How to Read Candlestick Charts (with ZERO experience)

The video begins with an introduction to technical analysis and the importance of understanding candlestick charts for traders. It emphasizes that most traders who lose money do not properly understand these concepts. The video aims to provide a comprehensive breakdown of technical analysis, highlighting its universal language across various financial instruments. The speaker encourages note-taking and offers recommended reading for further learning.

This section delves into the specifics of candlestick charts, explaining how they provide more information than line charts by showing open, close, high, and low prices. The speaker discusses how the shape of a candlestick can communicate market sentiment, with examples like a red candlestick indicating weakness and a green one showing strength. The importance of recognizing reversal signals, such as shooting stars and hammer candles, is also emphasized, as they can predict changes in market direction.

The speaker introduces multi-candlestick patterns like the bull flag, which involves a strong move followed by a pullback and then a continuation of the trend. The video explains how to identify and trade these patterns, including the importance of not retracing more than 50% of the initial move. The concept of counter-trend and trend trading is discussed, with a focus on recognizing reversal candles and using them to inform trading decisions.

This part of the video discusses the role of technical indicators in providing context for current price movements. The volume-weighted average price (VWAP) is introduced as a key indicator, showing the equilibrium point of a stock and acting as a level of support and resistance. The speaker also talks about different time frames for trading, from one-minute charts to daily charts, and how they can be used by active traders, investors, or swing traders.

The speaker explains the concept of support and resistance levels, which are crucial for understanding price behavior. The video covers how prices react when they break through these levels and how previous resistance can become support. The importance of recognizing gaps and windows on the chart, where there is no support or resistance, is also highlighted. The speaker demonstrates how to identify these levels on a daily chart and how they can influence trading decisions.

The video introduces the concept of multi-timeframe alignment, where traders look for confirmation of trading opportunities across different time frames, from one-minute charts to daily charts. The speaker emphasizes the importance of aligning trades across multiple timeframes to increase the probability of success. The video also touches on the psychological aspect of trading and the importance of trading instruments that are moving quickly and have volume.

This section focuses on identifying ascending and descending support and resistance levels on intraday charts. The speaker explains how these levels can influence intraday price action and how to draw trend lines to recognize these patterns. The video also discusses the significance of testing these levels and how they gain validity with each test. The speaker provides examples of how prices interact with these levels and how they can be used to inform trading decisions.

The speaker shares his personal trading strategy, which is based on over 24,000 trades. He explains the process of finding a moving instrument, checking data points like float, daily gain, volume, and relative volume, and then analyzing the chart. The importance of the 200 moving average as a resistance level on the daily chart is highlighted. The speaker also provides book recommendations for further learning and concludes the video with a call to action for viewers to subscribe and engage with his content.