Basics of Charts and Trading
Audio Transcript Auto-generated
- 00:00 - 00:02
All right, So let's do some candle knowledge.
- 00:03 - 00:04
Now let's get into that.
- 00:05 - 00:09
Yeah. So following pictures of a candle tails on both
- 00:10 - 00:14
ends. So you can see the high, so you see
- 00:14 - 00:20
the red candle has an open a close and the
- 00:20 - 00:23
green candle has an open and close and both have
- 00:23 - 00:24
a high price and a low price.
- 00:26 - 00:28
So the way you should think about this is if
- 00:28 - 00:32
you open a chart, look at each first you check
- 00:32 - 00:33
the time frame, put an hourly timeframe.
- 00:35 - 00:37
This means that each candle is an hourly candle.
- 00:38 - 00:41
So each candle that opened and closed as within the
- 00:42 - 00:46
hour. The new candle that closed was literally the hour
- 00:46 - 00:50
after. It's the same concept if you lose any other
- 00:50 - 00:50
time frame.
- 00:51 - 00:53
So if you have a daily time three, it's the
- 00:53 - 00:56
same thing each candle is for the day and when
- 00:56 - 01:01
the day ends, a new candle opens, which signifies a
- 01:02 - 01:04
new daily candle a new day basically.
- 01:06 - 01:11
So traders use these candles to make analysis, they spot
- 01:11 - 01:17
patterns and technical analysis imply indicators and they make money
- 01:17 - 01:18
up and down the market.
- 01:18 - 01:19
It's very simple.
- 01:21 - 01:24
So now I want you to imagine.
- 01:25 - 01:26
So I just want you to understand how a candle
- 01:27 - 01:28
works basically.
- 01:30 - 01:32
It's a fight between bulls and bears.
- 01:32 - 01:35
Okay, so just imagine there's a tug of war between
- 01:35 - 01:39
buyers and sellers, the buyers are pushing their buying and
- 01:39 - 01:40
the sellers are selling.
- 01:41 - 01:44
So in the end, for example, for the hourly candle,
- 01:45 - 01:49
if the buyers pushed more within the hours, it means
- 01:49 - 01:52
the candle will close on a on a higher price
- 01:54 - 01:57
and in the case in front of you now in
- 01:57 - 02:01
the screen, no 11, because the candle is, you see
- 02:01 - 02:02
the wakes up and down, they're identical.
- 02:03 - 02:05
So no one really want this fight.
- 02:05 - 02:07
It's just a tug of war and no one is
- 02:07 - 02:07
going to get.
- 02:08 - 02:09
It's yeah.