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your ability to use technical analysis

in order to make good trading decisions

and inevitably make money in any market

is imperative it's something you cannot

do without and if you do not understand

some parts of technical analysis or if

you don't know how to use them correctly

then that is likely a huge reason that

you are currently either losing money as

a trader or struggling to create profits

over time so for that reason what i want

to do in today's video is show you

everything you need to know about

technical analysis we're going to be

going all the way from what a

candlestick chart is to indicators

support and resistance trend all the way

to entry patterns and how to take stops

and targets we're dissecting everything

today in this video i will be pouring

all the knowledge about technical

analysis that i have gained over the

past decade of my own trading career

into one video and since i'm doing that

for absolutely free it would be awesome

if you could just smash that like button

for me to help out with the youtube

algorithm if you are new go ahead and

click that subscribe button because we

come out with content like this each and

every week you're already subscribed

welcome back you know what's coming i'll

see you after the intro and disclaimer

[Music]

so i'm gonna say this really slowly so

that anybody who is brand new will

easily understand

technical analysis is the study of

historic price movements in order to

make accurate decisions of what the

market may do next technical analysis is

how we make those accurate decisions of

what price may do next

every part of technical analysis is

based around price

think about a candlestick chart that's

just a visual representation of price

itself trends are nothing more than

higher highs and higher lows or lower

lows and lower highs in price

structure support and resistance even

indicators

are based around price they are just a

formula added to historic price data in

order to plot that indicator on your

chart so because of the fact that the

foundation of all technical analysis is

priced the very first thing we're going

to study today is a candlestick chart

and i'm going to put a timestamp beside

me of the seven or eight things we're

going to be going over in today's video

that way you can skip ahead if you

already know parts of technical analysis

with that said let's go ahead and dive

into candlestick charts

what you see on the screen in front of

you is known as a candlestick chart

right now we are on a daily chart of the

s p 500. i'm gonna go to a price chart

of bitcoin

now we are on the daily chart of bitcoin

and now let's go to a candlestick chart

of the euro dollar

now what do you notice about all three

of these they all have candlestick

charts so the foundation of technical

analysis no matter what market you're

trading in whether that be

forex stocks crypto the foundation of

technical analysis in every market are

these candlestick charts but before we

can understand this full candlestick

chart first you need to understand what

a single candlestick represents so let's

do that now here are a couple of single

candles and what these candles represent

is price movement throughout a certain

period of time depending on the time

frame that you're on i'm sure you've all

heard of time frames right the daily

chart the one hour chart the five minute

chart depending on what time frame

you're on that's the amount of price

movement these candles represent so

let's consider that we are on a five

minute chart that means that each of

these candlesticks would represent five

minutes of price movement now before i

get ahead of myself candles have two

parts candlesticks have a body which you

can see here colored in in green

and a wick which are the lines above

and below the body of the candle a green

candle represents a five-minute period

since we're on a five-minute chart right

a five-minute period where price went up

or closed above where it opened we're

going over that in just a second a red

candle has a body as well but the body

of this candle is red because it

represents a five minute period where

price closed below or went lower during

that five minutes to make this really

simple let me go ahead and explain the

open high low and close the open of a

candle

is where it opened during that five

minute period so let's say that the

beginning of our candle is at 12

o'clock

what this candle would represent is the

open of a candle at 12 o'clock the low

would be the lowest point price got to

during a five minute period

the high

would be the highest point price got to

during a five minute period and our

close would happen

at

1205 and that would be the ending price

during a five minute period

so that is a green candle a red candle

represents when price went down during

that period of time so for a red candle

we would have an open at the top of the

body this is the only difference between

the two candles the open is at the top

of the body of a red candle because

during a red candle it represents a

period where price closed below where it

opened or went lower during let's say a

five minute chart so the open is there

the highest point is the same it's the

top of the line or wick of the candle

that's the highest point price got to

within five minutes the low is the

lowest wick on that candle that's the

lowest point price got to in five

minutes and the close is the closing

price after five minutes of data on a

five-minute chart again if we started

this at 12 o'clock

then the closing price would be at 1205

and this candle shows you all of price

between all of the action of price

between 12 and 1205 if you're on a five

minute chart if we're on any other time

frame everything is exactly the same

except for the amount of time that

passes if you're on a one hour chart

then this would be the open at 12

o'clock and the close of this candle

would be at one o'clock everything else

stays the same the low is the lowest

point that candle got to during that

hour the highest the highest point that

candle got to during that hour so at

this point you should know exactly what

each and every candle represents and we

put a large amount of these candles

together in order to interpret what

price is likely to do next by

identifying trends and areas of value

identifying entry patterns which is all

stuff that we're going to go over right

now so let's dive down to a chart take a

look at a couple of live examples of

single candles and talk a little more

about trend areas of value and the way

we can use candlestick charts to predict

what the market may do next with a high

degree of accuracy just as a quick look

at candles on an actual chart we are

currently on the one day chart of the

year in new zealand so what do each of

these candlesticks represent they

represent 24 hours of price movement or

one day of price movement a green candle

represents a day where price went higher

or a day where the price closed

above where it opened right a red candle

represents a day when price went lower

or a day where price closed below where

it opened this most recent green candle

what does it represent it represents

price opening right here at the

beginning of the day

the lowest price that price got to is

the bottom of this week the highest

price that price made during that 24

hour period is the top of the wick right

here and the close of that day is the

top of the body of that candle the

opposite is true for a red candle so now

that we have that let's move on to how

we can use a large amount of these

candles in order to identify

a trending market and make accurate

trading decisions

so if you had to take a guess of what

trend the euro new zealand was in which

is the chart that is in front of you

what would you say uptrend downtrend or

consolidation

hopefully you were able to say an

uptrend and simply put an uptrend is

nothing more than when a candlestick

chart is consistently making new highs

and then higher lows fall by new higher

highs new higher lows new higher highs

new higher lows new higher highs new

higher lows and so forth this higher

high and higher low situation is what is

referred to as a trending market and

this particular situation would be

an uptrend

now the reason we utilize a trending

market is because it gives us more

accuracy on our trades you've probably

heard followed the trend before and most

beginners

will gravitate towards trend trading for

good reason again it adds accuracy to

your trait it can make for better reward

to risk setups and all in all it's much

easier to ride a trend that's already

there than to pick the very top or the

very bottom of a market trying to trade

reversals so it's a good thing to trade

with the trend with this market being in

an uptrend what direction would you like

to trade this market to the upside right

you'd want to be buying while the market

is in an uptrend but

here's the problem with trend

identification that i see all the time

and that is just not really

understanding or having a set in stone

objective defined way to identify trend

a lot of traders can easily identify

this

right that's an easy trend to see but

what if price is acting like price

normally does and it looks more like

this

we have our high low a new high but then

price does this

and this

and then finally goes up and then goes

up again at this point doesn't it get a

little bit harder to identify trends so

with that being the case i want to give

you an objective way to identify trend

right now what we have in a trending

market are impulsive moves that is the

big moves that break into new highs

right here is our impulsive move i'll

label those with an i

these are the impulsive moves after an

impulsive move the market takes a

breather we call that

our pullbacks

these

are our pullbacks in price this would be

a pullback

followed by

our next impulsive move that breaks a

high right here impulsive move and again

pullback right here so the objective way

that we're going to be identifying trend

is the lowest low

of the pullback

cannot be broken for us to stay in an

uptrend so once we have this move that

breaks and closes above

our previous high we call that our what

impulsive move

once we have that impulsive move

breaking into new higher highs which is

what we're looking for in an uptrend

this market is still considered in an

uptrend until we break our close below

the lowest low of the previous pullback

so when we get a break above this high

right here when this market breaks above

this high with the new impulsive move

making a new

higher high

then this market

is still considered to be in an uptrend

until

or unless the market breaks and closes

below what the lowest low

of the pullback which would be where i

just put this line this is the lowest

low

of that pullback so as long as the

market

stays above that low

then we're still considered to be in an

uptrend and we still want to look for

buying opportunities at this point right

here we have had what

another impulsive move

this move is our impulsive move because

it broke above the previous higher high

at this point what level cannot be

broken for us to continue this uptrend

we cannot see

the low

of our pullback broken where's the low

that's the lowest point price got to in

this pullback as long as the market

stays above that level and continues

making higher lows and higher highs than

we're still in an uptrend what we do not

want to see

is the market come down and break below

that previous low of the previous

pullback i know that might sound

complicated we'll do it on a real chart

to help clear things up also if it

sounded complicated just go back and

rewatch this portion of the video this

is how i objectively identify whether

the market is trending up or down is

going to be the opposite we'll look at a

downtrend as well but the reason we have

to have this information is because we

want to be trading alongside

the trend of any given market if this

market's in an uptrend like this do i

need to be trying to sell and go short

and go against the trend no because the

likely scenario is that we're going to

continue into this trend we're going to

continue breaking into new highs and

just to show you that let's click play

and see what happens at at this point

right now looking at the chart what do

you expect to happen

what do we have we have our low just as

we were just drawing it out to a high

a higher low

a higher high

here's our higher low right here our

higher high our higher low our higher

high and our higher low we have now done

what created an impulsive move

what do we expect after the impulsive

move we expect a pullback but what

cannot happen

this pullback after our impulsive move

cannot break and close below

the low of our previous pullback this is

the low of our previous pullback so if

this market does this

then we're expecting what a possible

reversal we're expecting this market to

possibly head lower but as long as we

stay above this previous pullback we're

still considering this market in an

uptrend still looking for buying

opportunities let's see what this market

does

boom just like that we break into new

structure highs continuing this uptrend

here on the euro new zealand so that's

how i identify uptrends list now switch

the script flip the coin if you will and

take a look at downtrends and how to

identify those in order to make more

accurate trading decisions so if for a

uptrend we are looking for

higher lows and higher highs what do you

think we're looking for with a downtrend

it's the complete opposite right we're

looking for a starting point here then

we're looking for lows

followed by a lower high followed by a

lower low followed by a lower high

followed by a lower low followed by a

lower high so on

and so forth and with this being the

case just like

with the other example i'll give you an

example on the whiteboard here if we're

heading lower it's really easy to

identify this as a downtrend this chart

extremely easy what about when price

does what price normally does and we get

something like this

and then the market goes like this

and gets higher and consolidates and

then finally breaks below this low well

now

since we just went over this you know

that this is still a downtrend unless

what happens just like an uptrend we

have our impulsive moves here

followed by pullbacks

what we do not want to see

is the market break and close above the

high

of the previous pullback in a downtrend

if that happens then we're considering

that a possible reversal but as long as

that doesn't happen then we are still in

a downtrend and what kind of trading

opportunities are we looking for if this

market's heading down we're looking for

selling opportunities as long as the

market continues to head in the downward

direction so that is my objective way of

identifying trend and at this point you

have a lot of knowledge you've gained

throughout this video you now understand

candlestick charts you understand how to

identify a trending market whether that

be up or down so if you've already

gained value why not go ahead and smash

that like button for me and what we're

going to do now is talk about how to

find high probability areas of value

using structure support and resistance

see you there

support and resistance are simply areas

in the market that price is likely to

react from support is an area in the

market that price is likely to have a

bounce up from or be supported by

whereas resistance is an area in the

market where the price of an asset or

currency pair or crypto or stock is

likely to fall or drop down from

these areas are based on historic price

and based on other areas of support and

resistance we can see in historic data

and those are based on the decisions of

all other market participants we're not

going to dive into the psychology of

support and resistance in this beginner

video but these areas of support and

resistance are useful

for three main reasons

you can use them

to spot possible reversals you can use

them as entry points on train

continuation trades and you can use them

to help you determine your stops and

targets so what we're going to do right

now is go over a couple of those as i

said earlier most beginners are going to

gravitate towards trend continuation

trading so what i'm going to do is show

you how to use these areas of support

and resistance to make better trading

decisions while in a trending market and

i'm going to go over how to use them to

help you set your stops and targets so

let's go ahead and dive into some charts

and talk about support and resistance

and how they can help us make better

trading decisions using support and

resistance as entry points in a trending

market is very simple if we build on

what we already know from the previous

lesson about trend if we were to draw

out a trending market it would look

something like this

low to a high pull back break above a

little bit of consolidation not crossing

that previous pullback low though so

what are we still in an uptrend right

continuing then pulling back continuing

up pulling back and continuing higher

in an uptrend

the likely scenario if we're going to

continue in this uptrend and one of the

best ways to look for possible support

and resistance trades is to look at the

previous level

of resistance that was broken to become

support

this is how we use support and

resistance for

entry points in a trend continuation

model and in a trending market is by

using that previous level of resistance

as possible support let's do a bearish

example in a bearish trend the trend

would look something like this right

as we go further and further what we're

looking for in a bearish trend is for

the market to get back up to

that previous level of structure support

that now we expect to become

resistance so this is called a break and

re-test strategy and what we're looking

for with this strategy again is the

market to break below

a previous level of support like we have

right here come back to that level and

provide a trading opportunity we're

going to talk about how we enter trades

later on in the video but what you need

to know right now is using structure

support and resistance for entry levels

in a trend continuation model and in a

trending market goes like that and what

we're going to do now is take a look at

this on live chart data

here we are on that same euro new

zealand chart

what did we just discuss well we want to

see the trend start so we have our low

to high

high or low followed by our higher high

at this point the reason this is our

higher high is because

this is where the market

made a new high compared to its previous

high and closed above the previous level

of resistance with that being the case

the previous level of resistance is

likely to become support for a trend

continuation

market for a train continuation trade if

we continue looking here we have a

push-up

a pullback

a push-up to a new high this pullback

where does this pull back come to if i

was to draw this box out right here at

our previous level of structure

resistance

and make it a little easier to see for

you

what do you notice

at this point with this trend

continuation in mind the market made a

new high with our impulsive move

comes down to our pullback where does

our pullback come to our pullback comes

right into the previous high that was

broken this is resistance turned into

support and this is how we use support

and resistance to find entry points in

trend continuation let's take a look at

a bearish example of this now here we

are on that same euro aussie chart we

looked at for the trending model we were

discussing earlier in the video in this

case we have our high down to our low up

to our high once we break below

this low right here what are we looking

for

in a bearish trend after we break that

low

we would be looking for a pullback and

let me delete these lines to make it

easier to see

into that low just as we have right here

and a continuation of the trend

afterwards as you can see this market

pulls back right into the previous area

of support it does become resistance and

this market continues pushing down this

happens over and over again and looks to

be happening right now on live chart

data here on the euro aussie let's draw

that out so you have a complete

comprehension of how to use support and

resistance to find entry points in

trending markets we have our high to our

low our lower high what happens we break

below what our previous low if we

put a box around that previous low

what has price now done price has now

came back into

that previous

support level that now is what it's a

break in retest strategy so if it was

support it's now going to be resistance

so at this point once we get to that

level we can start looking for entry

reasons again we're gonna talk about

ways to enter the market in these type

of situations a little bit later on in

the video but for now it's just

important for you to understand and

comprehend that we're looking for breaks

and re-tests of support and resistance

levels in trending markets whether we're

trending up or down that shouldn't have

been too hard to comprehend but if you

had any trouble rewind the video and

watch that section again now let's talk

about how to use these levels for

possible targets let's go back to a

bullish example

so for a bullish example of this let's

say that you got a entry

in this area on a lower timeframe let's

say you drop down and you saw like a

double bottom or something in this area

if that's the case then the way we could

use support and resistance for possible

targets is

this level of support this box that we

drew we definitely want our stop loss

below that level so with that being the

case we would make sure that our stop is

below that level keeping us safe in

terms of what we can expect out of

targets the way we use this to prepare

to take those targets is if we're

expecting train continuation

and before i continue do you see how

everything's coming together

we learned about trend in the last

section if your pullback

has not broken below the low of the

previous pullback then what's the likely

scenario that we break above these highs

right into new highs and continue in

this uptrend with that being the case

what if you said well the way i'm going

to take targets on this trade is by

looking at the previous high and taking

my targets there because the likely

scenario is that this market continues

higher so then you would place your

targets based on this resistance level

right here

and that is how you use trend and

structure in order to give yourself good

reward to risk ratios and accurate

trading opportunities in this case would

have been about 3.6 reward to risk ratio

on this trade

my camera literally just died on me but

i have an extra camera so no worries

let's wrap it up with a recap

for a trending market to the upside what

we are looking for is a level of

resistance to break and then we're

looking for the pullback after the break

of that level of resistance to come back

to that level of resistance we're then

looking for that level to become support

in an uptrend and in a trending market

for a downtrend we are looking for quite

the opposite we're looking for a level

of support to break

and then the market have a pullback that

comes back to that level of support

we're looking for that level of support

to become the likely area of resistance

for the continuation

of that downtrend in terms of stops and

targets we're using these levels to make

sure our stop loss is beyond that level

of support that we point out or that

level of resistance we point out and we

want to look left and make sure our

targets are not close to a level of

resistance for a buy trade or not past a

level of major resistance because that

level of major resistance may push the

market down we want to make sure we take

targets or at least roll stops to break

even before the market gets pushed down

by that level of resistance the opposite

is true in a downtrend with a level of

support if you're selling you want the

market to go lower you don't want to be

beyond a level of support

so that wraps up the support and

resistance lesson next up

we're going to talk all about

indicators and how they can help you

make better trading decisions let's do

that right now

before we get started i need you to make

your chart look exactly like this

just joking but trading indicators are

formulas added to current and historic

price and mathematical equations in

order to plot lines and histograms on

your chart the purpose of trading

indicators is to help simplify what

price is doing a candlestick chart

itself can be very confusing at times so

trading indicators are meant to clean up

some of that noise they can also be used

as an invaluable

objective role in a trading strategy or

in our trading in general to help us

have consistency so essentially trading

indicators can help to provide clarity

on market conditions they can even help

us to identify trend identify areas of

value help us find entry points and even

help us determine where we want to place

our stops and targets now there are

thousands of trading indicators out

there and feel free to go test and study

all of them to find the ones that fit

your trading style best but in this

lesson what i'm going to do is share

with you my top three that i use every

single day in my trading as indicators

to help me make better trading decisions

so let's jump into that right now

the most useful indicator that i have

ever found and with no exaggeration an

indicator that i use every single time i

place a trade is the atr indicator atr

stands for average true range and what

this indicator does is gives you the

average movement of price out of the

last 14 candles the way it works is it

adds up the price movement in total the

total amount of pips each candle moved

out of the last 14 candles then it

divides that number

by 14 to give you the total

average

movement of price in the last 14 candles

hopefully you can already see why that

is so valuable but if not let's talk

about how we use this indicator before

we do that let's talk about how to find

it on trading view it's super easy you

go up here to your indicator tab click

indicators and you type in atr it is the

first one that is called built-ins any

trading platform should have an atr

indicator if it doesn't you probably

shouldn't be trading with it but the way

we use this indicator is to

stay in line with the volatility of a

market currency pair or time frame for

example there's been so many times that

i see a trader or hear from traders and

they say stephen i don't know what i'm

doing wrong i keep losing trades and you

know i'm i got a good reward to risk

ratio but i'm losing so much i'm still

losing money in my account and they'll

send me emails of their trades and

they're risking 10 pips

to make 20 pips

but they're doing that on every currency

pair and every time frame now this may

work

on a five minute chart maybe right on a

15-minute chart possibly that creates a

profit depending on the strategy but if

you're on a daily chart

risking 10 pips when the average

if you look up top here

whenever

i go away from my drawing tool the

average movement on a daily chart is 190

pips you think that 10 pip stop loss is

going to get hit

yeah 90 of the time 90 of time you're

gonna lose that trade because you're not

in line with the volatility of the time

frame you're on the same thing goes for

different currency pairs for example the

euro pound

in the currency world is a currency pair

that has a very small amount of movement

per candle on the daily chart we're

looking at 50 pips again look up here at

the circle right at 48 pips

that's a full day of trading on average

for the euro pound whereas the pound new

zealand on the same chart look at this

day

160 pips so do you think you need to be

using the same exact stop loss when

these two markets

are moving so differently one moving in

tiny amounts per candle one moving in

huge amounts per candle no so that's why

we need the atr indicator to help us

stay in line with the volatility of a

certain currency pair or a certain time

frame to keep from getting wicked out by

the market if you've ever been wicked

out of a trade a lot of that could be

because you're not following the

volatility of a certain market so now

let me move on and show you how i

actually use this in my own personal

trading so based on what you've learned

so far in this video what trend is the

aussie canada in right now well we've

had a high down to a low

up to a lower high down to a lower low

with that being the case are we in a

downtrend

yes we are and

in terms of structure and support and

resistance we look for while in a

downtrend what are we looking for

we are looking for the previous level

of support to become resistance

in a downtrend and we haven't gone over

this yet but we actually have a nice

inverted hammer here or a nice shooting

star candle whatever you want to call it

i don't really worry about the names of

them this candle has a long wick to the

top side again we're going over

candlestick patterns actually in the

very next lesson but right now what i

want to show you is how i would use the

atr to help me predict stops and targets

in terms of how i would use that

indicator to place those let's go ahead

and put a position tool on the chart

right now the atr if you look in the top

left corner of the screen right up here

is 67

for the aussie canada if the atr is 67

what i want to do is make sure that i am

at least one atr

above the swing high of this current

pullback to give the trade breathing

room so if up to that high is 30 pips as

you can see right here this is up to the

swing high then i need to add 67 pips to

that that would be a 97 pip stop loss

now i know that i said

we shouldn't be looking past levels of

support like

this in order to take targets but in

this situation let's just do it anyway

and with that being the case i may say

something like i expect this in terms of

targets right this was how i use it for

stops

i make sure that i'm at least one atr

above the swing high or below the swing

low if i'm shorting versus going long

now

for targets i may say i'm expecting the

market to move

two times the atr indicator so what's

two times 67

134 so now i can have a 134 pip target

and again this would work better if

there wasn't a level of structure in the

way but for the purpose of the atr

indicator just go with it and that sets

me up with a 1.4 to 1 reward to risk

ratio this is how one of the ways that i

would use the atr

in order to place stop losses another

way you can do this is by simply this is

a more simple way is by saying okay i

want a stop loss that is two times the

atr indicator from my entry so that

would be 134 from entry right

and in order to get a two to one reward

to risk ratio i want to have a 4

times atr indicator for my target 134

times 4 is 268

and that would be a 2 to 1 reward to

risk ratio and that would be the way

your trade setup looks at this point

you're giving yourself room for your

stop loss and you're accounting for the

volatility of the market in terms of

finding targets as well those are the

two ways i like to use the atr indicator

let's now move on to the next

favorite indicator that i have the

second

most valuable in my opinion which is

moving averages moving averages are

exactly what they sound like it is the

average movement of price over a certain

period of time so the red line you see

on the screen right now is the 20 period

moving average what that means is that

this indicator took the closing price

of the last 20 candles

and then divided that number by 20 in

order to plot this line on the screen if

this moving average was to be 50 periods

or look back period or length whatever

it's defined as in your trading platform

it may be slightly different if it's 50

though what does that mean

that means that this indicator took the

closing price

of the last 50 candles divided that by

50 and that's how you get this line on

your screen right here now in order to

plot this on the chart it should be

self-explanatory but you just go up to

indicators

here on trading view it's very easy you

type in moving average without that

weird vocal tone and then you go down to

moving average and just plot it on the

chart now there are three main ways i

use moving averages let's go ahead and

dive into those right now the first way

that i like to use moving averages

is to help me define trends so earlier

in the video we talked about candlestick

charts and a defining trend with swing

highs and lows

as i said about indicators earlier

though indicators are there

to help you clarify what price is

actually doing so a moving average is a

great objective way to define trend the

way you would do that is if price is

trading above whatever period moving

average you choose for short term trends

the 20 works great

if price is above the 20 then i am in

an uptrend

and i'll do an example on the screen now

for if price is below the 20 then i am

in a downtrend

and that's the way we would use a moving

average a single moving average to help

us define trend and the way we would

trade based around that is we only look

for buy trades while price is moving and

creating new highs and lows above the 20

period moving average for this short

term trend and highly volatile trend if

it's staying above the 20 moving average

then a really high volatility trend

great time to trade breakouts which

we're gonna discuss later on in the

video but

the next way i like to use moving

averages is as an area of value as you

can see on the chart here yes this is

cherry picked and it will not work every

single time i'm not saying

buy every time the market hits the 20

period moving average trust me i've done

that and it sucks it does not work

that's why let me just break off for a

second here that's the reason that we

have to have a combination of all of

these technical factors in order to

create a profitable edge over the market

in a profitable system we can't just use

one but let's get back to the video this

can add confluence to a trade when

you're using

this area of value with combinations

like the previous level of resistance

that was broken and candlestick patterns

right but as i digress the 20 period

moving average can act as a great area

of value in short term trends as you can

see on the chart here when the market

pulls back to that moving average we get

a pop out of it pulls back gets a pop

out of it pulls back gets a pop out of

it now in terms of using moving averages

for

identifying areas of value there are

only three i would use and that is the

20 period moving average we have right

here

the 50 period moving

average that we have right here as you

can see support

provided area value out of the market

and i bet this is going to land

somewhere near the 200 or this may let's

let's try it and the 200 period moving

average so those are the only three i

would use damn i was close those are the

only three i would use as areas of value

as you can see the 200 also provides

resistance and support as well the

reason those three work the best is

because those are the top three moving

averages used by traders around the

world so you might as well align with

them if there's gonna be a bunch of

traders taking longs off the 200 period

moving average

that's gonna push the price up right so

that's how i like to use moving averages

as areas of value again not by

themselves don't just buy because the

market hits a moving average i got to

combine that with things like structure

support and resistance and candlestick

patterns and other technical factors

trend and other indicators in order to

create that profitable edge the third

way to use a moving average in your

trading or the third most useful way

that i personally have found is to use a

moving average as a trailing stop the

way that would work is maybe you decided

you want to place a reversal trade after

you saw something like this the market

broke above

a previous resistance right our trend

continuation trade that we've talked

about we got our higher high higher high

higher low higher high now we're pulling

back into that resistance let's say you

place a trade there so your entry would

be

right here

boom you enter the market and at this

point

you have a stop loss one atr right below

the lows so let's say here's your stop

i'm gonna color that red

what you would do with the third way is

use the moving average as a trailing

stop so if you were just going for a

regular two to one you'd probably be out

of your trade right up here and that's

great you know you got your two to one

reward risk awesome but if you would

have used the 20 period moving average

as a trailing stop you could have got a

little bit more out of this trade taking

profits up here closer to a three or

four to one reward to risk ratio so in a

trending market using a moving average

as a trailing stop can be highly

beneficial to capture more of that trend

and essentially capture more targets out

of that particular

trade so those by far my favorite two

indicators the other indicator that we

are going to go over although i barely

use it is the rsi indicator because i do

think there's a place for it when trying

to trade reversals only

when combined with other factors like

structure higher time frame trend all of

things that we're going to go over later

in the video but we are going to discuss

the rsi indicator right now the rsi

indicator is considered by most traders

as a reversal indicator when in fact

it's actually a momentum indicator it

tells you when price has been moving in

a certain direction for a long period of

time this is why we don't just

sell when the market goes over ball and

buy when the market goes oversold let me

digress one more time

with the rsi indicator most traders

think that when the market uh price is

above 70

that that means it's time to sell in

order to look for that possible reversal

and when the price is below 30 on the

rsi that means it's time to buy for a

big reversal to the upside while this

may work out sometimes without

combining this with other technical

factors it is a losing strategy other

technical factors including major levels

of structure trend on higher time frames

things of that nature but as i said

there is a place for the rsi indicator

i'm going to go over this very briefly

because i know how long this video is

going to be already

the place i see

the rsi indicator is

if we're at a previous level of major

structure resistance when this market

goes

into an overbought scenario and if we

have something called rsi divergence

where price is making higher highs and

the rsi is making lower highs

then we get a candlestick pattern like

an engulfing pattern that

is an area where i believe the rsi is

extremely useful

outside of using this indicator as a

confluence with multiple other technical

factors i don't see it being as useful

as things like the atr indicator and the

moving average indicator but i did want

to throw this on the screen here and

throw it in with this video because i

think it can be useful when used

properly when used with divergence and

higher time frame structure levels and

trend but with that said that is going

to do it for indicators next up we're

moving on to how we actually enter the

market we're talking candlestick

patterns chart patterns breakout

patterns the real nitty gritty i'll see

you guys there

candlestick patterns are candlesticks

that form in a very specific way in

order to help us determine

what price is likely to do next you may

have heard of some of these before

candlestick patterns like the engulfing

pattern are very popular

hammer and shooting star candles are

extremely popular and there are tons of

candlestick patterns out there feel free

to go study all of them but it's

unnecessary because what i'm going to do

right now is give you my favorite three

candlestick patterns that i use in my

own personal trading but before we do

that let's talk about how we use these

candlestick patterns candlestick

patterns can be used to help us spot

reversals they can be used to help

provide clarity on market sentiment and

they can be used for entry reasons and

trend continuation and reversal trades

that's what i normally use them for and

now let me show you the three

candlesticks that i use most often the

first one is called the 382 candle or

38.2 percent candle and you're gonna

understand why in a second you may be

looking at these going

man steven that looks like a hammer or a

tweezer top and that looks a lot like a

shooting star why are you calling it a

38.2 candle because the name of the

candlestick pattern does not matter let

me explain the reason i call this a 38.2

candle is because the role that i have

for this pattern and what it shows us is

that

price or buyers the market itself

meaning all of their participants

have pushed this market all the way down

to the bottom of this wick remember when

we talked about candlestick charts at

the very beginning of the video

price moved all the way down to here but

what happened after price moved down

there

buyers came in and took control pushing

us all the way back up

near the highs this is a huge bullish

sign for me and a reason to expect

bullish pressure afterwards in any

particular market the reason it's called

a 38.2 candle is because in order to

objectively identify these candles the

only thing i do to make this extremely

simple and let me talk about the reason

i do this first if you ask people what a

hammer candlestick is or you show them a

chart i'll put a chart on the screen and

ask is this a hammer

or is

this a hammer candlestick you may get

two different answers what i'm trying to

say is that candlestick patterns unless

you have rules for them are subjective

and in order to have consistency in our

trading we have to be objective so an

objective rule i have for the 38.2

candle is that i pull

a fibonacci retracement from the swing

low of the candle itself to the high

of the candle itself as long as the

entire body of that candle is above the

38.2 retracement then i count this as a

valid 38.2 percent candle and i count

this as a candle that's showing me

buying pressure you guessed it it's the

exact opposite for

a bearish version of this pattern a

bearish version of the 38.2 candle what

do you think i'm gonna do to identify

this pattern in an objective way i'm

taking a fibonacci retracement from the

top of that candle the high

down to the low and as long as

the entire body of that candle

is below the 38.2 retracement then i

know that selling pressure is likely to

come into the market again the way we

use these types of candles is if this

was to occur at the top of an uptrend it

might be a sign of a reversal if this

was to occur in a downtrend on our

pullback it might be a sign that we're

about to continue in trend we're going

to talk about that on a live chart after

i go through the other two candlestick

patterns so next after the 38.2 candle

we have the engulfing candle this is a

candle you've probably heard of and you

may already know how to identify but in

the forex market the way i identify an

engulfing candle is a candle that has a

larger body than the previous candle and

that changes colors so for a bullish

engulfing pattern i need to see that the

previous candle was red that the next

candle is green and that the green

candle has a larger body

than the previous candle that is a

bullish engulfing candle for me we'll

take a look at a bearish engulfing on a

chart so i'm not going to have to do

that right here so

next up we have the close above and

close below candle again all these

candles are used in the same way they're

all either going to be used to help you

identify reversals market sentiment or

help you

enter on trend continuation trades here

we have close above and close below

candle pretty self-explanatory but a

close below candle would be a candle in

which the close

of that candle is below the low

of the previous candle as long as that

happens that to me is showing selling

pressure and the opposite would be true

in the bullish direction we would have

it close above again we'll take a look

at that down on the chart but right now

let's go take a look at a few live

examples of the 38.2 candle first so

here we have a good example of a 382

candle or 38.2 percent candle and what i

want to do is explain to you how all of

these things are already coming together

and we haven't even hit the end of the

video yet what have we learned about

trend trend is when the market is making

new higher lows and higher highs what

have we learned about indicators when

the market's above the 20 period moving

average we are in a highly volatile up

trend what have we learned about support

and resistance the previous level of

resistance

is likely to become support right

now with all of that in mind what did we

just learn

a specific candlestick formation called

the 38.2

candle look right here does this candle

have a long wick let's talk about the

psychology behind it really really

quickly the candle opened here

sellers pushed it all the way down to

the bottom of the wick but buyers took

back over as soon as they happened as

soon as that happened as soon as the

sellers said we're pushing this market

down buyer said hell nah we're pushing

it back up and they did we close up here

closer to the highs this happened while

in an uptrend and

at our area of value being this previous

resistance level now

let's make sure this is a 38.2 percent

candle we have to use a fibonacci

retracement we're pulling it from the

low of the candle

to the high of the candle

and once we do that is this candle the

entire body of it above the 38.2

retracement it is therefore objectively

we have a reason to enter this market

that's what i was talking about when i

said these can be used for entries into

a long-term trend so in this case we

have a long-term uptrend we have a

market at an area of value and we get

our specific entry reason showing us

buying pressure now again we're

combining everything so let's put on our

position tool what if we say okay one

atr how do we play stops with the

volatility of the market that we're

trading right now in the aussie canada

daily chart the atr or average true

range is 66. so let's go down to our

swing low to our swing low is right at

47 pips that plus 66 is 113 pips so we

have a 113 pip stop loss on this

specific trade and let's say we want to

use two times that atr as our target 66

times 2 is 132. so move that up to 132

and we now have our trade setup let's

click play and see what happened

boom hit targets no problem for about a

1.2 to 1 reward to risk ratio i wanted

to do that entire scenario just to show

you how everything is coming together if

you liked that

then make sure to go ahead and smash

that like button you've been watching

this bad boy for like 45 minutes now i

know you've gotten at least some value

out of it so go ahead and click that

like button for me go ahead and comment

as well if you're still here because

that is amazing all right so that is our

382 candlestick pattern let's talk about

how we can use it for reversals and just

to show you that it doesn't always work

i have no idea i've not looked at this

data yet this might work as a reversal

and it may not but right here what do we

have

we have a 382 candle at the top

of an uptrend if this market happened to

be overbought on the rsi check it out it

is

combining other technical factors

looking left for resistance we're not

quite at a level of resistance right now

but this would be an example of the 382

candle and why would it be an example of

that candle because if i pull a

fibonacci retracement from the top of

this candle down to the low of this

candle

is the entire body below the 38.2

retracement yes this is showing a

selling pressure in the same way we

would just set our stop loss one atr

above this candle here and then have a

target somewhere near these levels of

support may not work out or then again

if we had our targets down at this level

of support then it would have worked out

we would have hit those targets right

here so this is how we can use the 38.2

percent candle to help us with entries

on

trend continuation trades and to help us

identify possible reversals let's take a

look at a couple of live examples of the

engulfing candle as well as the clothes

above close below candle but essentially

they all have the same use they're all

going to be used either to spot

reversals or as possible entries and

trend continuation trades to ride the

trend up even further let's go ahead and

look at the engulfing candle on live

charts right now while we were on the

whiteboard we looked at a bullish

example of the engulfing candle so here

we're going to look at a bearish example

and again i want to i want you to see

the things that are coming together on

this trade it is a winning trade yes

it's cherry picked but it has a very

good merit behind it because of the fact

that let's do this one more time what

kind of trend are we in

right now

well according to the 20 period moving

average we're definitely in a downtrend

price is below it are we making new lows

and new lower highs below the 20 period

moving average yes we are here's our

last low new lower low here's our last

high lower high this could be our next

lower high we are at what

the 20 period moving average is that an

area of value or possible area of

resistance yes it is all of those coming

together and then

the entry pattern we can try to use in

trend continuation type trades is what

this engulfing candle as you can see

here an engulfing candle as i explained

earlier is just a candle in the forex

market at least whose body is larger

than the previous candle and i need a

color change green to red that's a color

change is the red body

larger than the green body it is

therefore we have a valid bearish

engulfing candle here for possible entry

into this trend continuation setup

pushing the market further down and

showing us selling pressure next up

we're gonna take a look at the example

of the clothes above candle let's take a

look at that now

here is a good example of a close below

candle this big red candle what happens

here we close below the low of the

previous candle and we do so the wear is

very important like i said you want to

do it in areas of value right we don't

want to just trade random clothes above

and close below candles that's not a

profitable strategy we have to combine a

number of technical factors in order to

create a profitable strategy so in this

case what we have is the top

of an uptrend this market's been heading

higher what you can't see yet we know

this is a valid close below right you

understand that i hope that a close

below is nothing more than a candle that

closes below the low of the previous

candle the opposite's true for a close

above but i want to show you how

everything comes together yet again

because this happening in the middle of

nowhere like it did right here is

irrelevant i'm not trading this just

because we have a close below candle no

i want to trade these in

areas of values such as previous

levels of resistance as you can see my

green or not green sorry my gray box

here is showing that this was a level of

previous resistance that pushed the

market around a ton now that we're back

to this level i have an area of value

this is another good example of how to

use the rsi indicator here we have

a overbought situation

and what do we have we have higher highs

on price but what's the rsi doing if you

remember from the indicators portion of

the lesson what we were talking about in

terms of divergence is higher highs on

price and lower highs on the

is that what we get here yes it is so

with all of these factors coming

together it's a pretty good opportunity

to try to use our close below candle as

an entry on this trade doing so would

look something like this

we have an entry at the close of that

candle the atr is 77 so we have 98 plus

77 we're going to go 177 to make this

easy math 177 for our stop loss

we're going to put a target down at the

previous level of support which is right

here

and we're going to click play to see

what happens here on this specific trade

as you can see the market pushes down

now here's a good reason why we use that

atr for our stop loss if we used a 10

pip stop

above our swing high do you see how

easily we would have been stopped out by

this wick instead we used the atr

indicator combining all of our good

technical factors to help us have a

positive trade here so with that said

that's going to do it for the

candlestick patterns portion and next up

something i like even more than

candlestick patterns and that is

chart patterns so stick around i'll show

you my favorites and how i use them in

the market to help you better understand

the entirety of technical analysis even

more so than you already do i'll see you

in just a second

unlike candlestick patterns that form

with between one to maybe a few candles

a chart pattern is going to form with

between 10 to maybe 50 candles and what

they are are identifiable patterns that

like candlestick patterns can give us an

indication of possible reversals can

give us an indication of market

sentiment and can help us identify

possible entries in the market

chart patterns are by far my favorite

way to enter trades and luckily

even though there are hundreds of chart

patterns and feel free to go study as

many of them as you would like to find

the ones that fit your trading style

best i personally

use one type of chart pattern more often

than any others and for the most part

only utilize this one chart pattern in

my own trading and they are double

bottoms and double tops i said they're

one i know that's two but they're

essentially the same thing just flipped

upside down so before we go through the

way i utilize double bottoms and double

tops in my trading we need objective

rules for this the same way we had

objective rules for candlestick patterns

we have to have objective rules for

chart patterns as well so these double

tops and double bottoms are going to

have objective rules and that's what

we're gonna discuss right now is the

objective rules for these patterns for a

double bottom that's what we're looking

at right now here on the euro yen for

this pattern what i'm looking for and

the way it looks on a chart sorry i

didn't do that before the way it looks

on a chart is a market that comes down

creates a level of support

then bounces up to a level of resistance

but instead of continuing down in this

downtrend we come down we re-test this

level of support

and we're supported yet again so much so

that we push up enough to

break and close above what is called the

neckline so this is bottom number one of

a double bottom bottom number two of a

double bottom this is referred to as the

neckline and that is the

initial pullback from the first bottom

that we need to break in order to

classify this as an actual double bottom

so a way that most traders enter this is

either by

entering exactly

as the market breaks that neckline or

one of my favorite ways to enter and the

way we're going to talk about and

discuss entering today is waiting for

the market to break and close above that

neckline and then getting a pull back

into that neckline the reason i trade

double bottoms like this is because i

can get smaller stops therefore having a

larger reward to risk ratio on these

types of trades so that is how we spot

double bottoms let's go over how we spot

double tops first and then i'm gonna

talk about how i actually use these

patterns to consistently make badass

trades in my own trading let's check out

a double top though so a double top

is going to be when the market pushes up

to a level of resistance

then pushes down in our initial pullback

but instead of continuing this uptrend

we now test that level of resistance

once more and find resistance yet again

the market then

breaks through

the neckline so on a double top we have

top number one right here we have top

number two right here and the support

level that was created after top number

one is known as our neck line we need

that neckline to break to validate that

this is actually a double top and the

way i said we're going to be trading

these today is by waiting on a pullback

after that validation after that break

we want to see a pull back

into

our level of support and that's where

we're going to be placing possible

trades and looking for the continuation

down now before we get into how i use it

i know i said we're going to right after

this i want to talk about those

objective rules so the objective rules i

have for a double bottom let's actually

start there

is

i need to see

the first bottom

and the pullback at the point that i see

this first bottom

and a pullback what i do is place a box

my box

is going to be let me make this way way

more easy hold on here we go okay so at

this point it doesn't look like a double

bottom right but i need an objective

rule for how i'm going to enter a double

bottom so what i do

at this point whenever i see a bounce

like this is i place a box

from

the lowest bodies of this first low to

the lowest low of this first low that is

what i call my termination point what i

want to see is the market re-test this

point

a candle can close inside of this area

a wick can go past this area we could

see

nothing but the wick of a candle touch

this area all of that i would consider a

valid double bottom what i would not

consider a valid double bottom is if we

get a candle but the wick doesn't touch

my area or if we get a pullback and we

see a candle that closes all the way

below my zone those two situations are

no longer a valid double bottom for me

so those are my objective rules for a

double bottom we'll click play here and

see what the market does as you can see

we've now entered into my termination

zone we have not closed below it

therefore we have a valid double bottom

so far still is this valid yes

no candles closed below my zone

therefore i'm still in considering this

a valid double bottom the next thing i

need to see is a break of this neckline

once i see that like we do right there

i'm then waiting

for this market to pull back to that

neckline to place my possible entry once

we do that

and pull back to the neckline i want to

see buying pressure for me buying

pressure is nothing more

than a green candle

once i see buying pressure here's i'm

just explaining to you exactly how i

trade these double bottoms or exactly

how a lot of people trade them i trade

them slightly differently but for the

purpose of this video this is what we're

going to talk about so

i would place an entry there we have a

17 pip

atr right now so 17 plus 30 is 47

47 pips and i want to target my next

level of resistance which is right up

here in this area so at this point we

have our trade setup we've had buying

pressure after a double bottom has been

confirmed by the breakout and a pullback

to the neckline plus buying pressure

okay cool we're in the trade let's see

what happens

eventually pushing up down up down this

is the reality of trading guys you will

be

tortured emotionally during situations

like this but it's just what happens

sometimes while we're trading and there

we go

finally hitting

targets you have to have emotional

fortitude that's something unfortunately

we're not gonna have time to discuss in

this video because it is going to be

well over an hour long i already know

that but

that is how i would trade the double

bottom the double top would be the exact

opposite of that we'll go over that

really quickly you should have a pretty

good idea by now but here on the double

top the only difference is i am putting

a box

let's actually does it sound like i'm

saying pudding

it does to me let's put a

box right there so now what i'm waiting

for for a double top is the market to

push up into an area of resistance and

have a pullback once i have that

pullback i'm placing a box from the

highest bodies of the first top to the

highest wick of the first top this is

what i call my terminations on i want to

see a candle that at least touches that

zone but what i cannot see is a candle

that closes above this zone a candle can

close inside of the zone a wick can go

past the zone the only thing i cannot

see is either a candle not touching it

at all or a candle closing above it so

with that said click play you already

know what this turns out like yes we

have a valid double top and yes we broke

the neckline the way i would trade this

is by waiting on selling pressure at the

neckline as the market pulls back up

clicking play yet again

selling pressure would be this red

candle

stop loss at that point would only need

to go above our swing high and then we

could target whatever we needed to

pushing lower

and that my friends is how i use the

double top and double bottom strategy so

now

you have the rules based approach i take

to spot these patterns the way i enter

them is with buying pressure at the

neckline after the break

the other thing you need to know about

these patterns is they work best

whenever you're aligning yourself with

higher time frame trends so let's say

you're trading these patterns on an

hourly chart if you're trading a double

bottom on the hourly chart and what i

mean by that is you actually see the

double bottom itself on an hourly chart

you want to make sure that the daily

chart is in an uptrend so that way you

are aligned with a daily chart uptrend

while trading a double bottom on a one

hour chart the opposite is true for a

downtrend and a double top if you're

trading a double top on let's say the

one hour chart you want to make sure

that you are aligned with the daily

chart trend you want to make sure the

daily chart is actually in a downtrend

while you're trading that double top on

a lower time frame this is going to add

an amazing amount of accuracy to your

double top and double bottoms trade

double bottom trades it'll also add

accuracy to any other chart patterns

that you decide you want to add to your

trading arsenal

so that's gonna do it for the chart

patterns portion of this lesson next up

we got breakout patterns so we're gonna

go ahead take a look at some breakout

patterns and how i like to use them in

my own trading to make the best trading

decisions possible

i'll see you there

breakout patterns are when the market

goes from a low period of volatility to

a much higher period of volatility we

see that a lot on uptrends and

downtrends what we see is impulsive

moves the market makes a large move to

the upside and then we see a small

period of consolidation before the next

large move to the upside we call these

flag patterns we're going to talk about

those in just a second we also see this

in the form of what i trade and call and

what is called i guess you could say

ascending and descending wedges what

this means an ascending wedge is when

price has a level of resistance that it

cannot get above but as it's testing

that level of resistance the support

level is rising so that means that

buyers are coming in sooner and sooner

at higher and higher prices until

eventually that pattern breaks out to

the upside and a descending wedge is the

opposite we have a level of support we

have lower highs coming in showing that

sellers are stepping in sooner and

sooner at lower and lower prices and

eventually

that breakout level gives way to what we

call an ascending and descending wedge

breakout pattern those are the two

breakout patterns i personally use the

most there are many more breakout

patterns that you are free like

everything else in this video to go

study on your own but i want to talk

about the ones i'm actually familiar

with and the ones that i personally use

so let's take a look first off

at flag patterns let's talk first how do

we use flag patterns we now know what

flag patterns are how do you use them

well i use them to capitalize on

volatile trends what did we talk about

earlier a volatile trend

oftentimes stays above the 20-period

moving average as you can see on the

chart here we have price staying above

the 20-period moving average so the way

i like to use

a flag pattern is if we are staying

above the 20-period moving average and

we've just had an impulsive move to the

upside then i want to draw out a flag

pattern on my period of consolidation

after that period of consolidation we

get what is known as a breakout candle

this breakout candle breaks the top

trend line of that period of

consolidation and this is when most

traders decide to enter on a flag

pattern trade i'm going to give you some

specific rules in just a second but

let's take a look at one more example we

have another situation here where the

market's continuing in trend we make an

impulsive move that breaks above

previous resistance we then see this

market have a period of consolidation

this pullback that as you can see looks

like a flag right we have the poll which

is normally the amount of price the

impulsive leg before the period of

consolidation we have a small period of

consolidation then we have our breakout

candle and the market continues in that

uptrend this happens time and time again

in volatile trends and that's how we can

take advantage of flag patterns and

volatile trends now

just as with everything in our trading

we need to have some objective rules

here so for me one of the best objective

rules i have found when trading flag

patterns is that i want to only trade

these patterns

when they happen

above

or near

the 20 period moving average that's the

only time i can actually place trades

based on flag patterns because the 20

period moving average acts as my filter

for highly volatile trends and i only

want to take flag pattern breakout

trades if the trend is highly volatile

because that's my best chances of having

a move higher and for stops and targets

we'll go and discuss those you should

have a pretty good idea where do you

think i would put stops and targets if

my entry candle is this breakout candle

right here what do you think i would do

for stops

i would have my stop loss below the

previous low by what

one atr as we discussed earlier so let's

go ahead and set this trade up it would

look something like this

and a target up here at the previous

level of resistance right here so at

this point you know exactly how i trade

bullish flags this video has gotten well

over an hour long so i'm not going to do

an example of a bearish version of this

just flip it upside down it's literally

the same exact thing in the opposite

direction in terms of a bearish flag

pattern we'd be waiting on the market to

head down with an impulsive move head

down with an impulsive move we would be

trading this small period of

consolidation on a breakout

of that period of consolidation to the

downside we'd be selling or going short

so that is

again how i trade flag patterns let's

take a look now at another breakout

pattern that i really enjoy using which

is the ascending and descending wedge

here is an ascending wedge and unlike

flag patterns that take just a few

candles to set up these types of

patterns normally take anywhere between

20 and 50 maybe even 100 candles to

actually set up their larger patterns

but essentially what we're looking for

with a wedge pattern is a level of

resistance

that the market is having trouble

getting past but at the same time we're

having trouble getting past this level

of resistance we want to see sellers

stepping in at higher prices what this

is showing us is that excuse me i said

sellers i've met buyers we don't see

buyers stepping in at higher prices what

this is showing us is that buyers are

more and more interested in this

currency pair stock crypto whatever it

may be they're more interested in higher

prices and as we continue to make these

higher lows the not inevitable but

likely scenario is that eventually we

bust through this level of resistance

because sellers eventually give up

trying to push the market down from this

level of resistance as their pushes down

gets smaller and smaller and we get

higher and higher lows they eventually

give up and when they do it looks

something like this we get a breakout of

that level now one of my favorite ways

to trade this is on the pullback almost

like the double top and double bottom we

were looking at earlier but a lot of

traders trade on the breakout candle

that we can see right here the way i

like to trade them is after this

breakout i like to wait for a pullback

back into my zone

of resistance when i get that pullback i

look for buying pressure what do i

define as buying pressure a green candle

so once i pull back to that zone and get

a green candle that is when i

personally we'll enter the trade so now

we have a pull back into the zone

waiting for a green candle boom

personally i would be entering into the

trade here we'll go ahead and do the

trade setup we've had all of our rules

met for an ascending wedge we have a

level of resistance that is acted as

resistance multiple times we have rising

support levels coming into that level of

resistance we now have a breakout of

that level and a pullback to

that level of resistance at this point

yet again whenever i find buying

pressure here that is when i want to

place a trade because of the fact that i

waited for the pullback i can now have a

much smaller stop loss based on this

previous swing low

so i have an atr of 36 pips on my entry

candle i want to be 36 below

my swing low so 39 let's go 40 plus 36

is 76 pips

76 pips would be about right here

with that being the case where is my

target going to go if i

place targets based on structure the

next level that looks to be

a major level of structure support or

resistance is right there so let's see

what that would look like do i get more

than a one to one reward risk i get

about a one-to-one reward to risk ratio

maybe move stops at break even when the

market hits that price right and then

continue with the position let's see

what happens

we push up

we push back down stopped out for break

even or

we watch the market continue and

eventually push higher but that

regardless of how that trade worked out

is how i would be trading ascending

wedges and the exact opposite is true

again this video is getting very long so

just flip that over what we're looking

for for a

bearish version a descending triangle is

nothing more than a level of support

that's hit multiple times while we have

falling resistance levels or falling

swing highs falling swing highs plus the

same level of support is going to give

us a descending triangle descending

triangles once broken to the downside

are likely to continue in that direction

personally i wait on this pullback to

come back into that level sometimes it

doesn't happen and i miss out on some

trades but it gives me a better reward

to risk setup so i like to wait on that

pullback in terms of getting a better

reward to risk on these trades so

i would love to be able to tell you that

this is all you need and now you can go

out there and trade and make money quit

your day job and you'll be good to go

from here on out

unfortunately

that is not the case unfortunately

just understanding technical analysis

isn't enough although in this video i

did share everything you need to know

about technical analysis i did not and

was not able to in one video share

everything you need in order to be a

consistently profitable trader but

luckily we do have some space available

in our mentorship program so if you

would like to learn

the exact combination of technical

factors i use that i call a strategy the

exact strategies that i use every single

day in the market if you would like

mentorship from me personally with any

questions you have about the course that

we have that we offer or about forex in

general if you would like to receive a

video every single week of the trade

setups that i'm looking to take

throughout that week along with much

much more including an entire course

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aspects of trading outside of technical

analysis which are trading psychology

and risk management if you want access

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training program if not that is totally

fine too you now have everything you

need to know about technical analysis

combine some of these technical factors

to create your own strategy take that

strategy back test it create risk

management plan around it and

work on your trading psychology demo

trade for a while so that you get

confident and consistent

probably you need to look up some videos

on this if i was you i would literally

go

on youtube look up risk management if

you only know technical analysis now and

you're a complete beginner go on youtube

look up risk management look up trading

psychology try to implement those into

all everything that you've already

learned then create a strategy out of

everything you've already learned by

combining a bunch of these technical

factors and try demo trading that for a

while to see if you can actually create

a profitable three months with a

rules-based strategy if you can hats off

to you you're doing better than 95 of

traders and then you can choose when you

would like to take your trading live as

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check that out if you want some more

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not totally fine too make sure you click

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subscribed i am so tired

right now because i've been doing this

video for like eight and a half hours

that i am out

and i'll see you guys in the next video

talk soon