The Ultimate Candlestick Patterns Trading Course (For Beginners)

Today you're going to learn three things that will completely transform how you trade candlesticks. First, you'll learn the most powerful candlestick patterns, the ones that actually work, and you'll learn why most of the patterns you've been taught are just noise. Second, you'll discover multi-candlestick patterns, how individual candles combine to create some of the highest probability setups that you'll ever see. And third, most importantly, you'll learn how to put it all together into a consistent, profitable strategy. Because what's the point of learning candlestick patterns if you don't know how to actually implement them to make money?

When I first started out trading, I got so frustrated because there were so many bits and pieces of information scattered all over the place. But nothing ever told me how to put it all together into a consistent method or approach to actually make money, which is exactly what I'm going to give you today. But first, you need to understand what candlesticks really are telling you. Because most people get this completely wrong and think that they're just patterns you need to memorize.

Before we dive into what candlesticks are really telling you, we need to make sure that you understand exactly what you're looking at when you see a candlestick chart. Because if you want to read the market stories, then you need to understand the language first. So let's start with the most basic question. What exactly is a candlestick? Well, a candlestick is simply a visual representation of price movement over a specific period of time. It's showing you what happened to the price during that time period, where it started, where it ended, and everything that happened in between.

Now, every single candlestick gives you four crucial pieces of information. And these four pieces tell you everything that you need to know about what happened during that time period. First, you have the open. This is the very first price that was traded when that time period began. Think of this as the starting line where buyers and sellers agreed to begin their battle for that period. Second, you have the high. This is the highest price that was reached at any point during the entire time period. This shows you the maximum level that the winning side was able to push price before meeting resistance. Third, you have the low. This is the lowest price that was reached during that period. And this shows you how far the other side was able to push the price down before being stopped. And fourth, you have the close. This is the very last price that was traded when that time period ended. And this is crucial because it tells you who actually controlled the price when the period finished.

Now, here is how this information gets displayed visually on your chart. The thick rectangular part in the middle, that's called the body of the candlestick. This body shows you the relationship between the open and the close. If the close is lower than the open, meaning that price ended lower than where it started, you get what's called a bearish candle. This is typically colored red or black and it tells you that the sellers were in control during that period. They managed to push price lower than where it began. If the close is higher than the open, meaning the price ended higher than where it started, you get what's called a bullish candle. This is typically colored green or white, and it tells you that buyers were in control during that period. They managed to push the price higher than where it began.

The thin lines extending above and below the body, those are called wicks. These are incredibly important because they show you the rejected prices. The upper wick shows you how high price went above the body during that period. And if there is a long upper wick, it means someone tried to push the price much higher, but they got rejected and the price came back down. And the lower wick shows you how low the price went below the body during that period. And if there's a long lower wick, it means someone tried to push the price lower, but they got rejected and price came back up. And these wicks are crucial because they show you where one side tried to take control but failed.

Now, let's talk about time frames because this is where a lot of new traders get confused. Each candlestick represents a specific period of time depending on what time frame you're looking at. If you're looking at a one minute chart, each candlestick shows you what happened over one minute. The open is the first price traded in that minute. The close is the last price traded in that minute. And the high and low are the highest and lowest prices reached during that minute. If you're looking at a 5-minute chart, each candlestick shows you what happened over 5 minutes. If you're looking at a daily chart, each candlestick shows you what happened over one full trading day. The time frame that you choose depends on your trading style and what you're trying to analyze. Day traders might look at a 1 or five minute chart, while swing traders might look at hourly or daily charts, and long-term investors might look at weekly or monthly charts.

But here's what's important to understand. The psychology between each candlestick remains exactly the same regardless of your time frame. Whether you're looking at a one minute candle or a daily candle, it's still showing you the same thing. the battle between buyers and sellers during that specific period. A bullish candle on a one minute chart tells you that buyers won that one minute battle. A bullish candle on a daily chart tells you that buyers won the entire day battle. The time frame is different, but the story being told remains the same.

And once you understand this basic structure, the open, high, low, close, the body, the wicks, and how time frames work, you can start reading the real stories that these candlesticks are telling you. Because every candlestick, no matter what time frame you're looking at, is showing you the result of a battle between buyers and sellers. And understanding who won that battle and how they won it is the key to reading market psychology. And that is exactly what we're going to cover next. What your candlesticks are really telling you about who is in control of the market.

Now that you understand the basic structure of candlesticks, let's talk about what they're really telling you. Because this is where most traders get it completely wrong, and it's exactly why they struggle to put everything together into one consistent strategy. Now, here is what most traders do. They learn about candlestick patterns, but nobody ever teaches them the psychology behind why these patterns work. So, they end up with a bunch of scattered information. They know what an engulfing pattern looks like. They know what a hammer pattern looks like, but they have no idea how to put it all together into one simple approach to make consistent money in the market. Sound familiar? Yeah. That's because the way that most people teach candlesticks is completely backwards. They give you pattern after pattern after pattern, but they never explain the foundation. What candlesticks are actually communicating to you about market psychology.

And here's the thing, simply having a pattern without understanding how to actually use it does not help you find consistent winning trades. What you need is to understand what's really happening behind every single candlestick. Because once you understand that, everything else, the single patterns, the multi-candlestick patterns, and how to put them all together into one profitable strategy becomes incredibly simple. Every candlestick is showing you the results of a battle between buyers and sellers. But it's not just showing you who won, it's showing you how they won and what that means for what's likely to happen next.

Let me give you some specific examples. When you see a candlestick that opens at the low and closes at the high with almost no wicks, what's that telling you? That buyers took control immediately and never let go. There was no resistance. That's not just bullish. That is showing you that there is serious buying pressure behind the scenes. But when you see a candlestick that opens high and then shoots even higher, but then closes near the low with a massive upper wick, what's happening? Well, the buyers tried to push higher, but they got absolutely crushed. This shows that there's hidden selling pressure, institutional money, resistance levels, something that retail traders can't see, something that's much stronger than the buying pressure that pushed the candle up in the first place. And when you see a candlestick with a small body, but huge wicks on both sides, what's that showing you? Both sides are fighting hard, but neither side can gain control. The market is in a state of indecision and it's probably going to break violently in one direction soon enough.

And this is what separates profitable traders from everyone else. They're not just memorizing shapes. They're reading the psychology behind every single move. And here's why this foundation is so crucial. Once you understand what individual candlesticks are telling you about the market psychology, you can start to see how they combine into more powerful patterns. When multiple candlesticks start telling the same story together, that's when you can get the kind of setups that take you from unprofitable to a profitable trader. But it gets even better. Once you understand both the individual psychology and how candlesticks combine, you'll see how everything fits together into one complete profitable strategy. And by the end of this video, you're not just going to know candlestick patterns. You're going to know exactly how to put them together into a consistent method for finding winning trades in any market condition. But first, you need this foundation. You need to understand that every candlestick is giving you information about who's in control and what's likely to happen next. Because when you can read that information correctly, when you understand the psychology behind the price action, you have a massive advantage over traders who are just memorizing patterns. And that is exactly what we're going to cover next. The specific single candlestick patterns that give you the clearest information about market psychology and more importantly, how to use that information to find high probability trades.

And now that you understand what candlesticks are really telling you about the battle between buyers and sellers, let's dive into the specific patterns that you actually need to know. Here's what most candlestick courses get wrong. They teach you dozens of different pattern names. Everything from hammers to shooting stars and dojis. There are even candles called marubozu. And then we have spinning tops and inverted hammers. And somehow you are expected to memorize what every single one means. But when it comes down to it, every single candlestick pattern falls into just three categories. And here's the best part. All the patterns in each category work basically the same way. All power candles are used the same way. All reversal candles are used the same way. All indecision candles are used the same way. And once you understand these three categories, you'll never need to memorize individual pattern names again.

Power candles show you when one side completely dominated the battle. The patterns in this category are marubozu candles, which are large body candles with no wicks, long body candles, which are long bodies with very small wicks, and closing price candles, which are candles that close at or near their extreme. What makes all power candles the same is what they're showing you. One side took control from the beginning and never let go. When you see a big green marubozu candle, the buyers opened and immediately took charge and closed at the high without any meaningful resistance from sellers. When you see a big red marubozu candle, sellers did the exact same thing but in reverse. But here is where power candles become incredibly powerful. It's all about the context. Imagine the market has been trending upwards for several days. It pulls back slightly and then forms a massive green power candle that breaks above the previous high. That power candle is telling you that the uptrend is likely to continue with serious momentum. Picture the market stuck in a range for weeks, bouncing between support and resistance. And then suddenly a huge red power candle breaks below the support level. Well, that power candle is telling you that the market just flipped that support into resistance and is likely to continue lower. Let's say you see a reversal candle at a key support level, followed immediately by a large green power candle. Well, that power candle is confirming the reversal. The buyers didn't just defend the level, they're fully taking control. And the key with all power candles is they show you strength and momentum. Whether it's a marubozu or a long body candle, they all tell you the same story. One side is in complete control. But there are key nuances about when to enter these power candle setups and where to place your stops and targets, which we'll cover when we get to putting everything together into a complete strategy later in this video. Just remember whenever you start seeing multiple power candles together, that is whenever you get the multi-candlestick patterns that can show you exactly when huge moves are beginning.

Now, let's take a look at reversal candles. Reversal candles show you when one side tried to push in their direction but got completely shut down. Now, let's talk about reversal candles. Reversal candles show you when one side tried to push price in their direction but they got completely shut down. The patterns in this category are hammer candles, which are candles with long lower wicks closing near the high, shooting star candles with long upper wicks closing near the low, and inverted hammer candles. These candles have long upper wicks and occur at the bottom of moves. Now, what makes all reversal candles the same is the story that they're telling. One side made a big push, but the other side fought back and won. But reversal candles are all about context and where they appear. Imagine the market has been falling for days and it finally hits a major support level that's held multiple times before. Right at that support, you see a hammer candle form. Well, that hammer is showing you that the sellers tried to break the support, but the buyers were waiting and pushed back hard. This confirms that the support held. Now, picture a market that's been rallying for weeks and approaching a key resistance level where it's been rejected before. Right at that resistance, a shooting star forms. That shooting star is telling you that the buyers tried to break through, but the sellers were positioned and shut down the move. That you're watching the market in a strong uptrend, but it's starting to show signs of exhaustion after a big move. Then you see a shooting star form after the price reaches new highs. Well, that reversal candle is telling you that the uptrend might be running out of steam.

Now, here is what all reversal candles are really showing you. There are hidden forces in the market that one side didn't expect. Big money that was defending levels, profit taking, or simply exhaustion from the previous move. But the timing of your entry on reversal candles can make the difference between a winning trade and a losing trade. I'll show you exactly how to time these setups when we cover the complete strategy. And this rejection psychology becomes incredibly important. When you see it combined with multi-candlestick patterns, this can show you exactly when these reversals are likely to lead to bigger moves.

Now, let's take a look at indecision candles. Indecision candles show you when neither side could gain control, which often means that a big move is coming soon. The three patterns in this category are doji candles where the open and close basically are right at the same price, spinning top candles, which are very similar. They just have larger wicks on both sides, and what I like to call small body candles, which are very small bodies regardless of the size of the wicks. Now, what makes all indecision candles the same is what they're showing you. Neither side could win the battle decisively, but indecision candles are incredibly powerful when you understand the context. Imagine the market has been consolidating in a tight range for weeks. Volume is drying up and then you start seeing multiple doji candles forming. Those indecision candles are telling you the market is coiled up like a spring. And when it finally breaks out of that range, the move is likely going to be explosive. Now picture the market in a strong downtrend that finally reaches a support level. And right at that support, a doji forms. That indecision candle is showing you that the market is at a critical decision point. It's going to either break that support decisively or bounce hard off of it. Now, say you're watching the markets after a massive rally and now it's approaching a key resistance level. Instead of a clean break or a rejection, you see spinning tops forming. Well, those indecision candles are showing you that neither side has enough conviction yet. But when one side finally takes control, the move will be significant.

And here's what most traders get wrong about indecision candles. They think indecision just means to stay away. That's completely wrong because indecision candles are showing you that the market is building up energy for an explosive move. But knowing which direction that explosive move will go requires an understanding of market context and confirmation signals. And this indecision psychology becomes incredibly valuable when you see it resolved by the multi-candlestick patterns that can show you exactly which direction that explosive move is going to go.

Now, here is why this three category approach is so powerful. Instead of trying to remember what a gravestone doji means versus a dragonfly doji, you just need to know that they're both indecision candles, and they work the same way. Instead of trying to remember the difference between a hammer and an inverted hammer, you just need to know that they're both reversal candles, showing rejection. All power candles show domination and momentum. All reversal candles show rejection and hidden forces at play. All indecision candles show preparation for big moves. But the real power comes from understanding how context changes everything. A power candle in a trend means continuation. But a power candle at a key level means a potential flip. A reversal candle at support means rejection. An indecision candle at resistance means a big decision is coming. And when these individual patterns start combining together into multi-candlestick formations, that's when you get the context and confirmation that can turn good setups into profitable trading over the long term. Because ultimately, that's what this entire course is building towards. Taking this foundation of understanding the three types of candlestick psychology, combining it with multi-candlestick patterns, and showing you how to put it together into a complete trading system. That way you can find consistent winning trades. And that's exactly what we're going to cover next. How multiple candlesticks work together to tell bigger stories than any individual candlestick ever could.

But first, now that you understand the three types of single candlestick patterns and how they work in different contexts, I need to ask you a question that might make you feel uncomfortable. How many trading concepts have you learned that you completely understood in theory, but when you got to the real markets, you froze? And I remember way back whenever I was learning candlestick patterns, I had notebooks full of morning stars, evening stars, three white soldiers, piercing lines. I could draw every single one of these from memory. I studied them religiously, took detailed notes. I mean, I even had made flashcards. But whenever I sat down in front of live charts with real money on the line, I froze. I'd see what looked like a morning star, but then I'd second guess myself. Is this really a morning star or is it something else? What if I'm wrong? And I would spend so much time trying to match what I was seeing to the patterns in my notebook that by the time that I made a decision, the opportunity was gone. And here is what I realized was happening. Most candlestick education teaches you to memorize dozens of separate patterns, but they never teach you how to think about them in a way that actually works in real-time trading. And they give you more information, but really what you need is a simpler way to process that information under pressure. Because here's the truth, and this might surprise you. The most successful traders I know don't memorize dozens of candlestick patterns. They understand one simple principle that makes everything else unnecessary.

Now, let's get into multi-candlesticks. But first, I want to be clear. They're not separate patterns that you need to memorize. They're just combinations of the single candlestick patterns that you already have learned, but they just tell bigger stories. Think about it this way. When you learn to read, you didn't memorize every possible word combination. You learned letters, then how letters combine into words, then how words combine into sentences that tell stories. And candlesticks work exactly the same way. And once you understand this principle, once you stop trying to memorize pattern names and start reading the stories that combinations of candles are telling you, something incredible happens. You develop the ability to read any multi-candlestick formation in real time, even ones that you've never seen before. And that's exactly what we're going to cover right now. how to take the foundation that you already have and use it to read multi-candlestick patterns like a pro without memorizing a single pattern name.

And this is why multi-candlestick patterns are incredibly powerful and why understanding this principle changes everything. When you see multiple single patterns working together, they're not just showing you what happened. They're telling you a complete story about the battle between buyers and sellers with a beginning, middle, and an end just like any other story. But here is what most traders miss. The same combination of candles can tell completely different stories depending on where it happens in the market. Let me show you exactly what I mean with engulfing patterns. An engulfing pattern is just a small candle followed by a large power candle that completely swallows it. But what story is it telling you? Imagine the market has been in a strong uptrend for days, making higher highs consistently, and then it pulls back slightly with a small red candle. Nothing dramatic, just a minor pullback that has sellers getting excited. The next day, a massive green candle forms that completely engulfs that red candle and pushes to new highs. What story is that telling you? Well, it tells you that sellers tried to take control during the pullback, but the buyers were so strong that they didn't just reject the selling, they overwhelmed it completely and pushed price to new highs. And that's what we call a continuation story. The trend is not only intact, but it's accelerating. Now, picture the exact same engulfing pattern, but this time it happens at a major resistance level that's been rejected multiple times before. A small green candle pushes into that resistance, showing buyers trying to break through. Then, a massive red candle forms that completely engulfs the green candle and drives price back down. Same pattern, but completely different story. This time it's telling you the resistance held, the buyers got crushed, and the sellers are taking control. This is what we call a reversal story. And here is why this approach is so powerful. Instead of trying to remember that a bullish engulfing means buy or that a bearish engulfing means sell, you're actually reading the story of what happened and what it means in that specific context.

Now, here's where things get really powerful, and this is something that most courses never teach you properly. Now there is one element that can take any candlestick pattern and amplify its power dramatically. Fair value gaps. But what exactly is a fair value gap and why does it matter so much? Now simply put a fair value gap is a three candle pattern where there is empty space between the first candle and the third candle. This is created by an expansive middle candle. But I want you to think about what this means on a market psychology level. Because when you see a fair value gap, you're seeing evidence that institutional money, the big players with serious capital, are so convinced about the direction they want the market to go that they're willing to pay any price in order to get a position. And that is why fair value gaps are the ultimate amplifier for any pattern you see. Let me show you exactly how this works with some examples.

Imagine you see a reversal candle forming at a major support level that's held multiple times before. That's already a good setup. It's showing you that the sellers tried to break the support, but the buyers defended it. But then the next candle leaves a fair value gap. And what does this tell you? Well, it tells you that the reversal isn't just working. It's working with such force that buyers are willing to gap the price higher rather than to wait for better prices. That's not just a reversal anymore. That is an institutional reversal with serious momentum behind it. Now, I want you to picture three power candles forming in a sequence during an uptrend. That's already showing you strong continuation momentum. But if each of those power candles creates fair value gaps as it moves higher, now you're seeing something completely different. You're seeing institutional momentum. Big money is so eager to buy that they're creating gaps with each move higher. That's not just trend continuation, that is trend acceleration. Say you see an engulfing pattern at a resistance level. The small green candle gets completely overwhelmed by a massive red candle. That's showing you a reversal. But if that red candle creates a fair value gap to the downside, you're not just seeing a reversal, you're seeing institutional rejection of that resistance level. And here is why fair value gaps are so important. They show you when smart money is participating. And when the smart money is on your side, your probability of success goes up dramatically.

Let me show you some of the most powerful combinations you'll see in a live market and how to read them using the principles you now understand. A three bar high happens when you see three consecutive candles where the middle candle has the highest high. A three bar low is when the middle candle has the lowest low. But here's what's really happening when you see these formations. The first candle shows one side making a move. The second candle shows them pushing even harder to an extreme. They're really trying to break through or break down. And the third candle shows the other side fighting back and rejecting that extreme completely. It's a complete rejection story playing out over three candles. Now imagine the market has been rallying strongly and approaches a major resistance level that's been rejected before. The first candle pushes into that resistance and the second candle pushes even higher breaking above the resistance and getting buyers excited. But then the third candle completely reverses closing back below the resistance and forming a three bar high. Now what story is that telling you? The buyers tried to break the resistance and they even succeeded temporarily, but the sellers were waiting and rejected the breakout completely. But if that rejection comes with a fair value gap to the downside, the smart money isn't just defending the resistance, they're aggressively selling it. Now, picture the same thing happening at a major support level, but in reverse. The market falls, breaks the support temporarily, but then gets completely rejected with a three bar low. If that rejection creates a fair value gap to the upside, you're seeing institutional support with serious buying pressure.

When you see multiple power candles form in the same direction, you're seeing a momentum story unfold. Three white soldiers, meaning three consecutive green power candles, is just momentum building to the upside. Three black crows, which is three consecutive red power candles, is just momentum building to the downside. But context changes the story completely. Now, imagine you are seeing three white soldiers breaking out of a consolidation area that's been containing the market for weeks. That's not just momentum, that's breakout momentum. The market has made its decision and is moving with force. Now, picture three white soldiers forming in an existing uptrend after a small pullback. That is what we call trend acceleration. The pullback is over and the trend is resuming with serious strength. And say you see three white soldiers forming right after a major reversal signal at a key support level. Well, that is a reversal confirmation with momentum. The reversal isn't just working, it's likely to explode. And add fair value gaps to any of these sequences and you're seeing institutional momentum that's likely to continue much further than most traders expect.

Remember, the most reliable reversals happen when you see a reversal signal followed by an immediate confirmation. A reversal candle at support followed by a power candle is showing you the reversal is working and gaining momentum. And vice versa. A reversal candle at resistance followed by a power candle to the downside is showing you the rejection is confirmed and it's likely to explode. But here's what makes these setups incredibly powerful. When you add a fair value gap to that confirmation candle, you're now seeing extra confirmation of the reversal. Imagine a reversal candle forms at a major support level showing you that sellers got rejected and the next candle is a massive green power candle that gaps up creating a fair value gap. What story is that telling you? Well, it tells you that the support didn't just hold. It held with such force that buyers are gapping the price higher. That's not just a reversal. That's an institutional reversal with serious momentum behind it.

And here is why this approach transforms your ability to read candlestick patterns in real time. Now you're not just trying to match what you're seeing to memorized pattern names. You're reading the story that's being told. A small candle followed by a large opposing candle just means that one side got overwhelmed. Context tells you who got overwhelmed and what that means. Three power candles in a row just means momentum is building. Context tells you what kind of momentum and where it's likely to go. Reversal candles followed by a power candle means that a change of control is confirmed. And fair value gaps make it even more powerful. Now you're reading the market like a story. Understanding the psychology behind every move and making decisions based on what's actually happening rather than what a pattern name supposedly means. And when you start seeing these combinations at key levels, that is when you get the kind of setups that can easily turn you into a profitable trader. But knowing exactly when to actually enter trades and where to place your stops and where to exit, well, that takes a complete trading system, which is exactly what we're going over next.

Because ultimately, that's what this entire course has been building towards. Taking the foundation of understanding single candlestick psychology, seeing how they combine into powerful multi-candlestick stories and showing you exactly how to put it all together into a systematic approach for finding consistent winning trades. Now, here is where everything that we've covered comes together into something that you can actually make money trading. Because up to this point, you understand what candlesticks are really telling you about the battle between buyers and sellers. You know the three types of single candlestick patterns and how they work in different contexts. You understand how multi-candlestick patterns combine to tell bigger stories. And you know how fair value gaps amplify everything. But here's what I realized after years of struggling as a trader. And this might surprise you. Having all this knowledge doesn't automatically mean that you're going to be able to make money as a trader. I used to know every single pattern by heart. I could spot a three bar pattern from across the room. I understood the psychology behind every formation, but I was still losing money consistently. And that is because there's a massive gap between understanding patterns and knowing exactly when and how to trade them. What you need is a clear and simple system that takes all of this knowledge and turns it into a mechanical approach for finding winning trades. And that's exactly what I'm going to give you right now. two complete strategies that put everything together.

But before I show you these strategies, you need to understand what separates a good trade from a bad trade. Most traders think that a good trade is just about finding the right pattern. They see a hammer, then buy. They see a shooting star, they sell. But that's not how professional traders operate. First, you need to trade from the right levels, not random levels, but specific levels where institutional money has made decisions before. And second, you need the right confirmations. Not just one signal, but multiple signals all telling you the same story. And without these two elements, you're just gambling with fancy names for your bets. And that's exactly what these two strategies give you. Clear levels to trade from and specific confirmations to wait for.

The first strategy is for when the market wants to continue moving in one direction. And it's built around one simple concept that eliminates all the confusion from your trading. Every single trading day at exactly 9:30 a.m. Eastern time, one candle prints on the 5-minute chart that gives you everything you need for the entire session. And this works for any market, whether it's stocks, futures, crypto, or forex. Now, this 5-minute candle creates what I call the battlefield. A clear zone with defined boundaries where all the day's action will take place. And the high and the low of this candle become your complete trading road map for the day. These two levels, that is it. No complicated analysis, no drawing lines all over your chart, just two clear, objective levels that appear at the exact same time every single day.

But here is where most traders mess this up. They see the market approach one of these levels and immediately jump in. That is a mistake because reaching the level isn't enough. You need to see explosive direction. An explosive direction has a very specific signature. Once the market reaches the high or the low, you're going to switch to the one minute chart and wait for a fair value gap. And remember what I taught you about fair value gaps. There are three candles moving with such violent force that they leave a gap between the wicks of the first and third candle. But here is the key detail. One of those three candles must close below the low or above the high of the 5-minute battlefield candle. And why is this so important? Well, because it shows you the breakout is real. It's not just a fake move or a stop hunt. Sellers are taking control in this example, pushing the market beyond the established range. Now, the reason why we selected this 5-minute candle is because this first 5-minute candle has more volume than any other 5-minute candle in the entire trading day. So, if we see the market pushing under the low with force, we know that sellers are in control. And when you see this pattern, you're seeing exactly who is winning the battle. But you do not enter immediately. Remember what I taught you about market psychology. After any explosive move, the market almost always pulls back to test the level. This is where amateurs panic and professionals get excited knowing that a great opportunity is on the way. Because this pullback doesn't mean that the move is a failure. It's actually a gift. It's the market giving you a second chance at a much better entry. You wait for the market to retrace back into the fair value gap, but you don't just jump in when price touches the level. This is where those engulfing patterns that you learned earlier become critical because you want to wait for an engulfing pattern at your fair value gap. Now, remember what engulfing patterns show you, complete takeover by one side, whether that's buyers or sellers. And when you see that engulfing candle at your fair value gap, the market is saying, "I've tested this level. I've found support or resistance, and now I'm ready to explode in the intended direction," and that is your entry signal. Your stop loss goes just beyond the candle that got engulfed. Your target is a fixed 3:1 risk-to-reward ratio. This means that the target is three times the distance from your entry as your stop. Now, here is the beautiful math behind a 3:1 risk-to-reward. You only need to be right 25% of the time to be profitable. But this strategy is far beyond that. As you can see here, after being tested, it had a 70% win rate over an entire month's worth of trading.

Now, let's take a look at the second strategy. This is for when the market shows you that it wants to reverse. And this is built on those multi-candlestick reversal patterns that I taught you earlier. But here is what most traders don't understand about reversals. They think every single rejection candle is a reversal signal. They see one inverted hammer at some random level and think it's time to sell. But that's just not how professional traders operate. Professional traders know that the most reliable reversals happen at specific levels where institutional money has made decisions before, not random levels, but specific and significant levels. Now you may be wondering which levels and that is exactly what I'm about to give you. And in order to find these levels you need to understand what trading sessions are and how they create these key levels. You see markets are active around the clock throughout different trading sessions. Even stocks have after hours and pre-market trading that happens outside the regular hours. The three main sessions are Asia session, which goes from 6:00 p.m. the previous day until midnight Eastern time. So, if you are looking at the markets on a Tuesday, and you wanted to know the Asia session, it would be Monday night 6:00 p.m. to 12:00 a.m. And this is all in Eastern time or New York time. And then we have London session which goes from midnight until 6:00 a.m. Eastern time and New York session which is from 9:30 a.m. until 4:00 p.m. Eastern time. And guys, I understand that you may have learned these trading sessions elsewhere using different times. But for this strategy, these are the times you'll be using to find our key levels. You need to understand that each session creates its own high and low points. These are called session highs and session lows. I want you to think of these as the price levels where the most intense buying and the most intense selling happened during each session. Think of these as the price levels where the most intense buying and most intense selling happened during each major trading period around the world. For this strategy, we'll be trading during the New York session from 9:30 a.m. Eastern until 4:00 p.m. Eastern. So, we're going to use the previous Asia and London session highs and lows as our key reversal levels. And this works for any market, whether it's futures, stocks, forex, or crypto. But if you're trading stocks, you will just use the pre-market and after hours high and low. And the reason these levels are important is just because we are only trading during the New York session doesn't mean that there aren't large institutions and big market participants trading around the clock.

Now that you understand trading sessions and how to find their highs and lows, here are the only levels you should be watching for reversal plays. We have our previous day's high and lows, Asia session highs and lows, and last but not least, our London session highs and lows. Now, the first step of this strategy is waiting for the market to approach one of these levels. Now, at first it will almost always look like it's going to break through and everyone else is expecting a breakout. But then the market hits into the level, not just approaches it, but actually hits into it and fails to get meaningful momentum beyond it. And this is where everything that you've learned about single and multi-candlestick patterns comes together in the most powerful way possible. At these key levels, you start looking for the rejection patterns we taught you earlier. For example, we have a hammer here showing that sellers got rejected. And this is where everything that you learned about single and multi-candlestick patterns comes together in the most powerful way possible. At these key levels, you start looking for the rejection patterns that we taught you earlier. Whether it's hammers or other reversal candles showing that the sellers got rejected or if it's multi-candlestick patterns like engulfings showing that buyers took complete control of sellers at this key level of support. But here is the crucial part. You do not just trade on the first rejection. Remember what we taught you about multi-candlestick patterns. Multiple candlesticks telling the same story create much more powerful signals. So, you want to see the same rejection story told multiple times at the same level. It could either be two hammers in a row or multiple engulfing patterns showing repeated rejection and buyers taking strong control at a support level. Just remember, when you see multiple rejection stories at a significant swing level, that's the market's way of saying this level is not breaking because as we can see, sellers tried their best to push through, but buyers stepped in and took control. Now the important part is that this is happening at one of the key levels that I referred earlier. We want to look at these levels from the perspective that these levels are areas where we should see the market's true intention. If the market's truly bearish, we should see the market blast through lows. But if buyers step in, this could mean that the market is not bearish and this could present a reversal trade opportunity. Because whenever we have a false breakout, all the traders who are trying to push the market down become trapped and these traders who are trying to sell the market will then exit the market, which is resulting in a buy. So this will act as rocket fuel to push the market upwards.

Now your entry signal is when you see a momentum candle. Remember the power candles that we talked about? You want to see this breaking in the opposite direction after multiple rejections. This momentum candle is the market saying, "We've tested this level multiple times. It's not breaking and now sellers are trapped and we are going to rocket to the upside." Your stop loss goes beyond the failed swing point and your target is the next significant level in the opposite direction. These could be your previous day levels or your previous session levels.

And all of this is built around the exact foundation that you've learned in this video. The single candlestick patterns are your building blocks for reading market psychology in real time. And your multi-candlestick patterns are confirmation signals that show you when multiple battles are connecting together. The psychology between buyers and sellers is what makes these strategies work, whether the market is trending, ranging, or volatile. And fair value gaps, well, they show you whenever big money is participating, which dramatically increases your probability of success. But most importantly, these strategies give you something that most traders never have. A complete framework for reading the market. You're not guessing anymore. You're not just hoping your patterns work. You're actually reading exactly what the market is telling you and then positioning yourself accordingly. And I want to be clear, guys, you are not just trading candlestick patterns. You're trading on the market psychology. You're not just following blind rules. You're reading the market's way of communicating. Because at the end of the day, all candlesticks are is the way that the market speaks to us. Think of it as the language of the stories that the market is trying to tell you. And once you understand this language, you will never look at the charts the same way again.

Now, I need to be completely honest with you guys about something. Having these strategies is only half the battle. The real challenge, the part that separates the consistent and profitable traders from everyone else is execution. Most traders fail not because they don't have good strategies, but because they can't stick to them when things get uncomfortable. They see perfect setups, but they hesitate because of a previous loss. They may even follow a strategy perfectly for a week and then abandon it after a few losing trades in a row. Which is why I created the mentorship that I wish I would have had when I started out as a trader. Inside you get access to live trading where you're watching your mentor execute and call out trades five days per week in both the London and New York sessions. Every single trade that you take is reviewed to make sure that you're doing things correctly and not making mistakes. You get access to Enigma trading software which is not available anywhere online. I invested my own capital into building this software and I do not offer it to the public. You get direct access to ask me anything you need and get the guidance and support necessary to stay consistent. And if you implement this full system and still don't become a funded trader, we will personally sit down with you calling out trades and fixing your mistakes until you become a funded trader. If you haven't realized already, this is not your average trading discord. And due to that, there are limited spots in each month's enrollment. And I can't guarantee that the doors are still open at the time you're watching this video. But if the link in the top of the description next to the word mentorship still works, then enrollment is open.

If this video brought value to your trading, go ahead and subscribe to the channel. I post free education here every single week. And truth be told, guys, everything that you need in order to be successful is here on YouTube. I'm not telling you by any means that there is any secrets or that you need the mentorship because truth be told, in trading you can learn everything on your own. The market's going to be your greatest teacher. It just might take years doing it that way rather than if you go with a mentor, it might take you a matter of months. So, make sure to subscribe, watch the playlist on your screen, and I look forward to seeing you guys win. Just remember to stay consistent and I'll see you guys in the next.