All language subtitles for 2. Trending Market (Transcribed on 06-Oct-2023 00-42-15)

Trending Market uptrend.

Anubtrend isa-market that makes higher highs and higher lows.

Downtrend, a downtrend isa-market that makes lower highs and lower lows.

So in an uptrending market, it is not enough for us to know that the price is going up,

but we should also know the structure of the trending market.

So in an uptrend, we should see a series of higher highs and higher lows.

So why does it call higher highs and higher lows?

So as you can see here, this peak is much higher than the previous high.

That is why it is higher high and this low is much higher than the previous low.

That is why it is called higher low.

So whenever we see a series of higher highs and higher lows,

that means we are in an uptrending market.

In a downtrending market, we should see series of lower lows and lower highs.

So this low is much higher than the previous low, that is why it is called lower low.

And this high is much higher than the previous high.

That is why it is called lower high.

So whenever we see series of lower lows and lower highs,

that means we are in a downtrending market.

Let's have an example.

So we are looking at Euro USD for our time frame,

meaning each candlestick represents four hour of trading activity.

So as we can see from the bottom left of our chart to the upper right,

it is going up.

So basically it is in an uptrending market.

But we should know the structure of this price chart.

So we will start at our initial higher highs.

So this is called initial because this is the first higher high that we see on our chart.

So basically this is our starting point.

So we have initial higher high and then we have initial higher low.

So this low is much higher than the previous low.

And this high is much higher than the previous high.

All right.

So if we see initial higher low to confirm that this is a higher low,

we should see price breaking the initial higher high level.

Now once we break that level,

this initial higher low is confirmed.

And we're going to see a new higher high.

All right.

So this high is much higher than the previous high.

Okay.

So if we have higher high,

we can expect that it can create a higher low.

So we can only confirm that this is a higher low once we break.

The previous higher high.

So once we break that level, we should see another higher high.

And then we can again expect a higher low.

And then again, for us to confirm that this is a higher low,

we should see price break this level.

All right.

So whenever we see price making or making series of higher highs and higher lows,

that means we are in a not trending market.

So let's have another example.

USUSDJPY12 our time frame.

So as we can see,

we are in a not side move.

Okay.

We are in a not trending market.

But let's see.

Let's see the structure.

So we will start with our initial higher high.

Okay.

So this high is much higher than the previous high.

And with our initial higher low,

this low is much higher than the previous higher low.

Now, at this point, we don't know yet that this is in a not trending market.

Right.

We don't we only see one higher high and one higher low.

Right.

And this one is initial.

Okay.

So again, we we should wait for confirmation.

So at this point, we should see price breaking this level,

breaking our initial higher high level.

Now, once we break that level,

we should see price making higher high.

Okay.

So this is not this is not initial.

Okay.

Because we already break this level.

And this is the second time you see a higher high.

Okay.

So this is our confirmation that we are.

Possibly in the beginning stage of an uptrending market.

So if we see higher high,

we should expect that it could create a higher low.

Okay.

So we may be higher low,

but we can only confirm that this is a higher low.

Once we break the previous higher high level.

Right.

So once we break that level,

we will see another higher high.

And then we can expect a higher low.

And then again, our confirmation is when the price breaks this level.

Okay.

Now, once we see a series of higher highs and higher lows,

that means we are in an uptrending market.

So of course, uptrend is not forever.

At some point, it has to terminate.

That is why we have uptrend termination.

So one way to identify an uptrending termination is by break of structure.

So what what do I mean by that?

So in an uptrending market,

we should see series of higher highs and higher lows.

Right.

Now, once we see price breaking the previous higher low.

Okay.

So this is our previous higher low.

That means the market is signaling that the price might possibly change in trend.

All right.

So this this this break.

A previous higher low.

This is our warning sign and this is our initial lower low.

Because this is the first low that we see in this series of higher highs and higher lows.

All right.

So this is not yet a trend change, but a warning sign that possible.

This uptrend is already finished.

So if ever that you have a position, let's say from here, right.

You have a by position from here.

This is a good sign to manage your risk or close your close your trade for a profit.

All right.

So again, this is our initial lower low.

So we we should expect for price to create our initial lower.

Now, at this point, we don't know yet if this is really our initial lower high for us to confirm.

We should wait for price to break this level to break this initial lower low level.

Now, once we break that level, we will have our lower low or our confirmation that.

This uptrend is already finished and we are in the beginning stage of a down trending market.

All right.

So let's have an example.

So gold, gold eight hour time frame.

So as we can see, we are in an uptrending market.

So you have series of higher highs and higher lows, right.

So at this point, as you can see, price is already decelerating.

And then suddenly, we see price breaking this previous higher low.

So we have our initial lower low.

So we will wait for we will wait for our initial lower high.

So again, we will wait for confirmation and that will come.

If we break this previous lower low.

So once we break that previous lower low, we will have our lower low or our confirmation that this trend is already finished.

And we are starting on a new trend.

All right.

So we should expect after this lower low, we should expect a lower high and then lower low and then lower high.

All right. So we are in a down trending market.

Another example crude oil daily time frame.

So we are in an uptrending market.

We have series of higher highs and higher lows.

Okay.

And then we see a break of structure.

So price breaks this previous higher low.

Then we see our initial lower low.

So the warning sign.

All right.

So we should expect that price will rally to create initial lower high.

So for us to confirm that this is our initial lower high, we should wait for price to break this level.

Okay. So once we break that level, that is our confirmation that this trend is finished and we are in a down trending market.

Let's have an example down trending market.

So for down trending market again, it's a series of lower lows and lower highs.

So as we can see from the upper left to the bottom right of our chart, the price is going down.

So basically we are in a down trending market.

But we should identify the structure of this rise chart.

So we will start with our initial lower low.

So this is the first lower low that we see in our price chart.

And then our initial lower high.

So this is the first lower high that we see on our price chart.

So we can only confirm that this is our initial lower high.

Once we break our initial lower low level.

All right.

So once we break that level, we will now have our lower low.

And then we can expect that the price can create a lower high.

So this lower high can only be confirmed once we break this lower low.

Okay. So after breaking after breaking that level, this lower high is already confirmed.

And we will now see a new lower low.

So this low is much lower than the previous lower low.

Again, we can expect a lower high.

And after we break this level, we can see a new low in the market and then lower high and then lower low.

Now, once we see a series of lower lows and lower highs, that means we are in a down trending market.

Okay.

All right.

So let's have another example silver eight hour time frame.

So as you can see, the price is going down.

So we are in a down trending market.

We will start with our initial lower low and then our initial lower high.

So once we break this level, we will now have our lower low.

And then we can expect that the price will create a lower high.

So we don't know yet if this is really our lower high so it can still go up.

We can only confirm that once we break this lower low.

So once we break that low, we should now see a new low that much lower than the previous low.

And then again, lower high and then lower low once we break that level and then lower lower lower high again and then lower low.

So same with an uptrending market, a down trending market is not forever.

Okay.

At some point, it should end so that is why we have.

We also have down trend termination. So down trend termination can be identified when we see a break of structure.

So in an uptrend, we have a lower low lower high lower low lower high lower low.

All right.

Now, once we see price breaking our previous lower high.

Okay.

That means the market is signaling that there can be a possible trend change.

Okay.

So this is a warning sign but not yet confirmed if we're going to see a trend in a change in trend.

All right.

So this is our initial higher high.

And then we can expect price will create our initial higher low.

Now, at this point, we don't know yet if this is really our initial higher low, it can still go down and break this lower low and continue its downside move.

Okay.

Now, for our confirmation, we have to see price breaking our initial higher high.

Okay.

Now, once we once we break that level, we will now have our higher high or our confirmation that this down trending market is already finished.

And now we are entering into a new trend.

Okay.

So let's have an example silver for our time frame.

So as you can see on the left side, we are in a down trending market.

So we have series of lower lows and lower highs.

Now, as you can see, price breaks through this level, our previous lower high.

So we have a change of structure.

So this would be our initial higher high or our warning sign.

So again, at this point, it is not yet confirmed that this trend is finished.

Okay.

We only have our warning sign.

Okay.

So after that initial higher high, it is possible to see initial higher low, but we can only confirm that this is our initial higher low.

If we break this level, all right.

So at this point, we are, this is not confirmed yet.

Okay.

So we have to go down and break this low and continue its downside move.

Okay.

So we have to wait for confirmation.

We have to see this, this level break.

Okay.

So once we break that level, we will now see a higher high or our confirmation that this trend is already finished.

So we are about to see a new trend.

Okay.

So higher high.

Now we can expect a higher low.

Then a higher high higher low higher high.

All right.

So another example, USDJPY daily timeframe.

So coming from a down trending market.

So we have series of lower lows and lower highs.

Now at this point, we see price breaking this previous lower high.

Okay.

So we have a change in structure.

So this is our signal that this trend is about to end, possibly about to end.

And we are starting in a new trend.

Okay.

So initial higher high.

And then our initial higher low.

So again, we have to wait for price to break this level to confirm that this trend is already finished.

Okay.

Now once we see this confirmation, we can now expect price to make a higher low.

Right.

So higher low higher high.

And then higher low, then higher high.

Okay.

So now we are in a in a not trending market.

Okay.