All language subtitles for 5. Chart Patterns Tops, Bottoms & Triangles

So now we'll be looking at trade patterns.

So we'll be looking at tops and bottoms and triangles specifically double tops double bottoms multiple

times multiple bottoms same thing and then triangles which will include symmetrical triangles ascending

descending triangles and pennance languages.

They're all the same thing.

I just like to think of them as tops bottoms and triangles so Barmes basically when you have something

and again I take examples of a few stocks.

Same thing with cripple's And if you look at some examples shortly Bottoms is basically when a financial

product hits a specific price bounces off it hits it again it bounces off of it.

Then you have a double bottom double top would be if the if it was the inverse.

So in this situation to have something that had the top hit a point hit a point again and had that simple

point.

And that would be a triple top in the situation there was four times all multiple top.

And again here let's stock reached Easterton price bounced off of it's bounced again bounced again.

We have a multiple bottom.

Now what does that tell us.

It just tells us that there are there is a big buy or there are big buyers at that price.

Right.

So you know if this is let's say Bitcoin and let's say this is $6000 and then every time it goes to

six thousand dollars bam it bounces off of it.

What does that tell me.

It tells me that Bitcoin is very attractive to people at $6000.

Everybody wants to buy that $6000.

It reaches there.

Everybody's like oh it's a really good price.

Let me buy some there.

And because they're buying it they're they're pushing the price up and it goes back up.

Now anything that goes back there you know maybe it's the same buyers there's still there are many other

people who saw on the chart that this is a big support because a bottom is for it.

So the police orders there.

So when the price goes there again again it bounces off that price because there's a lot of buyers.

And that's how we have you know bottoms and tops again in this situation.

If I want to buy this product well will I buy it here.

Not too sure.

Maybe I'm going to place an order here because I know if it goes to that price there's so many buyers.

Either present is going to bounce off.

So I might not put that exact price.

And this is $14 I would put it just about $14 and two cents or three cents.

So I'm above the other buyers and I would get parity because my price would be higher.

Obviously I don't want to put it at the price because if I put it at the price then maybe there's a

lot of people in front of me.

And again if there's a lot of people who have their orders at the same price it's first come first served.

So it's time parity if you have the same price.

So if they came in before me I have to wait until they get filled before I get a chance to get filled.

So I might want to put a price just above them but all in all to say that's you know this makes sense

and we look at that because it's an actual visual representation of supply and demand.

It tells me that there's a lot of demand around the bottom the bottoms and there's a lot of supply around

the tops.

So something is going to have a hard time breaking a range where there's a lot of supply and some a

lot of demand sorry and something is going to have a problem breaking above a range where there's a

lot of supply because there are so many sellers.

We have wedges or triangles in this way this is an ascending triangle meaning you have a resistance

at the top but you have a support that continuously goes up.

So the price here.

And again let's say this coin let's call it coin ABC is going up.

There it goes up.

Sellers start calling it a disgrace a dollar let's see goes down buyers start buying it here.

Push it back up down goes back up $2.

Sellers to sell it at that same price.

It's going back down.

Buyers are getting older and see you know they want to be.

They're not willing to go back here they're buying at a higher price goes back up.

Sellers saw that same price goes back down buyers buy it at a higher price again.

So here in this situation buyers keep buying at higher and higher price so they're less patient.

They're more aggressive.

And then at one point the price here you know gets wedged a bit and it has to break.

And it could either break up or down.

Now ascending triangle it's more likely to break up because buyers are being more aggressive.

But it could actually break either way.

And when it breaks it'll go that way.

Most likely it's not 100 percent 100 percent here.

It's always probabilities right and we're counting probabilities in our favor.

So in this situation you know how you think about this is basically look prices are driven by splaying

the math and I have sland demand and demand is pushing the price up and supply is pushing it down.

And at one point these people who are selling and these people who are buying there they're going to

meet us and one person has to in either the buyers want to buy more than the sellers have or the sellers

want to sell more than the buyers have and then push it in that direction.

And this is the same thing with all types of travel and that's why I always just think of them as triangles.

They're going to watch.

And then the longer the wedge or the more they go in the bigger the fight between the buyers and seller

The stronger the explosion.

After we get again here we go.

We have something that's wedged here and then boy can we can raise your rates and then it broke again

here when it broke.

You know what this resistance line becomes the support and you can see actually pressmen back here and

maybe down south maybe not but more likely rates.

And again another example here.

Let's get our own trading view.

And see if we can spot any of those.

I.

So let's say they claim they can spot anything

Loskiel kids.

OK.

So I had this uptrend here and look at this.

There seems to be a bit of a sport around 6000 here on the site here you can draw a line.

Second click here.

And draw a line so that around six thousand dollars.

So let's put a line here.

Here there is that little bit of a support around six thousand.

And this happened several times.

It hit 6000 bounced off of it's hit six thousand again bounced all of it hit six thousand again it bounced

off of it took six thousand is a really nice place to buy.

So I again I bought around this range here you know a few weeks ago because because everybody says that

price is a really good sport for the time being.

It couldn't break and not be that anymore.

But if you are buying and you see if it fundamentally you do want to buy Bitcoin and then it's around

that range.

Well you know it's a pretty good place to buy now.

And also draw a line here because you see that sellers are selling at higher and higher prices and this

is a bit of a descending triangle where sellers are selling higher and higher prices you see here where

we're sitting here and sold here and we're selling here.

They are selling your dealer didn't let it go up higher this doesn't mean it's going to break down for

sure but what this would tell me is if I am a long term investor and I'm looking to buy this product

I might just want to wait a bit.

I might say you know what's.

Look at this.

This thing moves to it all the way up here.

We have this huge you know up trends and then we have this consolidation of this which you know it's

nothing.

If you look at the price of now compared to three or last year were higher.

So really nothing compared to two years ago where so much higher interest.

But as a buyer would I just buy here.

Maybe no.

Maybe I want to wait to get a better entry.

We don't want to buy round to support.

Or maybe I think that right now you know the price is getting wedged so much that it might break in

either direction and because it might break I might one two weeks I might want to wait until it either

breaks this line because if it does bring this line then that this resistance then we're going up rates

again.

So I might want to wait and then I'll just buy here if it breaks over this resistance I might get a

little bit of a worse price but I'll be more certain of my my trade or I'll wait.

And if it breaks below then I would buy right now and I'll wait until it reaches a new low.

And you support and then I'll buy it at another time.

So I'm timing my entry that's all I'm doing.

I'm not giving say I don't want to buy this product or I want to buy it.

I'm just saying OK well if I wanted to buy it.

Should I buy it now.

And that's what technical analysis is going to help us do.

You know because you want to buy something at 7000 right now or maybe you wait until 6000 the difference

between 7000 and 6000 is so 1 over 6.

So 16 percent difference.

Why don't I buy something at 16 percent better price I can buy more of it.

Right.

So if it goes up tell me more.

Why not be a little bit more certain about my transaction.

And this is really what this is going to help us do.

They can also find you know better entries than usual.

And I think there's one trait I've done here just a few days ago on TELEGIN Bitcoin and it was actually

like I wasn't actually looking at Swiss.

I want to buy this right.

But it's an a very big downturns.

OK.

So what I want to buy something that's in a downtrend law right.

But you know there was some news coming out on it and I really wanted to buy it because I think something

nice is going to happen with it so I'm like OK well I need to wait for a good entry.

So I'm just going to buy here or buy here I need to find good entry and look and behold it broke this

broader.

There is this and then so I had bought some here and this was a trade so I don't want to you know it

was a different investment but as an investor it breaks here you want to buy.

And again you can see the volume here is huge.

We'll talk about volume in the next lecture.

But it gives you even more certainty but here it Brookover their existence and talk about the volume

in the next one will be easier.

So that would be a good entry.

Now look at this there was a white chair and you might think it correctly because I was trading it on

a smaller timeframe.

So if I look at a four hour chart

and as I was looking at it I was looking at

the fact that the price started getting wedged right there was a lot of you know buys and then again

this was not a long term investment it was more of that swing trade where I bought something.

I hold it for for a few days to up to a few weeks.

So I'm looking out for our tracks.

But it started getting consolidated here and then I'm like OK well you know what this is either going

to break down and I might have to get out of my position or if it's going to break up then I'm going

to continue in that direction and I might hold it for longer.

And so I waited.

And then it broke over the wedge.

Right this triangle with price was you know getting wedged here and then Benbrook over and looking at

this as soon as a Brookover group went up and you see even volume look at that in the next lecture and

then went up in that direction.

We can even extend that and see if you can.

So these are things that you would use as you know a bit of an indicator to help you get better prices

and it adds really to your share your profits.

When you look at it at the end of the day helps you really figure out do I buy now and time your entries

which is a big part.

You know somebody bought Bitcoin at one point this year and made money on it.

You bought it at six thousand.

So that at seven or six Soledad that it went from six to 12000.

So he made 100 percent return.

Somebody else bought at the 12 and sold it at six and he lost 50 percent.

So you know timing your interest is also important.

As an investor you want to buy things either when it's trending in a direction and it has momentum or

when it's you know it's breaking out of a trend and then it's going in the opposite direction.

So you have to time your interest and that we do not buy something as it's going in a different trend

than where you wanted to go.