Speaker A
Welcome to day two. Day one clearly was not too difficult. You just had to sit there and watch me cry like a little [ __ ]. But here we are, day two. We're actually looking at charts.
Day 2 of TJR's Boot Camp covers candlestick basics, price movement, and how to read charts effectively for trading.
Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.
Generated from the transcript and can be wrong — check the timestamp.
Key Takeaways
- Candlesticks are fundamental tools for understanding price action and market sentiment.
- Each candlestick represents price movement over a specific time frame, showing open, close, high, and low.
- Simple single candlestick patterns are more reliable than complex multi-candle patterns.
- Doji candles indicate market indecision and potential price reversals or rejections.
- Waiting for candle closes is crucial before making trading decisions based on candlestick patterns.
What the video covers
- Introduction to candlesticks and their importance in chart reading.
- Explanation of candlestick components: bodies, wicks, open, close, high, and low.
- Understanding different time frames and their impact on candlestick interpretation.
- How to read price movement within single candlesticks on a 5-minute chart.
- Distinguishing bullish (green) and bearish (red) candles and what they represent.
- Criticism of complex candlestick patterns and preference for simple single candlestick patterns.
- Use of doji candles and their significance in price action and market rejection.
- Importance of waiting for candle closes to make trading decisions.
- How candlesticks tell a story about market sentiment and price action.
- Encouragement to practice reading candlesticks to better understand market dynamics.
Chapters
- 00:00Introduction to Day 2 and Overview
- 01:18What Are Candlesticks and Their Components
- 03:10Understanding Time Frames and Candlestick Duration
- 04:39Reading Candlestick Price Movement and Colors
- 06:15Critique of Complex Candlestick Patterns
- 09:26Detailed Explanation of Open, Close, and Wicks
- 11:08Significance of Doji Candles in Price Action
- 12:29Waiting for Candle Close and Market Decisions
- 18:28Candlesticks Tell a Story: Market Sentiment and Price Action
Full Transcript — Download SRT & Markdown
Speaker A
um but you probably won't learn much again because this is going to be a video from scratch but you will gain or sorry this is going to be a course from scratch um but you will gain a couple things I'm
Speaker A
But you probably won't learn much again because this is going to be a course from scratch. But you will gain, or sorry, this is going to be a course from scratch. But you will gain a couple things. I'm going to toss in some little tips that, you know, you probably didn't pick up when you were a beginner.
Speaker A
understanding price movement within candlesticks Okay so right we're on the S P 500 right now and pretty much every single chart you're going to have is going to look like this uh wow okay uh pretty much every single chart is
Speaker A
That can help you along the way. So today we are going to be talking about candlesticks and price movement and understanding price movement within candlesticks. Okay, so right, we're on the S&P 500 right now, and pretty much every single chart you're going to have is going to look like this. Uh, wow. Okay.
Speaker A
called candlesticks because they leave Wicks okay and these candlesticks tell a story so with that being said let's move over here and draw our own little candlesticks okay and I know you're probably thinking oh my God I don't need to learn about
Speaker A
Pretty much every single chart is going to have, you know, candlesticks like this, right? You can click through whatever ticker symbol you want, and you'll see candlesticks. Okay, and these candlesticks describe price. Okay, how do they describe it? Okay, through bodies and wicks.
Speaker A
let's uh dude I wish I could color this thing um okay ready this one is going to be a down candle so I'll color it in like this actually that looks terrible forgive me we're going to make this oh
Speaker A
Okay, these are called candlesticks because they leave wicks. Okay, and these candlesticks tell a story. So with that being said, let's move over here and draw our own little candlesticks. Okay, and I know you're probably thinking, oh my God, I don't need to learn about candlesticks.
Speaker A
what the body represents and what these little Wicks that they leave behind represent okay so first of all understanding candlesticks okay we need to understand what time frame we are there are so many little different time frame time frames up here that I'm
Speaker A
I know you don't. Okay, I know you don't, but this is going to be beneficial. Trust. Okay, so these are two candlesticks. Okay, let's say bro, how do I? Okay, whatever. Anyways, okay, ready? So we have two candlesticks. Let's—
Speaker A
so if we are on the five minute chart which we are on currently if one of these let's write let's just say this is an actual Candlestick within the chart one of these candles this candle represents five minutes
Speaker A
Let's, uh, dude, I wish I could color this thing. Um, okay, ready? This one is going to be a down candle, so I'll color it in like this. Actually, that looks terrible. Forgive me. We're going to make this, oh,
Speaker A
understand and pretty much just guess what is going on on one minute structure just purely based off of a five minute Candlestick or two five minute candlesticks and once you get good at this you'll understand how to do that as
Speaker A
here, I'm so stupid. There, there we go. That's a down candle. This is an up candle. Cool, cool. Okay, so we're going to do a quick, quick, a quick overview of what these candlesticks represent, what the opening, the close represents,
Speaker A
it ends right up here okay green means boom price went up right everyone knows a green candle means up in a red candle means down so in this instance price opened right here where the body of the candle starts and it
Speaker A
what the body represents, and what these little wicks that they leave behind represent. Okay, so first of all, understanding candlesticks. Okay, we need to understand what time frame we are. There are so many little different time frame time frames up here that I'm
Speaker A
Wicks that are left behind mean that shows where price went during that five minute duration of time okay but it never ended up closing there it just shows where price went right it left a little snail Trail okay it's like
Speaker A
scrolling through, right? One minute, two minutes, three minutes, five minutes, seven, eight, whatever. Okay, and if you're very new, you're probably saying, well, what do those things mean? That represents the time that it takes for the candlestick to close. Okay?
Speaker A
did go take a [ __ ] um I I to be honest I don't know how this relates to this but anyways okay it shows where price went so that means right if if there's a wick all the way
Speaker A
So if we are on the five-minute chart, which we are on currently, if one of these, let's write, let's just say this is an actual candlestick within the chart, one of these candles, this candle represents five minutes
Speaker A
minutes so now we know okay this is the highest point it went to and this is the lowest point it went to okay same exact thing on a bearish candle okay just slightly different okay instead the open is up here
Speaker A
of price action, of price movement. Okay, and the reason why these candlesticks are so beneficial is because we can read and see exactly what price did within those five minutes with just this one candlestick. Okay, oftentimes I can even be able to
Speaker A
okay and down here was the lowest point that price was able to go to perfect candlesticks [ __ ] simplified by tjr now we can get rid of this [ __ ] okay now we are going to talk about
Speaker A
understand and pretty much just guess what is going on on one-minute structure just purely based off of a five-minute candlestick or two five-minute candlesticks. And once you get good at this, you'll understand how to do that as
Speaker A
ones the Candlestick patterns that are based off of mountain tops [ __ ] W's Head Shoulders that [ __ ] is BS I also hate Candlestick patterns I really hate every single Candlestick pattern that is more that that contains more than two
Speaker A
well. Um, but okay, we're on the five-minute time frame. One candle represents five minutes of price action and market movement. Okay, so when we see a green candle or a bullish candle, okay, we see that it goes up and
Speaker A
patterns cheat sheet hopefully this pulls up the single candlesticks um okay good it has some of them on this all right let's pull this thing up and let's zoom on in okay so first of all we don't give a [ __ ]
Speaker A
it ends right up here. Okay, green means boom, price went up. Right? Everyone knows a green candle means up and a red candle means down. So in this instance, price opened right here where the body of the candle starts, and it
Speaker A
cross doji's and inverse cross doji's dragonfly doji's hammers okay those are the only things I care about okay just this row forget about all this [ __ ] this is garbage okay no we don't give a [ __ ]
Speaker A
closed at that five-minute mark right here. Okay, so boom, right here is the open and boom, right here is the close. Okay, we can put this thing down. Oh, oops, shrink the close and the open. Cool, cool. Okay, now what do these little
Speaker A
honestly just find these on the chart I don't know why I pulled that up um but with a candle this is just like a perfect example with a candle like this one right we see price opens right here
Speaker A
wicks that are left behind mean? That shows where price went during that five-minute duration of time. Okay, but it never ended up closing there. It just shows where price went. Right? It left a little snail trail. Okay, it's like
Speaker A
way up here or here or here or here we left a fat ass Wick up here meaning it was not strong enough to close above whatever was residing above here and more than likely it was taking this liquidity
Speaker A
um, like you take a [ __ ] and you put on your underwear and it's like super white, like brand new Calvin Klein underwear, and your [ __ ] from a minute ago left a little snail trail. It's showing that you
Speaker A
just small bodies of candles okay so when a candle looks like this doji's are great for reading price action okay it's usually small body long Wicks or just just small body of a Candlestick in general okay looks like this okay something like that
Speaker A
did go take a [ __ ]. Um, I, to be honest, I don't know how this relates to this, but anyways. Okay, it shows where price went. So that means, right, if there's a wick all the way
Speaker A
okay so when we see this bearish doji right we're obviously not taking a trade off of this but we need to be able to read the candlesticks right these are these small things that that intuition can build that that experience builds by
Speaker A
up here, that means within this five-minute candle, yes, it didn't close up here, but price moved up to this point. Okay, and then same thing with here. Okay, down here was the lowest price point that price went within these five
Speaker A
telling you a lot of information okay so this Candlestick in particular right we see Boom Big sell-off down here okay and then we get to this candle okay we get long Wicks to the downside but not a full body close right we don't
Speaker A
minutes. So now we know, okay, this is the highest point it went to and this is the lowest point it went to. Okay, same exact thing on a bearish candle, okay, just slightly different. Okay, instead the open is up here,
Speaker A
after that right so we lost bearish momentum with this candle we can see that through the long Wick to the downside and then it failing to close lower in a regular sized candle right this is a doji this is showing
Speaker A
okay, and the close is down here. Okay, so the close on a bearish candle is lower, obviously, and the open on a bearish candle is higher. Okay, remember, oops, and again, right up here is the highest point that price was able to go to,
Speaker A
we failed to close above these price points and then what happened we fell okay but this is not something you take a trade off of this is just slowly learning and understanding okay these candlesticks and what they're trying to
Speaker A
okay, and down here was the lowest point that price was able to go to. Perfect. Candlesticks [ __ ] simplified by TJR. Now we can get rid of this [ __ ]. Okay, now we are going to talk about
Speaker A
right here okay this is a great example okay we push up we come down okay yes we formed a bullish doji right this is a doji candle however right we've we failed to push up completely yes we see strong rejection to the
Speaker A
candlestick patterns, and I know what you're going to say. You're probably going to say, whoa, TJR, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, what the [ __ ]? I thought you hate candlestick patterns. I do. I hate the
Speaker A
and then we close bullish still right but we're in a downtrend we are continuously breaking structure to the downside okay so that's an example of where we can't we can't let our bias get [ __ ] get lost in these patterns okay the
Speaker A
ones, the candlestick patterns that are based off of mountain tops, [ __ ] W's, head and shoulders. That [ __ ] is BS. I also hate candlestick patterns. I really hate every single candlestick pattern that is more, that contains more than two
Speaker A
close which is what literally a regular Candlestick looks like to you so like this candle for example is a just a strong close right it's full it's full it has not many not a high Wick um to the upside if anything a highway
Speaker A
candles. The only candlestick patterns I like because they can actually show you price action and dictate where price is going to go are the single candlestick patterns. Okay, so let's look up if this thing will load candlestick
Speaker A
had a move to the downside and we were able to close and continue down right and it wasn't just a wick to the downside and then I move back on up showing weakness okay let's just keep going through and
Speaker A
patterns cheat sheet. Hopefully this pulls up the single candlesticks. Um, okay, good. It has some of them on this. All right, let's pull this thing up and let's zoom on in. Okay, so first of all, we don't give a [ __ ]
Speaker A
the downside price at one point remember guys we have to understand that price was opened here so at one point in time during this week price was literally a big red candle from this point down you PR right
Speaker A
about this entire top row. Okay, I also don't give a [ __ ] about anything in here, anything in here, anything from here and below. I only care about dojis, long-legged dojis. Long-legged dojis and dojis are the same thing. Okay,
Speaker A
candle that has formed okay we can only make bias and decision on candles that have formed not candles that are forming okay that's why we always wait for a close for a break of structure right we have to wait for that
Speaker A
cross dojis and inverse cross dojis, dragonfly dojis, hammers. Okay, those are the only things I care about. Okay, just this row. Forget about all this [ __ ]. This is garbage. Okay, no, we don't give a [ __ ].
Speaker A
then nope was able to first of all opens down here comes all the way down here and then rallies all the way back up to this point and closes up here that is a very very strong bullish candle right we see
Speaker A
All right, just focus on this row right here. Okay, and why are we going to be talking about this? Okay, it's because these candlesticks are showing price action and showing where price rejected and where it didn't. Okay, so if I can
Speaker A
some sort of Wick um to the top side or to the downside but when it closes so fully like this with a strong rejection to the downside that is telling you a bunch that's telling you a thousand words right that candle is is telling
Speaker A
honestly just find these on the chart. I don't know why I pulled that up. Um, but with a candle, this is just like a perfect example with a candle like this one, right? We see price opens right here.
Speaker A
as hell you're probably like what the [ __ ] but right we're starting from the beginning we're starting from Clear slate okay trust me we're going to bring you guys up with this and it it'll go it'll get
Speaker A
It doesn't go low, right? It pushes all the way up to this point but then closes down here. Okay, this candle is essentially saying to me, okay, we have strong bulls but not strong enough to close. Damn, not strong enough to close all the
Speaker A
get on whatever pair that you trade and just spot these and see how Market reacts like literally just being on this chart I can I can see two boom massive Wick rejection to the downside still not a good close but what
Speaker A
way up here or here or here or here. We left a fat ass wick up here, meaning it was not strong enough to close above whatever was residing above here, and more than likely it was taking this liquidity.
Speaker A
Confluence together right we have this full candle and then this doji with a big wick to the downside showing rejection after several weeks of of Doubt of being down right we can show exhaustion through the dojis okay and then we get boom closer to the
Speaker A
Okay, so right, we knew that price pushed up, close still bullish, but there was weakness because it couldn't finish out this candle. Right, now let's find another example. Okay, um, right here. Okay, similar situation but with a doji. Usually dojis, which are
Speaker A
okay um and just look for these and see how price reacts off of these certain price points okay find at least 10 examples okay this is your homework all right find at least 10 examples of these doji candlesticks okay
Speaker A
just small bodies of candles. Okay, so when a candle looks like this, dojis are great for reading price action. Okay, it's usually small body, long wicks, or just small body of a candlestick in general. Okay, looks like this. Okay, something like that,
Speaker A
but Wix do not lie Wix and candlesticks tell the whole story okay of price action no we do not care about a [ __ ] Mountaintop look how that [ __ ] played out [ __ ] horribly right you got stopped out we don't give
Speaker A
of some sorts. Okay, probably not that long of candles or wicks, but you know.
Speaker A
on in in in in you know slowly gaining that [ __ ] market experience that I know you guys need and want okay um and honestly these are going to be the lessons that are more important for you guys because this is [ __ ] that you
Speaker A
guys probably brushed over and don't think about too often so um homework is fine 10 examples of this bro homework is fine 10 examples of this on your own pair on your own chart that you trade okay take screenshots of it
Speaker A
um [ __ ] label them do whatever you need but not only do I want you to find examples of this on the chart but find how price ended up reacting off of these examples okay and that will give you a
Speaker A
better understanding of candlesticks okay the closes of candlesticks how Wicks work in this market okay Wix tell tell so much of a story within this Market these candlesticks tell tell the entire story of this Market okay so if
Speaker A
you cannot understand candlesticks you won't be able to understand the market because we have to read these things these things are telling us a story and we have to be able to read them and dissect them and understand them
Speaker A
so with that being said that is day two super short day we're starting off slow this is like syllabus week right we'll we'll start you off with the easy [ __ ] and then we'll get into the difficult stuff okay so find 10
Speaker A
examples of that and then I'll see you tomorrow all right peace
Topics:candlesticksprice movementtrading chartsS&P 5005-minute chartbullish candlebearish candledoji candlecandlestick patternsmarket analysis
