Transcription
So if you're someone who's been trading for over a month and you're still not profitable, or you still have problems predicting price, or reading chart patterns, or being able to draw regular support and resistance zones, this video is specifically for you, as it will completely change your life.
So realistically, I feel like candlestick charts are holding a lot of people back, and they're the most used charts by traders. They were taught to a lot of traders, they're taught to all new traders, realistically. But I feel like candlestick charts are not the best things out there.
So in this video, I'm going to show you guys exactly what I think is the best thing, and why I think everyone should stop using candlestick charts because I feel like they lie a lot. So I'm going to tell you guys exactly what is the alternative, the better alternative, in my personal perspective. The thing that has helped me to become as profitable as I am, drastically. I'm talking about as soon as I switched to these charts, trading seemed a lot easier, it's a lot simpler, it's a lot less stressful, the charts look way easier, everything just became easier. I'm not going to lie to you, I'm going to show you guys exactly what it is, how to use it, and how it will change your trading forever.
So let's hop right into this. Before we hop into this, it is the beginning of the month, so I have opened up more spots in my inner circle. If you guys do not know what's included inside of my inner circle, you get access to all of my trades, every single trade I take, you guys can be in the same exact trade. That includes all of my crypto trades. You also get access to the three other profitable coaches that we have. I'm talking about insanely profitable coaches that we have in there. We have a dedicated trading psychologist. I'm live every single morning doing live trading and market breakdowns, answering questions. You get all my courses. I'm going to teach you how to trade exactly how I trade one-on-one. It's just a bunch of things. Inner circle is always completely packed out. I'm sure you guys have seen it before, but more spots have opened up since it is the beginning of the month. So click the link inside the description down below to secure your spot. I'll also leave a link for it inside the comment section down below as well. Click there as fast as possible, get your spot now. Let's get into these freaking candlesticks that's about to change your life.
So these are regular candlesticks. You've seen these your entire trading career, if you've been trading for more than freaking two weeks. These are your bread and butter. Now, keep in mind, I have been using these type of charts for a majority of my trading career. I literally just switched over to the other type of candlesticks probably two years ago, and I'm telling you guys, as soon as I switched over, trading became so easy. You guys have probably seen the difference in the past two years or so in my trading, where I've been able to make drastically way more money, I'm way more confident in my trades, and I don't stress as much when I'm in trades. And there's a reason for that.
So with these candlestick charts, you see this is what you're used to. You have the wicks, you have your bodies, you have your wicks, you have your bodies. All these are different shapes, sizes, all that different type of stuff, right? Now, this is okay, right? This looks decent, this looks pretty decent, right? But it can also look extremely confusing. It can also make you feel a little bit hesitant about your trades. If you're in a trade and you see these little pullbacks, let's say you're in a buy right here, right? And you see a small little pullback of these little white candlesticks, this can really throw you off. This can extremely, um, just deter your psychology and make you think about closing your trade too early, and you would have missed out on the rest of this run to the upside, all because you started seeing some hesitation candlesticks, some candlesticks are the other color, the opposite color from basically what you want to see.
Now, there are these candlesticks that I like to call hi-well, I don't like to call them, that's what they're freaking called, Heikin Ashi candlesticks. These right here, if you come on TradingView, click this drop down right here, and just click Heikin Ashi candlesticks, and you'll see it switches over to these. These are similar to regular candlesticks in the aspect that, um, you still have the same price action as far as you'll see up downs. They're not like these other weird candlesticks like the Renko or whatever the heck this garbage is. Um, you can still see the same price action here, price works out basically the exact same, but it smooths it out. Because basically what Heikin Ashi candlesticks do is they take the average price of where price was during that candlestick, during that time frame of that candlestick. And the reason why that is so beneficial is a bunch of different reasons.
So as you can see, all these candlesticks kind of start right after each other. They start in the middle body of where the previous candlestick was. And the reason that is, is like I said, it's always based off of the average price of where price was throughout that entire candle candlestick. Um, so there's a couple benefits to that, but I want to break down exactly how to read these candlesticks first. Now, what I would suggest you guys doing is to go into your settings right here. As soon as you go on Heikin Ashi, and make sure "Real Prices on Price Scale" is not ticked on. Make sure this is ticked off because that what that would allow you to do is that you'll be able to see two different prices. Let's see if I can see a better example here. You'll be able to see, well, I guess you can see it's not really good examples, but you're able to see two different prices. Right? This first price that has the timer under it is where the body of the candlestick is. But with Heikin Ashi candlesticks, the body isn't where price actually is. That's the average of where price is. But we still want to see exactly where price is during that candlestick. And that number that doesn't have the timer under it is where price actually is. So if you were on regular candlesticks, you'd see the candlestick would be right up here, aligned with this one right here. But let's go back to my Y and W chart. So make sure that setting is clicked on, cuz that will help you out drastically later on. I'll show you guys exactly why.
So as I explained to you, the body is not where price actually is. The body of the candlestick is where price was on average throughout that candlestick. And that's extremely beneficial if you are a breakout trader, or really any type of trader, because what that will stop you from doing is getting faked out. A lot of times people will hop into charts, um, or hop into trades like this. Let's see, let's see, this might be a perfect example here. We see it didn't actually break and close above this. If we go to regular candlesticks, we see price came and broke above it on this candlestick. So a lot of people would have hopped in on this breakout to the upside, stop loss below that candlestick, and targeted somewhere crazy, right? But it would have came down and taken them out the trade. But with Heikin Ashi candlesticks, we would have saw that price never closed outside of this zone here. The average of where price was throughout any of these candlesticks was never above this line. So that would have stopped us from hopping into that trade, causing us to lose that money. So that's one benefit that a lot of, that I see, um, and that I use when it comes to trading, um, these Heikin Ashi candlesticks.
The next one is that it gives you a lot more patience. And the reason is because, like I said, it's the average of the price. We're not just seeing random spikes up that tell us to hop into a trade, or random spikes down that tell us to hop into a trade. With Heikin Ashi, we're seeing the average price. So breaking it down into simpler terms, realistically, the wick of Heikin Ashi candlesticks is where price has went throughout this entire candlestick. So price has went all the way up here during this 10:15 candlestick, but that doesn't mean that's where price actually is. The body is where the average of where price was. So price could have been up here at one point, and then chill down here for a little bit. It could have even closed up here, right? But the average of where price was was at this body right here. And the reason why that's so beneficial and valuable is because it smooths out your candlesticks. You don't see a bunch of up and down candlesticks in this same, um, kind of scenario right here. We see these are all bullish candlesticks. But if you go to regular candlesticks here, we see there was a lot of hesitation. We saw some, some candlestick color changes, we saw some doji candlesticks, we saw multiple doji candlesticks, and these could have altered our opinion on the trade and caused us to close out the trade too early and make us miss out on the trade. So that's benefit number two.
There are so many benefits when it comes to Heikin Ashi, and I'm, I'm honestly shocked that a lot more people don't talk about it. You guys have seen me preaching about it for a very, very long time. I think everybody should at least try out Heikin Ashi candlesticks because they're way easier, um, to see and understand because it's so much smoother. And there are so many better entry candlestick criterias that allow you to have a way more confident entry versus just a random, it could have been one volume spike candlestick to the upside and caused you to get wicked out, similar to that one example that I gave you before with that breakout.
But let's go back here to Heikin Ashi candlesticks. So like I said, it helps you, it helps to smooth out price. And what that does is make you more confident and less stressed out inside of your trading. It makes it so you don't feel like you need to hop into trades all the time because price might be going against you, because you can look at these candlesticks and seeing they're all going in your direction. It also helps you see real pullbacks easier. A real pullback, if we exit this out, a real pullback is this, right? This is a pullback to the downside. We see we came up here, then we had a nice pull back to the upside, or to the downside, then we went back up. This right here is extremely easy to see on Heikin Ashi candlesticks because we had it change direction and going on, are going the opposite direction. So this just shows us a real pullback. And real pullbacks mean that that is a better support zone ultimately than any of the smaller pullbacks we had during this entire run to the upside, the ones that we don't even see realistically on Heikin Ashi candlesticks because Heikin Ashi has smoothed it out for us. So that's another benefit of it. Because like I said, we see real pullbacks. These are real pullbacks right here versus these consolidation periods right here where you could have got extremely confused with it looking at it on regular candlesticks. And even looking at on, looking at these pullbacks on regular candlesticks, it just doesn't stick out or stand out as much as it does on Heikin Ashi candlesticks.
Now, if we go back to Heikin Ashi candlesticks, going back to the point of it just being so much smoother, if you zoom out, you can easily see support and resistance zones like really, really fast compared to on regular candlesticks. Like from here, I can see we have a support zone here, we have a support zone down here. I see we have a huge resistance zone up here. I see we have a, a huge resistance zone up here as well. We could have got multiple sells off the same resistance zone. You can just see all these things much easier because in order for it to actually change color and direction, it needs to have had an average price of rejecting a zone, or average price of actually reversing. So that just makes these zones pop out much easier. So if you're someone who struggles to find good support and resistance zones, try out Heikin Ashi, try out drawing your zones on Heikin Ashi, and you'll be able to see them a lot clearer, you'll be able to see them a lot better and easier, and they'll just stand out to you more because you see whole white candlesticks to the downside, or whatever yours will be, yours probably be red, I just changed the setting on mine. Um, but you'll see all these white candlesticks in a row, and then as soon as you see it flip to those orange candlesticks or bullish candlesticks, you'll know instantly this is a good support zone down here without having to think about it. And it's lined up with this zone right here, the same exact thing. So that's another benefit of it. And like I said, there's so many different benefits when it comes to Heikin Ashi. I always just for everybody to at least try out Heikin Ashi. I think candlestick charts are okay. They're taught, they're, you should know the basics to understand candlestick charts, but once you get to a point, I think you definitely should, everybody should try out Heikin Ashi, um, candlesticks just because, like I said, there are so many benefits to them. It helps you be a lot more patient waiting for actual reversals versus small little pullbacks and things like that.
Now, a lot of people always ask me, what is my entry criteria for these candlesticks? Why, when do I enter into trades? And it depends. There are a couple different entry candlestick criterias when it comes to Heikin Ashi, and I'll break them down for you guys. So the first one that I always look at, and this is probably what I enter on the most, it's a little more risky, but it helps you get a little bit of a better entry, is a doji candlestick. You've probably seen a doji candlestick on regular candlesticks, but on Heikin Ashi, they are just much more, um, believable. They don't, they don't lie as much because you don't see a bunch of doji candlesticks. You'll really only see one at a zone before it's time to reverse. So as soon as I see this doji candlestick, most of the time I'm hopping into a trade if I really like the zone. If I need to be a little more safe, and I'm waiting for a little bit of a stronger rejection, then I'll wait for these flat bottom bullish candlesticks. If I'm looking for buys, or if I'm looking for sells, I'll look for a flat top, um, candlestick with a wick on the bottom. If I'm looking for sells, I'll show you guys an example of that. But this is a perfect example of a buy. I'd enter on either this doji candlestick, which is a wick on the top and the bottom with a small body, or if I need to be a little bit more safe, I'll wait for a candlestick that looks like this, a flat bottom with a wick on the top, and that's if I'm looking for buys. Vice versa, if I'm looking for sells, right? I'd either hop in on this doji candlestick, and I don't really care more so what, what color it is. If I'm looking for a bearish or looking for sale, I'd much rather it be a bearish color candlestick, but if it is a bullish color doji candlestick, I don't really mind. But if I need a little bit of a safer entry and I'm okay being more patient, I can wait for this candlestick right here for a sale, a flat top candlestick with a wick on the bottom.
Now, like I said, you guys have seen a bunch of different strategies that I have for these, but realistically, another key benefit in this is allowing you to hold your trades a lot longer. So instead of you getting psyched out and seeing a bunch of different colors that's going against your direction, or a bunch of different candlesticks that's going against your direction, you'll see a bunch of these because price is smoothed out. You'll be able to have a lot more confidence in holding your trades a lot longer. That's what actually allowed me to turn a $1,000 trade into a $33,000 trade. I did it live, um, I want to say like three months ago or something like that, using this specific kind of strategy of being on Heikin Ashi candlesticks and holding it and feeling confident holding it because Heikin Ashi candles don't lie as much. They don't give you all the extra foolishness, right? They just tell you exactly where price is going. And when price is reversing, it tells you exactly when price is reversing. It doesn't give you all that extra noise in between, um, with the different color candlestick changes and all that. Um, so it allows you to hold your trade a lot longer because I would see this, I see it going to the downside a lot, and I'd be okay holding it a lot longer versus if I was on regular candlesticks and I saw this same exact thing, I probably would have get psyched out and hopped out the trade here, or psyched out and hopped out the trade here, right? And that would have caused me to lose out on the rest of these gains that I could have got, got gotten if I was in a sell.
So realistically, there are a bunch of different benefits when it comes to using Heikin Ashi. And that's why I always suggest for every single person watching this video to try out Heikin Ashi candlesticks and see how, how much it changes your trading, um, for the better. As soon as I switched over to Heikin Ashi candlesticks, I told you guys, trading got much easier, reading the charts got much simpler, holding my trades much longer got much easier. I started making a ridiculous amount of money compared to when I was using regular candlesticks and feeling a lot less stressed when I was trading it. Um, I just think Heikin Ashi candlesticks are absolutely amazing. I think everybody should try them out. I don't know why everybody on YouTube isn't screaming about them, but I will continue to scream about them as I have been doing for the past two years or so. But if you guys got value in this video, I would definitely suggest you guys start backtesting with Heikin Ashi candlesticks, try it out, see how it works for you guys, get used to those candlesticks, and start using it to actually freaking steal from the markets.
But that is the end of the video. If you guys want to get access to an inner circle, get all of my trades, be able to ask me every single question that you could ever want, you'll, um, also be able to get on the live calls every single morning, you get all the coaches' trades, everything like that, hit the link inside the description down below. I'll also leave a link for it inside the comment section down below, and I will see you guys inside the Inner Circle. But once you're getting used to trading these Heikin Ashi, you're going to need to learn how to use them to draw the perfect support and resistance zones, and that's exactly what I teach you in this video right here. So I would highly suggest you watch this video right here. It'll break it down extremely simply so that you can start abusing Heikin Ashi candlesticks and making a ridiculous amount of money. I'll see you guys in this video.