Trading from Scratch: Full Breakdown & Transcript

[00:02] charts? What does each of these stripes mean? Why is one thick, another thin, why is one long, another short? When and who decides that one stripe should turn into another and also change color? I broke down all these elements into molecules and

[00:18] in this video I will show the meaning of each small detail and how to use it to make money on trading. Let's start with these multi-colored stripes called Japanese candles. What is it? A Tae Japanese candle is, first of all,

[00:32] information about how the price of an asset behaved over a certain period of time. For example, if we open a daily chart, then one candle will represent the price movement for one day. Often, candles are shown in these

[00:46] two colors: green and red. But what is the difference between them? If the price of an asset at the end of the day becomes higher than at the beginning of this day, a green candle is formed, which tells us that the asset has grown, which means that buyers were stronger than

[01:02] sellers. Similarly, a red candle, if the price at the end of the day becomes lower than the price at the beginning of the day, this means that sellers were stronger than buyers, and for understanding, we We can look at the chart not only for one day, but also for 15 minutes

[01:16] or any other period. The principle of operation is the same as the scale on Google maps. You look at the same area, but just from a different distance. But why do most traders use Japanese

[01:28] candlesticks? Everything is very simple. This is the best tool for understanding price movements. A tool for understanding price movements. A candle consists of two parts: a shadow and a body. The end of the upper shadow shows us the maximum price, and the end of the lower shadow

[01:42] shows us the minimum price for the selected period. With the body of the candle, things are a little different. For a green candle, the lower part of the body is the opening price, the upper part is the closing price, and for a red candle, on the contrary, the upper part

[01:58] is the opening price, and the lower part is the closing price. But is this really enough to understand the chart in a basic way? No, but before getting to the heart of the matter, we need to figure out what actually influences price movement up

[02:14] or down and fully understand and analyze for ourselves two basic concepts. Without this for ourselves two basic concepts. Without this base, there is no point in looking at these charts at all. So, why does the price rise or fall? For example, I want to sell my

[02:28] bitcoin for 40 thousand dollars. I place a sell order on the exchange. This is clear. It looks like this, this is a list of all orders actually for sale, other guys see that people are selling Bitcoin at 40,000 dollars and it is

[02:41] sold, then they set the price for their Bitcoin a little higher, for example, for 40,100 dollars, and at the same time someone buys again, which means the next guys set the price even higher. And even more, this is in

[02:53] fact a clear demonstration of supply and demand, that is, sellers continue to raise the price while there are buyers who are ready to buy at this price and vice versa, the same principle, but you must understand that this is a greatly

[03:07] simplified scheme so that we basically have a picture of how it works in general. Here are such simple analyses of basic tools and the best ways to make money on crypto, I show in my free Telegram channel

[03:19] recently. There was a post about a tool that gave me plus 40% profitability per month on absolute passiveness. I leave the link in the description, but let's get back to charts and candles. The first concept is a large candle body. Here we must understand

[03:33] that the body of a certain candle shows us strength or weakness of buyers or sellers for example Here we have two green candles the candle on the left has a large body and relatively small shadows the price opened here at the beginning sellers

[03:49] tried to push the price down but they turned out to be very weak as buyers quickly intervened and pushed the price higher then buyers were able to cover a long distance without pressure from sellers as a result the price

[04:03] closed very close to the high this shows us that buyers were significantly stronger than sellers during this candle in the second candle is a completely different story the price opened here and buyers started to move the price up to a

[04:18] new high but at the top sellers intervened and sent the price down sellers were powerful and almost completely covered the distance back to the opening price but buyers were barely able to close the price above the opening in this case we see that

[04:32] buyers were stronger than sellers but the difference in their strength was insignificant but what if the body of the candle is relatively larger than the shadows it shows that either buyers or sellers were in control of the situation on the other hand when the body is smaller than the shadows

[04:48] it indicates that there was much less control from both sides and it was a tough rivalry between buyers and sellers concept two - large shadows of a candle when we notice a large shadow above or

[05:01] Below the body, this gives us an important clue regarding the price movement. What does it mean? If we see a large shadow above the body, this means that sellers are selling strongly at these levels, and for the price to rise, buyers will need a lot of

[05:17] effort. Similarly, if we notice a large shadow below the body, this tells us that buyers are buying strongly at these low levels. If sellers need to lower the price, they will have to overcome these buyers. The concepts of body and shadows

[05:31] are key to understanding the basic patterns of Japanese candlesticks. Now let's move on to the main question of trading: when to buy and when to sell. To answer this, we need to know the basic patterns, that is,

[05:44] behavior patterns. This is like a green and red light for a driver. For the first time, for training, it is better for you to have a person who can confirm or refute your hypothesis about buying or selling. This is precisely why we have created a

[05:56] closed AGMI club where we give clear recommendations on what to buy, what to sell, and when to do all this. Moreover, it all works both on spot and on futures, and naturally, everything is with curators who will answer any question at any time.

[06:10] the number of participants. The price is growing, but now let's master these patterns and tune in immediately to the fact that some patterns you will need to review two or three times to understand, that is, you can safely rewind, listen again until

[06:25] the picture in your head. Aha, this is how pattern number one works, the cha pin bar or cha candle is a strong reversal pattern of Japanese candlesticks that indicates a potential upward reversal. Such a candle consists of three elements: a small

[06:40] consists of three elements: a small green body, a large shadow under the body and a tiny or absent shadow above the body. How can we explain everything that we just saw? The price opened approximately in this area and immediately sellers

[06:53] tried to lower the price. They were able to lower the price, but at some point, lower prices caused buy orders from buyers. Buyers were significantly sellers tried to bring down the price, but buyers intervened and raised the price above

[07:09] its opening. How can this be useful to us in real life? If a pin bar appears after a strong drop, this indicates that sellers have lost their strength and buyers are now intervening to move the price up.

[07:23] consider other factors to confirm our opinion. We will discuss this later, but if we We find an opportunity to buy such an NBA, we can place a buy order above the NBA high, set a stop-loss below the

[07:37] pin bar and target the next resistance level, pattern number two is a bearish pin bar or bearish candle, a bearish pin bar is the opposite of what it is, a red candle with a small body, a large shadow above the body, and a tiny or

[07:52] absent shadow below the body, indicating a downward reversal, now let's figure out what this means, the price opened here and buyers began to move it up, they covered some distance and created this maximum, then

[08:06] sellers began to sell and pushed the price down, moving below the opening price, sellers managed to keep the price below the opening price, and the candle closed near its lows, at the moment, sellers gained an advantage over buyers,

[08:20] if we find another confluence at this point, we can place a sell trade below the pin bar low and keep a stop-loss just above the pin bar. If you still don't fully understand how to trade technically, that is, which

[08:33] buttons to press and where. What is stop loss and Take Profit, then be sure to look This is a video where I show how to trade futures on bybit. I left the video here in the tips and a separate link in the description. I believe

[08:47] that bybit is the best exchange at the moment. It is for this task that when you register using my link, you receive up to 30,000 bonuses for trading. The link is in the description. But let's get back to the patterns. The third pattern is the Dod pattern. The Dod model is

[09:01] the only candlestick pattern that does not give us information about where the price will go, but it is important to understand it. It is characterized by a candle with approximately equal shadows above and below a small body. The opening and closing are

[09:14] somewhere in the middle of the candle. And the body of the candle is very small, this shows that buyers and sellers were not much stronger than each other during this period. Does the Dod candle tell us anything? No, it can only indicate a

[09:28] short pause in the movement. But if we see several Doji candles in a row, this tells us that buyers and sellers are fighting for victory and there is no clearly winning side. In such a situation, the price usually makes a sharp

[09:42] movement in any direction. Now let 's move on to intermediate patterns that consist of Two candlestick pattern 4 bullish engulfing this model consists of two candlesticks in which the green candle completely engulfs the red one before it, in simple

[09:57] terms, first we see a red candle, then a green one, while the maximum of the green candle is higher than the maximum of the red one. Similarly, the minimum of the green candle is below the minimum of the red one. What happened outside

[10:10] the chart? The sellers controlled the situation during the red candlestick when a new candlestick opened, the price fell and broke the previous minimum, and suddenly buyers intervened, they overcame the sellers and raised the price above the previous maximum,

[10:23] and buyers covered a more significant distance than sellers. This means that the buyer is now in control of the situation and is ready to raise the price higher to enter a trade on a breakout of the

[10:35] maximum, we can again place a stop loss below the minimum of the candlestick pattern number p Bearish engulfing Bearish engulfing is in fact a model of two candlesticks in which the red candlestick completely engulfs the green one, the minimum of the red candlestick is

[10:49] located below the minimum of the green candlestick. Similarly, the maximum of the red candlestick is located above the maximum of the previous candlestick. What does this mean? At first, the buyers controlled the price because the price was moving up, then when A

[11:03] new candle opened, buyers tried to push the price up. They managed to break above the high of the previous candle. Then the sellers saw this high as an opportunity to make money and began selling. Their pressure was

[11:16] so great that they managed to lower the price below the previous low. The sellers have come a long way compared to the buyers, and now the sellers have seized control of the market. Therefore, we can place a sell trade below

[11:30] the low of this candle, and we can set our stop-loss above the high. Now let's move on to advanced patterns. Pattern number six is ​​the Morning Star. This pattern consists of three candles that indicate a bullish reversal in price. The first

[11:45] candle is a strong red candle with a fairly large body. The second candle is a doji with a small body and large shadows. Here, the doji candle can be green or red. We also have a large green candle that reaches

[11:59] above the high of the dodge candle. The sides of this candle will determine the strength of the pattern. If the green candle is the same size as the red one, then this is a good trading opportunity. If the green candle is smaller than the red one, this is a low-probability trade.

[12:15] Finally, if the green candle closes. Above the red high, this is a strong reversal candle and now let's move on to the psychology of this pattern. First, we have a red candle, this shows us that sellers

[12:27] were in control of the market, they pushed the price down, then buyers intervened and pushed the price up, then the sellers completely lost the competition and buyers raised the price higher, creating this green candle. Buyers changed

[12:42] the situation and will now likely see an upward movement. How to make money on this model? To enter a trade, we will place a buy order above the high of the green candle. We will keep the stop loss below the candle. Dod pattern number se evening star star.

[12:58] It is the complete opposite of the previous pattern. Here we see a pattern of three candles where the first candle is green with a significantly larger body, then we have a small Dodge candle with a small body and we

[13:12] have a red candle with a large body. The psychology of this pattern tells us that initially buyers were in control of the situation, creating a green candle, then sellers intervened and began to challenge buyers, as a result, we see a

[13:26] Doji candle. What does the Dodge candle indicate to us? Buyers, sellers, as it were. There 's a tug of war and then the sellers win the battle and start to push the price Here we place a sell trade below the high and set a

[13:42] below the high and set a stop loss above the doji candle.