Road To Gloryy Day 1 : How to read a Forex Chart
Summary
TLDRThe video script from 'Road to Glory' introduces viewers to the basics of Forex trading, emphasizing it's not a get-rich-quick scheme. It highlights the necessity of learning and mastering market strategies and psychology. The tutorial focuses on TradingView as the platform for analysis, explaining currency pairs, and the importance of understanding candlestick charts to interpret price movements over different time frames. The presenter simplifies the concept of bullish and bearish candles, encouraging note-taking and re-watching for clarity, promising a step-by-step guide in the series.
Takeaways
- 🚀 The video is the first in a series on Forex Trading for complete beginners, aiming to teach valuable skills for making money through trading.
- 📈 It emphasizes that Forex Trading is not a get-rich-quick scheme and that it takes time to learn and master the market and strategies.
- 📝 The importance of learning and mastering a working strategy and psychological aspects of trading is highlighted.
- 💻 TradingView is introduced as the platform of choice for analyzing and viewing charts, available as a website or app.
- 🌐 The script mentions various financial markets and instruments available on TradingView, including Forex, cryptocurrencies, indices, and gold.
- 📊 Candlesticks are explained as the primary tool for representing price movements on charts, with red indicating bearish (downward) movement and green indicating bullish (upward) movement.
- ⏱ Timeframes are discussed as a way to view price movements over different periods, from one minute to one day.
- 📉 The anatomy of a candlestick is described, including the body, wick, open, close, high, and low points, and what they signify about price action.
- 📝 The presenter encourages note-taking to remember important concepts and suggests revisiting videos for better understanding.
- 🤝 A Discord community is mentioned for further learning and support among viewers.
- 🔄 The video concludes with a reminder of the simplicity of understanding price action through candlesticks and the importance of practice and community.
Q & A
What is the primary goal of the video?
-The primary goal of the video is to introduce beginners to Forex trading by teaching them how to get started with analyzing the market using the TradingView platform.
What does the creator emphasize about Forex trading in the beginning?
-The creator emphasizes that Forex trading is not a 'get rich quick' scheme, and that in the first three months, beginners will likely make no money as they need to focus on learning the skill, mastering a strategy, and understanding market psychology.
What platform does the creator use for market analysis?
-The creator uses the TradingView platform for market analysis, which allows traders to analyze charts and view price movements across various financial markets.
What does a 'bearish' candle represent?
-A 'bearish' candle represents a downward price movement, indicating that the price closed lower than it opened.
What does a 'bullish' candle represent?
-A 'bullish' candle represents an upward price movement, indicating that the price closed higher than it opened.
How does the creator describe the price displayed on a chart?
-The price displayed on a chart represents the current value of a currency pair, such as EUR/USD. It shows how much of one currency is needed to exchange for another.
What does the creator mean by 'time frames' in chart analysis?
-Time frames refer to the duration each candle on the chart represents. For example, a 3-minute time frame means each candle represents 3 minutes of price movement.
How can a user identify the opening and closing prices on a candle?
-For a bearish candle, the opening price is at the top of the body and the closing price is at the bottom. For a bullish candle, the opening price is at the bottom of the body and the closing price is at the top.
What do the wicks of a candlestick represent?
-The wicks represent the highest and lowest points that the price reached during the time period represented by that candle, but did not close at.
Why are there different types of candlesticks on the chart?
-The candlesticks vary because they represent different price movements over a certain time period, with some showing higher volatility, different opening and closing prices, and different highs and lows.
Outlines
🚀 Introduction to Forex Trading for Beginners
The video script introduces a series on Forex trading for complete beginners, emphasizing that it's a valuable skill to learn for making money independently. It clarifies that quick riches are not expected, especially in the first three months, as mastering the market, a working strategy, and psychological aspects are necessary. The platform 'Trading View' is introduced as the primary tool for analysis, and the script mentions that it's important for viewers to understand what Forex trading is before diving into the 'how-to' part of the series.
📈 Understanding Forex Market Basics and Candlestick Charts
This paragraph delves into the basics of the Forex market, explaining the concept of currency pairs like EUR/USD and the fluctuating nature of their prices. It introduces the concept of candlesticks, which represent different price levels over time, and distinguishes between bearish (red) and bullish (green) candles. The importance of taking notes during the learning process is highlighted, and the script provides a brief explanation of how to read the current price and the significance of time frames in trading.
🕒 Time Frames and Candlestick Durations
The script explains the concept of time frames in trading, illustrating how different time frames—from one minute to one day—can alter the perspective on price movements. It clarifies that the duration of a candlestick is determined by the chosen time frame, affecting how traders perceive market activity. The paragraph also demonstrates how to interpret the current candlestick and its relation to the market's open and close times.
📊 Analyzing Candlestick Patterns and Price Movements
This section provides a deeper understanding of candlestick patterns, explaining the structure of bullish and bearish candles, including the significance of the 'wick' and the 'body.' It describes how the wick indicates the highest and lowest price points within a time frame, while the body represents the opening and closing prices. The explanation includes visual references to help viewers grasp the concept of price action and the direction of market trends.
📚 Reading Candlesticks and Price Action
The script simplifies the process of reading candlestick charts by explaining how to interpret bullish and bearish price actions. It uses examples to show how the opening and closing prices of candlesticks, along with their wicks, can indicate whether the price is moving upwards (bullish) or downwards (bearish). The importance of practice and repetition in understanding these patterns is emphasized, suggesting the use of a Discord chat for further learning and clarification.
🔚 Conclusion and Encouragement for Continued Learning
In the final paragraph, the script wraps up the introductory lesson on Forex trading and candlestick reading. It encourages viewers to continue learning, practice, and use the Discord community for support. Although there was an issue with the recording of an appropriate outro, the message is clear: the basics of reading charts and understanding Forex trading are not overly complex and can be mastered with consistent effort and the right resources.
Mindmap
Keywords
💡Forex Trading
💡Beginner
💡TradingView
💡Currency Pair
💡Candlesticks
💡Bearish
💡Bullish
💡Time Frame
💡Price Action
💡Discord
Highlights
Introduction to Forex Trading as a complete beginner series.
Emphasis on Forex Trading not being a 'get-rich-quick' scheme and the importance of mastering skills, strategy, and psychology.
TradingView is the essential platform needed to analyze financial markets.
Explanation of candlesticks, with red candles representing bearish (downward) movement and green candles representing bullish (upward) movement.
Instruction on how to navigate the TradingView platform and interpret charts and candlesticks.
Detailed breakdown of how to read the current price of currency pairs, such as EUR/USD, on the TradingView platform.
Candlesticks represent the price movement over a specific time frame, with different time frames offering various levels of detail.
Explanation of the significance of candle wicks, which indicate the highest and lowest prices reached during the time frame.
Emphasis on taking notes to better understand and retain the concepts being taught.
Encouragement to rewatch the video and join the Discord community for additional support and learning.
Explanation of how different time frames (e.g., 3-minute, 5-minute, 1-hour) affect the representation of price movements.
Instruction on the difference between bullish and bearish price actions and how they influence trading decisions.
Detailed explanation of the construction of bearish and bullish candlesticks and their components (open, close, highest point, lowest point, wicks).
Encouragement to continue learning and practicing, as understanding charts and candlesticks is fundamental to Forex trading success.
Outro encouraging viewers to stay motivated and keep learning in the 'Road to Glory' series.
Transcripts
yo what is good YouTube Welcome to Road
to Glory day one this is about to be a
whole series on how to get started with
Forex Trading as a complete beginner
from zero from scratch
So you you're about to learn a very
valuable skill to make money whenever
you want from wherever you want it
depends on you now if you want to stick
to it or just look this or just watch
this video and
um just let it be but yeah as I said it
depends on
you
um and also I want to tell you
straightforward this is not a getrich
quick um in your first three months
you're you will probably
make no money from it because you need
to learn the skill first um you need to
Master you need to master the market and
uh a strategy a working strategy and you
need to master psychology as
well um but these
things you'll you learn in uh in these
Series in Road to Glory as well step by
step everything so yeah let's get
started
now as you can see I'm on this uh
website trading view you can use trading
view website weite or app um however you
like SO trading view is the only app
you'll need the only platform you need
to
start um it's
to it's to analyze and look at the
charts there are a lot of different
things you can look up I can search up
any Finance Financial Market
right now I'm on EUR USD it's a currency
pair um by the
way you have to know what Forex Trading
is about because I'm not going to cover
it in this video I'm just getting
straight to the point um on how you
started it but not what it is because
that's um I
think you should know what you're going
to learn first
before before watching a video how to
get started you know so and if you don't
know just do a quick research so yeah I
use I'm using um EUR USD chart right
now and that's my watch list I also have
salana Bitcoin and ethereum so
cryptocurrencies Forex currency pairs
indices gold whatever you can everything
you can find everything on trading
view so
when you open trading View for the first
time you would see a lot
of
candles that's what you call candles
candlesticks you'll see a lot of them
and you'll be confused because you don't
know what they mean and what they show
and yeah but I'm here to show you
so um just to start off with the
complete
Basics as you can see I'm on Euro USD
right now trading view shows you first
of all the current price of this
pair this is the current price of Euro
USD you can see it on here but you can
see it on here as well and what does the
price mean it's nothing too crazy it's
simple it just means
that you get
1.78 us do for €
Euro so
we are on Euro
USD you get this amount of dollars for
one
Euro same for GBP USD I'm not going to
click on it right now because um this
will disappear but same for gbpusd which
is also a currency pairer one of the
biggest Great Britain pound and US
dollar and you can see this number
this is the amount of US Dollars you
will get for one GBP 1. 1265
whatever because it's Euro USD one Euro
equals this amount of USD one
GBP equals this amount of
USD make sense yeah it does make sense
because it's simple
so yeah that's um that's what the whole
candles you'll see is showing but just
different levels of the price because
price is not as you can see price is
moving so you see
70 70 70 68 yeah it's just moving all
the time um except of in at weekends so
markets Forex markets are closed on
weekends so yeah that's the only time
when price doesn't
move but from Monday to
Friday markets are open right now we
have uh Thursday so it's
open um what do the candles
mean this the red candles the red
candlesticks are called bearish
candles the green ones are called
bullish candles
please write it down in your notes I
want you I want you to take a notebook
and or a diary
whatever you have to write this down you
have to write the most important things
I say down not for me but just for you
so you remember the things after
watching the video um but of course some
videos you you'll need to watch again
and
again probably
because it's just I did it as well and I
hear a lot of times that people do it
because you don't you don't understand
it at the first time but as I said I'm
going to keep it
simple so bearish candle bullish
candle the bearish
candle no um candles in general show or
represent price okay candles represent
this just in uh in in like levels so you
can see on the right on the right side
this uh
number
[Music]
um I'm going to show you my chart let me
just show you my
chart don't get confused it's just I
changed the colors but
the gray
one represents um the red candle and the
white one represents the green
candle
so um yeah it looks pretty confusing but
it's not so as you can see price is
going up here and on the right side you
see at what level price is
is on this like on this candle for
example or on this you I can zoom
in so when you zoom in you
realize these are the
candles
and how do you
know
um what the candles show
like what time they show so let's go to
the current
current price okay so that's the current
price for Euro USD as we said here you
can see it here you can see it here as
well
um this is the current candle and as you
see you see the timer 2 minutes
left 2 minutes left
because um 2 minutes left until this
candle
is close and the next candle
comes make sense yeah it makes sense and
how do you
know um about
like
when how long they last how long they
last depends on what time frame you are
on so in the left top
Corner um here you can see it
when you click on this you will see time
frames okay I'm on the 3 minute time
frame right now that
means every every candle
represents 3 minute of
price
so in 1 minute this candle closes then a
new candle comes and the new candle will
show me for 3 minutes what the current
price is doing
cool
cool so if I go on the five
minute it shows me every five minute of
price C do represent it and I can go on
higher time frames as well 1 hour time
frame or
even daily time frame it's a t it's
German for a
day so yeah it looks a bit confusing but
it's
just let's go to today's
candle this is today's
candle the day ends in 5 hours and 36
minutes for
me my time
zone and that's when this candle will
close and a new one
will
open okay
okay
and the the time frames are just to
watch price
differently it's the same price on every
time frame but it's just when you are
when you're on a 4H hour time frame my
throw oh my God sorry if you're on a
4-Hour time frame you will not see
as much as on the 5 minute time frame
because the 5 minute time frame is more
zoomed in because it shows more
candles on the 5 minute time frame
you'll see these candles and on the 50
minute you'll
see three times less
candles on the 30 minute time frame
you'll
see two times less candles than 50
does that make sense on the one minute
time frame you'll see a lot of
candles which represent price during
that time so here in the bottom on the
bottom you see when I when I move my
cursor you see I'm going to 400
p.m. this candle was formed at 400
p.m. and this
is the price as you can see on the right
on the right you can see the price which
it
had at this
time but when I go on the on higher time
frame now like one minute time
frame shows a lot of candles right when
I go on the 3 minute
now it will show me
three times less candles than right now
if I go on a 5 minute it will show me
five times less
candles as I'm seeing right now if that
makes sense you
see here you can see a lot of candles
now I switch to the 5
minute you
see you see the
difference yeah simple right and if it's
not simple as I said join the Discord
we're going to we're going to make that
clear because you are going to learn
this it's not something crazy it's just
that's the that's the complete complete
Basics if you don't understand this it's
just you're slow you're slow as
or I'm just not explaining good
enough but I think it's the first
one so you have the time
frames
and they're just to see what prize does
while that time 45 minute time frame
okay this candle is showing me for the
current 45 minutes in 70 minutes it
opens a new candle but on this on this
time frame I can see every candle
represents 45 minutes of price well so
this candle is showing me what price did
in the last 45 minutes let me just show
you real quick what the candles even
really
show like how you can understand them
which is pretty
easy
so every candle as I said represents
price
it just depends on um what time frame
you look
at but they're they're built the same
always so as I said this is a bearish
candle this is a bullish candle and
bearish candles
open right here at this at this point of
the
candle and close right here why is that
because bearish candle go always down
bear ish means
down even in future when you when you
hear um this this word bearish related
to Forex bearish means something going
down bullish means something going
up open
close let me show you
example as I said the gray ones are the
red ones for me because I changed the
colors
let me zoom in
open
open
close highest point lowest point the
wick let me show you let me show you let
me show
you um
highest
point where price was in that time in
that
candle this is the highest point and
down here this is the lowest
point the wick so this is what you call
the
wick this is what you call the wick
okay
so
candle candle sck candle candle bearish
candle bullish candle wick Wick Wick
Wick it's so
simple so what what does a wick show the
wick is just a sign that price was there
it's like a snail
Trail price was there at some point but
didn't close there
so for a bearish candle it's it opens
here price goes up within that candle up
here but then closes down
here which makes the spot the place
where prize has been but didn't close
there a
wick and the wick down here for the
bearish candle means that
price in that time for that
candle that was lowest price lowest
point where price has been but it didn't
close here it did close
here does that make sense it probably
does make
sense because it's not rocket
science so this is the body of the
candle this is the week this is the week
this is the week this is the body
bearish candle bullish
candle the other way around is on the
for the bullish
candle candle open is at this point
candle closure is at this point because
the candle bullish means going up the
candle opened at let's say let's say
this is a real candle
um in this market the candle opened at
look at look at the right
[Music]
um the price on this is
17620 price opened this candle at this
and
closed at
1.77 right
open
close highest point lowest point lowest
point just means when price opens
here this is the lowest point where
price has been in that
time this is the lowest
point but it didn't close there because
it it went up here it went
it went up
here which didn't
close either it closed
here so this is the candle closure and
this is the highest point it has been
because price did go up to this point
but it didn't close it it closed
here let me show you a bullish example
um
okay let's look
at real quick real quick real quick
bro my bad so let's look at this candle
okay this it was at it was at 7 a.m.
right okay this candle is a bullish
candle represents a green bullish candle
as I said
and the white candles for me are the
green ones I changed the
color this point is where the candle
opened this point is where the candle
closed I'm sorry I just messed up the
drawing this this this is this
area this point the wick is the lowest
point where it has been
this point is the highest point where it
has been in that
time I think you
guys like I think it's
understandable and yeah this is how you
understand candles the candlesticks and
maybe you're wondering why are the Wicks
so
different
from from this because this is just
a rough
example
actually in real on the real
chart price doesn't make like perfect
candlesticks all the time with same wig
sizes on the both
sides sometimes it looks like this
sometime a candle was very big because
you know it's it's just it depends on
the price
and on the Euro USD
price this is at 8:45 a.m. this candle
opened at here it's a it's a bearish
candle you can see the wick shows that
price went to this point this is the
highest
point but opened here and yeah this is
the highest point closed here and the
wick shows is the lowest point where it
has been so yeah it can be every candle
will be different
because
they show different times and different
price
levels but yeah that's just that's the
that's the whole complete Basics how to
read a chart how to read
candlesticks because reading a chart is
not much different and much um harder
it's just
now you know what these candles mean
they just they just represent the
price
and let's
say price went up here up here up here
up here down up down down down down up
up up up up up up down a bit up down
up
this is bullish price action because the
price is going
up this right
here so you got to you got to go up if
it if this is a bullish candle I got to
go up with it this is a bearish candle I
got to go down when you mark it out
right like
this like
this
this this is a move down is a long move
down right this is bearish price price
action because price is moving bearish
price is moving
downwards this is bullish because price
is moving
upwards that's that's all is that's all
it is it's isn't it
simple it's very simple you just maybe
it seems
complicated
but trust me when you watch this video
over and over again and use the free
Discord chat
to help each other then just believe me
that you're going to learn it and it
will be
easy um and this is just how to read the
chart okay guys I didn't manage to get a
appropriate outro because the recording
messed up but I was done anyways so yeah
this is the little outro see you guys on
next video day two keep grinding stay
tuned see you
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