Candlestick Pattern and Potential R PDF

Market Trends and Pullbacks When the market is pushing up, most people take their profit as their position increases, but some people close their order and want to get in again to go up, requiring knowledge of where the market will stop and turn around (00:00:57). The market doesn't move up in a s...

Market Trends and Pullbacks When the market is pushing up, most people take their profit as their position increases, but some people close their order and want to get in again to go up, requiring knowledge of where the market will stop and turn around (00:00:57). The market doesn't move up in a straight line, but rather with pullbacks, and on a one-hour time frame, the highs and lows would be larger (00:06:17). To make money, one wants to get in at an area where price is going to continue or where price is going to begin to go down, and shorting is making money on the downside when the price is going down (00:07:22). On lower time frames like the one-minute or five-minute, there are more opportunities to be right or wrong about a pullback or reversal, but on higher time frames like the 15-minute, there are fewer and slower opportunities (00:11:41). When the hourly time frame is pulling back, one can place a buy when price comes back to the area they're looking to buy from and take profit as it increases (00:14:11). The market's trend is determined by a series of highs and lows, with an uptrend having higher highs and lows, and a downtrend having lower highs and lows (00:20:23). Trading on lower time frames can provide multiple opportunities to take a position to buy or sell during the day (00:19:15). The hourly trend is the higher time frame, and it has been going up for hours, sometimes days or weeks, depending on the time frame being looked at (00:24:20). Demand and Supply Zones The demand area is located at a particular point where the market reversed, and it's where price originally came from (00:28:08). Knowing where the market is going to begin to go down allows for entering a short position to make money while it's going down (00:32:09). The area that the market came from is the deciding factor in determining whether the market will continue down or not (00:33:17). In a downtrend, there are more opportunities to find a position to go down than to go up, but there are still opportunities to go up (00:37:33). The market structure consists of a series of highs and lows, and traders can get involved in a trade going up or down to make money, but they need to know where and for how long (00:39:11). Traders should look for areas to get in for a short or long, buy or sell, depending on the time frame, and there are multiple opportunities to buy and sell on different time frames (00:40:35). Supply and demand areas on a lower time frame are the highs and lows, but when the market is going up, the supply is a previous high that price will touch and react from before going down (00:47:40). Traders can look to sell or short the market when it touches a previous high, which is the supply area, and get into a short position to make money (00:51:47). A sell position is taken to try and sell the market down, with a stop loss set at the area where the trade would be closed if it starts losing too much (00:53:56). The best places to get involved in a trade are at areas of Supply or demand, where the market is likely to react and change direction (00:58:20). The supply is always above a former High, and the demand is always below a previous low, and traders should only look to buy and sell from those areas (01:04:07). Trading in Downtrends and Lower Timeframes When price is heading down, it can create multiple demand zones on lower time frames, but the overall trend from the higher time frame should be considered when making trading decisions (01:06:59). In a downtrend, traders can buy temporarily in specific areas to get a little bit of profit and get out, but should be aware that price can go straight through these areas if the overall trend is short (01:08:24). Price makes highs and lows throughout the trading day, regardless of the direction it's moving, and a trader should not chase price going up or down (01:10:40). Demand zones on lower time frames, such as the one-minute and five-minute charts, are weaker than those on higher time frames, such as the one-hour and 15-minute charts (01:12:04). A trader should look for a particular candlestick pattern to confirm a buy signal when price reaches a demand zone on a higher time frame (01:13:26). Long-Term Trading and Market Influences The goal of a trader is to identify areas where price will continue to go up or down from, and hold a trade for a longer period of time (01:16:40). Price movements can be influenced by various factors, but ultimately, the market moves in a way that creates opportunities for traders to buy or sell (01:20:07). A trader should look for opportunities to buy or sell when price reaches a demand or supply zone, and use multi-timeframe analysis to confirm the trade (01:15:25). The hourly demand zone is an area where price is likely to reverse and go up, and a trader can hold a trade for a lot of points from this area (01:17:22). Market Analysis and Examples Bill Gates is mentioned as an example of someone who has to report their financial moves, and traders can look into financial reports to understand market movements (01:21:10). The demand for something is weakening, but people are still buying, causing prices to go up, even when they pull back slightly (01:25:50). A healthy pullback and continuation above a certain level can indicate a bullish trend, but if the market breaks down, it may be a sign of a downtrend (01:32:01). Supply and Demand Zones and Reversals Areas of supply and demand are crucial in determining where prices may reverse and continue, and these areas can be used to buy or sell (01:36:07). When a demand zone is created on a lower time frame, it doesn't mean prices will necessarily go down to that zone, as they can stop and continue higher (01:36:59). A series of highs and lows coming down can indicate a reversal, and if there's enough demand, prices can put in a new high (01:40:25). When prices reach a demand zone, they are expected to go higher, and a sign of this is when prices go above an old high (01:43:01). Multi-Timeframe Analysis and Entries The market is structured using multiple supply and demand areas, with larger movements coming from higher time frame ones (01:45:46). There are smaller areas of demand and supply on lower time frames, such as the one-minute trend, which can provide entries for quicker moves (01:48:48). Entries should be based on the market flipping at previous demands, not in the middle or after price has tapped and is running up to take out the high (01:51:14). Stop losses should be placed behind the zone being traded from, and the target is potentially the new high (01:52:50). Market Cycles and Scalping The market's cycle involves a series of highs and lows, and price often retraces near former highs before continuing up (01:56:13). To get involved in the market, one can get involved in a quick scalp going down, but it's risky and should be at an area of supply (01:56:40). When going up, one can get involved in any side of the market, but must know where they are and the current trend market structure (01:57:08). Market Structure and Common Pitfalls The market moves in a specific structure, with highs and lows forming within certain time frames, and understanding this structure is key to making informed trading decisions (02:00:25). A common issue for traders is being on the wrong side of the market, often due to not knowing where former highs and lows are, and a violation of these levels can indicate a trend change (02:00:58). The market often pulls back and continues to pull back, and it's in these pullbacks that traders can find opportunities to enter the market in the right direction (02:06:46). There's a common pattern where the market pulls back four to six times before reversing, and the seventh pullback often fails, indicating a potential trend change (02:02:46). Traders should focus on understanding market structure rather than relying on support and resistance levels, which can be misleading (02:11:05). The market does not run on support and resistance, but rather on zones that can be called support and resistance, and traders should look for entries from these zones rather than above or below a particular range (02:11:30). Advanced Market Structure Analysis Market structure is explained using lines to show supply and demand on multiple time frames, without the use of candlesticks (02:14:59). The goal is to identify areas with small stop losses and risks, allowing for more precise trades and better capital preservation (02:18:35). Multi-timeframe analysis is key to achieving this, and will be explained in more detail in the next video, along with how to identify supply and demand using candlesticks (02:17:02). Education and Community The importance of getting an education and being smart in the markets is emphasized, rather than just working hard (02:19:50). The speaker invites viewers to join the Discord channel and attend live streams to learn more and improve their profitability (02:20:45). The market often moves opposite to one's impulse, and pullbacks happen at previous highs that were former pullbacks (02:23:49).