WEBVTT 00:02.930 --> 00:09.260 In this video, we'll take a look at how to trade something known as a dog and a dog is essentially 00:09.260 --> 00:13.160 a neutral candle, although there are various flavors of it. 00:15.340 --> 00:21.340 But really, what you're looking at is an opening in a close price that is either the same or very close 00:21.340 --> 00:22.300 to being the same. 00:22.870 --> 00:29.050 This is one of those things where it is a little bit of an art form, you know, because some people 00:29.050 --> 00:34.320 will say that it needs to be an exact open and close being the same. 00:34.930 --> 00:39.400 Some people will say that, you know, if there's like a tick or two difference, that's fine to. 00:41.030 --> 00:46.280 So really, at the end of the day, though, you should assume that these two mean the same thing, 00:46.280 --> 00:51.890 because essentially what they do mean is that the market is undecided during that time period. 00:51.890 --> 00:54.110 In this case, it would be like going on the daily chart. 00:55.500 --> 00:58.520 There are a few other ones, there's a gravestone dodging. 00:59.900 --> 01:05.270 Which means that the market rallied and then broke back down during the day, and that's a pretty bearish 01:05.270 --> 01:05.750 sign. 01:06.970 --> 01:13.870 There is a Dragonfly Dogen, which is somewhat bullish in the sense that it is unchanged, but we did 01:13.870 --> 01:18.490 initially try to break down, but the sellers were repudiated. 01:19.240 --> 01:20.950 There's the long legged dog. 01:22.530 --> 01:28.490 Which just simply is a longer version of a dodgy they all mean the same thing, though, they mean indecision, 01:28.650 --> 01:29.310 so. 01:31.070 --> 01:32.180 Really? 01:34.480 --> 01:40.300 They are a bit difficult to train in the sense that they are probably not one of your more reliable 01:40.300 --> 01:45.630 candlestick patterns, so you have to add a filter to it. 01:45.640 --> 01:49.210 You know, some people will come in and just say, well, buy or sell doges. 01:49.840 --> 01:52.770 And that's not really the way it works in the real world. 01:55.150 --> 02:02.530 For example, what you're looking for is multiple doses, so I'm going to go down to a four hour chart 02:02.530 --> 02:02.860 here. 02:07.000 --> 02:11.050 This is an example here, there's three doges in a row, there's. 02:12.430 --> 02:16.900 Something that isn't quite a dog, but it's similar, there's something that isn't quite a dodgy, but 02:16.900 --> 02:17.770 it's similar, but. 02:19.320 --> 02:27.040 What you're looking for in a scenario like this is you're looking for some type of change in attitude. 02:27.060 --> 02:27.720 So. 02:30.480 --> 02:38.130 As you can see, when I draw these two lines, the Doty's kind of spell out the indecision area, so 02:38.130 --> 02:44.130 for about 16 hours or so, the market was trading in this little area. 02:45.470 --> 02:53.030 So what you want to see is a close below the support or resistance, and in this case it was the support 02:53.570 --> 02:55.840 and we did, in fact, break down from there. 02:56.360 --> 02:59.000 So where do you go looking towards? 03:00.940 --> 03:07.030 One of the most obvious places would be previous in this case, previous support, had we broke higher, 03:07.030 --> 03:09.700 it be previous resistance, assuming that you had it. 03:10.600 --> 03:12.790 You know, we're not at an all time high or something. 03:13.450 --> 03:15.670 So that's a quick and dirty way to look at this. 03:16.750 --> 03:19.720 You can put indicators on to go right along with it. 03:19.840 --> 03:22.720 So I'm going to go ahead and put this indicator on. 03:23.670 --> 03:28.770 This is the nine, Emma, and you can see that it did break lower on a close, lower of this little 03:28.770 --> 03:33.360 range, so it makes sense that you continue to go downward. 03:34.720 --> 03:44.980 In a sense, this is almost the same as trading a rectangle, but in this case it is in the top or bottom 03:45.160 --> 03:47.730 and essentially that, you know, that really is what it is. 03:47.740 --> 03:52.270 It's the market kind of not really knowing where to go and then eventually making its decision. 03:53.270 --> 03:55.190 So let me go ahead and get rid of this. 03:57.320 --> 03:59.560 And see if I can find some others. 03:59.840 --> 04:02.930 They do happen quite a bit, it's it's not that rare. 04:05.230 --> 04:13.210 You know, you could even go so far as to say that it is probably one of the more common setups. 04:17.330 --> 04:24.590 Again, though, like I said, it isn't necessarily the most reliable set up, so really you want to 04:24.590 --> 04:29.390 see multiple doses form, so. 04:31.740 --> 04:35.130 You can see that the Doges were bouncing off of this area here. 04:36.740 --> 04:40.640 This one was probably the most dodgiest of dodgy candles, if you will. 04:42.770 --> 04:47.990 And you can see that there was obvious resistance just above and it's also shown by these wigs. 04:49.130 --> 04:52.370 Once we broke out, we went straight to. 04:53.410 --> 04:57.520 The next potential resistance area and then pulled back. 04:58.590 --> 05:03.900 And not a huge move, but it does double this area much like a rectangle, you know, that would be 05:03.900 --> 05:04.560 your minimum. 05:04.560 --> 05:09.690 Obviously these do happen time and time again. 05:09.690 --> 05:15.540 And you'll notice that once we broke out of this area, the big green candle got support from the nine 05:15.540 --> 05:16.200 M.A. 05:17.140 --> 05:20.050 Now you can trade just a single. 05:21.640 --> 05:30.550 And some traders do, but the more you get in a row, the more success you'll have as a general rule. 05:30.580 --> 05:33.280 Now, again, that's not always going to be the case. 05:33.310 --> 05:35.760 You'll notice that we were in a downtrend here in Bitcoin. 05:36.130 --> 05:37.030 We rallied a bit. 05:37.030 --> 05:41.170 We formed a dozy right here where we had seen previous resistance. 05:43.140 --> 05:45.450 Right at about seventy one hundred dollars. 05:46.400 --> 05:51.560 You put a stop loss on the other side, you sell once, you break down below it and you can see it ends 05:51.560 --> 05:52.820 up being a nice trade. 05:53.240 --> 05:58.880 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 05:58.880 --> 06:06.190 use a 20 just because I like the way it behaves on a daily or on a day time frame. 06:06.560 --> 06:12.290 And you'll notice that there is a dodgy right here. 06:12.830 --> 06:17.510 You know, the market had been rallying a bit and then it's just kind of hanging here at this moving 06:17.510 --> 06:17.960 average. 06:18.320 --> 06:25.040 You could also make an argument for a certain amount of support here and, you know, just call it 60, 06:25.040 --> 06:28.000 600 just to give it a round figure here. 06:28.010 --> 06:32.960 It's actually a little bit lower than that, which you can see that the market had been hanging on to 06:32.960 --> 06:33.590 this area. 06:34.100 --> 06:41.450 The fact that the 20, Emma, has come into play formed a little bit of a support of Candlestick here, 06:41.450 --> 06:44.180 known as a hammer, which will be in our next video. 06:44.990 --> 06:49.730 But you can see that we kind of stalled here and then we broke the top of it and then shot straight 06:49.730 --> 06:50.510 up, so. 06:52.310 --> 06:59.570 All things being equal, you're with the trend over the last several hours and the fact that we broke 06:59.570 --> 07:05.900 the top of the dog suggests that perhaps that indecision has gone away. 07:05.960 --> 07:11.960 Another thing that I would point out is that in this particular run, you can see that there is a gravestone 07:11.960 --> 07:14.720 division there, which in theory is very negative. 07:16.390 --> 07:21.100 However, it can also be said that once you break above the top of that, that's a certain amount of 07:21.100 --> 07:22.300 resistance overcome. 07:22.720 --> 07:33.340 So when you look at it and then here and the 20 M.A all kind of coming in together at the same time, 07:33.340 --> 07:38.260 that does suggest that perhaps there's a little bit more to go here. 07:38.530 --> 07:39.700 And Bitcoin. 07:40.090 --> 07:46.360 In the next video, I'll take a look at two of the most powerful candlesticks out there, the hammer 07:46.600 --> 07:47.770 and the hanging man.