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Ni hao!
My name is Thembi.
It's an SMQ Wednesday, ya'll!
That's a little bit of Mandarin and a little bit of ya'll
My Mandarin is getting really good
I don't know if my sentence construction is correct and if my pronunciation is correct
but a girl's got to try. If you're living in China, you got to try!
Welcome to stockmarketforbeginnersschool.com
where he help you unleash your trading genius
here at Stock Market for Beginners School
and of course, you heard it right...it's an SMQ Wednesday!
In this video lesson, we're going to talk about
why traders prefer candlesticks
to line charts. Do you like candles? Do you like lines?
I think I like candles! So let's start with our lesson
And today's question is from Sarah
I love it when girls come and play and ask stock market questions..Ohhh I love it!
I love to see the girls in the market because the the stock market is
not only for men, it's for
girls too. Thank you Sarah for this question
Today we're going to talk about candles versus line charts.
My favorite subject--candles. I love candles!
these candles are the way the market communicates with traders
if you fail to understand candles, you fail to understand the market and the
market
chops you up when you fail to understand the market
market is always right and we as traders are just there to listen to what the
market is telling us
and act instead react and argue with the market
The question is why do people use candlestick charts instead
of line
charts? Candles
are the footprint to money
Candles give you more information about the bulls and the
Bears
than a line chart will ever give you.
the length and the size of the candle tells you a lot. So if you have a huge
green bar, you know that the professionals are in and they are committed
to taking the stock higher
If you've got a small green bomb, maybe not so committed to take the stock higher
If you got a doji, what does that mean? Maybe momentum is changing!
Candles really communicate.
you can actually create sentences with candles
and sentences that communicate exactly what the market wants you to do
sometimes traders think that the market is so woowoo
and that the stock market is difficult to understand.
It is not difficult once you start understanding candles.
It actually creates
sentences. You can actually know exactly what the market is telling you
exactly...with an 80 percent probability
The market will tell you, "dude
I want to move up, okay? So if you're shorting the stock
make sure that you start to cover because I am going to make a reversal.
I am going to turn and move
at the opposite direction." It's your job as a trader to say
"Thanks for that information. Let me do what you tell me to do
and I'll make money." The market always wants to give you money.
It's us as traders who want to argue with the market and that's why we
lose money or don't make money
New concept right? New concept...But this is what I teach my private coaching student.
listen to the market and learn the
the language of the market. I want to share with you a story.
I moved to Shanghai
10 months now. I moved to Shanghai 10 months ago.
I didn't know Mandarin.
I spoke a little Mandarin
I just know the basics and
Oh my gosh!
I struggled
My life was horrible for the first 3 months because
I didn't understand the language. I would get into a cab and the cab driver would say things
I don't understand. I don't know what to say!
because I didn't understand the language. As soon as I started taking
Mandarin classes
life became easy. Life became yummy. It is the same concept in the stock market.
If you don't understand
candles it's like moving to Shanghai and you don't understand Mandarin and you're not even willing
to learn the language so you can make your life easy.
Great analogy? Great analogy!
Anyway, let's get on with it. Which are the 3 most important
candles?
One candle that is the most important is bottoming tails. It tells you
that
the move is reversing.
Dojis show a little bit of indecision in the market.
Engulfing candles tell you that there has been a shift
in who dominates that stock. Look I have an 8-week course on candles.
I just have to give you an overview of candles.
Of the 3 most important candles.
If I had 16 hours, I could explain exactly
what every candle means and when you should trust the candles
I don't have that time right now
For YouTube videos you have to make them short because people have ADD when watching videos
So I hope that you
just take this information. Bottoming tails, dojis and engulfing candles
have a huge significance in what the market is telling. They're telling you
"Hey I'm about to change my trend...
listen up!"
So what are the dangers of line charts?
Line charts don't warn you before a stock turns.
Look at this. There's a bottoming tail. What happens after the
the bottoming tail?
Momentum moving up.
The stock completely reverses and goes up. Can you see that here?
No! You don't see anything! You just see squiggly lines..squiggly lines!
OMG!! There the stock goes up. What just happened?
I don't know! Candles, on the other hand, give you early signals.
Once the bottoming tail starts forming, you can think that maybe the market
is telling you that
it wants to change its direction. You should probably
take heed and follow what the market is telling me to do
That's the power of using candles.
Line charts may have looked sexy 15
years ago.
Once candles were introduced to the western traders, they've become
powerful. It's like putting a sentence together or learning your ABCs
of the market
That's how powerful candles are.
I wanna thank you so much for watching this video. I hope
that this video has served you and I hope that I've answered your question, Sarah.
and I hope that you enjoyed
the video.So, if you enjoyed this video make sure that you spread your love for
this simple and easy-to-implement stock market content
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Remember to visit us at stockmarketforbeginnersschool.com because
that is where the learning is happening and where trading the stock market
is made simple. Thank you so much for watching this video.
I will see you at our next video.
Bye!!!