Learn Stock Trading: Bullish Candlestick Entry Techniques


what’s going on everybody this is floogiel trader trader Jeff and author of the book trading part-time and in this video
lesson we’re gonna talk about learning how to stock trade Candlestick entry
techniques and stick around to the end because I’ve got a free document that I
created to help you trade more like a professional so let’s check out the
video welcome to this video lesson learn stock trading candlestick entry
techniques now there are a lot of entry techniques that a technical analysis
trader can follow but we’re gonna talk about a few here today that’s gonna help
out with your trading tremendously so let’s go check out the candlestick entry
techniques okay so today we’re gonna look at some small candle patterns
bullish and we’re gonna look at some large candle patterns bullish so we’re
gonna talk about bullish entry candles in this video lesson okay so the first
one we’re going to look at is the dragonfly doji okay the dragonfly doji
is preceded by a down trending stock and it’s a potential reversal bullish
reversal back to the upside okay we’re gonna take a look at the hammer just
like Thor’s hammer the hammer hammers out the downtrend so the key is when you
have a downtrend we want to start looking for hammer candle patterns for
potential clues to reversals back to the upside the third one we’re gonna talk
about is the on the small candle patterns is the inverted hammer the
inverted hammer is the hammer but flipped upside down okay again it’s a
bullish entry candle potential reversal back to the upside so whenever we have a
downtrend in the stock we’re gonna look for an inverted hammer as well to give
us a potential clue as to reversal back in the upside
then we’re gonna take a look at some large candle patterns and in the large
candle patterns we have one is a bullish per ami it’s a large candle pattern
because it’s a two candle pattern the ones I just talked about a minute ago
the dragonfly doji the hammer and the inverted hammer are one candle patterns
that’s why I call them small candle patterns but in the large candle
patterns we have the bullish harami it’s a two candle pattern again it’s a
downtrend followed by a two candle pattern it’s a big red candle followed
by a small either white or red candle but it’s inside the body we’ll talk
about that we’re gonna look at a piercing line two candle pattern
potential reversal we’re gonna look at what’s called a bullish engulfing it’s
gonna engulf the previous candle again potential reversal to the upside we’re
also gonna look at it the morning star pattern okay it’s a three candle pattern
and guess why it’s considered Laurel but again it’s a reversal pattern so let’s
go take a look at some small candle patterns on the chart
so what we’re looking at is the SPX which is the 500 largest companies in
the world and if you see here we’ve got a couple of things right here we have an
inverted hammer see it’s a downtrend followed by this nice inverted hammer
leading to potential upside okay so the buyers push the stock up the sellers
pushed it back down and we form this inverted hammer like pattern okay so an
inverted hammer is a potential reversal pattern if you notice the momentum
continued going up so that right there when you see an inverted hammer which is
a hammer twist it upside down that is a potential reversal sign and so the next candle pattern we’re
gonna look at is the hammer candle pattern so take that inverted hammer
that we just talked about and flip it around now and a hammer okay a hammer
means we’re hammering out the downtrend so let’s take a look at one on the chart
this is the SP X again we have a downtrend followed by this nice hammer
right here if you notice sellers push the price down and then buyer step back
in and push it up forming this nice hammer
okay now candlestick entry when you see this this is not an automatic entry into
the stock this is a potential setup pattern we have to get momentum
follow-through but if you notice look what happened here the momentum followed
through and we presumed an uptrend okay so this hammer hammered out the down
trend we pushed it back up so the second one is our hammer okay so we have our
inverted hammer which is a potential bullish reversal candle pattern looks
just like this let’s flip it around and we have the hammer just like Thor’s
hammer boom we’re hammering out the down trim you see that potential rise the
upside and then the third one that we’re going to look at is the dragonfly doji
so let’s go find one of those on the chart
so now we’re gonna take a look at the dragonfly doji is again this is a
potential bullish reversal candle so let’s take a look at that again we’re
looking at the SPX if you notice we have a downtrend and how do we know it’s a
downtrend because the line is going down that’s an easy way to know the trend if
you notice we’re going down or going down or going down right here okay we
have sellers pushed it all the way down buyers push the price back up and we
formed this nice dragonfly doji now the dragonfly doji it looks like a hammer
but it’s a smaller body at the top now it doesn’t have to be perfect but again
the key is as a potential bullish reversal candle so when you see a
dragonfly doji at the bottom of a downtrend that’s a potential clue
that’s a reversal so if you notice going the next day we had a red candle white
candle out followed by another dragonfly doji again momentum on the down is now
stalling and then off to the races on the upside okay so again we got our
dragonfly doji at the bottom of a downtrend
we got another dragonfly doji right there see how it’s a very thin body and
then the momentum push all the way back in the up so that is the dragonfly doji
so now that we’ve looked at some small candle patterns let’s take a look at the
large candle patterns okay so now we’re gonna take a look at a bullish Pirani we
have a downtrend if you notice this big red candle and then we have this small
white candle that’s inside the body of this big red candle dental trend this is
inside the body now you can’t you can barely see it but this is inside this
body okay and so when we get there it’s called a bullish marami downtrend
inside the body off to the races so again it’s a two candle pattern big red
candle followed by a small white or red candle but the key is that it’s inside
the body of this candle and it’s a potential two candle reversal pattern
back to the upside and here’s another example of a bullish Hourani okay so we
have a downtrend big red candle and then this white candles inside the body of
that large red candle so it’s a bullish Pirani is what they call it and
candlestick analysis and again it represents a potential reversal back of
the upside the momentum is down and then momentum is starting to shift okay so
this candle is inside the body of the previous candle followed by a downtrend
that’s another example of a bullish haraam
all right so the next bullish large to candle pattern we look at is the
piercing line formation again it’s a down trending and then followed by it’s
a toucan of pattern so you see we have this red candle the open was lower then
the close here so it gapped down on the open and then price shop back up and
closed above this halfway mark so it’s a two candle pattern it’s a red candle
followed by a gap down and then buyer stepping in but it opened here but
sellers push it all the way down but buyers pushed it back in to where it
closed above this midway point so it’s a two candle pattern where you large red
candle gap down and then it push back up and closed above the midpoint two candle
pattern again and look what happened we’re gonna nice follow-through and a
trend resumed to the upside so it’s a two candle pattern potential reversal
big red candle price gaps down sellers push the price down by step up shoot it
up and it closes above the mid candle that is a bullish piercing line
potential reversal candle pattern okay and so the third large candle pattern
bullish potential reversal is the morning star pattern this is a three
candle pattern that happens at the bottom of a downtrend
for example downtrend okay you’ve got a big red candle price gap down okay buyer
step back in and the next day price shot back up okay and so you see this big red
candle small candle followed by another big white candle that is the Morningstar
three candle pattern okay and then look at this price shot back up
to the upside so it was a bullish reversal candle pattern followed on a
downtrend the key is is a three candle pattern doesn’t have to look exactly as
in a textbook but the key to know this is a big red candle price gaps down a
little or a lot okay in this case look formed another red candle could be a
white candle but it gaps down and closes lower and then price the next day shoots
back up gaps up and it gapped up a little bit and form a big white bullish
candle pattern three candle pattern potential reversal back up to the upside
okay and so now we’re gonna take a look at the bullish engulfing it’s a two
candle pattern but it’s a very powerful candle pattern so we have a downtrend
red candle followed by this big white candle if you notice here the reason why
it’s called a bullish engulfing his number one is the body that low the open
and the close engulfs the body of the previous candle now you can heart it’s
hard to see right here but the low is lower than this one right here and so
that candle engulf the body of this downtrending candle so when you have a
downtrend you have a red candle followed by a big white candle that engulfs the
body it is called a bullish engulfing a very
powerful potential reversal to the upside if you notice momentum followed
through and we had a nice uptrend after that so we have a downtrend red candle
followed by a really big white candle that engulfs the entire body of that
candle and then momentum shifted to the EFT side very very powerful candle
pattern is the bullish engulfing candle pattern
so now let’s take a look really quickly at what we just talked about small
candle patterns these are bullish candlestick entry reversal patterns
number one is a dragonfly doji downtrend followed by this dragonfly doji which is
a very thin top sell let’s push the price down buyer step back in and form
this thin top we look for confirmation for potential reversal pattern to the
upside followed by that dragonfly doji the hammer hammering out the down train
again downtrend sellers push the price down buyers push the price back up we
form a a hammer-like pattern it’s not as thin at
the dragonfly doji a little thicker but looks like a hammer getting potential
reversal camo pattern to the upside inverted hammer exactly the same but
flipped around opposite okay again buyers push the price up sellers pushed
it down but it’s formed the hammer at the bottom and then if momentum
continues through then we have a bullish reversal now we have our large candle
patterns we have our large candle pattern is a 2 or 3 candle pattern as
opposed to one we talked about the bullish harami price goes down red
candle followed by a candle that’s inside the body of the previous candle
potential reversal back to the upside and a piercing line we have a red candle
prize shot down the buyer stepped in the candle the next one and push it up and
it closed above the body of the red candle two candle pattern price shut
down pushed it back up closed above the body we have the bullish engulfing the body of the OKC a red candle and
then the next candle the body engulf the body of the red candle it’s a bullish
engulfing it’s a very powerful signal that it’s gonna be reversing back to the
upside very powerful signal big white candle engulfing the body okay and then
we had our Morningstar three candle pattern large red candle gapped down
form the smaller candle and then the next candle pushed up at the open and
formed a big white candle so three candle pattern Morningstar reversal
and now you know stock trading Candlestick entry techniques but do you
know the 10 most common trading airs no problem I’ve created a free document
that I want to give you called the 10 common trading errors right how to avoid
the traps that most people face for example trading too much that’s one of
the big traps ok so I want to give this to you for free so click the link in the
description box below to download it now if you like this video don’t forget to
hit the like button below share it with your friends and subscribe to the
channel until next time I’m flu Gil trainer Jeff author of the book trading
part-time and we’ll see you in the next video lesson

10 Replies to “Learn Stock Trading: Bullish Candlestick Entry Techniques”

  1. Your explanation is thorough…I'd never even HEARD of "candlestick entry techniques" but of course, especially as I age, I've been looking more into stock trading, investments, retirement, etc. This channel is a nice resource!

  2. I will share this video with a friend of mine. This sounds too complicated for me. Thanks for sharing.

  3. Cindy-lou Schmidt, Broker, REALTOR® - RE/MAX - Serving Waterloo Region and surrounding area says:

    You've got a ton of info on your channel! Awesome!

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