Road To Gloryy Day 1 : How to read a Forex Chart

Summary

The 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

00:00

🚀 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.

05:05

📈 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.

10:09

🕒 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.

15:10

📊 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.

20:14

📚 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.

25:16

🔚 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.

Keywords

💡Forex Trading

Forex Trading, short for foreign exchange trading, is the act of buying and selling currencies in the foreign exchange market. It is a key concept in the video as the entire series is dedicated to teaching beginners how to start with Forex Trading from scratch. The script mentions that Forex Trading is about making money whenever and wherever one wants, emphasizing its flexibility.

💡Beginner

A beginner in the context of the video refers to someone who is new to Forex Trading and has no prior knowledge or experience. The video is specifically aimed at this audience, promising to guide them step by step from zero, highlighting the importance of starting with a solid foundation.

💡TradingView

TradingView is a platform mentioned in the script that is used for analyzing and looking at financial charts. It is presented as the only platform needed for a beginner to start Forex Trading, indicating its comprehensiveness and the convenience it offers for chart analysis.

💡Currency Pair

A currency pair is a financial instrument in Forex Trading that represents the quotation of the relative value of two currencies. In the script, EUR/USD is used as an example of a currency pair, illustrating how the price of one Euro in US Dollars is represented.

💡Candlesticks

Candlesticks, also known as candles, are a graphical representation of price movements in financial markets. They are central to the video's theme as they are the primary tool used to visualize and analyze price data in Forex Trading. The script explains how to interpret the different parts of a candlestick, such as the body and wick.

💡Bearish

Bearish refers to a market sentiment or price movement that is declining or expected to decline. The script uses the term to describe candlesticks that show a drop in price, indicating a potential negative outlook for the currency pair in question.

💡Bullish

Bullish is the opposite of bearish and indicates a market sentiment or price movement that is rising or expected to rise. In the context of the video, bullish candlesticks represent an increase in price, suggesting a positive outlook for the currency pair.

💡Time Frame

A time frame in Forex Trading refers to the duration over which a candlestick represents price data. The script explains how different time frames, such as 1 minute, 3 minutes, or 4 hours, can alter the perspective on price movements, affecting the number of candlesticks visible on the chart.

💡Price Action

Price action is the movement of price in the market, which traders analyze to make trading decisions. The video emphasizes the importance of understanding bullish and bearish price action through the interpretation of candlesticks to predict future market movements.

💡Discord

Discord is a communication platform mentioned in the script as a place where viewers can join for further learning and support. It is suggested as a community resource for beginners to help each other understand Forex Trading concepts, including the basics of reading charts.

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