 So when you first start trading and start looking at charts, it seems confusing, complicated, and just straight up overwhelming. You probably might even consider quitting within the first minute of looking at your first chart. I'm sure many of you have even come across charts like this and just thought, what the hell am I looking at? If this sounds like you, don't worry. Trust me. I went through the same thing and I felt the same exact way when I first started on my trading journey. Today we're going to strip naked. Get your mind out the gutter people. I'm talking about stripping naked these price charts and we're going to learn how to understand candlestick chart basics in a simplified manner as I wish it was taught to me when I first started trading. So forget this. Let me show you exactly what it is you need to know. Hey, what's up? Jay here and welcome to Bitcoin Daily, bringing you guys the best tips, tutorials, and ideas to help you guys become profitable and successful traders. The goal of this channel is to empower you guys with the resources and knowledge to help you guys get to that next level. So if you guys are new here, make sure to hit that subscribe button. Make sure to put a thumbs up on this video if you get value of course and don't forget to turn on that notification bell so you're notified every time we post up a new video. So let's get a little backstory on candlestick charts. The Japanese began using technical analysis to trade rice in the 17th century. Candlestick charting first appeared sometime after 1850. Much of the credit for candlestick development and charting goes to the legendary rice trader named Homa from the town of Sakata. It is likely that his original ideas were modified and refined over many years of trading eventually resulting in the system of candlestick charting that we use today. So what are the Japanese candlesticks? Japanese candlesticks are a way of presenting the price action over a set period of time. They provide information such as possible reversals in the market by showing the price movement in a specific way. They can be used in any time frame whether it be one day, one hour or 30 minutes. It really doesn't matter. Japanese candlesticks are formed using the open, high, low and close of the chosen time period. All right. So the first thing we're going to do is strip this chart naked. So we're going to take off every single indicator that we have on here. So now we are only looking at the candlesticks with none of the fancy stuff, right? So candlesticks in the most basic sense show you a bullish candle and a bearish candle, right? So red is bullish. A bullish candle shows that the price has increased over that period of time and a bearish candle is red. A bearish candle shows that the price has decreased over that period of time. So in this example, we are looking at the daily timeframe. You can see that because it's right here. If you just go over it says one day. Remember, you can pick any time frame that you wish to look at the candlesticks in. Right now we are in date. In one day, you can put one week, one month, you could go to hourly. It doesn't really matter. It's up to you how you want to look at it. So remember, whatever you have chosen there is what each candlestick represents, right? So because I'm in one day, that means that this candle equals 24 hour period. This candle is a 24 hour period. This is a 24 hour period and so forth. Every single candle represents a 24 hour period. If I switched to one week, now you see that the candlesticks, the patterns look different. Everything looks a little bit different because now each candlestick represents an entire week. So this is what happened, what the price did within that entire seven day period. The next candle is a seven day period. The next candles, a seven day period and so forth and the same thing goes. If you switch to one hour, notice how everything changes. Now every candlestick that we look at is going to represent one hour. So this represents what the price did in the last hour. This represents what the price did in the last hour. This represents what the price did in that one hour. So each candlestick represents one hour. So the next thing you're probably wondering is why are some of these candles fat and why are some of these skinny with the little stick, right? So the fat rectangular part of the candle is known as the real body, okay? So this is the real body, this is the real body. Regardless of how long these little sticks are on either end, this is still the real body, this is still the real body. It doesn't matter what color it is, green or red, they are still, these are the real bodies, right? So remember, green is a bullish, red is bearish. Green means the price went up, bearish means the price went down. So looking at our example here, this is a one day candle, it represents today, and you can see it's green. So that means that the price has gone up, this is the real body. Now if you look at yesterday's candle, it's red. That means that this is a bearish candle, and it means that yesterday the price went down. So now you're probably wondering, what are these little skinny lines here? Like, what is this? Why is, why are these too fat and why is this one just skinny with long lines on both sides, right? Why does this one have a super long line up and then a short line on the bottom? These are all questions that we ask ourselves the first time that we look at these. So these lines are also known as shadows, tells and wicks. This long line represents the highest price during the time period. And the bottom line, we guessed it right. This represents the lowest price during the time period, regardless whether it's a bullish candle or a bearish candle, regardless of how long or small the candle, the lines are, the wicks are. It always represents the highest price and the lowest price during the time period of the candle. So looking back here, you can now tell that these lines or wicks are representing what the highest price during this entire day was and what the lowest price during this day was. So yesterday's lowest price was $43,802. Yesterday's highest price was $47,495. Today's highest price has been $48,752, while today's lowest price has been $44,051. So now we know what this long rectangle means. We know what these lines mean on both sides, right? But you're probably still wondering why these rectangles are so long and this one is so small. These are called doji candles. So what these candles mean is that the price opened and closed either at the same price or very near the same price. So these always have either little or no body at all. So when looking at bullish and bearish candles, it's also important to know on which side of the candle the price opened and on which side it closed. So on a bullish candle, the opening price is always at the bottom. The closing price is always at the top. On a bearish candle, it's the opposite. The opening price is at the top. The closing price is at the bottom. So because this one is a bullish price, it's green. That means that the price opened down here and closed up here because this one is red, right? Both of these are red. Any red candle on a red candle, it means that the price opened up here and the price closed down here. Now remember that the wicks simply mean the highest price that was traded during this time period and the lowest price that was traded during the time period. So if you just put your mouse over any of the candles, it's going to show you the opening price, the high, the low and the closing price. You can see all this information right up here. Depending which candle you go over, it's going to show you the different information for each candle. You'll notice that as I swap from candle to candle, it tells me different opens, different highs, different lows and different closes. So that is the basic foundation of reading a chart. When looking back at the chart now, you can see that these candles here were all bullish and pushing the price upwards. These candles here, the red ones were all bearish and pushing the price down. Then of course we have some doji candles here, which means that the price was just opening and closing in the same exact area. So even though when you first start looking at price charts, it looks overwhelming and confusing, the more time you spend understanding what you're looking at, the easier and easier it becomes eventually gets to a point where it's like reading a book. You just open up the charts and by taking a look at it for a few seconds, you can read exactly what's going on in the market. Every time you switch timeframes, it's basically like turning the page of the book and reading a little bit more into it. Guys, if you've enjoyed this video and found value in it, please go ahead and hit that thumbs up. It helps us immensely. If you guys are new here, remember to subscribe and turn on the notification bell as we continue to put more and more content like this out there every day for you guys for free. Don't forget to follow us on our social medias, bitcoin.daily. And if you guys have any questions about anything on this video, go ahead and drop a comment below with your questions and we will be happy to answer them for you. Thank you guys so much. I'll see you guys on the next one. As always, peace and love.