[0:00]Sir, are you okay? Sir, what are you talking about? You've brought the market down like this. I don't talk to anyone, man. Then how did this market fall so much? Oh, I just looked at the candles. So the candles told you? Yes, the candles told me. Sir, what are you joking about? Candles can't tell you that the market is going to fall. Brother, candles tell you, come to class, I'll teach you how they tell you.
[0:25]Hello everyone, today's lecture begins with an example. Look, this big move that you're seeing on the chart, you could have predicted this move in advance if you understood the psychology of candles. Because here, some candles are formed that were already telling you that the price might go up. I'm not saying that you would have known that it would increase so much, but you could have known that it would increase. You could have understood this earlier if you understood the psychology of candles, if you understood the language of candles, and understanding the language of candles means that once you understand that language, you are directly talking to the candles. Yes, those talks won't be in Hindi or English, but those talks are done by looking at these patterns. So in today's video, in today's lecture, we are going to talk about this in detail. If you are watching our lecture for the first time, then let me tell you that this lecture is what I am teaching my team about trading. And already, all these lectures have already been published on our YouTube channel. You will find them in the playlist section, and every Saturday and every Tuesday, we have a lecture coming out, and this lecture you are seeing today, March 31st, will be followed by another lecture on April 4th, which is a Saturday. And after that, every Tuesday and every Saturday, we have a lecture coming, and it's a complete course of 10 lectures, which would be around 25,000 rupees, but we are providing it to you absolutely free. So, please like the video and mark your attendance, and also comment and tell us where you are watching this lecture from. Within three days of this lecture being uploaded, all the comments that come in, we will give a heart to all those comments, so please comment and also like it. Now let's start this lecture and first of all, let's understand here that if you want to understand the language of the candle, its psychology, then you have to understand a little about the candles first and how these candles are formed.
[2:15]We have already discussed a little about them before, but here I am going to tell you about one more important thing, and after that, we will slowly move forward. So first of all, let's understand here what these candles are and how they are formed. So, by now you have watched this lecture of ours, so you would know that a red candle means that the price has fallen in it, and a green candle means that the price has risen in it. So you would know this much. So now pay close attention. Look, whenever you see that the price of a share is rising or falling. Or in any chart, the price is rising or falling, then there is a very big reason behind its rise and fall, and that is demand and supply. If we talk about shares, there are other reasons, but if we talk about crypto, then there the price purely rises or falls based on demand and supply. That means if the demand for something increases, its price increases. If the supply of something increases, that is, there are more sellers, then its price falls. The entire stock market, the entire crypto market, all the markets, all the charts, are based on only one thing, and that is demand and supply. If demand increases, there will be more buyers, and the price will increase. An increase in price means green candles will be seen. If there are more sellers available, fewer buyers available, then that means the supply is more, there are more sellers, then that means the supply is more, and there are fewer buyers, then the price will fall, meaning you will see red candles. That is, the whole game is about demand and supply, and you just have to find out where the demand is more, and where the demand is less, and the supply is more. If you understand this, then you have understood all the charts. Now, to understand this, first, for those who don't know, let me tell you what a red candle is. I've already told you that the price has fallen in it, but if the price has fallen, it means the price must have been higher before, and then it came down. So in this place, what happens is, for example, if you see this red candle, let's say its price was 100 rupees here. When the candle opened, the price was running at 100 rupees. Now, it's not like the price suddenly falls after that. Sometimes the price keeps increasing, increasing, increasing, and goes up to around 105 rupees. After that, what happens is that a lot of supply comes here. Many sellers come into the market, and when many sellers come, the price starts to fall, fall, fall, and keeps falling. Now, when the price comes down so much, let's say from here, the price has fallen to 85 rupees. Now, if something was 100 rupees in the morning and now it's available for 85 rupees, don't many people feel that it's very cheap? I should buy it. Now, even if you compare it with potatoes and onions, if something was available for 100 rupees a kilo in the morning, and in the evening it's available for 85 rupees a kilo, won't there be more buyers? So in such a situation, buyers come, and because of that, the price gradually increases, and as soon as the day ends, the price closes at 90 rupees.
[5:08]That is, it started at 100 rupees, the price went up to 105 rupees, after that, many people started selling here because 105 rupees was a very expensive price. People said it's very expensive, they started selling it, and when they started selling, the price started falling, and kept falling until it reached 85 rupees. Here, people felt that it's very cheap, they started buying it, and because of that, the price started rising, and when the day was completed, it reached 90 rupees. Now, if you look closely here, when the day started, what was the price? It was 100 rupees, and when the day ended, what was the price? 90 rupees. That is, this body of the candle, this body, it opens when the price opened. So here, the body you see, it tells us that the price opened at 100 rupees and went up to 90 rupees, and these thin sticks you see below, they are called wicks by some people, some people call them shadows. This tells us that the price went up to 85 rupees throughout the day, and it closed at 90 rupees, and the upper stick tells us that the price went up to 105 rupees throughout the day, but when the price opened, it was 100 rupees. So you understood how a candle is formed? Is there any doubt here? No sir. Okay. Now if I talk about a green candle, in the case of a green candle, if a candle is green, it simply means that the price has increased. And why does the price increase? Because its demand is high. When demand is high, there will be more buyers, and the price will increase. So this means that here the price must have first opened lower, and after that, it went up and closed where its body is seen. But in the same timeframe, look, when the price opened, it's possible that the price also went down a little. After that, when it closed, it's possible that the price also went up a little. That is, if you look at the red and green candles, both have the same high, both have the same low, but a red candle is red because it opened high and closed low. A green candle is green because it opened low and closed high. So you have understood this much, you have also understood that why the price opened high and closed low, it means that there is more supply here.
[7:16]Why did it open low and close high? This means that there is more demand. So the whole game is of demand and supply. So now, how will we find out about this demand and supply? Now we will understand about this, because this candle I told you for example, now there are many types of candles. Sometimes you will see a candle like this, sometimes you will see an inverted candle like this here, you will see a candle like this, sometimes you will see a candle like this, that is, there are many types of candles, and these different types of candles are what tell us what is going to happen in the market next, because there is a psychology behind the formation of every candle. You have understood this much, if you have any question here, you can ask me. No? Shall we move forward? Now, further, I will tell you different types of candles. Let me clarify that here I am not going to make you memorize the names of candles, like what is a hammer candle or what is a bullish harami, bearish harami. Brother, candles tell you, you go to class, I will teach you how to tell. I'm not going to make you memorize all these names here, I'm going to explain the logic behind them, after which you will understand by looking at any candle whether it is a bullish candle or a bearish candle. Okay, you have to keep this much in mind, but before that, there are some basic rules that you need to understand. These basic rules are very important because if you don't follow them, then as I said, it's possible that the candles are trying to say something else, but you are understanding something else. So the first rule is that a large timeframe candle has a higher chance of being correct. That is, if you are looking at a candle that is a 1-minute candle, and if you are looking at a candle that is a 1-hour candle, and if you are looking at a candle that is a 1-day candle. So if any candle, let's say a candle of this type, which is forming in all three. It is visible in all three places.
[9:08]A candle is visible here, then the one that is forming in one day, that will be more effective, that is, it will be telling more truth. Whereas the candle that is forming in one minute, that will be telling more lies, it will be making you fool. So you have to trust more on the candle with a larger timeframe. That is, a 1-hour candle, a 1-day candle, a 15-minute candle, you have to trust them more. The candle of a small timeframe is not very important.
[9:35]The first basic rule, you have understood it. After this, our second rule is this, that these candles are formed anywhere, then it doesn't matter.
[9:54]These candles will be useful only when they are formed near a support or resistance. Now, if you have seen our previous lecture, you will know what support is and what resistance is. What is demand? What is supply? So if a candlestick pattern or a candle is forming near a support or resistance, only then it has a meaning. If, let's say, a candle is formed in the middle here, then even if it looks like that candle, it has no meaning. You don't have to fall into its trap. If you fall into its trap, then it can make you confused. Okay, so you have to keep this in mind that if it is formed near a support or resistance, only then it will be a valid candle. So, if we look at the chart, this is our resistance, and this is our support. So if, let's say, a bullish candle is forming near this support, then we will consider it a valid bullish candle. If, let's say, a bearish candle is forming near resistance, then we will consider it a valid bearish candle. If it is forming in the middle, then we will not consider it a valid candle. Many people make this mistake that they see a candle anywhere, they understand that oh, this candle means this, they have also memorized it, and then they take a trade based on that, and their chances of being wrong are very high, and they lose money from the candlestick pattern. So two things are clear to you. After this, the third and very important rule is that you don't have to trade just by the formation of a candle. You always have to wait for confirmation. If you take a trade without confirmation, then your trades will be correct many times, but overall you will be in loss. If you take a trade with confirmation, then your chances of being correct will be higher. Now what is confirmation? Confirmation is that, for example, let me show you an example here. Here we have drawn support and resistance again. This is our support. Let's say a bullish candle formed here. Okay? You thought that this candle has formed, now as soon as the candle starts forming, you will buy right here. If you buy here, then it's possible that after that, the same candle will form again, so you would have placed your stop loss here, right? So your stop loss will be hit, and then the price will rise. So that's why you have to wait for confirmation, and for confirmation, generally, the rules are that you can confirm in different ways, you can do it through price action, you can do your confirmation through smart money concepts, which I will teach you in the upcoming lectures, but for now, let me tell you a simple confirmation method, and that is that if after this, if we are looking at a bullish case, then if after this, a candle closes above it. Let's say a candle closes above it here, then you can say that yes, this pattern that was formed was a valid pattern. So you have understood these basic rules, if you have any doubt here, you can ask. Sir, I had a doubt. Yes, tell me. So sir, as you said earlier, how will I know if a single long wick will form or a double will form? So that's why I told you earlier, I told you in the beginning, to use confirmation.
[12:51]So if, look, your single long wick candle is formed, then if you don't get confirmation after that, you won't take a trade there. You might see another long wick candle. If you get confirmation, then you can plan your trade there, then you will know whether it will be a single or a multiple. Okay, thank you sir. Now let's move forward and after this, let's understand about the color-changing candles. So here, look, what is the meaning of the color-changing candle, let's understand that.
[13:16]Look, here you can see that big red candles were forming continuously, red candles were forming continuously, and after this, here you are seeing that green candles have started forming continuously, and all this has happened near support. Or we can say that it has happened near the demand area, so when this happens, then we know that red candles were forming, meaning there were more sellers, green candles have formed, and are forming continuously, meaning that here the momentum of the buyers is increasing, the sellers are losing their momentum, meaning the sellers are decreasing, the buyers are increasing, that's why green candles are forming, so after this, you can be clear that maybe from here the price has chances to increase, but where should this happen? Again, it should be near support or near demand. Its opposite, look here, if you see that first, many green candles were forming continuously, but after that, here the color of the candle changes. Changing color means a red candle has formed, and what does a red candle mean? It means that there is supply there, that's why a red candle has formed, and what does a red candle mean? It means the price has fallen. So if earlier green candles were forming continuously, and after that, red candles start forming, as you saw here, red candles have started forming continuously, and all this has happened near resistance. Or we can say that it has happened near the supply area. So when this happens, then we know that green candles were forming, meaning there were more buyers. Red candles have formed, and are forming continuously, meaning that here the momentum of the sellers is increasing, the buyers are losing their momentum, meaning the buyers are decreasing, the sellers are increasing, that's why red candles are forming, so after this, you can be clear that maybe from here the price has chances to fall, but where should this happen? Again, it should be near resistance or near supply. So now let's move forward and after this, let's understand about shrinking candles. Shrinking candles means that, let's say, first you see that a big red candle has formed. After that, a slightly smaller red candle forms, then a slightly smaller red candle forms, that is, the size of the candles is decreasing, they are shrinking. So, if the candles are getting smaller, then a big red candle means what? It means the price is completely under the control of the sellers, they are crashing the price. But then it's getting smaller, it means that buyers have also started putting pressure from below, that's why the candle is forming smaller, then it's forming even smaller, it means that again here we are getting confidence that brother, buyers are now showing their strength from below, sellers were trying, if it was completely under the control of the sellers, that is, if more people were selling, then the price would have been falling rapidly, but right now the price, after a big red candle, then a slightly smaller, smaller, smaller candle is forming, it means that the sellers' strength is depleting, and after this, if you see that a big green candle is formed, then what does it mean? Here you will get confidence that oh, earlier these candles were shrinking, it means that sellers were losing their momentum. Now a green candle has come, it means that buyers have defeated the sellers. And this should happen where? Again, near support. So if it is seen near support, then you can understand that from here the price has chances to increase. But here, keep in mind that you don't have to trade just based on candlestick patterns. Now, our next lecture is about momentum candles. In momentum candles, see, as I told you earlier, support and resistance are important, and a large timeframe is also important. So here, you have to understand that whenever you see that, if we talk about bullish, that is, the price was earlier in an uptrend, so here there was resistance. So you saw that three big green candles were formed, after that, what happens is that a big red candle is formed, which, if we draw a line like this, starting from here, then the three candles, this has eaten up the three candles at once. This is called a momentum candle. That is, here the price has fallen very fast, which, in one go, has engulfed what the three candles had earned, and when this happens, then we know that the price has chances to fall, but even there we will wait for confirmation. Now, its opposite, if you ever see that near support, the price was earlier falling continuously, so when the price was falling, red candles were forming, after that, what happens is that, look, here, 1, 2, 3, these three red candles were formed, after which, the one green candle that has formed, this one green candle has engulfed these three candles, and even in this case, it has done it to four candles. So, it has done it to four candles, so this will be an even stronger pattern. The more candles it does it to, the stronger it will be, because the price was falling so much, after that, a single candle has given back everything that was lost, the price has risen, so here, this was a bullish signal, and after that, look, a good movement has come, so from here we came to know that the price has completely come under the control of the buyers, so here you could have planned your buying, but for that, you have to see many things. So this is our momentum candle.
[17:59]So far, what all have I taught you? First of all, I taught you that there is a long wick candle, an inverted long wick candle, multiple long wick candles, color changing candles, shrinking candles, engulfing patterns, inside bar patterns, momentum candle patterns. Now, look, if you watch videos anywhere on YouTube, you will be told the names of candles, that this is a hammer pattern, this is a morning star pattern, this is a three white soldier, this is a bullish and bearish harami pattern. So now I have explained the logic behind every type of candle that I have explained to you here. So now, if you apply any logic to these candles, you will understand things. For example, if I talk about the Morning Star candlestick pattern, then so far I have not told you about this pattern, nor have I explained any part of the three candles. But you will understand here that what happens in this candle is that the price was falling earlier, then a red candle was formed near support, then a small candle was formed, but after that a big green candle was formed, which should close above 50% of the previous red candle. Now, there is a type of pattern, which you can search on Google, bullish candlestick patterns, then you will see the pattern. But if we understand the logic behind that pattern, then you have clear logic that the price was falling, then buyers came, that's why the red candle was formed. And that is a bullish candle. Similarly, if a big red candle is formed, then it is called a bearish marubozu. But we know that a red candle is formed, and it is a big one, it means there is a lot of supply. So all the candlestick patterns that you see, the same logic works behind all of them.
[19:19]Similarly, here chart patterns are also taught to you, but if you also understand the psychology behind chart patterns, you will know that the psychology is working the same way. For example, here is an M pattern, now I taught you in price action that if the price falls twice after coming to a level, then this is resistance. So you know that it is resistance, so you don't need to memorize the patterns. If you have understood the psychology in this way, then now you can understand by looking at any candle that what is the logic behind its formation. And when you understand the logic, then magic will start happening in trading. So these chart patterns, we have included everything in this PDF. See, we have shown all the chart patterns, that if this type of pattern is formed in the chart, then as you are seeing here, the first top is formed, the second top is formed, the price has chances to fall. Three tops formed, the price has chances to fall. So you would have seen it once you get this PDF, that this pattern is formed, you saw in the chart that a similar pattern is forming, so the price is going to fall or rise, but you will also know the logic behind it. So this was the purpose behind our lecture, that you understand the logic behind the formation of every candle. So I hope you liked this video. If you want this PDF, then comment, besides this, if you have opened your account in Delta Exchange through our link, then fill the Google Form below. When you fill the form, our team will contact you, you can ask them for any PDF videos that have come, they will provide it to you. So this lecture, you have received it today on March 31st. Now, our next lecture will come on April 4th, which is a Saturday. So let's meet on Saturday, until then, if you haven't opened an account in Delta Exchange, then do it. And who all are going to watch the lecture on Saturday, comment and tell. If you want to watch the whole playlist, then the link is given here. So let's end this lecture here, I hope you all understood everything, understood? Yes sir. Okay, so thank you.
