 very good afternoon very good evening can everyone hear me and see my screen this is the webinar for uh... market direction with candlestick formations okay where is everyone from Australia, US, UK, Dubai, Egypt, Holland, Japan, Middle East, India, London Slovenia Malaysia, Perth Miami, alright Antarctica as well, wow okay, great, great okay, Spain alright, so we've got people from all around the world here okay, so what we're going to do today is we're going to discuss a little bit on candlestick patterns and we're going to go from the very basics all the way up to any required information to understand how we're going to use candlestick patterns to predict the forex markets putting that all that information together, this webinar is approximately an hour long we're going to spend in Iraq 15 minutes going over the theoretical part of the candlesticks and then we'll spend the remaining 45 minutes of doing some teaching you guys some patterns and then we'll show you guys some examples and then testing you guys making sure you guys can actually point out which ones are which so we're going to do a little bit of everything and little quizzes and interaction also yes, the webinar is recorded and also the previous webinar on correlation that should be out probably this week this webinar should follow that immediately we'll come out together so if there's any questions try to see if you can hold them towards the end if you are confused ask me in between if there's any issues with audio I am sorry sometimes that happens to my internet connection but it is recorded just bear with me throughout the hour okay so candlestick patterns basic history on candlestick patterns candlestick patterns were developed in the 18th century by this dude over here he was a japanese rice trader of the financial instruments then was brought to the western world by steveness with his books Japanese candlestick charting techniques now how many of you guys have been using candlestick patterns and how many of you guys use different charts it seems like a lot of people use candles can everyone see the things drawn on my screen on the whiteboard the blue and red candle okay so going with the very basics okay now when the candle opens up okay what does the blue candle represent a uptrend or a bullish candle or a long it simply means that the market in that particular candle went long each candle represents a specific time frame what the time frame is depends on your your mediator you can set it to whatever you want you know the one hour thirty minutes fifteen minutes so if for example if you set your charts to the one hour time frame which means each of these candles represents one hour worth of data having that said this blue candle now the market opens up here it opened up here it closed over here at the top of this blue zone this is the reason why it's blue because it is above the open that's why this part is blue what is this area called here what is this big solid area called that is what we call the body that is referred to as the body these pointy things that come out of that is referred to as the wick or tails I like to call it tails but the professional word is called wicks W I C K S now what these wicks basically mean what these wicks basically mean is is simply this that that is the highest point the market has gone to this one represents that is the lowest the market has gone to so this tells you in this one if you had a one hour chart running this the one particular candle tells you in this exact one hour the market opened up here this is the lowest point it's gone in that one hour this is the highest point it has gone in that one hour and the candle ended up closing at the end of the hour over here so you have the entire information within one candle of the entire hour what happened in that one hour so the market ended up closing higher than it opened that's why it's blue reverse the scenario and then you have a red candle the market opens up here at the top oh sorry my drawing is like and the market closed down here since the closed is below the open that's why the shade is red this is again what we refer to as also and then this is the highest point the market has gone to and this is the lowest point the market has gone to now these tales or wicks that come out they always tell a story it gives you an indication of pressure in the market but we'll get into that much much later right now we got the basics down so started in the 18th century this is a new way of looking at the markets before it was just a whole bunch of lines going up and down which is what we call the line chart and then this was brought into the game and you know all the data is consolidated into one candle and it makes sense okay so let's get back to the screen sharing in fact let me open up some notes first okay the notes should pop up right now we're gonna discuss a couple of things okay the market has basically two things when it comes to candles or actually three things okay consolidation basically means there's no direction you can't really understand which way it wants to go it's just I'm stuck in the middle okay we'll discuss that as well okay so trend continuation patterns we have a couple false exhaustion reversals we have exosthons okay these are a lot of the terminologies that we use at Urban Forest and we're gonna stick to them to avoid any confusion there is a whole bunch of words that revolve around just one of these words there's like 50 different names for a lot of these candlestick patterns but we're gonna stick to the very basics so we're gonna stick to stuff that's needed okay I can write an entire book on candlesticks on which one has more strength which one has little strength but no no no that's just too complex we don't need to get into all of that we need to know what is useful for trading and that's it nothing more okay so we have false exosthons we have exosthons consolidation we have patterns that are like what we call doji okay indecision patterns am I spelling this wrong okay indecision okay so we'll we'll get into these I'm gonna put this on the side okay and let's get back to the screen sharing okay at any point if my screen freezes do let me know okay so one of the patterns is a what we call an exhaustion pattern which many of you guys are familiar and some of you guys are not okay how many of you guys are members of urban forex from my previous webinars or I've seen you on YouTube and I've come here okay a lot of you guys okay and I guess the question comes out to be is how many of you guys are absolutely new like first time here or just recently joined urban forex okay Peter, Hamdi, okay Thomas okay second time first time okay so there's there's also quite a bit of you guys who are quite new are really new here okay so one of the patterns one of my favorite patterns is an exhaustion pattern okay this is one of my favorite ones and let's show you a clear example of what an exhaustion pattern looks like and we'll take it from there okay now this candlestick pattern here is what we call an exhaustion okay what an exhaustion basically means is the market tries to go in one direction and it could not go it comes back and it closes near the open and hence the term it gets exhausted okay now since this candle is red we know the opening was towards the top of the body the close was towards the bottom of the body the market tried to go as far as this level down here and it couldn't stay there so it there was too much pressure going north the mark comes back up and it closes near the open and you can see on the top there's a very little tilt okay that's as high as it went this is as low as it went so this tail that you see is very significant you know it's look at the size of this candle first of all it's a pretty decent size candle compared to the past it's a very large candle the tail is sticking out you can see it from a distance if you hadn't seen the market in the future if you were just to go like right there you can actually spot this from a distance and be like wow look at that tail like it's huge okay when you have an exhaustion candle like this this indicates a reversal in the market a change in trend okay um it could mean a change in the temporary trend it could also mean a change in the long-term trend but we can get into all of that stuff later as of right now this candle indicates a reversal in the market okay and once this candle shows up we have an idea the next candle opens and voila okay we see a reversal and this happens all the time now how big the exhaustion candle is makes a makes quite a big difference take a look at this particular pattern this is also an exhaustion candle but look at the strength of the last candle look how strong that's coming down look at the size of this candle it's quite small right compared to previous candle this is why the strength is not so not so good on this one so you must also make sure that when you have an exhaustion candle it's a pretty decent size candle that can hold some weight and say okay now take a look at this pattern also what we call an exhaustion candle see now the reason why you don't have a color on this one is because the open and the close ended up at the same price this is why you don't see a body okay there's a very small tail on top this is how low as it went the previous candle is not so big the exhaustion candle is big next candle opened up took the market in a different direction okay everyone with me so far okay yeah i can get into the doji i'll get into the doji stuff much later okay we'll get into the exact types of doji and stuff like that in a while all right now more examples we'll get to more examples here is an exhaustion that did not work out right here why did this exhaustion not work out okay hasan says it's small so there's this previous candle i've been also small compared to the previous okay good good so you guys are on on the right track okay so let's move on let's move on let's get some more examples for you guys and then we move on to the other patterns okay let me see if i can find you an exhaustion that goes the other way okay maybe we'll go to swiss prank you can find exhaustion for the other side okay the amount of times exhaustion show up is not common but when they do show up and they have strengths then they do make a scene okay there we go okay exhaustion candle body opened up here it went high as this area here higher than you can see there's it hasn't gone this high in a while lots of space on the candle on the tail it sticks out plus the previous candle was quite small and then the market ended up closing near the open a small tail on the bottom took the market into a reversal direction so these exhaustion candles usually they show up during a trend yeah not in a sideways market they show up only during a trend yes in fact i mean it is what we call a pin bar or a hammer or upside down hammer you can give it any words you want to give it but yes it's it's pretty much the same thing so moving on forward the reason why i like to use the word exhaustion is because it's because when i explain it that the market gets exhausted and it cannot go further you know people tend to understand and catch on it quickly okay so here's another example for the market turning around to the south the market was an uptrend here an immediate uptrend large tail comes out it hasn't gone this high in quite some time and then it's bigger than the previous candle very small body small tail on the bottom and boom the market turns around now you can do a couple of things you can always take your arrow you can put it on to the body and keep the tail coming out of the other side of the arrow you can find at the direction almost like a firework okay firecracker uh kono yes as long as one side has a decent size tail the other side can have a small tail that's okay but make sure the other side other side tail does not end up exceeding too too large um like for example this is a bad exhaustion okay you can see how the tail on the other side even though we have majorities on the top the tail on the other side pretty much is triple the size of the body that's that's too much that's too much the body must be on one corner of the candle either on top or on the bottom it must be in one corner okay okay can you please explain the last candle of the previous candle on the screen okay okay close of the day asian session running not much momentum in the market plus sideways okay lots of strength coming in lots of strength coming in okay market actually is short but look how long it took to take that short it took a while before the market actually um got back into the moment i'm guessing this is where around uh frankford open okay so if you will get exhaustion sometimes during late asian session and that will um it will be quite slow now is this uh an exhaustion candle uh james that is correct so if it's not a trending market disregard it yes okay gerrits his previous candle was too big yes uh the session you trade is important kono uh yes that is correct also um try to stick to the most frequently traded sessions such as the u.s or the european sessions i know um when we look at forex all of us we assume that oh it's a nice 24-hour market and we can live wherever we want to trade whenever we want to with that's not really the case you know you can only trade when there's actually you know other people trading with you you know the more there are the more fun it is to trade and uh you can obviously sense the direction with when there's more more people trading okay all right a minor exhaustion here small example here market was trending down very very heavily it slowed down next candle opened it opened at the top here because it's red it opened up here closed over here this is how low as it went this is how high as it went is is the tail two or three times bigger than the body the tail on top no right this gives you a a valid exhaustion the tail on the other side on the bottom is significant but the tail on top is not significant enough to take away the focus of the exhaustion so the next kind of opens up covers around a little bit and then heads north okay so that is pretty much uh uh criteria is of an exhaustion okay everyone with me so far a francis asymmetrical tail is key yes as long as the body is uh as big as the tail on one side or or bigger than the tail on one side then you're okay okay so so far so good everyone's with me okay now let's move to um okay actually here's a quiz right here is this an exhaustion or is this not an exhaustion yes yes yes now let me let's get to the next question okay what is this okay okay everyone seems to understand this okay this is what we call a trend continuation pattern okay it almost looks like an exhaustion doesn't it but it it's not within a trend it's not telling you to reverse okay now forget the direction of a reversal and everything just look at this particular candle what does this indicate to you we have a body here right it opened here it closed here this is how low as it went this is how high as it went okay the tail on top not so big the tail on bottom massive what does that mean okay this is an indication that there's lots of pressure from the bottom pushing it up okay lots of pressure coming in from the bottom pushing this up like imagine this arrow just pushing it up more and more and more and that's why you have this body like this okay this is what we call it trend continuation pattern and uh these happen all around the place okay it's almost like an upside down exhaustion okay let me show you another example okay here we go this is an exhaustion as well but it's upside down if it was the other way around it would tell us the market wants to go long but it's upside down it went long it came down and closed here it's an upside down exhaustion telling you that there is too much pressure on the top for a sell there's a lot of people who are trying to sell next candle opens up and the market continues okay so far so far so good okay got some more examples here take a look at this pattern here okay market moves north next candle opens up come as far as this point here comes back up closes near the open small tail on top also a trend continuation pattern pushing it for the north okay how big the candle is makes a difference okay uh Vijay does the color of the bar convey any message no no do not worry about the color of the bar okay in terms of exhaustion and trend continuation don't worry about the color okay so let's move on to some more examples okay remember if it's a trend continuation pattern that means what must be present okay Ahmed good the word trend continuation pattern the first word is trend okay the trend must be there for it to continue okay 16 july 1400 or it's 1400 okay this one here this green one here i'm guessing you're talking about okay now what is wrong with this particular candle oh the one after the one after this is not a trend continuation pattern we'll we'll uh we'll get into that we'll get into that where let's not get ahead ahead of ourselves one at one at a time okay so let's move on let's move on let's see some more patterns and then so we can step into the next pattern now take a look at this area here okay which direction do we have this area here we have a nice downtrend happening okay in this downtrend this thing showed up okay upside down exhaustion indicating a trend continuation pattern okay look at the size of the candle versus the previous candle it's quite significant okay it continues the market okay this is somewhat of a trend no i should bad example bad example okay if you want okay um that's also an exhaustion yes if you actually look at it in a smaller trend in this last three candles yes it's been an uptrend in the last three candles and then you have an exhaustion so in that way it's also an exhaustion yes okay uh tom did you have a question i see your hand raised okay let's move on forward let's get you another one or two examples of trend continuation patterns and then we'll take it from there okay so indications of this one okay let's do this one at a time okay arrow number one what is the arrow number one okay continuation continuation continuation okay good arrow number two what would you say okay michelle it's it's also a continuation both of these are trend continuation these are upside down exhaustion candles okay now is the second one significant okay most of you guys are saying yes yes yes okay and then the third one okay a lot of you guys are saying exhaustion exhaustion exhaustion okay so here is what we're doing wrong here we're looking at the market outside of the candle okay remember when you point to a particular candle imagine you haven't seen the next market okay the first one okay maybe it indicates the market wants to go along i can give you guys that one okay um it's almost like a 50 50 step one we had this little exhaustion want to be here which is not a clear exhaustion because a previous candle is too big okay it's an exhaustion look alike but it still ended up pushing the market north okay fine the next candle opened up also indicating it wants to go further north okay so i can for the first um arrow i can give you yes it's a trend continuation pattern the reason why i say possibly no is because look at the size of the previous candle big okay let's go to the second candle sorry second one okay the market goes extremely long comes all the way down and creates this tail on top and then the next candle opens up goes all the way down and closes all the way up here this is a caution okay and second of all it's also not a trend continuation pattern because the size of the previous candle is massive so first one to be if you go exactly by the books falls second one falls you go to third one also falls none of these are correct now it seems correct because we saw the we saw the chart ahead of time okay so be careful there it's something you guys need to practice on the market is not what it always seems okay always at the end of it all you need live experience of this and as we get closer in fact uh it's 806 now what we're gonna do is let's take a look at the current candles and see okay euro usd hound let's see if i can find you guys a live example oh there's such nice examples right now but uh we need to get we need to learn more patterns okay okay okay go and back go and back okay so everyone understood why all those three were incorrect okay we have a one person says repeat tim also confused okay let's go back to that one that was uh that was on swiss frank and i know exactly where that was give me a second here okay i'm just going to find you a different example uh and then we'll point it point this one out okay what about this particular one here is this a trend continuation pattern uh james ten chile okay i'll take a look at it alvin i got to go already thanks anyway catch up with the webinar tomorrow okay take care alvin i'll see you in the conference room tomorrow okay this is a trend continuation pattern here's why first things first do we have a trend yes we have a nice trend going upwards second thing this is an upside down exhaustion candle large tail body on one side of the candle but it's upside down okay if it was the other way around if the tail was on top this would reverse the market right it would reverse the market but also at the same time the previous candle is not that big compared to the trend continuation pattern market resumes okay it takes the next candle and we go up okay it's not a home run it's not a thousand pips but it does go long okay that's all you need to know does it go long or does it go short okay what about the body to tail ratio you'll get you'll get better and better at the body to tell the ratio as you practice okay it doesn't have to be uh well the tail as long as the tail is more than 60% you're okay okay moving on forward that's uh okay tell me about this one is this a trend continuation pattern okay i'm getting a yes and no are you guys saying yes because of the next candle went long what is the reasoning behind give me reasons okay prince it is in the direction of the uptrend that it's correct it is also an upside down exhaustion that is also correct is it bigger than the previous candle no that makes it invalid remember just because it happened this time it does not it does not mean it happens all the time okay so this this makes it invalid now let's let's move on forward let's uh continue to find a pattern this is this candle what do you guys say correct or incorrect okay we have a lot of uh okay no wick underneath supporting trend continuation okay remember remember just just focus on a couple of things only a few things okay is there a trend yes second question is it bigger than the previous candle if you have to think twice about it don't trade it okay that's as fast as you go no need to waste time of of putting together your entire forex knowledge behind this no two questions trend yes or no bigger than a previous candle yes or no if they're both yes then you move to the next question okay in this particular case there's doubts if it's bigger than a previous candle if it's smaller all that stuff avoid it avoid it okay now moving on uh to the next example now this one trend continuation pattern or not let me remove this one so you don't get confused yes yes all right good guys are getting better at this now now is there a trend yes there's a downtrend happening okay next thing the reason why we say there's a downtrend because there's a high and a lower high there's a low then a lower low okay and then the next candle opens up we also had a lower low uh kono it's not within the last candle kono i didn't say anything about being within the last candle uh abby yes it is it is recorded don't worry okay okay zen i am a bit confused with the exhaustion candle and trend continuation pattern okay okay kono uh and zen let's uh let's let's do this one more time let's do this one more time okay is the sound okay for most of you guys i'm sorry if the sound is a little bit off for some of you guys um yes okay okay so let's uh go back to a couple of things okay an exhaustion candle okay when you have the market going in a trend the market is going in an uptrend in this particular case market goes up in an uptrend and then you have a pattern like this which means a very large tail and then uh we have a small body okay you can have a little tail on the other side also that's okay but a very large tail okay is the candle bigger than the last candle yes okay do we have a trend yes is the tail significant yes these are all indications you see the market is trying to go north but this tail indicates there's a lot of selling pressure lots of people once the market went long in the hour they keep pushing it down again and again and again and because they keep pushing it down you have this little body little any any little body okay that indicates there's going to be a reversal in the trend okay so what happens is uh once you have this uptrend and then you get an exhaustion it reverses the market okay uh zen and uh let's see the other one uh kono everyone are you guys with me so far okay yes okay good so this is a pattern an exhaustion is a pattern to reverse the market to change the direction of the market okay if you're in an uptrend it will change the direction and take it down into a downtrend okay how long it does that for it does not matter all we know it changes into the downtrend so in this particular case yes now in a trend continuation pattern you have this exact same pattern but upside down it's the other way it's the other way now you can see this which direction is this trend okay the direction of this trend is down for the market to reverse where do we need the tail to be if we want the market to go up okay the tail should be here there should be a large tail here indicating there's a lot of pressure coming in but is that the case here okay no in this particular candle there's a lot of pressure coming in from the top this is just like an exhaustion it is just the other way around and this is in a downtrend and the exhaustion is also saying go down okay this is what we call a trend continuation pattern okay in a trend continuation pattern you need a couple of things you need to make sure that the market is trending you need to make sure the second thing is that it's at least bigger than the previous candle and the third of course you need to make sure it looks like an exhaustion okay so Kono and Zen does it make sense the difference between exhaustion and trend continuation okay so it's 817 now i'm going to give you guys two more examples we're going to go take this all the way up to 819 more or less and i'm going to give you some false examples to make sure you guys know which one is correct and incorrect and then we move to the next pattern okay let's continue here is this a trend continuation pattern okay not really not really no no no no good very good okay not a trend continuation pattern first of all immediately previous candle forget the body and everything previous candle way too big okay Hendrick very good very good okay moving on forward is this a trend continuation pattern okay reason reason reason what is the reason why it's not prince good job so there are sanjo good the previous candle is way too big it's way too big so this is also incorrect okay all right so is everyone understanding the concept of a trend continuation pattern anyone lost so far okay Hassan i have a question okay Hassan what is your question andrej do we look at body or whole candle to say it's bigger than previous candle you look at the entire candle andre from the top to the bottom like the high and the low everything uh naveen this analysis for candlestick does it work on upper one hour charts it works one it works on most charts but stick to the one hour it's safer much much safer trust me one hour or higher nothing below that anything below one hour chart is is like swimming with the piranhas okay what about this particular one what do you guys say about this is this any trend continuation pattern yes or no okay some say yes some say no okay now let's go through the questions let's go through the questions is there a trend answer that question first yes there is a trend okay it's in a downward momentum second thing is this current candle that we're looking at is it bigger than the previous candle okay that's two yeses third question is this an exhaustion like an upside down exhaustion okay third question is also yes this is a trend continuation pattern okay this means when the next candle opens up no matter what it does let it retrace and everything but it's gonna head down okay that's what we call a trend continuation pattern okay now for those of you who are still lost you guys can always look look through the recording but right now we need to move to the next Nusdin looks like a pin bar it is a pin bar but it's an upside down pin bar okay that is a trend continuation pattern okay now Walter will go through all these minor questions towards the end around 835 on my time but right now let's go to the next next pattern so everyone everyone with me so far we did exhaustion and we did trend continuations okay these two patterns we've done so far okay now what we're going to do now is one more trend continuation pattern which we call the false exhaustion okay Marvin the three characters for continuation okay is it in a trend criteria one criteria two is it bigger than the previous candle okay and then criteria three does it look like an exhaustion okay wow we have a full room here we i'm sure nobody else can get into the room now we have a hundred people in here it's packed okay now let's let's uh let's move on let's move on um is it in a trend is it bigger than previous very good friends very good okay so the next pattern we're going to discuss is also a trend continuation pattern but it's a different one okay it's a different one this is what we call a false exhaustion pattern okay and we'll get to what what that means in a bit um let me see if i can find the next example let's start with here and then we work our way to good ones and bad ones this right here this pattern here is what we call a false exhaustion pattern okay this is a name i've given it okay i don't know what it's really called in the real life market um i'm sure there are some at least 20 names for it but i call it and false exhaustion here's why for this to be an exhaustion the body must be smaller right everyone agree with that because the tail is only 50% and so is the body it's like half and half but if the body were sharper like over here and this tail was this long we would know it's our reversal in the market it would change the direction of the market in this particular case it's not this is what we call a false exhaustion what a false exhaustion actually means is the market is first of all it's long okay but there is pressure also from the top but not too much and not too much pressure which means the market continues long okay the market continues long but with a little bit of pressure coming in on it does that make sense uh nustin does the clothes have to be lower than the open no okay good good good everyone understand okay let's move on to some more examples and we do examples of patterns that did not work okay is this a trend continuation pattern by false exhaustion okay mixed answers mixed answers why okay let's let's let's go let's let's open this up let's open this up now for this to be an exhaustion what must it be like the body must be a little bit sharper right the body should be this big like very very tiny like around here right sorry let me move it lower the body should be around this big and the tail this big that would indicate the market wants to reverse correct but but for an exhaustion what do we know about an exhaustion is this candle bigger than the previous candle okay no it's not it's probably the same size right uh dreamy says looks the same okay good when they're same or if it's not you avoid it so this is not a clear trend continuation pattern it means then the next candle we don't know if it's going to actually go short okay so this is a pattern that did not work this is a perfect example of a trend continuation but because a previous candle has so much strength the chances are that we don't know what's going to happen in this one the tail is quite big the body is quite big that's fine but it's a mixed sentiment on that one okay let's let's move on let's move on aha now let's sorry let's do it one step at a time is this a trend continuation pattern okay it's an upside down exhaustion it's an upside down exhaustion but no first of all yes okay we can't say it is in a trend if we take a little bit larger trend okay maybe okay on a smaller scale there is no trend there's only one candle that says no it so second thing the previous candle looks bigger so it's it's wrong this is no good now is this a trend continuation pattern okay very good very good and now those of you guys who are saying no let me explain why let me explain why okay do we have a trend now okay let's say this particular candle closed okay it closed and we are here okay we had we had a high i mean a low higher low higher low we had a high higher high and a higher high we can clearly see the markets in an uptrend okay so we have a trend second thing is it is the candle bigger than the previous candle yes if this body here were to close all the way down here would that be a good exhaustion to tell us that the market wants to go down yes but it didn't do that the body closed up here we have a 50-50 almost look alike here the tail is big as the candle which means the market has a lot of pressure to go north and it has also some pressure to the south indicating the next candle continues long but with some pressure you can see the strength of the next candle how far did it go not too far okay everyone with me so far does that does that make sense okay let's do a couple more examples we'll go we'll go through the reasoning behind that and then around 835 we stop it there and we'll go through any questions you guys might have okay is this a trend continuation pattern hey no no uh andre your answer to your question is no no we we leave it alone if it has problem like that okay so everyone is saying no okay weaker than the previous the previous candle is way too big way too big okay so no all right trend continuation pattern here yes it's an upside down exhaustion bigger than a previous candle and it's also in a trend next candle opens goes long is this a pattern what kind of pattern is this one good very good exhaustion hammer pinball yes good now what about this one okay the answer is no this is not an exhaustion the previous candle is way too big okay remember just because the next candle went north does not make this valid okay now go into the next question is this a trend continuation pattern no previous candles too big good good very good very good okay very basic concept first thing that comes to your mind previous candle first in previous candle if you cannot look at the previous candle you're thinking too much stop thinking too much just focus previous candle and then move on don't think way too much don't overanalyze there's no point for overanalyzing okay is this a trend continuation pattern okay the answer is no good what about this one good good so you got to catch them on good job okay so we've learned three patterns today and these are the three most popular patterns in terms of predicting the direction of the market the one is an exhaustion candle of course you guys know what reasons they must be clear this one is clear or not clear okay good good not clear previous candle too big okay so three patterns right exhaustion candle a false exhaustion and then we have an upside down exhaustion all we're using is these exhaustion just in different methods and and then you get to sense the direction now there is one more pattern which we call a consolidation pattern is when you have smaller candles and you can see the body almost being in between okay a lot of you guys might call this doji i personally call this doji all the time for me these are all doji's to me doji's have no sense of direction okay although the books tell you the these are reversal patterns they're not open your books check out all the markets open the markets and check them out it's not okay it's simply a body on top i mean a tail on top tail on bottom okay can you guys excuse me one moment please hello hey what's up dude yeah yeah i'm still i'm still working too hey can you do me a can i do can i do you a favor i'm in a seminar can i call you here back in like five minutes all right take care so yeah okay so yes iphone 4s okay so these are consolidation patterns where the markets pretty much halt okay tails on top tails on bottom and small candles this whole area is a consolidation zone you can see small candles tail on top tail on bottom okay so that is pretty much our candlestick formations any questions any questions any questions related to candlestick let's go through all the questions related to candlesticks first and then you guys can ask me any other questions later okay well current decision indicated by doji needs supporting evidence for direction uh abhinav there okay this is just pattern recognition this is to understand which direction the markets going it's not a signal service it's not like okay because it's long you're gonna enter long you're gonna buy now and then you're gonna sell later no no no it just tells you how to see which direction the markets are going okay you can add this into any system you want you can plug it into any system you want okay might share a true true reversal bar need to close inside the previous bar uh for uh exhaustion candle yes yes that is that is correct abhinav try to avoid scalping but if you have not done much of it then go for it do it get it out of your system but if you can avoid it avoid it mark is a trend higher high and lower low by body or tail or either by tail mark uh zen is it a signal to enter the trade no zen these these patterns are not signals okay these if you use these patterns in correlation maybe then then you have a a proper system okay if you use this with the pro trading strategy if all seven pairs are doing the similar things you can trade it to the next uh you know during your next pivot line okay uh chris uh these are the kind of formations you follow with your strategy yes yes so there are what about what support resistance yes you can use it with support it's the same thing with the pro trading strategy use it with supporting resistance robert uh but you can use this signals with pro yes yes jota that continuation pattern is the most confusing of all can you write specific rules for the continuation pattern um i i avoid writing rules because you cannot trap the market with certain rules um but uh okay trend continuation patterns uh for upside down exhaustion three criteria is it in a trend okay number two um uh what was the other one is it bigger than the previous candle and number three is it uh does it look like an exhaustion candle okay chris man so you keep all other kind of sick formations out yes yes because take a look at the charts take a look at my screen there are nothing but exhaustion candles trend continuation and false exhaustion every little thing if i go into detail i can give 200 names on just that one screen that i'm looking at we simplified it into three things okay so just uh this is how you can uh focus with these three things only and try not to overanalyze things because it will it will confuse you okay uh kaseem one long candle is a trend uh what is the minimum um i i don't understand kaseem can you ask that question again what what do you mean by minimum nelson finish up your book already yeah the book will release next year i'm so not uh not progressing with that so far not i'm good at writing uh phil uh did you do a correlation webinar last week yes phil i did it will be released this week on youtube ronald uh if it's smaller than the previous candle it cannot break the trend uh answer so it's uh in a way also a trend continuation yes correct ronald rehmann false exhaustion one more time okay let's do false exhaustion one more time let's see here so let's uh first of all um run uh where's rehmann first of all can we use this as first the question you want to ask yourself is is this an exhaustion okay no this is not an exhaustion okay for this to be an exhaustion it must be bigger than the previous candle in this particular case it's not so if it cannot be an exhaustion it cannot be a false exhaustion also okay that's that let's move forward to show you more examples now here the current market false exhaustion okay there are some here okay there's one here and a potentially one here now this one here if you take a look closely the pattern is for a short the trend is short if this particular candle ended up looking like an exhaustion which means the body closed tight like all the way up here and we had this long tail it would have possibly reversed the market right uh rehmann okay yeah it would possibly reverse the market if the body was really sharp like like a little box over here and then this big tail but it didn't do that in fact you have a large body and you have a tail maybe like 40 big quite large tail this indicates a false exhaustion which means the next candle will go short but not too strong because what this indicates is the market has a strong movement excuse me the market has a strong movement for a short but there is some buying pressure coming in this is the reason why you have some tail here like a pretty decent sized tail so the next candle actually ends up going short but you can see it didn't go too far right same thing happened here if you see this pattern this pattern if the next candle uh if this particular candle let me let me clean all this up if this particular candle if it closed up here near the open would you be confirmed that we are we are going long so that would be a perfect exhaustion right because the previous candle is small and this is a massive candle okay so but it didn't do that but we know what what do we know from this information massive candle indicating a short plus pressure coming in from the bottom as well which means the next candle continues short but not for long and that's why you see the next candle opened here and this is how far as it went it couldn't reach the previous candle so as far as it went same thing it did over here once this candle was done the next candle opened up it went down but it could not reach the previous candle because there's too much buying pressure but you know the direction you know where it's headed same thing happened here you know where it was headed but it halted does that make sense okay good good all right guys i am going to have to cut the webinar now it is 845 we've gone over this by an hour and 15 minutes um andres yes one hour or above is always good okay thank you so much for attending i hope you guys got a lot to learn from this particular webinar and oh yes uh welter if you're living in the est try to wake up as early as you can um european session going all the way to mid u.s session is the best times around 12 p.m eastern standard time 12 1 2 maximum okay have a very good night guys and thanks again for attending i will probably see you guys on the next webinar which is on wednesday and uh do do please do help me um comment on these videos when i post it up on youtube you can comment below the video also help me share them and like them if you obviously like it thanks a lot take care have a good night