WEBVTT 00:02.860 --> 00:08.230 And this first video went to do the most basic of instruction, I'm going to teach you how to read a 00:08.230 --> 00:14.950 candlestick because after all, it's going to be impossible to glean any type of information from these 00:14.950 --> 00:17.830 charts if you do not understand the symbols in front of you. 00:19.650 --> 00:23.410 A candlestick is simply another version of the bar chart. 00:24.030 --> 00:25.650 In other words, there is the. 00:26.730 --> 00:35.310 Open price, the high price, the low price and the close price, and you may be familiar with. 00:39.590 --> 00:45.340 Something like this, and you might have a bar that looks. 00:46.860 --> 00:52.800 Like that, you may understand that we opened at this price, we reached as high as this price fell 00:52.800 --> 00:54.850 as low as this price and close at this price. 00:55.230 --> 00:59.010 Well, Candlestick just it shows you the exact same information. 01:00.330 --> 01:05.640 But it also does it with color coding now, typically it will be red and green, red being a negative 01:05.640 --> 01:11.220 candlestick, green being positive, or you may see black and white shards, for example, and that 01:11.220 --> 01:13.490 would be black is negative and white is positive. 01:13.500 --> 01:18.720 Now, it can be any color scheme, but those are by far the two most common. 01:20.810 --> 01:26.930 So when you see a candlestick, you'll notice that there's a fat part in the middle. 01:27.950 --> 01:30.470 And there may or may not be Wick's. 01:31.510 --> 01:34.970 Or shadows sometimes are called on the candlestick. 01:35.890 --> 01:37.360 So in this case. 01:38.430 --> 01:40.650 What you're looking at is. 01:45.280 --> 01:51.640 Let me go ahead and color this, so in this case, let's say it's green, so we already know that it's 01:51.640 --> 01:52.960 positive candlestick. 01:52.970 --> 01:55.750 The price has risen during this candlestick. 01:55.750 --> 01:58.510 This candlestick in this case happens to be on the daily chart. 01:59.770 --> 02:04.180 So we can take information from that, you know, we know that. 02:05.630 --> 02:07.040 Just like the. 02:09.790 --> 02:12.940 Bar chart, there's your low, that's the low of the session. 02:13.960 --> 02:15.100 This is the high. 02:17.410 --> 02:19.570 That doesn't change, but what does change? 02:20.820 --> 02:21.750 As this is the. 02:22.830 --> 02:29.580 Body of the camel, and this is the range in which the market opened and closed. 02:31.140 --> 02:34.700 This is your ticket to open and that's your clothes. 02:34.760 --> 02:36.150 Now, how do we know? 02:37.700 --> 02:38.640 Which ones which. 02:38.660 --> 02:41.460 Well, you have to use a little bit of common sense here. 02:42.230 --> 02:44.870 So, for example, if the candlestick looked like this. 02:47.050 --> 02:49.660 And instead of. 02:55.110 --> 03:03.870 It being green, it was red in the center, you know, that price fell during that time frame and this 03:03.870 --> 03:05.150 case day, like I said. 03:05.160 --> 03:09.540 So we know that that's open and closed because the closes lower than the open. 03:10.050 --> 03:11.100 It's really that simple. 03:11.100 --> 03:12.870 There's not a whole lot more to it than that. 03:14.630 --> 03:20.480 There are some things about candlesticks that you need to keep in mind, some are more important than 03:20.480 --> 03:23.330 others and there are multitudes of candlestick patterns. 03:24.480 --> 03:25.980 But more importantly. 03:28.150 --> 03:33.310 When you see something like this, you recognize very quickly at a glance that there's been a lot of 03:33.310 --> 03:40.980 negative activity there and therefore we're probably in a downtrend or at least in a major pullback, 03:40.990 --> 03:42.030 something to that effect. 03:43.050 --> 03:49.740 Obviously, very, very, very negative momentum, the size of the body matters. 03:50.760 --> 03:56.740 Because it suggests that there might be a bit of conviction. 03:57.540 --> 03:59.340 So, for example. 04:01.780 --> 04:08.140 On this Wal-Mart chart, you can see that this candlestick is pretty long, and what does that long 04:08.140 --> 04:09.260 candlestick tell you that? 04:09.280 --> 04:11.320 Well, that long candlestick tells you that. 04:13.480 --> 04:20.170 There was a lot of selling during that particular session, just as this candlestick here. 04:22.040 --> 04:27.920 Shows you just how bullish Wal-Mart was and beyond that, I would submit that closing at the very highs 04:27.920 --> 04:31.050 of the day would matter as well, because there's no Wyk above. 04:31.400 --> 04:33.230 It wasn't like there was any selling at the end. 04:33.230 --> 04:34.530 So that's a very bullish sign. 04:35.030 --> 04:38.150 So keep these things in mind, because the. 04:41.460 --> 04:48.870 Psychology of the market is being shown to you on this chart, so that tells you that there was a real 04:48.870 --> 04:54.150 conviction, just as this candlestick here tells you that they tried to rally, but they gave back most 04:54.150 --> 04:58.460 of it and just how weak the buyers were by the end of the day. 04:59.600 --> 05:05.570 So that tells you that perhaps they may be struggling like over here, for example. 05:08.080 --> 05:13.090 You can see that the sellers really struggled here, struggled there, but they did continue, they 05:13.090 --> 05:15.750 broke through their struggles and persisted. 05:16.180 --> 05:18.310 So all of this is about psychology. 05:19.390 --> 05:24.490 Now, obviously, you're going to learn a lot more about candlesticks than that in this course, but 05:24.490 --> 05:28.540 just keep in mind, you know, every time you see a candle, think about what's going on there. 05:28.540 --> 05:30.640 The cellars have overwhelmed the buyers here. 05:30.640 --> 05:36.070 And therefore, it makes sense that we continue to go lower, just as it makes sense that with the buyers 05:36.280 --> 05:40.840 closing at the highs of the day, it makes sense that we have risen from their.