Forex Price Action & Candlestick Patterns for Day Trading

This lesson introduces beginners to what forex trading is all about, explaining how currencies are exchanged in pairs such as EUR/USD, and how the market operates 24 hours a day, five days a week. It covers key concepts like leverage, pips, spread, and margin, as well as the importance of risk management and trading discipline. You’ll also learn about the main trading platforms (MT4, MT5, etc.) and how to use tools like the economic calendar to track major financial events. The lesson concludes with practical advice for beginners—start with a demo account to build confidence before moving to live trading.

This lesson provides a clear introduction to Price Action Trading, a strategy focused entirely on analysing raw price movement without using technical indicators. It explains that price action traders rely on candlestick patterns—like the Doji, Engulfing patterns, and Pin bars—to interpret market sentiment and predict reversals or continuations. The lesson also covers core concepts such as support and resistance, trend analysis, and chart patterns like head and shoulders, double tops/bottoms, and triangles. It highlights how traders use these formations to identify entry and exit points while understanding market structure. The video concludes by outlining the advantages (simplicity, flexibility, market psychology) and challenges (subjectivity, need for experience, and trading risks) of price action trading, stressing that success depends on skill, patience, and proper market understanding.

This lesson gives an overview of three essential price action concepts — Support, Resistance, and Trend — and how they interact with candlestick patterns to guide trading decisions. It explains that support acts as a floor preventing further price drops, while resistance serves as a ceiling limiting price rise, both determined by past highs and lows. The video also covers how trends (uptrend, downtrend, or sideways) reflect the general market direction. Students learn how candlestick patterns like hammer, shooting star, engulfing, and morning/evening stars form at key levels to signal possible reversals or continuations. The instructor emphasises waiting for confirmation candles before entering trades, reinforcing the idea that no setup is ever certain in forex trading.

This lesson introduces learners to essential tools and platform setup for forex trading, focusing on practical use of charting software for price action analysis. It begins with guidance on selecting and customising trading platforms such as MT4, MT5, CTrader, NinjaTrader, MatchTrader, and TradingView, explaining how to personalise chart settings, colours, and candles. Learners understand the importance of saving and verifying analysis setups, using tools for drawing and pattern recognition. The lecture then explains the structure of candlesticks — body, wick, shadow, and colour — and how they reveal market sentiment. It also covers major candlestick patterns, both bearish (e.g. Hanging Man, Shooting Star, Bearish Engulf, Evening Star) and bullish (e.g. Morning Star, Three White Soldiers, Bullish Engulf, Hammer). Finally, it teaches how to interpret these patterns to spot reversal and continuation signals, reinforcing that confirmation is crucial before entering trades.

This lesson explains how to select the right time frame for price action analysis based on the type of trader you are. It introduces three main trader categories — scalpers, intraday traders, and swing traders — and shows how each uses different time frames to plan entries and exits. Scalpers focus on very short time frames like 1–2 minutes, using larger lot sizes for quick trades. Intraday traders operate within the same trading day, often analysing on 1-hour or 4-hour charts and entering on 15 or 5-minute charts. Swing traders use higher time frames such as daily, weekly, or monthly charts, holding trades for days or weeks. The lesson helps learners identify their trading style and match it with the ideal time frame for consistent results.

This lecture introduces technical indicators, essential tools traders use to analyse market movements and identify trading opportunities. It explains key indicators such as Moving Averages (for identifying trends), MACD (for detecting momentum changes), Bollinger Bands (for volatility and breakout signals), RSI and Stochastic Oscillator (for spotting overbought or oversold conditions), Volume (for confirming trend strength), and Fibonacci Retracement (for locating support and resistance levels). The lesson emphasises that no single indicator guarantees accuracy, and understanding how they interact helps traders build a stronger, more reliable trading strategy.

This lecture provides a list of recommended books, websites, and trading communities to help traders deepen their knowledge beyond the course. It encourages continuous learning through personal research, reading, and community interaction. Key resources include books like Technical Analysis of the Financial Markets by John J. Murphy and Trading for a Living by Dr Alexander Elder, along with forums and websites such as Forex Factory (for economic updates), BabyPips (for beginner education), TradingView (for chart analysis), and Investopedia (for trading concepts). The lesson highlights that mastering trading requires time, study, and active engagement with learning platforms.

This lesson explains how to identify the three major market phases — ranging, trend, and consolidation — using real-time chart analysis. It shows how traders can recognise when the market is moving in an uptrend, downtrend, or sideways by using tools such as trend lines and volume confirmation. The lecture also clarifies the difference between ranging and consolidation, noting that ranging occurs at support or resistance zones while consolidation happens mid-market. Finally, it discusses short-term and long-term trend lines, advising traders to analyse higher time frames for a clearer picture of the market’s overall direction before making entries.

This lesson explains the key participants in the forex market and their impact on price movements. It introduces major players such as central banks, commercial banks, hedge funds, government institutions, brokers, and retail traders, describing their different roles in shaping market activity. The lecture also demonstrates how to identify institutional influence on price charts through signs like large volume spikes or strong candle movements, often linked to smart money activity. Students learn that retail traders have limited influence, typically seen during periods of consolidation, while institutions drive major market moves.

This lesson explains the concept of order flow analysis, which focuses on understanding the buying and selling activities in the forex market. It highlights how orders from institutions, banks, hedge funds, governments, and retail traders interact to move prices. Order flow involves tracking volume, market depth, order types, and imbalances to anticipate potential price directions.

The instructor explains that order flow represents how different market participants execute trades at various price levels, influencing upward and downward movements. Using chart examples, the lecture demonstrates how institutional orders cause shifts in price structure — creating trends, pullbacks, and continuations. Finally, it connects order flow to market structure analysis, stressing the importance of studying higher to lower timeframes to understand how price behaves and to make informed trading decisions.

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CLASSES OF BULLISH CANDLESTICK

(0:00) Welcome to this video and in this lesson we are going to talk on

classes of bullish candlestick. (0:08) So in our previous video we listed

and explained some of the important bearish candlestick that (0:18) we

have in the market that always force an option or a bullish market to

reverse. So in this lesson (0:25) we are going to look at bullish class of

candlestick pattern that when you spot them in the market (0:31) that

means a downtrend is coming to an end.

So the first one we have on the list here is three (0:37) white soldiers. A

bullish candlestick pattern known as three white soldiers or in this case

(0:44) I'm going to call it three green soldiers. And so you guys

understand why I'm changing (0:58) this to green.

My bullish candle is green right here and this is how I set my candle body.

(1:06) Anybody can choose to set his or her own to any color. So I

change this to call it three green (1:12) candles because I'm using green.

A bullish candlestick pattern known as three green soldiers (1:16) is used

to forecast the reversal of the present decline in the price chart. The

pattern consists (1:23) of three long body candlesticks that open within

the junior body of the preceding candle and close (1:28) above the high of

the preceding candle. So this is the three green soldiers.

One, two, three. (1:36) So this is typical bearish or bullish reversal. So

whenever you see this form in the market (1:43) you should know that a

downtrend is coming to an end.

Hence we should expect a bullish market (1:50) next for some time. Let's

say some hours or some days. So this is one of the strong bullish (1:57)

candlestick.

Whenever you experience this don't forget that when you spot this you

can't just (2:03) run into the trade because if this form, personally

I don't like trading this. (2:08) I don't like trading this. Personally I don't want to

mislead anybody because if this candle, (2:16) this is very strong candle

one, two, three.

So if you jump into the trade after spotting this (2:22) is a very bad and

wrong entry. So it is either you wait for the price to break the recent high

(2:30) in the market and make a pullback to retest. Then you take entry or

you allow it to come down again (2:35) and form a double bottom pattern

before you enter again.

I don't like jumping to this after spotting (2:41) this but just know that

whenever you see this form, so buyers are coming into the market and

(2:47) they are coming with very strong pressure. So that is one of them.

Then the next one we have (2:53) is Morning star.

A three-candle bullish reversal candlestick pattern known as the Morning

star (3:00) typically appears at the bottom of the downtrend. It shows a

low in downward movement, (3:05) downward momentum before a

significant positive move establishes the basis for a fresh uptrend (3:11)

or uptrend. So this is how the Morning star looks like.

You can see bearish and bullish candles (3:16) almost on equal sides. But

please when spotting this on a real-time chart, don't expect it to be (3:22)

this perfect or exactly like this. But you should know that both candles

should look almost the same, (3:28) the same height, the same close, the

same open.

Then you spot a doji just like a hanging man (3:36) in between them. So

this is a strong bias signal. Whenever I see this (3:43) in a support zone, if

I see this in a support or a demand zone, you know that buyers are taking

over (3:50) the market next.

Hence the bearish trend has come to an end. So that is the next Morning

star. (3:58) Then the next candle that we have is bullish engulf pattern.

Recall we explained what bearish (4:05) engulf pattern. So this time

around it is opposite. When we talk of bearish engulf, (4:11) this was a

green candle and this was a red.

So in this case, this is a green candle and it is (4:18) green that completely

engulf the third candle. So whenever you see this, this is one of the strong

(4:25) and most popular candlestick pattern in trading markets. So

whenever you spot this, get ready (4:30) to take a buy setup or a buy

entry trade because that trade is going to buy for some time.

So (4:39) always look out for this and to spot all these candlesticks,

demand time and dedication. (4:44) So you have to dedicate and be

consistent. (4:57) Then we have the inverted hammer.

The inverted hammer candlestick pattern, (5:05) also known as the

inverse hammer, shows on the chart when buyers are exerting pressure

(5:11) to raise the price of an asset. It frequently occurs at the bottom of

downtrend, indicating (5:16) the possibility of positive reversal. So you

can see the name, inverse of hammer, which means (5:24) hammer is the

other way around.

Hammer have the longer width on the lower side. Meanwhile, (5:28)

inverted hammer is upside down. So whenever you see this in a support

or demand zone, (5:36) please be ready to take a sell setup.

That means, I mean a buy setup. That means sell trend is (5:43) coming to

an end. Hence, bullish are taking over the market next.

Here's the hammer. You can see (5:51) hammer is upward while inverted

hammer is downward. At the end of the downtrend, you can look for the

(5:57) single candle bullish reversal pattern, also known as the hammer.

There is a long width that (6:03) continues lower and is around twice as

big as the short body, while the opening price, close and top (6:10) are

all roughly at the same price. So this is the inverse. I mean, hammer, which

is (6:18) the inverse of inverted hammer.

So this is the close price. This is the open. I mean, this is the (6:24) eye.

There is no upper width or shadow. But don't forget, I said that when

spotting it on a real (6:31) time chart, sometimes this may have a small

upper shadow, but it's going to be very small and tiny. (6:38) You can

compare it to even three quarters of what we have on the lower side.

It's going to be very (6:44) short. Sometimes it comes completely like this

flat. The high doesn't have any pullback.

It is (6:50) like this complete. So whenever you spot this, just know that

sellers are leaving the market. (6:57) Hence, buyers are taking over.

Then the next bullish candlestick that we have is piercing (7:06) pattern.

The piercing pattern. A piercing pattern is a 2D candlestick price pattern

(7:15) that donates a probable brief change in trade from a downward to

an upward one.

The pattern (7:21) contains a trading range of average or greater size on

the first day with the opening around (7:27) the high and the closing near

the low. So what this simply implies is that if you want to spot (7:34) this

candle, then it should be on a daily time frame because this takes two

days. (7:41) Meaning this takes the first day and this takes the second day.

Then your setup should come on the (7:48) third day. So this is how it is.

This one comes in twos.

Please don't forget all this hammer, (7:54) inverted hammer. Sometimes

it's not two candles, it's just one. We are just showing illustration (8:00)

that may come in different forms, colors.

So this is daily time frame. Certainly you can see (8:08) how the first day

close bearish, very strong with short upper and lower week. Then the

second day, (8:17) look at where the second day open and the opening

and the close and also with almost (8:24) upper and lower shadow or

week.

So we simply need this day one, day two. Then your setup should be

(8:30) ready by day three. So those are traders that use bigger time frame

like the swing traders.

(8:37) Or for intra day traders, sometimes you can go to daily time frame

to spot the pattern form. It's (8:43) going to help you to know the

direction to focus on when reducing your analysis to smaller time (8:51)

So this is one of the bullish candlestick that we have. So whenever you

spot this, (8:56) you know that buyers are coming to the market.

Then we have the bullish pin bar. Don't forget (9:01) we had bearish pin

bar. So this time around we have bullish pin bar.

So this image is a big (9:08) threat. Lower price are rejected by bullish

pin bar. This is price rejection.

You can see, (9:17) we all know that this candle was long. The candle

body was long down to this level that we have (9:26) the loose of the

candle before we now experience a pullback and close like a pin bar.

Sometimes (9:32) it may not have the upper week or sometimes the upper

week may not be long like this.

So you have (9:37) to take that into consideration. The pin bar candle

lower week indicates that although the (9:44) bulls eventually won out,

the bears initially held sway. An indication of price rejection is (9:52) a

bearish pin bar.

The upper week indicates that the bulls initially held the upper hand (9:58)

or that the bear is ultimately prevailed by pushing the market upward. So

whenever you see (10:07) this kind of setup or this kind of candle

formation, be ready to take your buy entry. (10:13) This is a very strong

signal.

Bearish candle very strong. Then we have a pin bar which is almost

(10:20) like a doji candle. But in doji we have this body of the candle

almost at the center.

But this very (10:28) one, the body of the candle is a bit upward. Then

next we have a very strong bullish candle. So (10:35) whenever you see

this, be ready to take the buy setup.

So these are some of the other types of (10:44) candles that we have in

the market. We list inverted armor already and we have the shooting

(10:50) star. This live demonstration on chat screen shop.

We have the dragon doji. We have the dark cloud (11:00) cover. Dark

cloud cover pattern.

So there are so many of them. There are so many of them. So (11:08) you

can do well to research and read on them before you may actually decide

to settle on those (11:15) ones that have not been stated.

But these are some of the key ones that you may easily spot (11:20) in the

market. Very easily and popularly known and used by price action traders.

(11:27) So that's all in this lesson.

See you in the next class. Thank you.

Welcome to this video and in this lesson we are going to talk on advanced

candlestick patterns and their significance, what they actually stand for.

Candlestick chart patterns, a chart pattern is a shape found in a price

chart that aid in predicting future price movement based on past trends.

The fundamentals of technical analysis are found in chart patterns which

demand that a trader is good aware of what they are looking at and what

they are searching for.

Then we have types of chart patterns. Just like candlestick trading

patterns are classified into two main class of types. These include the

bearish continuation or reversal pattern.

Okay let's take the bearish continuation and reversal pattern because we

are going to discuss both. Then we have bullish continuation and bullish

reversal chart pattern. Those are the types of chart patterns that we have

in forex market.

So we are going to take our time to outline each of the types. So under

bearish continuation pattern, bearish persistence when a fallen price

pauses, consolidated and then resumed, heading lower, candlestick

patterns are formed. They frequently take place when buyers and sellers

talk to evaluate their trading position, enabling the market to gain

momentum for the following move in the trend direction.

So these are the types of bearish continuation candlestick pattern that we

have. We have the bearish rising wedge, we have the bearish descending

triangle, we have the bearish flag and we have the bearish pennant. So

under bearish rising wedge, you can see this is typical illustration.

A rising wedge is sometimes regarded as a bearish chart pattern that

indicates a trend following a bull run. A rising wedge is said to indicate a

potential negative breakthrough. The patterns like previous which widen

near the bottom and then contract as the price rises and the trading range

gets smaller.

So this is what that implies. Rising wedge look at the price was coming

downward which actually represent a bearish run or bear market when

you expand that. All of a sudden you can see a kind of consolidation

upward.

So this is a typical bearish rising wedge. So whenever you see this, you

know that the price is going to continue downward. So how will you

know that the price is going to continue downward or when should you

jump into the trade? So you put a two trend line that look like a

triangular form.

What you're waiting for is when price is going to break out of each of

this trend line. And in this case, concentration should be to the lower

trend because it's going to break downward. So whenever you see this,

know that this is a continuation pattern.

Hence, the bearish trend is going to continue after a breakout. The next

pattern that we have is bearish descending triangle. The descending

triangles are a bearish shape that signal the beginning of a downtrend.

The descending triangle is a bearish pattern that typically develop as a

continuation of a downward trend. Descending triangles can occasionally

develop reversal patterns at the end of an uptrend, although they usually

do as a continuation pattern. So personally, I trade this as a continuation

pattern. So whenever you see this, know that price is going to continue in the

same direction. So look at the price was coming bearish. Then all of a

sudden, it started ranging or consolidating.

So all what you have to do is to put a trend in a triangular form. As the

price keep on ranging, all you have to do is to expand the triangle until

you see a valid breakout on the downside.

So once you see a breakout with the full body candle, not a fake breakout,

know that the trend is going to continue. Hence, bullish continuation. So

that is another type of continuation pattern that we have, bearish

descending triangle.

Then we have the bearish flag. Bearish flag. Why this is called

a flap is because if we mount the flag that we know in a real life scenario,

this is the main flag and this is the rod that is always used to tie or pin the

flag down.

So a bearish flag is a candlestick chart pattern that donates the end of the

monetary half and the beginning of the downtrend expansion. So this is a

continuation. This is a bearish continuation pattern.

Price was coming downward. All of a sudden, you see a kind of

consolidation tent to make an upward attempt, though it cannot really go

up.

So what you have to do in that case, always put a trend line. As the

consolidation continues, keep on expanding the trend line until you see a

valid breakout. Then once you see a breakout, you took your entry.

Note that the number of pips you took this trade upon breakout of a

structure. If this was a 50 pips movement before you experienced a

consolidation, then once the breakout takes place, price is going to move

at least exact 50 pips. So if you calculate for the breakout of structure

on the upper leg of the flap, it was 50 pips, then you can target 40-45 pips

once the price breakout. So that is one of the bearish continuation pattern

we have. So whenever you see that in the market, note that the sell trend

is going to continue. Then we have the bearish pennants.

A technical trading pattern called a bearish pennants suggests that the

price decline will likely continue. They are exactly the antithesis of

bullish pennant in that the market stopped on the last move down rather

than consolidating after a move up. So this is how it is.

This is a real chart screenshot and you can see the sketch also. So the

bearish pennant, so this is a bearish run. All of a sudden, you start seeing

a consolidation.

So what you have to do once this consolidation starts, just put in a trend

line and join both together and wait for a breakout just as we explained

in the other types of bearish continuation. So you can see an arrow

pointing to the breakout region. So you are waiting for a breakout of this

lower trend line, triangular trend line.

So it is simply equivalent from the structural breakout to where the

consolidation took place. Once the price breakout, you should target the

same or almost the same number of pips. You can see how I did the

illustration using these tools, meaning if its was 40 pips from the

structural breakout to this pennant consolidation.

Once the price breakout, you should target something almost close to that.

You can target the same number of pips so that price will not come, stop

halfway and return back while you miss your target in case you were not

looking or watching or monitoring the trade live. So if this was 40 pips,

when you ) come down, when the price breakout always target 35 pips or

something close to 40 in order for you to be safe.

So this is, that is all on bearish continuation and next we are talking on

bearish reversal pattern and we have some of the bearish reversal

pattern that we have include bearish double top, bearish head and shoulder,

bearish triple top, systematic triangle. So let's look at each of them briefly.

Bearish double top, this is a bearish double top.

It comes in a form of letter M, in a M pattern. This is the top one, this is

the second top, this is the swing low or you call it the neckline and the

price continues. So when you see this, know that the trend has changed

in character, that the bullish movement is going to reverse or the bearish

movement or the bearish market is coming in.

So if you're ready to take and sell trade, you can see this was a buy trade.

Then when the price come, it found the first top, come down, then return

back to find a double top, then give a neckline and then the bearish

pattern continue. So whenever you see that in the market, you're ready to

go short.

Then we have bearish head and shoulder pattern. A price reversal pattern

called head and shoulder helps traders determine when a trend has run its

course and a reversal may be in progress. So head and shoulder pattern,

this is typical illustration.

Let me zoom this one because this one is a live chart illustration. Helpful.

So you can see this, this is known as the head.

This is called the left shoulder and this is the right shoulder. And this is

the neckline. So whenever you see this, know that sellers are coming into

the market.

You should be ready to take a short entry. This is a sketch of the same

head and shoulder. Let me expand this so you can see the sketch properly.

So this is a sketch. Head, left shoulder, right shoulder. Then this is

inverse, inverse head and shoulder.

So on the inverse, this happens on the lower side, the neckline comes to

the up. So that is that on bearish reversal, head and shoulder pattern.

Then we have bearish triple top, where the price test supply or resistance three

times.

First top, second top, third. But when you're watching out for this, please

don't expect it to be this perfect and equal. You're going to certainly

experience a liquidity sweep when watching the situation where one will

shoot up like a kind of fake attempt to break out or return back.

So whenever you see something like this, triple top three times testing.

And this, please take note, this always happens in a zone. It happens in a

zone, in a resistance or supply zone.

So whenever you see this, know that big market is coming into play. You

should be preparing to take a short trade. Then we have systematic

triangle.

Systematic triangle. Systematic triangle is a type of chart pattern that

consists of two trend lines that converge and link a sequence of peaks

and troughs. Generally, this can be bearish or bullish depending on the

market condition.

So whenever you see something like this, this can happen on any trade,

whether up or down trade. It depends if the price was coming from the

up and you started seeing consequences. Then you should be expecting

an upper side breaker with signified bullish continuation.

So whenever you see each of these patterns, you should be able or know

how to approach the market. So the next is bullish continuation. And

under bullish continuation, we have bullish ascending triangle, bullish

rectangle, bullish flat, bullish pennant, bullish double top, inverse head

and shoulder, inverse head and shoulder last.

So this is simply the inverse opposite of what we just did on the bearish

demonstration. So this is a bullish ascending triangle, meaning the price

was coming from the up. The price was up trade. All of a sudden, look

at the kind of concentration inside the rectangle. So

what you should always do in this case, you are targeting the upper trend

of the rectangle. Meanwhile, on the bearish, you are targeting the

downward trend because possibility of down breakout is high.

In this case, possibility of upward breakout is what we are looking for.

So whenever you see this, take note and know how you approach the

market by putting a trend line and wait for a breakout. Then we have

bullish rectangle.

Situation price comes from the downside. Then all of a sudden, it started

concentrating ( in a kind of rectangular form. So what you have to do is to

put the price in a rectangle.

As the price keeps on consolidating and expanding, you are extending it

until you see a value breakout. Then you can buy. You put your stop loss

right below the height, upper side of the rectangle that the price broke

out from.

So whenever you see this, know that this is a bullish continuation or

possible bullish continuation. Then we have flag. We talked about this on

the bearish flag.

So this is just like inverse. On the bearish flag, the price was coming

down. Then it started consolidating a bit upward.

Then breakout on the downside. But in this bullish flag, it is the inverse

of what took place during the bearish flag pattern. Then the next is bullish

penance.

We talked about this also on the bearish. But on the bearish, this was a

downtrend. Price was coming down. All of a sudden, we experienced a

kind of consolidation or price accumulation. Then break on the downside

again, which represents bearish continuation. But in this case, price is

coming up.It's coming from a supply. I mean, price is coming from support or

demand zone upward. All of a sudden, you see price accumulation or

consolidation in the market.

So once you notice that, take a trend line tool and put a triangular trend

around the price. So what they're watching for next is a breakout. Once

you see a breakout, you can take their entry, put their spot loss right

below the breakout point. Or sometimes you can wait for price to break

out, locate a possible resistance and retest. So once the price retests the

breakout region, you can then take their entry. So those are the types of

bearish and bullish candlestick pattern that we have.

We have took our time to illustrate the continuation and reversal pattern

candlestick. Then also some of the shape of the candlestick pattern that

price forms in the market. We have also discussed that.

So I hope this will be beneficial to you and it's going to help and push

your trading journey. Thank you. See you in the next video.

COMMON CANDLESTICK PATTERNS: BULLISH, BEARISH,

AND REVERSAL PATTERNS

(0:00) Welcome to this video and in this video we are going to talk on

common candlestick patterns (0:08) which include bullish candlestick

pattern, bearish candlestick and reversal patterns. (0:18) First of all just as

we know there are two types of candlestick as said in the previous video

(0:25) bearish and bullish candlestick and we are going to take this one

after the other as a separate (0:33) topics. So these are the class of bearish

candlestick that we have in the market.

The (0:38) classes of bearish candlestick we have in the market simply

means reversal pattern. (0:42) So whenever you see each of these

candlestick that I could really see right now (0:46) just know that big

market is about to start or sellers are about to open (0:53) whenever you

see each of these patterns from the market. So the first candlestick (0:58)

here is hanging mark please.

So before these candlesticks there are so many of the (1:07) classes of

bearish and bullish candlestick that we are going to list here are not all

that we have (1:12) in the market. I just have to select the most

commonly for those ones that we easily spot (1:18) in the market. So we

are going to give briefly the list of other types that we know then.

Subsequent (1:24) personal research can also expose you to know other

types of bearish or bullish candlestick (1:31) that we have. So let's go

hanging man. A hanging man is a type of candlestick pattern in financial

(1:37) technical analysis.

It is a bearish reversal pattern made up of just one candle. It has (1:42) a

long lower wick and a short body at the top of the candlestick with little

or no upper shabby. (1:50) So what this implies is that these candles form

in an uptrend. Please it is one candle. I only (1:57) used two separate colors

to represent buy and sell because this candle can come in either form (2:04) or it

forms alone. Don't expect it to come double just as we demonstrated here

on this image.

It is (2:13) one candle but it can come in either color. So you can see how

the hanging man is. It has the (2:19) long lower shadow and small candle

body.

Sometimes you may see the small upper shadow sometimes. So (2:27)

don't expect it to form exactly like it is here every time. So sometimes the

candle may have (2:31) upper shadow on the upper side or wick.

But I would be able to spot it that this hanging man (2:38) is at the lower

wick. It's going to be very long just as you can see in this image. So this

is (2:44) a typical hanging man and this usually forms in an uptrend.

So whenever you see this form in an (2:49) uptrend, know that the market

is about to change direction and sellers are about taking over (2:58) the

market. So this is the first class of candle that we have. Then second we

have the shooting (3:06) star.

The shooting star pattern appears at the peak of an uptrend just before it is

ready to (3:12) reverse and lose momentum. It forms at the peak of an

uptrend just before it is ready to reverse (3:18) and lose momentum. Both

the green and red variants are regarded as shooting stars.

However, the (3:24) bearish red candle is stronger because it closes the

situation right at the candle's base. The (3:31) shadow or wick should be

twice as long as the body itself. So this is a shooting star.

It's (3:38) also a reversal pattern. If you look at it compared to the one

that we just finished, (3:45) the hanging man, it is the inverse. It's just like

turning the hanging man upside down. So (3:54) the shooting star is the

inverse. You can see the long upper

shadow. This time around the shadow is (4:00) on the upside while the

body of the candle is down right here.

Like I said, the same thing is still (4:07) applicable here. Sometimes this

candle may have the lowest shadow. In this case, we may have a (4:14)

little shadow at the edge.

But you cannot compare to the shadow that you're going to have on this

(4:23) other end. This one has to be very, very long. So whenever you see

this form in an uptrend, (4:29) just know that sellers are back coming into

the market and you should start looking for (4:36) a possible sell entry.

Then we have the bearish engulf pattern. This is one of the most popular

(4:43) bearish reversal candle patterns. Almost all the price action traders

use this kind of pattern.

So (4:51) it is good for you to take note of this. The bearish engulfing

candle pattern, which typically (4:57) appears at the peak of an upswing

or uptrend, is seen as a bearish reversal pattern. Two candles (5:12) make

up the bearish engulfing pattern.

So I did illustration on this in the previous module (5:21) because when

we did this briefly or introducing each of these candlesticks, and I used a

kind of (5:28) real-life scenario to refer this to a fence or a block of fence

that we have in our house (5:35) or workplace or business place. This is a

block of fence and there is human here and there's (5:41) another human

here. Because of the height of this fence, humans standing on the right-

hand side will (5:46) not be able to spot the person on the left-hand side

because this fence has completely engulfed (5:52) this person here.

So the same thing applicable, this bearish candle completely engulfed the

(5:59) foliage. So this candle comes in twos, not like the other that we

just looked at. This one is one (6:06) candle.

It can come in different colors, but when it comes in a red color like this,

because we're (6:11) expecting a downtrend, this red one is much

stronger. So this one comes in twos, not single. (6:17) The way it is, the

first candle will close bullish and the second candle close bearish and

completely (6:24) engulf or cover the bullish candle that I just formed and

complete.

So whenever you see this in (6:32) the market, and this usually forms in a

resistance zone. If you find this in a resistance zone or (6:39) key level,

then you know that a very long sell is going to take place in the market.

You should (6:46) start looking for possible sell setup.

So look at the close and the open of this candle, of this (6:53) green

candle, and look at the bearish candle open at or above the previous

candle close. This is the (6:59) close of the bullish. So this very one open

right above it.

Then look at the opening of the bullish (7:06) candle. The bearish candle

closes below the previous candle's open. You can see this is the close, this

is the weak, this completely goes (7:13) below.

So this bearish candle, this sell candle has completely engulfed the green

candle. So whenever (7:20) you see this form in an uptrend, you should

be preparing to go into a bearish setup. And one (7:30) exciting thing

about this bearish engulfing pattern is that whenever you see this, just

know that the (7:35) sell that is going to take place in the market is going

to be long.

It's going to sell for some time, (7:40) some hours, depending on the time

frame that you specialize on. So the next candle we have is evening

(7:47)star. Technical analysts utilize the evening star pattern on stock price

charts to determine (7:53) when a trend is ready to change direction.

Three candles make up the bearish candlestick pattern. (7:58) A red

candle, a small body candle, and a huge green candlestick. So this one is

three candles that are (8:05) made up an evening star.

So look at the way it is. First, a strong, huge bullish candle will form.

(8:14) Then next we have a next small candle in form of a doji.

This is a doji actually, it's going to be a doji. (8:22) Then the third candle

forms bearish. For the bearish, the bullish that forms is a bit longer than

(8:30) a bearish candle in length.

So evening star characterizes one long-faced candle body. (8:37) Second

candle star shoots body gaps away from preceding candle. Fifth candle

body (8:42) close into body or face candle.

So this is completely on top. You can see this is the (8:50) wick, the

upper shadow of this bi-candle, and this middle doji candle close right

above it. (8:56) Then the bearish candle form and close just in between

almost the same length as the bi-candle (9:03) but it cannot be seen.

So whenever you spot this in the market, whenever you spot this in an

uptrend, (9:10) get ready to go into the market and sell. So guys, the next

one that we have is bearish timber. (9:19) This is one of the strong signals.

Also, after the bearish engulfing pattern candlestick, (9:29) this is the

next candle that I always like to look at. Because as a trader, you must

stand (9:34) for something. You can't possibly practice all those

candlesticks.

It's going to be too numerous (9:40) for you. You have to select a few of

them that you know that is going to work out for you. (9:45) After you

run your test, everything will demo count. You now specialize for a few

of them, (9:50) then you start building your

trading plan on them. So this is one of the most popular also (9:56) after

bearish engulf. Whenever you see this in the market, know that the sale

that will take place (10:01) is going to be long.

This is similar to evening star, but look at the way the doji of this one

(10:07) form. In the evening star, the doji form on top of the high of this

bullish candle, but this one, (10:14) the body of this doji, enters almost at

the close price of the bullish candle. Then the opening of (10:21) the

bearish candle is almost equivalent to the body of the doji candle.

So after a significant (10:28) upward movement or at the top of an

uptrend, a bearish timber is produced. Its body is totally (10:34) closed by

pure bullish bar. The upper tail of the animal is very lengthy.

It may be three or more (10:40) times larger than the body size. So

whenever you see this in the market, note that sellers are back (10:49) to

go into the market. So you should try to prepare a possible setup using the

strategy (10:57) that you specialize on.

In the next candle is gravestone doji. So like I said, doji simply (11:06)

means indigestion in forest market. Sometimes this candle body here may

be at the center, (11:14) just like a typical plus sign that we know.

I talked about this earlier when we did the course (11:20) introduction.

Sometimes the doji is quite like this, like a disjoint sign, (11:29) quite like

a disjoint sign that we know. Sometimes it comes in this form.

So this (11:34) gravestone doji, it means indigestion. Neither buyer or

sellers are currently in charge of the (11:40) market. So by definition,

when the open low and close prices are all close to one another, (11:46)

with a lengthy upper shadow, a gravestone doji candle pattern is

generated, which is a bearish (11:53) reversal candle pattern.

It is not a strong reversal pattern since most times represent (11:58)

indigestion in the market, meaning neither buyers or sellers are in

charge of the market at the (12:04) moment. So just like I said, it's not a

guarantee or to use this as a bearish reversal pattern (12:14) because it is

not a strong signal, very weak. Otherwise, it means indigestion.

Neither buyer (12:21) or seller is in charge of the market. So what that

implies is that after this has formed, (12:26) we may likely see buyer

continuation or reversal. So this is not always a strong signal to go into.

(12:34) So if you are using this to trade, then you must certainly wait for

a strong confirmation with (12:39) a certain time frame, 15, 30 minutes,

one hour before you go into the trade. But just (12:45) take this as

indigestion, meaning even if you are currently in trade and your trade is

doing well in (12:53) profit, and you see this form, you should take profit

and leave the trade because you can't (12:59) really tell what is going to

take place next in the market.

So those are the few candle pattern, (13:09) bearish candle pattern,

reversal pattern that we have in the market.

There are so many of them which (13:15) you can do personal research to

discover them also. But these are the key ones, the most popular, (13:22)

the ones that I know is going to form in the market. You will likely see

this once you open (13:28) their chart, you'll likely spot this.

There's no how to look at two or three different currency (13:33) pairs

that you will not see each of these bearish pattern. I'm showing you in a

day depending on the (13:38) time frame that you use. So that's all for

this video.

See you in the next lesson. Thank you.

Topic Description: Identifying Support and Resistance Levels
Learn how to accurately identify key support and resistance zones in the forex market using pure price action. This lesson explains how to spot areas where price repeatedly stalls or reverses by analysing historical data, trendlines, and volume. You’ll also see why using rectangles instead of single lines provides better clarity in spotting valid breakouts and retests, ensuring stronger trade entries and exits.

Topic Description: Using Multiple Time Frames to Identify Support and Resistance
Discover how to combine higher and lower time frames to accurately identify and confirm key support and resistance levels. This lesson demonstrates step-by-step how to start from daily or weekly charts to find major zones, then narrow down to smaller time frames for precise entries. You’ll also learn how multi-timeframe analysis strengthens your confidence in trade setups and helps align your trades with the overall market trend.

Learn how to identify and interpret dynamic support and resistance levels—zones that shift as price moves. This lesson explains how tools like trend lines, moving averages, and Fibonacci retracement help traders recognise these constantly changing areas of buying and selling pressure. You’ll see how resistance becomes support after a breakout, how false breakouts occur, and how market structure evolves through impulse and corrective waves. By the end, you’ll understand why no support or resistance level is permanent and how to use dynamic zones effectively to align with market direction.

Understand how to identify and interpret the three main types of market trends—uptrend, downtrend, and sideways movement. This lesson explains how to recognise higher highs and higher lows in bullish markets, lower highs and lower lows in bearish markets, and consolidation zones in ranging markets. You’ll also learn how to draw trend lines, spot trend reversals, and use chart compression for clear analysis. By the end, you’ll confidently distinguish between trending and ranging conditions to make informed trading decisions.

Learn how to apply trend lines and channels to identify and confirm the direction of market movement. This lesson explains how to draw valid trend lines by connecting at least two price points, and how to use parallel lines to form channels representing dynamic support and resistance zones. You’ll understand the difference between a trend line and a channel, how to interpret higher highs and higher lows within an uptrend, and how channels reveal the strength and structure of price movement. By the end, you’ll confidently use these tools to define trends and spot potential breakout points.

This lesson teaches how to recognise key reversal and continuation patterns that signal changes or continuations in market trends. You’ll learn to identify reversal patterns like double tops, double bottoms, head and shoulders, and engulfing candles—each showing when price is likely to change direction. It also covers continuation patterns such as flags, pennants, triangles, and rectangles, which indicate that a trend will likely resume after a brief pause. By mastering these formations, you’ll improve your timing, avoid false breakouts, and trade confidently with the market’s true momentum.

This lesson introduces the basic price action setups — pin bars, inside bars, and engulfing patterns — which help traders identify potential reversals and continuations in the market. It explains that:

• Pin Bars show strong rejection of price levels, signalling reversal points. A bullish pin bar forms at the bottom of a downtrend (indicating buy), while a bearish pin bar forms at the top of an uptrend (indicating sell).

• Inside Bars represent market indecision or consolidation. A breakout from an inside bar setup provides an opportunity to trade in the breakout direction, with stop loss placed above or below the mother bar.

• Engulfing Patterns occur when one candle fully covers another. A bullish engulfing forms at the end of a downtrend (signalling upward reversal), while a bearish engulfing forms at the end of an uptrend (signalling downward reversal).

Overall, the topic highlights how recognising these setups allows traders to align with market direction and make better trade entries.

This section explores advanced price action concepts, focusing on fakeouts (false breakouts), valid breakouts, and pullbacks. Learners will understand how to distinguish between real and false breakouts, avoid market traps, and use pullbacks for precise trade entries.

It explains how fakeouts occur when price briefly breaks a key level but reverses, tricking traders, and how to confirm valid breakouts by waiting for candle closure outside trend lines or zones. The concept of pullbacks is also covered — showing how temporary reversals create second entry opportunities with reduced risk.

By mastering these techniques, traders will enhance their market timing, identify high-probability setups, and improve overall trade accuracy.

This section guides learners on how to build a personalised trading plan rooted in price action principles. It explains how every trader must design a plan that suits their trading style, preferred assets, and risk tolerance.

Students will learn how to choose trading instruments, determine suitable trading sessions, and apply structured routines for market analysis and trade execution. The lesson highlights the importance of avoiding unpredictable trading days like Mondays and Fridays, managing trades around major news events such as the Non-Farm Payroll (NFP), and using timeframes effectively for entry precision.

It also covers how to incorporate risk management rules—such as risking 1% per trade, targeting at least a 1:6 risk-to-reward ratio, and using stop-loss adjustments to secure profits. By the end, learners will understand how to create a clear, disciplined plan that aligns with their trading goals and psychology, improving consistency and long-term profitability.

This lesson explains why risk management is a cornerstone of successful forex trading. Learners will understand how capital preservation protects their trading funds and ensures they can continue trading after losses. The lecture highlights the role of mitigating losses by maintaining proper trade sizes and risking only a small portion (ideally 0.5–1%) of total equity per trade.

It also explores how effective risk management promotes consistency and longevity, helping traders stay in the market long enough to build sustainable results, and the psychological benefits of trading with discipline—reducing fear, greed, and emotional decisions.

Students will further learn about institutional compliance, understanding how prop firms and account managers enforce strict drawdown limits to safeguard capital. The session ends with key practical techniques such as position sizing, stop-loss placement, and take-profit orders, which ensure controlled trading and stable growth.

By applying these principles, traders can minimise losses, protect their equity, and approach the market with confidence and professionalism.

This lesson teaches how to effectively set stop-loss and take-profit levels based on pure price action analysis. Students will learn how to identify key support and resistance zones, use candlestick patterns like pin bars and engulfing formations for entry confirmation, and correctly position stop-losses just beyond recent swing highs or lows to avoid premature exits.

The lecture further explains how to place take-profit targets around the next significant support or resistance level, ensuring realistic and strategic exits. Emphasis is placed on discipline, avoiding greed, and managing trades logically using market structure rather than emotions.

By the end, learners will understand how to protect profits, minimise losses, and trade confidently with well-defined stop-loss and take-profit strategies.

Controlling Emotions and Maintaining Discipline in Trading

This lesson focuses on managing trading psychology — the most crucial yet challenging aspect of trading success. Students will learn why emotional control cannot be mastered through theory alone but through real trading experience, discipline, and gradual exposure to market conditions.

It covers practical strategies such as developing and following a trading plan, applying sound risk management, keeping a detailed trading journal, and practising diversification to reduce emotional pressure.

The lecture emphasises patience, consistency, and learning from losses, helping traders build emotional resilience and discipline — key traits that separate profitable traders from impulsive ones.