The content is a masterclass on trading, focused on the importance of the continuation candlestick pattern. It explains that these patterns often occur when the market is trending strongly upwards or downwards and indicates whether the trend will continue or not. The video presents various types of continuation candlestick patterns, such as flags, pennants, and wedges, and how to identify them on the charts. The presenter emphasizes the importance of using these patterns to make informed trading decisions and suggests using Barbers as a tool to draw charts. The video is sponsored by Barbers.
Yo yo yo what’s up banta fam! Welcome to yet another masterclass in this series. I’m going to be teaching you my secrets, tools, and strategies on how I managed to do it in a short period of time.
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The Continuation Candlestick Pattern
Now in the show, I’m going to be showing you a very important thing called the continuation candlestick pattern. You see them all the time in the show, and these help you guys. They help you understand should I hold on to my trade or should I be exiting?
Understanding Continuation Candlestick Patterns
We’re losing some sort of steam. They give you great massive structure. Now let’s get into it! Remember, the show is sponsored by Barbers, let’s do it!
What Are Continuation Candlestick Patterns?
So, banter fam, what are continuation candlestick patterns, guys? These I show on the show all the time; I show all these flags, I show all these things. Now I want to show you how important these are.
Market Trends and Momentum
Now we know those market trends, right? These usually play out a lot when the market is trending strongly upwards or it’s trending downwards, and that’s in the word they want to indicate that this trend is going to continue. So what usually happens is we have a strong momentum push in either direction, and then we look to break out and continue that actual momentum that we were continuing before.
Now why does this happen, firstly guys? It allows the major the indicators to reset. It allows your RSI to reset, it allows your moving averages to reset. Remember, nothing will always move directly in a straight line. We’re always going to move, we’re going to form some sort of pattern, look to break out and continue the momentum in that way.
Understanding the Importance
Now, remember these are not guaranteed, but this is how you want it to play out. You want it to show you that it’s continuing. Now why is this important, guys? Because if that pattern fails, it gives you then an indication maybe you should start exiting the trade, or I should start being very cautious because it’s not playing out. We may not continue anymore, and it just gives you that little bit of understanding of where we are, or that he’s saying we are playing out. We have broken that, now I can either enter some more, I can add to my bags this position, and then you know where you’re basically looking at.
The Basic Diagram of Continuation Candlestick Patterns
If you look at this basic diagram over here, the main concept is we have a trend, the trend will come into a pattern, we will form some sort of pattern and rule goes the direction that we enter the pattern is the direction we should be exiting the pattern.
Bullish and Bearish Patterns
So we’ll come in, we’ll form the pattern, we’ll break out and then continue the actual trend. Now, if we jump into this main diagram over here, this gives you the basic view of the majority of the ones that we personally use, and I think the most common ones that you’re going to see many times in your training career. You can see we clearly have a bullish and a bearish view of these. You can see they look the same; they’re just in different directions. We’ve got bull flags, we have bull pennants, we have wedges, and we’ve got horizontal flags, as well as well as the bearish ones, the same. They look the same, they’re just working in the opposite sort of direction. Remember, bulls, bears!
Examples of Candlestick Patterns on Charts
If we jump and I’ll show you this now, how they look on the actual charts with candlesticks. Now here is the basic concept of a bullish flag, do you see how we had strong momentum, we then went into our pattern,
and then we broke out and we continued the momentum so the bulls drove this up, we then had the bears slow it down a little bit, we had the RSI’s reset, we then exited the trade beautifully, we broke out and then we continued.
These candlestick patterns are an important tool for traders to use when analyzing trends in the market. They can provide insight into potential continuation or reversal of price momentum, and can also help traders make informed decisions about when to enter or exit trades. By understanding the basics of candlestick patterns and how to identify them on charts, traders can improve their overall trading strategies and increase their chances of success in the market.