right here with no wick at the top, big in comparison to the candlesticks before it. And after we got this candlestick, price continued to drop down. So if you can just master these two candlestick patterns, our doji candlesticks and our Heikin-Ashi candlesticks with no wick on the bottom or no wicks on the top, depending if you're looking for buyers or sellers, sells. If you can master those two patterns and start implementing them into your trading on Heikin-Ashi, you can start printing money. Like I said, this works on any pair— crypto, stocks, options, futures, Forex. It works on any time frame— 1 minute, 5 minute, 10 minute, hourly, daily, weekly— no matter what it is. If you can master these patterns, I guarantee you, you can start making money inside of the markets just by using these candlestick patterns. So I highly suggest you study this video. If you have to, watch it back so that you are able to memorize these patterns. Memorize dojis, engulfing, shooting stars, hammers. Study this video, watch it back if you need to, because mastering these patterns could drastically change your life. Now, just being honest with you, this is a huge part of trading, but it's not all that there is. There's so much more. There's so many different strategies that can help you make way more money, may help you not lose as much money, and just help you become a better trader overall. And that's why I decided to make this video right here. This video is an entire free course on YouTube. It's over 2.5 hours that'll take you and teach you everything you need to know about trading— websites, brokers, platforms, indicators, everything you need to know. So if you're really trying to take trading serious, I suggest you watch this video right here. I'll see you there.