[00:02] winning or losing, you need to understand why the price moves. You need to understand how to read this movement with your own eyes, without anyone explaining or analyzing it for you. The easiest and clearest method, the one used by all traders worldwide, is reading Japanese candlesticks. These candlesticks aren't just a drawing or a visual representation; they
[00:16] simply tell the story that unfolds every minute, every hour, every day. The candlestick you see on the chart contains a complete battle between buyers and sellers, filled with fear and greed, hesitation and
[00:28] impulsiveness, and surrender. Each candlestick tells you the story of the price: did it try to rise and fail, did it fall and then recover, or was there a major struggle that ended with a different outcome? Frankly, someone entering the world of trading without understanding candlesticks is like someone driving a car without knowing what brakes are. This video is made for you.
[00:42] I'll explain everything from the ground up: what candlesticks are made of, what they tell you, and how they can be the reason you enter a successful trade or save you from a losing one. So stay with me.  Watch the video to the end because after this video you will look at the condition in a completely different way and you will understand for the first time how the price speaks. And be
[00:59] aware that the information in this video can not only be applied to the cryptocurrency market, but you can also apply it to the stock market. The first step to understanding is to know what a Japanese candlestick is. A Japanese candlestick is simply a method that displays the price movement of any
[01:13] asset, whether it is a currency or a stock, during a specific time period. So if you have the condition open on the hourly timeframe, then each candlestick you see here represents what happened in one hour. And if it is on the daily timeframe, then the candlestick represents a whole day. And the candlestick is not a decorative drawing, it is a tool that summarizes the price for you. Where did the price start
[01:29] from?  How did I move during this period and where did it end?  That's why we say that Japanese candlesticks are the simplest and clearest way to see price movement and understand market behavior firsthand. Now that you understand what a Japanese candlestick is, let's delve deeper and see exactly what it's made of and
[01:45] how each part provides different information about price movement. So, let's break the candlestick down piece by piece and see how it transforms from numbers into a visual representation. Every candlestick is made up of four basic prices: the opening price (high), the closing price (low), and the closing
[02:02] price (low). The opening price (open) is the first original price at the beginning of the period. For example, on an hourly timeframe, this is the price at the first minute of the hour. The high is the highest point the price reached during that period, even if it only
[02:16] touched it briefly before falling back down. The low is the lowest point the price fell to during the same period.  The period and closing price (the close) represent the last price before the period ends and a new candle begins. Here's an important point to understand: candles aren't separate; they're
[02:33] like a chain, each link connected to the next. When a candle closes at a certain price, the next candle opens at the same point. This means the closing price of one candle is the same as the opening price of the next. Therefore, the condition you're facing isn't a series of separate images, but a
[02:48] single, continuous story. The price flows seamlessly from one candle to the next without interruption. However, be aware of one crucial difference between crypto and stocks: in the crypto market, or digital currency market, the market operates 24 hours a day without interruption, so the price continues continuously. This is exactly what happens.
[03:04] But in stocks, the market closes at night and on holidays. A stock might close at one price today and open at a different price tomorrow due to news that occurred while the market was closed. The difference that appears between the closing and opening prices is...  We call it a gap or a divide. The important thing is that the candlestick ultimately presents
[03:18] or a divide. The important thing is that the candlestick ultimately presents you with a shape consisting of a body, a wick or shadow, and a color. The body is the wide part in the middle, which simply represents the distance between the opening and closing prices. If the candle is bullish, the opening price is below and the closing price is above, meaning the price rose during that
[03:31] period. If the candle is bearish, the opening price is above and the closing price is below, meaning the price fell during that period. So, just by looking at the body, you can tell whether the period was predominantly bullish or bearish, and whether the difference between the opening and closing prices was large or small. The
[03:46] thin lines above and below the body are called the wick or shadow. The upper wick shows you the highest price the market touched during that period, and the lower wick shows you the lowest price. A long wick means the price reached a certain level but couldn't hold it; it either rose and was rejected
[04:03] or fell and then rose again. As for the color, it's the quickest way to read information. A green candle means bullish, and it means the closing price...  Higher than the opening price, buyers were stronger, and a red candle indicates a decline, meaning the closing price was lower than the opening price and the remaining buyers were in control.
[04:19] Simply put, the body tells you the difference between the beginning and the end, the wick tells you how far the movement has progressed, and the color tells you who won the battle during that period—buyers or sellers. Now that you understand the complete anatomy of the candle— body, wick, and color—you've finished the most
[04:34] difficult part. But let me tell you something important: all of this is just the beginning. A good trader doesn't look at a single candle and say, "Okay." They look at the candle's shape, size, position on the chart, and what precedes and follows it, and they read a complete story from all of this. To reach this stage, you must understand two
[04:50] important things: first, what a single candle tells you about the strength of the market; and second, when candles you about the strength of the market; and second, when candles come together, they form patterns or designs that give you a signal that the market might continue or reverse. Let's go through it step by step. Since you've made it this far,
[05:04] I hope you'll subscribe to the channel and activate the bell icon to see past and upcoming videos. Also, please like the video so it reaches as many people as possible and everyone can benefit. Before I explain what patterns are, understand this rule
[05:16] well. If you understand it, you'll be able to read any candlestick without needing instructions. A large body represents strength and a clear direction, meaning a group of buyers or sellers was dominant from the beginning to the end of the period. A small body represents hesitation and weakness, meaning the two sides were at odds and the conflict ended at roughly the
[05:33] same point. A long wick represents rejection; the price reached a certain area, but the market refused to hold there and pushed it back. Memorize these three rules because almost all the upcoming patterns are based on you. To make things easier and prevent confusion, I've divided the patterns I'll
[05:48] tell you about according to the number of candlesticks they consist of: candles, and the more candles there are, the clearer and stronger the signal becomes. Let's go through it step by step. The
[06:01] first section we'll discuss in Japanese candlestick patterns is single-candle patterns. These are the simplest patterns and tell you about the market situation or give you the first hint of a reversal. The first pattern is the Maraboso. The Maraboso is a very large candle with no zeolite core, or you could say it's
[06:18] green. The price opens very low and closes very high, meaning that buyers dominated the period from beginning to end without sellers having a chance to compete. If it's red, the opposite is true: sellers dominated the period from beginning to end, and the price opens very high and
[06:33] closes very low. In short, the Maraboso means that a bullish force completely controls the market during this period. The second pattern is the Doji. The Doji is a candle with a very small body, almost invisible, and it's characterized by the opening and closing prices being almost the
[06:47] same or very close.  Some of the wicks are rising above and below, and this candle reflects a state of hesitation or equilibrium. It tells you that buyers and sellers fought fiercely, and in the end, neither won. The Doji alone isn't a strong directional indicator, but its location sometimes makes all the
[07:02] difference. If it appears after a long rise, it could be the first sign that buyers are tired, and if it appears after a long fall, it could be the first sign that sellers have exhausted their energy. In short, the Doji doesn't tell you to buy or sell; it tells you to wait, as the market hasn't repeated yet. The third pattern we have is the
[07:16] Spinning Top, which is a candlestick similar to the Doji, with a small body and wicks that are almost equal above and below. The difference is that here there was a real movement— up and down—but in the end, the price returned close to the starting point. In short, you can say that it's like the Doji; both are hesitation signals, but the
[07:31] Spinning Top shows you that there was a real struggle before the breakout, so it's considered a hesitation signal. The market paused to consider, so don't rush into a decision. And in the middle of the video, I'd like to tell you two important things if you're interested.  You're trading on a cryptocurrency and stock platform, and it's very important. You can register on the
[07:46] Binance platform using the link below in the video description, and you'll get a 20% lifetime discount on the platform's commission. If you want a tool to help you with the Sharia rulings on cryptocurrencies and technical analysis, you can use Nuwaa. You'll
[08:03] Imagine the market has been declining for a while, and suddenly a candle appears with a small body at the top and a very long wick at the bottom (ideally at least twice the body size), and a small or nonexistent upper wick or wick. What happened here is that sellers pushed the price down sharply, but buyers entered
[08:19] and bought aggressively, pushing the price back up before the candle closed. The market tried to fall further but refused. The Hammer candle usually appears at the end of a downtrend and indicates that the market might reverse from a decline to an upward trend. In short, the Hammer candle after a decline is the first sign that the market...  The
[08:34] fifth pattern we have is the Hanging Man, or the man (I don't want to say the word). This is exactly the same shape as the hammer: a small body at the top and a long tail at the bottom. The difference is in the location. The hammer appears after a drop and gives a bullish signal, while the man appears after a rise and gives a
[08:50] bearish signal. In short, it's the same shape as the hammer, but when it appears after a rise, it signals that the market might reverse downwards. The sixth pattern we have is the Shooting Star. The Shooting Star candle has a small body at the bottom and a very long shadow at the top. Simply put, buyers pushed the
[09:06] price up strongly, but sellers met them at the top and brought the price down again before the close. That's why the at the top and brought the price down again before the close. That's why the
[09:18] In short, when the Shooting Star candle is at the top, it signals that sellers have started to respond, so be careful.  The seventh pattern is the Inverted Hammer, a candlestick pattern shaped like a shooting star with a small body below and a long tail above.
[09:34] It appears after a decline, so it's a potential bullish signal. The
[09:46] sellers managed to bring the price back down before the close, the mere fact that buyers started pushing upwards after a long decline is, in itself, promising. Therefore, it's a potential bullish signal, but still weak on its own. In short, you can say that an Inverted Hammer after a decline equals
[10:02] the probability of a bullish reversal, but wait for the next candlestick for confirmation. Now we move on to the second section of Japanese candlestick patterns, the two- candle pattern. Here we look at two candlesticks together, so the signal is stronger than a single-candle pattern. The first pattern we have is the Engulfing Pattern, which
[10:16] consists of...  There are two types of engulfing patterns: bullish engulfing and bearish engulfing. A bullish engulfing pattern appears after a decline, showing a small red candle followed by a large green candle that engulfs the entire body of the red candle. This means buyers entered strongly, erasing all the gains made by sellers
[10:30] in the preceding period. A bearish engulfing pattern is the exact opposite: after an uptrend, a small green candle appears, followed by a large red candle that engulfs it. This signifies that sellers have entered and taken control of the market. In short, engulfing is one of the strongest reversal signals, bullish
[10:45] after a downtrend and bearish after an uptrend. The larger the selling candle, the stronger the signal. The second pattern we have is the Harami, which is the opposite of the engulfing pattern. It shows a large candle followed by a small candle within the body of the first candle. The story here is that the market was moving strongly in
[11:00] one direction, then suddenly the movement slowed down, and a small, hesitant candle appeared within the larger candle before it. The momentum had stopped and was catching its breath.  The same strength, and the Japanese word "Harami" means "bearer" because the smaller candle looks like the one inside the larger one. In short, the Harami isn't a
[11:15] strong reversal signal, but it alerts you that the current trend is starting to lose strength. The third pattern is the Tweezers, which consists of two types: the Bottom Tweezers and the Top Tweezers. The Bottom Tweezers appear after two candles have fallen, and their lower wicks touch approximately the same level.
[11:31] The story here is that the market tried to fall to the same point twice and refused both times. There was a wall below that it couldn't break, so it bounces back up. The Top Tweezers are the exact opposite; they appear after an uptrend where you have two peaks at the same level. The market has climbed to the same ceiling twice and couldn't break through it, so it bounces back
[11:48] down. In short, the Tweezers tell you that the market tried to break a certain level twice and failed, so there's a probability of a reversal. You could say it's rising at the bottom and falling at the top. The third section of Japanese candlestick patterns we have is the Three Candlestick Pattern, which is often the clearest and
[12:03] strongest reversal signal.  The first of these patterns is the Morning Star and Evening Star. The Morning Star is a bullish reversal pattern that usually appears at the end of downtrends and indicates that the market may be about to reverse to an upward trend.
[12:17] It consists of a large red candle that reflects the sellers' control, followed by a very small candle that expresses hesitation, and then a large green candle that shows that the buyers have regained control. The market had fallen, hesitated, and then rose again. As for the Evening Star, it is a bearish reversal pattern that usually appears
[12:33] at the end of uptrends and indicates that the market may be about to reverse to a downtrend. It consists of a large green candle that reflects the buyers' control, followed by a very small candle that expresses hesitation, and then a large red candle that shows that the sellers have
[12:48] regained control. In short, you can say that the Morning Star is a bullish reversal after a fall, and the Evening Star is a bearish reversal after an rise, with the small candle in the middle being the moment of sensing. The second pattern is from the patterns  The Three Candles pattern consists
[13:04] strong green candles in a row, each closing higher than the one before it. This indicates that buyers are firmly in control of the market. The Three Red Crows pattern, on the other hand, is the opposite: three strong red candles in a row, each closing lower than the one before it. This indicates that
[13:19] sellers are in control. In short, the Three Soldiers is a strong bullish signal, and the Three Red Crows is a strong bearish signal. Three consecutive candles confirm that the movement is stable and not just a momentary fluctuation. Now that you know all these patterns, let me warn you against the most dangerous mistake
[13:33] beginners make: a single candle is not a buy signal. Don't see a hammer in the middle of a pattern and immediately buy. A hammer in the middle of nowhere has no value. However, if the hammer is at a strong support level after a drop and there is confirmation, then that's a completely different story.  Another important point to
[13:48] note is that the candlestick pattern tells you what happened, but it doesn't tell you how strong the movement was. The measure of this strength is called volume, which is the trading volume, or simply the number of people who bought and sold following the movement. A engulfing or hammer candlestick with
[14:03] high volume indicates a movement with significant volume and genuine conviction, making the signal stronger and more reliable. Conversely, the same candlestick with low volume indicates a questionable movement that could be just a temporary fluctuation or a trap. Consider volume as the candlestick's indicator; the pattern tells you what happened, and
[14:19] the volume tells you how strong it was. Volume is a very important topic and deserves a separate, detailed video explanation. So, make sure you're subscribed to the channel. The key point is that patterns work when combined with the overall market trend,
[14:33] support and resistance levels, and the timeframe. A candlestick on the daily timeframe is much stronger.  From a candle on the minute or hourly timeframe, and confirmation from the next candle, candles are like words. A single word doesn't give a complete meaning on its own, but when these words are combined into a sentence and within the context,
[14:48] then you understand the whole story. This is precisely the skill of a professional trader—not just memorizing patterns, professional trader—not just memorizing patterns, but also reading the whole story. And that's all. but also reading the whole story. And that's all. Peace.