But on the contrary, you start incurring losses, the price starts coming down and many times it happens that as soon as we sell a stock, its price starts going up from there, we feel that we should have made a profit, I sold it, why? Many things must be coming to your mind too and why is this the reality? Today I will explain to you, let’s go into history or this candlestick pattern that we are seeing is an invention of the Japanese people. So, the Japanese people used to trade rice. They initially had rice trade, rice was grown in Japan and while trading rice, they saw many patterns. They made these candlesticks by trading rice. Earlier candlesticks were of white and black color. Now what did we do in this, the bullish candle in which the price goes up is of green color, in which the price comes down is of red color. Now they saw a pattern that when do most people buy and where do they buy? When most people invest money to buy rice, they do not buy shares. Where do they invest money? So he saw that most people
There is a saying in English, where most people buy edge bentley from
the top. Now edge bentley means with full enthusiasm that it seems that the price will surely run away from here, so most people
invest money from the top. And from there the price falls. So he saw the pattern there that a psychology is going on that most people
invest money from the top and that is why most people incur losses because the price falls from the top. And from there
most people sell below. So they go below and do panic selling and from there the price
rises. Now he started making its pattern in the form of a candle. Now how is a candle formed? If today we are looking at a candle, suppose it is a one-day candle.
A one-day candle tells what happened today in the whole day. Where did the price open? Where did it close? Where did it go? How did it fall? So open close low high, these four things are being told by a candle. Now inside the formation of this candle, if it is a Nifty candle, there have been millions of deals and transactions in Nifty. A candle has been created by tracking the number of purchases and sales in the 50 stocks present in it. And every candle is being created in the same way. So, how is a candle actually being created? A candle is basically a record of transactions happening over centuries. So, if I want to know what happened in the market today, whether the price rose or fell, this candle tells me. So, today in this video, we are going to decode these signals so that when this candle is being formed or has already formed in front of our eyes, we can take some decisions there. Now, it is very important to understand what a candlestick does. Most candlestick patterns indicate reversal. And people have to catch that reversal. They think that if we catch the reversal, we will make money. If the price was falling, falling, falling. I was there and a candle came and it told me that there is definitely a possibility of the price going up from here. It is not that if a candle is formed then it is a confirmation. So I will show you that people try to understand candlesticks, learn them, watch thousands of videos on the internet but even after that they are not able to make money from candlesticks. Today I will tell you the biggest reason for this. What is the reason for this? So today we will understand candlesticks one by one. What does the candle tell us, what does it try to tell us and some such patterns after understanding which we can make an accurate decision. Well, what is our psychology? We are an investor. So from where if we think that we are an investor before being a trader, then we have to first build our wealth in the market. We have to invest. So if the market is falling, then at a point from where I think there is a possibility of reversal from here, I can invest there. And when you invest a little more you will become wiser and gain some experience. If you think that there is a high possibility of reversal from here, then we can also trade there, so that we can earn some extra profit.