Master Chart Patterns and Trading Techniques

Day 2 | Chart Making| Sequences| Trading Patterns Techniques

Estimated read time: 1:20

Summary

In this comprehensive session, LMBO Price Action delves into understanding various chart patterns and their application in trading. The video discusses the identification and application of patterns like the Morning Star, Evening Star, and more. It focuses on recognizing patterns within ascending and descending sequences to gauge market momentum, and stresses the importance of analyzing complete movements, rather than isolated candle patterns. The session explores the psychology of candles, techniques for spotting strong SNR levels, and strategies for deciding which patterns are tradable based on momentum and supply or demand insights. By focusing on past patterns and market behavior, the tutorial aims to enhance traders' decision-making skills for better efficiency in trading.

Highlights

The Morning Star and Evening Star patterns appear every 5-10 minutes in the market 🌟.
Understanding pattern sequences can help determine their tradeability 📈.
The Source of the wave provides insights into potential reversals or continuations 💡.
Reading beyond isolated patterns to understand market momentum 🧠.
Applying a thorough analysis helps in trading with higher accuracy ✅.

Key Takeaways

Understand the power of sequencing - Ascending or Descending order can reveal market momentum 📊.
Spot strong and weak patterns - Knowing when patterns aren't tradable is crucial for filtering noise ❌.
Candle psychology matters - Thoroughly reading candles and their sequences offers deeper market insights 🔍.
Recognize the Source and Shatter - It's vital to know where patterns originate and the potential fake-outs 🔄.
Trading is a matter of pattern and practice - The best strategies come from reading the charts like a pro 💪.

Overview

Welcome to Day 2 of our trading series with LMBO Price Action, where the focus centers on mastering chart patterns and trading techniques. Trading isn't just about spotting isolated patterns, but understanding how these patterns fit into the bigger picture - market sequences, to be precise. Today, we explore how sequences can illuminate which patterns hold more weight and are worth leaning into during trades.

We delve into the importance of recognizing the ascending and descending sequences in charts. These sequences inform traders of the current market momentum, aiding them in deciding if a pattern is actionable or best avoided. In doing so, we arm ourselves with insights that go beyond superficial pattern recognition, diving into the psychology of candle formations to better predict market movements.

It's not just about individual candles; it's the story they tell collectively. With this comprehensive overview, you should be able to better judge which patterns offer trading opportunities and which ones are likely pitfalls. The ultimate goal is to blend pattern recognition with market momentum insights to make informed trading decisions that enhance returns.

Chapters

00:00 - 00:30: Introduction In the chapter titled 'Introduction', the discussion revolves around market trading patterns. The previous session covered some basic patterns, and this chapter aims to delve deeper into additional patterns, including the 'morning star' and 'evening star'. The focus is on understanding their significance and how they manifest frequently in market timelines, often observed every 5 to 10 minutes. The chapter sets the stage for further exploration of trading strategies related to these patterns.
00:30 - 02:00: Pattern Trading and Types of Patterns The chapter discusses pattern trading, focusing on triple candlestick patterns such as the Morning Star or Evening Star. These patterns typically consist of three candles, but can sometimes include four. The Morning Star pattern includes one red candle followed by a weak green candle or another type of weak candle. These patterns are utilized in making trading decisions based on their formation and the signals they provide.
02:00 - 03:00: Chart Sequences and Algorithms The chapter 'Chart Sequences and Algorithms' discusses the patterns formed by red and green candles on financial charts. It highlights scenarios where a strong green candle might either cross a level or close below the opening price of a preceding red candle, forming patterns known as an evening star and a morning star. These patterns are used in analyzing trends and making trading decisions.
03:00 - 04:00: Ascending and Descending Order Sequences The chapter titled 'Ascending and Descending Order Sequences' explores patterns commonly observed in the market, such as morning and evening stars, dark cloud covers, piercing lines, inside bars, and outside bars. The discussion emphasizes that these patterns can occur frequently, and offers insight into multiple strategies for trading these patterns, although only several methods are mentioned. The chapter provides an overview of identifying and effectively leveraging these sequences in market trading.
04:00 - 06:00: Reading Candle Patterns and Momentum This chapter focuses on understanding chart sequences and algorithms. It covers completing market sequences and provides insights into how to read candle patterns effectively. The chapter lays the groundwork for trading patterns by teaching the basic principles of chart reading. In future sessions, it promises to cover the basic price action approach to trading patterns.
06:00 - 07:00: Psychological Patterns The chapter 'Psychological Patterns' explores ascending and descending order sequences. These sequences are essential for understanding market momentum and distinguishing between tradeable and non-tradeable patterns.
07:00 - 10:00: Reference Sequences The chapter titled 'Reference Sequences' explains the concept of ascending sequences through the example of numbers arranged in increasing order, such as 1, 2, 3, 4, 5, 135, etc. It draws an analogy by comparing these numbers to candles that appear sequentially: first one candle, then two, then three, and so on. This sequence visualization helps in understanding the concept of momentum.
10:00 - 12:00: Trading Similar Sequences The chapter discusses the concept of descending sequences in trading, specifically through the observation of number patterns. It uses the analogy of candles, explaining that a sequence can be identified by noting changes in candle colors: a green candle appearing between two red candles and various arrangements thereof. This approach helps in identifying patterns or trends within trading sequences. The focus is on understanding how the arrangement of these candles, whether they are increasing with green candles or decreasing with red candles, form a sequence that traders can analyze for better decision-making.
12:00 - 14:00: Random Sequences and Similarity The chapter discusses the concept of random sequences and how they are related to market movements, specifically using the example of green candles in financial charts. It illustrates that an increase in the number of green candles could indicate that more buyers are entering the market, suggesting a low-momentum increase.
14:00 - 15:00: Homework and Closing In this chapter titled 'Homework and Closing', the discussion focuses on identifying market patterns, specifically an Evening Star pattern. This pattern is characterized by one strong green candle followed by a weak green candle and a red candle, indicating a potential bearish reversal. The chapter emphasizes the importance of recognizing these patterns to make informed trading decisions.

Day 2 | Chart Making| Sequences| Trading Patterns Techniques Transcription

00:00 - 00:30 Okay so yesterday we understood about some patterns that these patterns can be trade in the market the way how to trade the patterns we will discuss today some ways we will discuss today but still there are some more patterns like a morning star and evening star these pattern are also important PS and mostly every 5 to 10 minutes in the market you will find
00:30 - 01:00 the morning star or evening star based on the triple R4 CTIC pattern mostly these are the triple cand pattern but sometimes if you find four candles also these patterns can be cons consider the morning isra the one red candle and after the red candle and any weak green candle or weak
01:00 - 01:30 red candle and again a strong green candle sometimes this a strong green candle make can cross this level and sometimes this green candle make can close before below the this opening price of the red candle uh this is one kind of evening star and this is one kind of Morning Star here this is evening isra and uh
01:30 - 02:00 this is one kind of morning stra and this is a evening exra these patterns mostly up here while we are looking for the angle F Dark Cloud covers piercing line inside bar outside bar also these patterns we will find in the market okay so as yesterday maybe I I I don't know yesterday I told or not there are three to four ways to trade the patterns the best way to trade the
02:00 - 02:30 pattern we need to understand the chart sequence the chart algorithms right today we will complete all these sequences of the chart and then on the next class we will learn the basic price action uh way to trade the patterns but today we are going to complete the sequences of the market and also we will learn how to trade the pattern and how to read the candles
02:30 - 03:00 so first sequence which is ascending and descending order sequence this sequence is very easy and this sequence helps to understand the momentum of the market and it helps to identify which pattern is tradeable and which pattern we can avoid
03:00 - 03:30 look the ascending shows the increasing numbers in order low to high that is called the ascending sequence and these numbers like 1 2 3 4 5 135 1 4 these this sequence is ascending sequence these are the numbers but these numbers we will use like as a candles that first one candle appear then two candles up here then three candles up here four candles up here and then we will understand momentum
03:30 - 04:00 if the numbers are decreasing from high to low that is called the decreasing numbers are descending sequence like that let's understand in the candles see here we found one green candle in between the two red candles and then we found two green candles in between this red and this red candle now now if we just count that one
04:00 - 04:30 green candle and then two green candle it is increasing in the numbers and The Next Movement we found that there are three green Candles now one and two then three it shows that the buyers increase their number are we can say the momentum is very low momentum increase
04:30 - 05:00 reason momentum extreme overall it shows that the buyers are in a power after that in case if you find any patn like this is a Evening Star so one green one weak candle green candle and another red candle that's a pattern of bearish so can this pattern we can trade or not if we collect information
05:00 - 05:30 what's the buyers are telling that we are in a momentum what's the sellers are telling in this movement they are telling that we have one candle we have one candle again we have one candle we are not in a momentum so this pattern is not tradable means we need to ignore this patr because the information for the sellers to go with the sellers the information is not in our favor it's still the buyers are in the power until they tell that we are not now stop or
05:30 - 06:00 our momentum is decreased and then we will select the bearish pattern so in this condition which patterns we will trade we will follow the bullish patterns now in this reading of one and two and three candles it shows that momentum of the buyer in the next slide if you just check there are three candles in a row and then after R Candles there are two c candles in a
06:00 - 06:30 row again there's a single candle now it shows that the buyers are losing the control before they have a three means at this time the momentum is very high if at this time the momentum was very high that this patn is a tradeable because three candles after the three candles we can expect two candles or after three candles we can expect three three or four candles or two candles
06:30 - 07:00 means there is a probability that the buyers may can continue more but the probability of this pattern trading we will ignore why that three candle then two candles it shows decline it shows the momentum slow down momentum can be increased it's not final that this is the last only we will find the one candle maybe the momentum will remain same maybe the momentum after again increase but this sign is not good
07:00 - 07:30 to trade this pattern in case if we found not engulfing if we found a dark outside bar like a this pattern if we found at this place then sure that no trade the angle thinging our piercing line mostly it will work but this pattern if we found that this is the final that no now the really bias will
07:30 - 08:00 stop so this is showing that the momentum slow down and now it's near to the stop okay for example if we are ignoring the buyer then why we are not going with a sell are we are going with a sale so anyone what you are thinking if we are not trading with a buyer can we trade the sale thread sale there there is a pattern
08:00 - 08:30 it's a bearish engulfing if we ignore the buyers then we can go can go with the sellers can anyone guide me even it's wrong or right just tell me that what we can do here if we are trading the patron because also you all have a experience at this area what we can do next can yes next candle will be retracement
08:30 - 09:00 of bullish engulfing and bearish as well okay so it can be means there is a possibility of retracement right okay any other and again it the trend is getting weaker also momentum is getting weaker okay so in this moment can we trade the direct this sale pattern means if I want that there is a bearish Engle thinging or dark cloud cover or inside bar or whatever the Pon that next
09:00 - 09:30 Candlestick will be rate am I right or wrong any other member this candle is stopping the movement the red candle is stopping the movement of this trend okay okay okay so Satish to you tell tell me about this movement because mostly we will be uh trp in this type of movement while we will trade the patrols
09:30 - 10:00 okay he's not ready to answer any other member I want that all members participate yes I I will I will directly go with the sellers you will go with the seller okay one member say in when the buyers tell us that we are stopped that we will go with the seller right so one member is agreed to go with the sell and one member is telling that there is a probability of retracement okay what sa tells let's see red candle sir red
10:00 - 10:30 already the momentum has started it broke the low of the green one so I'm guessing it will continue with that force and momentum okay let's see if we ask from the sellers they are showing us any momentum momentum means in ascending order what we learned that if one candle and then we got the two candle it shows the momentum is increasing right likewise there is a single red candle there is again a single red
10:30 - 11:00 candle there is again a single red candle is still there is a single red candle so as per the idea of ascending sequence sellers not told us that we increased our momentum as per the pattern they told us that we have increased the momentum but as per the sequence they didn't told us right so if not means we need to ignore safe site until they tell us that we are
11:00 - 11:30 increasing the momentum okay in the next candle what the sellers told us right now now the information is complete that our momentum is now increased yeah and now it's a true and what's the information from the bias side they told that yes we are also stopped and now we give the gave the opportunity to the sellers and their
11:30 - 12:00 momentum is also increased now means after this movement if new patterns we found that we can trade in the favor of the sellers see for example here I one green candle up here okay so here there is another question the green candle however this PN which is this PN it's a
12:00 - 12:30 piercing Line This is a piercing line right yeah this piercing line I can trade no if I ask from the bias bias what fold three two one they told our momentum is a stop right so I cannot go with this pattern if I ask from the sellers sellers told that our our momentum is now increased one two means we are now stronger as compared to the buyers right means this
12:30 - 13:00 pattern is not tradeable before we was thinking about this pattern and now this pattern is not tradeable so in case if we found this pattern right now now this pattern is tradable now all the points in the favor of the sellers who stopped buyers is stop who is in a momentum sellers are in a momentum so this pattern without retrace M you can continue to go
13:00 - 13:30 down so while we are trading any pattern we need to go back understand the candles that who are in a power and who losing the power so if we are going with a sale are there in the power if we are going with a buy are there in the power if not we will ignore mostly we are losing money at this area Okay so this is also a way to read
13:30 - 14:00 the candles and pick the any pattern pick any pattern to go with that this is also there are more ways also in the sequence but this is one point where we can read the candles okay now we understood these little points and also another point it gives us about the stop and start of the buyers and sellers which is that point for example if there's a buyer with one then two
14:00 - 14:30 then three candles they looks like in a in a momentum but at the end of this momentum this candle shows a little weakness and this weakness will be counted will be read by the sellers the sellers will treat this weakness and they will think that okay sellers buyers reached on the peak of the point and now this we candle is telling that maybe they will lose and they will stop here the the
14:30 - 15:00 momentum okay still but we are not not sure sellers in and finally we found a buyers with a one candle so now for example at this stage sometimes two candles then one buyer sometimes three candle then one buyer sometimes four candle then one buyer sometimes five candles then one buyer this is the sign that buyers are
15:00 - 15:30 stop when the when you get get this information then you will think you will go forther sellers so buyers are stop and there is a Pat bearish and the sellers are start momentum starting momentum one then two and again how much candles we can expect maximum 3 four five minimum two candles we will expect and this pattern can be tradeable okay so from this start of the momentum
15:30 - 16:00 and stop of the bias momentum we got a support and resistance level which is very effective which one look at here when buas is stop on the next slide I'm going to show look at here there are three sellers then two sellers three then two it shows that we are weak yes and then at this point we found we didn't know that this the one or two candles but here we got one point right buyers are
16:00 - 16:30 increasing the momentum and sellers are losing the momentum so the next candle will clear all the doubts it clears that the sellers 3 2 1 means they stop buyers one two they are increasing the momentum how many candles we can expect from here for the buyer minimum three 3 to four and this pattern is tradable as for the this pattern is tradable okay when the sell when the
16:30 - 17:00 seller is stop and buyers enter in the market this red and green candle creates a support and that support I'm giving the name sellers stop support because sellers are a stop and the red and green candle creates a support so why I just point out this one this SNR because it is very strong one it always gives us opportunity to trade means when any
17:00 - 17:30 candle comes and close on this support I will trade as a reversal because this support is very effective okay but current current on this information that who will continue right now the buyers will continue so I'm going with the buy for example bu are moving up and buyers how many candles created the three candles created 1 2 three and sellers position is currently down for example this pattern is created can I go with a
17:30 - 18:00 sell can I use this pattern to trade anyone tell me no sir no no no means because because buy buyers are stilling power Yes means from this sequence ascending and descending sequence we can get idea that which pattern is tradable and which pattern is ignorable right and if we go with a this pattern that mostly we will lose why because in
18:00 - 18:30 the psychological patterns everybody knows that three green one red what will be the next candle green candle GRE okay green and why it will be green in addition that the sellers are a stop right so if we just take this filter on the psychological pattern three green one red and we use this pattern while we
18:30 - 19:00 got this information that that will be show short pattern okay okay let's go to understand when buyers are strong so we got this candle now which is this pattern here outside bar outside bar we are not expecting at this point if we are thinking that bias will continue in uptrend but if the outside bar appear it means
19:00 - 19:30 that this is a information from the buer side that we are exhausted or we want to reversal we want to correction so if we found even that even that you know that the buyers are in a power one then two then three they are in a strong momentum but the pattern is which one outside bar don't trade this pattern you will find mostly the next
19:30 - 20:00 Candlestick will be R and this big candle mostly mostly it will close under any resistance around number we will learn on the ne on other classes next classes okay so now here one information we have recently recent information we got which is that information in this movement sellers stopped no buyers is
20:00 - 20:30 STO right sorry sorry buyer stop sorry oh this is a recent information the sellers a stop for now old information right so current exactly the buyers told that we are a stop okay so if the buyers told we are a stop can we go with the sell Patron yes we can oh because it's still the sell start told us that we are in a momentum right yeah yeah yeah okay otherwise we
20:30 - 21:00 will lose the money right because if the bias confirms you that we are losing the control or we are sto then you must confirm from the sellers that are you ready are you are in a power can I go with you right but if they are not in a clear mode then you don't yes sometimes you will win sometimes you will lose now there is a for example after there is this right CLE there is a right CLE another okay if you trade sell you may maybe you
21:00 - 21:30 win but if the buyers again continue because after a stop immediately they can continue because this is not only the confirmation after stop immediately they buyers they can continue okay double confirmation we required so if they stop here the next time buyer again say that we are we don't have a demand then that will be the confirmation okay so now this is which pattern
21:30 - 22:00 inside down so can we go now down the next candle if I want to trade the sale pattern but I know that this pattern have how much percentage 55 okay and recently I got the information that the sellers started a momentum so I can wait for the next patn for the seller buyers enter but can I go with this pattern again
22:00 - 22:30 can I go with a buy no because recently they stopped right if again I got a sellers Patron then we can go down next candle but in simple words if just I want to show I want to tell that when you find that first pattern is successful you can go with the second Patron right when first Paton is a success in a trade then you can go with the second
22:30 - 23:00 pattern but this complete information you need to read otherwise you will be trapped so while we are trading any pattern how many candles we are reading one or two complete Movement we are reading right if we don't read then only just on a single candas pattern we know that if I just show here uh one pattern any one pattern for example this this pattern and I hide all the other patterns this
23:00 - 23:30 pattern always show me the strength or if I I count this pattern and hide all other candles this pattern will show the strength of the sellers it will show the strength of sellers but if I I read all the candles that each and every pattern will give me the different meaning as per the content of the chart right right now this red candle which I traded it close on this support this support in this support the sellers
23:30 - 24:00 was stopped means at this area who is weak sellers are very weak and who is strong buyers are strong because at this point the buyers produce the three candle and they are looks very strong again they will try from here why always think the source of the wave the source of the wave is a best idea to understand where from the sellers enter where from
24:00 - 24:30 the buyers enter look at here Source how to understand the source I'm going to show when we are reading the source what is the source of this candle what is the source of this candle this is the point and at this point sellers started and then it creates a second
24:30 - 25:00 candle it creates a first cand second candle and then third candle so what is the source of the second and third candle this point okay what is the source of this candle this point what is the source of this candle this point what is the source of this and this candle this point and what what is the source of the this candle this point when this Source
25:00 - 25:30 Point will be broken these buyers will try again when this Source the price reach to this Source these buyers will interact if the buyers enter again sellers continued again this Source Will May react likewise when this Source was broken the sellers ured when this Source was broken after a the sellers inter this every wave have a
25:30 - 26:00 source at that Source maybe price again start or maybe can affect because of that point that's the reason of this Source Point we are calling as a SNR support and resistance okay let's go to understand this point right now now this sellers stop support is very stronger okay after that we found the
26:00 - 26:30 buyers entered because of this support can we go with this buy pattern this is a pattern because we traded this buy because of this reversal strategy but can I trade this pattern this is a piercing line can I go with a buy again yes yes for sure because sellers already stopped right so we can go are stop where is the sellers stop
26:30 - 27:00 sign because we are in the support area we are in the support area but sellers didn't told us that we are we are a stop right even the buyers didn't told us that we are in a momentum the candle this candle comes because of right yeah correct yes sir but where is the momentum of the buyer did we find
27:00 - 27:30 the market we sir sir if we see the first candle which is red after that the bues candle is not covering the red candle okay because of that we can take down trade okay look at yesterday yesterday when we understood about the Candlestick math right at that point I told that if you find this candle right what will be the next candle after this candle mostly sellers sers red red
27:30 - 28:00 candle everyone is agree right yes yes yes I oh understand understand this now if I subtract this red and this green candle that what the candle I found here red candle so what I can do can I go with a buy or can I go with a sale again I expect the sale candle because still the buyers not told me that our momentum is increased is still the sellers are in a momentum if I read the
28:00 - 28:30 previous information one candle then two candle and again two candle they are telling that two candle then two c we are have a same momentum still we are not stopped right but in case for example in case that this sale will be done this is sure that the next candle will be sell maybe it is very small maybe it is big candle maybe whatever the candle for example this is a candle okay now we are counting that this is a very weak
28:30 - 29:00 and retracement of the candle but why this red candle appears because of this Candlestick math result right okay after that what I found that maybe bias enter maybe bias they come down or they they move up like it creates this one my pattern like just I just make it clear this is the
29:00 - 29:30 right now can I go with a buy no sir still not because I found just a single green single green single green where are the two green candles which can give me more confirmation because now recently I got one information here that after after the two candle again two candle now the
29:30 - 30:00 sellers sellers are stopped here right if I got got green CLE then I can go again mean you just get the references from the candles that who are in a momentum the real momentum okay so this ascending and descending sequence is a tool to read the candles and also it informs you which pattern is tradable which which level is good or not good
30:00 - 30:30 but this is not a complete sequence it's still this is just a one part second part we need to understand then third part we need to understand then fourth part we need to understand then we will complete this you can say this is like a psychology of the candles behavior of the candles on the as the information okay so is it I have one question yes yes the sub uh like you said yesterday we
30:30 - 31:00 can subtract a candle from the previous candles yes like substraction can be done from the from where we can start the substraction from The Source no no not from the source two candles if you want it is in your hand that how many candles you want to subtract for example if you you required only just two candle to subtract because you immediately want to result from the previous two candles
31:00 - 31:30 right or you required the three candles to subtract or you want to subtract the four candles or you if you want to subtract the five it's upon the requirement mostly when we are doing the math CTIC math we are only just subtracting the two candles okay but for example if if you want to create a five minute candle then how many candles you will
31:30 - 32:00 subtract five candles then five candles these five candles or for example if this is also candles done then this five these five candles you will subtract then that will be the complete result of 5 minutes what happened in the previous 5 minute okay is still confused or not are clear no no it's fine okay okay okay so now second part when we will
32:00 - 32:30 understand that we will got got more uh opportunities let's understand this is a reference sequence okay I just change the name okay this part is start from when the sellers is stop or buyers is stop so after four candles or three candles or five candles we got one single red candle it shows that who are stopped the sellers are stopped
32:30 - 33:00 so sellers when they stop it is possible immediately they can again start or if they don't want to start then they give us a reference how if you find another red candle but that is single means that sellers told that when we stop now we don't have a
33:00 - 33:30 supply we don't have a we don't have a supply so if the sellers are a stop and they again told that we don't have a supply so when sellers stop immediately we can trade this pattern the sellers pattern yes or no yes tell me if when sellers
33:30 - 34:00 stops after that if the sellers pattern is created can I trade or ignore ignore yes I will ignore 100% we will ignore because after a stop if we trade this pattern it is very risky okay so this pattern we are not going to trade but for example if that is a bullish pattern can I trade this bullish
34:00 - 34:30 pattern no no as per the information there are three Candles there are two candles momentum is slowing down and I can expect one candle it is possible Right can I trade 55% no no no 50 not 50 there is a signal what do you think it's logical can I
34:30 - 35:00 trade or not because sellers also give me one information so at that information can I go with the buyer or not no look at when sellers say stop they what they told us look at when sellers stop what the sellers told again us then what we
35:00 - 35:30 have we have no Supply we have no Supply supp if they told again that we don't have a supply it means the momentum will be remain same momentum will be remain same or the momentum of the buyers will again increase so if there are not two candles then if there are two candles then that time we will never trade for example okay just we go here
35:30 - 36:00 uh okay now how many have a sellers candle after a stop we got the two sellers candle right and now we got one green candle this time the buyer momentum will be slow down or will be stop that will be the expectation why because when the sellers stops at this that time I found the buyers were three candles then they were two candles and now it is possible
36:00 - 36:30 it can be one candle because after one candle the sellers were immediately started the momentum this time I will never trade this bias pattern but if the sellers If the sellers I one candle then I will go with this pattern I will trade don't think that this momentum will we stop now momentum will continue you can go with
36:30 - 37:00 this pattern right got it or confused I got it sir okay slowly slowly when you will find on the chart also then you will get the more meanings okay but this is not the opportunity in this reference sequence this is generally I'm telling you about how we are reading the candles in the momentum okay but this is not related to the reference sequence okay so in the reference sequence what is
37:00 - 37:30 related only just we read we need to read the Stop and we need to know Supply next time what we are expecting next time when the sellers candle will be up here we will expect that will be again single candle and we will immediately go with a buy so this is a seller scandle so if it is single one time and another time also it is single candle the third time it
37:30 - 38:00 will be single candle or if we can read that the sellers are a sto they told we don't have a supply the third time also that will be not supply but in other case in addition can I trade this pattern or I can ignore definitely I will ignore means also we are learning that which patterns are tradeable and which patterns are ignorable so this is also ignorable don't go with a sell where you
38:00 - 38:30 will go immediately go with the buy the X will be green but now just to tell me can this pattern is tradable this is outside bar for example outside bar means no outside bar means no why because this is the source this is the source of this wave so price reached this L now
38:30 - 39:00 the price will come down that is a sign when outside bar will appear means this Source will work for that the breakout happen mostly shs will think that oh breakout happened now the buyers will continue that breakout is a fake breakout because the source is broken always think that when source is breaking mostly you will find the fake breakouts the market will fall down we will learn more about the breakouts when we will start that topic but this is just I'm telling that this
39:00 - 39:30 source is broken here okay this reference sequence I'm going to show some examples is it different from other videos which we which you watched already on the YouTube or other anywhere is it different very very much different okay okay so now look at here there are two Sellers and then one sellers so
39:30 - 40:00 what's the information the sellers are stopped s stopped for example this is not related to this strategy but I'm just asking the question if I want to trade this pattern and I want this pattern which pattern is more convenient to trade are more easy to trade which give me more confidence to trade which pattern will be good the first pattern if I trade that is good or this pattern I trade that is
40:00 - 40:30 good look here it's a bit confusing sir yeah yes not a problem because that's why I'm uh asking all the points that you can everyone can get look at here when I'm reading this pattern when I'm reading this pattern that this is a bias pattern can I go with bias bias or not definitely if I
40:30 - 41:00 decide to go with a bias pattern then I will look to the sellers what they have a position currently the sellers have two candles means they are in a momentum they are in a momentum even the momentum is slowing down are momentum but the two candles have a momentum so if they have a momentum if I go with the buyer that's wrong but when they tell me that two
41:00 - 41:30 then one the momentum is a stop momentum is stop now the bullish pattern if I trade that is more easy and more profitable means that when the sellers are in a power don't go with a buy when the buyers are in a power don't go with the sale okay so now
41:30 - 42:00 here there is a one candle and then two candles what it shows the buyers are losing the control or they are getting the control getting the control if they are getting the control and the information from the seller side I got that they have a two and then one means stop so can I go with this pattern can I go with this pattern for example if I want to go with a sale is
42:00 - 42:30 that decision is right or wrong it's wrong it's wrong why because all the information is against in the sers so I don't need to go with the sale because sellers already told me we have a we are stop so we don't have a power and this pattern is not tradeable but the buyers are in a power one then two there is a bullish Engle
42:30 - 43:00 fing why I cannot go with the bullish single fing why is there is a red candle why the next candle is not a green because all the information is in the favor of the buyer so why it fails can anyone know s h you know why because of the wck of the red candle yeah is 100% true because there is a information who
43:00 - 43:30 failed in this information at this information bias was failed and sellers controled that area so Supply is available here right and this buyas if want to continue they need to break this Wick otherwise if it closes inside this week the next Candlestick will be sailor candle but as per the information of sellers is stop no
43:30 - 44:00 Supply and then this candle will be also no Supply so after this candle we can go with the buy okay so this is now reference sequence all other information was just reading but now if I just read just leave all the things and I read this strategy when I found the sellers are a stop again I found they don't have a supply the next Candlestick will be single I
44:00 - 44:30 can go with a buy but if I read all the information which pattern is tradable which is not tradeable why there is a green why there is a red candle so the information is very clear here okay if you read the next example here this is related to the bias so three candles and then one what it mean buyer stopped buyer stopped for
44:30 - 45:00 example if the buyers is stopped here a strong Hammer appear can I go with the hammer no sir if this is a pin bar why I cannot go with the buy because the pin bar have a very big wick it shows there is a too much demand but even there is that red candle why that is information in this
45:00 - 45:30 information who failed who stopped buyas stop that's the reason this spin bar is not working and buyas stop again they told we don't have a demand that's the reason this Engle thinging is not working even it's a strong engulfing pattern now you understand that why the pattern fails because of the previous information so three means if they stop
45:30 - 46:00 they know they have don't they don't have a demand they don't have a demand next time also and then red c will be there and then Market continues okay so we can go with this cell as per this strategy but reading candles are also different but don't confuse okay this is a way to read the candles see here
46:00 - 46:30 here I think three then they have a four this doy you can count as rate and after that the sellers are stopped so sellers sto they don't have a supply again when the sellers candle will be third single candle you can expect to buy okay but this is in a consolidation this is another sequence also we just to go another example here that is good in this order two green candle one means what the buyers is stop next time
46:30 - 47:00 they told we don't have a demand and third time also they will tell we don't have a demand go with the sell but if we are not trading this strategy if we are not trading this is strategy just we are reading the candles so when the buyers is stopped immediately the next bias pattern we are not trading if this pattern also told no demand the another pattern also we will not
47:00 - 47:30 trade so this is engulfing this is a piercing line we ignored because of this information but just tell me before this lecture or before this course when we started when you was trading that time you was reading like that that which pattern is not tradeable and which is tradable in in which way you was trading in which
47:30 - 48:00 way you was reading the candle can anyone tell me just yes so whenever I see the pattern because before to this class you know I just use it to watch some YouTube videos whenever the suppose if it is uh engulfing happens then I will wait for another retracement then I will go with the simply simp the direction of the yeah but this reading will is more easy
48:00 - 48:30 right it g the sense exactly okay so there are lot of examples related to this one and this sequences this these these sequences you will find in a Indian stock market in a crypto in higher time frame whatever the time frame you just to check the chart you will find mostly okay so this is also lot of examples and this in this way I'm
48:30 - 49:00 trading from the 2021 now it's a 2024 it's still working means all strategies all concepts are working if we read in a right way okay so now the next sequence this was the second part and now let's start the third part this third part is called the similar sequence okay there's a data I just want
49:00 - 49:30 to read the similarity what is the similar in this data just help me anyone help me to read this data that what is similarity in this one how you are reading the similarity two RS are similarities two r to read our similarity right okay yes this is your way to read the similarity
49:30 - 50:00 that in this series two rate two rate is a similarity any other member read in a different way to red one green to red one green to Red okay this is your way any other member which can read in a different way like reading as a similarity okay so I'm reading here I found that there is a pattern which don't have a retracement there is a
50:00 - 50:30 pattern and which don't have a retracement means a two pattern I found which don't have a retracement this is also the similarity am I right yes in another way also I can read the price creates a lower high again creates a lower high the two time lower high it is a similarity right or I can read that the price creates a low again it creates a lower low this is a two time similar it so this can be similarity okay there are lot of
50:30 - 51:00 different way to read the similarities so all these similarities we will read in the market and we get the answer okay but here the similarity which we are reading that first pattern I found which don't have a retracement second pattern without retracement so if the third time pattern will be appear that pattern also will be without retracement so for example if
51:00 - 51:30 there is a another pattern I can go with a sale so this is a way to trade the pattern If the previous two patterns are working but don't forget ascending and descending order don't forget ascending and descending order okay now there is another sequence which is random sequence but it is related to the similarity now there are a two red candles and then three red
51:30 - 52:00 candles so here the similarity is same pattern don't have a retracement pattern don't have a retracement so next pattern if I found then I can go with the cell okay so let's identify the examples
52:00 - 52:30 so he traded here this candle what's the reason the first pattern have no retracement another pattern have no retracement and then he Tred it okay this pattern don't have a retracement this pattern don't have a retracement then this pattern don't have a retracement so also there's a
52:30 - 53:00 similarity and here you can see this is which sequence it's a similar sequence or it's a random sequence random sequence random sequence one green candle with patn continuous Patron with continuous and the pattern continues and here again you find the
53:00 - 53:30 similarity okay and another reference sequence also you found the two red candle and one red candle is STO this is telling no Supply and this candle creates a pattern but it will be called No Supply and we go with the buy so there are lot of examples here related to the these sequences all PDF I will share and then you just read so this is your today's work on the
53:30 - 54:00 sequences read the chart and note down all the queres what the queres you are getting and on the next class we will learn another way like a market cycle and price action way to trade the patterns but this is the best way today's way is the best way market cycle is also best as compared to the priz action is there any query right
54:00 - 54:30 now no from my side sir okay so I'm giving the time just rewatch the video and if there will be any query generate a write down and then tomorrow you can ask the C okay so sure sir it's for today inshah tomorrow we will meet thank you thank you so much you thank you sir thank you so much thank you welcome