Advanced Candlestick Patterns Trading Course (ONLY FOR PROS)

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Summary

This video details advanced candlestick patterns and how to combine them with volume and order flow indicators for higher quality trade setups. It covers different candlestick patterns, the Cumulative Volume Delta (CVD) indicator, Volume Profile, and Footprint Charts, providing strategies to improve trading accuracy and profitability.

Highlights

Introduction to Candlestick Patterns and Volume
00:00:00

This section introduces the importance of combining candlestick patterns with volume and order flow for effective trading. It mentions a free volume and order flow trading guide available in the description and outlines the video's content: Candlestick types and pairing them with volume and order flow.

Long Wick Candles and Their Psychology
00:00:51

This part explains the long wick candle, indicating a loss of momentum from sellers (for bottom wicks) or buyers (for top wicks), and how to pair it with key support or resistance levels for trade setups. Longer wicks signify higher quality patterns.

Cluster of Long Wick Candles
00:02:10

This segment discusses clusters of long wick candles, which signify prolonged attempts by sellers or buyers to push price in one direction, ultimately failing. More clustered long wicks indicate higher quality patterns, especially when combined with key support or resistance levels.

Inverted Long Wick Candles
00:03:18

The video explains inverted long wick candles, where the wick sticks out against the general trend, indicating a sudden influx of buyers or sellers. Combining these with key levels offers distinct trade opportunities for reversals.

Candle Color Change Pattern
00:04:25

This section details the candle color change pattern, where a shift in candle color after a series of consecutive candles of the same color signals a loss of momentum from either buyers or sellers. This pattern is best utilized at key support or resistance levels.

Shrinking Candles Pattern
00:05:40

The shrinking candles pattern indicates a gradual loss of momentum as candle bodies get smaller. When combined with a reversal candle and key levels, it can signal an impending trend reversal.

Inside Bar Candle Pattern
00:06:47

An inside bar forms when its open and close are within the previous candle's range, signaling a loss of momentum and indecision. Using this pattern with key support or resistance levels can indicate potential reversals.

Momentum or Engulfing Candle Pattern
00:07:54

This part covers the momentum or engulfing candle, characterized by a significantly larger body than preceding candles, indicating a strong surge in buying or selling presence. It's a powerful reversal signal when occurring at key levels.

Gap Fill Candlestick Pattern
00:09:03

The gap fill pattern involves large price gaps (up or down) that tend to reverse and fill. The larger the gap, the higher the probability of a drastic reversal. This pattern, combined with other reversal candlesticks, offers high-probability trades.

Importance of Volume and Order Flow
00:10:54

This section emphasizes that relying solely on candlesticks and key levels is insufficient. True understanding comes from combining them with volume and order flow indicators to see 'behind the scenes' and identify actions of large institutions, preventing fake-out trade setups.

Cumulative Volume Delta (CVD) Indicator
00:12:21

The Cumulative Volume Delta (CVD) indicator analyzes buying and selling pressure at specific price points. It's primarily used to find divergences between price action and volume, signaling potential large reversals and increasing trade quality.

Volume Profile Tool
00:19:35

The Volume Profile tool shows trading volume at specific price levels over time. The 'point of control' (POC), where the highest volume occurred, signifies areas of high interest for future price action and trade opportunities, especially when aligned with key zones.

Footprint Charts: Understanding Market Action
00:22:01

Footprint charts allow traders to see buying and selling volume at each price level within a candlestick. This provides a detailed view of institutional action, offering insights into total volume, point of control within individual candles, and Delta (difference between buying and selling volume).

Delta Analysis in Footprint Charts
00:23:54

Delta, shown in footprint charts, highlights the net difference between buying and selling volume per price level. Green Delta indicates more buying, while red indicates more selling, providing granular insights into bullish or bearish sentiment at specific prices.

Volume Spike Strategy with Footprint Charts
00:25:25

This strategy focuses on identifying significant volume spikes on footprint charts, especially after reversal candlestick patterns at key levels. A sudden increase in total volume indicates major players entering the market, confirming potential strong reversals.

Delta Change Strategy
00:27:25

The Delta Change strategy involves identifying a key level, observing reversal price action, and then looking for a significant shift in Delta (e.g., from consecutive negative Delta to positive Delta). This indicates a change in market control and confirms a potential reversal.

Point of Control Strategy
00:32:20

This strategy utilizes the point of control (POC) within individual candlesticks on footprint charts. When a candle's POC aligns with a key support or resistance level or a previously established high-volume POC, it forms a 'POC Confluence Area,' signaling a high-quality trade setup.

Stacked Imbalance Strategy
00:34:02

Imbalances on footprint charts highlight areas with significant discrepancies (e.g., 300% or more) between buying and selling volume. 'Stacked imbalances' occur when multiple imbalances are stacked vertically, creating strong support (buy-side) or resistance (sell-side) zones for trade entries or exits.

Combining Stacked Imbalances with Key Levels
00:38:39

This advanced strategy combines stacked imbalances (adjusted to two levels for more opportunities) with traditional key support and resistance levels. The confluence of these factors, especially with trendline crosses and reversal candlesticks, creates extremely high-quality trade setups by stacking confluence factors.

Conclusion and Further Learning
00:44:19

The video concludes by emphasizing that the covered techniques are basic and encourage further learning of advanced order flow methods and strategies. It promotes a free order flow trading guide for those looking to deepen their understanding and trading skills.

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