Stock candlesticks explained: Learn candle charts in 10 minutes. / Stock chart reading tutorial tips


welcome to looking at the markets with
David Modell we’re gonna try to or I’m gonna try to explain to you Candlestick
stock charts and I’m gonna try to do it simply and I’ll try to do it in a few
minutes okay so right now we’re looking at a website called the stock market
watch calm and just to keep it simple I’m going to show you the daily
candlestick chart for Apple stock okay so these are candlesticks and each
candlestick represents one day of price action where the price went for Apple
stock and you don’t have to use daily Candlestick charts like this there are
weekly candlestick charts where each candlestick represents an entire week of
price action there are monthly candlestick charts where each
candlestick represents a whole month of where the price went and for day traders
there are one-minute candlestick charts where each candlestick only represents a
minute of price action there are five minute charts there are 30 minute charts
hourly charts where each candlestick represents an hour but to keep it simple
we’ll just look at the daily chart okay so each candlestick represents four
things it shows you the open the high the low and the close of that
particular trading day oh h LC open high low and close okay so let’s look at the
two parts you’ve got the body of the candlestick which is the the rectangle
that’s filled in okay and then you’ve got the wick okay and those are the
lines that are protruded protruding from the top and bottom some of them some of
these candlesticks only have a top wick some of these candlesticks only have a
bottom wick and some of them have both the top and a bottom wick but they all
have a body some of them have a very skinny body very small very slender but
they all have a body all right now for green candlesticks
if it’s green that means that the bottom of the body is where Apple stock opened
on that day on that particular day okay so at 9:30 a.m. Eastern Time
that’s the open that’s the opening bell of the trading day that’s where it
opened okay that’s the opening price that’s the price and then the if it’s
green it’s the bottom of the candlestick is the open for that day opening price
and if it’s green then the top of the body represents the closing price okay
that’s you know the four o’clock p.m. Eastern Time they ring the closing bell
to end the trading day and the top of the body of the green candlestick is
where it closed for that day so you got the open and the close at the bottom and
top of the green candle now if it’s a red candlestick it’s the opposite
because it went down that day so if it’s red then the top of the body shows the
opening price and the bottom of the body represents the closing price and so it
went it opened here and it closed here on a green candlestick it opened here
and closed here it’s the opposite of the red now what about the wicks well we
talked about the open and the close which are represented by the body of the
candlestick the wicks represent the high of the day how high the price action
went that day and the low of the day how low it went during the day
so for example on this one this is a red day so we know it opened here at the top
of the body closed here but at some point during the trading day during that
day the price of Apple went up it went all the way up to here and then and then
it came down and also during the trading day it went down here to the bottom of
the bottom wake but then came back up somewhat so we know four pieces of
information just from this little candlestick here since it’s red we know
that it opened here at the bottom of the body and then at some point it went down
a little bit it went down to here and also during the trading day at some
point it went as far as far up as here the high of the day top of the top wick
and then it closed down here it opened here it went this far down during the
day this far up during the day and then it closed right here at the bottom of
the body let’s look at a green one we know since it’s green then it opened at
the bottom of the body and it moved around it moved around a bit at some
point during the trading day it went this far down to the low of the day also
during the trading day it went this far up to the high of the day and then it
closed here since it’s green it closed at the top of the body all right now
you’ll notice that some of these candlesticks only have a top wick
so for example this one it it opened here since it’s green at the bottom of
the body and it never during that day really went below here it never went any
further down than here it opened here and then it went up during the day and
it went up this far to the top of the top wick and then came back down and
closed here let’s take a look at a candlestick with only a bottom wick like
this one I know since it’s red it opened here at the top of the body and it never
really went above that point because there’s no top wick all right and then
it went down and it went down all the way down here at some point at the
bottom of the bottom wick that’s the low of the day but then it came back up and
then closed here now take a look at this one this is an interesting one you can
see how skinny or slender the body is that means that it opened and closed at
nearly the same exact price it’s green so it opened a tiny bit higher than I’m
sorry it closed tiny a tiny bit higher than it opened
I know that because it’s green but still it and it had a lot of price movement at
some point during the trading day it went down here and then came up and then
during the trading day some time it went all the way up here but then came back
down and closed here it opened here and closed not much higher a little bit
higher because it’s still green but so those are it was almost a flat day
really okay so those are Candlestick charts and really they’re great because
they tell you for Pete for it vital pieces of information the open the high
the low and the close Oh a Chelsea so what I want you to do is start to start
reading Candlestick charts on your own and try to try to gather those four
pieces of information from every candlestick okay I hope this was helpful
to you I hope I explained it quickly but but pretty thoroughly I think I think
that’s really a great start but I want you to you know I want you to keep
learning and I want you to keep working on it on your own and if you’d like more
information on how to read charts and how to interpret them or if you just
want to put together a trading plan you can contact me by email at any time my
email address is David Modell at gmail.com if you like this video if you
found it helpful please give it a thumbs up on youtube and leave comments and
also please subscribe to my youtube channel if you haven’t done so already
so you can receive the latest updates on my financial educational videos thank
you so much for watching I appreciate it and I’ll talk to you again soon

100 thoughts on “Stock candlesticks explained: Learn candle charts in 10 minutes. / Stock chart reading tutorial tips”

  1. The video is very helpful, thank you. Have you ever looked at the trading charts for bitcoin? I would really like to know if you have the tools to be able to predict the volatile market of bitcoin.

  2. Fucking finally! In 3 min he wraps everything! Please listen to everything, but, once you learn what he's trying to say the rest is easy. Thanks dude! Very easy and helpful!

  3. very easy to understand!!!! thank you!! I have a question about your video. what are you using for this explanation? etrade? what brokerage sites would you recommend?

  4. I really friggin loved it!! Seriously, I felt stupid just because based on all videos it seemed like I was missing something….so thanks again Dave!!

  5. Thank you for the reply. I will say that for us newbs, we really appreciate those out there "doing it" and rendering information from a humbler but confident position.

  6. Good video….I made it my goal to master candlestick formations and this is def a boost to get me there!! Good explanations

  7. Thank you! For a beginner like me with a little time to spare study, the way you explained it is very clear….thank you again for my baby steps in reading the charts…

  8. Thanks for the great simple instructions. I learned in 8 min. what has taken me hours of not understanding what was being said by others.

  9. Wow ! Best video I have seen definitely subscribed! Loooove the baby steps! Your amazing at explaining! Thumbs up 👍🏻 about to check out more of your stuff!!! Thank you 🙏

  10. U r the Man. You Literally took what others made so difficult to understand easy. I remember the difference between red and green. Green good. Bottom to top. Red bad. Top to bottom. Wicks is movement. Thanks. Why did it take 20 vids before someone like u to Dummy it down. And i mean that with all respect. Now i get it .thanks. Off to next lesson.

  11. Great video man, this really helped me in learning the candlestick charts. It looked so intimidating before watching your video. Thanks a ton!

  12. A friend asked me about candlesticks, so, I just pointed him to this video. I know my friend will learn a lot from your great videos. I just asked him to watch your videos first & then just ask me questions later. Very clear explanation of candlesticks, David 🙂

  13. Hello David. I would like to hear you explain about stock patterns.
    Do you have any videos on this?
    Thank you in advance.

  14. Hi David…leaving a comment to see if a few friends show up here..and they better..lol. I prefer the red and green. As opposed to red and black..from Bar Chart. I was sooo confused lol. Just kidding 🙂 Great video thank you again David ~

  15. Very well explained David. Not only this one. All your videos are very much useful and informative. Keep it up bro. Love from India

  16. I was giving up on my search. Thought I give you a shot with this clip popping up as my recommended. Half way through I click sub. Finally a clip that's fast and east for a no timer. Thanks much!!

  17. Hi David, thank you so much again for the education you give us. I was wondering what the candlesticks mean when they are hollow or empty instead of the solid Color? Have a. Great afternoon , thanks Rich

  18. Finally, a simple, clear, clean-cut approach. You've explained more in less than 10 minutes than others do in more than 50 minutes! Thanks!

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