How to READ STOCK PRICES as a BEGINNER! The Trading Code by Jason Cam Mini Series | Chapter #1

In this chapter, we learn about price, candlesticks, trends, waves, and price action. I'll be summarizing Chapter 1 - Price of The Trading Code by Jason Cam! In this mini-series, I'll be getting the lessons learned in this book into short videos that everybody who wants to start trading can watch. AKO NA YUNG GAGASTOS AT MAGBABASA PARA SA IYO!

FULL PLAYLIST: youtube.com/playlist?list=PL_xN5j1pLjScETK2xl9N…

Alam ko kasi na books cost a lot and mahirap magbasa at mas lalong mahirap i-retain yung binasa. Kaya I did the initiative to help others who are struggling para naman makatulong kahit papaano.

Price is the most important element in a chart. It is impossible to trade without knowledge of price action. All other things that you see in your chart are of secondary importance. Price discounts everything. The past and the future are already factored in it. Price is the present.

Since price is the most important element in a chart, it should occupy ample space in your chart so you can see it clearly

Price in charts is most commonly represented by candlesticks. But before Steve Nison introduced the use of these Japanese candlesticks (concept originated from Japan) in 1991, traders had been using bar and line charts in plotting and observing price action. The candlesticks are so user-friendly that even old traders are shifting from bars to candles.

It would be better to focus on the form of these candlesticks than to memorize their names. There is a story behind each candlestick form and you have to be able to interpret them correctly to have foresight on what could happen next.

A candlestick has 2 parts:
1. The Body which is the solid colored portion of the candle; and
2. The Tail (or wick) which are thin lines on the ends of the candle.

The color of the body determines if the stock has traded up (white) or down OlacD for the day. If you have a colored chart, white would be green, and black would be red.

The High is the highest price of the day. It is usually represented by the upper tail of the candle. If there is no tall, then the topmost part of the body is the high.
The Low is the lowest price of the day. It is usually represented by the lower tail of the candle. If there is no tail, then the bottom part of the body is the low.
The Open is the first price traded in the day.
The Close is the last price traded in the day. It is the most important part of the candle and is the most important price of the day.

The difference between the open and the close is called the range and is represented by the body of the candle. A white candle (or green in colored charts) means that the stock opened at a lower price and closed at a higher price, which is bullish. A black candle (or red in colored charts) means that the stock opened at a higher price but was sold down at the close, which is bearish. If the stock closed at the same price that it opened, then the candle has no body (nor color) and is called a doji.

General Guidelines in Interpreting Candlesticks
1. Color determines bullishness or bearishness. As long as it is white (or green in colored charts), it's bullish. If it's black (or red in colored charts), it's bearish.
2. Size of the body determines strength. The longer the white candle's body the more bullish it is, and the longer the black candle's body, the more bearish it is.
3. Location of the close in the candle sets the interpretation. The closer the close is to the high, the more bullish it is. The closer the close is to the low, the more bearish it is.

Momentum candles or energy candles are 2 or more long candles usually seen during trending moves. They are the ones that propel the price into a certain direction, be it up or down.
Non-momentum or weak candles are 2 or more short candles usually seen during trend pauses. Regardless of the color, they are signs of weakness or loss of momentum. They signify a possible change in trend.

Parte ito ng aking movement, #NoTraderLeftBehind. Napansin ko kasi na parami ng parami ang gusto maglagay ng kanilang pera sa stock market pero hindi marunong manlang magbasic charting. Ito ang isa mga nagiging dahilan kung bakit marami ang hindi nagtatagal sa market, naiipit, at naloloko dahil sa HYPE.

Sana nakatulong ang video na ito sa iyong stock trading journey! If oo, share mo naman sa comment section below!

DAILY / WEEKLY STOCK SCREENING:
facebook.com/matthewdoesntstop

FORECASTS ON INVESTAGRAMS:
investagrams.com/Profile/mattdoesntstop

I ALSO SHARE MY THOUGHTS ON TWITTER:
twitter.com/mattdoesntstop

TIMESTAMPS:
Introduction (0:00)
The optimal number of indicators (0:16)
Parts of a candlestick (1:01)
Candlestick Color (1:41)
Importance of the Closing Price (1:51)
Examples of candlesticks (2:03)
Bullish vs Bearish (2:21)
Range (3:51)
General Guidelines (4:49)
Trends (6:41)
Wave Counting (7:05)
Alternating Deep and Shallow Waves (8:23)
Price Action (9:02)
Application in real life (11:29)
Outro (12:34)