Okay, so in this section right it's about entry trigger. So let's do a quick recap. What you've learned so far! So so far you have learned about market structure. It tells you what to do.

Should you be looking for buying opportunities, selling opportunities or to stay out of the markets? There we covered about area of value. There are two things we covered in area of value, uh, support resistance and moving average, and these are tools that you can use right to tell you know where to buy or sell so market structure tells you what to do. Area of value. Tells you where to buy or sell and now we're moving to the third component entry trigger.

This tells you when to buy or sell okay, so entry trigger. There are many ways you know you can use the many tools out there to help you time the market, but what i find personally to be very useful is candlestick patterns, and i want to dive deeper into this section since i find it so useful. So what is candlestick pattern? So candlestick patterns is a method of reading a price chart. Of course, it's not the only way you have bar chart.

You have line chart of all the different types of chart out there. So candlestick pattern is just one of the methods to read a price chart and it's obviously one of the more popular approaches. So how do you actually read a candlestick pattern? One thing to understand is that there is four data points for every candlestick pattern. You have the opening price, the closing price and the high and low of the session.

So if your candlestick pattern is let's say on the one hour time frame, then what you'll see is that the highest price point over the over the last one hour and the low is the lowest price point over the past one hour. So a little bit more about candlestick patterns is that you can use it to trade different time frames. So, for example, if you see a candlestick pattern on the one hour time frame, it simply means that, on a one hour, time frame every one hour, a new candle is formed. If it's on the four hour time frame, every new candle is formed every four hours and if you're on the daily time frame, one candle is formed every single day same for the weekly monday same concept.

So now let me explain know how to actually read a candlestick pattern, so you'll see primarily two types of candlestick pattern. One is green and one is red, but let's talk about the green one. First so remember, i said that there are four data points. So how do you actually? You know uh know where are the four data points so very simple for green candle? It simply means right.

The price has closed above right, the opening price. So let's say this is like a one hour: candle. Okay, let's say this is a one hour candle, so what it tells you that the price right has closed right higher than where it was one hour ago. So that's why it's great right.

He has closed higher. You know compared to where it was at the opening price one hour ago. So that's why it's great, so the opening price will be at here and the closing price will be here. This is the only way for the closing price to be above the opening price.

The closing price has to be higher than it. So that's why it's green, it's bullish, so the opening price was once again over here. It is line, and over here is the closing price, we'll add in some numbers later on, so you can see how it all makes sense. So what about here? This simply means is the highest price point over the last one hour, if you're on the one hour time frame - and this is the lowest price - the market has win right during the past one up one hour right is the lowest price point.

So this is the high highest price point over the past one hour and the lowest price point over the past one hour. Of course, if we change this to a different time frame to the eight hour time frame, the daily timeframe concept is the same. So let's say we try the weekly time frame, let's take another one hour, the weekly timeframe. So what does it mean? It means that at this price point of the candle, that is the highest price point right over the week over the past one week - and this is the lowest price point over the past one week over here - and this is the opening price of the week.

And this is the closing price of the week, so same same concept, so now what about great candle? So this is just the inverse. So if you recall this over, here was the closing, and this is the opening. So the closing price is higher than the opening price. That's why it's bullish! That's why it's green, but for a rate candle.

It simply means that the closing price is below the opening price. I repeat right: the closing price is below the opening price for a rate bearish candle, so your closing price has to be here see and over here is your opening price. That's the only way right for this candle to close lower is if the closing price is below the opening price, and likewise over here is the highest, and this is the lows exactly the same concept. So if i do, you know piece all this together, you will have a chart that looks like this okay.

This is what i just said earlier, so a little bit more uh, so-called technical definition, if you want so, we call this color thing, the body and this this line over here we call this the the upper wick or upper shadow, whichever you know, whichever term that You you prefer there's no right or wrong over here, and this is what we call the lower wick or lower shadow okay. So this is how you read a candlestick pattern now moving on. Let's, let me let me share with you how it looks like right on a real chart and how you interpret it. So i'm going to look at this uh currency pair.

Let's look at the daily time frame. This is aussie against the japanese and i'm going to zoom in so you can see what so we are on the same page, so you can see over here i am going to. I want you to pay attention to these numbers over here all right. This is the opening price.

This is the highest price point over the last one day. This is the lowest price point over the past one day, and this is the closing price, and this is the percentage change right in pips, so this number will move right depending where my mom's cursor is so pay attention. So let's look at the most recent one. This candle here - how do we interpret this? So let's interpret this together, one by one so for this candle it tells you that this market opened at 83 589, so it opened at this price point.

83. 589. The highest price point for the day is 83.788, which is over here 83.788. The low of the day is 83.036, which is here the low of the day 83.036 and the closing price for this.

This uh this market for this day is 83.529, which is at this price point over here. Does it make sense? So let's do one more example: how about the dollar against the japanese yen? Okay, now we have a green candle so same same thing right for this market, the opening price. What does it say? 109.248? This is the opening price 109 248.. Where is the highest price point for the day? 109.96? 109.99? Where is the lowest price point? For the day 109.193 over here 109.193, and where is the closing price for the day 109.614 109.614 along the ways, you will probably see some candles where they are missing a body man.

The candle is weird right now, where's the body, so this is usually when you're opening and closing price are too near one another. Where you get a very almost a non-existent body kind of like this one. Here, look at this right, almost a non-existent body so yeah it happens, especially when the opening price and the closing price are very near each other. So if you have a look at this right, let me just see what the numbers are, so you don't freak out.

So for this candle, the opening price uh opening price for this is 103.76 and the closing price is 103.75 okay. So this is why you can see they are just like a three pipette different 0.3 tips different. So that's why their body is almost non-existent. So this is how you actually read a japanese candlestick chart so moving on right.

So now you know the basics right. How do you, actually you know, or rather how do you use it to time your entries, so to do that right, you want to focus or learn a few patterns right to help. You do so, and there are two patterns or maybe four patterns that i want to share with you. So first, let's talk about the bullish, reversal, candlestick pattern and understand what is it, how it works and the story behind it? So the first pattern i want to share with you is what we call a hammer so different candlestick patterns.

They have different names, they have hammer harami engulfing. You know dark cloud cover and stuff like that. So that's really really really a lot out there, but i'm not going to teach you everything, because it's not needed right as you progress and learn and grow as a trader. You realize that hey most of these patterns are pretty much a variation of one another.

So i'm going to share with you the most common variations, the most useful ones and after which you can go on and explore the other. You know patterns out there and, of course, the basics. I've already taught you so you can just you know, stack upon what you've learned and to to learn even more so first one is what we i call ornate. I call it right people, you know others out there, the technicians, i call it a hammer.

So, let's understand what hammer is about so again: where is the opening price price open over here? Where is the closing price for green candle? The closing price has to be above the opening price. So it's here, where is the high of the day over here? So, let's assume that this is a daily candle right. The high of the day is here, and the low of the day is over here. So what's the story of this hammer, so it's quite interesting right.

You can imagine like that, for when the market opened over here, the sellers they were in control like out of the gate right there like barbarians, you know running out the gates and they pushed the market. They pushed the price down near the lows of the day. Then, when all the buyers, they all defeated, all right, then somehow rather there's like one tall, one captain america from the middle of nowhere, sheltered, avengers, assemble and then they all unite and you know push the price up all the way up higher. Finally, closing near the highs of the day, so you can imagine that this kind of stuck a four between the buyers and sellers right when market open sellers came in and smashed and you know, uh pushed the price all the way down suddenly sometimes in the middle Of the day, the buyers they woke up right, they assemble they unite and they push the market all the way up to close near the highs of the day.

So this tells you that hey, you know the buyers are now in control. That's why they managed to push the price right push the price all the way near the highs of the day, and this is what we call a hammer, because you kind of look like a hammer. Okay, so another another pattern. That's worth learning is what we call a bullish engulfing pattern, so the story is very similar, but this time around, it's expressed right using two candles.

So for this one over here this is a rate bearish candle. So you can see that the sellers took control and close the price right near the lows of the day, so the buyers are all defeated. Ah, you know injured or really painful the next day right, somehow the the buyers they got revived right. They grew stronger right.

Maybe they put, you know a little bit too much steroids in their body or or whatsoever, take some magic potion and they they push the price right to close near the highest of the day. Once again, so they pretty much just overwhelm right. The selling pressure of the previous day - how do i know that? Because you can see that the range of the candle or the range of the body over here was previous previously from this opening price to this closing price, but the next day it opened low and closed even higher than the previous day opening price. So you can see that the buyers has even overwhelmed right, the the sellers right by a lit even a little bit more.

So this is what we call a bullish engulfing pattern, so next one the opposite of uh bullish, candlestick patterns right. This is what we call the bearish reversal, candlestick pattern, so there are two as well. This one is called a shooting star, so this is actually the inverse of a hammer. I'll just explain the story behind this.

So, since you know it's a rate, color candle opening price is here, closing price is here so what happened right? So you can see that when the day started right, let's say this: is a daily candle buyers, push the price all the way up this higher and mark this highs for the day and then suddenly the sellers came in, you know, took control and pushed the price Near the lows of the day, finally closing near the lows of the day right so the buyers or you know when the market just opened. Oh i'm really excited you know: let's not push the price up higher, then somehow middle of the day. You know things got depressed, you know, maybe you know he got reminded of his ex-girlfriend item this x sweater. Let me throw this sweater, let me sell, sell everything and then the market collapsed and sell, sold off and nearly pretty much closed near the lows of the day.

So you can see that initially buyers, they had the upper hand, but they were overwhelmed by the sellers. Right towards the end of the day, so this is where you get a shooting star. So for this bearish engulfing pattern right, it's pretty much uh same uh, similar story, so we can see for the first candle. It is bullish.

Right buyers are happy woohoo. I celebrate right. They have closed near the highs of the day, but for the second day right, the sellers to control and push the price right all the way down, lower exceeding even below the lows of the previous day and the and even the opening price of the previous day. They closed near the lows over here, so we can see that the buyers once again they were defeated.

Ah i know you know injured, hospitalized and they'll. Never i won't. I don't want to say never to recover because in the market it always always goes up. Goes down so, for now i would say the sellers has temporarily won the war okay for now.

So let me share with you a a few uh charts all right. So you know how this looks like on the chart and you can see that you know all the different variations of it out there. So let me point out to you the first one: let's have a look at how about dollar against the japanese yen, so you can see over here. This one looks something like a in between a shooting star and a bearish engulfing pattern.

Then we have this one. As well more of a shooting star, if you look at other examples like euro against the usd you can see over here, this is similar to shooting star. But the difference is the body of the candle is green. So again, when you trade the market, so it doesn't mean that it has to be a textbook example.

It has to be read to be red color. Sometimes it can be green as well, but the meaning is pretty much the same because if you look at this right, this is the price rejection that you have seen right. The buyers tried to push the price up higher, but got overwhelmed by the sellers and finally closed right near the lows near the opening opening price of the day over here you have a bearish engulfing pattern. Right.

Look at how this range of the candle has. You know overcome right, the body of the previous uh day and uh. This is a bullish, engulfing pattern notice. How the body of this candle has you know is larger right and closer right, even above the highs and the opening price of the previous day.

This is a bullish, engulfing pattern and then this is another bearish engulfing pattern and yeah so later, we'll look at some chart. Examples uh. You know in terms of the uh, the market structure, area, value, entry trigger and stuff like that. But for now let's do a quick recap, so i know i've covered a lot so number one remember: market structure, it tells you what to do.

Should you be looking for buying opportunities, selling opportunities or to stay out of the markets? Then we have area of value which tells you know where to enter a trade. You know where, and finally the thing that we just covered entry trigger tells you when to enter a trade and by the way, if you're, enjoying this training so far smash the thumbs up button. If you are not, then hit subscribe and then smash the thumbs up button, you.