YouTube Transcript:
Boot Camp Day 2: Candlesticks

welcome to day two
um day one clearly was not too difficult
you just had to sit there and watch me
cry like a little [ __ ]
um but here we are day two we're
actually looking at charts
um but you probably won't learn much
again because this is going to be a
video from scratch but you will gain or
sorry this is going to be a course from
scratch
um
but you will gain a couple things I'm
going to toss in some little tips that
you know you probably didn't pick up
when you were a beginner
um that can help you along the way so
today we are going to be talking about
candlesticks and price movement and
understanding price movement within
candlesticks Okay so
right we're on the S P 500 right now and
pretty much every single chart you're
going to have is going to look like this
uh wow
okay
uh pretty much every single chart is
going to have you know candlesticks like
this right you can click through
uh whatever ticker symbol you want
and you'll see candlesticks okay
and these candlesticks describe price
okay how do they describe it okay
through bodies and Wicks okay these are
called candlesticks because they leave
Wicks okay and these candlesticks tell a
story so
with that being said let's move over
here
and draw our own little candlesticks
okay
and I know you're probably thinking oh
my God I don't need to learn about
candlesticks I know you don't
okay I know you don't but this is going
to be beneficial Trust
okay
so these are two candlesticks okay let's
say
bro
how do I
okay whatever
anyways okay
ready so we have two candlesticks let's
let's uh dude I wish I could color this
thing
um
okay ready this one is going to be a
down candle
so I'll color it in like this actually
that looks terrible
forgive me we're going to make this oh
here I'm so stupid there
there we go that's a down candle
this is an up candle cool cool okay so
we're going to do a quick quick a quick
overview
of what these candlesticks represent
what the opening the close represents
what the body represents and what these
little Wicks that they leave behind
represent okay so first of all
understanding candlesticks okay we need
to understand what time frame we are
there are so many little different time
frame time frames up here that I'm
scrolling through right one minute two
minutes three minutes five minutes seven
eight whatever okay
and if you're very new you're probably
saying well what what do those things
mean that represents the time that it
takes for the Candlestick to close Okay
so if we are on the five minute chart
which we are on currently
if one of these let's write let's just
say this is an actual Candlestick within
the chart one of these candles this
candle represents five minutes
of price action of price movement okay
and the reason why these candlesticks
are so beneficial is Buzz is because we
can read and see
exactly what price did within those five
minutes with just this one Candlestick
okay oftentimes I can even be able to
understand and pretty much just guess
what is going on on one minute structure
just purely based off of a five minute
Candlestick or two five minute
candlesticks and once you get good at
this you'll understand how to do that as
well
um but
okay we're on the five minute time frame
one candle represents five minutes of
price action and market movement okay so
when we see a green candle or a bullish
candle okay we see that it goes up and
it ends right up here
okay
green means boom price went up right
everyone knows a green candle means up
in a red candle means down so in this
instance price opened right here where
the body of the candle starts and it
closed at that five minute Mark right
here okay
so
boom
right here is the open and boom right
here is the close
okay we can put this thing down oh oops
shrink
the clothes and
the open
cool cool okay now what do these little
Wicks that are left behind mean that
shows where price went during that five
minute duration of time okay but it
never ended up closing there it just
shows where price went right it left a
little snail Trail okay it's like
um
like you take a [ __ ] and you put on your
underwear and it's like super white like
brand new Calvin Klein underwear and
your [ __ ] from from a minute ago left a
little snail Trail it's showing that you
did go take a [ __ ]
um I I to be honest I don't know how
this relates to this but anyways okay it
shows where price went so that means
right if if there's a wick all the way
up here that means within this five
minute candle yes it didn't close up
here but price moved up to this point
okay and then same thing with here
okay down here was the lowest price
point that price went Within These five
minutes so now we know okay this is the
highest point it went to
and this is the lowest point it went to
okay same exact thing on a bearish
candle
okay
just slightly different okay instead the
open is up here
okay and the close is down here
okay so the close on a bearish candle is
lower obviously and the open on a
bearish candle is higher okay remember
oops
and again right up here is the highest
point that price was able to go to
okay and down here was the lowest point
that price was able to go to
perfect candlesticks [ __ ] simplified
by tjr now we can get rid of this
[ __ ]
okay now we are going to talk about
Candlestick patterns and and I know what
you're going to say you're probably
going to say whoa tjr
whoa whoa whoa whoa whoa whoa whoa whoa
what the [ __ ] I thought you hate
Candlestick patterns I do I hate the
ones the Candlestick patterns that are
based off of mountain tops [ __ ] W's
Head Shoulders that [ __ ] is BS I also
hate Candlestick patterns I really hate
every single Candlestick pattern that is
more that that contains more than two
candles
the only Candlestick patterns I like
because they can actually show you price
action and dictate where price is going
to go are the single Candlestick
patterns okay so let's look up
if this thing will load
candle stick
patterns cheat sheet
hopefully this pulls up the single
candlesticks
um okay good it has some of them on this
all right
let's pull this thing up and let's zoom
on in okay
so first of all we don't give a [ __ ]
about this entire top row okay I also
don't give a [ __ ] about anything in here
anything in here anything from here and
below I only care about doji's
long-legged doji's long-legged dojis and
doji's are the same thing okay
cross doji's and inverse cross doji's
dragonfly doji's hammers okay
those are the only things I care about
okay just this row forget about all this
[ __ ]
this is garbage okay no we don't give a
[ __ ]
all right just focus on this row right
here okay and why are we going to be
talking about this okay it's because
these candlesticks are showing price
action and showing where price rejected
and where it didn't okay so if I can
honestly just find these on the chart I
don't know why I pulled that up um but
with a candle this is just like a
perfect example with a candle like this
one right we see price opens right here
it doesn't go low right it pushes all
the way up to this point but then closes
down here
okay this candle is essentially saying
to me okay we have strong bowls but not
strong enough to close
damn not strong enough to close all the
way up here or here or here or here we
left a fat ass Wick up here meaning it
was not strong enough to close above
whatever was residing above here and
more than likely it was taking this
liquidity
okay
so
right we knew that price pushed up close
still bullish
but there was weakness because it
couldn't finish out this candle right
now
let's find another example okay
um
right here okay similar situation but
with a doji usually doji's which are
just small bodies of candles okay so
when a candle looks like this
doji's are great for reading price
action okay it's usually small body long
Wicks or just just small body of a
Candlestick in general okay
looks like this okay something like that
of some sorts okay probably not that
long of candles of Wicks but you know
what I get you know what I'm getting at
anyways doji's are great because they
can show us indecision in the market and
indecision with a bias in One Direction
okay so when we see this bearish doji
right we're obviously not taking a trade
off of this but we need to be able to
read the candlesticks right these are
these small things that that intuition
can build that that experience builds by
being able to see and read these
candlesticks when most people aren't
able to do that most people are saying
liquidity was swept we broke structure
but you guys can't even read these
candlesticks you don't even understand
what these are saying to you and they're
telling you a lot of information
okay so this Candlestick in particular
right we see Boom Big sell-off down here
okay and then we get to this candle okay
we get long Wicks to the downside
but not a full body close right we don't
see a a a big body close to the downside
means we're losing bearish momentum okay
and as you can see we did lose it we
start consolidating pull up a little bit
higher and then nothing [ __ ] happens
after that right so we lost bearish
momentum with this candle we can see
that through the long Wick to the
downside and then it failing to close
lower in a regular sized candle right
this is a doji this is showing
indecision within the market
okay
again right we we we see the long
extension of a wick to the upside all
right showing that hey you know we we
pushed all the way up here but we failed
to close above here right
we failed to close above these price
points and then what happened we fell
okay but this is not something you take
a trade off of this is just slowly
learning and understanding okay these
candlesticks and what they're trying to
tell you okay let's go over to gold gold
can give us
um some some great momentum some great
volume and also shows us some great
Candlestick patterns okay
let's go to the Daily
where are we at
huh
okay
right here okay this is a great example
okay we push up we come down okay yes we
formed a bullish doji
right this is a doji candle however
right
we've we failed to push up completely
yes we see strong rejection to the
downside and yes we do see closures to
the upside okay this is why we cannot be
taking
trades purely off of Candlestick
patterns because this this is only one
confluence
okay yeah we see boom super strong
rejection to the downside with this Wick
and then we close bullish still right
but we're in a downtrend we are
continuously breaking structure to the
downside
okay
so that's an example of where we can't
we can't let our bias get [ __ ]
get lost in these patterns okay the
these are very very minimal in what you
need to trade but it is good to
understand and to know and to learn
these if you don't know them already
they're fairly simple you really just
have to know right a [ __ ] strong
close which is what literally a regular
Candlestick looks like to you so like
this candle for example is a just a
strong close right it's full
it's full it has not many not a high
Wick
um to the upside if anything a highway
to the upside on this candle would be
even more of a reason for it to be a
strong close and then also right the the
wick to the downside is fairly small
again compared to the body right so we
had a move to the downside and we were
able to close and continue down right
and it wasn't just
a wick to the downside and then I move
back on up showing weakness
okay
let's just keep going through and
spotting these on um on the chart
okay again right this candle
this is a great
wow great example of something of of
something where like we see liquidity
get swept in almost like a confirmation
candle
okay right we see this long long Wick to
the downside price
at one point remember guys we have to
understand that price was opened here
so at one point in time during this week
price was literally a big
red candle
from this point down you PR right
everyone probably thought this [ __ ] is
going to the floor
right because and this is where like
your head headspace can [ __ ] get [ __ ]
up because people get so caught up in in
the candle that's forming and not the
candle that has formed okay we can only
make bias and decision on candles that
have formed not candles that are forming
okay that's why we always wait for a
close for a break of structure
right we have to wait for that
Candlestick to close because right it's
not an actual candle until price action
is done within you know whatever time
frame that we're on
okay so this candle for example we get a
strong rejection to the downside right
price pushed all the way down here but
then nope was able to first of all opens
down here comes all the way down here
and then rallies all the way back up to
this point and closes up here
that is a very very strong bullish
candle right we see
massive Wick to the downside tiny Wick
to the upside meaning it literally
closed almost as as bullish as it could
have right on on most bullish candles
you're going to get some sort of Wick or
and on most bearish candles you'll get
some sort of Wick
um to the top side or to the downside
but when it closes so fully like this
with a strong rejection to the downside
that is telling you
a bunch that's telling you a thousand
words right that candle is is telling
you exactly where price wants to go okay
what does price end up doing rallies
higher takes out these highs Etc
okay
so
this is all that I want you to do for
today I know today boring as [ __ ] boring
as hell you're probably like what the
[ __ ] but
right we're starting from the beginning
we're starting from Clear slate okay
trust me we're going to bring you guys
up with this and it it'll go it'll get
going a lot quicker than you think okay
so
price
or sorry all that I'm asking you to do
is get on whatever chart you trade okay
whether it's SPX g-u GJ whatever okay
get on whatever pair that you trade okay
get on whatever pair that you trade
and just spot these and see how Market
reacts like literally just being on this
chart I can I can see two
boom massive Wick rejection to the
downside still not a good close but what
happens next we do get a full bullish
close boom rallies takes out these highs
right okay
similar to this right we have a doji
long candle or sorry long Wick to the
downside bullish clothes right here to
the upside right we can use these two in
Confluence together
right we have this full candle and then
this doji with a big wick to the
downside showing rejection after several
weeks of of Doubt of being down right we
can show exhaustion through the dojis
okay and then we get boom closer to the
upside price rallies takes out these
highs so all that I want you to do
again strong look to the downside full
close rallies
so all that I want you to do is get
whatever choose whatever pair you trade
okay
um and just look for these and see how
price reacts off of these certain price
points okay find at least 10 examples
okay this is your homework all right
find at least 10 examples
of these doji candlesticks okay
understanding Wicks within the market
right there's there's a saying Wix don't
lie and I think I literally think
there's someone that teaches
on uh like YouTube or Instagram named
Wix don't lie I'm I may be wrong though
it may be fibs don't lie I don't know
but Wix do not lie Wix and candlesticks
tell the whole story
okay of price action no we do not care
about a [ __ ] Mountaintop look how
that [ __ ] played out [ __ ] horribly
right you got stopped out we don't give
a [ __ ] about mountaintops we care about
price action okay
and that is what we were going to be
studying this literally this entire
course okay so with that being said
that's your homework okay very very
short lesson today but essential okay in
on in in in in you know slowly gaining
that [ __ ] market experience that I
know you guys need and want
okay
um and honestly these are going to be
the lessons that are more important for
you guys because this is [ __ ] that you
guys probably brushed over and don't
think about too often so
um homework is fine 10 examples of this
bro
homework is fine 10 examples of this on
your own pair on your own chart that you
trade okay
take screenshots of it
um [ __ ] label them do whatever you
need but not only do I want you to find
examples of this on the chart but find
how price ended up reacting off of these
examples okay and that will give you a
better understanding of candlesticks
okay the closes of candlesticks how
Wicks work in this market okay Wix tell
tell so much of a story within this
Market these candlesticks tell tell the
entire story of this Market okay so if
you cannot understand candlesticks you
won't be able to understand the market
because we have to read these things
these things are telling us a story and
we have to be able to read them and
dissect them and understand them
so with that being said
that is day two super short day we're
starting off slow this is like syllabus
week right we'll we'll start you off
with the easy [ __ ] and then we'll get
into the difficult stuff okay so find 10
examples of that and then I'll see you
tomorrow all right peace