This is Japanese Candlesticks for beginners! In this video the most basic details are explained which you must master before you start trading Binary Options. If you can not read and understand a candlestick chart, then you are already in big trouble! In fact you do should not start trading Binary Options before you learn how to use Japanese Candlesticks.
There are two types of Candles, Bearish Candlesticks which mean that the price closed lower than where it opened. The second type is the bullish candlesticks. Bullish candles close higher than where they opened. Bullish candlesticks are often displayed as blue, green, black or any other preferred color. Bearish candlesticks on the other hand, are usually displayed as: read or white. You can pick the colors you wish, just keep in mind which one is bullish and which one means bearish.
Learning price action is the best Binary Options strategy which works in the long run! How you master price action depends on how well you understand Japanese Candlesticks. Learn these basics for now: Candlestick Wick, Candlestick Body, Candlestick opening and end and their volumes.

This time you will learn about Dojis, Pin bars and the Pinocchio Strategy for Binary Options trading.
As always, you must focus on the bigger picture. If you do not understand basic price action, do not just jump into trading candlesticks based on their looks. The candlesticks are merely indicators and if you do not put all the data together and do not have at least 3 confirmations for your trade, you will get burned. Doji candlesticks indicate indecision in the market.
Doji candles look different, the textbook doji candlestick has wicks on both sides and the body is simply a line. But in reality, dojis can have a bigger body and the wick might be bigger on either side. The leggs by which the candlestick wick or the candlestick shadow is meant, can also vary in size. Bigger wicks mean bigger volatility which indicates that there are more buyers and sellers in the market. You should interpret candlesticks on these bigger and more volatile candles because it confirms that there is more price action going on and the indication is more trustworthy. Pin bars are another form of candlesticks. This is when the body of the candle is at the bottom of the candle. It resembles a gravestone candlestick. They indicate a shift in the market, a bearish shift. If the body is instead at the top of the wick, then the pin bar indicates a bullish shift. If the body is flat or next to flat, it resembles a dragonfly candlestick. These types of Japanese candlesticks indicate a bullish shift in the market. Regardless, remember to trade in the direction of the trend. Use extra confirmations like stochastic oscillator, Relative Strength Index or Moving averages. Set up your targets, support and resistance and once again: see the bigger picture!

In this video you will learn about 7 different Bullish Continuation Patterns. These bullish continuation formations are strongest in an uptrend and should not be traded without further confirmation in forms of support and resistance analysis. Make sure you confirm the trend using moving averages or trend lines. The following seven candlestick signals are mentioned in the video:

1. Bullish Mat Hold
It consists of 5 candlesticks. Two bullish and three bearish candlesticks. The uptrend is confirmed when the final and fifth bullish candlestick engulfs the previous candles.
2. Bullish Rising Three Methods
Also consistent of 5 candlesticks, it is very similar to the Mat Hold.
3. Bullish Separating Lines
A two candlestick formation, a bearish one followed by a bullish candlestick that opens near or close to the opening of the bearish candlestick.
4. Bullish Upside Gap Three Methods
A three candlestick formation, two bullish candles followed by a bearish candlestick filling the gap between the first two bull candles.
5. Bullish Side-by-Side White Lines
Three bullish candlesticks. One bull candle is followed by two longer bull candles, opening and closing at the same price - side by side.
6. Bullish Upside Tasuki Gap
Similar to the Upside Gap three methods above, the Tasuki Gap continuation pattern consists of three candlesticks. Unlike the Gap Method, the bearish candlestick is smaller.
7. Bullish Three Line Strike
A four candlestick pattern. Three in a row rising bullish candlesticks are countered with a fourth big bearish candlestick when sellers enter the market to rid of their shares before the bulls further steer the market up.

Remember, these bullish continuation patterns all just indicate that the market could go further up. It is crucial to use further confirmations and apply price action analysis before entering a trade!

Here are 7 bearish candlestick Patterns which show up during a downtrend. So only look for these patterns in a bearish, down going market!

The market will not always give you the textbook version of these candlestick patterns and you absolutely need further confirmations like trendlines, support and resistance lines, indicators and other technical tools and analysis before executing a trade. So you should not simply trade based on a candlestick pattern alone!

The 7 bearish continuation patterns are as follows:

1. Three Falling Three Methods
2. Downside Gap Three Methods
3. Tasuki Gap
4. In Neck Pattern
5. On Neck Pattern
6. Separating Lines
7. Three Line Strike

These are the bearish continuation candlestick Patterns which are explained in this video! Remember to check our Japanese candlestick playlist from the beginning if you are not yet familiar with how candlesticks work. Japanese candlesticks show you the opening and the close of the price. They also show you how much volume there was in terms of volatility. If there are many buyers, you will see a large bullish candlestick. If there are many sellers, you will see a large bearish candlestick. Analyzing candlestick patterns can help you determine the price direction. But there is more to it, the candlesticks wick also tells you about support and resistance. In conclusion, make sure you always have at least 3 confirmations in addition to the candlestick formations and do not jump into a trade unless you do! Not sure how to trade? Check out the other videos on price action trading where it is shown how to draw support and resistance lines based on the data and history from the Japanese candlesticks.

Bullish Reversal Candlestick patterns and formations can be found during a downtrend. When price is falling, in a bearish market, it either falls rapidly or creates lower lows and lower highs.
Sooner or later, the sellers (the ones pushing the price down) will get exhausted. Usually, this happens near a support area and you can also notice that the Oscillator (indicator) signals oversold too. These are two great confirmation signals that a reversal is near.
When the candlesticks approach these support or reversal levels, they will behave in a way that signals that buyers are likely to enter the market. There are many candlestick formations and not all occur that often. Some are also not that reliable but here is a list of 7 candlestick patterns and formations that I have gathered that can appear during a downtrend. When trading Binary Options, regardless of whether you trade short or long term expiries, it is always good to have extra confirmations. These candlestick formations can work as an additional confirmation for the bullish reversal signal, near or at your support line!

1. Bullish Abandoned Baby
2. Bullish Breakaway
3. Bullish Ladder Bottom
4. Bullish Three River Bottom
5. Bullish Gravestone Doji
6. Bullish Engulfing
7. Bullish Concealing Baby Swallow

Remember: the textbook candlestick patterns and looks can be slightly different from the real market candlesticks. To remind you one more time: Find at least 2 or 3 additional confirmations OTHER than the candlestick patterns, before you execute a Binary Options trade.

The following 7 bearish reversal candlestick formations must be searched for in an uptrend. Because we want to see whether the bears are coming back or not. Additional confirmation is always required!

1. The bearish breakaway formation. This pattern can be found in an uptrend. Preferably near a resistance lines at where price has created a high or a if you wish to call it a peak or a top.
The first candle, the white one, indicates how price was rushing towards the target, probably a resistance level. The three following bullish and white candlestick indicate that the volume of bulls are getting lower. So there are less bulls in the market and therefore, they are losing strength.
But it is not until the black candlestick, the fifth one, that you will know that the bears have entered the market. This candlestick opens slightly lower than the short bull candles and closes below them in a way that it closes the gap between the first white candle and the three shorter candlesticks.
So this indicates a bearish reversal. Well, of course just a candle formation is never ever enough reason to enter a trade. So make sure you have several confirmations. That is why you should watch the other videos on price action and trend analysis to learn more in addition to candlestick analysis. Ok let us move on now!

2. Bearish Dark Cloud Cover. This one pretty much speaks for itself. You have the bulls rushing towards resistance, once reaching the bears enter the market with a rather large volume, pushing the price down and closing it bearish, see the black candlestick. Of course, you should be careful cause after such a long bearish candle there might be a small retracement back towards resistance before price eventually falls. So remember your confirmations!

3. Bearish upside gap two crows. In this case, we see price nearing resistance with a bullish candle, the white one in the picture. Then the next candlestick, the black bearish one is opened with a gap. Remember that bulls open low close high and bearish candlestick bodies open high and close low. Which means what? That this candlestick opened with a gap! But then the soon as it went up a little bit indicated by this wick, it was forced down by bears coming in. Once it closed. The bulls once again opened the next candlestick higher up with yet another gap and this time bears closed the price even lower than before. 

4. So, can you guess what happened here? This one is called Bearish three outside down formation by the way. After the bull candlestick, the bearish one opens higher up but falls below the bull candle and is therefore closed bearish followed by another bearish candle closing even lower.

5. Bearish evening doji star. Remember the video about dojis and pin bars? Then you should probably be able to guess this one! Right? You know, the bullish candle comes up near resistance and then you see a candlestick opening and closing at the same price. Hence, forming a doji candlestick. Then, the next candlestick is a bearish one that opened below the doji. Indicating that the bears have won the battle, hence forcing the price down.
By the way, this one is very very similar to bearish abandoned baby formation. The only difference is the gap between the doji and the two other candlesticks. So if there is a gap then we say the doji is the abandoned baby. So if there is no gap then it’s just bearish evening doji.

6. Bearish three inside down pattern. Do no’t get this confused with the one we talked about before, number 4 which was outside down. This one is INSIDE down pattern. Why? Because the black candlesticks open and are INSDE the bull candles body. And then the next one closes below the bullish candlestick. So the first candle actually opens with a gap below the closing price of the bull candle.

7. The last pattern that we also find in an uptrend, indicating a bearish reversal is called:
bearish three black crows! Price is falling from a possible resistance line and stepping down. The next candlesticks open within the body of the previous candlestick but close below it, just like stairs.

These were the 7 bearish reversal candlestick formations in this video. Of course there are mover bearish reversal candlestick patterns but so long as you understand how candlesticks and their wicks work in addition to price action, you should be ok.