 Hey, how you guys doing? Good evening. Good evening. Russell Moore coming to you again from dedicated to financial literacy I've been on a series By the way, I get please hit the subscribe button hit the notify So you can get more content in the future and if you like the content give me a thumbs up thumbs down thumbs up Whatever whichever you prefer Okay, I've been on a series talking about charts and technical analyzing And so you can watch the previous video to deal it and I talked extensively about a line chart and What it what an uptrend and what a downtrend means so that you can identify When a stock is going a certain way Okay, now I have not gotten into all the different patterns and different trends and like that If you're this is for this is for a new a newbie a basic basic basic understanding Okay, but it'll help you in when you're just starting. Okay I would encourage you There's a there's a very good channel called the trading channel I believe that's the name of the trading channel. It's a very good channel And he's very good at explaining charts and all of that kind of stuff. So I want to refer that I'm not a hater if I see a channel and it's really good. I'll I'll definitely refer them and And bring it up to my audience. Okay to the people that are watching my channel. All right, so let's head into this And today I want to talk about real quickly This is just a brief explanation, okay of candlestick charts And how they function What is a candlestick? And it has a Japanese origin I'm not going to go into the history of it. You can google that I want to get right into this and so But these this is one of the this is one of the The type of charts you will see that you'll have to become aware of And you want to know about them. Okay, you want to know what the candlestick Represents. All right. Now the interesting the thing about candlesticks Candlestick charts you can have and this goes for any chart you can have a a one minute chart You can have a five minute chart You can have a day chart A week We're going to call this a day So each one of these candles represent a day Okay, and so this is day one day two day three day four day five day six day seven In fact, why don't I write that? day one two three four five six seven So keep that in mind That's each one of these candles represent a day Now it could be a minute There are minute charts it could be five minutes if you're just starting out I would not suggest you you start trying to do the minute at five minute charts um We'll just start we'll just say this is a week. All right now first of all if you notice there are two colors There's green and there's red Green represents the market is going up For that day the market was green if you and you'll hear that term newbie You'll hear green or a red day green or red day It was going up. It was trending up that day The red means down or a bearish candle Okay, so the green is a bullish candle And the red is a bearish candle meaning going down the market was going down And because this is a day Remember these are days. These are not minutes That means for that day. We had a green day For this particular stock It went up that day the next day Tuesday. It went down Wednesday. It went back up Thursday. It went up Friday it went back up Now there's no trading on saturday and sunday. So we'll just say monday tuesday of the next week All right, so this is seven days now If you notice on the candlestick you'll see these lines Notice these lines These are called Every candle has a wick right you like the wick These are wicks. I'm going to explain them in a minute. We're first going to deal with the body of the candle So let's just say this is monday morning and that this stock will call it apple Apple I believe apple is appl All right apple And on monday The green candle Opens at the bottom It opened here Okay, I want you to see that This is where apple opened right here It opened right about here. So whatever the price is Say the price is 163 It opened there 163 per share Okay, this is where it opened But then it went down It went down from there this wick represents It had a pullback for a minute. There was some selling that went on So it's probably say it went down to 160 This represents It there was a reduction in price because it went down right but then We got some people in the market and said oh wait a minute A lot of people came in and said We want to buy more shares so then It goes back up To the open and goes all the way up And now it comes all the way here and this is the high for the day That's the high this wick represents the high on the green candle. So say this is about 175 five All right, so it went from 163 at the open went down to 160 And then it went all the way back up To 175 so that's the high for the day But then it came here and this is where the candle closed at 170 You see how that happened it opened here and it went down It started selling off But then the buyers came into the market and they began to buy and there were more buyers than there were sellers The buyers outnumbered the sellers and it went all the way up But it went so far up and went and it established a high 175 but at the close of the market that day It dropped right at the close And it ended Right here at 170 Does that make sense to everybody now? Let's look at the red candle. It's a bearish day the next day It was the opposite It opened here Say it say it opened at once we'll just say one Because of pre-market. It's a little lower. We'll say 169 it opened at 169 And then the buyers came and it went up And it got to 173 But oh this the sellers the sellers Said this is going to be our day And so a sell-off began to happen and it went all the way down And it established a low Right here of 155 So apple dropped all the way to 155 So this is the low for the day Well the buyers said ah we we still gonna fight and so by the close of the market It came up here and it ended at around 160 So you see how that but the reason why it was a bearish day because it was lower It was lower than the previous It was lower than the open that's what I should say This when it's a green day a green candle It's higher than the open it closed higher than it opened When it's a bearish day It closes lower than it opens Does that make sense? I'm going to say that again On a green day when the a green day when the candle is green And it's a bullish day. It's because It closed higher than when it opened. So the market opens say it opens in southern california It opens at uh 6 30 so say it opened And it opened at 163 Well, it closed at the end of the market that day it closed. It was at 170 dollars a share So that means it went up. It was a green day. It was a bullish day It it closed higher than it opened But the next day it opened at 169 But it closed at 160 So how do you determine whether it's a bearish day or a bearish candle? It actually closes lower than the open All right I believe I've explained everything concerning uh A candlestick now there are certain trends and certain things you can look for in the candles There's certain patterns We're not going to go over that right now. I just wanted to give you the basics on what Sticks mean and what they represent. I'm going to say it again. Let's go over to this day This is the third day wednesday Why is this green? well It opened here It opened here But it closed higher than the open When it opened and went down first sellers But then it began to get momentum and buyers began to come and then it had a high This is the high for the day right here This is the low for the day. This is the high, but it eventually closed right here Next day it opened here and look how far it went down That's the low but the buyers said no, no, no, we're gonna buy we're gonna buy we're gonna buy we're gonna buy we're gonna buy And now you have a high for the day And then it settled here and this is where it closed Same here it opened Here and then dropped sellers But because it ended up being a green day buyers begin to overtake This stock that day and it goes all the way and here's the high And it settled here right before the close and at the close it was here Next day it opened here and went up It opened and went up. This was the high for the day But it was a bearish day. So what happened it came back down the sellers begin to overtake The sellers overtook and then went all the way down here for a low This was the low for the day, but it settled here. This is where it closed Why is this a bearish day? I'm gonna say it again. Why is this a bearish candle? Because it closed Lower than the open That's what determined whether it was a bearish day or not It closed lower than when it opened This closed higher than when it opened. That's why it's a it's a bullish or green candle All right Anyway, that's it. That's the basics on candlesticks All right Hope you learned something love you guys hang in there Keep trading keep investing Wedge when what do I always say you cannot earn if you do not learn You cannot earn if you do not learn Have a great one. Talk to you later