Original subtitles

What's up, everyone? Alright. So, today, we're going to get

into lesson four which is technical analysis. Now, this

is kind of the meat of the class as traders. We are so

focused on the technicals. It doesn't matter whether you're

trading stocks or cryptocurrency. Technical

analysis is what we use to find strong entry points with a

minimal amount of risk and a maximum amount of profit

potential. So, the topics for today when it comes to

technical technical analysis, We're going to define what it

is so you guys understand it. We're going to show you

candlestick price charts. These are the same charts that we use

when we're trading stocks and so many of you are already

familiar with them but we'll just do a brief review of

candlestick charts. We're going to talk about performing

technical analysis and then we're going to get into talking

about common price patterns. So, these are the candlestick

patterns that we utilize to find strong entry points.

Alright, so Arch is with me here again today and I'm

going to let him talk a little bit about technical analysis.

Yeah. So, let's get right into it. Technical analysis is a

very popular way of evaluating price charts. Yeah. And it's a

methodology that helps you analyze historical data to help

you predict what prices may do in the future. So, we're

eventually evaluating all of the trades that have taken in

the past and we may use something like a candlestick

chart to do that. Uh our goal is to really use that

information to our advantage by helping us locate good entries

and exits on our trades. There's probably hundreds of

hundreds or thousands of different technical analysis

trading strategies but ultimately our goal is the same

and that's to find a trading edge that's going to help us

put the probabilities in our favor so as you gain experience

as a technical analyst you're you'll likely be able to spot

these major trading opportunities that become

visibly evident on the chart yeah technical analysis is also

really a universal concept that works practically in any market

so it works in stocks futures cryptocurrencies and if you

understand technical analysis from stocks or another any

other kind of trading that's really great because those

skills can also be applied in cryptocurrencies but even if

you don't don't worry because we'll teach you how those

concepts can be applied in this presentation. Yeah and you know

one of the things is that I noticed for myself when I was

learning how to trade I kind of had this hunt for the holy

grail like even when you look at this slide here you can see

these like oscillating indicators and they go from you

know green down and up and you think, jeez, maybe if I find

the perfect combination of technical indicators, they'll

just, they'll do the hard work. They'll tell me when to buy and

when to sell and the reality is it doesn't exist. I search for

it for a long time but what you can do is you can use them to

help you put the odds in your favor to help you get that

edge. They're not going to do all the work for you but they

can help you. Now, those are technical indicators and we use

a couple of technical indicators which will talk

about more this class and primarily we rely on

candlestick chart patterns rather than the indicators

themselves and that's because a technical indicator is always

going to lag behind price action a technical indicator

takes its information from the price but it requires the price

to go up and down before that indicator is going to give you

a signal so the price has to happen first now if we just

look straight at the candlestick chart we're looking

right at the price and so we don't have any of we don't have

any lag or any delay if we can immediately make an

interpretation. So, you know, that's the goal but technical

analysis includes all these technical indicators and

reading candlestick charts. So, this is the breakdown of a

candlestick. Now, every candlestick that you see

represents a period of time. A green candlestick right here

has four pieces of information it's telling us. It's telling

us the open price which is the bottom of the candle it's

telling us the close which is the top of the candle right

here so this body right here this is obviously the the stock

moved up during this period of time down here is the lower

candle wick or the lower shadow this is the low of that period

so let's say this candlestick represents 15 minutes of time

within that 15 minute period at the beginning the price was

right here at the end the price was here and sometime during

that 15-minute period, it dropped down to here, it spiked

up to here but then it closed right here. So, those are the

four pieces of information. The open, the close, the high, and

the low. Now, with the red candle, we see the same thing.

We see the open price and then the close price. The only

difference is that they're inverted because the stock went

down. So, that's how we need the the candles to be colored

to know whether the price was going up or down. I mean,

visually, you can some see it but if a stock is kind of

sideways without the color, you wouldn't know whether the top

was the open or the close. So, what's really interesting is

that when we take these four pieces of information, they can

actually communicate a lot to us. So, imagine for example, if

this candlestick had a high shadow that went way up here.

Let's say it went way off the chart. What that would tell us

is that inside that fifteen-minute window, the

stock squeezed up but it came back down and the one hand you

could think well that shows strength but it actually shows

weakness because it came back down so we call those topping

tail candles because they've got this long upper wick

inverted is a bottoming tail a stock squeeze down but then it

got bought back up and that's actually showing some strength

so just the actual shape of the candlestick can help us make

some interpretation about the market sentiment around this

particular stock and I'll I'll I should should preface that by

saying that these candles patterns are most significant

when they appear in the context of a strong move to the upside

or a strong move to the downside we don't really look

at candlestick patterns during sideways consolidation because

the fact that the stock is already sideways tells us you

know the market is a little bit indifferent alright so now

let's look at a couple of candlestick charts I'll let

Arch walk you through this yeah so here we have the Bitcoin

daily chart on the left and we have the four hour chart on the

right the daily chart really helps you get an understanding

of the bigger picture of the the price move. Right. From

current current data we could see that Bitcoin's been pretty

weak on the daily chart lately. So that should kind of give you

an hint to be extremely cautious when taking any kind

of long positions since it's kind of in a sustained

downtrend at this time. Uh however you can incorporate

another time frame such as the the four hour chart to get a

better understanding of what's happening in the shorter term

picture. So when we look at the four hour chart year it shows

us that the sellings kind of ended and we're now steadily

grinding higher. So, that's how you're going to use the time

frames to your advantage to kind of get an understanding of

what's really going on. Right and you can see, I mean, this

is a a four-hour chart. So, that means each candlestick

represents four hours of time and you can use any time

period. The most respected time period for most traders for day

traders would be a one-minute chart and a five-minute chart.

Now, a lot of traders who do sort of slightly longer hold

times will use 15-minute charts and 60-minute chart and swing

traders usually focus primarily on daily charts or maybe

something like a four-hour chart just to get zoomed in a

little bit closer but you can see here is this bottomed out

at the bottom it went from 6, 000 all the way back up to 9,

000 I mean that's a pretty legitimate bounce and on the

daily chart you you know you may have said okay here's a

little bottoming tail right so the stock dropped down but then

it squeeze back up so that shows strength and maybe would

have seen that as an indicator to buy maybe around 8000 but of

course if you got in there you're already getting in 2000

points off the low of the drop so that's the advantage of

using a shorter time period you can kind of get that early

indicator that the tide is starting to shift and here you

can see that peaking volume at the bottom right here the sell

off the bounce then a first pull back gets bought up so

possible entry maybe around seventy-seven fifth it's not a

lot earlier than waiting for a daily trigger but you know it's

a little bit earlier would have given you a little bit of a

jump right there so let's look at another chart here we're

going in zooming in a little closer this is the one hour

chart and the 15-minute chart again as a day trader there are

times where I've gone all the way down and it's not going to

sound crazy to a one second chart so each candle is

actually one second of time and obviously we do that it's

there's a million candles in the day but if you want to get

very very precise entries for quick trades you can go all the

way down to one second chart it's not very common typically

you know 15 minute 5 minute 1 minute would be more typical

but yeah yeah especially with cryptocurrencies you kind of

focus on at least the at least the five or the fifteen because

when you really get into those lower time frames with these

these things are very trendy but they at the same time they

don't break out within a matter of seconds or minutes.

Sometimes it takes really an hour or a couple of hours for

that move to get going. So that's why I like to I prefer

to use the the fifteen and the 1 hour for the shorter time

frame trading because not only do you get an understanding of

the trend but you can still nail those those precise

entries using these shorter time frames. Yeah and something

that we'll talk about in a moment. If you kind of look at

this, you can sort of visualize this almost invisible line

right up here. If it can next this. and this. and then comes

up to here this is what we would call a trend line and so

if you did that take that technical analysis where you

drew that line on here then right in this area you might be

starting to think well jeez it's hitting this trend line

maybe I should be a little careful and that would have

gotten you out of that trade before this drop right so you

know that's something that we'll talk about a little bit

more that gets into the next level of technical analysis so

Let me let you Arch walk us through this slide. Yeah. So,

now that you guys have a better understanding of what

candlestick charts are, we could really get into the the

technical analysis tools that you can use to begin performing

your own technical analysis. So, there's many ways to

perform technical analysis using a pretty enormous library

of tools and indicators that are currently out there but

personally, I like to keep it very simple and I found these

tools to be incredibly helpful in performing technical

analysis. So these include trend lines, support and

resistance levels, volume, and moving averages. Four big ones.

Learning how to incorporate learning how to incorporate all

of these tools into your arsenal can really help you

develop an edge over the market. And as mentioned

there's plenty of other tools and indicators you can use. Uh

but using too many can really become contradictory and it

might give you contradictory information. So you really

want to limit the amount of indicators and tools that you

use. Yeah. It's called analysis says paralysis. So, you have so

many technical indicators and you, I mean, you could stack

dozens and dozens on a chart to the point where they they could

all be agreeing but it doesn't necessarily mean it's a buy or

they could all be disagreeing and you just gotta sit there

confused and that's what's more likely to happen. Some will say

yes, some will say no. You sit there missing opportunities

because you're overthinking it. So, the four big ones, trend

lines, support resistance levels, volume, and moving

averages. Those are what we use when we're trading stocks and

they're the same with trading cryptocurrencies. So, when it

comes to the trend line, this is where we actually connect

those two dots with a line and so from any trading software

any charting software, you'll be able to go down to your

drawing tools and you'll be able to click on trend lines

and when you do that, you click once for the first. and you

click a second time for the second. So, one of the ways

that I typically use trend lines is I try to find the

place where the line connects to as many dots as possible.

So, I'll maybe click the first. and you can use either the top

of the candle or you can use the top of the body. There's

not really a hard set rule of where to draw the line. My

opinion on it is to draw the line so it touches in the most

places because if you draw a line, let's say for instance, I

I draw a line that connects this spot right here with you

know, this spot right here you know I might have been the only

person that drew that line because it only touches in two

places whereas when you draw a line that touches in multiple

places the way this touches here here and then it retouches

here and and maybe even if we had drawn it a little bit lower

we would have seen it touch right here that's when you

start to say this is a line that's being respected I mean

I'm drawing it and I'm seeing over the course of hours and

hours that we tapping that line I'm not the only person that

drew it it's a respected trend line and that's what we want so

we draw them basically where we can already sort of start to

visualize them and then we can adjust them up or down slightly

until they connect to as many places as possible and so what

we know is that stocks will often test these types of

resistance points now if the stock is below it it's going to

be considered resistance because it's coming up again

it. When it finally breaks, often times we'll see a break

and then we'll see stocks come back down and retest the

breakout point. So, they drop back down and then, if there

are enough buyers, it will curl back up and it continues on and

and that's when you know that that previous resistance is now

actually going to become a level of support. When you

break through that line, it's now support. So, it really can

be very helpful to draw trend lines whether it's with

cryptocurrencies or stocks to help you identify major levels

of possible supporter resistance where you could see

breakouts or breakdowns. So you can see here this is a

lightcoin chart. I'll let Arch walk you through the taps of

this trend line right here and here. Yeah so this will be the

four hour chart of Litecoin and we see that we have two major

trend lines currently plotted on the chart. Uh both of these

trend lines were connected using the most extended points

that we were able to find which kind of really helps you

understand the borders of the price action. Uh when we start

coming out of those that range it kind of gives you a sign

that the trend is starting to change. So what what here was

that the first screen box shows that we tapped right into the

line and we sharp sharply rejected from there it tested

the line again in the second green box and again we found

resistance there but we saw that the price eventually

stopped going down and it made it back above that trend line

with a bunch of sideways action taking place but what that

really means is that the downtrend is likely over for

the short term and we could likely see a breakout over the

top of the trend line and that's exactly what Litecoin

did just a few days ago after this was taken. So, this is a

great example of how you can incorporate trend lines to

perform this technical analysis and get understanding of when

prices are really ready to to move. Yeah and on this slide, I

probably, I would probably have drawn a second trend line maybe

from the top of this body because if I had started a

little lower, this would have come up a smidge bit higher and

it probably would have cut through here and you would have

seen the trend line would have been right around here but even

if I had drawn that you can see right here there's a little bit

of descending resistance because there's sort of that

level so on this candle here we broke over that level so here

we are kind of holding maybe support around here and there

was also maybe a second line above it that was this sort of

resistance point so there are times where you'll see stocks

kind of pinned between two lines and it's just a matter of

time will we break to the upside or will we break to the

side here's another example you can see this Bitcoin chart this

is a four hour chart again trend line starting at the low

point and then connecting right here right around there and

through here so I think if this one is connected on these two

points we do that because we're like okay these are two obvious

levels and as the stock starts dropping down here that's

usually the time that we would draw this trend line because

we're thinking when is the going to find support. Is there

anywhere it might find support because that's a place I could

potentially be a buyer, right? So, if you drew this trend line

and you saw, well, there might be a little support down in

here, that actually would have been a fantastic entry because

we bounced from 12000 back up to over sixteen, $17, 000,

right? So, that's a really good bounce. Right. And that's how

you would have spotted it is by connecting that those two dots.

So then, again. What's interesting is it later, sorry,

sorry. Uh what's interesting is later found support at that

same level but this time, we didn't see that same kind of

bounce, right? This time instead, prices kind of

consolidated on. That's true. As buy buyers used it as a

place for support but sellers were still kind of in charge

and ultimately, we saw that the line broke hard and prices

flush. Yup, that's definitely true and so, in this case,

after we'd had this drop, I might have drawn another trend

line from the low of this. to the low of this one which would

have brought the line just a smidge a bit lower it probably

would have been crossing right in here but then you would have

seen okay we've got these two support lines so if they both

break as they finally did here we could get a really big drop

and we're not going to see any support now unless we draw some

type of descending support line coming down here but a lot of

times I I try to be careful about crossing too many lines

because then again you're getting a little obscure and

you be connecting dots that are obvious and that other people

will connect because the only reason that the stock bounces

here is because other people connected the same line and

they saw potential for support so if you're connecting obscure

dots and noone else is doing it you'll be the only one buying

there the stocks going to keep dropping so anyways yeah it's

very easy to come up with these trend lines that you might

think are trend lines but ultimately the goal is to find

the trend line that everybody else is watching so that you

all you get the same the reaction that you're looking

for through the help of other traders. So usually I say the

validity comes from a trend line tapping multiple times. So

like this is a long one with just two taps but then in here

it starts to gain some validity as it's really showing that

this is a recognized level of support. So most people would

consider this bearish the way the stock is consolidating at

the trend line before of course breaking down. Um yeah to add

on to to which what you mentioned sometimes it is okay

to use those two points but I like to only do it in

situations where I'm using the most extended points because

ultimately I know that not all trend lines are going to be

respected but I still want to have them plotted just in case

that they do provide some kind of support and that can help me

kind of understand what's really going on. So in this

case we had those two extreme lows plotted there and we we we

created a trend line from that but even though we didn't know

whether it was going to come into it was going to provide

support since it was only two points it's so helpful to kind

of mark those places off because you never know that

that maybe a level that other traders are are using. Yeah.

That's true and one remember you have to not forget that the

reason technical analysis works is because thousands,

thousands, millions of people are all using the same tool,

right? So, I that's why those four big tools of trend lines

support resistance lines volume and moving averages work so

well they're the most common technical indicators that even

when you first load you know an E trade account or whatever it

is they're automatically on the chart because they're what

everyone uses so the fact that a setup is really obvious is

good because more people recognize it more people will

most likely buy at the logical buy buy spot and you're

going to see better resolutions. So, you know, we

really like to go for what's obvious rather than trying to,

you know, come up with some very obscure combination of

never before heard of technical indicators because noone uses

them which means those levels won't be very respected and

you'll most likely just get yourself frustrated. Alright,

so support and resistance levels. Do you want to cover

this one, Ash? Yeah, let's get into it. So, we have here

support and resistance levels which are literally just

horizontal lines that we can plot on a chart based on what

we identified to be major trading levels. So, some

examples of major trading levels you might find on a

chart include previous major breakout and breakout points,

extreme highs and extreme lows as well as price levels that

have been previously tested and held on more than two

occasions. So, it's important to note that support levels can

become resistance and resistance can actually become

support. Yeah. So, let's look at a couple examples here of

support and resistance lines. So, what we look for again are

places where the stock has ideally tapped multiple times

so right up here at the high we've got the first this candle

squeezed up here and this is a topping tail so often times

I'll draw a a support or a resistance line at the high of

a move or high of day and so if I draw that on there it creates

this line right here and it's very common that when a stock

squeezes up if it creates this this is called the cup

formation it creates this cup formation that what it's

going to do is it's going to double top at the resistance

line and it's going to fail so we anticipate that now that

means we often like to buy at the bottom of the cup which is

what we would call the bullflag entry so we're buying down here

and we want to sell at the top of the cup there are times

where stocks or cryptocurrencies are really

strong and they squeeze through that and they keep going but

often they see a little bit of resistance and this is the

moment where stocks will either pull back and completely fail

the way this one did or well there where they'll form a

handle which is that little bit of kind of pullback underneath

the top of the cup so it's that little handle right here and

then from that point they usually continue higher so

drawing the resistance line at high of day this gives us a

predictive predictable level of resistance right here similarly

stock drops down the low of the drop we pop on a support line

now we see here on multiple occasions the stock kind of

drop below bounce back up drop below bounce back up so we're

sort of seeing some support in this area and again one of the

things that can be a little challenging especially with

cryptocurrencies is that because there's so much fear

and greed around these these trades, these currencies, you

can see whips where they break below support and then they do

come back up through it because people panic out or people, you

know, greed and they just panic in. They buy in because they're

afraid of missing out. They've got FOMO and so we see a little

bit more of the irrational stuff like in this case, you

know, you sort of see one, two, three taps in this $10, 000

level, probably a little bit of psychological support there as

well because it's a big round no the low of this drop here

you know we could draw that over this is a good example

also where once this support level was broken as we came

back up it was also resistance so now it's forming the other

side where first it was holding us up and now it's a wall

keeping us from going higher you can see a little bit of

trend line support and resistance here or the support

and resistance horizontal lines on this four hour chart this

drop he You can see we've got a tap there and a tap there. So

that's a really good example of those two levels you know

coming up and running into it. Is there anything else you want

to cover on this slide? Yeah so we can also cover that the

major breakout points also kind of tend to provide some

considerable support so on the Bitcoin daily chart you can see

that we have the major breakout point listed and we really just

identified as that that is the the low of the green candle

that really started a huge upright that's where that big

move really started and before it kind of just gained

incredible momentum so now that we're finally back down to that

level you can kind of expect it to be an area where where some

buyer are going to come in so if you look on the four-hour

chart we first pivoted into it bounced a little bit drop

through it but now we're recovering back up and kind of

consolidating over that level so that kind of tells me that

buyers are using that as a as a level of support to place their

trades on Bitcoin that's a good point yes so this trend line

here is carried over from the daily so sometimes we'll

actually we do this a lot we'll draw trend lines on the daily

chart and then when we're trading intra day using a four

hour hourly 15minute or 5 minute chart we can see okay

this is that level that we marked out over on the daily

chart we're coming up to it and so this is where you can

kind of see us coming up to that level right in here and

that's the same with this trend line coming up here but you can

also draw these support and resistance lines intra day on

the four-hour chart as you see them and again they're as

respected as basically if they're really well respected

it's because they're really obvious so the more obvious

they are, the more likely they are to be respected by other

traders. That's a great point. Here's a chart on Litecoin. You

want to talk about this a little bit? Yeah, so we kind of

see similar support levels here on Litecoin. We have the

extreme lows from the previous major sell offs, right? Where

we saw that first Litecoin had broken out incredibly sharply

and then when we had that big sell off time, we bounced

pretty sharply off of that level. So, you can kind of plot

that level to be and expected to be a support level if it's

ever tested in the future and that's what we saw following

couple couple weeks later where we once again spiked into that

level and we used it as support bounced higher but eventually

we curled back down and we plotted another support level

at the at the new extreme low. Yup. So, what we're seeing now

is that Litecoin is kind of using those those levels as

support even though it's not the most perfect support bounce

there is. Uh it's those are the best levels that you can really

used to determine support that there's not really much else

you can identify on that chart to be a major support level so.

Yeah and this is what technical trading is all about. It's it's

looking at what are obvious possible levels of support and

we look at the lows of you know, extreme drops and things

like that. So, those are carrying over into this

four-hour chart here. So, you can see especially in this

area, a little bit of consolidation bouncing between

these levels and something that again, is also worth noting is

that we definitely see resistance at whole dollars

half dollars and just big kind of lines in the sand that

are psychological so 150200 or even you know 210220 230 240

it's not uncommon to see kind of you know a little bit of a

tap against these whole round numbers and a fade off that

level so when I get in to these a lot of times I look for them

to break and hold over those levels and when I look for my

target I like to sell just underneath those psychological

areas of resistance I wouldn't want to sell exactly at 250 I

would sell like 24980 you know because I would expect we might

come up and tap and then we could get a sharp rejection off

that psychological resistance so in addition to obvious

support and resistance levels we also have some of the

psychological ones which initially not be as obvious but

are definitely a factor. So, here's actually a similar

analysis on Ethereum. Uh this one really helps us kind of

understand the importance of previous major breakout points.

So, if you look on the four-hour chart, that major

breakout point that we have identified there. It provided

support not once but twice. Right. Yeah. On the first

bounce, we jumped literally from that level and it bounced

for over 30 percent from literally that breakout point

which means that other traders had identified it and possibly

placed orders at that price point ahead of time so when

price came into there their orders would be filled and it

turned out to be a remarkable trade for anybody that that

bought the the dip there because just led to an

incredible balance we also see that there's a good example of

support turning into resistance on the four-hour chart we had

the extreme low level plotted which when Ethereum finally

snap back into it it found support or resistance where we

have the the green box. Right. Uh March. So these kind of

levels really kind of help you understand places where you be

you might be able to buy and sell for a trade. Yeah. Yeah

these are all really good examples. Uh and again once you

kind of learn this language of where to draw these trend

lines. You can apply them to any type of stock. You can

apply them to Facebook, Amazon, Netflix, the high-priced

stocks. You can apply them to the low price stocks. They are

really well respected across the and and in fact there's so

well respected that there are some there's algorithmic

support at some of these levels where there's computer systems

that actually take into account this is a place where the

computers are going to be a big buyer and so when we see

support you know the stock is dropping down or like jeez you

know it's it's not dropping anymore there's big buy orders

where are they coming from they're combination of

algorithmic traders they're also traders with deep pockets

are very experienced that put out orders days or weeks ago

thinking if we retest this spot this is where I would be a

buyer even if I'm out to lunch I want to get picked up right

here for a bounce and you know you saw it just like to the

penny right here on this drop dropping out of the against the

support of the prior breakout Alright. So, volume. Volume is

something that I actively use on every single trade I take.

Now, when we were giving you the walk through showing you

Gdax and Coinbase and everything, you're able to see

the the ladder which is the the level two is what we call it,

the depth of the market and then you're able to see the

time in sales and the time in sales is a transaction list.

It's a list of every single trade that goes through and

it's just console running twenty-four seven in the case

of cryptocurrencies. So, volume is and the volume bars are just

that visual representation of the amount of transactions that

went through during each candlestick period. Now, these

are colored red or green not based on buyers or sellers but

based on the color of the actual candlestick. So, that's

kind of a little bit deceptive because there are there could

be times where you have a green candlestick but a lot of the

volume came from one big seller who just happen to sell like

50, 000 shares or 50, 000 coins or whatever it is but for the

most part we sort of just acknowledge that we color the

candle stick and the volume the same color so the candlestick

up here and then the volume would be down here so that's

the reason or that's how we decide the color of them now

again one of the nice thing with volume in this sort of

view is that you can visualize when we have high volume and

when we have low volume and one of the things that we really

like as active traders is to see a lot of volume in the

stocks or the cryptocurrencies that we're trading so a place

that we would be interested is right here and without even

seeing the chart we know that the candles were going down

right here and they were starting to go down with

increasing volume which probably means the stock was

dropping pretty fast and then this must have probably there

might have been a little false bounce right here and then a

more sustained bounce right here as we start to come back

up and then so what I would visualize this chart looking

like is the stock dropped down it bounced up and then it

kind of went sideways for a while this is probably sideways

it could be slightly down or slightly up but it's most

likely not anything too extreme when we see extremes and volume

those come with extremes in price for the most part and

high volume is what we like. We like to see lots of trading

taking place because that means if we want to buy and sell in

large quantities, there are buyers on the other side that

we can sell to and there's sellers on the other side that

we can buy from and so there's going to be it's going to be

very liquid, very easy to get in and easy to get out. So,

when it comes to technical analysis, volume is what we

kind of consider to be a confirmation so we may see what

we think is a nice strong pattern and or we may see what

we think is a a strong support level and it's the volume that

will confirm it the volume is what tells us other traders are

buying at the same place that I'm buying that means I must be

right that this is a breakout spot I'm not the only one who

saw it so volume is incredibly important for confirming that

these patterns that we thought we saw are in fact legitimate

so here we can see volume on this chart and as you would

expect some of the big breakout days are going to have higher

volume some of the big selling days are also going to have

higher volume what is kind of interesting with Bitcoin and

with some of the other cryptocurrencies is that some

of the big moves actually occurred on fairly light volume

for whatever reason there was just an balance where there

weren't a lot of traders but the traders that were there

were all buyers and the prices just went up very very quickly

which is a little different from what we typically would

see trading stocks although it's it does happen from time

to time that you will have light volume breakouts they're

typically just the result of you know someone sees the

breakout like right here and so the only people buying here are

obviously people that saw this consolidation but it's just so

happens that it wasn't as many people as we're trading it back

here so ideally we like to see high volume at the breakout but

ultimately the price is what's most important so we want to

see the price moving up and moving up sharply but you can

see here this is that consolidation definitely kind

of pick up from that though yes when we did see that huge

volume spike and it nearly took the prices to all time highs

that can kind of give you early indicated insight into right an

early and what may potentially happen in the future. So, if we

saw that much volume come in and the prices nearly went to

all-time highs. You can only imagine what prices may do in

the future, right? And. That's true. Uh that's exactly what

happened here is what we saw the big volume spike. It took a

few days of consolidation and we moved out of that bullflag

on. Uh not tremendous volume but it was enough to really

carry prices pretty far. So, it's really important to keep

an eye on volume to to get an understanding of what price may

do in the future. Yeah. Those are good points and likewise,

when we see drops or we see periods of consolidation, we

like to see that they're on lighter volume in a lot of ways

because that indicates more of more churn rather than panic

selling. So, you know, a little bit of a drop but it pops back

up and it's on light volume. That's not as concerning as

when we see a drop on really heavy volume. Uh you know, like

back here, this is something that would be a little bit more

concerning but you know this is even though it's the highest

red volume of the day we have bigger red candles right here

and up here you know a few months later this just happened

to at the time be a day where some traders panicked out a

little bit because it was a relatively big drop for that

time so let's see here's another Bitcoin chart you

want to walk us through this one yeah so it's another great

example of how you can kind of use volume to your advantage to

kind of get an understanding of what may happen so we saw that

prices that really started selling off from the high of

about 5, 000 we dropped all the way down to 3, 000 which is

pretty pretty steep drop but what what you saw is that huge

volume came into the buy side right there so that really

kind of tells you that maybe a single party or many parties

are really getting involved at that point and they're they're

taking ownership of Bitcoin at those prices and they're really

voting that this these prices may go higher and that's why

they bought so much so over the next few days we saw just a

little bit of and then you come out come out of the bullflag

and boom prices just took off from there and really that that

big volume spike of that day is just critical and kind of kind

of seeing that happen before it does because it just gives you

just great insight into the the price action of the market.

That's a good point. Despite the selling, more buyers came

in to step up to the plate to buy it up on that dip and that

is a real sign of strength. Uh one of the this isn't quite a

bull engulfing candle but a bullish engulfing candle is

when you have a red candle and then the following day the

green candle is fully bigger than it it opens lower it

closes higher and it's just basically it totally shuts down

that red day and this definitely did it with the

volume it almost did it with the price and it certainly did

over the next couple of days We could see it here again on

Ripple as well when we started breaking out to all-time highs.

The volume just really kicked up to another level and seeing

that can just help you predict that these prices are probably

going higher and that's what Ripple did with when those huge

buyers stepped in. We got all of that volume and these were

fresh all-time highs. So, it could've really helped you kind

of predict a breakout in the making. Now, it's interesting

with this is that we had peak volume here over 600 million

coins traded on these high volume days however remember at

this time it was around 50 cents per coin so here you know

it when it's up at $3 if we were actually looking at this

not just in dollar and not just in number of coins but in the

volume of of currency that that changed hands you'd see that

this was actually increasing because the price went up and

yeah the volume came down a little bit in part because

buying 10, 000 coins is much more expensive on this day at

250 than it was back here at 50 cents, but the transaction

value is going up so that's that's something that you may

not see at first glance but you should be aware of especially

when you're looking at something that went from 30

cents to you know $4 or $5 that can be a pretty bare sign as

well right when you see that declining volume kind of shows

you that not as many buyers are stepping up to the plate yeah

even the prices are higher in this type of move you really

want to see the volume continue to increase you prefer to kind

of right right yeah that'll kind of show you that prices

may continue to go higher in the future but in this case the

volume just slowly wrap down so that that should have kind of

given you a hint that maybe maybe this movement was coming

to an end yeah I think definitely when we see

decreasing volume it is an indicator that okay the move is

getting overdone but if you also were plotting the

transactional volume the the current the actual amount of

dollars that are changing hands you would see that it's

probably actually flat or going up slightly because the price

went up so much so that's a little on the bullish side so

it does make it a little bit mixed as to okay you know it's

breaking out on decreasing volume but the price more

expensive so yeah it's a little bit of an iffy one I would say

in any case I'd be definitely hesitant you know buying it

anywhere up on this high level because obviously just came

from you know twenty thirty cents

here's the same example again with the volume just just to

kind of show you guys how important recognizing that

volume could really be because here we saw that Ethereum

really kicked up its volume on that that first breakout. Yup.

To just unseen levels. Uh we had seen it seen that level of

volume in the past but compared to the past few weeks, it

hadn't seen any volume like that. So, when when you finally

got that huge kick up in volume as well as prices having just

you all time highs. That that could have provided you an

indication that prices were ready to to continue much

further which which they did. Right and this is an example

here where we have our support or our resistance level which

was all time highs. We came up and as you can see here, this

is the 15-minute chart. So, it's a zoom in of this day. We

squeeze up. We break through all-time highs but then, we

reject them. So, it goes all the way up to eight, what was

it? 880, drops back down to 800. So, you know, fairly big

false and then it curls back up but it kind of struggles and

churns around this daily kind of support resistance level

until finally this becomes support and that becomes the

low of the next leg up which starts right here right so this

was previous resistance which becomes support so you again

using all of your technical indicators to help you get that

edge so you're making the best decisions about where to get

in, where to set your stops, etcetera. So, moving averages

this is another one of the indicators that I use a lot.

So, what a moving average does is it tells you the average

price over a fixed period of time and you can choose what

period of time you look at. So, the commonly used moving

average lengths would be the 20 moving average, the 100, and

the two hundred. So, a 20 moving average is the average

over the last 20 candles and so again this can be a little bit

deceptive because the 20 moving average on a daily chart well

the average price over the last 20 days is different from the

average price over the last 20 minutes if you're using a one

minute candle so the 20 moving average is not the same on all

charts it's it it's really relative to whichever time

frame you're looking at so we use the 20 the 100 the 200 for

me an active day trader I also use the nine because it's an

even shorter period so it's telling me the average price of

just the last nine candles so those are moving averages now

within moving averages we have two different types we have the

simple moving average which does exactly what I just said

it's the average price over the last X number of candles and

then you have the exponential moving average and what this

does is it weights the more recent price action heavily

versus the older price action and so that means when the

simple moving average is going like this as the stock goes up

the exponential is going like this it's moving faster and we

like that I like that at least for day trading stocks because

it reacts faster it's to me going to be more accurate so

for me I use the nine the 20 and the 200 exponential moving

averages and what do you use for on your charts with crypto

are you using simple or using exponential? I'm using simple.

Yeah. And I think I use the twenty EMA but I the rest I use

simple moving averages. So again, it really comes down to

personal preference but at the same time, I'm using the

indicators that I think are the most widely used among day

traders of stocks. So, day traders of stocks I think are

using the the nine, the twenty, and the 200 exponential. The

nine, the twenty, and the two hundred Simple are also

going to be very similar in price. It's not that different.

So again, me using the exponential might give me a

little bit of an edge over someone else who's using the

simple and it's probably the same with cryptos. A lot of

traders when they load up their charts automatically will have

simple moving averages installed. So, it's what they

come with. It's what they initially learn and so they

will be inherently more respected because more traders

are using them. Right, right. One thing to notice you want to

stick to one or the other because there is similarities

between the two but they can still provide contradictory

trading information so you want to use the one that that

you find works best for you which in most cases it's the

the exponential but most some people also like to use the

simple as well so what you see here these are the moving

averages plotted on this chart and so you see right here this

is a level of support the stock is actually finding support at

the average. Right here, the stock is finding support at the

moving average. This is very common. So, now we see a couple

of charts and we're starting to add the layers of indicators.

We've got the candle sticks. We've got the volume. Now, we

have our moving averages and of course, we could draw on our

trend lines as well and so you can see as the stock squeezes

up. It really holds this green moving average. So, what we

would typically say is that we like to buy at support. This

moving average is a pretty good level of support and so entries

at the moving average with exits as the stock squeezes

away getting back in at the moving average exiting as it

squeezes away back in at the moving average exiting as it

squeezes away maybe back in here exiting again back in down

here maybe you stop out maybe you don't get in until it

breaks back above because this is three sharp days of drop but

again you sort of get the idea of we're seeing the stock or

the the currency in this case Bitcoin respecting these moving

averages do you want to add anything on this slide Um yeah

so I I really like to incorporate moving averages to

kind of get an understanding for the overall trend. So most

frequently I like to use the 2020 EMA since it's so short

term and it's going to react to more immediate price term but

the the hundred and the 200 can really help to find major

support and resistance levels that previous previously

haven't been tested like in this case the 50 EMA or the

hundred SMA had only been tested on one occasion back in

I think it was September or October but it didn't get

retested since but once we finally did come back into it,

we saw that the 100 provided a decent level of support and

then similarly, you can see the same thing happened with the

two hundred. Uh although they weren't like sharp bounces

precisely off of those levels. Yup. Um I'm pretty certain that

the reason we're seeing these bounces at these areas is

because people are seeing that we're coming into these major

moving averages. Yes. As well as other other technical

indicators that we've outlined earlier like the the major

breakout point the whole the round numbers. For sure. And

one of the things that we talk about we talk about this more

in the day trade course. Uh we also talk about it in a couple

of our terminology video lessons. There are some traders

put a lot of respect on moving average crossovers. There's the

golden cross. There's also something called the alligator

indicator. So what they're basically emphasizing is these

moments. When moving averages make really strong crosses like

this that these are very significant and so in this case

obviously this is a bearish signal and the crossover when

it first happened was way off. It's not even on the chart. So,

traders like that would would sort of have the attitude of

I'm holding this I buy on a crossover and I'm not going to

sell until a crossover. The problem with that obviously is

that it's not very precise and by the time you're selling down

here, you're selling it like 50% off high of all-time highs.

So, you're really not getting the best exit. I mean, yeah,

you held for for a long time but we talk about that a little

bit. It's not as helpful for trading on the daily chart.

It's a little more helpful for intraday. Um some of the

indicators are also commonly used on Forex but again, mostly

on intraday charts versus the daily. So, now we're going to

talk a little bit about common price patterns. So, these are

some of the things that I love to talk about because I use

these every single day when I'm looking for trades. So, the

most common price patterns that we're going to talk about

patterns of consolidation. It's fairly self explanatory.

Patterns including bull flags and patterns including a bear

flag. So, flag patterns are essentially periods of

consolidation but in a certain context. So, we'll explain that

context and what that looks like. That now, we use these

price patterns really to help us understand low-risk entry

points where we can minimize our downside risk and maximize

our potential. So, this right here is a bullflag and this

stock is consolidating sideways but it's consolidating against

a descending resistance line. So, that trend line is coming

down and it's going to come to an apex point which is where

the horizontal line and the trend line meet and stocks

generally will break out either the upside or the downside

either at that point or before that point and in this case, it

did it before that point and it broke to the upside. Now, we

don't always know when stocks will break these levels whether

it would break here or here or here and we showed this example

in one of the earlier classes but it broke here and my

typical entry is to buy the first pullback which is right

here. As a day trader, I often call it the one-minute micro

pullback. Sometimes, it's a five-minute micro pullback but

it's a short little pullback after a fresh breakout. A bear

flag is a flag that is occurring after a drop. So, a

stock that drops and pops up and then consolidates a little

bit usually before another drop back down. So, this is a bear

flag here. This is a bear flag right here. So, here let's look

at a little zoom in of consolidation. So, this is a

chart where we see this sideways consolidation. So,

this is churning. You have some people buying. You have some

people selling. It's it can be kind of a sort of accumulation

distribution just churn. It's sideways and sideways can last

for long periods of time and it can break out to the upside or

the downside so we don't really like to buy when stocks are

sideways or currencies are sideways because we don't know

how long they'll continue to be sideways so instead we like to

just sort of chart out the consolidation map out the

resistance lines on the top the support lines on the bottom

figure out where that apex point is which should be right

here and then make a decision of okay well we're in

consolidation so if the stock breaks over this level, I

want to buy. If it breaks below this level, I'm either going to

short it or if I'm still holding it for some reason,

maybe I would be selling it. So, consolidation can turn into

a bullflag or a bear flag but there are times where the

consolidation is so long that it really isn't even a flag

pattern at all. It's just going sideways. It's not very

interesting. It's maybe drifting down a little or it's

drifting up a but it's nothing that we would buy. We would

wait for a breakout or a breakdown to occur and we would

want to of course see the associated volume that comes

with that that tells us that other traders are seeing what

we think we're seeing, right? They're seeing something worth

buying. Right. Yeah, these consolidations are really

important to understand because in simplest terms, what a

consolidation really is, it's it means that the the buyers

and sellers are kind of evenly matched and there's not much

volatility going on in the price but when the

consolidation finally begins to or when the price fund moves

out of that consolidation zone. It kind of means that the

momentum is starting to build and potentially uncoil in that

direction and it's really that that's when the pattern can

turn into a bullflag or a bear flag which could kind of help

you locate these great trading opportunities and we'll talk

more about the specifics of the bullflag and bear flag in the

following slides. Yes. Alright. So, here we have the bullflag.

This is one of my go-to patterns for trading small cap

stocks. It works really really well with caps. It doesn't work

as well with large caps with your Facebook, Amazon, Netflix,

Google type of stocks but it works very well with small

caps. It works very well with cryptocurrencies. So, what is a

bullflag? Well, a bullflag is when a stock pops up and

creates a spike. That's the flag pole. Then, the flag is

sideways consolidation after the spike. So, that's just this

kind of period of digestion just sort of churn and what we

typically expect from a bullflag is that this period of

consolidation is where some people are taking profit from

the first move other people are beginning to accumulate

positions short sellers are maybe starting to cover and

then we coil and we breakout so it's this period of tight

coiling and then the breakout which occurs as we break over

this trend line right here so Bowl flag can be as small as

three candles. This right here is a bull flag. We've got three

candles going up, two candles going down, and this is the

first candle to make a new high. It's a small flag but it

is a bullflag and this right here, this whole thing is also

a bullflag. We've got three four candles up and then, you

know, a long period of sideways consolidation but it's still a

bullflag. So, it can occur on all different time frames from

the one minute to the fifteen, 60, four-hour daily chart and

they can take anywhere from one candlestick or two candlesticks

to form to fifteen, 20, or 30. It really is Right. It doesn't

matter. One thing to note that when you're buying this kind of

bullflag pattern, you really want to see a spike in volume

where where you're seeing breakout because that's telling

you that other traders are also getting involved at that same

point and that's that's a very bullish sign to see increasing

volume as that breakout is Happening because yeah as as

mentioned it really just means that other traders are piling

into that same trade and it's it's a pretty good chance that

prices are going to continue higher. So that's the important

thing to remember in general about the market is that the

market is an island where millions of traders are coming

together and so the prices and everything that we're seeing

it's a reflection of market sentiment and that sentiment is

created by traders who think this is a place I want to buy

and so they start buying and the price starts going and more

traders start buying and it keeps going up. It's just so

interesting how the the the market really is just a

collection of a it's a reflection of the emotions that

traders experience. The fear, the greed, the excitement, the

exuberance. It's all on the charts and so we look for

opportunities where we think that the excitement is going to

build and peak and create these breakouts and so in this case

it was right here and then again right here on the second

pullback. So, we'll zoom in here. You can walk us through

this Ethereum chart. Yeah. So, what's cool is that these

patterns can really take place on any time frame. You can find

them on the five-minute chart, the one-hour chart, and in this

case, we saw it on the daily chart. So, we initially saw

that Ethereum went from a low of about $8 all the way up to

four hundred. So, that kind of created the pull of the flag

but over the course of four or five months or actually took a

while. Uh we consolidated for quite some time and what's

interesting is that the consolidation kind of really

began to tighten up as we came into I see October right there

so once that started happening that really told you that

buyers are holding up the price on every little dip and you're

not really seeing much volatility take place and it

kind of shows you this coiling pattern that's happening so in

this case we have the the flag marked off with the two the two

points the two extended points we noted and then once we

finally started curling out of that line the breakout really

just gains so much because what's really happening here is

buyers are seeing that prices are not going lower. Right. And

that's where everybody starts to pile up and and that that

just turns into a major breakout point and can really

lead to some interesting trades. So, in the next slide,

we could see how that how that pattern really unfolded over

the the following few months. Sure, I'll show that one. Um

let me just show you guys one thing here. In in the context

of this one chart, you can see how you have it's almost like

fractals because you have within this is a flag pole

right here for this long flag that occurred right through

here so this is all one flag but then just inside the flag

pole we've got this bull flag right here right that's a flag

and we've got another one right here that's pretty well defined

that's a flag and we've got another one right here so all

of these are little opportunities that eventually

ended up you know forming one large flagpole that created

this you know large pattern out here but you can zoom in and

see this on smaller time frames and whether it's intra day or

it's daily in in short little weekly periods like this or you

can step back and see them on this very high level where you

see this long period of consolidation and in that case

you know buying down here is buying the dips of the moving

average and then selling through the breakout especially

as we get over this descending resistance line. Alright, so

you want to walk us through this Ethereum Daily Chart. So,

this is well basically and I'll let you walk us through it but

this is the continuation. So, this was the chart we were just

looking at where we saw right here was the breakout point and

now we're looking at it a few months later and this was what

that breakout produced, right? Right. So, you really see the

result of what that breakout did for prices. You know, it it

kind of once the uncoiling finally happened. The buyers

really just let loose on the price and we went from three

eighty all the way to about fifteen hundred. So, it really

shows you the power of those kind of patterns and what it

can help you how it can help you to predict these huge

potential future moves especially in cryptocurrencies

where we see so much momentum once the momentum really gets

going things prices just seem to let loose yeah yeah I mean

this is where we saw that really big move and again this

kind of interesting because it's actually on lighter volume

than we saw you know on this candle back here but this might

be sort of that early indicator of the stock the the currency

dropped and lots of buyers stepped up to the plate they

bought it up and then here we get the breakout a few months

later so it's kind of interesting to see that similar

indicator alright so here we have a Bitcoin chart we've got

our moving averages on here and you can see nice flag right

here this consolidation this is a resistance line we draw this

was the breakout the volume that comes in down here we

spike up we have another small pullback right here another

breakout another pullback here and another breakout small

pullbacks here and small pullbacks here. So, you can you

can make a living trading just this pattern because it is one

of the strongest patterns and it's a universal pattern. You

know it for socks, you know it for cryptos because it occurs

in the same exact way. Is there anything else you want to add

on this? I see that nice bounce on the 200 right down here.

Yeah, that was great as well. Really incorporating all of

these these different technical tools and indicators can really

just help you develop such a great edge over the market you

know just just the bullflag pattern itself is a great way

to go about trading these cryptocurrencies since what

they really just help you understand is they help you

predict these major breakout points because once you get out

of that consolidation everybody starts jumping on the train and

that's when prices start going so you really want to learn to

be able to identify these breakout points using using

these flag patterns and you want to sell into the breakouts

and that's really going to help you potentially create

substantial trading profits. Yeah. The interesting thing to

note is that these patterns sometimes can be very short

term like in this case the Bitcoin flag it it worked for

quite some time but eventually we saw that prices finally back

down. So you really have to be disciplined about making sure

that if you're taking this kind of trade that you're also

taking profits and if you fail to have maybe taking profits up

there you really want to make sure that just don't let the

trade go red at least. It's absolutely and that's

definitely true. This is a technical analysis is short

term trading. It's not investing. It's not buying for

the next three or four years. These are very short-term

opportunities and we use larger position sizes to profit on the

short-term opportunities and we certainly larger than we feel

comfortable investing for six months or a year. So, that

compensates for it and and ultimately, most of us make

more on these short-term opportunities because of the

additional leverage of share size that we use or coin size

to the where we probably make more on these than we would if

we were doing long-term investments on the same

instruments. Right, right. When you're incorporating your risk

management, you can really take take advantage of large share

size because at the end of the day, when you have such a tight

stop, you're not going to lose too much versus what you stand

to gain. Exactly. So, here we see the same pattern unfold on

the one-hour Litecoin chart. We saw that we had a giant balance

from a few days ago, prices began to consolidate but once

they finally broke out of that consolidation, prices started

traveling higher and that just provided a great trading

opportunity for anybody that bought that flag breakout but

once again we we see that this flag pattern even though it

originally worked it did come back so you you really have to

have that trading mindset when trading these kind of patterns

because they may work in the short term but that doesn't

mean that it's going to work that the prices are going to

continue moving in your favor so. Right. You have to take

advantage of taking your profits when you can. And one

of the things that we'll talk about more in the class on

trade execution. We'll talk about stops and things like

that but generally speaking we you always want to know as per

risk management, your max loss on a trade and we typically

would set the proper stop as the low of the flag or the low

of the most recent pullback which if you're a buyer up

here, your stop would probably be down here as a tight stop.

Down here would be a looser stop and again, you determine,

do I really want a tight stop or one that's got more space

based on what the profit potential is. So, tight stops

when the profit potential is a little limited and maybe a

wider stop when the potential if it works is that you have a

a real home run type of trade so here's another one where we

have this consolidation this is really interesting too because

this is occurring right underneath a trend line level

of resistance we tap it we fall we come back and retest it we

fall we test it again and we fall and this is also one of

the things that we call a flat top breakout this one's not

quite a flat top but it's not uncommon to multiple tests of

almost the same price and the more times that gets tested,

eventually, we're going to break through it. Now, it

doesn't mean we'll stay above it. Here's the break and then

it drops back below because a lot of people are anticipating

the break and so when it does happen, they take profit or

they take profit at the earliest sign of weakness

because they're like, okay, I got as much as I could get and

now you have an imbalance where people are taking profit,

they're selling especially in this case, people who maybe in

from way down here they're taking profit and now you get

this period of of sell off. Yeah I really wanted to include

this example to kind of help you guys understand that these

flag patterns can really form even pretty far off of the lows

like in this case we had bounced pretty hard and we we

were pretty far from the lows and even then we still saw the

flag breakout occur but of course it ultimately began it

was sold off but even then you could have still taken

advantage of this as a trade because if we had placed our

stop at that previous low right before the breakout this trade

actually still turn into a two 1profit loss ratio trade. Yeah.

So but it it really helps you to understand that even though

it's a good looking flag pattern. It's not just going to

keep going. So you really have to be disciplined about taking

your profits when you're in this kind of situation.

Absolutely. So now we'll talk a little bit about bare flags.

Bear flags are the opposite of both flags. They're the exact

opposite. So with the bare flag instead of the stock popping up

the stock sells off. That creates the flag pull going

down and then after the drop, we have sideways consolidation.

Typically, it's consolidation before the next leg down. So,

it's kind of stair stepping down. Now, obviously, we have

this problem right now with cryptocurrencies where it's not

practical or possible in most cases to short them. So, you

really can't there's some ways you can but for the most part,

you can't trade against the value of the of these

underlying assets. So, these aren't necessarily going to be

short setups that you would trade to the short side they're

more just a pattern to be aware of especially if you're holding

it to the long side that this is a bearish pattern it's you

don't usually want to be holding it and something that

you may be able to apply in the future if it becomes more easy

to you know borrow and and and short cryptocurrencies I don't

know if there's any indication that that'll happen but just

something to be mindful there so this here is a stock or the

currency Bitcoin dropped down and then it bounced up this

right here is sort of that that telltale sign of a bear flag

it's an ascending support line but after it's in the context

of this recent drop so it's kind of moving up and then this

is the apex point where we drop back down right so not the

prettiest pattern for traders who want to see this going up

is there anything you to add on this one. Right, right. Yeah,

just add on to what you were saying. It's just really great

to be aware of this pattern since you really can't short

the cryptocurrency but in case you're long, you want to be

aware that this this type of pattern really means that

prices could go lower. So, it may help you exit a position

before taking further losses. Right. Yeah. That at this point

would be sort of the the best value and here's another big

drop. This is ends up actually being a pretty nice bounce back

up but it of is just a long period of sideways

consolidation below the original breakdown point so

this is the breakdown point here the drop consolidation and

then a further drop here and again doesn't mean these are

going to zero it's just a short term correction and pullback

before you know possibly turning around as you see here

and making its way back up right right so say if you're

long term invested or something in Bitecoin and you saw that

what you could really do to take advantage of it is maybe

you would have sold out your position there and then have

the opportunity to buy it back for for much lower prices.

Right. Yeah. So, alright. So, what we've done is we walked

you through the four important technical indicators that you

really need to understand to start to become proficient at

technical analysis. We talked about trend lines, ascending,

and descending. We talked about support lines, the horizontal

lines, support and resistance, we talked about our moving

averages exponential and simple and we talked about volume and

then of course we talked about the actual candlestick patterns

of bullflags bare flags and the consolidation patterns so these

are going to equip you to start becoming a more confident

trader but remember you have to practice all of this stuff I

remember for me as a beginner trader and not even just as a

beginner I've been trading probably for over a year when I

had a day I remember sitting down and looking at a chart and

feeling like, I don't see anything. I'm looking at an

entire chart. I don't see a single pattern. I don't see

anything to buy or sell. It takes a while to sort of adjust

your eye to visualize these patterns. It's like looking at

a magic eye poster. You don't see anything and then, it's all

right there and so, we're trying to help you get to the

point where you know, you can start to kind of visualize

through everything the patterns And being in the chat room,

we're going to show you these, we're going to point them out

every time we see them, and it's going to become second

nature, but know that it takes some time, just like anything

else, mastering the skill of technical analysis is something

that takes time, and so you gotta study up. Right, right,

and I would say that cryptocurrencies, especially,

for some reason, they're extremely technical traders.

Yeah. And that's likely because there's not much fundamentals

driving the price. It's ultimately just the technicals

that are driving the price back and forth. So, if you're really

interested in trading cryptocurrencies, you should

make sure that you're really focusing on your technical

analysis skills because that's that's what's really going to

help you develop your your trading edge. If you can

recognize these these patterns for what they are and take the

trade before the pattern takes place, you could, you could be

involved in some great trades. Yeah. But at the end of the

day, you still have to incorporate all of your trading

roles such as risk management and you you want to make sure

that you never even though a pattern may look like the best

pattern you've ever seen and you still have to understand

that there's the possibility that the pattern doesn't work

because at the end of the day, it's it's just a pattern. So,

as as important technical analysis is, you you still have

to take it with a grain of salt at times because these are just

traders emotions that are reflecting on the chart. Yup.

Yup. That's absolutely true. Alright, everyone. So, I hope

you guys have enjoyed this class and we'll put together

some for you. You guys can do the homework and then we'll get

into chapter five. Alright, we'll see you guys soon. See

you guys.