In this video, we'll take a look at how to trade something known as a dog and a dog is essentially
a neutral candle, although there are various flavors of it.
But really, what you're looking at is an opening in a close price that is either the same or very close
to being the same.
This is one of those things where it is a little bit of an art form, you know, because some people
will say that it needs to be an exact open and close being the same.
Some people will say that, you know, if there's like a tick or two difference, that's fine to.
So really, at the end of the day, though, you should assume that these two mean the same thing,
because essentially what they do mean is that the market is undecided during that time period.
In this case, it would be like going on the daily chart.
There are a few other ones, there's a gravestone dodging.
Which means that the market rallied and then broke back down during the day, and that's a pretty bearish
sign.
There is a Dragonfly Dogen, which is somewhat bullish in the sense that it is unchanged, but we did
initially try to break down, but the sellers were repudiated.
There's the long legged dog.
Which just simply is a longer version of a dodgy they all mean the same thing, though, they mean indecision,
so.
Really?
They are a bit difficult to train in the sense that they are probably not one of your more reliable
candlestick patterns, so you have to add a filter to it.
You know, some people will come in and just say, well, buy or sell doges.
And that's not really the way it works in the real world.
For example, what you're looking for is multiple doses, so I'm going to go down to a four hour chart
here.
This is an example here, there's three doges in a row, there's.
Something that isn't quite a dog, but it's similar, there's something that isn't quite a dodgy, but
it's similar, but.
What you're looking for in a scenario like this is you're looking for some type of change in attitude.
So.
As you can see, when I draw these two lines, the Doty's kind of spell out the indecision area, so
for about 16 hours or so, the market was trading in this little area.
So what you want to see is a close below the support or resistance, and in this case it was the support
and we did, in fact, break down from there.
So where do you go looking towards?
One of the most obvious places would be previous in this case, previous support, had we broke higher,
it be previous resistance, assuming that you had it.
You know, we're not at an all time high or something.
So that's a quick and dirty way to look at this.
You can put indicators on to go right along with it.
So I'm going to go ahead and put this indicator on.
This is the nine, Emma, and you can see that it did break lower on a close, lower of this little
range, so it makes sense that you continue to go downward.
In a sense, this is almost the same as trading a rectangle, but in this case it is in the top or bottom
and essentially that, you know, that really is what it is.
It's the market kind of not really knowing where to go and then eventually making its decision.
So let me go ahead and get rid of this.
And see if I can find some others.
They do happen quite a bit, it's it's not that rare.
You know, you could even go so far as to say that it is probably one of the more common setups.
Again, though, like I said, it isn't necessarily the most reliable set up, so really you want to
see multiple doses form, so.
You can see that the Doges were bouncing off of this area here.
This one was probably the most dodgiest of dodgy candles, if you will.
And you can see that there was obvious resistance just above and it's also shown by these wigs.
Once we broke out, we went straight to.
The next potential resistance area and then pulled back.
And not a huge move, but it does double this area much like a rectangle, you know, that would be
your minimum.
Obviously these do happen time and time again.
And you'll notice that once we broke out of this area, the big green candle got support from the nine
M.A.
Now you can trade just a single.
And some traders do, but the more you get in a row, the more success you'll have as a general rule.
Now, again, that's not always going to be the case.
You'll notice that we were in a downtrend here in Bitcoin.
We rallied a bit.
We formed a dozy right here where we had seen previous resistance.
Right at about seventy one hundred dollars.
You put a stop loss on the other side, you sell once, you break down below it and you can see it ends
up being a nice trade.
When I go ahead and put an e-mail here and I'm going to although you could use a night, I'm going to
use a 20 just because I like the way it behaves on a daily or on a day time frame.
And you'll notice that there is a dodgy right here.
You know, the market had been rallying a bit and then it's just kind of hanging here at this moving
average.
You could also make an argument for a certain amount of support here and, you know, just call it 60,
600 just to give it a round figure here.
It's actually a little bit lower than that, which you can see that the market had been hanging on to
this area.
The fact that the 20, Emma, has come into play formed a little bit of a support of Candlestick here,
known as a hammer, which will be in our next video.
But you can see that we kind of stalled here and then we broke the top of it and then shot straight
up, so.
All things being equal, you're with the trend over the last several hours and the fact that we broke
the top of the dog suggests that perhaps that indecision has gone away.
Another thing that I would point out is that in this particular run, you can see that there is a gravestone
division there, which in theory is very negative.
However, it can also be said that once you break above the top of that, that's a certain amount of
resistance overcome.
So when you look at it and then here and the 20 M.A all kind of coming in together at the same time,
that does suggest that perhaps there's a little bit more to go here.
And Bitcoin.
In the next video, I'll take a look at two of the most powerful candlesticks out there, the hammer
and the hanging man.