All language subtitles for 2. Trend Formation With Price Bar Series. Opportunities For Trading

Let's look at some classic trend formations with these price bars and a series of price bars that you'll

be seeing all the time when you're when you're trading and looking at things and if you're taking notes,

I think that's very helpful.

Very good.

There's got to be two things in here that I'm going to mention that it might be worth a note on.

And I'll tell you when I when I share them with you so you don't have to like, you know, try to guess

at that.

I'll tell you, this might be a good thing to take a note on, but there's two big overriding concepts

that are coming up that I think are very important.

So if we look at a classic trend formation with Price Bar series, we're looking at price bars open

high, low, close in on it, and they have a series of price bars over a period of time.

Right.

So if we look at this series or if you're looking at a series in and they tend to be, let's say, up

trending, so the highs are higher, you have higher highs.

So each day, the higher the high is getting higher than the day before.

And that gives you some additional confirmation that it might be, you know, basically an uptrend or

an additional confirmation of the lows are also higher, too.

So your highs are higher and your lows are higher, everything's higher and prices are going higher.

They can give you a signal of a strong uptrend.

And if you feel that trend is going to continue, you might want to buy in and enjoy that uptrend and

ride that uptrend until it's time to sell.

And you can enjoy a price increase and profit from that.

By the same token, a downtrend would be lower lows.

Right.

You're looking at the lows and are they going lower?

So it's the low today, lower than yesterday or lower over the past few days.

And looking at that trend and again, if the highs are actually lower, you know, the high that he

keeps trending lower, then that's a stronger confirmation of the key to that.

Everything's going lower.

It's really that perfect.

Sometimes you have ups and downs and all that and pullbacks and things, but you got to be looking for

this overall trend, you know, where things are happening.

And one of the key things, and this would be the first thing that made me take a note on is you want

to wait for the trend to develop.

Where people really struggle is they might think, oh, I think a trend trends developing, but they

haven't really proven it yet or they haven't really shown that from a technical analysis standpoint,

you need to let the trend develop a little bit.

And so, you know, that's a real trend and not just kind of a fake where it's going to go the opposite

way.

You want the way to lose money and technical analysis to kind of guess at things before they've actually

developed.

You want to let things develop, to want to have trends develop.

So that's a key takeaway is let the trend develop and we'll learn how to draw trend lines and things.

We have a whole section on to our parents.

But right now, higher highs or upward trends, lower lows are downward trends is a classic way to look

at that.

And you can see the kind of graphically here, too well as well.

So if you see on the left here the uptrend, you see how the tick marks on the right hand side, the

closing prices, you see how on the right hand closing prices, they're always going from each price

spike up and down price for how they keep going on the right hand side, keep going up.

That's showing a definite uptrend because they keep going up.

In fact, even the lows look like in this year.

I mean, double check.

Yeah, it looks like the lows are going up, too.

So this is a strong uptrend with higher highs are higher and the lows are actually going higher than

the previous day to, again, left or right over time.

Same thing with the downtrend left, right, no further time would be in the back.

You can see how the low, the closing, the lower lows on the right hand side, how the prices are getting

lower each time just a little bit.

But so it's not a super strong one.

But you can see the right on each individual vertical bar, how that represents a day and how each little

tick mark on the right gets a little bit lower each day, showing that there's a downward trend.

Now, if we were to look at that overall, let's say, a broader price chart and we'll be doing things

like this here throughout.

And this happens to be a sample from Procter and Gamble or Pink either make household products like

cleaning detergent and stuff, probably use their products.

And the part that I just showed you, an example actually pulled from a real chart.

And I highlighted that here with little green dashes.

And you can see how, you know, if you were trading this, you could see on the far left of the where

the green starts with the green highlight part is actually going all the way left.

If you go all the way left, you can see how the price bars were kind of up and down.

Right.

Kind of.

There's no definite trend there up and down, right outside the green area to the left.

And then they start to turn going upward of those black bars, going upward.

And that's what we're showing, the higher highs.

And then it reversed and the trend went to those three price bars went lower.

And you had a little mini trend there of lower lows and start trending the other way.

And then if you go beyond that, beyond the green box, you can see it went on up for a day and then

down for a day and then started kind of going sideways a little bit up and down, up and down.

And then you can kind of go on from there as far as some significant price moves, both up and down.

But if you look inside of the green box, you can definitely see a strong upward trend and for a short

period, a downward trend there just based off price bars.

The second thing I think you want to take a note on, by the way, is not only wait for the trend to

develop, but also understand that the trend is your friend was probably the most classic thing that's

ever said in technical analysis is the trend is your friend.

You'll see that come a.

Well, because the idea of the trend is this gives you some predicting, some prediction capability

when you have those strong uptrends, you can kind of predict that that will continue and you can kind

of identify when that trend might be over.

So the trend is your friend look for trends you want to be friendly with with trends for for sure.

And that's the key part of a lot of technical analysis, is identifying trends and making decisions

around that.

So remember, the trend is your friend, but also you got to let your friend develop.

So let your friend become clear and develop and we'll be showing you how to do that up in upcoming lessons.