Introduction to Forex
Forex Fundamentals
Characteristics of Candlesticks
Support and Resistance / Chart Patterns
Technical Indicators
Sniper Strategies
Characteristics of Candlesticks
A Characteristics of Candlesticks Course is focused on teaching traders how to interpret candlestick chart patterns, a vital tool in technical analysis.
What I will learn?
- Introduction To Candlesticks
- Bullish Engulfing Candlestick Pattern
- Bearish Engulfing Candlestick Pattern
- Hammer Candlestick Pattern
- Shooting Star Candlestick Pattern
- Bullish & Bearish Harami Candlestick Patterns
- Bullish Pinbar Candlestick Pattern
- Bearish Pinbar Candlestick Pattern
- Bullish Spinning Top Candlestick
- Bearish Spinning Top Candlestick
- Inverted Hammer Candlestick Pattern
- Hanging Man Candlestick Pattern
- Doji, Dragonfly Doji, Gravestone Doji Candlestick
- Piercing Line Candlestick Pattern
- Dark Cloud Cover Candlestick Pattern
- Morning And Evening Star Candlestick Pattern
- 3 White Soldiers Candlestick Pattern
- 3 Black Crows Candlestick Pattern
Content/Playlist (19)
- Introduction To Candlesticks (00:09:45)
Description:
A candlestick shows the open, high, low, and close price for the particular time frame. A Candlestick has a wide part which is called the body. This body represents the price range between the open and close of that timeframe. A candlestick can be represented on multiple different time frames which consists of monthly, weekly, daily, hourly, 30 minute, 15 minute, 5 minute, and 1 minute timeframes. - Bullish Engulfing Candlestick Pattern (00:08:35)
Description:
A Bullish Engulfing Pattern is a technical chart pattern that signals higher prices to come, and is a large bodied green candle that completely ‘engulfs’ the full range of the preceding red bearish candle. The larger the body, the more extreme the reversal becomes. The body should completely engulf the preceding red candle body, after a downtrend of three or more red bearish candles, thus establishing a reversal pattern, and a new bullish uptrend where buyers outweigh the sellers. The bullish candle opens at, or lower than the previous bearish candle’s close. The length of the bullish candle ‘engulfs’ the previous red candle, and closes above the previous bearish candle’s open. The volume should increase to at least double the average when bullish engulfing candles form to be most effective. Bullish Engulfing Candlestick Pattern A) A bearish downtrend was established on a higher timeframe B) The price reached a previous support level, where buying volume increased C) A Bullish Engulfing candlestick completely ‘engulfed’ the previous red bearish candlestick D) A new bullish uptrend was established where price action made higher highs and higher lows - Bearish Engulfing Candlestick Pattern (00:07:32)
Description:
A Bearish Engulfing Pattern is a technical chart pattern that signals lower prices to come. It is a large bodied red candle that completely ‘engulfs’ the full range of the preceding green bullish candle. The larger the body, the more extreme the reversal becomes. The body should completely engulf the preceding green candle body, after an uptrend of three or more green bullish candles, thus establishing a reversal pattern, and a new bearish downtrend where sellersoutweigh the buyers. The bearish candle opens at, or above the previous bullish candle’s close. The length of the bearish candle ‘engulfs’ the previous green candle, and closes below the previous bullish candle’s open. The volume should increase to at least double the average when bearish engulfing candles form to be most effective. A) A support level was established where buying volume increased B) A bullish uptrend was established as price action made higher highs and higher lows C) Price action finally reached a level of previous resistance where selling pressure increased D) A Bearish Engulfing candlestick completely ‘engulfed’ the previous bullish green bullish candlestick E) A bearish downtrend was established where price action made lower highs and lower lows F) A minor bullish pullback formed at the support level, where sellers entered and continued to sell and eventually broke the support level - Hammer Candlestick Pattern (00:08:47)
Description:
A Hammer is a bullish reversal candlestick pattern, made up of just one candle, and is one of the most widely used. The candle looks like a hammer, with a long lower wick and a short body at the top with little or no upper wick. A hammer is formed in a downtrend, which is a sign of a potential reversal in the market, where the sellers were in control, but the buyers were able to reverse that trend and push the stock price back up. Traders will wait for a confirmation bullish candle to open above the previous hammer candle before entering the trade, and confirm the buyers are in control.All downtrends will eventually find a previous support level, where buyers will come in and add buying pressure to establish an uptrend. This can be seen on all charts with a hammer candlestick, following a downtrend of three or more bearish candles. A) A bearish downtrend was established B) Price action eventually reached a level of support where buying volume increased C) A long lower wick was formed at the support level representing rejection, and buyers increasing the price higher D) A bullish body created the top of the Hammer candlestick with little to no upper wick, and a strong bullish close E) A new bullish uptrend was established where price action made higher highs and higher lows - Shooting Star Candlestick Pattern (00:06:19)
Description:
The Shooting Star is a bearish reversal candlestick indicating a peak or top. It is the exact inverse version of a hammer candle. The shooting star should form after at least three or more bullish green candles indicating a rising price and demand. This represents that the sellers are taking over the price action, and pushing the price down as sellers outweigh the buyers. This candle is establishing a downtrend until the next bullish reversal.Technical analysis is very important because it allows us to take profits, and not chase at the highs to potentially sell at a loss. FOMO (fear of missing out) traps novice traders with the excitement of the price increasing and not understanding the power of a shooting star, and its implications. This is where disciplined traders are rewarded because they understand the importance of these candles on charts. A) A bearish downtrend was established of 3 or more bearish candles B) Price action eventually reached a level of support where buying volume increased C) Price action eventually reached a previous resistance level where selling volume increased D) A long upper wick was formed at the resistance level representing rejection, and sellers pushing the price action lower E) A bearish body close below the support level confirmed the selling pressure F) A new bearish downtrend was established where price action made lower highs and lower lows - Bullish & Bearish Harami Candlestick Patterns (00:09:14)
Description:
Bullish Harami Candlestick: A Bullish Harami is a two candle pattern indicating that a bearish trend may be reversing. Many traders may look at a bullish harami as a good sign to enter a bullish position with the addition of a confirmation candle. In addition, the Bearish Harami is the exact opposite, signalling that a bullish uptrend may be reversing. However, these patterns are more neutral, but suggest a reversal may occur with added confirmation candles. In contrast, the bullish engulfing candle and the hammer are much more bullish in nature compared to the bullish harami. A) A bearish downtrend was established of 3 or more bearish candles B) Price action eventually reached a level of support where buying volume increased C) A bullish candle gapped up and opened inside the previous red bearish candle D) A bullish close inside the previous bearish candle created the Bullish Harami candlestick E) Bullish price action eventually broke through a previous resistance level F) A bullish uptrend was established as price action made higher highs and higher lows Bearish Harami Candlestick: A Bullish Harami is a two candle pattern indicating that a bearish trend may be reversing. Many traders may look at a bullish harami as a good sign to enter a bullish position with the addition of a confirmation candle. In addition, the Bearish Harami is the exact opposite, signalling that a bullish uptrend may be reversing. However, these patterns are more neutral, but suggest a reversal may occur with added confirmation candles. In contrast, the bullish engulfing candle and the hammer are much more bullish in nature compared to the bullish harami. A) Price action was in a zone of consolidation B) Price action was above the support level where buying volume increased C) Price action eventually broke through a previous resistance level and buying volume increased D) A bullish uptrend was established, where it reached another resistance level represented by upper wicks E) A bearish candle gapped down and opened inside the previous green bullish candle F) A bearish close inside the previous bullish candle created the Bearish Harami candlestick G) A bearish downtrend was established as price action made lower highs and lower lows - Bullish Pinbar Candlestick Pattern (00:05:23)
Description:
A pin bar pattern consists of one candle, which represents a sharp reversal and rejection of price. The pin bar reversal is defined by a long tail (shadow or wick). The area between the open and close of the pin bar is called its ‘real body’, and pin bars generally have small real bodies in comparison to their long tails. The tail of the pin bar shows the area of the price that was rejected, and the implication is that the price will continue to move opposite to the direction the tail points. Thus, a bearish pin bar signal is one that has a long upper wick, showing rejection of higher prices with the implication that price will fall in the near term. Finally, a bullish pin bar signal has a long lower tail, showing a rejection of lower prices with the implication that price will rise in the near term. A) Price action traded in an area of consolidation B) A bullish breakout formed but was erased by a bearish candle as sellers pushed price action back into consolidation (fake breakout) C) A bearish downtrend was established D) Price action eventually returned to a previous support level where buying volume increased E) A long lower rejection wick was formed at the support level where buying volume increased F) A bullish body close signalled buying momentum G) Price action opened above the previous resistance level and established bullish continuation in price action - Bearish Pinbar Candlestick Pattern (00:04:50)
Description:
A pin bar pattern consists of one candle, which represents a sharp reversal and rejection of price. The pin bar reversal is defined by a long tail (shadow or wick). The area between the open and close of the pin bar is called its ‘real body’, and pin bars generally have small real bodies in comparison to their long tails. The tail of the pin bar shows the area of the price that was rejected, and the implication is that the price will continue to move opposite to the direction the tail points. Thus, a bearish pin bar signal is one that has a long upper wick, showing rejection of higher prices with the implication that price will fall in the near term. Finally, a bullish pin bar signal has a long lower tail, showing a rejection of lower prices with the implication that price will rise in the near term. A) A bearish downtrend was established with 3 or more bearish candles B) Price action eventually reached a support level where buying volume increased C) Bullish price action broke through a previous resistance level D) Price action reached another resistance level where a long upper rejection wick was formed as sellers entered the market E) A bearish body close below the support line confirmed bearish momentum F) A bearish downtrend was established as price action made lower highs and lower lows - Bullish Spinning Top Candlestick (00:07:14)
Description:
Spinning top is a Japanese candlesticks pattern with a short body found in the middle of two long wicks. A spinning top illustrates a situation where neither the buyers nor the sellers have won for that time period, as the market has closed unchanged from where it opened, the market is indecisive on the trend. The upper and lower long shadows, however, tell us that both the buyers and sellers had the upper hand at some point in that timeframe, but closed neutral. A spinning top in a consolidation period, illustrates that price action is just trading sideways, and no real significance. However, when a spinning top forms after an uptrend or a downtrend, it can be a clue for a reversal in the near term. Spinning top candlesticks should not be mistaken with pin bar candlesticks as previously discussed. A) A bearish downtrend was created with 3 or more bearish candlesticks B) Price action eventually reached a previous support level and buying volume increased C) A Bullish Spinning Top candlestick was formed with a long lower wick showing rejection as buyers increased the price, and closed with a green body D) Bullish momentum increased as more buyers entered the market and established a bullish uptrend - Bearish Spinning Top Candlestick (00:04:12)
Description:
Spinning top is a Japanese candlesticks pattern with a short body found in the middle of two long wicks. A spinning top illustrates a situation where neither the buyers nor the sellers have won for that time period, as the market has closed unchanged from where it opened, the market is indecisive on the trend. The upper and lower long shadows, however, tell us that both the buyers and sellers had the upper hand at some point in that timeframe, but closed neutral. A spinning top in a consolidation period, illustrates that price action is just trading sideways, and no real significance. However, when a spinning top forms after an uptrend or a downtrend, it can be a clue for a reversal in the near term. Spinning top candlesticks should not be mistaken with pin bar candlesticks as previously discussed. A) Price action consolidated and formed a support level B) A bullish uptrend was formed as buying volume increased C) Bullish momentum broke through a previous resistance level and created a new resistance D) A Bearish Spinning Top candlestick was formed with a long upper wick showing rejection and indecision in price action E) A bearish body close below a previous support line confirms the bearish momentum F) A bearish downtrend is established as price action makes lower highs and lower lows - Inverted Hammer Candlestick Pattern (00:07:14)
Description:
The Inverted Hammer is a type of candlestick pattern found after a downtrend, and is usually taken to be a trend reversal signal, but not as strong as a hammer candle. The inverted hammer looks like an upside down version of the hammer candlestick pattern. The inverted hammer candle is made up with a small lower body, and a long upper wick. The long upper wick of the candlestick pattern indicates that the buyers pushed the prices up, but encountered selling pressure which drove prices back down to close where they opened in that timeframe. This candle is a signal of a bullish reversal, but not as strong as a hammer candlestick.Additional bullish candles are required to confirm a buy signal. In addition, an inverted hammer candle can be green or red, and is still considered bullish. Use caution with an inverted hammer, but do not neglect them entirely. A) A bearish downtrend was established with 3 or more bearish candlesticks B) Price action eventually reached a previous support level where buying volume increased C) A long upper wick was created as buyers pushed the price action up, but encountered selling pressure near the close of the timeframe D) A bullish body close above the support level maintains bullishness and the Inverted Hammer E) Increased buying volume entered the market and a bullish uptrend was established - Hanging Man Candlestick Pattern (00:06:28)
Description:
The Hanging Man is a bearish reversal pattern, made up of just one candle, found in an uptrend of three or more bullish candles. It has a long lower wick and a short body at the top of the candlestick with little or no upper wick.hanging man is a key piece of evidence that market sentiment is beginning to reverse the uptrend, and the bullish strength is no longer there. This candle shows that there was significant selling pressure, but the buyers continued to push the price up to the open, but this selloff is an indication the price has peaked, and the sentiment is reversing where sellers will eventually gain control. In addition, a hanging man candlestick can be red or green, and is still considered bearish. A) Price action consolidated and formed a support level where buying volume increased B) A bullish uptrend was formed as buying volume increased C) Price action eventually reached a previous resistance level and encountered selling pressure D) A bearish body close below the resistance level indicates sellers have control E) The long lower wick shows there was buying pressure near the close of the timeframe, but closed with the bearish body F) A bearish downtrend was established as price action made lower highs and lower lows - Doji, Dragonfly Doji, Gravestone Doji Candlestick (00:12:16)
Description:
Doji Candlestick A doji is a name for a session in which the candlestick for a security has an open and close that are virtually equal and are often components in patterns. Doji candlesticks look like a cross, inverted cross or plus sign. Alone Doji are neutral patterns that are also featured in a number of important candlestick patterns. A Doji can be a Gravestone Doji or a Dragonfly Doji. A) A support level was created in an area of consolidation B) A resistance level was created in an area of consolidation C) Doji candlesticks were formed and created in an area of consolidation showing indecision where open and close are virtually equal D) Price action continued to consolidate, where price action eventually broke support level Dragonfly Doji Candlestick The Dragonfly Doji Candlestick pattern can be interpreted as a bullish reversal when it occurs at the bottom of downtrends. The Dragonfly Doji resembles a Tshaped candlestick that is created when the open, low, and closing prices are virtually equal. The most important part of the Dragonfly Doji is the long lower wick. A) A bearish downtrend was created with 3 or more bearish candlesticks B) Price action formed a resistance level as buyers pushed price action up, but got rejected with long upper wicks C) Price action eventually established a new support level as buyers entered the market D) A long lower wick was formed representing rejection as buying volume increased and pushed the price action up E) A bullish close formed at the open of the candlestick timeframe creating the Dragonfly Doji candlestick F) Bullish momentum continued as more buyers entered the market and creating higher highs and higher lows Gravestone Doji Candlestick The Gravestone Doji Candlestick pattern can be interpreted as a bearish reversal when it occurs at the top of uptrends. The Gravestone Doji resembles an inverted “T” shaped candlestick that is created when the open, high, and closing prices are virtually equal. The most important part of the Gravestone Doji is the long upper wick. A) A bearish downtrend was established B) Price action consolidated from the bearish downtrend C) A support level was created during consolidation, and price action increased as buying volume increased D) Price action broke through an area of resistance E) A long upper wick was formed representing rejection as more sellers entered the market at a new resistance level F) A bearish body close formed at the open of the candlestick timeframe creating the Gravestone Doji candlestick G) Bearish momentum continued as more sellers entered the market and creating lower highs and lower lows - Piercing Line Candlestick Pattern (00:09:12)
Description:
A Piercing Line candlestick pattern is a two candle pattern, which suggests a potential bullish reversal, with moderate strength. It is located at the bottom of a bearish downtrend as buyers enter the market and push prices higher. The piercing pattern involves two candlesticks with the second bullish candlestick opening lower than the preceding bearish candle. This is followed by buyers driving prices up to close above 50% of the body of the bearish candle. This pattern signals a bullish reversal however, it needs another confirmation bullish candle to open above the previous green candle, and close above the previous red bearish candle (2 green candles engulfing the previous red candle) to initiate a buy for the uptrend. A) A bearish downtrend was established B) Price action eventually formed a new support level as buyers entered the market C) The bullish candlestick closed 50% or above the preceding bearish candlestick D) The following bullish candlestick completely ‘engulfed’ the bearish candlestick creating the Piercing Line candlestick pattern E) A bullish uptrend continued until it reached the previous level of resistance - Dark Cloud Cover Candlestick Pattern (00:07:52)
Description:
The Dark Cloud Cover pattern is a candlestick pattern that signals a potential reversal to the downside. It appears at the top of an uptrend and involves a large green (bullish) candle, followed by a red (bearish) candle that creates a new high before closing lower than the midway point of the previous green candle. An additional bearish candle is required to complete the Dark Cloud Cover and engulf the previous bullish candleThis dark cloud cover is signaling a downtrend as sellers outweigh the buyers. A) Price action consolidated and formed a support level B) A bullish uptrend was established as buying volume increased C) Price action eventually reached a level of resistance D) A bearish candlestick closed 50% or below the preceding bullish candlestick E) The following bearish candlestick completely ‘engulfed’ the bullish candlestick creating the Dark Cloud Cover candlestick pattern F) A bearish downtrend continued creating lower highs and lower lows - Morning And Evening Star Candlestick Pattern (00:12:42)
Description:
Morning Star Candlestick Pattern The morning star and the evening star are visual patterns consisting of three or more candlesticks that are interpreted as a bullish or bearish sign by technical traders. The morning star candlestick pattern is considered a sign of hope in a bleak market downtrend. It is a three candle pattern, one short bodied candle between a long red and a green candle. Normally, the ‘star’ will have no overlap with the longer bodies, as the market gaps both on open and close. It signals that the selling pressure of the first candle is subsiding, and a bull market is on the horizon. In contrast, the evening star pattern is the exact opposite, and indicates the reversal of an uptrend, and is particularly strong when the third candlestick erases the gains of the first candle. A) A bearish downtrend was established B) Price action eventually formed a new support level as buyers entered the market C) The Morning Star candlestick pattern was created (3 candles), a long red bearish candlestick, a small indecision candlestick (Doji or Spinning Top), and a long green bullish candlestick D) This pattern created a bullish reversal as buying volume increased and established an uptrend Evening Star Candlestick Pattern The morning star and the evening star are visual patterns consisting of three or more candlesticks that are interpreted as a bullish or bearish sign by technical traders. The morning star candlestick pattern is considered a sign of hope in a bleak market downtrend. It is a three candle pattern, one short bodied candle between a long red and a green candle. Normally, the ‘star’ will have no overlap with the longer bodies, as the market gaps both on open and close. It signals that the selling pressure of the first candle is subsiding, and a bull market is on the horizon. In contrast, the evening star pattern is the exact opposite, and indicates the reversal of an uptrend, and is particularly strong when the third candlestick erases the gains of the first candle. A) A bullish uptrend was established B) Price action eventually formed a new resistance level as sellers entered the market C) A support level was also created and buying volume continued to push price action through the previous resistance level D) The Evening Star candlestick pattern was created (3 candles), a long green bullish candlestick, a small indecision candlestick (Doji or Spinning Top), and a long red bearish candlestick (pattern is stronger if the bearish candle ‘engulfs’ the green candlestick. This example we needed extra confirmation from the following bearish candlestick to break the support level E) This pattern created a bearish reversal as selling volume increased and established a downtrend - 3 White Soldiers Candlestick Pattern (00:06:59)
Description:
Three White Soldiers is a bullish candlestick pattern that is used to predict the reversal of a current downtrend. The pattern consists of three consecutive full bodied candlesticks that open within the previous candle’s real body and close that exceeds the previous candle’s high. These patterns are mainly used on a higher timeframe (daily) where each candle represents an entire day of trading over three full days, establishing a strong reversal pattern. However, the Three Black Crows is the exact opposite pattern, and is a bearish candlestick pattern that is used to predict the reversal of a current uptrend. These patterns are more widely used by swing or position traders, as opposed to day traders. A) Price action created an area of consolidation B) A support level was created in this consolidation period C) A resistance level was also created in this consolidation period D) The 3 White Soldiers candlestick pattern was created (3 candles) where it created 3 consecutive full bodied bullish candlesticks as it broke through the previous resistance level created in the consolidation period E) Bullish momentum continued as new buyers entered the market after this bullish pattern was created - 3 Black Crows Candlestick Pattern (00:04:15)
Description:
Three White Soldiers is a bullish candlestick pattern that is used to predict the reversal of a current downtrend. The pattern consists of three consecutive full bodied candlesticks that open within the previous candle’s real body and close that exceeds the previous candle’s high. These patterns are mainly used on a higher timeframe (daily) where each candle represents an entire day of trading over three full days, establishing a strong reversal pattern. However, the Three Black Crows is the exact opposite pattern, and is a bearish candlestick pattern that is used to predict the reversal of a current uptrend. These patterns are more widely used by swing or position traders, as opposed to day traders. A) Price action created an area of consolidation B) A support level was created in this consolidation period C) A resistance level was also created in this consolidated period D) The 3 Black Crows candlestick pattern was created (3 candles) where it created 3 consecutive full bodied bearish candlesticks as it broke through the previous support level created in the consolidation period E) Bearish momentum continued as new sellers entered the market after this bearish pattern was created
