Every Candlestick Tells a Story... Here's how to read them like a pro

knowing how to correctly read

candlesticks helps you to understand the

market take more accurate trades easily

avoid a lot of losses that you would

have taken otherwise and ultimately will

help you to stay on the right side of

the market every Candlestick tells you a

story and mastering them lets you read

the market like a book that's exactly

what's going to happen in this class

pretty much no candle will print the

same as the previous they're all going

to be different in some way but there

are only really three types of

Candlestick and when you wonder

understand this and understand what each

one is you'll have a much better

understanding of the market so the three

types of Candlestick are strength

candles control shift candles and

indecision candles we're going to start

by going through the strength candle now

to explain anything inside of this video

we need to preface by saying the market

is a battle between buying and selling

when we're looking at candles we are

looking at Market psychology they tell

us a story as to who is in control

between the buyers and the sellers when

we see more buying taking place in a

market prices go up because the sellers

can demand more dollars per unit of the

assets that they have if there are more

people who are demanding to buy and

there are more willing buyers more

selling leads to lower prices because

the buyers can demand more units per

dollar if lots of people are trying to

sell an asset into a market you can

offer a lower price to one of them and

someone is going to take it this is

really why markets go up and down and

the candlesticks are a direct direct

reflection of this buying and selling

battle that's taking place at all times

so remember this throughout the whole

video all we're doing here is trying to

read this battle using candles so

getting into strength candles if we have

a candle that opens here and closes here

with a large candle body and a small

upper Wick this is the result of strong

buying this is a strength candle and it

indicates that right now at the time of

printing this candle the buyers hold

control over price in the market the

same is true for a bearish candle that

opens here closes here has a large

candle body and a small lower Wick this

is the result of strong selling we've

seen uninterrupted selling which has

driven the market down over whatever

specified period of time this candle is

representing it indicates that sellers

at this point in time hold control over

price in the market so these strength

candles always need to have small Wicks

and large candle bodies because what

we're seeing here is a uninterrupted

phase of buying or selling where the

resistance from buyers or sellers

against the trend simply wasn't strong

enough to slow the market down and

leading on from that bullish candles

with no upper Wick and bearish candles

with no lower Wick so just flat tops and

flat bottoms like these although they're

reasonably rare in the market when they

do print they are even stronger than

little Wicks because they show no

resistance from sellers or buyers

against the larger move throughout the

specif ifed period of time so if we see

an hourly candle close completely

bullish with absolutely no Wick above it

gives us a very strong indication that

the buyers are fully controlling this

market right now there is no resistance

from Sellers and after a strength candle

like this prints you can assume there

will generally be continued upside or

downside depending on if the candle was

bullish or bearish now there will be

pullbacks and of course context matters

which we'll get into soon but ultimately

it shows control leading to further

moves in that direction in most cases

when we see these strength candles we

know two things number one we want to

move with the strength number two we

want to make sure that we don't trade

against it very simple forgetting good

trades and avoiding bad ones now when

we're looking at strength candles as

with all candles the size of the candle

Body Matters too okay we have four

examples here all are showing

uninterrupted buying but the largest

candle is by far going to be the

strongest and the best indication that

the buyer are in control a very small

candle body even if there is no upper

Wick doesn't show a massive amount of

buying yes it shows that there pretty

much isn't any selling acting as

resistance but it's not showing a

massive influx of buying in the same way

that a very large candle is so a candle

body that is super small like that

weakest example there it's not going to

be the strongest for determining future

Trend directions even though it does

show some uninterrupted buying the big

candle however that's the kind of thing

we want to see for high accuracy moves

this is because large candles show

massive buying and smaller candles show

a less aggressive wave of buying the

buyers are still in control at this

point but not in massive numbers and

obviously in a selling example we just

flip this on its head large bearish

candles at the best to see smaller

bearish candles aren't going to matter

as much one example of a strength candle

that you've probably heard of before is

the engulfing pattern if a candle has

engulfed multiple previous candles it

shows a Takeover in control from buyers

or sellers so in this example here we

can see that four bullish candles were

engulfed by one bearish candle obviously

this bearish candle is what we call the

strength candle and we've seen some

small buying pressure but then a massive

Takeover in control from Sellers and in

this time period sellers have achieved

more in one candle than it took buyers

to achieve in four times the time okay

four times the amount of candles so if

we were on an hourly chart here we see 4

hours of bullish price action reversed

in one single hour showing clear control

from the sellers seller strength and

therefore opening the doors to new

downside traits or selling opportunities

so to round up the foundations of

strength candles a strength candle shows

clear control from either buyers or

sellers in a market larger bodies with

small or no Wicks show uninterrupted

buying or selling pressure and that is

exactly what we want to see and this

gives us an insight into where the

market is likely to move next a strength

candle on the bullish side will

potentially lead into further upside and

a strength Candle on the bearish side

will potentially lead into lower prices

or selling opportunities we're going to

bring this into context shortly after

we've looked at these next two candles

so now let's move on to control shifts

so a control shift candle shows a

Takeover in control or a reversal

happening in real time as we've said

Wicks show rejected price action so a

candle with a large wick on the upside

shows an attempt to go higher totally

reversed by sellers the opposite is true

with large downside wicks for a market

where buyers are taking control over

sellers so here's an example of how a

control shift candle forms and what it

means in real time the candle opens here

we see a drive to the upside which is

strong buyers taking price higher but

then we start to see sellers taking

control of the market and before the

candle closes we see the sellers reverse

all of the buying attempts taking the

market back down to close around where

it opened this large upside Wick is

showing in real time the buyers losing

control of the market to the sellers

therefore hinting at a reversal and

giving us valuable information that we

can potentially use for future selling

trades and everything is exactly the

same but with a large lower Wick instead

of upper for the case of a reversal from

selling to buying now in terms of the

candle body it really doesn't matter if

the candle closes bullish or bearish so

whether it's red or green or blue Blue

and Gray in my instance it doesn't

matter because it's the wick that tells

the story and just to show you the

scenario is identical for bullish

control takeovers but it's reversed okay

so large downside Wicks is what's

telling the story here of sellers losing

control to buyers once again the candle

body color doesn't matter it's the wick

that gives us the information now the

Candlestick pattern that you might have

seen this is very basic information is a

pin bar and a candle that closes like

this is what we call a pin bar they can

be very strong in the right context but

you need to weave in the context which

we are going to cover very soon but just

so you know the pin bars are pretty much

control shift candles okay it's just the

name that I literally gave it to for

this video to explain what it is that

pin bars are actually showing you the

most important part about each of these

candlesticks including pin bars as well

as the engulfing that we showed you

before is that rather than looking at it

as just a pattern you want to consider

what the market is actually telling you

with that battle between buyers and

sellers this is where the valuable

information can be found so with pin

bars or control shift candles the

generalized idea is to buy when we see

bullish control shifts and sell when we

see a bearish control shift context

matters and it will be covered very soon

so to round these up for now a control

shift candle is the first indication

that buyers or sellers are claiming

control over the leading party in real

time so a bearish control shift candle

is where we see sellers taking the

market from buyers and a bullish control

shift candle is where we see the buyers

taking control of the market from the

sellers the large upper or lower Wick

tells us the story and we can use it to

determine reversals ahead of time now

one important note it has to be a large

Wick one side if there is a considerably

large Wick either side of the market so

both sides this is what we call

indecision where there is no party in

control and that what we're going to

cover just now indecision candles tell

us that no one is currently in control

and that buying and selling is equally

weighted so contrary to the other

versions we've looked at where we're

looking at strength or reversals

indecision is simply where nothing is

currently happening an indecision candle

looks like this you might know it as a

dogee okay we have equal Wicks either

side or relatively equal wigs and an

open and close price that is near

together so we haven't made much

movement we've attempted to go higher

attempted to go lower but ended up

closing around where we opened now

here's a run through of what a

indecision candle may form like the

candle opens here buyers attempt to push

the market higher sellers revers this

attempt sellers then attempt lower

pricing but eventually the market ends

up closing near the open price so what

we've seen is an equal attempt from

buying and an equal attempt from selling

Without Really any movement being made

it's simply a state of pure indecision

in the market no one is in control

buyers and sellers are equal now when

we're looking at indecision candles in a

market they are not always going to look

exact ly the same these are some

different forms of indecision candles

that you will see sometimes they will

have a small candle body sometimes they

will have a slightly larger candle body

sometimes the Wicks will be really long

sometimes they'll be short all in all

though what we're looking for is a

candle that opens and closes near to

itself with a wick either side showing

attempts to go higher attempts to go

lower and complete failure and

indecision from One Direction or the

other now how do we actually trade inde

decision well we cannot directly trade

it because it doesn't tell us who's in

control right we want to be on the right

side of the market if buyers aren't in

control and sellers aren't in control

then we can't directly trade that candle

but we can use indecision candles for

trades once the market creates clear

Direction so for example if we have an

indecision candle which shows no control

by either party and then the market

breaks out of that range we can use the

pullback to buy or sell in line with

whichever direction has taken control

whether that's buying or selling and

also one of its primary use cases is to

be used to gauge the likelihood of

reversals when it prints in points of

interest like Supply zones or demand

zones so here we see a collection of

different candles which shows after this

selling move the sellers have lost

control this itself doesn't confirm a

trade we would generally want to see

something like a bullish engulfing to

confirm that the buyers did indeed take

control but the indecision is the first

sign that the market is indeed slowing

down so it's a good place to start

prepping buys and keeping in mind that

this this bias May shift now that we've

seen a complete slowdown in momentum so

to round up indecision it's not directly

tradable as it doesn't give us clear

direction from buyers or sellers but

instead it is used for gauging reversals

and also taking trades from the point

where one party finds control so now

it's time to use what we've learned in

the first section of this video to

actually bring it into real markets and

look at some context in real charts so

we're going to go through first of all

each of the candle types I've showed you

we have number one strength candles

these are candles like this one this one

this one all of these large bodied

candles okay these are strength candles

which show clear control from buyers or

sellers now you can see it's the

strength candles that are actually

creating the up and down moves okay the

second type of candle is that control

shift candle so if we look at this

candle here this gray one uh I'll just

mark it so you can see this shows a

control shift which could be a first

indication that potten ually the market

could reverse from here because what

we've seen is a push-up few strength

candles we've then had a pull back but a

massive push back up from buyers

bringing us back up to this point and

pretty much rejecting all price action

that took place underneath that level

there around here okay so that is a

control shift candle that's what we

would use uh to gauge potential

reversals and then the third type of

candle is the indecision candle I show

you a few points where these indecision

candles form so we after we have have

this strength movement look up here we

have some

indecision more indecision the market

breaks out higher and creates once again

more indecision candles so you can see

there's one 2 3 4 five there before the

movement lower so this whole area pretty

much up here is a phase of indecision

the market has slowed down buyers are

stepping out and the market is deciding

which way it wants to go sellers then

step back in and drive the market lower

so this phase of indecision indicated by

all of those different separate

indecision candles it's kind of that

first sign of reversal that we spoke

about all right what we've started to

see is no large strong candles and more

sideways candles with wigs either side

now another point of indecision is over

here this one's important as well see

this dogee candle this little gray one

this created a massive push of strength

so this is basically what we could see

as a final point of consolidation before

a large runway in the market now now

this of course can then be used as a

potential demand zone now let me explain

demand zones are areas where

institutional demand or large buying has

entered the market we can determine

these demand zones by looking at

indecision candles before strength

candles this is an indecision candle

these are strength candles so that tells

us that this area here is where

significant buying took place in the

past the general idea we can then work

with is that if the market returns to

one of those indecision candles

underneath the strength candles we may

see a second wave of buying and this is

where we can start to read into the

story in the current existing candles so

to run through exactly what we've seen

here just from this point onwards we

have a consolidation where we have

indecision in the market we then have

clear control from buyers in this

massive strength move with multiple

strength candles eventually the market

reaches a phase of indecision up here

and the market is struggling to push

higher there is some alleviation from

buyers who were buying in earlier so

there will be more buy positions being

closed out and as well as that people

start to short or sell the market

because they see this weakness creeping

yet we then see these strength moves

from sellers however an important thing

to note here is what we can consider as

multic candle momentum when I'm saying

that if you remember back to the

engulfing we can have some downside like

this which takes quite a while and then

some upside which would very quickly

wipe out all of the downside so what we

can also consider is how fast movements

are occurring and that can give us a

good insight into what's actually going

on now if we take a look at this buying

move right this move upwards we managed

to cover from this low up to this High

all of this ground in 15 hours now the

return from that high to that low has

actually taken 4 days so it's a

significantly longer time frame to get

down here than it was to initially get

up here what does this tell us well for

the most part this actually indicates

that the buying that was taking place

here is significantly stronger than any

of this selling that has taken place on

the way back down because yes although

sellers are in control at this point

they are moving exceptionally slow in

comparison to the amount of power that

the buyers brought to the market so this

again can be another sign that we've

pretty much completely gathered from

candlesticks as to who is in control of

this Market on a bigger time Horizon so

we have buyers taking control very fast

push-up alleviation and indecision

sellers taking control but with

significantly less strength hence the

massive sideway movements of this market

and the failure to take this Market

lower uh at any significant pace and now

that the market has returned to what we

can call a point of Interest being this

area of demand where big buying took

place before what can we now see on

these candles well we can start to see

control shifts coming in so if we zoom

in on this bit of price action what do

these Wicks tell us these are rejected

prices so although the market managed to

come down to at its lowest point here we

actually never saw it close into that

area of Demand right so we've actually

seen buying pressure coming in from here

every time that the sellers have tried

to take the market lower and we've had

that reversal back to the upside I like

to look at structural changes to confirm

my trades which generally would mean if

I wanted to buy into to this Market I'd

want to see one of the previous highs

taken out we got a problem here though

if we take a look at the candles we can

see that there's actually more

indecision and maybe a little bit of

seller control kicking in at these

levels here rather than closing with

strength candles we've actually started

to see some Wick rejections so it's

ideal to not try buying into this

because if the wick rejections follow

through we could potentially move to the

downside fortunately for us however in

terms of our buying narrative we can see

that after we had this small push down

from sellers we actually hit this point

and had a huge drive back to the upside

this is the most clear control shift

candle that we can see big sell and then

buyers step in and push us all the way

back up so from this point on we

actually never managed to see any

closures underneath this level okay we

had push from this point and from there

on this was the lowest point we ever got

to and every attempt to go lower was

indeed reject Ed so there's our control

shift candle there's some solid Wick

rejections as well showing us that the

buyers are stepping in here and now I

want to draw your attention to this

little area here what do we see 1 2 3

indecision candles a fourth relative

indecision candle but it does have a bit

more weakness now with all of the things

combined in seeing that we're in a point

of Interest a high interest buying Point

we've seeing control shift from the

downside we've seeing buyers stepping in

and we're now starting to to see

indecision and then a drive to the

upside with this small strength candle

what could we presume from everything

that we've looked at so far well the

obvious presumption at this point would

be that the market could potentially be

ready to trade higher if we Zoom back

out and consider what we said about the

timing and the multi candle momentum

that is simply referring to the speed of

this movement is exceptionally faster

showing buyers are exceptionally

stronger than the speed of the turn back

down which is the strength of the

sellers so we know from a larger

perspective buyers are in control okay

we know from a lower perspective that

once again it looks like now that we've

met this High interest area buyers are

taking control we would want to see some

more strength candles to really confirm

anything here okay we haven't seen

closures above a notable structure point

which is pretty much going to be here we

obviously have got more points as well

which would indicate further strength

from buyers but we would realistically

need to see some strength candles making

some significant movements in order for

us to be confident enough to buy this

Market because although we've seen those

first signs of reversal as we've said

control shift and indecision we haven't

yet seen solid bio strength we would

need to see that in order to actually

build our narrative and understand that

the market direction is under control

from the buyers so pushing this Market

forward a little bit you can see that

following on from the indic ision we

have one more small phase of indecision

which is the consolidation where buyers

are

accumulating we once again have then a

control shift candle and what precedes

the control shift candle so let's take a

look the control shift candle is going

to be this one here we see an attempt to

go lower from sellers big buying

stepping in at the low and then a close

higher than the open so this actually

shows a big attempt to go lower reversed

by buyers

this then precedes these large strength

candles these two candles have engulfed

a massive amount of previous bearish

price action okay if we were to quantify

it we have here an entire range of

around two days nearly 3 days worth of

price action cleared back

out in pretty much 1 hour okay we have

one 30-minute candle two 30-minute

candles and they've wiped out nearly 3

days of downside price action which

shows us that the buyers are definitely

back in control now what can we do here

then well of course as we said the areas

that we like to buy from are going to be

the indecision candles before large

movement up so for this one I'd actually

look towards the control shift candle as

the higher probability point to buy from

this would be where the best trades come

from basically what we would be looking

for is as we've said this is a high

interest point for Buy buyers if the

market reverses to this level it is

going to be a high interest point for

buyers again we've seen significant

strength meaning we've seen significant

demand if the levels hit again we're

probably going to see that one more time

so with everything we have in mind now

we could actually look to take this

Market higher okay judging from the fact

that the market is of course Very

bullish on the bigger picture the strong

moves are a lot faster than the pullback

moves okay we could look for targets

into essentially new highs

we can buy from this area expecting that

if the market reaches that level again

it will start to drive to the upside

with strength and our targets can then

be leading towards further points in the

trend basically considering we have

strong buyers we would just simply be

looking for new strong buyers to step in

now that we've had that alleviation or

relief in the market and came back into

some high interest buying points so here

is how this would

go we see the market slowly return once

again a brilliant sign let's think about

the timing here in just 1 hour we

created all of this upside and then it

took a further uh 9 hours to return back

down to the point that we created uh

just after 1 hour of bullish price

action right you can also see that there

is no momentum Behind these bearish

moves all of the first candles for this

entire first range are indecision

candles we then did have one bearish

kind of very weak strength candle so it

wasn't really uh a very strong candle

there at all remember we said the size

of the candle Body Matters as well and

then we actually got pretty much a

control shift candle which would be this

one after that weak strength candle so

we attempted to go lower but we rejected

over 50% of that 30-minute candle's

price action before then printing the

next one which once again has a small

upper Wick and a larger lower Wick

rejecting around 35 to 40% of that

candle's price action so we know that

this downward move is a lot weaker than

the upward move that came before it you

see how we're reading the candles to

understand the story that's happening

behind the market what we're actually

doing here is basically considering by

looking into the candles how fast the

candles are forming how strong the

candles are any indecision any control

shift we are building a narrative as to

who is in control of this Market in that

battle between buyers and sellers

because realistically it's one of the

only things that matters okay if the

buyers are in control we want to buy if

the sellers are in control we want to

sell if there is no clear control we

don't want to do either at that point in

time okay so let's Round Up This trade

then you can see that it did run through

to make new highs we have number one the

big picture narrative strong fast buying

slower choppier selling with a massive

phase of consolidation or a larger

indecision taking place pretty much from

this point to this point before we have

that final push lower when the final

push lower is created it trades into an

area where made maor buying started we

then see no closures in that level just

under this level here we only have Wicks

showing control shifts showing failure

to go lower from the sellers following

on from that we see a major control

shift candle which is this one here one

final attempt to go lower completely

reversed and that is Then followed by

this phase of indecision which shows no

one is at control uh at this point in

time which is actually a good sign for

buying because it means the sellers have

been exhausted after attempting to go

lower of course this is all the first

signs and we don't have confirmation for

a trade just at this point but when we

start to see the market push up with

these two big strength candles this one

and this one this pushes us past some

notable structure points and creates the

strength we wanted to see once again as

we said this one single hour of price

action reversed almost 3 days of

previous price action so we see the

sellers are considerably weaker okay

than the buyers are when they step in

here and then once again just to add

another layer to it we see the selling

attempt back down is also considerably

weak and then we take off once we filled

the significant area the indecision or

control shift candles where the initial

buying started to take place so here you

can see we are not just looking at

Candlestick patterns and you know

textbook activity stuff we are actually

reading into the psychology behind the

market we are saying what is it that the

buyers and sellers are doing that has

created this price action how can can

this be used to formulate trades we know

buyers are strong sellers are weaker we

see the buyers are strong here and the

sellers are weaker so of course the

right side of the market to be on is

going to be the buy side and as you can

see would have worked out brilliantly if

you want to put together everything

we've covered in this class along with

all the other Concepts I used to get

these results last year and that my

students have used to get payouts and

certificates like these in just the past

few months then I have a free your it's

completely free I show you how to build

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