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your ability to use technical analysis
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in order to make good trading decisions
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and inevitably make money in any market
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is imperative it's something you cannot
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do without and if you do not understand
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some parts of technical analysis or if
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you don't know how to use them correctly
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then that is likely a huge reason that
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you are currently either losing money as
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a trader or struggling to create profits
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over time so for that reason what i want
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to do in today's video is show you
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everything you need to know about
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technical analysis we're going to be
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going all the way from what a
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candlestick chart is to indicators
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support and resistance trend all the way
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to entry patterns and how to take stops
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and targets we're dissecting everything
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today in this video i will be pouring
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all the knowledge about technical
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analysis that i have gained over the
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past decade of my own trading career
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into one video and since i'm doing that
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for absolutely free it would be awesome
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if you could just smash that like button
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for me to help out with the youtube
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algorithm if you are new go ahead and
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click that subscribe button because we
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come out with content like this each and
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every week you're already subscribed
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welcome back you know what's coming i'll
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see you after the intro and disclaimer
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[Music]
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so i'm gonna say this really slowly so
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that anybody who is brand new will
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easily understand
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technical analysis is the study of
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historic price movements in order to
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make accurate decisions of what the
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market may do next technical analysis is
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how we make those accurate decisions of
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what price may do next
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every part of technical analysis is
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based around price
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think about a candlestick chart that's
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just a visual representation of price
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itself trends are nothing more than
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higher highs and higher lows or lower
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lows and lower highs in price
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structure support and resistance even
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indicators
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are based around price they are just a
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formula added to historic price data in
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order to plot that indicator on your
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chart so because of the fact that the
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foundation of all technical analysis is
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priced the very first thing we're going
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to study today is a candlestick chart
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and i'm going to put a timestamp beside
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me of the seven or eight things we're
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going to be going over in today's video
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that way you can skip ahead if you
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already know parts of technical analysis
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with that said let's go ahead and dive
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into candlestick charts
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what you see on the screen in front of
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you is known as a candlestick chart
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right now we are on a daily chart of the
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s p 500. i'm gonna go to a price chart
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of bitcoin
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now we are on the daily chart of bitcoin
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and now let's go to a candlestick chart
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of the euro dollar
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now what do you notice about all three
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of these they all have candlestick
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charts so the foundation of technical
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analysis no matter what market you're
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trading in whether that be
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forex stocks crypto the foundation of
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technical analysis in every market are
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these candlestick charts but before we
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can understand this full candlestick
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chart first you need to understand what
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a single candlestick represents so let's
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do that now here are a couple of single
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candles and what these candles represent
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is price movement throughout a certain
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period of time depending on the time
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frame that you're on i'm sure you've all
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heard of time frames right the daily
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chart the one hour chart the five minute
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chart depending on what time frame
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you're on that's the amount of price
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movement these candles represent so
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let's consider that we are on a five
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minute chart that means that each of
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these candlesticks would represent five
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minutes of price movement now before i
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get ahead of myself candles have two
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parts candlesticks have a body which you
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can see here colored in in green
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and a wick which are the lines above
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and below the body of the candle a green
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candle represents a five-minute period
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since we're on a five-minute chart right
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a five-minute period where price went up
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or closed above where it opened we're
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going over that in just a second a red
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candle has a body as well but the body
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of this candle is red because it
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represents a five minute period where
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price closed below or went lower during
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that five minutes to make this really
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simple let me go ahead and explain the
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open high low and close the open of a
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candle
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is where it opened during that five
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minute period so let's say that the
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beginning of our candle is at 12
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o'clock
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what this candle would represent is the
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open of a candle at 12 o'clock the low
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would be the lowest point price got to
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during a five minute period
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the high
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would be the highest point price got to
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during a five minute period and our
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close would happen
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at
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1205 and that would be the ending price
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during a five minute period
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so that is a green candle a red candle
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represents when price went down during
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that period of time so for a red candle
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we would have an open at the top of the
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body this is the only difference between
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the two candles the open is at the top
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of the body of a red candle because
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during a red candle it represents a
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period where price closed below where it
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opened or went lower during let's say a
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five minute chart so the open is there
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the highest point is the same it's the
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top of the line or wick of the candle
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that's the highest point price got to
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within five minutes the low is the
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lowest wick on that candle that's the
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lowest point price got to in five
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minutes and the close is the closing
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price after five minutes of data on a
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five-minute chart again if we started
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this at 12 o'clock
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then the closing price would be at 1205
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and this candle shows you all of price
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between all of the action of price
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between 12 and 1205 if you're on a five
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minute chart if we're on any other time
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frame everything is exactly the same
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except for the amount of time that
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passes if you're on a one hour chart
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then this would be the open at 12
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o'clock and the close of this candle
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would be at one o'clock everything else
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stays the same the low is the lowest
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point that candle got to during that
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hour the highest the highest point that
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candle got to during that hour so at
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this point you should know exactly what
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each and every candle represents and we
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put a large amount of these candles
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together in order to interpret what
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price is likely to do next by
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identifying trends and areas of value
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identifying entry patterns which is all
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stuff that we're going to go over right
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now so let's dive down to a chart take a
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look at a couple of live examples of
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single candles and talk a little more
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about trend areas of value and the way
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we can use candlestick charts to predict
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what the market may do next with a high
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degree of accuracy just as a quick look
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at candles on an actual chart we are
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currently on the one day chart of the
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year in new zealand so what do each of
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these candlesticks represent they
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represent 24 hours of price movement or
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one day of price movement a green candle
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represents a day where price went higher
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or a day where the price closed
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above where it opened right a red candle
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represents a day when price went lower
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or a day where price closed below where
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it opened this most recent green candle
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what does it represent it represents
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price opening right here at the
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beginning of the day
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the lowest price that price got to is
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the bottom of this week the highest
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price that price made during that 24
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hour period is the top of the wick right
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here and the close of that day is the
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top of the body of that candle the
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opposite is true for a red candle so now
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that we have that let's move on to how
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we can use a large amount of these
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candles in order to identify
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a trending market and make accurate
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trading decisions
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so if you had to take a guess of what
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trend the euro new zealand was in which
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is the chart that is in front of you
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what would you say uptrend downtrend or
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consolidation
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hopefully you were able to say an
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uptrend and simply put an uptrend is
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nothing more than when a candlestick
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chart is consistently making new highs
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and then higher lows fall by new higher
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highs new higher lows new higher highs
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new higher lows new higher highs new
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higher lows and so forth this higher
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high and higher low situation is what is
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referred to as a trending market and
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this particular situation would be
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an uptrend
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now the reason we utilize a trending
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market is because it gives us more
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accuracy on our trades you've probably
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heard followed the trend before and most
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beginners
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will gravitate towards trend trading for
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good reason again it adds accuracy to
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your trait it can make for better reward
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to risk setups and all in all it's much
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easier to ride a trend that's already
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there than to pick the very top or the
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very bottom of a market trying to trade
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reversals so it's a good thing to trade
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with the trend with this market being in
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an uptrend what direction would you like
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to trade this market to the upside right
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you'd want to be buying while the market
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is in an uptrend but
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here's the problem with trend
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identification that i see all the time
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and that is just not really
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understanding or having a set in stone
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objective defined way to identify trend
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a lot of traders can easily identify
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this
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right that's an easy trend to see but
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what if price is acting like price
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normally does and it looks more like
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this
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we have our high low a new high but then
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price does this
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and this
260
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and then finally goes up and then goes
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up again at this point doesn't it get a
262
00:09:56,160 --> 00:09:58,560
little bit harder to identify trends so
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with that being the case i want to give
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00:09:59,839 --> 00:10:02,079
you an objective way to identify trend
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00:10:02,079 --> 00:10:04,079
right now what we have in a trending
266
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market are impulsive moves that is the
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big moves that break into new highs
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right here is our impulsive move i'll
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label those with an i
270
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these are the impulsive moves after an
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impulsive move the market takes a
272
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breather we call that
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our pullbacks
274
00:10:21,680 --> 00:10:22,640
these
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are our pullbacks in price this would be
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a pullback
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followed by
278
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our next impulsive move that breaks a
279
00:10:31,200 --> 00:10:34,640
high right here impulsive move and again
280
00:10:34,640 --> 00:10:37,040
pullback right here so the objective way
281
00:10:37,040 --> 00:10:39,040
that we're going to be identifying trend
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is the lowest low
283
00:10:41,680 --> 00:10:43,440
of the pullback
284
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cannot be broken for us to stay in an
285
00:10:46,560 --> 00:10:50,160
uptrend so once we have this move that
286
00:10:50,160 --> 00:10:52,160
breaks and closes above
287
00:10:52,160 --> 00:10:54,880
our previous high we call that our what
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impulsive move
289
00:10:56,560 --> 00:10:58,160
once we have that impulsive move
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breaking into new higher highs which is
291
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what we're looking for in an uptrend
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00:11:02,720 --> 00:11:05,120
this market is still considered in an
293
00:11:05,120 --> 00:11:07,760
uptrend until we break our close below
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the lowest low of the previous pullback
295
00:11:10,320 --> 00:11:13,519
so when we get a break above this high
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right here when this market breaks above
297
00:11:15,360 --> 00:11:18,640
this high with the new impulsive move
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making a new
299
00:11:20,160 --> 00:11:21,760
higher high
300
00:11:21,760 --> 00:11:23,920
then this market
301
00:11:23,920 --> 00:11:27,760
is still considered to be in an uptrend
302
00:11:27,760 --> 00:11:29,360
until
303
00:11:29,360 --> 00:11:32,079
or unless the market breaks and closes
304
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below what the lowest low
305
00:11:34,880 --> 00:11:36,800
of the pullback which would be where i
306
00:11:36,800 --> 00:11:39,120
just put this line this is the lowest
307
00:11:39,120 --> 00:11:40,079
low
308
00:11:40,079 --> 00:11:42,560
of that pullback so as long as the
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00:11:42,560 --> 00:11:43,600
market
310
00:11:43,600 --> 00:11:46,000
stays above that low
311
00:11:46,000 --> 00:11:47,360
then we're still considered to be in an
312
00:11:47,360 --> 00:11:48,399
uptrend and we still want to look for
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00:11:48,399 --> 00:11:50,560
buying opportunities at this point right
314
00:11:50,560 --> 00:11:52,959
here we have had what
315
00:11:52,959 --> 00:11:55,120
another impulsive move
316
00:11:55,120 --> 00:11:57,440
this move is our impulsive move because
317
00:11:57,440 --> 00:12:00,079
it broke above the previous higher high
318
00:12:00,079 --> 00:12:02,079
at this point what level cannot be
319
00:12:02,079 --> 00:12:04,800
broken for us to continue this uptrend
320
00:12:04,800 --> 00:12:06,240
we cannot see
321
00:12:06,240 --> 00:12:07,680
the low
322
00:12:07,680 --> 00:12:10,800
of our pullback broken where's the low
323
00:12:10,800 --> 00:12:13,200
that's the lowest point price got to in
324
00:12:13,200 --> 00:12:15,200
this pullback as long as the market
325
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stays above that level and continues
326
00:12:18,000 --> 00:12:20,000
making higher lows and higher highs than
327
00:12:20,000 --> 00:12:22,240
we're still in an uptrend what we do not
328
00:12:22,240 --> 00:12:23,600
want to see
329
00:12:23,600 --> 00:12:27,519
is the market come down and break below
330
00:12:27,519 --> 00:12:30,399
that previous low of the previous
331
00:12:30,399 --> 00:12:31,920
pullback i know that might sound
332
00:12:31,920 --> 00:12:33,760
complicated we'll do it on a real chart
333
00:12:33,760 --> 00:12:35,839
to help clear things up also if it
334
00:12:35,839 --> 00:12:37,200
sounded complicated just go back and
335
00:12:37,200 --> 00:12:39,279
rewatch this portion of the video this
336
00:12:39,279 --> 00:12:42,240
is how i objectively identify whether
337
00:12:42,240 --> 00:12:44,720
the market is trending up or down is
338
00:12:44,720 --> 00:12:46,000
going to be the opposite we'll look at a
339
00:12:46,000 --> 00:12:47,920
downtrend as well but the reason we have
340
00:12:47,920 --> 00:12:49,440
to have this information is because we
341
00:12:49,440 --> 00:12:52,560
want to be trading alongside
342
00:12:52,560 --> 00:12:54,880
the trend of any given market if this
343
00:12:54,880 --> 00:12:57,120
market's in an uptrend like this do i
344
00:12:57,120 --> 00:12:58,959
need to be trying to sell and go short
345
00:12:58,959 --> 00:13:01,200
and go against the trend no because the
346
00:13:01,200 --> 00:13:03,360
likely scenario is that we're going to
347
00:13:03,360 --> 00:13:05,519
continue into this trend we're going to
348
00:13:05,519 --> 00:13:08,000
continue breaking into new highs and
349
00:13:08,000 --> 00:13:10,320
just to show you that let's click play
350
00:13:10,320 --> 00:13:12,079
and see what happens at at this point
351
00:13:12,079 --> 00:13:13,680
right now looking at the chart what do
352
00:13:13,680 --> 00:13:15,360
you expect to happen
353
00:13:15,360 --> 00:13:18,079
what do we have we have our low just as
354
00:13:18,079 --> 00:13:20,480
we were just drawing it out to a high
355
00:13:20,480 --> 00:13:22,560
a higher low
356
00:13:22,560 --> 00:13:24,720
a higher high
357
00:13:24,720 --> 00:13:27,680
here's our higher low right here our
358
00:13:27,680 --> 00:13:30,000
higher high our higher low our higher
359
00:13:30,000 --> 00:13:32,399
high and our higher low we have now done
360
00:13:32,399 --> 00:13:34,880
what created an impulsive move
361
00:13:34,880 --> 00:13:36,399
what do we expect after the impulsive
362
00:13:36,399 --> 00:13:38,720
move we expect a pullback but what
363
00:13:38,720 --> 00:13:40,079
cannot happen
364
00:13:40,079 --> 00:13:43,040
this pullback after our impulsive move
365
00:13:43,040 --> 00:13:45,839
cannot break and close below
366
00:13:45,839 --> 00:13:49,519
the low of our previous pullback this is
367
00:13:49,519 --> 00:13:51,360
the low of our previous pullback so if
368
00:13:51,360 --> 00:13:52,880
this market does this
369
00:13:52,880 --> 00:13:55,040
then we're expecting what a possible
370
00:13:55,040 --> 00:13:57,199
reversal we're expecting this market to
371
00:13:57,199 --> 00:14:00,240
possibly head lower but as long as we
372
00:14:00,240 --> 00:14:02,639
stay above this previous pullback we're
373
00:14:02,639 --> 00:14:04,000
still considering this market in an
374
00:14:04,000 --> 00:14:05,680
uptrend still looking for buying
375
00:14:05,680 --> 00:14:08,240
opportunities let's see what this market
376
00:14:08,240 --> 00:14:10,079
does
377
00:14:10,079 --> 00:14:13,040
boom just like that we break into new
378
00:14:13,040 --> 00:14:16,639
structure highs continuing this uptrend
379
00:14:16,639 --> 00:14:18,959
here on the euro new zealand so that's
380
00:14:18,959 --> 00:14:21,360
how i identify uptrends list now switch
381
00:14:21,360 --> 00:14:23,839
the script flip the coin if you will and
382
00:14:23,839 --> 00:14:26,000
take a look at downtrends and how to
383
00:14:26,000 --> 00:14:28,079
identify those in order to make more
384
00:14:28,079 --> 00:14:31,279
accurate trading decisions so if for a
385
00:14:31,279 --> 00:14:33,440
uptrend we are looking for
386
00:14:33,440 --> 00:14:34,959
higher lows and higher highs what do you
387
00:14:34,959 --> 00:14:36,720
think we're looking for with a downtrend
388
00:14:36,720 --> 00:14:38,639
it's the complete opposite right we're
389
00:14:38,639 --> 00:14:40,800
looking for a starting point here then
390
00:14:40,800 --> 00:14:42,399
we're looking for lows
391
00:14:42,399 --> 00:14:44,639
followed by a lower high followed by a
392
00:14:44,639 --> 00:14:46,560
lower low followed by a lower high
393
00:14:46,560 --> 00:14:48,800
followed by a lower low followed by a
394
00:14:48,800 --> 00:14:50,800
lower high so on
395
00:14:50,800 --> 00:14:53,360
and so forth and with this being the
396
00:14:53,360 --> 00:14:55,440
case just like
397
00:14:55,440 --> 00:14:56,880
with the other example i'll give you an
398
00:14:56,880 --> 00:14:58,800
example on the whiteboard here if we're
399
00:14:58,800 --> 00:15:00,399
heading lower it's really easy to
400
00:15:00,399 --> 00:15:03,199
identify this as a downtrend this chart
401
00:15:03,199 --> 00:15:05,519
extremely easy what about when price
402
00:15:05,519 --> 00:15:07,600
does what price normally does and we get
403
00:15:07,600 --> 00:15:08,959
something like this
404
00:15:08,959 --> 00:15:11,040
and then the market goes like this
405
00:15:11,040 --> 00:15:12,800
and gets higher and consolidates and
406
00:15:12,800 --> 00:15:15,040
then finally breaks below this low well
407
00:15:15,040 --> 00:15:15,839
now
408
00:15:15,839 --> 00:15:17,680
since we just went over this you know
409
00:15:17,680 --> 00:15:19,440
that this is still a downtrend unless
410
00:15:19,440 --> 00:15:21,680
what happens just like an uptrend we
411
00:15:21,680 --> 00:15:24,240
have our impulsive moves here
412
00:15:24,240 --> 00:15:27,839
followed by pullbacks
413
00:15:27,920 --> 00:15:31,040
what we do not want to see
414
00:15:31,040 --> 00:15:34,000
is the market break and close above the
415
00:15:34,000 --> 00:15:34,880
high
416
00:15:34,880 --> 00:15:37,680
of the previous pullback in a downtrend
417
00:15:37,680 --> 00:15:39,839
if that happens then we're considering
418
00:15:39,839 --> 00:15:41,519
that a possible reversal but as long as
419
00:15:41,519 --> 00:15:43,519
that doesn't happen then we are still in
420
00:15:43,519 --> 00:15:45,519
a downtrend and what kind of trading
421
00:15:45,519 --> 00:15:47,519
opportunities are we looking for if this
422
00:15:47,519 --> 00:15:49,680
market's heading down we're looking for
423
00:15:49,680 --> 00:15:52,240
selling opportunities as long as the
424
00:15:52,240 --> 00:15:54,959
market continues to head in the downward
425
00:15:54,959 --> 00:15:57,360
direction so that is my objective way of
426
00:15:57,360 --> 00:16:00,160
identifying trend and at this point you
427
00:16:00,160 --> 00:16:01,519
have a lot of knowledge you've gained
428
00:16:01,519 --> 00:16:03,600
throughout this video you now understand
429
00:16:03,600 --> 00:16:05,440
candlestick charts you understand how to
430
00:16:05,440 --> 00:16:07,360
identify a trending market whether that
431
00:16:07,360 --> 00:16:09,600
be up or down so if you've already
432
00:16:09,600 --> 00:16:11,519
gained value why not go ahead and smash
433
00:16:11,519 --> 00:16:13,199
that like button for me and what we're
434
00:16:13,199 --> 00:16:15,279
going to do now is talk about how to
435
00:16:15,279 --> 00:16:18,320
find high probability areas of value
436
00:16:18,320 --> 00:16:21,120
using structure support and resistance
437
00:16:21,120 --> 00:16:23,839
see you there
438
00:16:25,199 --> 00:16:27,839
support and resistance are simply areas
439
00:16:27,839 --> 00:16:30,160
in the market that price is likely to
440
00:16:30,160 --> 00:16:32,560
react from support is an area in the
441
00:16:32,560 --> 00:16:34,639
market that price is likely to have a
442
00:16:34,639 --> 00:16:37,199
bounce up from or be supported by
443
00:16:37,199 --> 00:16:39,120
whereas resistance is an area in the
444
00:16:39,120 --> 00:16:41,920
market where the price of an asset or
445
00:16:41,920 --> 00:16:44,720
currency pair or crypto or stock is
446
00:16:44,720 --> 00:16:48,240
likely to fall or drop down from
447
00:16:48,240 --> 00:16:51,360
these areas are based on historic price
448
00:16:51,360 --> 00:16:54,320
and based on other areas of support and
449
00:16:54,320 --> 00:16:57,360
resistance we can see in historic data
450
00:16:57,360 --> 00:16:59,839
and those are based on the decisions of
451
00:16:59,839 --> 00:17:02,000
all other market participants we're not
452
00:17:02,000 --> 00:17:03,360
going to dive into the psychology of
453
00:17:03,360 --> 00:17:05,280
support and resistance in this beginner
454
00:17:05,280 --> 00:17:07,839
video but these areas of support and
455
00:17:07,839 --> 00:17:09,839
resistance are useful
456
00:17:09,839 --> 00:17:11,919
for three main reasons
457
00:17:11,919 --> 00:17:13,439
you can use them
458
00:17:13,439 --> 00:17:16,160
to spot possible reversals you can use
459
00:17:16,160 --> 00:17:17,919
them as entry points on train
460
00:17:17,919 --> 00:17:19,760
continuation trades and you can use them
461
00:17:19,760 --> 00:17:22,400
to help you determine your stops and
462
00:17:22,400 --> 00:17:24,000
targets so what we're going to do right
463
00:17:24,000 --> 00:17:26,400
now is go over a couple of those as i
464
00:17:26,400 --> 00:17:28,640
said earlier most beginners are going to
465
00:17:28,640 --> 00:17:30,559
gravitate towards trend continuation
466
00:17:30,559 --> 00:17:32,320
trading so what i'm going to do is show
467
00:17:32,320 --> 00:17:34,240
you how to use these areas of support
468
00:17:34,240 --> 00:17:36,720
and resistance to make better trading
469
00:17:36,720 --> 00:17:38,720
decisions while in a trending market and
470
00:17:38,720 --> 00:17:40,320
i'm going to go over how to use them to
471
00:17:40,320 --> 00:17:42,640
help you set your stops and targets so
472
00:17:42,640 --> 00:17:44,160
let's go ahead and dive into some charts
473
00:17:44,160 --> 00:17:46,640
and talk about support and resistance
474
00:17:46,640 --> 00:17:48,080
and how they can help us make better
475
00:17:48,080 --> 00:17:50,480
trading decisions using support and
476
00:17:50,480 --> 00:17:53,760
resistance as entry points in a trending
477
00:17:53,760 --> 00:17:56,559
market is very simple if we build on
478
00:17:56,559 --> 00:17:58,640
what we already know from the previous
479
00:17:58,640 --> 00:18:01,039
lesson about trend if we were to draw
480
00:18:01,039 --> 00:18:02,400
out a trending market it would look
481
00:18:02,400 --> 00:18:03,760
something like this
482
00:18:03,760 --> 00:18:06,720
low to a high pull back break above a
483
00:18:06,720 --> 00:18:09,120
little bit of consolidation not crossing
484
00:18:09,120 --> 00:18:10,799
that previous pullback low though so
485
00:18:10,799 --> 00:18:13,120
what are we still in an uptrend right
486
00:18:13,120 --> 00:18:15,200
continuing then pulling back continuing
487
00:18:15,200 --> 00:18:18,480
up pulling back and continuing higher
488
00:18:18,480 --> 00:18:20,559
in an uptrend
489
00:18:20,559 --> 00:18:23,360
the likely scenario if we're going to
490
00:18:23,360 --> 00:18:25,919
continue in this uptrend and one of the
491
00:18:25,919 --> 00:18:28,400
best ways to look for possible support
492
00:18:28,400 --> 00:18:30,880
and resistance trades is to look at the
493
00:18:30,880 --> 00:18:32,640
previous level
494
00:18:32,640 --> 00:18:35,840
of resistance that was broken to become
495
00:18:35,840 --> 00:18:37,039
support
496
00:18:37,039 --> 00:18:39,200
this is how we use support and
497
00:18:39,200 --> 00:18:41,200
resistance for
498
00:18:41,200 --> 00:18:43,600
entry points in a trend continuation
499
00:18:43,600 --> 00:18:46,160
model and in a trending market is by
500
00:18:46,160 --> 00:18:48,640
using that previous level of resistance
501
00:18:48,640 --> 00:18:50,880
as possible support let's do a bearish
502
00:18:50,880 --> 00:18:53,039
example in a bearish trend the trend
503
00:18:53,039 --> 00:18:55,760
would look something like this right
504
00:18:55,760 --> 00:18:57,840
as we go further and further what we're
505
00:18:57,840 --> 00:18:59,280
looking for in a bearish trend is for
506
00:18:59,280 --> 00:19:01,280
the market to get back up to
507
00:19:01,280 --> 00:19:04,960
that previous level of structure support
508
00:19:04,960 --> 00:19:07,440
that now we expect to become
509
00:19:07,440 --> 00:19:10,880
resistance so this is called a break and
510
00:19:10,880 --> 00:19:12,720
re-test strategy and what we're looking
511
00:19:12,720 --> 00:19:14,480
for with this strategy again is the
512
00:19:14,480 --> 00:19:16,160
market to break below
513
00:19:16,160 --> 00:19:18,320
a previous level of support like we have
514
00:19:18,320 --> 00:19:21,280
right here come back to that level and
515
00:19:21,280 --> 00:19:23,200
provide a trading opportunity we're
516
00:19:23,200 --> 00:19:25,440
going to talk about how we enter trades
517
00:19:25,440 --> 00:19:27,120
later on in the video but what you need
518
00:19:27,120 --> 00:19:29,120
to know right now is using structure
519
00:19:29,120 --> 00:19:32,000
support and resistance for entry levels
520
00:19:32,000 --> 00:19:34,240
in a trend continuation model and in a
521
00:19:34,240 --> 00:19:36,960
trending market goes like that and what
522
00:19:36,960 --> 00:19:38,320
we're going to do now is take a look at
523
00:19:38,320 --> 00:19:40,880
this on live chart data
524
00:19:40,880 --> 00:19:42,880
here we are on that same euro new
525
00:19:42,880 --> 00:19:44,160
zealand chart
526
00:19:44,160 --> 00:19:46,160
what did we just discuss well we want to
527
00:19:46,160 --> 00:19:49,120
see the trend start so we have our low
528
00:19:49,120 --> 00:19:50,240
to high
529
00:19:50,240 --> 00:19:53,360
high or low followed by our higher high
530
00:19:53,360 --> 00:19:55,360
at this point the reason this is our
531
00:19:55,360 --> 00:19:58,000
higher high is because
532
00:19:58,000 --> 00:20:01,039
this is where the market
533
00:20:01,039 --> 00:20:03,039
made a new high compared to its previous
534
00:20:03,039 --> 00:20:05,600
high and closed above the previous level
535
00:20:05,600 --> 00:20:08,640
of resistance with that being the case
536
00:20:08,640 --> 00:20:11,520
the previous level of resistance is
537
00:20:11,520 --> 00:20:14,000
likely to become support for a trend
538
00:20:14,000 --> 00:20:15,440
continuation
539
00:20:15,440 --> 00:20:18,080
market for a train continuation trade if
540
00:20:18,080 --> 00:20:20,480
we continue looking here we have a
541
00:20:20,480 --> 00:20:21,520
push-up
542
00:20:21,520 --> 00:20:23,280
a pullback
543
00:20:23,280 --> 00:20:25,679
a push-up to a new high this pullback
544
00:20:25,679 --> 00:20:27,679
where does this pull back come to if i
545
00:20:27,679 --> 00:20:29,360
was to draw this box out right here at
546
00:20:29,360 --> 00:20:31,440
our previous level of structure
547
00:20:31,440 --> 00:20:32,960
resistance
548
00:20:32,960 --> 00:20:34,640
and make it a little easier to see for
549
00:20:34,640 --> 00:20:36,159
you
550
00:20:36,159 --> 00:20:37,520
what do you notice
551
00:20:37,520 --> 00:20:39,200
at this point with this trend
552
00:20:39,200 --> 00:20:41,360
continuation in mind the market made a
553
00:20:41,360 --> 00:20:44,320
new high with our impulsive move
554
00:20:44,320 --> 00:20:46,000
comes down to our pullback where does
555
00:20:46,000 --> 00:20:48,880
our pullback come to our pullback comes
556
00:20:48,880 --> 00:20:51,200
right into the previous high that was
557
00:20:51,200 --> 00:20:53,760
broken this is resistance turned into
558
00:20:53,760 --> 00:20:56,640
support and this is how we use support
559
00:20:56,640 --> 00:20:58,880
and resistance to find entry points in
560
00:20:58,880 --> 00:21:00,880
trend continuation let's take a look at
561
00:21:00,880 --> 00:21:02,799
a bearish example of this now here we
562
00:21:02,799 --> 00:21:04,400
are on that same euro aussie chart we
563
00:21:04,400 --> 00:21:06,400
looked at for the trending model we were
564
00:21:06,400 --> 00:21:08,559
discussing earlier in the video in this
565
00:21:08,559 --> 00:21:11,440
case we have our high down to our low up
566
00:21:11,440 --> 00:21:14,880
to our high once we break below
567
00:21:14,880 --> 00:21:17,919
this low right here what are we looking
568
00:21:17,919 --> 00:21:18,880
for
569
00:21:18,880 --> 00:21:22,159
in a bearish trend after we break that
570
00:21:22,159 --> 00:21:23,200
low
571
00:21:23,200 --> 00:21:25,440
we would be looking for a pullback and
572
00:21:25,440 --> 00:21:26,640
let me delete these lines to make it
573
00:21:26,640 --> 00:21:28,400
easier to see
574
00:21:28,400 --> 00:21:31,360
into that low just as we have right here
575
00:21:31,360 --> 00:21:33,679
and a continuation of the trend
576
00:21:33,679 --> 00:21:35,520
afterwards as you can see this market
577
00:21:35,520 --> 00:21:38,320
pulls back right into the previous area
578
00:21:38,320 --> 00:21:40,799
of support it does become resistance and
579
00:21:40,799 --> 00:21:43,440
this market continues pushing down this
580
00:21:43,440 --> 00:21:46,080
happens over and over again and looks to
581
00:21:46,080 --> 00:21:48,400
be happening right now on live chart
582
00:21:48,400 --> 00:21:51,039
data here on the euro aussie let's draw
583
00:21:51,039 --> 00:21:52,640
that out so you have a complete
584
00:21:52,640 --> 00:21:54,799
comprehension of how to use support and
585
00:21:54,799 --> 00:21:56,559
resistance to find entry points in
586
00:21:56,559 --> 00:21:58,799
trending markets we have our high to our
587
00:21:58,799 --> 00:22:01,440
low our lower high what happens we break
588
00:22:01,440 --> 00:22:04,720
below what our previous low if we
589
00:22:04,720 --> 00:22:07,600
put a box around that previous low
590
00:22:07,600 --> 00:22:10,880
what has price now done price has now
591
00:22:10,880 --> 00:22:12,400
came back into
592
00:22:12,400 --> 00:22:14,000
that previous
593
00:22:14,000 --> 00:22:16,960
support level that now is what it's a
594
00:22:16,960 --> 00:22:18,960
break in retest strategy so if it was
595
00:22:18,960 --> 00:22:22,000
support it's now going to be resistance
596
00:22:22,000 --> 00:22:24,000
so at this point once we get to that
597
00:22:24,000 --> 00:22:25,840
level we can start looking for entry
598
00:22:25,840 --> 00:22:28,000
reasons again we're gonna talk about
599
00:22:28,000 --> 00:22:29,440
ways to enter the market in these type
600
00:22:29,440 --> 00:22:31,200
of situations a little bit later on in
601
00:22:31,200 --> 00:22:32,799
the video but for now it's just
602
00:22:32,799 --> 00:22:34,799
important for you to understand and
603
00:22:34,799 --> 00:22:36,960
comprehend that we're looking for breaks
604
00:22:36,960 --> 00:22:39,200
and re-tests of support and resistance
605
00:22:39,200 --> 00:22:41,280
levels in trending markets whether we're
606
00:22:41,280 --> 00:22:43,600
trending up or down that shouldn't have
607
00:22:43,600 --> 00:22:44,880
been too hard to comprehend but if you
608
00:22:44,880 --> 00:22:46,720
had any trouble rewind the video and
609
00:22:46,720 --> 00:22:48,880
watch that section again now let's talk
610
00:22:48,880 --> 00:22:50,720
about how to use these levels for
611
00:22:50,720 --> 00:22:52,640
possible targets let's go back to a
612
00:22:52,640 --> 00:22:54,559
bullish example
613
00:22:54,559 --> 00:22:56,159
so for a bullish example of this let's
614
00:22:56,159 --> 00:22:58,480
say that you got a entry
615
00:22:58,480 --> 00:23:00,559
in this area on a lower timeframe let's
616
00:23:00,559 --> 00:23:02,559
say you drop down and you saw like a
617
00:23:02,559 --> 00:23:04,559
double bottom or something in this area
618
00:23:04,559 --> 00:23:06,720
if that's the case then the way we could
619
00:23:06,720 --> 00:23:08,720
use support and resistance for possible
620
00:23:08,720 --> 00:23:10,400
targets is
621
00:23:10,400 --> 00:23:12,159
this level of support this box that we
622
00:23:12,159 --> 00:23:14,159
drew we definitely want our stop loss
623
00:23:14,159 --> 00:23:16,640
below that level so with that being the
624
00:23:16,640 --> 00:23:19,200
case we would make sure that our stop is
625
00:23:19,200 --> 00:23:21,280
below that level keeping us safe in
626
00:23:21,280 --> 00:23:23,200
terms of what we can expect out of
627
00:23:23,200 --> 00:23:26,559
targets the way we use this to prepare
628
00:23:26,559 --> 00:23:28,320
to take those targets is if we're
629
00:23:28,320 --> 00:23:30,799
expecting train continuation
630
00:23:30,799 --> 00:23:32,240
and before i continue do you see how
631
00:23:32,240 --> 00:23:33,679
everything's coming together
632
00:23:33,679 --> 00:23:35,120
we learned about trend in the last
633
00:23:35,120 --> 00:23:39,039
section if your pullback
634
00:23:39,039 --> 00:23:41,760
has not broken below the low of the
635
00:23:41,760 --> 00:23:43,440
previous pullback then what's the likely
636
00:23:43,440 --> 00:23:45,840
scenario that we break above these highs
637
00:23:45,840 --> 00:23:47,919
right into new highs and continue in
638
00:23:47,919 --> 00:23:50,799
this uptrend with that being the case
639
00:23:50,799 --> 00:23:52,720
what if you said well the way i'm going
640
00:23:52,720 --> 00:23:55,919
to take targets on this trade is by
641
00:23:55,919 --> 00:23:58,240
looking at the previous high and taking
642
00:23:58,240 --> 00:23:59,919
my targets there because the likely
643
00:23:59,919 --> 00:24:01,760
scenario is that this market continues
644
00:24:01,760 --> 00:24:03,279
higher so then you would place your
645
00:24:03,279 --> 00:24:06,480
targets based on this resistance level
646
00:24:06,480 --> 00:24:07,919
right here
647
00:24:07,919 --> 00:24:11,120
and that is how you use trend and
648
00:24:11,120 --> 00:24:13,279
structure in order to give yourself good
649
00:24:13,279 --> 00:24:16,080
reward to risk ratios and accurate
650
00:24:16,080 --> 00:24:18,000
trading opportunities in this case would
651
00:24:18,000 --> 00:24:21,039
have been about 3.6 reward to risk ratio
652
00:24:21,039 --> 00:24:22,240
on this trade
653
00:24:22,240 --> 00:24:24,480
my camera literally just died on me but
654
00:24:24,480 --> 00:24:26,880
i have an extra camera so no worries
655
00:24:26,880 --> 00:24:29,120
let's wrap it up with a recap
656
00:24:29,120 --> 00:24:31,279
for a trending market to the upside what
657
00:24:31,279 --> 00:24:33,200
we are looking for is a level of
658
00:24:33,200 --> 00:24:34,559
resistance to break and then we're
659
00:24:34,559 --> 00:24:36,720
looking for the pullback after the break
660
00:24:36,720 --> 00:24:38,799
of that level of resistance to come back
661
00:24:38,799 --> 00:24:41,679
to that level of resistance we're then
662
00:24:41,679 --> 00:24:44,799
looking for that level to become support
663
00:24:44,799 --> 00:24:47,520
in an uptrend and in a trending market
664
00:24:47,520 --> 00:24:49,919
for a downtrend we are looking for quite
665
00:24:49,919 --> 00:24:51,440
the opposite we're looking for a level
666
00:24:51,440 --> 00:24:53,520
of support to break
667
00:24:53,520 --> 00:24:55,440
and then the market have a pullback that
668
00:24:55,440 --> 00:24:57,279
comes back to that level of support
669
00:24:57,279 --> 00:24:59,360
we're looking for that level of support
670
00:24:59,360 --> 00:25:02,080
to become the likely area of resistance
671
00:25:02,080 --> 00:25:03,919
for the continuation
672
00:25:03,919 --> 00:25:06,159
of that downtrend in terms of stops and
673
00:25:06,159 --> 00:25:08,240
targets we're using these levels to make
674
00:25:08,240 --> 00:25:11,200
sure our stop loss is beyond that level
675
00:25:11,200 --> 00:25:12,799
of support that we point out or that
676
00:25:12,799 --> 00:25:14,880
level of resistance we point out and we
677
00:25:14,880 --> 00:25:16,720
want to look left and make sure our
678
00:25:16,720 --> 00:25:18,960
targets are not close to a level of
679
00:25:18,960 --> 00:25:22,159
resistance for a buy trade or not past a
680
00:25:22,159 --> 00:25:23,600
level of major resistance because that
681
00:25:23,600 --> 00:25:25,760
level of major resistance may push the
682
00:25:25,760 --> 00:25:27,679
market down we want to make sure we take
683
00:25:27,679 --> 00:25:29,360
targets or at least roll stops to break
684
00:25:29,360 --> 00:25:32,159
even before the market gets pushed down
685
00:25:32,159 --> 00:25:34,159
by that level of resistance the opposite
686
00:25:34,159 --> 00:25:37,200
is true in a downtrend with a level of
687
00:25:37,200 --> 00:25:38,720
support if you're selling you want the
688
00:25:38,720 --> 00:25:40,240
market to go lower you don't want to be
689
00:25:40,240 --> 00:25:42,559
beyond a level of support
690
00:25:42,559 --> 00:25:44,320
so that wraps up the support and
691
00:25:44,320 --> 00:25:47,120
resistance lesson next up
692
00:25:47,120 --> 00:25:48,960
we're going to talk all about
693
00:25:48,960 --> 00:25:50,480
indicators and how they can help you
694
00:25:50,480 --> 00:25:53,120
make better trading decisions let's do
695
00:25:53,120 --> 00:25:56,760
that right now
696
00:25:57,360 --> 00:25:58,880
before we get started i need you to make
697
00:25:58,880 --> 00:26:02,320
your chart look exactly like this
698
00:26:02,320 --> 00:26:05,360
just joking but trading indicators are
699
00:26:05,360 --> 00:26:08,159
formulas added to current and historic
700
00:26:08,159 --> 00:26:10,400
price and mathematical equations in
701
00:26:10,400 --> 00:26:14,159
order to plot lines and histograms on
702
00:26:14,159 --> 00:26:16,640
your chart the purpose of trading
703
00:26:16,640 --> 00:26:18,880
indicators is to help simplify what
704
00:26:18,880 --> 00:26:20,799
price is doing a candlestick chart
705
00:26:20,799 --> 00:26:23,760
itself can be very confusing at times so
706
00:26:23,760 --> 00:26:26,080
trading indicators are meant to clean up
707
00:26:26,080 --> 00:26:28,320
some of that noise they can also be used
708
00:26:28,320 --> 00:26:30,400
as an invaluable
709
00:26:30,400 --> 00:26:33,279
objective role in a trading strategy or
710
00:26:33,279 --> 00:26:36,240
in our trading in general to help us
711
00:26:36,240 --> 00:26:39,120
have consistency so essentially trading
712
00:26:39,120 --> 00:26:41,440
indicators can help to provide clarity
713
00:26:41,440 --> 00:26:43,440
on market conditions they can even help
714
00:26:43,440 --> 00:26:46,240
us to identify trend identify areas of
715
00:26:46,240 --> 00:26:49,120
value help us find entry points and even
716
00:26:49,120 --> 00:26:51,440
help us determine where we want to place
717
00:26:51,440 --> 00:26:54,400
our stops and targets now there are
718
00:26:54,400 --> 00:26:56,240
thousands of trading indicators out
719
00:26:56,240 --> 00:26:59,279
there and feel free to go test and study
720
00:26:59,279 --> 00:27:01,039
all of them to find the ones that fit
721
00:27:01,039 --> 00:27:03,520
your trading style best but in this
722
00:27:03,520 --> 00:27:05,520
lesson what i'm going to do is share
723
00:27:05,520 --> 00:27:07,840
with you my top three that i use every
724
00:27:07,840 --> 00:27:10,720
single day in my trading as indicators
725
00:27:10,720 --> 00:27:13,279
to help me make better trading decisions
726
00:27:13,279 --> 00:27:16,240
so let's jump into that right now
727
00:27:16,240 --> 00:27:18,720
the most useful indicator that i have
728
00:27:18,720 --> 00:27:21,360
ever found and with no exaggeration an
729
00:27:21,360 --> 00:27:23,600
indicator that i use every single time i
730
00:27:23,600 --> 00:27:27,279
place a trade is the atr indicator atr
731
00:27:27,279 --> 00:27:29,200
stands for average true range and what
732
00:27:29,200 --> 00:27:31,600
this indicator does is gives you the
733
00:27:31,600 --> 00:27:34,000
average movement of price out of the
734
00:27:34,000 --> 00:27:38,640
last 14 candles the way it works is it
735
00:27:38,640 --> 00:27:41,120
adds up the price movement in total the
736
00:27:41,120 --> 00:27:44,640
total amount of pips each candle moved
737
00:27:44,640 --> 00:27:46,720
out of the last 14 candles then it
738
00:27:46,720 --> 00:27:48,399
divides that number
739
00:27:48,399 --> 00:27:52,000
by 14 to give you the total
740
00:27:52,000 --> 00:27:53,120
average
741
00:27:53,120 --> 00:27:56,559
movement of price in the last 14 candles
742
00:27:56,559 --> 00:27:58,960
hopefully you can already see why that
743
00:27:58,960 --> 00:28:01,279
is so valuable but if not let's talk
744
00:28:01,279 --> 00:28:03,120
about how we use this indicator before
745
00:28:03,120 --> 00:28:04,720
we do that let's talk about how to find
746
00:28:04,720 --> 00:28:06,720
it on trading view it's super easy you
747
00:28:06,720 --> 00:28:08,720
go up here to your indicator tab click
748
00:28:08,720 --> 00:28:12,240
indicators and you type in atr it is the
749
00:28:12,240 --> 00:28:15,039
first one that is called built-ins any
750
00:28:15,039 --> 00:28:17,360
trading platform should have an atr
751
00:28:17,360 --> 00:28:18,880
indicator if it doesn't you probably
752
00:28:18,880 --> 00:28:21,039
shouldn't be trading with it but the way
753
00:28:21,039 --> 00:28:24,399
we use this indicator is to
754
00:28:24,399 --> 00:28:27,039
stay in line with the volatility of a
755
00:28:27,039 --> 00:28:30,320
market currency pair or time frame for
756
00:28:30,320 --> 00:28:32,240
example there's been so many times that
757
00:28:32,240 --> 00:28:34,720
i see a trader or hear from traders and
758
00:28:34,720 --> 00:28:36,480
they say stephen i don't know what i'm
759
00:28:36,480 --> 00:28:38,399
doing wrong i keep losing trades and you
760
00:28:38,399 --> 00:28:40,960
know i'm i got a good reward to risk
761
00:28:40,960 --> 00:28:43,120
ratio but i'm losing so much i'm still
762
00:28:43,120 --> 00:28:44,480
losing money in my account and they'll
763
00:28:44,480 --> 00:28:46,399
send me emails of their trades and
764
00:28:46,399 --> 00:28:49,200
they're risking 10 pips
765
00:28:49,200 --> 00:28:51,120
to make 20 pips
766
00:28:51,120 --> 00:28:52,880
but they're doing that on every currency
767
00:28:52,880 --> 00:28:54,960
pair and every time frame now this may
768
00:28:54,960 --> 00:28:55,760
work
769
00:28:55,760 --> 00:28:59,600
on a five minute chart maybe right on a
770
00:28:59,600 --> 00:29:02,080
15-minute chart possibly that creates a
771
00:29:02,080 --> 00:29:03,760
profit depending on the strategy but if
772
00:29:03,760 --> 00:29:05,600
you're on a daily chart
773
00:29:05,600 --> 00:29:09,279
risking 10 pips when the average
774
00:29:09,279 --> 00:29:11,520
if you look up top here
775
00:29:11,520 --> 00:29:12,480
whenever
776
00:29:12,480 --> 00:29:14,480
i go away from my drawing tool the
777
00:29:14,480 --> 00:29:16,880
average movement on a daily chart is 190
778
00:29:16,880 --> 00:29:19,200
pips you think that 10 pip stop loss is
779
00:29:19,200 --> 00:29:20,399
going to get hit
780
00:29:20,399 --> 00:29:23,520
yeah 90 of the time 90 of time you're
781
00:29:23,520 --> 00:29:24,880
gonna lose that trade because you're not
782
00:29:24,880 --> 00:29:27,039
in line with the volatility of the time
783
00:29:27,039 --> 00:29:29,360
frame you're on the same thing goes for
784
00:29:29,360 --> 00:29:31,840
different currency pairs for example the
785
00:29:31,840 --> 00:29:33,440
euro pound
786
00:29:33,440 --> 00:29:36,320
in the currency world is a currency pair
787
00:29:36,320 --> 00:29:39,200
that has a very small amount of movement
788
00:29:39,200 --> 00:29:41,520
per candle on the daily chart we're
789
00:29:41,520 --> 00:29:43,679
looking at 50 pips again look up here at
790
00:29:43,679 --> 00:29:46,640
the circle right at 48 pips
791
00:29:46,640 --> 00:29:49,279
that's a full day of trading on average
792
00:29:49,279 --> 00:29:51,600
for the euro pound whereas the pound new
793
00:29:51,600 --> 00:29:53,840
zealand on the same chart look at this
794
00:29:53,840 --> 00:29:54,600
day
795
00:29:54,600 --> 00:29:58,399
160 pips so do you think you need to be
796
00:29:58,399 --> 00:30:01,039
using the same exact stop loss when
797
00:30:01,039 --> 00:30:02,880
these two markets
798
00:30:02,880 --> 00:30:05,520
are moving so differently one moving in
799
00:30:05,520 --> 00:30:08,080
tiny amounts per candle one moving in
800
00:30:08,080 --> 00:30:10,159
huge amounts per candle no so that's why
801
00:30:10,159 --> 00:30:12,880
we need the atr indicator to help us
802
00:30:12,880 --> 00:30:14,880
stay in line with the volatility of a
803
00:30:14,880 --> 00:30:16,880
certain currency pair or a certain time
804
00:30:16,880 --> 00:30:19,760
frame to keep from getting wicked out by
805
00:30:19,760 --> 00:30:21,200
the market if you've ever been wicked
806
00:30:21,200 --> 00:30:24,240
out of a trade a lot of that could be
807
00:30:24,240 --> 00:30:25,279
because you're not following the
808
00:30:25,279 --> 00:30:27,120
volatility of a certain market so now
809
00:30:27,120 --> 00:30:29,120
let me move on and show you how i
810
00:30:29,120 --> 00:30:31,279
actually use this in my own personal
811
00:30:31,279 --> 00:30:33,440
trading so based on what you've learned
812
00:30:33,440 --> 00:30:35,760
so far in this video what trend is the
813
00:30:35,760 --> 00:30:38,159
aussie canada in right now well we've
814
00:30:38,159 --> 00:30:40,399
had a high down to a low
815
00:30:40,399 --> 00:30:43,520
up to a lower high down to a lower low
816
00:30:43,520 --> 00:30:45,360
with that being the case are we in a
817
00:30:45,360 --> 00:30:46,559
downtrend
818
00:30:46,559 --> 00:30:48,799
yes we are and
819
00:30:48,799 --> 00:30:50,960
in terms of structure and support and
820
00:30:50,960 --> 00:30:52,320
resistance we look for while in a
821
00:30:52,320 --> 00:30:54,159
downtrend what are we looking for
822
00:30:54,159 --> 00:30:56,720
we are looking for the previous level
823
00:30:56,720 --> 00:30:59,360
of support to become resistance
824
00:30:59,360 --> 00:31:01,360
in a downtrend and we haven't gone over
825
00:31:01,360 --> 00:31:04,159
this yet but we actually have a nice
826
00:31:04,159 --> 00:31:06,960
inverted hammer here or a nice shooting
827
00:31:06,960 --> 00:31:08,159
star candle whatever you want to call it
828
00:31:08,159 --> 00:31:09,360
i don't really worry about the names of
829
00:31:09,360 --> 00:31:11,279
them this candle has a long wick to the
830
00:31:11,279 --> 00:31:13,039
top side again we're going over
831
00:31:13,039 --> 00:31:14,399
candlestick patterns actually in the
832
00:31:14,399 --> 00:31:16,880
very next lesson but right now what i
833
00:31:16,880 --> 00:31:18,399
want to show you is how i would use the
834
00:31:18,399 --> 00:31:21,919
atr to help me predict stops and targets
835
00:31:21,919 --> 00:31:23,360
in terms of how i would use that
836
00:31:23,360 --> 00:31:25,440
indicator to place those let's go ahead
837
00:31:25,440 --> 00:31:27,679
and put a position tool on the chart
838
00:31:27,679 --> 00:31:29,760
right now the atr if you look in the top
839
00:31:29,760 --> 00:31:31,200
left corner of the screen right up here
840
00:31:31,200 --> 00:31:33,039
is 67
841
00:31:33,039 --> 00:31:35,840
for the aussie canada if the atr is 67
842
00:31:35,840 --> 00:31:37,679
what i want to do is make sure that i am
843
00:31:37,679 --> 00:31:39,360
at least one atr
844
00:31:39,360 --> 00:31:41,919
above the swing high of this current
845
00:31:41,919 --> 00:31:44,399
pullback to give the trade breathing
846
00:31:44,399 --> 00:31:47,279
room so if up to that high is 30 pips as
847
00:31:47,279 --> 00:31:49,519
you can see right here this is up to the
848
00:31:49,519 --> 00:31:52,880
swing high then i need to add 67 pips to
849
00:31:52,880 --> 00:31:57,600
that that would be a 97 pip stop loss
850
00:31:57,600 --> 00:31:59,279
now i know that i said
851
00:31:59,279 --> 00:32:01,840
we shouldn't be looking past levels of
852
00:32:01,840 --> 00:32:03,600
support like
853
00:32:03,600 --> 00:32:05,279
this in order to take targets but in
854
00:32:05,279 --> 00:32:07,440
this situation let's just do it anyway
855
00:32:07,440 --> 00:32:09,440
and with that being the case i may say
856
00:32:09,440 --> 00:32:11,679
something like i expect this in terms of
857
00:32:11,679 --> 00:32:13,600
targets right this was how i use it for
858
00:32:13,600 --> 00:32:14,480
stops
859
00:32:14,480 --> 00:32:17,120
i make sure that i'm at least one atr
860
00:32:17,120 --> 00:32:19,919
above the swing high or below the swing
861
00:32:19,919 --> 00:32:22,480
low if i'm shorting versus going long
862
00:32:22,480 --> 00:32:23,200
now
863
00:32:23,200 --> 00:32:25,600
for targets i may say i'm expecting the
864
00:32:25,600 --> 00:32:27,200
market to move
865
00:32:27,200 --> 00:32:29,120
two times the atr indicator so what's
866
00:32:29,120 --> 00:32:30,919
two times 67
867
00:32:30,919 --> 00:32:36,159
134 so now i can have a 134 pip target
868
00:32:36,159 --> 00:32:37,279
and again this would work better if
869
00:32:37,279 --> 00:32:38,399
there wasn't a level of structure in the
870
00:32:38,399 --> 00:32:40,000
way but for the purpose of the atr
871
00:32:40,000 --> 00:32:42,080
indicator just go with it and that sets
872
00:32:42,080 --> 00:32:44,640
me up with a 1.4 to 1 reward to risk
873
00:32:44,640 --> 00:32:47,360
ratio this is how one of the ways that i
874
00:32:47,360 --> 00:32:49,200
would use the atr
875
00:32:49,200 --> 00:32:51,039
in order to place stop losses another
876
00:32:51,039 --> 00:32:53,760
way you can do this is by simply this is
877
00:32:53,760 --> 00:32:56,000
a more simple way is by saying okay i
878
00:32:56,000 --> 00:32:58,000
want a stop loss that is two times the
879
00:32:58,000 --> 00:33:00,240
atr indicator from my entry so that
880
00:33:00,240 --> 00:33:03,760
would be 134 from entry right
881
00:33:05,279 --> 00:33:07,679
and in order to get a two to one reward
882
00:33:07,679 --> 00:33:10,480
to risk ratio i want to have a 4
883
00:33:10,480 --> 00:33:13,760
times atr indicator for my target 134
884
00:33:13,760 --> 00:33:15,760
times 4 is 268
885
00:33:15,760 --> 00:33:18,159
and that would be a 2 to 1 reward to
886
00:33:18,159 --> 00:33:20,640
risk ratio and that would be the way
887
00:33:20,640 --> 00:33:22,320
your trade setup looks at this point
888
00:33:22,320 --> 00:33:24,080
you're giving yourself room for your
889
00:33:24,080 --> 00:33:25,440
stop loss and you're accounting for the
890
00:33:25,440 --> 00:33:27,600
volatility of the market in terms of
891
00:33:27,600 --> 00:33:29,840
finding targets as well those are the
892
00:33:29,840 --> 00:33:32,240
two ways i like to use the atr indicator
893
00:33:32,240 --> 00:33:34,240
let's now move on to the next
894
00:33:34,240 --> 00:33:35,840
favorite indicator that i have the
895
00:33:35,840 --> 00:33:36,720
second
896
00:33:36,720 --> 00:33:39,200
most valuable in my opinion which is
897
00:33:39,200 --> 00:33:42,080
moving averages moving averages are
898
00:33:42,080 --> 00:33:44,159
exactly what they sound like it is the
899
00:33:44,159 --> 00:33:46,320
average movement of price over a certain
900
00:33:46,320 --> 00:33:47,919
period of time so the red line you see
901
00:33:47,919 --> 00:33:50,159
on the screen right now is the 20 period
902
00:33:50,159 --> 00:33:51,760
moving average what that means is that
903
00:33:51,760 --> 00:33:55,120
this indicator took the closing price
904
00:33:55,120 --> 00:33:58,080
of the last 20 candles
905
00:33:58,080 --> 00:34:00,480
and then divided that number by 20 in
906
00:34:00,480 --> 00:34:03,600
order to plot this line on the screen if
907
00:34:03,600 --> 00:34:06,559
this moving average was to be 50 periods
908
00:34:06,559 --> 00:34:08,960
or look back period or length whatever
909
00:34:08,960 --> 00:34:10,960
it's defined as in your trading platform
910
00:34:10,960 --> 00:34:13,440
it may be slightly different if it's 50
911
00:34:13,440 --> 00:34:14,800
though what does that mean
912
00:34:14,800 --> 00:34:16,639
that means that this indicator took the
913
00:34:16,639 --> 00:34:18,560
closing price
914
00:34:18,560 --> 00:34:22,239
of the last 50 candles divided that by
915
00:34:22,239 --> 00:34:24,800
50 and that's how you get this line on
916
00:34:24,800 --> 00:34:27,440
your screen right here now in order to
917
00:34:27,440 --> 00:34:28,879
plot this on the chart it should be
918
00:34:28,879 --> 00:34:31,119
self-explanatory but you just go up to
919
00:34:31,119 --> 00:34:32,239
indicators
920
00:34:32,239 --> 00:34:33,839
here on trading view it's very easy you
921
00:34:33,839 --> 00:34:37,040
type in moving average without that
922
00:34:37,040 --> 00:34:39,199
weird vocal tone and then you go down to
923
00:34:39,199 --> 00:34:40,399
moving average and just plot it on the
924
00:34:40,399 --> 00:34:42,480
chart now there are three main ways i
925
00:34:42,480 --> 00:34:44,079
use moving averages let's go ahead and
926
00:34:44,079 --> 00:34:46,639
dive into those right now the first way
927
00:34:46,639 --> 00:34:48,800
that i like to use moving averages
928
00:34:48,800 --> 00:34:51,839
is to help me define trends so earlier
929
00:34:51,839 --> 00:34:53,599
in the video we talked about candlestick
930
00:34:53,599 --> 00:34:55,760
charts and a defining trend with swing
931
00:34:55,760 --> 00:34:57,119
highs and lows
932
00:34:57,119 --> 00:34:58,960
as i said about indicators earlier
933
00:34:58,960 --> 00:35:01,200
though indicators are there
934
00:35:01,200 --> 00:35:03,520
to help you clarify what price is
935
00:35:03,520 --> 00:35:06,079
actually doing so a moving average is a
936
00:35:06,079 --> 00:35:08,720
great objective way to define trend the
937
00:35:08,720 --> 00:35:11,359
way you would do that is if price is
938
00:35:11,359 --> 00:35:13,839
trading above whatever period moving
939
00:35:13,839 --> 00:35:16,160
average you choose for short term trends
940
00:35:16,160 --> 00:35:18,240
the 20 works great
941
00:35:18,240 --> 00:35:21,920
if price is above the 20 then i am in
942
00:35:21,920 --> 00:35:24,079
an uptrend
943
00:35:24,079 --> 00:35:25,680
and i'll do an example on the screen now
944
00:35:25,680 --> 00:35:28,640
for if price is below the 20 then i am
945
00:35:28,640 --> 00:35:30,400
in a downtrend
946
00:35:30,400 --> 00:35:33,280
and that's the way we would use a moving
947
00:35:33,280 --> 00:35:35,520
average a single moving average to help
948
00:35:35,520 --> 00:35:37,440
us define trend and the way we would
949
00:35:37,440 --> 00:35:39,359
trade based around that is we only look
950
00:35:39,359 --> 00:35:41,839
for buy trades while price is moving and
951
00:35:41,839 --> 00:35:44,480
creating new highs and lows above the 20
952
00:35:44,480 --> 00:35:46,560
period moving average for this short
953
00:35:46,560 --> 00:35:49,280
term trend and highly volatile trend if
954
00:35:49,280 --> 00:35:51,040
it's staying above the 20 moving average
955
00:35:51,040 --> 00:35:52,960
then a really high volatility trend
956
00:35:52,960 --> 00:35:54,480
great time to trade breakouts which
957
00:35:54,480 --> 00:35:56,560
we're gonna discuss later on in the
958
00:35:56,560 --> 00:35:58,640
video but
959
00:35:58,640 --> 00:36:00,320
the next way i like to use moving
960
00:36:00,320 --> 00:36:03,040
averages is as an area of value as you
961
00:36:03,040 --> 00:36:04,720
can see on the chart here yes this is
962
00:36:04,720 --> 00:36:06,800
cherry picked and it will not work every
963
00:36:06,800 --> 00:36:08,560
single time i'm not saying
964
00:36:08,560 --> 00:36:10,640
buy every time the market hits the 20
965
00:36:10,640 --> 00:36:12,640
period moving average trust me i've done
966
00:36:12,640 --> 00:36:14,720
that and it sucks it does not work
967
00:36:14,720 --> 00:36:16,800
that's why let me just break off for a
968
00:36:16,800 --> 00:36:19,040
second here that's the reason that we
969
00:36:19,040 --> 00:36:20,720
have to have a combination of all of
970
00:36:20,720 --> 00:36:22,160
these technical factors in order to
971
00:36:22,160 --> 00:36:24,480
create a profitable edge over the market
972
00:36:24,480 --> 00:36:26,079
in a profitable system we can't just use
973
00:36:26,079 --> 00:36:28,000
one but let's get back to the video this
974
00:36:28,000 --> 00:36:30,079
can add confluence to a trade when
975
00:36:30,079 --> 00:36:31,520
you're using
976
00:36:31,520 --> 00:36:34,079
this area of value with combinations
977
00:36:34,079 --> 00:36:35,760
like the previous level of resistance
978
00:36:35,760 --> 00:36:38,000
that was broken and candlestick patterns
979
00:36:38,000 --> 00:36:42,400
right but as i digress the 20 period
980
00:36:42,400 --> 00:36:45,040
moving average can act as a great area
981
00:36:45,040 --> 00:36:47,200
of value in short term trends as you can
982
00:36:47,200 --> 00:36:48,960
see on the chart here when the market
983
00:36:48,960 --> 00:36:50,560
pulls back to that moving average we get
984
00:36:50,560 --> 00:36:52,640
a pop out of it pulls back gets a pop
985
00:36:52,640 --> 00:36:54,320
out of it pulls back gets a pop out of
986
00:36:54,320 --> 00:36:56,960
it now in terms of using moving averages
987
00:36:56,960 --> 00:36:58,079
for
988
00:36:58,079 --> 00:36:59,599
identifying areas of value there are
989
00:36:59,599 --> 00:37:01,440
only three i would use and that is the
990
00:37:01,440 --> 00:37:03,359
20 period moving average we have right
991
00:37:03,359 --> 00:37:04,480
here
992
00:37:04,480 --> 00:37:06,839
the 50 period moving
993
00:37:06,839 --> 00:37:09,040
average that we have right here as you
994
00:37:09,040 --> 00:37:10,800
can see support
995
00:37:10,800 --> 00:37:12,800
provided area value out of the market
996
00:37:12,800 --> 00:37:14,560
and i bet this is going to land
997
00:37:14,560 --> 00:37:17,520
somewhere near the 200 or this may let's
998
00:37:17,520 --> 00:37:19,520
let's try it and the 200 period moving
999
00:37:19,520 --> 00:37:21,520
average so those are the only three i
1000
00:37:21,520 --> 00:37:23,680
would use damn i was close those are the
1001
00:37:23,680 --> 00:37:25,680
only three i would use as areas of value
1002
00:37:25,680 --> 00:37:28,000
as you can see the 200 also provides
1003
00:37:28,000 --> 00:37:30,480
resistance and support as well the
1004
00:37:30,480 --> 00:37:31,839
reason those three work the best is
1005
00:37:31,839 --> 00:37:33,280
because those are the top three moving
1006
00:37:33,280 --> 00:37:35,520
averages used by traders around the
1007
00:37:35,520 --> 00:37:37,839
world so you might as well align with
1008
00:37:37,839 --> 00:37:38,800
them if there's gonna be a bunch of
1009
00:37:38,800 --> 00:37:40,800
traders taking longs off the 200 period
1010
00:37:40,800 --> 00:37:42,400
moving average
1011
00:37:42,400 --> 00:37:44,960
that's gonna push the price up right so
1012
00:37:44,960 --> 00:37:46,880
that's how i like to use moving averages
1013
00:37:46,880 --> 00:37:48,640
as areas of value again not by
1014
00:37:48,640 --> 00:37:50,800
themselves don't just buy because the
1015
00:37:50,800 --> 00:37:52,640
market hits a moving average i got to
1016
00:37:52,640 --> 00:37:54,640
combine that with things like structure
1017
00:37:54,640 --> 00:37:56,240
support and resistance and candlestick
1018
00:37:56,240 --> 00:37:58,800
patterns and other technical factors
1019
00:37:58,800 --> 00:38:00,960
trend and other indicators in order to
1020
00:38:00,960 --> 00:38:03,440
create that profitable edge the third
1021
00:38:03,440 --> 00:38:06,160
way to use a moving average in your
1022
00:38:06,160 --> 00:38:08,640
trading or the third most useful way
1023
00:38:08,640 --> 00:38:10,880
that i personally have found is to use a
1024
00:38:10,880 --> 00:38:12,880
moving average as a trailing stop the
1025
00:38:12,880 --> 00:38:15,359
way that would work is maybe you decided
1026
00:38:15,359 --> 00:38:18,079
you want to place a reversal trade after
1027
00:38:18,079 --> 00:38:21,119
you saw something like this the market
1028
00:38:21,119 --> 00:38:22,400
broke above
1029
00:38:22,400 --> 00:38:24,079
a previous resistance right our trend
1030
00:38:24,079 --> 00:38:25,680
continuation trade that we've talked
1031
00:38:25,680 --> 00:38:28,160
about we got our higher high higher high
1032
00:38:28,160 --> 00:38:30,400
higher low higher high now we're pulling
1033
00:38:30,400 --> 00:38:32,400
back into that resistance let's say you
1034
00:38:32,400 --> 00:38:35,200
place a trade there so your entry would
1035
00:38:35,200 --> 00:38:35,920
be
1036
00:38:35,920 --> 00:38:37,200
right here
1037
00:38:37,200 --> 00:38:39,440
boom you enter the market and at this
1038
00:38:39,440 --> 00:38:40,480
point
1039
00:38:40,480 --> 00:38:44,480
you have a stop loss one atr right below
1040
00:38:44,480 --> 00:38:46,320
the lows so let's say here's your stop
1041
00:38:46,320 --> 00:38:47,839
i'm gonna color that red
1042
00:38:47,839 --> 00:38:50,640
what you would do with the third way is
1043
00:38:50,640 --> 00:38:52,800
use the moving average as a trailing
1044
00:38:52,800 --> 00:38:54,720
stop so if you were just going for a
1045
00:38:54,720 --> 00:38:56,400
regular two to one you'd probably be out
1046
00:38:56,400 --> 00:38:59,040
of your trade right up here and that's
1047
00:38:59,040 --> 00:39:00,240
great you know you got your two to one
1048
00:39:00,240 --> 00:39:02,079
reward risk awesome but if you would
1049
00:39:02,079 --> 00:39:04,400
have used the 20 period moving average
1050
00:39:04,400 --> 00:39:06,720
as a trailing stop you could have got a
1051
00:39:06,720 --> 00:39:08,640
little bit more out of this trade taking
1052
00:39:08,640 --> 00:39:10,960
profits up here closer to a three or
1053
00:39:10,960 --> 00:39:13,359
four to one reward to risk ratio so in a
1054
00:39:13,359 --> 00:39:15,920
trending market using a moving average
1055
00:39:15,920 --> 00:39:18,079
as a trailing stop can be highly
1056
00:39:18,079 --> 00:39:20,560
beneficial to capture more of that trend
1057
00:39:20,560 --> 00:39:23,200
and essentially capture more targets out
1058
00:39:23,200 --> 00:39:25,119
of that particular
1059
00:39:25,119 --> 00:39:27,359
trade so those by far my favorite two
1060
00:39:27,359 --> 00:39:29,200
indicators the other indicator that we
1061
00:39:29,200 --> 00:39:31,520
are going to go over although i barely
1062
00:39:31,520 --> 00:39:34,000
use it is the rsi indicator because i do
1063
00:39:34,000 --> 00:39:36,000
think there's a place for it when trying
1064
00:39:36,000 --> 00:39:39,040
to trade reversals only
1065
00:39:39,040 --> 00:39:41,200
when combined with other factors like
1066
00:39:41,200 --> 00:39:43,680
structure higher time frame trend all of
1067
00:39:43,680 --> 00:39:45,119
things that we're going to go over later
1068
00:39:45,119 --> 00:39:46,320
in the video but we are going to discuss
1069
00:39:46,320 --> 00:39:49,040
the rsi indicator right now the rsi
1070
00:39:49,040 --> 00:39:51,359
indicator is considered by most traders
1071
00:39:51,359 --> 00:39:53,280
as a reversal indicator when in fact
1072
00:39:53,280 --> 00:39:55,760
it's actually a momentum indicator it
1073
00:39:55,760 --> 00:39:58,320
tells you when price has been moving in
1074
00:39:58,320 --> 00:40:01,119
a certain direction for a long period of
1075
00:40:01,119 --> 00:40:03,680
time this is why we don't just
1076
00:40:03,680 --> 00:40:05,280
sell when the market goes over ball and
1077
00:40:05,280 --> 00:40:07,040
buy when the market goes oversold let me
1078
00:40:07,040 --> 00:40:08,800
digress one more time
1079
00:40:08,800 --> 00:40:10,480
with the rsi indicator most traders
1080
00:40:10,480 --> 00:40:13,280
think that when the market uh price is
1081
00:40:13,280 --> 00:40:14,720
above 70
1082
00:40:14,720 --> 00:40:17,119
that that means it's time to sell in
1083
00:40:17,119 --> 00:40:18,800
order to look for that possible reversal
1084
00:40:18,800 --> 00:40:21,520
and when the price is below 30 on the
1085
00:40:21,520 --> 00:40:24,160
rsi that means it's time to buy for a
1086
00:40:24,160 --> 00:40:26,319
big reversal to the upside while this
1087
00:40:26,319 --> 00:40:28,720
may work out sometimes without
1088
00:40:28,720 --> 00:40:30,319
combining this with other technical
1089
00:40:30,319 --> 00:40:32,400
factors it is a losing strategy other
1090
00:40:32,400 --> 00:40:34,640
technical factors including major levels
1091
00:40:34,640 --> 00:40:36,800
of structure trend on higher time frames
1092
00:40:36,800 --> 00:40:39,119
things of that nature but as i said
1093
00:40:39,119 --> 00:40:41,200
there is a place for the rsi indicator
1094
00:40:41,200 --> 00:40:43,119
i'm going to go over this very briefly
1095
00:40:43,119 --> 00:40:44,560
because i know how long this video is
1096
00:40:44,560 --> 00:40:46,400
going to be already
1097
00:40:46,400 --> 00:40:48,400
the place i see
1098
00:40:48,400 --> 00:40:50,319
the rsi indicator is
1099
00:40:50,319 --> 00:40:53,920
if we're at a previous level of major
1100
00:40:53,920 --> 00:40:56,800
structure resistance when this market
1101
00:40:56,800 --> 00:40:57,760
goes
1102
00:40:57,760 --> 00:41:01,119
into an overbought scenario and if we
1103
00:41:01,119 --> 00:41:03,760
have something called rsi divergence
1104
00:41:03,760 --> 00:41:06,079
where price is making higher highs and
1105
00:41:06,079 --> 00:41:08,880
the rsi is making lower highs
1106
00:41:08,880 --> 00:41:11,200
then we get a candlestick pattern like
1107
00:41:11,200 --> 00:41:13,920
an engulfing pattern that
1108
00:41:13,920 --> 00:41:16,960
is an area where i believe the rsi is
1109
00:41:16,960 --> 00:41:19,119
extremely useful
1110
00:41:19,119 --> 00:41:22,079
outside of using this indicator as a
1111
00:41:22,079 --> 00:41:24,240
confluence with multiple other technical
1112
00:41:24,240 --> 00:41:26,800
factors i don't see it being as useful
1113
00:41:26,800 --> 00:41:28,960
as things like the atr indicator and the
1114
00:41:28,960 --> 00:41:30,560
moving average indicator but i did want
1115
00:41:30,560 --> 00:41:32,240
to throw this on the screen here and
1116
00:41:32,240 --> 00:41:34,000
throw it in with this video because i
1117
00:41:34,000 --> 00:41:35,680
think it can be useful when used
1118
00:41:35,680 --> 00:41:37,520
properly when used with divergence and
1119
00:41:37,520 --> 00:41:39,520
higher time frame structure levels and
1120
00:41:39,520 --> 00:41:41,119
trend but with that said that is going
1121
00:41:41,119 --> 00:41:43,359
to do it for indicators next up we're
1122
00:41:43,359 --> 00:41:45,920
moving on to how we actually enter the
1123
00:41:45,920 --> 00:41:47,599
market we're talking candlestick
1124
00:41:47,599 --> 00:41:49,760
patterns chart patterns breakout
1125
00:41:49,760 --> 00:41:51,839
patterns the real nitty gritty i'll see
1126
00:41:51,839 --> 00:41:54,400
you guys there
1127
00:41:55,920 --> 00:41:57,839
candlestick patterns are candlesticks
1128
00:41:57,839 --> 00:42:00,560
that form in a very specific way in
1129
00:42:00,560 --> 00:42:02,400
order to help us determine
1130
00:42:02,400 --> 00:42:05,119
what price is likely to do next you may
1131
00:42:05,119 --> 00:42:06,800
have heard of some of these before
1132
00:42:06,800 --> 00:42:08,480
candlestick patterns like the engulfing
1133
00:42:08,480 --> 00:42:10,880
pattern are very popular
1134
00:42:10,880 --> 00:42:12,800
hammer and shooting star candles are
1135
00:42:12,800 --> 00:42:15,440
extremely popular and there are tons of
1136
00:42:15,440 --> 00:42:17,280
candlestick patterns out there feel free
1137
00:42:17,280 --> 00:42:19,119
to go study all of them but it's
1138
00:42:19,119 --> 00:42:20,960
unnecessary because what i'm going to do
1139
00:42:20,960 --> 00:42:23,599
right now is give you my favorite three
1140
00:42:23,599 --> 00:42:25,839
candlestick patterns that i use in my
1141
00:42:25,839 --> 00:42:28,240
own personal trading but before we do
1142
00:42:28,240 --> 00:42:29,760
that let's talk about how we use these
1143
00:42:29,760 --> 00:42:31,280
candlestick patterns candlestick
1144
00:42:31,280 --> 00:42:33,280
patterns can be used to help us spot
1145
00:42:33,280 --> 00:42:35,359
reversals they can be used to help
1146
00:42:35,359 --> 00:42:37,599
provide clarity on market sentiment and
1147
00:42:37,599 --> 00:42:40,240
they can be used for entry reasons and
1148
00:42:40,240 --> 00:42:43,040
trend continuation and reversal trades
1149
00:42:43,040 --> 00:42:45,520
that's what i normally use them for and
1150
00:42:45,520 --> 00:42:47,760
now let me show you the three
1151
00:42:47,760 --> 00:42:50,160
candlesticks that i use most often the
1152
00:42:50,160 --> 00:42:53,119
first one is called the 382 candle or
1153
00:42:53,119 --> 00:42:55,280
38.2 percent candle and you're gonna
1154
00:42:55,280 --> 00:42:56,880
understand why in a second you may be
1155
00:42:56,880 --> 00:42:58,400
looking at these going
1156
00:42:58,400 --> 00:43:00,319
man steven that looks like a hammer or a
1157
00:43:00,319 --> 00:43:02,160
tweezer top and that looks a lot like a
1158
00:43:02,160 --> 00:43:04,000
shooting star why are you calling it a
1159
00:43:04,000 --> 00:43:07,280
38.2 candle because the name of the
1160
00:43:07,280 --> 00:43:10,000
candlestick pattern does not matter let
1161
00:43:10,000 --> 00:43:12,960
me explain the reason i call this a 38.2
1162
00:43:12,960 --> 00:43:15,200
candle is because the role that i have
1163
00:43:15,200 --> 00:43:18,720
for this pattern and what it shows us is
1164
00:43:18,720 --> 00:43:19,839
that
1165
00:43:19,839 --> 00:43:23,280
price or buyers the market itself
1166
00:43:23,280 --> 00:43:25,359
meaning all of their participants
1167
00:43:25,359 --> 00:43:28,240
have pushed this market all the way down
1168
00:43:28,240 --> 00:43:29,760
to the bottom of this wick remember when
1169
00:43:29,760 --> 00:43:31,680
we talked about candlestick charts at
1170
00:43:31,680 --> 00:43:33,440
the very beginning of the video
1171
00:43:33,440 --> 00:43:36,000
price moved all the way down to here but
1172
00:43:36,000 --> 00:43:37,920
what happened after price moved down
1173
00:43:37,920 --> 00:43:38,839
there
1174
00:43:38,839 --> 00:43:42,319
buyers came in and took control pushing
1175
00:43:42,319 --> 00:43:44,480
us all the way back up
1176
00:43:44,480 --> 00:43:47,920
near the highs this is a huge bullish
1177
00:43:47,920 --> 00:43:51,040
sign for me and a reason to expect
1178
00:43:51,040 --> 00:43:52,800
bullish pressure afterwards in any
1179
00:43:52,800 --> 00:43:54,319
particular market the reason it's called
1180
00:43:54,319 --> 00:43:57,280
a 38.2 candle is because in order to
1181
00:43:57,280 --> 00:44:00,000
objectively identify these candles the
1182
00:44:00,000 --> 00:44:02,160
only thing i do to make this extremely
1183
00:44:02,160 --> 00:44:04,000
simple and let me talk about the reason
1184
00:44:04,000 --> 00:44:06,880
i do this first if you ask people what a
1185
00:44:06,880 --> 00:44:08,880
hammer candlestick is or you show them a
1186
00:44:08,880 --> 00:44:10,640
chart i'll put a chart on the screen and
1187
00:44:10,640 --> 00:44:12,880
ask is this a hammer
1188
00:44:12,880 --> 00:44:14,079
or is
1189
00:44:14,079 --> 00:44:15,839
this a hammer candlestick you may get
1190
00:44:15,839 --> 00:44:17,920
two different answers what i'm trying to
1191
00:44:17,920 --> 00:44:19,680
say is that candlestick patterns unless
1192
00:44:19,680 --> 00:44:22,640
you have rules for them are subjective
1193
00:44:22,640 --> 00:44:24,560
and in order to have consistency in our
1194
00:44:24,560 --> 00:44:27,200
trading we have to be objective so an
1195
00:44:27,200 --> 00:44:30,240
objective rule i have for the 38.2
1196
00:44:30,240 --> 00:44:32,720
candle is that i pull
1197
00:44:32,720 --> 00:44:34,800
a fibonacci retracement from the swing
1198
00:44:34,800 --> 00:44:38,319
low of the candle itself to the high
1199
00:44:38,319 --> 00:44:40,400
of the candle itself as long as the
1200
00:44:40,400 --> 00:44:43,040
entire body of that candle is above the
1201
00:44:43,040 --> 00:44:46,720
38.2 retracement then i count this as a
1202
00:44:46,720 --> 00:44:49,599
valid 38.2 percent candle and i count
1203
00:44:49,599 --> 00:44:51,359
this as a candle that's showing me
1204
00:44:51,359 --> 00:44:53,760
buying pressure you guessed it it's the
1205
00:44:53,760 --> 00:44:56,079
exact opposite for
1206
00:44:56,079 --> 00:44:58,079
a bearish version of this pattern a
1207
00:44:58,079 --> 00:45:00,960
bearish version of the 38.2 candle what
1208
00:45:00,960 --> 00:45:02,400
do you think i'm gonna do to identify
1209
00:45:02,400 --> 00:45:04,720
this pattern in an objective way i'm
1210
00:45:04,720 --> 00:45:07,280
taking a fibonacci retracement from the
1211
00:45:07,280 --> 00:45:09,599
top of that candle the high
1212
00:45:09,599 --> 00:45:12,000
down to the low and as long as
1213
00:45:12,000 --> 00:45:14,960
the entire body of that candle
1214
00:45:14,960 --> 00:45:18,720
is below the 38.2 retracement then i
1215
00:45:18,720 --> 00:45:20,960
know that selling pressure is likely to
1216
00:45:20,960 --> 00:45:23,599
come into the market again the way we
1217
00:45:23,599 --> 00:45:26,319
use these types of candles is if this
1218
00:45:26,319 --> 00:45:28,640
was to occur at the top of an uptrend it
1219
00:45:28,640 --> 00:45:30,560
might be a sign of a reversal if this
1220
00:45:30,560 --> 00:45:33,520
was to occur in a downtrend on our
1221
00:45:33,520 --> 00:45:35,520
pullback it might be a sign that we're
1222
00:45:35,520 --> 00:45:36,800
about to continue in trend we're going
1223
00:45:36,800 --> 00:45:38,960
to talk about that on a live chart after
1224
00:45:38,960 --> 00:45:40,880
i go through the other two candlestick
1225
00:45:40,880 --> 00:45:44,240
patterns so next after the 38.2 candle
1226
00:45:44,240 --> 00:45:46,079
we have the engulfing candle this is a
1227
00:45:46,079 --> 00:45:47,599
candle you've probably heard of and you
1228
00:45:47,599 --> 00:45:49,760
may already know how to identify but in
1229
00:45:49,760 --> 00:45:52,880
the forex market the way i identify an
1230
00:45:52,880 --> 00:45:56,000
engulfing candle is a candle that has a
1231
00:45:56,000 --> 00:45:58,880
larger body than the previous candle and
1232
00:45:58,880 --> 00:46:01,280
that changes colors so for a bullish
1233
00:46:01,280 --> 00:46:03,440
engulfing pattern i need to see that the
1234
00:46:03,440 --> 00:46:05,359
previous candle was red that the next
1235
00:46:05,359 --> 00:46:07,040
candle is green and that the green
1236
00:46:07,040 --> 00:46:10,319
candle has a larger body
1237
00:46:10,319 --> 00:46:12,319
than the previous candle that is a
1238
00:46:12,319 --> 00:46:14,240
bullish engulfing candle for me we'll
1239
00:46:14,240 --> 00:46:16,240
take a look at a bearish engulfing on a
1240
00:46:16,240 --> 00:46:17,920
chart so i'm not going to have to do
1241
00:46:17,920 --> 00:46:19,520
that right here so
1242
00:46:19,520 --> 00:46:22,400
next up we have the close above and
1243
00:46:22,400 --> 00:46:24,480
close below candle again all these
1244
00:46:24,480 --> 00:46:26,560
candles are used in the same way they're
1245
00:46:26,560 --> 00:46:28,319
all either going to be used to help you
1246
00:46:28,319 --> 00:46:31,119
identify reversals market sentiment or
1247
00:46:31,119 --> 00:46:32,160
help you
1248
00:46:32,160 --> 00:46:34,560
enter on trend continuation trades here
1249
00:46:34,560 --> 00:46:36,079
we have close above and close below
1250
00:46:36,079 --> 00:46:38,800
candle pretty self-explanatory but a
1251
00:46:38,800 --> 00:46:41,200
close below candle would be a candle in
1252
00:46:41,200 --> 00:46:43,280
which the close
1253
00:46:43,280 --> 00:46:46,640
of that candle is below the low
1254
00:46:46,640 --> 00:46:49,680
of the previous candle as long as that
1255
00:46:49,680 --> 00:46:52,160
happens that to me is showing selling
1256
00:46:52,160 --> 00:46:54,640
pressure and the opposite would be true
1257
00:46:54,640 --> 00:46:55,920
in the bullish direction we would have
1258
00:46:55,920 --> 00:46:57,760
it close above again we'll take a look
1259
00:46:57,760 --> 00:46:59,599
at that down on the chart but right now
1260
00:46:59,599 --> 00:47:01,200
let's go take a look at a few live
1261
00:47:01,200 --> 00:47:04,720
examples of the 38.2 candle first so
1262
00:47:04,720 --> 00:47:07,040
here we have a good example of a 382
1263
00:47:07,040 --> 00:47:09,680
candle or 38.2 percent candle and what i
1264
00:47:09,680 --> 00:47:12,000
want to do is explain to you how all of
1265
00:47:12,000 --> 00:47:13,599
these things are already coming together
1266
00:47:13,599 --> 00:47:14,640
and we haven't even hit the end of the
1267
00:47:14,640 --> 00:47:16,400
video yet what have we learned about
1268
00:47:16,400 --> 00:47:20,480
trend trend is when the market is making
1269
00:47:20,480 --> 00:47:24,240
new higher lows and higher highs what
1270
00:47:24,240 --> 00:47:25,520
have we learned about indicators when
1271
00:47:25,520 --> 00:47:27,359
the market's above the 20 period moving
1272
00:47:27,359 --> 00:47:30,319
average we are in a highly volatile up
1273
00:47:30,319 --> 00:47:32,400
trend what have we learned about support
1274
00:47:32,400 --> 00:47:34,720
and resistance the previous level of
1275
00:47:34,720 --> 00:47:36,079
resistance
1276
00:47:36,079 --> 00:47:38,800
is likely to become support right
1277
00:47:38,800 --> 00:47:41,359
now with all of that in mind what did we
1278
00:47:41,359 --> 00:47:42,720
just learn
1279
00:47:42,720 --> 00:47:45,520
a specific candlestick formation called
1280
00:47:45,520 --> 00:47:47,359
the 38.2
1281
00:47:47,359 --> 00:47:49,440
candle look right here does this candle
1282
00:47:49,440 --> 00:47:51,440
have a long wick let's talk about the
1283
00:47:51,440 --> 00:47:53,200
psychology behind it really really
1284
00:47:53,200 --> 00:47:56,000
quickly the candle opened here
1285
00:47:56,000 --> 00:47:57,599
sellers pushed it all the way down to
1286
00:47:57,599 --> 00:47:59,760
the bottom of the wick but buyers took
1287
00:47:59,760 --> 00:48:01,920
back over as soon as they happened as
1288
00:48:01,920 --> 00:48:03,200
soon as that happened as soon as the
1289
00:48:03,200 --> 00:48:04,960
sellers said we're pushing this market
1290
00:48:04,960 --> 00:48:07,839
down buyer said hell nah we're pushing
1291
00:48:07,839 --> 00:48:10,720
it back up and they did we close up here
1292
00:48:10,720 --> 00:48:13,440
closer to the highs this happened while
1293
00:48:13,440 --> 00:48:15,119
in an uptrend and
1294
00:48:15,119 --> 00:48:18,240
at our area of value being this previous
1295
00:48:18,240 --> 00:48:20,400
resistance level now
1296
00:48:20,400 --> 00:48:22,640
let's make sure this is a 38.2 percent
1297
00:48:22,640 --> 00:48:24,559
candle we have to use a fibonacci
1298
00:48:24,559 --> 00:48:26,079
retracement we're pulling it from the
1299
00:48:26,079 --> 00:48:27,520
low of the candle
1300
00:48:27,520 --> 00:48:29,359
to the high of the candle
1301
00:48:29,359 --> 00:48:32,240
and once we do that is this candle the
1302
00:48:32,240 --> 00:48:36,079
entire body of it above the 38.2
1303
00:48:36,079 --> 00:48:39,760
retracement it is therefore objectively
1304
00:48:39,760 --> 00:48:41,440
we have a reason to enter this market
1305
00:48:41,440 --> 00:48:42,640
that's what i was talking about when i
1306
00:48:42,640 --> 00:48:47,200
said these can be used for entries into
1307
00:48:47,200 --> 00:48:49,680
a long-term trend so in this case we
1308
00:48:49,680 --> 00:48:51,440
have a long-term uptrend we have a
1309
00:48:51,440 --> 00:48:53,359
market at an area of value and we get
1310
00:48:53,359 --> 00:48:55,280
our specific entry reason showing us
1311
00:48:55,280 --> 00:48:56,960
buying pressure now again we're
1312
00:48:56,960 --> 00:48:59,040
combining everything so let's put on our
1313
00:48:59,040 --> 00:49:02,160
position tool what if we say okay one
1314
00:49:02,160 --> 00:49:04,480
atr how do we play stops with the
1315
00:49:04,480 --> 00:49:06,160
volatility of the market that we're
1316
00:49:06,160 --> 00:49:08,000
trading right now in the aussie canada
1317
00:49:08,000 --> 00:49:10,880
daily chart the atr or average true
1318
00:49:10,880 --> 00:49:14,240
range is 66. so let's go down to our
1319
00:49:14,240 --> 00:49:16,559
swing low to our swing low is right at
1320
00:49:16,559 --> 00:49:21,200
47 pips that plus 66 is 113 pips so we
1321
00:49:21,200 --> 00:49:23,760
have a 113 pip stop loss on this
1322
00:49:23,760 --> 00:49:26,640
specific trade and let's say we want to
1323
00:49:26,640 --> 00:49:30,480
use two times that atr as our target 66
1324
00:49:30,480 --> 00:49:35,359
times 2 is 132. so move that up to 132
1325
00:49:35,359 --> 00:49:38,319
and we now have our trade setup let's
1326
00:49:38,319 --> 00:49:40,880
click play and see what happened
1327
00:49:40,880 --> 00:49:42,800
boom hit targets no problem for about a
1328
00:49:42,800 --> 00:49:45,760
1.2 to 1 reward to risk ratio i wanted
1329
00:49:45,760 --> 00:49:47,599
to do that entire scenario just to show
1330
00:49:47,599 --> 00:49:49,599
you how everything is coming together if
1331
00:49:49,599 --> 00:49:51,119
you liked that
1332
00:49:51,119 --> 00:49:53,599
then make sure to go ahead and smash
1333
00:49:53,599 --> 00:49:54,720
that like button you've been watching
1334
00:49:54,720 --> 00:49:56,800
this bad boy for like 45 minutes now i
1335
00:49:56,800 --> 00:49:58,240
know you've gotten at least some value
1336
00:49:58,240 --> 00:50:00,319
out of it so go ahead and click that
1337
00:50:00,319 --> 00:50:01,680
like button for me go ahead and comment
1338
00:50:01,680 --> 00:50:02,720
as well if you're still here because
1339
00:50:02,720 --> 00:50:05,280
that is amazing all right so that is our
1340
00:50:05,280 --> 00:50:08,000
382 candlestick pattern let's talk about
1341
00:50:08,000 --> 00:50:10,319
how we can use it for reversals and just
1342
00:50:10,319 --> 00:50:12,559
to show you that it doesn't always work
1343
00:50:12,559 --> 00:50:14,400
i have no idea i've not looked at this
1344
00:50:14,400 --> 00:50:16,720
data yet this might work as a reversal
1345
00:50:16,720 --> 00:50:18,640
and it may not but right here what do we
1346
00:50:18,640 --> 00:50:20,160
have
1347
00:50:20,160 --> 00:50:23,280
we have a 382 candle at the top
1348
00:50:23,280 --> 00:50:25,359
of an uptrend if this market happened to
1349
00:50:25,359 --> 00:50:28,319
be overbought on the rsi check it out it
1350
00:50:28,319 --> 00:50:29,119
is
1351
00:50:29,119 --> 00:50:30,559
combining other technical factors
1352
00:50:30,559 --> 00:50:32,319
looking left for resistance we're not
1353
00:50:32,319 --> 00:50:33,920
quite at a level of resistance right now
1354
00:50:33,920 --> 00:50:36,160
but this would be an example of the 382
1355
00:50:36,160 --> 00:50:37,760
candle and why would it be an example of
1356
00:50:37,760 --> 00:50:39,359
that candle because if i pull a
1357
00:50:39,359 --> 00:50:41,760
fibonacci retracement from the top of
1358
00:50:41,760 --> 00:50:44,160
this candle down to the low of this
1359
00:50:44,160 --> 00:50:45,280
candle
1360
00:50:45,280 --> 00:50:47,680
is the entire body below the 38.2
1361
00:50:47,680 --> 00:50:49,680
retracement yes this is showing a
1362
00:50:49,680 --> 00:50:51,440
selling pressure in the same way we
1363
00:50:51,440 --> 00:50:53,440
would just set our stop loss one atr
1364
00:50:53,440 --> 00:50:56,000
above this candle here and then have a
1365
00:50:56,000 --> 00:50:57,520
target somewhere near these levels of
1366
00:50:57,520 --> 00:51:00,559
support may not work out or then again
1367
00:51:00,559 --> 00:51:02,720
if we had our targets down at this level
1368
00:51:02,720 --> 00:51:04,559
of support then it would have worked out
1369
00:51:04,559 --> 00:51:06,480
we would have hit those targets right
1370
00:51:06,480 --> 00:51:09,760
here so this is how we can use the 38.2
1371
00:51:09,760 --> 00:51:12,319
percent candle to help us with entries
1372
00:51:12,319 --> 00:51:13,119
on
1373
00:51:13,119 --> 00:51:15,520
trend continuation trades and to help us
1374
00:51:15,520 --> 00:51:18,079
identify possible reversals let's take a
1375
00:51:18,079 --> 00:51:20,240
look at a couple of live examples of the
1376
00:51:20,240 --> 00:51:22,480
engulfing candle as well as the clothes
1377
00:51:22,480 --> 00:51:24,800
above close below candle but essentially
1378
00:51:24,800 --> 00:51:26,800
they all have the same use they're all
1379
00:51:26,800 --> 00:51:27,839
going to be used either to spot
1380
00:51:27,839 --> 00:51:30,000
reversals or as possible entries and
1381
00:51:30,000 --> 00:51:32,000
trend continuation trades to ride the
1382
00:51:32,000 --> 00:51:34,160
trend up even further let's go ahead and
1383
00:51:34,160 --> 00:51:35,920
look at the engulfing candle on live
1384
00:51:35,920 --> 00:51:37,520
charts right now while we were on the
1385
00:51:37,520 --> 00:51:39,520
whiteboard we looked at a bullish
1386
00:51:39,520 --> 00:51:41,599
example of the engulfing candle so here
1387
00:51:41,599 --> 00:51:42,880
we're going to look at a bearish example
1388
00:51:42,880 --> 00:51:44,559
and again i want to i want you to see
1389
00:51:44,559 --> 00:51:45,920
the things that are coming together on
1390
00:51:45,920 --> 00:51:47,760
this trade it is a winning trade yes
1391
00:51:47,760 --> 00:51:50,240
it's cherry picked but it has a very
1392
00:51:50,240 --> 00:51:52,880
good merit behind it because of the fact
1393
00:51:52,880 --> 00:51:54,400
that let's do this one more time what
1394
00:51:54,400 --> 00:51:55,839
kind of trend are we in
1395
00:51:55,839 --> 00:51:56,800
right now
1396
00:51:56,800 --> 00:51:58,559
well according to the 20 period moving
1397
00:51:58,559 --> 00:52:00,480
average we're definitely in a downtrend
1398
00:52:00,480 --> 00:52:02,720
price is below it are we making new lows
1399
00:52:02,720 --> 00:52:04,880
and new lower highs below the 20 period
1400
00:52:04,880 --> 00:52:06,160
moving average yes we are here's our
1401
00:52:06,160 --> 00:52:08,400
last low new lower low here's our last
1402
00:52:08,400 --> 00:52:10,640
high lower high this could be our next
1403
00:52:10,640 --> 00:52:13,599
lower high we are at what
1404
00:52:13,599 --> 00:52:15,359
the 20 period moving average is that an
1405
00:52:15,359 --> 00:52:18,000
area of value or possible area of
1406
00:52:18,000 --> 00:52:21,040
resistance yes it is all of those coming
1407
00:52:21,040 --> 00:52:23,119
together and then
1408
00:52:23,119 --> 00:52:24,960
the entry pattern we can try to use in
1409
00:52:24,960 --> 00:52:27,520
trend continuation type trades is what
1410
00:52:27,520 --> 00:52:29,280
this engulfing candle as you can see
1411
00:52:29,280 --> 00:52:32,079
here an engulfing candle as i explained
1412
00:52:32,079 --> 00:52:34,400
earlier is just a candle in the forex
1413
00:52:34,400 --> 00:52:37,280
market at least whose body is larger
1414
00:52:37,280 --> 00:52:38,800
than the previous candle and i need a
1415
00:52:38,800 --> 00:52:41,280
color change green to red that's a color
1416
00:52:41,280 --> 00:52:43,280
change is the red body
1417
00:52:43,280 --> 00:52:44,960
larger than the green body it is
1418
00:52:44,960 --> 00:52:46,960
therefore we have a valid bearish
1419
00:52:46,960 --> 00:52:49,920
engulfing candle here for possible entry
1420
00:52:49,920 --> 00:52:52,160
into this trend continuation setup
1421
00:52:52,160 --> 00:52:54,559
pushing the market further down and
1422
00:52:54,559 --> 00:52:57,040
showing us selling pressure next up
1423
00:52:57,040 --> 00:52:58,559
we're gonna take a look at the example
1424
00:52:58,559 --> 00:53:00,880
of the clothes above candle let's take a
1425
00:53:00,880 --> 00:53:02,000
look at that now
1426
00:53:02,000 --> 00:53:03,920
here is a good example of a close below
1427
00:53:03,920 --> 00:53:06,559
candle this big red candle what happens
1428
00:53:06,559 --> 00:53:09,280
here we close below the low of the
1429
00:53:09,280 --> 00:53:12,720
previous candle and we do so the wear is
1430
00:53:12,720 --> 00:53:14,240
very important like i said you want to
1431
00:53:14,240 --> 00:53:16,800
do it in areas of value right we don't
1432
00:53:16,800 --> 00:53:18,800
want to just trade random clothes above
1433
00:53:18,800 --> 00:53:20,240
and close below candles that's not a
1434
00:53:20,240 --> 00:53:22,400
profitable strategy we have to combine a
1435
00:53:22,400 --> 00:53:24,800
number of technical factors in order to
1436
00:53:24,800 --> 00:53:27,040
create a profitable strategy so in this
1437
00:53:27,040 --> 00:53:29,440
case what we have is the top
1438
00:53:29,440 --> 00:53:31,040
of an uptrend this market's been heading
1439
00:53:31,040 --> 00:53:33,520
higher what you can't see yet we know
1440
00:53:33,520 --> 00:53:35,119
this is a valid close below right you
1441
00:53:35,119 --> 00:53:37,040
understand that i hope that a close
1442
00:53:37,040 --> 00:53:39,040
below is nothing more than a candle that
1443
00:53:39,040 --> 00:53:40,720
closes below the low of the previous
1444
00:53:40,720 --> 00:53:42,559
candle the opposite's true for a close
1445
00:53:42,559 --> 00:53:44,960
above but i want to show you how
1446
00:53:44,960 --> 00:53:46,400
everything comes together yet again
1447
00:53:46,400 --> 00:53:48,640
because this happening in the middle of
1448
00:53:48,640 --> 00:53:50,880
nowhere like it did right here is
1449
00:53:50,880 --> 00:53:53,040
irrelevant i'm not trading this just
1450
00:53:53,040 --> 00:53:55,200
because we have a close below candle no
1451
00:53:55,200 --> 00:53:58,720
i want to trade these in
1452
00:53:58,720 --> 00:54:02,160
areas of values such as previous
1453
00:54:02,160 --> 00:54:04,960
levels of resistance as you can see my
1454
00:54:04,960 --> 00:54:07,359
green or not green sorry my gray box
1455
00:54:07,359 --> 00:54:09,920
here is showing that this was a level of
1456
00:54:09,920 --> 00:54:11,359
previous resistance that pushed the
1457
00:54:11,359 --> 00:54:14,240
market around a ton now that we're back
1458
00:54:14,240 --> 00:54:17,040
to this level i have an area of value
1459
00:54:17,040 --> 00:54:18,960
this is another good example of how to
1460
00:54:18,960 --> 00:54:22,640
use the rsi indicator here we have
1461
00:54:22,640 --> 00:54:24,960
a overbought situation
1462
00:54:24,960 --> 00:54:26,960
and what do we have we have higher highs
1463
00:54:26,960 --> 00:54:29,599
on price but what's the rsi doing if you
1464
00:54:29,599 --> 00:54:31,359
remember from the indicators portion of
1465
00:54:31,359 --> 00:54:33,040
the lesson what we were talking about in
1466
00:54:33,040 --> 00:54:34,720
terms of divergence is higher highs on
1467
00:54:34,720 --> 00:54:37,359
price and lower highs on the
1468
00:54:37,359 --> 00:54:39,599
is that what we get here yes it is so
1469
00:54:39,599 --> 00:54:40,960
with all of these factors coming
1470
00:54:40,960 --> 00:54:42,640
together it's a pretty good opportunity
1471
00:54:42,640 --> 00:54:45,520
to try to use our close below candle as
1472
00:54:45,520 --> 00:54:48,240
an entry on this trade doing so would
1473
00:54:48,240 --> 00:54:50,559
look something like this
1474
00:54:50,559 --> 00:54:51,680
we have an entry at the close of that
1475
00:54:51,680 --> 00:54:55,839
candle the atr is 77 so we have 98 plus
1476
00:54:55,839 --> 00:54:58,480
77 we're going to go 177 to make this
1477
00:54:58,480 --> 00:55:03,520
easy math 177 for our stop loss
1478
00:55:03,520 --> 00:55:05,280
we're going to put a target down at the
1479
00:55:05,280 --> 00:55:08,000
previous level of support which is right
1480
00:55:08,000 --> 00:55:09,599
here
1481
00:55:09,599 --> 00:55:11,119
and we're going to click play to see
1482
00:55:11,119 --> 00:55:13,920
what happens here on this specific trade
1483
00:55:13,920 --> 00:55:16,000
as you can see the market pushes down
1484
00:55:16,000 --> 00:55:18,559
now here's a good reason why we use that
1485
00:55:18,559 --> 00:55:21,119
atr for our stop loss if we used a 10
1486
00:55:21,119 --> 00:55:22,160
pip stop
1487
00:55:22,160 --> 00:55:24,880
above our swing high do you see how
1488
00:55:24,880 --> 00:55:26,720
easily we would have been stopped out by
1489
00:55:26,720 --> 00:55:29,200
this wick instead we used the atr
1490
00:55:29,200 --> 00:55:31,440
indicator combining all of our good
1491
00:55:31,440 --> 00:55:34,000
technical factors to help us have a
1492
00:55:34,000 --> 00:55:37,119
positive trade here so with that said
1493
00:55:37,119 --> 00:55:38,079
that's going to do it for the
1494
00:55:38,079 --> 00:55:40,960
candlestick patterns portion and next up
1495
00:55:40,960 --> 00:55:42,720
something i like even more than
1496
00:55:42,720 --> 00:55:44,960
candlestick patterns and that is
1497
00:55:44,960 --> 00:55:46,640
chart patterns so stick around i'll show
1498
00:55:46,640 --> 00:55:48,799
you my favorites and how i use them in
1499
00:55:48,799 --> 00:55:51,200
the market to help you better understand
1500
00:55:51,200 --> 00:55:53,839
the entirety of technical analysis even
1501
00:55:53,839 --> 00:55:56,240
more so than you already do i'll see you
1502
00:55:56,240 --> 00:55:59,040
in just a second
1503
00:56:00,960 --> 00:56:02,799
unlike candlestick patterns that form
1504
00:56:02,799 --> 00:56:06,000
with between one to maybe a few candles
1505
00:56:06,000 --> 00:56:07,839
a chart pattern is going to form with
1506
00:56:07,839 --> 00:56:11,280
between 10 to maybe 50 candles and what
1507
00:56:11,280 --> 00:56:13,760
they are are identifiable patterns that
1508
00:56:13,760 --> 00:56:15,920
like candlestick patterns can give us an
1509
00:56:15,920 --> 00:56:18,480
indication of possible reversals can
1510
00:56:18,480 --> 00:56:20,000
give us an indication of market
1511
00:56:20,000 --> 00:56:23,040
sentiment and can help us identify
1512
00:56:23,040 --> 00:56:25,680
possible entries in the market
1513
00:56:25,680 --> 00:56:28,079
chart patterns are by far my favorite
1514
00:56:28,079 --> 00:56:31,440
way to enter trades and luckily
1515
00:56:31,440 --> 00:56:33,359
even though there are hundreds of chart
1516
00:56:33,359 --> 00:56:34,960
patterns and feel free to go study as
1517
00:56:34,960 --> 00:56:36,559
many of them as you would like to find
1518
00:56:36,559 --> 00:56:38,319
the ones that fit your trading style
1519
00:56:38,319 --> 00:56:40,400
best i personally
1520
00:56:40,400 --> 00:56:43,520
use one type of chart pattern more often
1521
00:56:43,520 --> 00:56:45,440
than any others and for the most part
1522
00:56:45,440 --> 00:56:47,680
only utilize this one chart pattern in
1523
00:56:47,680 --> 00:56:49,839
my own trading and they are double
1524
00:56:49,839 --> 00:56:51,839
bottoms and double tops i said they're
1525
00:56:51,839 --> 00:56:53,359
one i know that's two but they're
1526
00:56:53,359 --> 00:56:55,599
essentially the same thing just flipped
1527
00:56:55,599 --> 00:56:57,599
upside down so before we go through the
1528
00:56:57,599 --> 00:56:59,359
way i utilize double bottoms and double
1529
00:56:59,359 --> 00:57:01,680
tops in my trading we need objective
1530
00:57:01,680 --> 00:57:03,119
rules for this the same way we had
1531
00:57:03,119 --> 00:57:05,200
objective rules for candlestick patterns
1532
00:57:05,200 --> 00:57:07,520
we have to have objective rules for
1533
00:57:07,520 --> 00:57:09,359
chart patterns as well so these double
1534
00:57:09,359 --> 00:57:11,760
tops and double bottoms are going to
1535
00:57:11,760 --> 00:57:13,040
have objective rules and that's what
1536
00:57:13,040 --> 00:57:14,720
we're gonna discuss right now is the
1537
00:57:14,720 --> 00:57:16,880
objective rules for these patterns for a
1538
00:57:16,880 --> 00:57:18,640
double bottom that's what we're looking
1539
00:57:18,640 --> 00:57:21,359
at right now here on the euro yen for
1540
00:57:21,359 --> 00:57:23,440
this pattern what i'm looking for and
1541
00:57:23,440 --> 00:57:25,119
the way it looks on a chart sorry i
1542
00:57:25,119 --> 00:57:26,480
didn't do that before the way it looks
1543
00:57:26,480 --> 00:57:28,880
on a chart is a market that comes down
1544
00:57:28,880 --> 00:57:30,960
creates a level of support
1545
00:57:30,960 --> 00:57:33,920
then bounces up to a level of resistance
1546
00:57:33,920 --> 00:57:36,799
but instead of continuing down in this
1547
00:57:36,799 --> 00:57:39,200
downtrend we come down we re-test this
1548
00:57:39,200 --> 00:57:40,400
level of support
1549
00:57:40,400 --> 00:57:43,119
and we're supported yet again so much so
1550
00:57:43,119 --> 00:57:45,839
that we push up enough to
1551
00:57:45,839 --> 00:57:48,559
break and close above what is called the
1552
00:57:48,559 --> 00:57:51,040
neckline so this is bottom number one of
1553
00:57:51,040 --> 00:57:52,880
a double bottom bottom number two of a
1554
00:57:52,880 --> 00:57:55,520
double bottom this is referred to as the
1555
00:57:55,520 --> 00:57:57,839
neckline and that is the
1556
00:57:57,839 --> 00:58:00,319
initial pullback from the first bottom
1557
00:58:00,319 --> 00:58:02,079
that we need to break in order to
1558
00:58:02,079 --> 00:58:05,359
classify this as an actual double bottom
1559
00:58:05,359 --> 00:58:08,000
so a way that most traders enter this is
1560
00:58:08,000 --> 00:58:09,280
either by
1561
00:58:09,280 --> 00:58:10,960
entering exactly
1562
00:58:10,960 --> 00:58:14,240
as the market breaks that neckline or
1563
00:58:14,240 --> 00:58:15,680
one of my favorite ways to enter and the
1564
00:58:15,680 --> 00:58:16,559
way we're going to talk about and
1565
00:58:16,559 --> 00:58:19,520
discuss entering today is waiting for
1566
00:58:19,520 --> 00:58:21,440
the market to break and close above that
1567
00:58:21,440 --> 00:58:24,079
neckline and then getting a pull back
1568
00:58:24,079 --> 00:58:26,160
into that neckline the reason i trade
1569
00:58:26,160 --> 00:58:27,760
double bottoms like this is because i
1570
00:58:27,760 --> 00:58:29,920
can get smaller stops therefore having a
1571
00:58:29,920 --> 00:58:32,240
larger reward to risk ratio on these
1572
00:58:32,240 --> 00:58:34,880
types of trades so that is how we spot
1573
00:58:34,880 --> 00:58:37,200
double bottoms let's go over how we spot
1574
00:58:37,200 --> 00:58:39,440
double tops first and then i'm gonna
1575
00:58:39,440 --> 00:58:41,359
talk about how i actually use these
1576
00:58:41,359 --> 00:58:44,000
patterns to consistently make badass
1577
00:58:44,000 --> 00:58:46,319
trades in my own trading let's check out
1578
00:58:46,319 --> 00:58:48,720
a double top though so a double top
1579
00:58:48,720 --> 00:58:51,280
is going to be when the market pushes up
1580
00:58:51,280 --> 00:58:54,000
to a level of resistance
1581
00:58:54,000 --> 00:58:56,640
then pushes down in our initial pullback
1582
00:58:56,640 --> 00:58:58,880
but instead of continuing this uptrend
1583
00:58:58,880 --> 00:59:00,720
we now test that level of resistance
1584
00:59:00,720 --> 00:59:03,680
once more and find resistance yet again
1585
00:59:03,680 --> 00:59:05,359
the market then
1586
00:59:05,359 --> 00:59:06,720
breaks through
1587
00:59:06,720 --> 00:59:09,440
the neckline so on a double top we have
1588
00:59:09,440 --> 00:59:11,839
top number one right here we have top
1589
00:59:11,839 --> 00:59:14,720
number two right here and the support
1590
00:59:14,720 --> 00:59:16,960
level that was created after top number
1591
00:59:16,960 --> 00:59:20,640
one is known as our neck line we need
1592
00:59:20,640 --> 00:59:23,200
that neckline to break to validate that
1593
00:59:23,200 --> 00:59:25,119
this is actually a double top and the
1594
00:59:25,119 --> 00:59:26,480
way i said we're going to be trading
1595
00:59:26,480 --> 00:59:28,799
these today is by waiting on a pullback
1596
00:59:28,799 --> 00:59:31,359
after that validation after that break
1597
00:59:31,359 --> 00:59:33,040
we want to see a pull back
1598
00:59:33,040 --> 00:59:34,799
into
1599
00:59:34,799 --> 00:59:36,960
our level of support and that's where
1600
00:59:36,960 --> 00:59:38,480
we're going to be placing possible
1601
00:59:38,480 --> 00:59:40,400
trades and looking for the continuation
1602
00:59:40,400 --> 00:59:42,559
down now before we get into how i use it
1603
00:59:42,559 --> 00:59:43,839
i know i said we're going to right after
1604
00:59:43,839 --> 00:59:45,119
this i want to talk about those
1605
00:59:45,119 --> 00:59:47,520
objective rules so the objective rules i
1606
00:59:47,520 --> 00:59:49,280
have for a double bottom let's actually
1607
00:59:49,280 --> 00:59:50,319
start there
1608
00:59:50,319 --> 00:59:51,680
is
1609
00:59:51,680 --> 00:59:53,760
i need to see
1610
00:59:53,760 --> 00:59:55,280
the first bottom
1611
00:59:55,280 --> 00:59:58,640
and the pullback at the point that i see
1612
00:59:58,640 --> 01:00:00,799
this first bottom
1613
01:00:00,799 --> 01:00:04,480
and a pullback what i do is place a box
1614
01:00:04,480 --> 01:00:05,599
my box
1615
01:00:05,599 --> 01:00:08,480
is going to be let me make this way way
1616
01:00:08,480 --> 01:00:10,799
more easy hold on here we go okay so at
1617
01:00:10,799 --> 01:00:12,240
this point it doesn't look like a double
1618
01:00:12,240 --> 01:00:13,839
bottom right but i need an objective
1619
01:00:13,839 --> 01:00:15,119
rule for how i'm going to enter a double
1620
01:00:15,119 --> 01:00:16,559
bottom so what i do
1621
01:00:16,559 --> 01:00:18,160
at this point whenever i see a bounce
1622
01:00:18,160 --> 01:00:20,720
like this is i place a box
1623
01:00:20,720 --> 01:00:21,760
from
1624
01:00:21,760 --> 01:00:24,640
the lowest bodies of this first low to
1625
01:00:24,640 --> 01:00:27,680
the lowest low of this first low that is
1626
01:00:27,680 --> 01:00:29,599
what i call my termination point what i
1627
01:00:29,599 --> 01:00:32,400
want to see is the market re-test this
1628
01:00:32,400 --> 01:00:33,520
point
1629
01:00:33,520 --> 01:00:36,720
a candle can close inside of this area
1630
01:00:36,720 --> 01:00:39,440
a wick can go past this area we could
1631
01:00:39,440 --> 01:00:40,319
see
1632
01:00:40,319 --> 01:00:43,040
nothing but the wick of a candle touch
1633
01:00:43,040 --> 01:00:45,839
this area all of that i would consider a
1634
01:00:45,839 --> 01:00:47,920
valid double bottom what i would not
1635
01:00:47,920 --> 01:00:50,240
consider a valid double bottom is if we
1636
01:00:50,240 --> 01:00:53,440
get a candle but the wick doesn't touch
1637
01:00:53,440 --> 01:00:56,640
my area or if we get a pullback and we
1638
01:00:56,640 --> 01:00:58,799
see a candle that closes all the way
1639
01:00:58,799 --> 01:01:01,920
below my zone those two situations are
1640
01:01:01,920 --> 01:01:04,640
no longer a valid double bottom for me
1641
01:01:04,640 --> 01:01:06,480
so those are my objective rules for a
1642
01:01:06,480 --> 01:01:08,799
double bottom we'll click play here and
1643
01:01:08,799 --> 01:01:10,480
see what the market does as you can see
1644
01:01:10,480 --> 01:01:12,079
we've now entered into my termination
1645
01:01:12,079 --> 01:01:13,920
zone we have not closed below it
1646
01:01:13,920 --> 01:01:16,160
therefore we have a valid double bottom
1647
01:01:16,160 --> 01:01:19,440
so far still is this valid yes
1648
01:01:19,440 --> 01:01:21,359
no candles closed below my zone
1649
01:01:21,359 --> 01:01:24,480
therefore i'm still in considering this
1650
01:01:24,480 --> 01:01:26,400
a valid double bottom the next thing i
1651
01:01:26,400 --> 01:01:29,760
need to see is a break of this neckline
1652
01:01:29,760 --> 01:01:32,319
once i see that like we do right there
1653
01:01:32,319 --> 01:01:33,760
i'm then waiting
1654
01:01:33,760 --> 01:01:36,319
for this market to pull back to that
1655
01:01:36,319 --> 01:01:39,680
neckline to place my possible entry once
1656
01:01:39,680 --> 01:01:41,280
we do that
1657
01:01:41,280 --> 01:01:43,040
and pull back to the neckline i want to
1658
01:01:43,040 --> 01:01:45,119
see buying pressure for me buying
1659
01:01:45,119 --> 01:01:47,440
pressure is nothing more
1660
01:01:47,440 --> 01:01:49,280
than a green candle
1661
01:01:49,280 --> 01:01:50,960
once i see buying pressure here's i'm
1662
01:01:50,960 --> 01:01:52,960
just explaining to you exactly how i
1663
01:01:52,960 --> 01:01:54,559
trade these double bottoms or exactly
1664
01:01:54,559 --> 01:01:56,720
how a lot of people trade them i trade
1665
01:01:56,720 --> 01:01:57,760
them slightly differently but for the
1666
01:01:57,760 --> 01:01:59,280
purpose of this video this is what we're
1667
01:01:59,280 --> 01:02:00,640
going to talk about so
1668
01:02:00,640 --> 01:02:02,240
i would place an entry there we have a
1669
01:02:02,240 --> 01:02:03,599
17 pip
1670
01:02:03,599 --> 01:02:08,000
atr right now so 17 plus 30 is 47
1671
01:02:08,000 --> 01:02:11,280
47 pips and i want to target my next
1672
01:02:11,280 --> 01:02:13,280
level of resistance which is right up
1673
01:02:13,280 --> 01:02:16,480
here in this area so at this point we
1674
01:02:16,480 --> 01:02:18,400
have our trade setup we've had buying
1675
01:02:18,400 --> 01:02:20,799
pressure after a double bottom has been
1676
01:02:20,799 --> 01:02:23,119
confirmed by the breakout and a pullback
1677
01:02:23,119 --> 01:02:25,440
to the neckline plus buying pressure
1678
01:02:25,440 --> 01:02:27,359
okay cool we're in the trade let's see
1679
01:02:27,359 --> 01:02:29,839
what happens
1680
01:02:30,799 --> 01:02:34,079
eventually pushing up down up down this
1681
01:02:34,079 --> 01:02:35,680
is the reality of trading guys you will
1682
01:02:35,680 --> 01:02:37,359
be
1683
01:02:37,359 --> 01:02:39,599
tortured emotionally during situations
1684
01:02:39,599 --> 01:02:41,119
like this but it's just what happens
1685
01:02:41,119 --> 01:02:43,359
sometimes while we're trading and there
1686
01:02:43,359 --> 01:02:44,319
we go
1687
01:02:44,319 --> 01:02:46,079
finally hitting
1688
01:02:46,079 --> 01:02:47,839
targets you have to have emotional
1689
01:02:47,839 --> 01:02:49,440
fortitude that's something unfortunately
1690
01:02:49,440 --> 01:02:50,559
we're not gonna have time to discuss in
1691
01:02:50,559 --> 01:02:52,079
this video because it is going to be
1692
01:02:52,079 --> 01:02:53,839
well over an hour long i already know
1693
01:02:53,839 --> 01:02:54,960
that but
1694
01:02:54,960 --> 01:02:56,720
that is how i would trade the double
1695
01:02:56,720 --> 01:02:59,039
bottom the double top would be the exact
1696
01:02:59,039 --> 01:03:00,720
opposite of that we'll go over that
1697
01:03:00,720 --> 01:03:01,920
really quickly you should have a pretty
1698
01:03:01,920 --> 01:03:03,599
good idea by now but here on the double
1699
01:03:03,599 --> 01:03:06,640
top the only difference is i am putting
1700
01:03:06,640 --> 01:03:07,839
a box
1701
01:03:07,839 --> 01:03:09,359
let's actually does it sound like i'm
1702
01:03:09,359 --> 01:03:10,640
saying pudding
1703
01:03:10,640 --> 01:03:13,200
it does to me let's put a
1704
01:03:13,200 --> 01:03:15,359
box right there so now what i'm waiting
1705
01:03:15,359 --> 01:03:17,440
for for a double top is the market to
1706
01:03:17,440 --> 01:03:19,440
push up into an area of resistance and
1707
01:03:19,440 --> 01:03:21,200
have a pullback once i have that
1708
01:03:21,200 --> 01:03:24,000
pullback i'm placing a box from the
1709
01:03:24,000 --> 01:03:27,599
highest bodies of the first top to the
1710
01:03:27,599 --> 01:03:30,079
highest wick of the first top this is
1711
01:03:30,079 --> 01:03:32,079
what i call my terminations on i want to
1712
01:03:32,079 --> 01:03:34,400
see a candle that at least touches that
1713
01:03:34,400 --> 01:03:36,960
zone but what i cannot see is a candle
1714
01:03:36,960 --> 01:03:39,760
that closes above this zone a candle can
1715
01:03:39,760 --> 01:03:42,160
close inside of the zone a wick can go
1716
01:03:42,160 --> 01:03:43,680
past the zone the only thing i cannot
1717
01:03:43,680 --> 01:03:45,520
see is either a candle not touching it
1718
01:03:45,520 --> 01:03:47,920
at all or a candle closing above it so
1719
01:03:47,920 --> 01:03:49,359
with that said click play you already
1720
01:03:49,359 --> 01:03:51,119
know what this turns out like yes we
1721
01:03:51,119 --> 01:03:52,799
have a valid double top and yes we broke
1722
01:03:52,799 --> 01:03:54,799
the neckline the way i would trade this
1723
01:03:54,799 --> 01:03:57,599
is by waiting on selling pressure at the
1724
01:03:57,599 --> 01:04:00,319
neckline as the market pulls back up
1725
01:04:00,319 --> 01:04:02,000
clicking play yet again
1726
01:04:02,000 --> 01:04:03,280
selling pressure would be this red
1727
01:04:03,280 --> 01:04:04,240
candle
1728
01:04:04,240 --> 01:04:05,839
stop loss at that point would only need
1729
01:04:05,839 --> 01:04:07,920
to go above our swing high and then we
1730
01:04:07,920 --> 01:04:09,599
could target whatever we needed to
1731
01:04:09,599 --> 01:04:11,359
pushing lower
1732
01:04:11,359 --> 01:04:14,000
and that my friends is how i use the
1733
01:04:14,000 --> 01:04:16,720
double top and double bottom strategy so
1734
01:04:16,720 --> 01:04:17,520
now
1735
01:04:17,520 --> 01:04:19,520
you have the rules based approach i take
1736
01:04:19,520 --> 01:04:21,839
to spot these patterns the way i enter
1737
01:04:21,839 --> 01:04:23,200
them is with buying pressure at the
1738
01:04:23,200 --> 01:04:25,599
neckline after the break
1739
01:04:25,599 --> 01:04:26,960
the other thing you need to know about
1740
01:04:26,960 --> 01:04:28,319
these patterns is they work best
1741
01:04:28,319 --> 01:04:29,760
whenever you're aligning yourself with
1742
01:04:29,760 --> 01:04:32,400
higher time frame trends so let's say
1743
01:04:32,400 --> 01:04:34,640
you're trading these patterns on an
1744
01:04:34,640 --> 01:04:36,799
hourly chart if you're trading a double
1745
01:04:36,799 --> 01:04:38,319
bottom on the hourly chart and what i
1746
01:04:38,319 --> 01:04:39,839
mean by that is you actually see the
1747
01:04:39,839 --> 01:04:42,559
double bottom itself on an hourly chart
1748
01:04:42,559 --> 01:04:44,480
you want to make sure that the daily
1749
01:04:44,480 --> 01:04:46,960
chart is in an uptrend so that way you
1750
01:04:46,960 --> 01:04:49,520
are aligned with a daily chart uptrend
1751
01:04:49,520 --> 01:04:51,680
while trading a double bottom on a one
1752
01:04:51,680 --> 01:04:54,559
hour chart the opposite is true for a
1753
01:04:54,559 --> 01:04:56,559
downtrend and a double top if you're
1754
01:04:56,559 --> 01:04:58,400
trading a double top on let's say the
1755
01:04:58,400 --> 01:05:00,880
one hour chart you want to make sure
1756
01:05:00,880 --> 01:05:03,119
that you are aligned with the daily
1757
01:05:03,119 --> 01:05:04,400
chart trend you want to make sure the
1758
01:05:04,400 --> 01:05:06,799
daily chart is actually in a downtrend
1759
01:05:06,799 --> 01:05:09,200
while you're trading that double top on
1760
01:05:09,200 --> 01:05:10,960
a lower time frame this is going to add
1761
01:05:10,960 --> 01:05:13,200
an amazing amount of accuracy to your
1762
01:05:13,200 --> 01:05:15,280
double top and double bottoms trade
1763
01:05:15,280 --> 01:05:16,960
double bottom trades it'll also add
1764
01:05:16,960 --> 01:05:18,799
accuracy to any other chart patterns
1765
01:05:18,799 --> 01:05:20,799
that you decide you want to add to your
1766
01:05:20,799 --> 01:05:22,720
trading arsenal
1767
01:05:22,720 --> 01:05:24,240
so that's gonna do it for the chart
1768
01:05:24,240 --> 01:05:27,520
patterns portion of this lesson next up
1769
01:05:27,520 --> 01:05:29,520
we got breakout patterns so we're gonna
1770
01:05:29,520 --> 01:05:30,960
go ahead take a look at some breakout
1771
01:05:30,960 --> 01:05:32,240
patterns and how i like to use them in
1772
01:05:32,240 --> 01:05:34,880
my own trading to make the best trading
1773
01:05:34,880 --> 01:05:36,400
decisions possible
1774
01:05:36,400 --> 01:05:39,119
i'll see you there
1775
01:05:40,960 --> 01:05:42,720
breakout patterns are when the market
1776
01:05:42,720 --> 01:05:45,599
goes from a low period of volatility to
1777
01:05:45,599 --> 01:05:47,760
a much higher period of volatility we
1778
01:05:47,760 --> 01:05:50,079
see that a lot on uptrends and
1779
01:05:50,079 --> 01:05:51,920
downtrends what we see is impulsive
1780
01:05:51,920 --> 01:05:54,240
moves the market makes a large move to
1781
01:05:54,240 --> 01:05:55,520
the upside and then we see a small
1782
01:05:55,520 --> 01:05:57,760
period of consolidation before the next
1783
01:05:57,760 --> 01:05:59,839
large move to the upside we call these
1784
01:05:59,839 --> 01:06:00,960
flag patterns we're going to talk about
1785
01:06:00,960 --> 01:06:03,200
those in just a second we also see this
1786
01:06:03,200 --> 01:06:06,319
in the form of what i trade and call and
1787
01:06:06,319 --> 01:06:07,839
what is called i guess you could say
1788
01:06:07,839 --> 01:06:09,760
ascending and descending wedges what
1789
01:06:09,760 --> 01:06:12,160
this means an ascending wedge is when
1790
01:06:12,160 --> 01:06:14,240
price has a level of resistance that it
1791
01:06:14,240 --> 01:06:17,440
cannot get above but as it's testing
1792
01:06:17,440 --> 01:06:19,920
that level of resistance the support
1793
01:06:19,920 --> 01:06:22,079
level is rising so that means that
1794
01:06:22,079 --> 01:06:24,480
buyers are coming in sooner and sooner
1795
01:06:24,480 --> 01:06:26,240
at higher and higher prices until
1796
01:06:26,240 --> 01:06:27,760
eventually that pattern breaks out to
1797
01:06:27,760 --> 01:06:29,920
the upside and a descending wedge is the
1798
01:06:29,920 --> 01:06:31,680
opposite we have a level of support we
1799
01:06:31,680 --> 01:06:34,559
have lower highs coming in showing that
1800
01:06:34,559 --> 01:06:36,400
sellers are stepping in sooner and
1801
01:06:36,400 --> 01:06:38,559
sooner at lower and lower prices and
1802
01:06:38,559 --> 01:06:39,839
eventually
1803
01:06:39,839 --> 01:06:42,799
that breakout level gives way to what we
1804
01:06:42,799 --> 01:06:45,200
call an ascending and descending wedge
1805
01:06:45,200 --> 01:06:46,960
breakout pattern those are the two
1806
01:06:46,960 --> 01:06:48,799
breakout patterns i personally use the
1807
01:06:48,799 --> 01:06:50,640
most there are many more breakout
1808
01:06:50,640 --> 01:06:52,240
patterns that you are free like
1809
01:06:52,240 --> 01:06:53,920
everything else in this video to go
1810
01:06:53,920 --> 01:06:55,680
study on your own but i want to talk
1811
01:06:55,680 --> 01:06:56,880
about the ones i'm actually familiar
1812
01:06:56,880 --> 01:06:58,880
with and the ones that i personally use
1813
01:06:58,880 --> 01:07:01,119
so let's take a look first off
1814
01:07:01,119 --> 01:07:03,280
at flag patterns let's talk first how do
1815
01:07:03,280 --> 01:07:04,880
we use flag patterns we now know what
1816
01:07:04,880 --> 01:07:07,520
flag patterns are how do you use them
1817
01:07:07,520 --> 01:07:10,640
well i use them to capitalize on
1818
01:07:10,640 --> 01:07:12,720
volatile trends what did we talk about
1819
01:07:12,720 --> 01:07:15,039
earlier a volatile trend
1820
01:07:15,039 --> 01:07:17,520
oftentimes stays above the 20-period
1821
01:07:17,520 --> 01:07:18,720
moving average as you can see on the
1822
01:07:18,720 --> 01:07:20,960
chart here we have price staying above
1823
01:07:20,960 --> 01:07:23,200
the 20-period moving average so the way
1824
01:07:23,200 --> 01:07:24,799
i like to use
1825
01:07:24,799 --> 01:07:27,440
a flag pattern is if we are staying
1826
01:07:27,440 --> 01:07:29,760
above the 20-period moving average and
1827
01:07:29,760 --> 01:07:32,079
we've just had an impulsive move to the
1828
01:07:32,079 --> 01:07:35,119
upside then i want to draw out a flag
1829
01:07:35,119 --> 01:07:38,400
pattern on my period of consolidation
1830
01:07:38,400 --> 01:07:40,240
after that period of consolidation we
1831
01:07:40,240 --> 01:07:42,720
get what is known as a breakout candle
1832
01:07:42,720 --> 01:07:44,559
this breakout candle breaks the top
1833
01:07:44,559 --> 01:07:46,240
trend line of that period of
1834
01:07:46,240 --> 01:07:47,839
consolidation and this is when most
1835
01:07:47,839 --> 01:07:50,720
traders decide to enter on a flag
1836
01:07:50,720 --> 01:07:52,160
pattern trade i'm going to give you some
1837
01:07:52,160 --> 01:07:53,920
specific rules in just a second but
1838
01:07:53,920 --> 01:07:55,920
let's take a look at one more example we
1839
01:07:55,920 --> 01:07:57,839
have another situation here where the
1840
01:07:57,839 --> 01:07:59,599
market's continuing in trend we make an
1841
01:07:59,599 --> 01:08:01,440
impulsive move that breaks above
1842
01:08:01,440 --> 01:08:03,920
previous resistance we then see this
1843
01:08:03,920 --> 01:08:07,520
market have a period of consolidation
1844
01:08:07,520 --> 01:08:10,160
this pullback that as you can see looks
1845
01:08:10,160 --> 01:08:12,559
like a flag right we have the poll which
1846
01:08:12,559 --> 01:08:14,720
is normally the amount of price the
1847
01:08:14,720 --> 01:08:16,319
impulsive leg before the period of
1848
01:08:16,319 --> 01:08:18,640
consolidation we have a small period of
1849
01:08:18,640 --> 01:08:20,880
consolidation then we have our breakout
1850
01:08:20,880 --> 01:08:23,600
candle and the market continues in that
1851
01:08:23,600 --> 01:08:25,839
uptrend this happens time and time again
1852
01:08:25,839 --> 01:08:27,600
in volatile trends and that's how we can
1853
01:08:27,600 --> 01:08:30,399
take advantage of flag patterns and
1854
01:08:30,399 --> 01:08:32,319
volatile trends now
1855
01:08:32,319 --> 01:08:34,399
just as with everything in our trading
1856
01:08:34,399 --> 01:08:35,839
we need to have some objective rules
1857
01:08:35,839 --> 01:08:38,880
here so for me one of the best objective
1858
01:08:38,880 --> 01:08:41,120
rules i have found when trading flag
1859
01:08:41,120 --> 01:08:44,000
patterns is that i want to only trade
1860
01:08:44,000 --> 01:08:45,359
these patterns
1861
01:08:45,359 --> 01:08:46,719
when they happen
1862
01:08:46,719 --> 01:08:48,319
above
1863
01:08:48,319 --> 01:08:49,839
or near
1864
01:08:49,839 --> 01:08:52,399
the 20 period moving average that's the
1865
01:08:52,399 --> 01:08:54,960
only time i can actually place trades
1866
01:08:54,960 --> 01:08:56,960
based on flag patterns because the 20
1867
01:08:56,960 --> 01:08:59,679
period moving average acts as my filter
1868
01:08:59,679 --> 01:09:01,679
for highly volatile trends and i only
1869
01:09:01,679 --> 01:09:03,839
want to take flag pattern breakout
1870
01:09:03,839 --> 01:09:06,319
trades if the trend is highly volatile
1871
01:09:06,319 --> 01:09:08,640
because that's my best chances of having
1872
01:09:08,640 --> 01:09:11,920
a move higher and for stops and targets
1873
01:09:11,920 --> 01:09:13,279
we'll go and discuss those you should
1874
01:09:13,279 --> 01:09:14,399
have a pretty good idea where do you
1875
01:09:14,399 --> 01:09:16,080
think i would put stops and targets if
1876
01:09:16,080 --> 01:09:18,960
my entry candle is this breakout candle
1877
01:09:18,960 --> 01:09:20,479
right here what do you think i would do
1878
01:09:20,479 --> 01:09:21,839
for stops
1879
01:09:21,839 --> 01:09:24,479
i would have my stop loss below the
1880
01:09:24,479 --> 01:09:27,040
previous low by what
1881
01:09:27,040 --> 01:09:29,279
one atr as we discussed earlier so let's
1882
01:09:29,279 --> 01:09:31,040
go ahead and set this trade up it would
1883
01:09:31,040 --> 01:09:33,439
look something like this
1884
01:09:33,439 --> 01:09:36,640
and a target up here at the previous
1885
01:09:36,640 --> 01:09:40,479
level of resistance right here so at
1886
01:09:40,479 --> 01:09:42,880
this point you know exactly how i trade
1887
01:09:42,880 --> 01:09:45,600
bullish flags this video has gotten well
1888
01:09:45,600 --> 01:09:46,960
over an hour long so i'm not going to do
1889
01:09:46,960 --> 01:09:49,359
an example of a bearish version of this
1890
01:09:49,359 --> 01:09:51,040
just flip it upside down it's literally
1891
01:09:51,040 --> 01:09:53,040
the same exact thing in the opposite
1892
01:09:53,040 --> 01:09:56,000
direction in terms of a bearish flag
1893
01:09:56,000 --> 01:09:57,280
pattern we'd be waiting on the market to
1894
01:09:57,280 --> 01:09:59,120
head down with an impulsive move head
1895
01:09:59,120 --> 01:10:00,640
down with an impulsive move we would be
1896
01:10:00,640 --> 01:10:02,400
trading this small period of
1897
01:10:02,400 --> 01:10:05,040
consolidation on a breakout
1898
01:10:05,040 --> 01:10:07,199
of that period of consolidation to the
1899
01:10:07,199 --> 01:10:10,239
downside we'd be selling or going short
1900
01:10:10,239 --> 01:10:11,600
so that is
1901
01:10:11,600 --> 01:10:14,560
again how i trade flag patterns let's
1902
01:10:14,560 --> 01:10:16,400
take a look now at another breakout
1903
01:10:16,400 --> 01:10:18,400
pattern that i really enjoy using which
1904
01:10:18,400 --> 01:10:22,159
is the ascending and descending wedge
1905
01:10:22,159 --> 01:10:24,400
here is an ascending wedge and unlike
1906
01:10:24,400 --> 01:10:26,159
flag patterns that take just a few
1907
01:10:26,159 --> 01:10:28,159
candles to set up these types of
1908
01:10:28,159 --> 01:10:30,640
patterns normally take anywhere between
1909
01:10:30,640 --> 01:10:33,440
20 and 50 maybe even 100 candles to
1910
01:10:33,440 --> 01:10:35,440
actually set up their larger patterns
1911
01:10:35,440 --> 01:10:37,360
but essentially what we're looking for
1912
01:10:37,360 --> 01:10:39,679
with a wedge pattern is a level of
1913
01:10:39,679 --> 01:10:40,960
resistance
1914
01:10:40,960 --> 01:10:42,880
that the market is having trouble
1915
01:10:42,880 --> 01:10:45,920
getting past but at the same time we're
1916
01:10:45,920 --> 01:10:47,280
having trouble getting past this level
1917
01:10:47,280 --> 01:10:49,760
of resistance we want to see sellers
1918
01:10:49,760 --> 01:10:52,480
stepping in at higher prices what this
1919
01:10:52,480 --> 01:10:54,960
is showing us is that excuse me i said
1920
01:10:54,960 --> 01:10:56,719
sellers i've met buyers we don't see
1921
01:10:56,719 --> 01:10:58,560
buyers stepping in at higher prices what
1922
01:10:58,560 --> 01:11:00,640
this is showing us is that buyers are
1923
01:11:00,640 --> 01:11:02,560
more and more interested in this
1924
01:11:02,560 --> 01:11:04,880
currency pair stock crypto whatever it
1925
01:11:04,880 --> 01:11:07,679
may be they're more interested in higher
1926
01:11:07,679 --> 01:11:09,440
prices and as we continue to make these
1927
01:11:09,440 --> 01:11:12,480
higher lows the not inevitable but
1928
01:11:12,480 --> 01:11:15,280
likely scenario is that eventually we
1929
01:11:15,280 --> 01:11:17,920
bust through this level of resistance
1930
01:11:17,920 --> 01:11:20,800
because sellers eventually give up
1931
01:11:20,800 --> 01:11:24,000
trying to push the market down from this
1932
01:11:24,000 --> 01:11:26,400
level of resistance as their pushes down
1933
01:11:26,400 --> 01:11:28,080
gets smaller and smaller and we get
1934
01:11:28,080 --> 01:11:30,400
higher and higher lows they eventually
1935
01:11:30,400 --> 01:11:32,560
give up and when they do it looks
1936
01:11:32,560 --> 01:11:36,239
something like this we get a breakout of
1937
01:11:36,239 --> 01:11:38,080
that level now one of my favorite ways
1938
01:11:38,080 --> 01:11:40,800
to trade this is on the pullback almost
1939
01:11:40,800 --> 01:11:42,800
like the double top and double bottom we
1940
01:11:42,800 --> 01:11:44,640
were looking at earlier but a lot of
1941
01:11:44,640 --> 01:11:46,880
traders trade on the breakout candle
1942
01:11:46,880 --> 01:11:49,199
that we can see right here the way i
1943
01:11:49,199 --> 01:11:50,960
like to trade them is after this
1944
01:11:50,960 --> 01:11:53,280
breakout i like to wait for a pullback
1945
01:11:53,280 --> 01:11:55,120
back into my zone
1946
01:11:55,120 --> 01:11:57,520
of resistance when i get that pullback i
1947
01:11:57,520 --> 01:11:59,120
look for buying pressure what do i
1948
01:11:59,120 --> 01:12:01,760
define as buying pressure a green candle
1949
01:12:01,760 --> 01:12:03,679
so once i pull back to that zone and get
1950
01:12:03,679 --> 01:12:06,159
a green candle that is when i
1951
01:12:06,159 --> 01:12:08,640
personally we'll enter the trade so now
1952
01:12:08,640 --> 01:12:10,080
we have a pull back into the zone
1953
01:12:10,080 --> 01:12:12,000
waiting for a green candle boom
1954
01:12:12,000 --> 01:12:13,840
personally i would be entering into the
1955
01:12:13,840 --> 01:12:15,280
trade here we'll go ahead and do the
1956
01:12:15,280 --> 01:12:17,360
trade setup we've had all of our rules
1957
01:12:17,360 --> 01:12:19,360
met for an ascending wedge we have a
1958
01:12:19,360 --> 01:12:21,280
level of resistance that is acted as
1959
01:12:21,280 --> 01:12:24,159
resistance multiple times we have rising
1960
01:12:24,159 --> 01:12:26,640
support levels coming into that level of
1961
01:12:26,640 --> 01:12:29,440
resistance we now have a breakout of
1962
01:12:29,440 --> 01:12:31,840
that level and a pullback to
1963
01:12:31,840 --> 01:12:34,000
that level of resistance at this point
1964
01:12:34,000 --> 01:12:35,360
yet again whenever i find buying
1965
01:12:35,360 --> 01:12:37,360
pressure here that is when i want to
1966
01:12:37,360 --> 01:12:40,000
place a trade because of the fact that i
1967
01:12:40,000 --> 01:12:41,840
waited for the pullback i can now have a
1968
01:12:41,840 --> 01:12:44,480
much smaller stop loss based on this
1969
01:12:44,480 --> 01:12:46,640
previous swing low
1970
01:12:46,640 --> 01:12:49,920
so i have an atr of 36 pips on my entry
1971
01:12:49,920 --> 01:12:52,640
candle i want to be 36 below
1972
01:12:52,640 --> 01:12:56,159
my swing low so 39 let's go 40 plus 36
1973
01:12:56,159 --> 01:12:58,080
is 76 pips
1974
01:12:58,080 --> 01:13:01,040
76 pips would be about right here
1975
01:13:01,040 --> 01:13:02,800
with that being the case where is my
1976
01:13:02,800 --> 01:13:04,400
target going to go if i
1977
01:13:04,400 --> 01:13:06,320
place targets based on structure the
1978
01:13:06,320 --> 01:13:09,920
next level that looks to be
1979
01:13:09,920 --> 01:13:11,600
a major level of structure support or
1980
01:13:11,600 --> 01:13:14,000
resistance is right there so let's see
1981
01:13:14,000 --> 01:13:16,080
what that would look like do i get more
1982
01:13:16,080 --> 01:13:17,679
than a one to one reward risk i get
1983
01:13:17,679 --> 01:13:19,840
about a one-to-one reward to risk ratio
1984
01:13:19,840 --> 01:13:21,520
maybe move stops at break even when the
1985
01:13:21,520 --> 01:13:23,199
market hits that price right and then
1986
01:13:23,199 --> 01:13:24,800
continue with the position let's see
1987
01:13:24,800 --> 01:13:25,920
what happens
1988
01:13:25,920 --> 01:13:27,120
we push up
1989
01:13:27,120 --> 01:13:28,800
we push back down stopped out for break
1990
01:13:28,800 --> 01:13:29,920
even or
1991
01:13:29,920 --> 01:13:31,360
we watch the market continue and
1992
01:13:31,360 --> 01:13:34,000
eventually push higher but that
1993
01:13:34,000 --> 01:13:35,840
regardless of how that trade worked out
1994
01:13:35,840 --> 01:13:38,960
is how i would be trading ascending
1995
01:13:38,960 --> 01:13:41,360
wedges and the exact opposite is true
1996
01:13:41,360 --> 01:13:43,360
again this video is getting very long so
1997
01:13:43,360 --> 01:13:45,040
just flip that over what we're looking
1998
01:13:45,040 --> 01:13:47,120
for for a
1999
01:13:47,120 --> 01:13:49,600
bearish version a descending triangle is
2000
01:13:49,600 --> 01:13:51,360
nothing more than a level of support
2001
01:13:51,360 --> 01:13:53,760
that's hit multiple times while we have
2002
01:13:53,760 --> 01:13:56,320
falling resistance levels or falling
2003
01:13:56,320 --> 01:13:58,480
swing highs falling swing highs plus the
2004
01:13:58,480 --> 01:14:00,719
same level of support is going to give
2005
01:14:00,719 --> 01:14:03,360
us a descending triangle descending
2006
01:14:03,360 --> 01:14:06,000
triangles once broken to the downside
2007
01:14:06,000 --> 01:14:08,239
are likely to continue in that direction
2008
01:14:08,239 --> 01:14:10,239
personally i wait on this pullback to
2009
01:14:10,239 --> 01:14:12,400
come back into that level sometimes it
2010
01:14:12,400 --> 01:14:14,320
doesn't happen and i miss out on some
2011
01:14:14,320 --> 01:14:16,000
trades but it gives me a better reward
2012
01:14:16,000 --> 01:14:18,080
to risk setup so i like to wait on that
2013
01:14:18,080 --> 01:14:20,480
pullback in terms of getting a better
2014
01:14:20,480 --> 01:14:24,560
reward to risk on these trades so
2015
01:14:24,560 --> 01:14:28,239
i would love to be able to tell you that
2016
01:14:28,239 --> 01:14:30,719
this is all you need and now you can go
2017
01:14:30,719 --> 01:14:33,120
out there and trade and make money quit
2018
01:14:33,120 --> 01:14:34,880
your day job and you'll be good to go
2019
01:14:34,880 --> 01:14:36,239
from here on out
2020
01:14:36,239 --> 01:14:37,760
unfortunately
2021
01:14:37,760 --> 01:14:40,800
that is not the case unfortunately
2022
01:14:40,800 --> 01:14:42,800
just understanding technical analysis
2023
01:14:42,800 --> 01:14:44,880
isn't enough although in this video i
2024
01:14:44,880 --> 01:14:46,800
did share everything you need to know
2025
01:14:46,800 --> 01:14:49,280
about technical analysis i did not and
2026
01:14:49,280 --> 01:14:52,320
was not able to in one video share
2027
01:14:52,320 --> 01:14:53,840
everything you need in order to be a
2028
01:14:53,840 --> 01:14:56,400
consistently profitable trader but
2029
01:14:56,400 --> 01:14:59,600
luckily we do have some space available
2030
01:14:59,600 --> 01:15:02,239
in our mentorship program so if you
2031
01:15:02,239 --> 01:15:03,679
would like to learn
2032
01:15:03,679 --> 01:15:05,440
the exact combination of technical
2033
01:15:05,440 --> 01:15:07,440
factors i use that i call a strategy the
2034
01:15:07,440 --> 01:15:09,360
exact strategies that i use every single
2035
01:15:09,360 --> 01:15:10,880
day in the market if you would like
2036
01:15:10,880 --> 01:15:13,440
mentorship from me personally with any
2037
01:15:13,440 --> 01:15:15,120
questions you have about the course that
2038
01:15:15,120 --> 01:15:17,760
we have that we offer or about forex in
2039
01:15:17,760 --> 01:15:19,120
general if you would like to receive a
2040
01:15:19,120 --> 01:15:21,440
video every single week of the trade
2041
01:15:21,440 --> 01:15:23,360
setups that i'm looking to take
2042
01:15:23,360 --> 01:15:25,840
throughout that week along with much
2043
01:15:25,840 --> 01:15:28,080
much more including an entire course
2044
01:15:28,080 --> 01:15:30,159
that goes over the other two huge
2045
01:15:30,159 --> 01:15:32,159
aspects of trading outside of technical
2046
01:15:32,159 --> 01:15:34,800
analysis which are trading psychology
2047
01:15:34,800 --> 01:15:37,120
and risk management if you want access
2048
01:15:37,120 --> 01:15:38,960
to all of that and you want to speed up
2049
01:15:38,960 --> 01:15:40,719
your journey to becoming a consistently
2050
01:15:40,719 --> 01:15:43,199
profitable trader then there's a link
2051
01:15:43,199 --> 01:15:46,480
below to a very discounted price on the
2052
01:15:46,480 --> 01:15:47,920
eap training program we're actually
2053
01:15:47,920 --> 01:15:50,080
running the black friday sale again and
2054
01:15:50,080 --> 01:15:52,560
the reason is because well mostly i'm
2055
01:15:52,560 --> 01:15:54,320
just too lazy to create a new sales page
2056
01:15:54,320 --> 01:15:55,600
and i want to give you a discount for
2057
01:15:55,600 --> 01:15:58,080
watching this entire over an hour long
2058
01:15:58,080 --> 01:15:59,760
video so if you're interested in that
2059
01:15:59,760 --> 01:16:01,679
you get everything that i've ever made
2060
01:16:01,679 --> 01:16:05,360
in terms of paid content for 697
2061
01:16:05,360 --> 01:16:08,320
or for like three payments of 297 if you
2062
01:16:08,320 --> 01:16:10,640
can't afford the whole 697 we do have a
2063
01:16:10,640 --> 01:16:12,320
payment option you can learn all about
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01:16:12,320 --> 01:16:15,199
the program what it includes and how you
2065
01:16:15,199 --> 01:16:16,719
can get access to it by clicking the
2066
01:16:16,719 --> 01:16:18,320
link in the description labeled eap
2067
01:16:18,320 --> 01:16:20,560
training program if not that is totally
2068
01:16:20,560 --> 01:16:22,480
fine too you now have everything you
2069
01:16:22,480 --> 01:16:24,400
need to know about technical analysis
2070
01:16:24,400 --> 01:16:26,159
combine some of these technical factors
2071
01:16:26,159 --> 01:16:28,400
to create your own strategy take that
2072
01:16:28,400 --> 01:16:30,320
strategy back test it create risk
2073
01:16:30,320 --> 01:16:32,560
management plan around it and
2074
01:16:32,560 --> 01:16:34,320
work on your trading psychology demo
2075
01:16:34,320 --> 01:16:35,760
trade for a while so that you get
2076
01:16:35,760 --> 01:16:37,920
confident and consistent
2077
01:16:37,920 --> 01:16:39,360
probably you need to look up some videos
2078
01:16:39,360 --> 01:16:40,640
on this if i was you i would literally
2079
01:16:40,640 --> 01:16:41,360
go
2080
01:16:41,360 --> 01:16:43,280
on youtube look up risk management if
2081
01:16:43,280 --> 01:16:44,800
you only know technical analysis now and
2082
01:16:44,800 --> 01:16:46,320
you're a complete beginner go on youtube
2083
01:16:46,320 --> 01:16:48,239
look up risk management look up trading
2084
01:16:48,239 --> 01:16:50,640
psychology try to implement those into
2085
01:16:50,640 --> 01:16:51,679
all everything that you've already
2086
01:16:51,679 --> 01:16:53,679
learned then create a strategy out of
2087
01:16:53,679 --> 01:16:54,640
everything you've already learned by
2088
01:16:54,640 --> 01:16:56,080
combining a bunch of these technical
2089
01:16:56,080 --> 01:16:58,640
factors and try demo trading that for a
2090
01:16:58,640 --> 01:17:01,280
while to see if you can actually create
2091
01:17:01,280 --> 01:17:03,360
a profitable three months with a
2092
01:17:03,360 --> 01:17:06,080
rules-based strategy if you can hats off
2093
01:17:06,080 --> 01:17:07,760
to you you're doing better than 95 of
2094
01:17:07,760 --> 01:17:09,600
traders and then you can choose when you
2095
01:17:09,600 --> 01:17:12,159
would like to take your trading live as
2096
01:17:12,159 --> 01:17:13,920
i said we do have the eap training
2097
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program at a major discount right now
2098
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check that out if you want some more
2099
01:17:17,120 --> 01:17:18,880
advanced training and some more help
2100
01:17:18,880 --> 01:17:21,760
with your trading personally from me if
2101
01:17:21,760 --> 01:17:23,360
not totally fine too make sure you click
2102
01:17:23,360 --> 01:17:24,960
that like button make sure you're
2103
01:17:24,960 --> 01:17:27,679
subscribed i am so tired
2104
01:17:27,679 --> 01:17:28,880
right now because i've been doing this
2105
01:17:28,880 --> 01:17:30,159
video for like eight and a half hours
2106
01:17:30,159 --> 01:17:31,679
that i am out
2107
01:17:31,679 --> 01:17:33,440
and i'll see you guys in the next video
2108
01:17:33,440 --> 01:17:36,239
talk soon
149049
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