What's up my friends, let me know if you know who that is in the comments section down below that was a bad joke, bad joke. What is up? Everybody welcome to trey's trades, where we have technical analysis and different stocks in the stock market, as well as potential buy holder, sell opinions on these given stocks electrifies by saying that i'm not a financial advisor nor expert so take what i say with a grain of Salt, the reason i started this channel is because a couple years back, i was about 30 000 deep into medical debt, and i was very fortunate to have some close family friends and mentors that pushed me to work hard and invest my money and i'm happy to Say that not only am i not financially free, but i'm doing pretty well for myself at the age of 23. So if i can pass along any of the information resources or tools that are given to me here in the community, making a couple people better off than they were before, that's all that i can ask for last. If you would not mind dropping a like on the video, it really does help support the channel and consider subscribing if you'd like to see more content like this.

Now today we're going to be giving a little bit of a tutorial. I've been asked by quite a few people that cover something like this in my videos, so i am going to finally be doing that today on different candlestick patterns and how to read candles on a chart to help level up your game so that, when you get Into the charts uh, i can teach you how to uh. You know it's better for me to teach you how to fish than to give you a fish right. You've heard the old saying and how that goes.

So we're gon na be giving you a little bit of perspective on how to read candlesticks i've got a couple different ones here that i want to cover on the day. Uh we're gon na we're gon na cover about ten uh, nine or ten different candlestick patterns and how to read them right off the bat here so buckle in this is going to be a pretty decent video. Of course, i do recommend that i do tell every single person this to check out rain or tail on youtube if you would like a mastery level, uh analysis on technical analysis, but i will do my best to match up with that. God of the charts, so we're going to start off by showing you guys what the candles mean first off right, so i have pulled up atvk, i'm going to show you just just zoom in quick what these candles mean to begin with right.

How do you read a candle? Well, let's start off with this green candle right. So it's super super easy to read these. Basically, what you do to start off. Is you look at a candle and when it's green, you start from the bottom and you work to the top right? So if we look here on the screen, you can see that it opened at 14.2 cents and it closed at 17.8 cents, which means that it opened to begin with right where you see the bottom of the filament of the candle right.

So you see this right here. That is where the candle starts. That's, where we opened on the day and we're closed, is the top of the candle uh and sometimes you'll see a wick on the top of these. But we don't in this instance - and this is where the candle closed now, what does that mean about the wick down here right? Well, that does mean we open the candle at 14.2 cents and sellers try to push the price down to 13 cents.

So what that shows is okay: sellers try to push it down. We see that touch at 13 cents and buyers push the price back up to 17.83, so the wick indicates um prices that tried to get pushed down below the open on this green candle and that were rejected right. So wick tells you, when a price is trying to be brought to a different point and is rejected and comes back up, so that is what we're seeing right here with a green candle. You start from the bottom.

You work your way to the top. It opens at the bottom closes at the top right. Well now we can do the exact opposite with a red candle. It's very very easy.

You start at the top of the candle, that's where the open was so the open on this candle was at 15.6 cents. As you can see right here on the chart, it shows right there, 15.6 cents closed at 12.9 cents. Now. What does that say about the wick on the bottom that says that said, sellers tried to push the price down lower as far as 12.2 cents and buyers step back in to push the price back up to the close at 12.9 cents.

So this indicates to you the overall price action that one minute window right now. If we change over to a three month chart, we can look at this on a daily chart as well, and it tells you the same thing so right here on this. Can over my mouse is currently the opening on the day was 10.2 cents. The close of the day was 13.7 cents and buyers tried to push the price up to an overall high of 15.9 and it was brought back down by sellers to close at 13.7 cents.

So it's it's very, very easy to use for green candles. You start at the bottom work your way up for red candles. You open at the bottom. You close on the open on the top close at the bottom, so very, very easy.

This big red candle right here opened at 26 cents closed at 16.05, tried to get brought down all the way to a low of 12.7. So the wick indicates attempt by both buyers or sellers, to push a price up or down that was rejected and brought back up to the previous highs or lows on the candle. So that is how you read red or green candles to begin with. Now i do want to show you some different candlestick patterns that mean different things on the charts, so we will pull up, let's just say, tesla right now, we're going to start with a bullish engulfing candle.

Now let me find one real quick for a great example for you that way, you can see what this means. Okay, so i've got a great example right here, pulled up for you, guys of a bullish engulfing candle now to begin with what is a bullish engulfing candle? Well, that is right here for you and i'll draw a big fat circle, so you can see exactly what i'm looking at, and this is a bullish, engulfing candlestick pattern, and this typically indicates that a bullish pattern is uh. Do you see the momentum in favor of price rising or buying pressure? So you can see here that in this 60 minute window, sellers attempted to bring the price down on neo from uh. We opened up at 57.76 closed at 55.88 and then buyers step back in from that low opening at 56.39 and push the price back up to 58.45 and this bullish engulfing pattern.

Basically, what you're seeing is a smaller red candle in front of a larger green candle, and this indicates both weak selling pressure and strong buying pressure. So anytime, you see this. This is typically an indicator that there's a lot of buying pressure and you you're expecting the price to go off now. Of course, this doesn't always play out right.

You need to pay attention to the overall macroscopic trend on a stock, but if we do zoom out here and look at this, you can see this engulfing. Candlestick pattern did come to fruition and we do see there is a strong amount of buying pressure that comes into the stock. So that is one thing that you can keep in the back of your mind. Now, on the flip side, there's another type of candlestick pattern that is good to pay attention to, and this is the bearish engulfing pattern.

It's the exact opposite thing of the bullish, engulfing pattern and you're looking for a red candle following a green candle. That is larger than the previous candle, and we can see that right here as a great example on neo's charts. Let me just expand this overall red circle or green circle, really quick i'll, just delete it and create a new one, but this is a perfect example of an engulfing bearish pattern candlestick. So you see this open.

At uh, at about 59.28 cents closes at 59.88 sellers step back in and it opens at 59.85 closes at 57.98, and this indicates there's a lot of momentum in favor of price, falling of a bearish movement and a price action moving downward. And if we do zoom out on the chart, really quick, you do see that that played out in the short term. We did see a lot of selling pressure uh and it's honestly a great thing to see it's a great tool to use to make sure that you are keeping up with the overall trend on a stock. Now.

The next thing that i want to show you guys is the harami. Now, essentially, what a harami is is. It is a neutral pattern, uh, where price is being pushed into a tighter range, where you're, squeezing down on that price action, and typically this indicates that a breakout will be coming soon, and here is a perfect example of a harami right here now with the harami. What you are looking for, i think this will be easier to see if i zoom out just a hair, uh i'll just go like this and with the harambe.

What you're looking for is a large green candle like this one, followed by a smaller red candle somewhere in the middle of that price range right. So we do see that right here, we've got a circular for you, a large green candle, followed by a small red candle and typically after this, you will see a breakout either in the upward or downward direction. And you can see this with both red candles or green candles. So if we flip it, this is a red candle, a large red candle, which is followed by a small green candle somewhere in the middle of that price range.

Typically, you'll see a breakout in the downward direction. In this case, we have a large green candle that is followed by a small red candle in the middle of that price range and a breakout did follow afterwards, and this is called the harami. This is a great way to indicate or predict whether or not a breakout is coming. So that is another thing that i like to use as my own technical analysis for day or swing trading opportunities.

Now the next one that i want to share with you guys is called the dark cloud cover and there's there's a flip side of this, which we call the rising sun. I will show you both of these to indicate uh both bearish and bullish patterns, but this one is typically a bearish pattern indicator, and this is when you see a hard push by buyers with a large green candle right here. Trying to push the price up right, followed by a large red candle. That brings the price back down to either previous uh lows or just above previous lobes, and we can see that right here.

So we've got a large green candle right and we opened the next candle actually higher than we closed the previous candle. So you might be thinking this is bullish right, but with the dark cloud cover candlestick pattern. What you're seeing is sellers push the price back down to these previous lows, and this is typically a bearish pattern that is indicating a a trend reversal where sellers step back in to push the price back down to some previous lows and in the short term, we Do see this happening, we do see a little bit of selling pressure. It does not pan out in this exact instance, but seven or eight times out of ten.

You will see that come to fruition. Now, on the flip side, you can see something very similar, which is called the rising sun pattern, and this is very easy to find you're. Looking for the exact opposite thing where this is honestly a picture-perfect example of the rising sun, so you're looking for a red candle, a very large red candle, followed by a very large green candle, so sellers tried to step in and push the price here down to About uh a close at 45 36 and we open this next candle lower than we closed the previous candle right. So you might be thinking oh crap, this isn't looking good.

We might, we might be looking at something rough will buy or step back in to push the price back up to the middle of this red candle previously, and this is typically a bullish indicator where, where price looked like, it was going to continue down and then Instead moved up - and we do see this pan out and come into fruition - i don't know my fidelity account locked me out it locked out, but i'm back in anyways. So this is typically a sign of bullish movement and we do see this pan out. You do see this seller's trying to push the price down. It was rejected, followed by a nice bullish run, so that is typically a bullish indicator.

So just to just to recap, really quick. A a dark cloud cover would be something like this. Where you see buyers, try to push the price up and it looks like a breakout is imminent and then it is followed up by bears or sellers trying to come back in and push the price back down. In the flip side, you've got the rising sun sellers.

Try to push the price back down, we open the next candle lower. Then we close the previous candle and buyers step back in to push the price back up. This is a bullish indicator, the rising sun. This is a bearish indicator.

The dark cloud cover now the next one that i want to show you guys is: we've got two different candlestick patterns to pay attention to, and this one is called the two highs low close. So we've got a green candle, followed by a red candle that closes at the exact same spot where we opened, and this is typically a pattern that could be bullish or bearish depending on the context. In this context, it is a bullish indicator um, but uh. I should say a bearish indicator, but uh it does depend highly on the overall macroscopic trend of the stock.

Now, if we do zoom out really quick, i'm just going to circle this so that we can look at it after we zoom out. Look at the macroscopic trend and if we look at the overall trend of neo, you can see that it is trending bullish right. So in this instance, this is a a bullish indicator and this typically uh. What you're looking for is a green candle opens low closes high, then we see a red candle following opens, high closes low, and this is typically it.

Some people will say it's neutral, but i find this to be as long as the trend is bullish. Overall, a bullish indicator where buyers will step back in and push the price back up to these previous highs. It's a bit of a conflict right, so this could go either way uh. Typically, this is a a trend that shows indecision and in this instance, as long as the macroscopic view is bullish and you can see a nice long, candle wick underneath this, where sellers try to push the price lower and it is rejected.

I see this as a bullish indicator, so this is called the two highs low close. What you're looking for is an open, low, close high, open, high close low, and this indicates either indecision or slightly bullish favor, depending on the overall trend that you're seeing on the charts in this case with neo, the trend is bullish. So this is a bullish indicator. If it was the opposite and the trend was bearish, this would be a bearish indicator and confirmation now the next one that i like to look at is the two lows high close, and i will find an example for you on that in just one second.

Here, okay, so here's another good example of a two lows: high close candle, i'm going to zoom in on this, to make it very easy to see what you're looking for is. A candle that opens high, closes low, followed by a candle that opens low, closes high, and you can see that right here. We've got this smaller red candle, followed by another green candle that opens just or closes just slightly higher than the previous candle and then depending on the context of the chart. If we zoom out here, you can see, this is overall bullish in nature.

If we look at the previous growth, it's overall bullish in nature with ford uh, this is typically a bullish indicator. Now, on the flip side, if you see a candlestick pattern like this, and the overall trend is bearish, this typically can indicate a continuation of bearish trending. So with the two lows high close or the two highs low, close candlestick patterns, these typically indicate a continuation of overall trend and, if you do see either of these, they are about the same in context. They're about weighted evenly and you're likely to see a continuation of the trend that is currently happening and with ford we do see a continuation of this bullish movement, so that is uh.

Two great candlestick patterns to pay attention to, and the last couple that i want to show you guys are called the hammer, the hammer or pin - and this is typically a sign of reversal when the wick sticks out way past the surrounding prices. And it indicates that price tried to go higher and was rejected, so what's a good example of a hammer or pin well, we can see right here. This is a great example of a hammer or pin where we see this long wick, underneath i'm actually going to try and find a better one for you just so that we can really hammer down on this one. Second, while i do that, okay, so what with a hammer what you're looking for and i'll zoom in on this just so it's very easy to see with the hammer what you're looking for is a very long wick, either up or down, and this indicates uh weak Buying or selling pressure, so in this instance, we can see that the candle opened at about seven dollars and twenty one cents and it closed at seven dollars and twenty three cents buyers tried to push the price all the way up to 7.38 and sellers push the Price back down - and this typically indicates weak buying pressure.

So whenever you see this, this could be a sign of an upcoming bearish run so uh with this right here you can see. Okay, we see this uh this hammer, hammer or pin candlestick pattern and followed up by uh overall selling pressure anytime, that you have these long wicks on top of candles. That typically indicates that buyers are trying to push the price back up and there's a lot of weakness happening and a lot of weakness present with the overall buying pressure. Sellers are able to bring the price back down and we do see this continue as a trend up until about here and typically this can be a great indicator of overall buying or selling pressure on a stock.

Now, on the flip side, you can see the same thing except with a red candle, and if we look right here, we can see that same thing happening. We've got another hammer candle pattern, and this indicates that sellers tried to push the price down it opened up at 8.26 closed at 8.21. They tried to push it down to 810, but buyers stepped back in and pushed the price back up from these previous lows, and after that we see a continuation of bullish trend and anytime that you see a hammer that is red. That typically indicates weak selling pressure and strong buying pressure anytime, that you see a hammer that is green.

This typically indicates weak buying pressure and strong selling pressure, so this could be a good indicator of both short-term or long-term uh, bullish or bearish patterns. You have to take into view the whole macroscopic trend of a stock, of course, but that is uh typically a good indicator, a way to predict where a chart is going and how strong the buying or selling pressure is now. There's one last candlestick pattern that i want to touch on, and that is the doji the doji. That is something like this right here now doji to me indicates indecision.

This is a neutral pattern which could have different meanings based on the context if the overall pattern uh the overall trend of stock, is currently bullish and you see a green doji. Typically, this is okay. This doesn't mean anything bad. This indicates indecision, typically a decision slightly favors bears.

So if the trend is bearish right, we see a lot of selling pressure and you see a doji. Typically, that's going to favor bears a little bit, but on a bullish chart this is typically neutral, meaning that it's not going to affect anything uh. It usually just indicates that there's some indecision happening with the overall view. Being you know bullish, for instance, with ford right.

We see the doji candlestick pattern. We actually do continue this overall bullish trend. So, typically this what you're looking for is an open and a close, basically at the exact same level, so we opened the 882 closed at 882 and this is a doji candlestick pattern, which is a neutral pattern. Unless you are looking at an overall bullish chart, in which case this can be maybe slightly bullish, but usually neutral, and on a bearish downward trending chart a doji candlestick pattern that is red typically indicates uh, that this is going into the favor of bears.

So those are the overall candlestick patterns that i like to show you guys. Those are the ones that i personally use. If i'm looking for a swing trading opportunity getting into a good momentum stock. Looking for the best potential entry point, they're very indicative of future uh future trends that we may see on a chart, and i hope that this was helpful if you guys have any sort of constructive criticism, if you didn't enjoy this, please let me know in the Comments section, but i've been requested quite a bit to cover different things that i look at on the charts, and this is definitely one of them, so that is what i have for you guys today.

If you enjoyed the video, please drop a like, it really does help support the channel and consider subscribing if you'd like to see more content like this and lastly, i do an affiliate link in the description box down below for tubebuddy. Now tubebuddy is an seo optimization website that i personally pay a nine dollar a month, membership for and it's highly able to attribute growing from zero to eleven point, eight thousand subscribers in just over a month. So if you're a content creator or looking to become one, it is a great tool to help get your videos into the eyes of your intended audience. And if you do use my link i'll receive a commission off your purchase at no extra cost to you.

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I don't know why.