Introduction to Candlestick Setups

What you’ll learn?

• Overview of common candlestick setups including engulfing setups, topping/bottoming tails, and bullish/bearish candles ignored (BCI)
• How these setups relate to technical market structure and trend changes on lower timeframes
• Specific rules for trading engulfing setups, including entry points, stop loss placement, and targets
• Topping/bottoming tails as signs of trend exhaustion that can precede engulfing setups
• BCI setups as opportunities to add to winning positions and raise stop losses to lock in profits
• Topping/bottoming tail takeouts as strong continuation setups
• Examples of these setups on Bitcoin’s weekly chart to illustrate entries, stop losses, take profits, and trend analysis
• Importance of waiting for candle closes for confirmation vs. contrarian early entries
• Using local swing highs/lows near setups for more conservative stop loss placement
• Profit taking techniques like taking partial profits after 2-3 candles and trailing stops
• Need to practice identifying these setups on charts to build pattern recognition skills

The key takeaway is understanding how to recognize and trade these specific candlestick patterns as part of a technical trading strategy, with precise rules for entries, exits, and risk management. Extensive chart examples are provided to illustrate the concepts.

Content Chapters

0:05 – Introduction and overview of candlestick setups
2:10 – Engulfing setups: definition, bullish and bearish examples, trading rules
7:00 – Delayed engulfing setups and variations
13:40 – Topping tail and bottoming tail setups
16:39 – Bullish and bearish candle ignored (BCI) setups
23:02 – Topping tail takeout and bottoming tail takeout setups
24:51 – Chart examples: analyzing candlestick setups on Bitcoin’s weekly chart
29:23 – Take profit techniques: 2-3 candle rule and trailing stops
32:18 – Bearish engulfing setup examples and trading rules
34:49 – Using closing basis stops vs. hard stops for entry and exit
38:18 – Combining multiple candlestick setups for trend analysis and re-entries
40:26 – Importance of practice and pattern recognition for identifying setups
42:55 – Conclusion and next steps for integrating candlestick setups into a trading strategy