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These are the user uploaded subtitles that are being translated: 1 00:00:00,060 --> 00:00:05,310 Hello, traders, and this session we'll be learning about head and shoulders pattern. 2 00:00:07,990 --> 00:00:13,930 Traders, have you read or heard about this pattern, if you have been trading for a long time, then 3 00:00:13,930 --> 00:00:16,960 for sure you would have heard or come across this pattern. 4 00:00:18,080 --> 00:00:24,260 Maybe you would have read about it in books, audio to watch videos about it, even if you have not 5 00:00:24,260 --> 00:00:25,110 heard about it. 6 00:00:25,580 --> 00:00:29,650 No problem, because today we are going to learn about this pattern. 7 00:00:30,080 --> 00:00:37,310 And also I'll be showing you how to have a competitive edge while working on head and shoulders pattern. 8 00:00:37,640 --> 00:00:41,060 OK, so let us start credentialled. 9 00:00:41,080 --> 00:00:45,350 The pattern can be formed during an upturn as well as downtrend. 10 00:00:45,800 --> 00:00:52,810 First, let's see how this pattern looks while working on uptrend when we are looking for buying opportunity 11 00:00:52,810 --> 00:00:59,720 in head and the pattern we call it as head and shoulders pattern bullish, which can also be called 12 00:00:59,720 --> 00:01:04,370 as inverse head and shoulders pattern traders watch closely. 13 00:01:12,290 --> 00:01:18,500 As of now, does just a drawing the head and shoulders pattern look somewhat similar to this? 14 00:01:19,600 --> 00:01:21,010 This is called a left shoulder. 15 00:01:23,960 --> 00:01:25,130 This is called as the Head. 16 00:01:29,320 --> 00:01:30,780 And this is my right shoulder. 17 00:01:32,860 --> 00:01:38,500 OK, now to consider this as the head and shoulders pattern, there are two conditions. 18 00:01:38,890 --> 00:01:42,870 The first condition is we need to have similar tops. 19 00:01:43,870 --> 00:01:45,190 So what do I mean by this? 20 00:01:47,790 --> 00:01:54,480 If I draw a trend line like this, can you see the height of all these scandals is somewhat similar. 21 00:01:55,380 --> 00:01:57,210 It has to be similar like this. 22 00:01:57,930 --> 00:02:01,070 This trend line is also called Nicklen. 23 00:02:01,860 --> 00:02:06,210 OK, remember this, but in the actual market. 24 00:02:07,190 --> 00:02:09,170 This is also considered as Nicklen. 25 00:02:10,270 --> 00:02:17,620 But this also can be considered as Nicklen, there might be 20 to 30 percent difference because in actual 26 00:02:17,620 --> 00:02:20,170 market traders make these patterns. 27 00:02:20,830 --> 00:02:22,270 We need to understand this. 28 00:02:22,320 --> 00:02:22,750 OK. 29 00:02:23,960 --> 00:02:30,800 Second condition is left shoulder debt has to be treated in the right shoulder debt. 30 00:02:32,290 --> 00:02:34,690 My left shoulder depth is so much. 31 00:02:38,140 --> 00:02:41,230 This has to be greater than the right shoulder depth. 32 00:02:42,920 --> 00:02:43,760 Which is this? 33 00:02:45,310 --> 00:02:46,990 Can you see the difference in depth? 34 00:02:49,280 --> 00:02:53,600 This is my second point, if both of this condition is met. 35 00:02:55,470 --> 00:02:59,230 Then we call it as head and shoulders pattern, OK? 36 00:03:00,240 --> 00:03:02,580 I hope you have understood the explanation so far. 37 00:03:03,550 --> 00:03:10,870 Now, I'll be showing you how gentle people are still following the old method by reading books or watching 38 00:03:10,870 --> 00:03:17,830 videos of so-called experts, I will use red color to try and show you how gentle people train. 39 00:03:20,000 --> 00:03:21,230 Does the left shoulder. 40 00:03:25,010 --> 00:03:25,760 Does the head. 41 00:03:28,770 --> 00:03:30,330 And this is the right shoulder. 42 00:03:32,700 --> 00:03:36,750 If their stock forms a candle like this about the right shoulder level. 43 00:03:39,790 --> 00:03:41,020 With good volume. 44 00:03:43,220 --> 00:03:44,690 And break out like this. 45 00:03:48,440 --> 00:03:51,260 They will take entry at the height of the breakout and. 46 00:03:53,190 --> 00:03:57,270 And target, they will keep the length of the head, which is this much. 47 00:03:58,770 --> 00:04:04,080 They will take it as much as target and place it about their entry price. 48 00:04:08,360 --> 00:04:11,090 And Stop-Loss, they will keep below the right shoulder. 49 00:04:13,200 --> 00:04:15,210 Traders, are you aware of the strategy? 50 00:04:16,680 --> 00:04:23,160 People have been following the same pattern after reading about it from books or learning it from people, 51 00:04:23,160 --> 00:04:29,070 so-called experts today will be learning a new way to train head and shoulders pattern. 52 00:04:29,260 --> 00:04:31,620 OK, so let us start. 53 00:04:32,730 --> 00:04:36,420 First, we need to wait for the candidate to form left shoulder. 54 00:04:40,870 --> 00:04:43,690 When the stock is in halfway to the right shoulder like this. 55 00:04:45,560 --> 00:04:47,000 We will draw a trend line. 56 00:04:48,030 --> 00:04:51,530 As soon as we get a breakout, kind of let us along with Walthall. 57 00:04:54,250 --> 00:04:57,880 We will enter the trade at the height of the breakout candidate. 58 00:04:59,610 --> 00:05:02,970 And Stop-Loss, we will keep at the low of the breakout and. 59 00:05:04,880 --> 00:05:10,970 And the target will be here, the same place where a lot of people are thinking about entering the trade. 60 00:05:11,880 --> 00:05:17,520 At this level, you will exit 80 percent of the quantity and your profit. 61 00:05:19,160 --> 00:05:26,150 For the balance, 20 percent of quantity, we will keep Stop-Loss about our buying price, which can 62 00:05:26,150 --> 00:05:26,740 be here. 63 00:05:30,240 --> 00:05:31,290 Why do we do this? 64 00:05:32,190 --> 00:05:37,560 Because in case the market goes up, we will be able to make extra profit. 65 00:05:37,920 --> 00:05:43,560 But even if the market goes down, we will still be in profit because the stop loss of the balance, 66 00:05:43,560 --> 00:05:47,520 20 percent quantity is about our entry price. 67 00:05:47,820 --> 00:05:48,240 Correct. 68 00:05:48,630 --> 00:05:49,700 Did you get my point? 69 00:05:49,980 --> 00:05:55,350 If you find this confusing, then just go a little back in the video and watch this. 70 00:05:55,850 --> 00:05:57,210 You will get full clarity. 71 00:05:57,630 --> 00:06:02,340 Now, traders, what can be the reason for me to tell you to buy at this level? 72 00:06:02,640 --> 00:06:06,150 There should be a valid reason for me to enter the trade at this level. 73 00:06:06,150 --> 00:06:06,490 Right. 74 00:06:06,900 --> 00:06:08,080 What can be the reason? 75 00:06:08,430 --> 00:06:10,230 Now watch closely, Lou. 76 00:06:11,040 --> 00:06:11,420 Hi. 77 00:06:11,640 --> 00:06:11,940 Hi. 78 00:06:11,950 --> 00:06:12,330 Hello. 79 00:06:12,540 --> 00:06:12,910 Hi. 80 00:06:12,930 --> 00:06:13,230 Hi. 81 00:06:13,430 --> 00:06:13,760 Hi. 82 00:06:14,330 --> 00:06:14,720 Hi. 83 00:06:14,720 --> 00:06:14,940 Hi. 84 00:06:15,540 --> 00:06:17,640 Then breakout with volume confirmation. 85 00:06:21,400 --> 00:06:22,660 What strategy is this? 86 00:06:25,830 --> 00:06:28,190 This is a second strategy, correct? 87 00:06:31,550 --> 00:06:36,590 We have complete one hour lecture about the strategy, not course, right? 88 00:06:37,190 --> 00:06:41,000 We have discussed how to enter and exit the trade and the strategy. 89 00:06:41,990 --> 00:06:45,700 So this is the reason for us to enter the street at this level. 90 00:06:46,180 --> 00:06:53,110 Traders, I hope you have understood this now why we enter the trade at this level right now. 91 00:06:53,120 --> 00:06:57,600 Let's see some examples in the market and see how Satija works. 92 00:06:58,430 --> 00:07:03,560 Trade as a first example sale in India, daily timeframe, OK. 93 00:07:05,360 --> 00:07:06,560 This is my left shoulder. 94 00:07:07,980 --> 00:07:08,760 This is my head. 95 00:07:10,920 --> 00:07:12,260 And this is my right shoulder. 96 00:07:13,760 --> 00:07:21,580 OK, left shoulder, head and my right shoulder to consider this as the head and shoulders pattern, 97 00:07:21,800 --> 00:07:22,600 what do we need? 98 00:07:23,240 --> 00:07:24,680 We need similar top. 99 00:07:26,700 --> 00:07:28,800 So if I draw a train line like this. 100 00:07:30,560 --> 00:07:33,130 Can you see they have similar top, correct? 101 00:07:33,830 --> 00:07:36,210 Now let's understand what gentle people do. 102 00:07:39,290 --> 00:07:46,520 See, traders, this trend line is also called Nicklen, OK, when this Nicklen breaks, the stock gives 103 00:07:46,520 --> 00:07:47,140 up Precourt. 104 00:07:47,600 --> 00:07:52,910 Can you break out here once a lot of traders, so they go to break out. 105 00:07:54,750 --> 00:07:55,980 Can you see the volume? 106 00:07:58,960 --> 00:08:05,710 How many people have entered the trade with the belief that the market will go up, but what did the 107 00:08:05,710 --> 00:08:06,340 market do? 108 00:08:08,620 --> 00:08:13,130 The market went down after going down what the market did. 109 00:08:14,020 --> 00:08:16,090 It took the stop loss of all the people. 110 00:08:18,060 --> 00:08:25,380 At this level, whoever had kept stock losses to cover all the stock losses, now, can you understand 111 00:08:26,070 --> 00:08:34,130 how people are following the same old pattern for a very long time, all the smart traders or big operators 112 00:08:34,140 --> 00:08:37,350 you can see, they understand that people will buy here. 113 00:08:37,620 --> 00:08:38,610 So what do they do? 114 00:08:39,250 --> 00:08:40,650 They make the market go up. 115 00:08:42,040 --> 00:08:51,270 And then a big fall and they take over everybody stop losses, but you price action traders, right? 116 00:08:51,490 --> 00:08:53,090 You understand this job. 117 00:08:53,350 --> 00:08:56,200 So what you do, you follow a strategy. 118 00:08:56,620 --> 00:08:57,880 A strategy is what? 119 00:09:05,900 --> 00:09:07,780 Hi at this hi. 120 00:09:07,790 --> 00:09:08,150 Hi. 121 00:09:09,920 --> 00:09:18,570 You wait for Precourt, so you get breakout, this breakout is also with Walloon confirmation credit, 122 00:09:18,630 --> 00:09:20,630 as you remember type two strategy, right? 123 00:09:21,320 --> 00:09:23,060 Breakout with volume confirmation. 124 00:09:27,280 --> 00:09:32,830 Now, our entry will be at the height of the blackout scandal, as Stop-Loss will be at the law of the 125 00:09:32,830 --> 00:09:36,430 blackout scandal, which is here at Target, will be. 126 00:09:38,120 --> 00:09:40,490 Where a lot of people enter the train. 127 00:09:42,870 --> 00:09:49,250 We already have seen where a lot of people enter the trade right after the breakout, you see volume, 128 00:09:50,250 --> 00:09:52,790 that is where a lot of people have entered the trade. 129 00:09:53,430 --> 00:09:55,860 So you will keep your target as this. 130 00:10:00,010 --> 00:10:09,580 At this level, you will book 80 percent of the profit, at this level, you will book 80 percent of 131 00:10:09,580 --> 00:10:10,250 the profit. 132 00:10:11,140 --> 00:10:13,420 So what do I mean by this letter? 133 00:10:13,480 --> 00:10:14,470 Said the code. 134 00:10:14,620 --> 00:10:16,900 You bought 10 quantity of the stock. 135 00:10:18,630 --> 00:10:22,710 As much as 80 percent of the stock eat, correct? 136 00:10:24,250 --> 00:10:26,720 So eight quantity, you will exit here. 137 00:10:27,250 --> 00:10:31,840 So the balance to quantity, that is 20 percent. 138 00:10:32,880 --> 00:10:38,920 For the balance, 20 percent, you will keep Stop-Loss above your entry price. 139 00:10:39,440 --> 00:10:39,930 OK. 140 00:10:40,930 --> 00:10:41,670 And with. 141 00:10:42,810 --> 00:10:49,900 For this 20 percent, if the market goes even higher, we will try to extract those profits as well. 142 00:10:49,980 --> 00:10:55,860 But if it goes down, no problem, it will be above our buying price, right. 143 00:10:56,070 --> 00:10:57,630 Anyways, you will make profit. 144 00:10:58,110 --> 00:10:59,370 This is my suggestion. 145 00:10:59,760 --> 00:11:04,620 But if you want to book your hundred percent profit here, you can absolutely do that. 146 00:11:04,980 --> 00:11:08,040 OK, so let us see one more example. 147 00:11:11,570 --> 00:11:16,840 Critter's a second example, is calling the daily Time-frame to my left shoulder. 148 00:11:18,290 --> 00:11:19,100 Does my head. 149 00:11:21,820 --> 00:11:22,920 To my right shoulder. 150 00:11:24,020 --> 00:11:25,760 So I've drawn a line like this. 151 00:11:30,570 --> 00:11:37,140 Traders have already told you in the market straight line will not come all the time, sometimes there 152 00:11:37,140 --> 00:11:39,210 might be 20, 30 percent difference. 153 00:11:39,640 --> 00:11:40,070 OK. 154 00:11:43,660 --> 00:11:48,880 So let's see what happened here at this Nicklen breakout Ganassi volume. 155 00:11:50,960 --> 00:11:55,180 So there was a breakout with volume, what will gentle people do? 156 00:11:58,010 --> 00:12:02,540 The gentle people will enter at the height of the blackout Kindle store, plus they will keep at the 157 00:12:02,540 --> 00:12:04,300 low of the breakout cattle rate. 158 00:12:04,820 --> 00:12:09,410 But to what happened, the market went a little up and then it went down. 159 00:12:10,220 --> 00:12:11,300 Exactly. 160 00:12:12,220 --> 00:12:13,070 Exactly. 161 00:12:13,150 --> 00:12:13,540 Kim. 162 00:12:14,830 --> 00:12:20,740 Took all the losses after taking desktop losses, the market went up. 163 00:12:22,380 --> 00:12:24,470 Traders do think this is coincidence. 164 00:12:26,270 --> 00:12:31,720 The market coming down exactly at these stop losses where a lot of people would have kept. 165 00:12:33,760 --> 00:12:35,230 It had this topless. 166 00:12:36,360 --> 00:12:38,400 And going up, what do you think? 167 00:12:40,560 --> 00:12:44,700 This is not at all a coincidence, but we are price action traders, right? 168 00:12:44,760 --> 00:12:45,620 What will we do? 169 00:12:47,000 --> 00:12:47,750 Does my law. 170 00:12:49,200 --> 00:12:49,850 This is my. 171 00:12:51,050 --> 00:12:52,190 It is my Hielo. 172 00:12:53,420 --> 00:12:57,260 And this is my high right at this level. 173 00:12:58,740 --> 00:13:01,260 I will draw a line like this. 174 00:13:02,770 --> 00:13:03,850 This line. 175 00:13:05,130 --> 00:13:06,660 Has given me a breakout. 176 00:13:09,060 --> 00:13:10,260 Can you see the breakout? 177 00:13:13,210 --> 00:13:18,070 This breakout is with volume confirmation, we will enter a day of the breakout, Kendall. 178 00:13:19,210 --> 00:13:21,250 Stop-Loss is the law of the blackout, Kendal. 179 00:13:22,780 --> 00:13:26,140 Today, it will be a lot of people are entering. 180 00:13:29,070 --> 00:13:38,070 When breakout happens, when you see volume that lot of people have entered you, you will exit 80 percent. 181 00:13:42,180 --> 00:13:44,340 Eighty percent of your total value. 182 00:13:46,000 --> 00:13:48,850 You will exit and the remaining 20 percent. 183 00:13:49,960 --> 00:13:51,670 We'll keep Stop-Loss on right here. 184 00:13:53,450 --> 00:13:55,430 And then wait for the market to go up. 185 00:13:58,380 --> 00:14:05,400 In case the market goes up, you will have extra profit, but if you wish to take all 100 percent profit 186 00:14:05,400 --> 00:14:09,510 here, you can do that the remaining 20 percent, you'll just leave it like that. 187 00:14:09,930 --> 00:14:15,990 And Stop-Loss will be above whatever price you bought here so that even if you lose this trade. 188 00:14:17,220 --> 00:14:19,490 Still, you will be in profit, right? 189 00:14:19,920 --> 00:14:24,420 So this was a second example, traders, I would like to explain something to you. 190 00:14:24,990 --> 00:14:29,850 With your train line, we get a breakout with volume confirmation. 191 00:14:30,960 --> 00:14:35,750 We enter the trade and we exit the trade when a lot of people are entering. 192 00:14:38,290 --> 00:14:43,310 Does this matter, which I have told you today, you will not learn it anywhere else. 193 00:14:43,480 --> 00:14:48,580 All the books you read or the readers that you watch, everyone will tell you to buy. 194 00:14:48,580 --> 00:14:55,060 At the Nicklen breakout, even my mentor told me to buy the Nicklen prickled after losing a lot of trade 195 00:14:55,060 --> 00:15:01,450 following the old method, we started back testing and figured out this method, which you have learned 196 00:15:01,450 --> 00:15:01,810 today. 197 00:15:01,990 --> 00:15:03,080 This isn't my age. 198 00:15:03,220 --> 00:15:05,970 We are made good amount of profits following this. 199 00:15:06,160 --> 00:15:12,760 The main reason you're watching a course is to learn something new so that you can be better at reading. 200 00:15:12,910 --> 00:15:13,330 Right. 201 00:15:13,630 --> 00:15:18,970 What is the point of AM teaching you the same things that are in the books, which is old method and 202 00:15:18,970 --> 00:15:20,110 do not work anymore? 203 00:15:20,280 --> 00:15:26,500 What we need to be smart when we are trading, when we are smart and we do hard work, the market will 204 00:15:26,500 --> 00:15:27,820 reward us very well. 205 00:15:28,100 --> 00:15:28,540 OK. 206 00:15:32,780 --> 00:15:39,560 Let's see some example on a lower timeframe, I'm taking Bank Nifty as an example, one minute time 207 00:15:39,560 --> 00:15:39,860 frame. 208 00:15:41,160 --> 00:15:43,310 OK, this is my left shoulder. 209 00:15:45,500 --> 00:15:46,310 Does my head. 210 00:15:49,280 --> 00:15:50,410 This is my right shoulder. 211 00:15:52,220 --> 00:15:54,260 If I draw a nicklen, letus. 212 00:15:59,560 --> 00:16:01,060 Commentary, what they will do. 213 00:16:02,440 --> 00:16:07,830 They will enter at the height of the blackout when they get volume confirmation, if you go to futures 214 00:16:07,840 --> 00:16:10,040 and see, you will get to know that there is volume here. 215 00:16:10,930 --> 00:16:11,710 Does Milo. 216 00:16:12,740 --> 00:16:13,520 This is my high. 217 00:16:14,720 --> 00:16:16,220 This dodgy candle is my high. 218 00:16:17,450 --> 00:16:18,710 This became my Hielo. 219 00:16:20,530 --> 00:16:21,810 To speak in my heart. 220 00:16:23,350 --> 00:16:24,580 This became my Hielo. 221 00:16:27,980 --> 00:16:31,310 At this level, if I draw a trend line like this. 222 00:16:36,020 --> 00:16:43,070 I'm getting a breakout, this breakout is with William Confirmation, you can go and check espera strategy 223 00:16:43,160 --> 00:16:45,100 ARANTES should be here, right? 224 00:16:45,170 --> 00:16:52,130 I have to play up and the target will be where a lot of people are entering right here. 225 00:16:54,070 --> 00:16:59,720 Now, let's speak about the issue that happens when we are working with partners on a war time frame. 226 00:17:00,100 --> 00:17:01,960 If you're working on one minute check. 227 00:17:03,240 --> 00:17:06,030 Right, can accomplish topless at the law of the candle. 228 00:17:07,900 --> 00:17:15,820 No, right, you need to give Buffer if you're trading on a lower timeframe, that is one minute to 229 00:17:15,820 --> 00:17:18,620 minute three minute four, five. 230 00:17:19,270 --> 00:17:20,710 We need to give buffer. 231 00:17:23,300 --> 00:17:25,320 If I have to give Baffo, can I give it here? 232 00:17:25,410 --> 00:17:26,010 No, right. 233 00:17:26,660 --> 00:17:28,040 It has to be somewhere here. 234 00:17:30,170 --> 00:17:31,640 Or here, right? 235 00:17:34,050 --> 00:17:38,420 Thank you so much for my stop loss, can I exit the trade here? 236 00:17:40,260 --> 00:17:47,400 No, right, because the risk to reward ratio will be very low in this example, you can see the market 237 00:17:47,400 --> 00:17:50,570 going up and things like that, that doesn't matter. 238 00:17:52,100 --> 00:17:55,880 There's just a one time thing because of poor ratio. 239 00:17:57,080 --> 00:18:03,830 OK, because of poor Ahrari issue, we cannot trade with batons or no overtime. 240 00:18:04,670 --> 00:18:07,070 But if you're working on a ten minute time frame. 241 00:18:09,040 --> 00:18:12,800 There is no need to buffer up to this level, right? 242 00:18:13,300 --> 00:18:17,350 You can keep a buffer at the low of the breakout candle itself at that time. 243 00:18:17,350 --> 00:18:24,430 If you enter the trade, you will get good at any time frame after 15 minutes is suitable for swing 244 00:18:24,430 --> 00:18:24,880 trading. 245 00:18:25,690 --> 00:18:26,160 OK. 246 00:18:28,260 --> 00:18:34,170 So in swing trading, also, that time, your target can be achieved and you will get good risk to reward 247 00:18:34,170 --> 00:18:38,950 ratio, but on a lower timeframe, let us ignore this pattern. 248 00:18:40,650 --> 00:18:47,050 Until now, we saw some examples of residential, the pattern on a bullish market right now, let's 249 00:18:47,050 --> 00:18:49,560 see some examples of bearish market. 250 00:18:50,850 --> 00:18:53,730 So what happens in potentially the British market? 251 00:18:55,170 --> 00:18:57,690 The candlesticks will form a pattern like this. 252 00:19:00,870 --> 00:19:04,200 Completely opposite to bullish head and shoulders pattern. 253 00:19:07,610 --> 00:19:12,700 This is the left shoulder to the head and does the right shoulder. 254 00:19:13,680 --> 00:19:15,780 As of now, this is destroying. 255 00:19:16,870 --> 00:19:21,130 To consider this as a head and shoulders pattern, there are two condition. 256 00:19:24,620 --> 00:19:26,960 First one, similar tops. 257 00:19:28,710 --> 00:19:29,760 Which is formed here. 258 00:19:32,230 --> 00:19:38,880 And then the depth of the left shoulder has to be greater than the depth of the right shoulder. 259 00:19:40,810 --> 00:19:42,750 If the condition one and two are meant. 260 00:19:43,840 --> 00:19:49,750 Then we call it as bearish, identical, the pattern, how do gentle people trade, they wait for the 261 00:19:49,750 --> 00:19:51,910 head and shoulders pattern to be formed like this. 262 00:19:54,480 --> 00:19:56,280 As soon as the Nicklen breaks. 263 00:19:57,590 --> 00:20:00,020 And the Bricktown candle is formed with the volume. 264 00:20:02,380 --> 00:20:06,520 They will enter the law of the president, Kanwal, which has given volume. 265 00:20:09,170 --> 00:20:11,920 Target, they will keep same as the length of the head. 266 00:20:19,250 --> 00:20:20,600 But how will we treat? 267 00:20:22,020 --> 00:20:25,080 We will wait for the left shoulder and the head to be formed. 268 00:20:29,450 --> 00:20:35,980 And at the middle of the right shoulder, we will draw a trend line as soon as we get a break down with 269 00:20:35,990 --> 00:20:36,500 volume. 270 00:20:38,900 --> 00:20:42,050 We will enter the trade at the law of the president, Kendall. 271 00:20:43,160 --> 00:20:45,590 Stop-Loss at the height of the breakdown, Kandal. 272 00:20:47,180 --> 00:20:50,570 And Target will be where general people enter the train. 273 00:20:55,040 --> 00:20:56,720 Now, let's see some examples. 274 00:20:59,280 --> 00:21:04,830 It as a first example for Don Trent, head and shoulders pattern, as I shall Motor Daily Time-frame. 275 00:21:06,940 --> 00:21:08,170 See, this is the Nicklen. 276 00:21:11,060 --> 00:21:12,180 This is my left shoulder. 277 00:21:14,250 --> 00:21:15,000 Does my head. 278 00:21:16,070 --> 00:21:20,860 This is my right shoulder, and Nicklen got broken than what general people will do. 279 00:21:22,450 --> 00:21:24,580 The gender people entered in the scandal. 280 00:21:26,560 --> 00:21:27,520 District, Candy. 281 00:21:28,630 --> 00:21:29,800 Can you see the volume? 282 00:21:29,830 --> 00:21:31,300 How many people have entered? 283 00:21:32,760 --> 00:21:38,610 But let's understand what happened the next day, the next day, the market opened only at the slowly. 284 00:21:40,700 --> 00:21:42,200 After people entering here. 285 00:21:43,650 --> 00:21:51,170 The next day, the market opened only at this level making extra loss for people at this level. 286 00:21:55,780 --> 00:22:02,290 A lot of people will keep the depth of the haters the target, right, so they would like Target here 287 00:22:02,530 --> 00:22:08,620 somewhere similar to the depth of the head, what the market did, it opened only in Capetown. 288 00:22:09,160 --> 00:22:13,420 And then the market went up and it took over everybody. 289 00:22:13,420 --> 00:22:15,760 Stop-Loss, who would accept it at this level. 290 00:22:17,010 --> 00:22:21,780 People went to what I kept a Stop-Loss here, right here or here. 291 00:22:23,110 --> 00:22:25,190 It took over all the Stop-Loss. 292 00:22:25,900 --> 00:22:26,750 Then what happened? 293 00:22:27,310 --> 00:22:33,580 The market went to the market can be so brutal to you if you just keep following the old method. 294 00:22:34,880 --> 00:22:40,940 Because everybody knows this is what is going to happen, whoever is new to trading will keep following 295 00:22:40,950 --> 00:22:41,290 this. 296 00:22:41,510 --> 00:22:46,160 They will lose all the money at this level and then they will see trading is a gamble. 297 00:22:47,380 --> 00:22:49,360 Right, but what will we do? 298 00:22:49,870 --> 00:22:51,610 Hi, Lou. 299 00:22:53,070 --> 00:22:53,790 Lubi. 300 00:22:55,090 --> 00:22:55,750 Lobolo. 301 00:22:57,600 --> 00:22:58,500 At this level. 302 00:23:00,280 --> 00:23:01,490 We will draw a trend line. 303 00:23:01,900 --> 00:23:02,890 We got to break down. 304 00:23:05,520 --> 00:23:08,460 This breakdown is with volume confirmation. 305 00:23:10,290 --> 00:23:16,200 Can you see the volume of this scandal is higher than the previous candle we have discussed completely 306 00:23:16,200 --> 00:23:17,590 about this in the previous lecture? 307 00:23:18,320 --> 00:23:18,680 Right. 308 00:23:18,960 --> 00:23:20,370 So our entry will be here. 309 00:23:22,470 --> 00:23:28,350 Love the pregnant Kandal Stop-Loss will be here at the height of the Bricktown candle. 310 00:23:30,180 --> 00:23:34,200 Our target will be where general people the at this candle. 311 00:23:35,880 --> 00:23:42,390 Will be a target with a booked to profits before the market reacted, let's take. 312 00:23:43,500 --> 00:23:49,740 We can book 80 percent of the profit here or hundred percent that is left to you, if you had booked 313 00:23:49,740 --> 00:23:55,380 80 percent profit here and 20 percent of their stock, if you would have just left it like that, it 314 00:23:55,380 --> 00:23:56,570 would have gone even lower. 315 00:23:56,760 --> 00:23:59,780 You could have booked extra 20 percent profit somewhere here. 316 00:24:00,510 --> 00:24:00,840 Right. 317 00:24:01,230 --> 00:24:03,000 So this was our first example. 318 00:24:03,930 --> 00:24:05,610 Now, let us the second example. 319 00:24:09,640 --> 00:24:13,930 Traders now let us see one more example on a lower timeframe. 320 00:24:15,610 --> 00:24:18,760 Hindustan, Unilever, 30 minutes time frame. 321 00:24:19,210 --> 00:24:19,690 OK. 322 00:24:24,260 --> 00:24:25,220 Is my left shoulder. 323 00:24:31,620 --> 00:24:32,910 And this man, Richard. 324 00:24:35,230 --> 00:24:38,030 Left shoulder, head and right shoulder. 325 00:24:38,320 --> 00:24:40,330 If I draw a neckline like this. 326 00:24:46,360 --> 00:24:48,700 At this level, you can see volume. 327 00:24:50,340 --> 00:24:51,210 There is William. 328 00:24:54,370 --> 00:25:00,860 General, people will enter here, right, and keep their Stop-Loss on Redhill here. 329 00:25:02,500 --> 00:25:04,020 Or here, right? 330 00:25:04,660 --> 00:25:10,870 So what happened after this, the market went up to cover certain people's toplessness. 331 00:25:12,060 --> 00:25:13,650 After that, the market went down. 332 00:25:14,610 --> 00:25:17,510 So we are prosection traders, what should we do? 333 00:25:19,790 --> 00:25:20,600 This is my high. 334 00:25:21,830 --> 00:25:32,510 Because my low, because my lower high and my level at this low, low we draw, this train line is giving 335 00:25:32,510 --> 00:25:33,380 us a breakout. 336 00:25:35,640 --> 00:25:38,650 This breakout is with volume confirmation. 337 00:25:39,090 --> 00:25:40,980 Can you see the volume confirmation here? 338 00:25:43,200 --> 00:25:44,460 So mother and father. 339 00:25:46,210 --> 00:25:50,430 Can you see volume confirmation the volume is more than the previous? 340 00:25:52,770 --> 00:25:57,150 Attentively, we had law of the Bricktown, Kendall Stop-Loss at the height of the breakdown, Kendall. 341 00:25:59,970 --> 00:26:05,940 Target, we cannot give this because we will not get proper relationship right, then what we will do 342 00:26:06,840 --> 00:26:08,700 will check for previous. 343 00:26:12,870 --> 00:26:14,190 What was the previous one? 344 00:26:14,970 --> 00:26:16,050 There was a resistance. 345 00:26:17,380 --> 00:26:18,070 This level. 346 00:26:19,770 --> 00:26:23,730 Or you can keep this level, did the market achieve your target? 347 00:26:24,330 --> 00:26:24,810 Yes. 348 00:26:25,660 --> 00:26:26,020 Right. 349 00:26:26,370 --> 00:26:31,170 So these were some of the examples for uptrend and downtrend, head and shoulders pattern. 350 00:26:31,650 --> 00:26:37,320 OK, traders, I'm not trying to say the market will always go against you, but if you enter the trade 351 00:26:37,320 --> 00:26:41,820 according to our strategy, you will have more pufferfish topless. 352 00:26:43,010 --> 00:26:50,180 That time, what happens is you can always escape the trap when you enter early and your surpluses are 353 00:26:50,180 --> 00:26:56,660 higher than what the market is expected to retries, then you have higher chances of staying in the 354 00:26:56,660 --> 00:26:58,010 trade for a longer duration. 355 00:26:58,400 --> 00:27:00,770 You just stay in a trade for a longer duration. 356 00:27:01,010 --> 00:27:04,370 Obviously, you can achieve this kind of profits, right? 357 00:27:04,820 --> 00:27:10,790 All we are trying to tell you is the old methods to not work anymore if the old methods do not work 358 00:27:10,790 --> 00:27:11,220 anymore. 359 00:27:11,780 --> 00:27:14,750 How can you expect to make profit in the stock market? 360 00:27:15,690 --> 00:27:17,220 Hope this video was useful. 361 00:27:18,050 --> 00:27:22,410 We suggest you to back test and make use of the strategy next time you come across. 362 00:27:22,430 --> 00:27:24,140 Head and shoulders, pattern traders. 363 00:27:24,140 --> 00:27:25,300 That's all for this lecture. 364 00:27:25,370 --> 00:27:26,600 I'll see you on the next one. 32234

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