Original subtitles

Let's look at some classic trend formations with these price bars in 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 going 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 the classic trend formation with price bar series, so 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 the series or if you're looking at a series and they tend to be, let's see, uptrend.

So the highs are higher, you have higher highs.

So each day, the higher the highs 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.

That 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, you know, that

uptrend and ride that uptrend until it's time to sell.

And you can enjoy a price increase in 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 is the low today lower than yesterday or lower over the past few days?

And looking at the trend, and again, if the attacks are actually lower, you know, the higher the

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're going 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 to maybe take a known on is you want to

wait for the trend to develop.

Where people really struggle is the they might think, Oh, I think a trends developing, but they haven't

really proven it yet or they haven't really, you know, 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,

where you want the way to lose money in technical analysis, the kind of guess that things before they've

actually developed, you want to let things develop, to want to have trends develop.

So that's a key not to take away is let the trend develop and we'll learn how to draw a trend line.

Some things we have a whole section in our parents, but right now, higher highs or upward trends,

lower lows are downward trends as 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 the on the right hand closing prices, they're always going from each price

by each 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 where the 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 or right, you know 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 super strong one, but you can see the right on each individual vertical bar 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 would be doing things like

this here throughout, and this happens to be a sample from Procter and Gamble.

Or you 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, you know, 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,

you know, there's no definite trend.

They're 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 where it 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 what went 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 call on from there for some significant price moves, both up and down.

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

a downward trend there just based off price bars.

The second thing I think you would 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.

One that is probably the most classic thing that's ever said in technical analysis is the trend is your

friend.

You'll see that come up.

Very well, because the idea of the trend is this gives you some predict some prediction capability

when you have those strong up trends, 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've got to let your friend develop.

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