Bitcoin Pattern Trading Masterclass | Chesray Daniels | Skillshare

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Bitcoin Pattern Trading Masterclass

teacher avatar Chesray Daniels

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

12 Lessons (44m)
    • 1. Introduction

      1:11
    • 2. What you'll need

      1:03
    • 3. Intro to Patterns

      2:23
    • 4. Triangles

      5:23
    • 5. Wedges

      7:48
    • 6. Flags

      2:58
    • 7. Head & Shoulders

      5:31
    • 8. Cup & Handle

      3:05
    • 9. Double bottom

      4:01
    • 10. Double Top

      5:26
    • 11. Diamond Pattern

      4:22
    • 12. Final Word

      1:14
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About This Class

Welcome to my masterclass.

In this course, you will learn fifteen specific patterns that you may encounter in the bitcoin and cryptocurrency charts and how to trade them profitably. Some more common than others. We’ll be focusing on how to use those patterns specifically in the bitcoin and cryptocurrency markets. Which in many instances is quite different from other markets.

Each group of patterns has its own section and each pattern its own lecture. The lectures will cover the basic fundamentals about the patterns, how they form within the charts, where the price is likely to break as the price continues to move, and where to open and close trades.

This course is perfect for all levels of traders from expert forex traders wanting to branch into specific bitcoin trading to beginner bitcoin fanatics wanting to increase their profit.

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Transcripts

1. Introduction: Hey everyone, I'm Chez and welcome to this course. First, I'd like to thank you for allowing me to share some knowledge with you that I'm sure benefit you greatly. In this course, you will learn 15 specific patterns that you may encounter in a Bitcoin and cryptocurrency charts and how to trade them profitably. Sure, there are many tutorials in courses on patent rating. But what's special about this course is that we'll be focusing on how to use those pens and specifically on the Bitcoin and cryptocurrency markets, which in many instances these quite different to other markets. At the end of this course, you'll be able to identify 15 different chart patterns. Be able to analyze what this means for the price movement and how and when to open and close traits to bring in those profits. Keeping mind that all of the pictures in this, in this course is mine. So all the price movements were traded by me. The goal of this course isn't to teach you how to trade. I'm sure you already know the basics or you can learn that somewhere else. I'll be giving you a few tips along the way, however. But my goal is to give you the tools to make the learning process much smoother. 2. What you'll need: Firstly, before we get started, you will need a few things to get started. But before that, I suggest you only start trading with real money once you quite comfortable with the content of this course, you will need some way to view these charts on. I recommend trading v.com. I'm not sponsored by them or anything, but I just think it's a great platform and it's totally free to sign up and get started. If you haven't used it before, make sure to get used to the platform first and then watch the patent videos because you'll need to know how to move within the chart to plot your patterns. Next, to open and close traits on Bitcoin and few other cryptocurrency I highly recommend by bit.com. It's an extremely secure and reliable site, also free to use. You can use my sign-up link and we both get a reward once you deposit. So I appreciate anyone who uses my link, you can find it in the description page and I'll probably Lincoln around somewhere else. Again, get yourself used to the platform before stock trading. So that the trading process a little bit more comfortable for you. 3. Intro to Patterns: Okay, so now that we've got the introductions out of the way, let's get right into the content. You may encounter some new terms in this course, so let's get you used to them. The first term, break in a patent breaks the price moves out of a pattern either to the upside or the downside. So in this case, the patent broke this support line to the downside. If it broke the resistance line to the upside, that would be an upward break. This obviously then is a downward break. Bullish and bearish. If something is bullish or if the chart is bullish, it means it's going to the upside. If it's bearish, it means it's going downwards. The nice thing about patent raiding is that you don't need to predict where it's going to go. You don't need to predict whether it's bullish or bearish, even though some patents are, are, are biased, either bullish or bearish, you don't really need to know. You simply find the pattern on trading you use the tools I'll give you in the next couple of videos. Understand what is more likely to happen after the patent breaks. See where it breaks and open a trade. Again, many patterns in the sky can break either to the upside or the downside. And therefore we will either sell short window breaks down or by long when it breaks up. When trading breakouts, breakout conformations are extremely important. Only open a trade if the following criteria is met. A candle body closed past resistance or support above average volume support and the retest of the supporter resistance. Now it's important to know that sometimes the breakout can be so volatile and there are a couple of chart patterns in the series that I will tell you. These are so volatile, so they might not be a retest of the support resistance. So you sometimes might only have the first second, use your own judgment and use a proper stop-loss. The types of patterns we'll be looking at in this course. They are 15 in total. We're looking at three triangle patterns for which buttons to flag buttons, the cup and handle it and shoulders, inverse Head and Shoulders, double top or impotent, double bottom or W pattern. And the diamond pattern. 4. Triangles: In this video, we'll be looking at the triangle patterns, will blending up three triangle patterns, each with their own bias that we can analyze and use to our advantage. Triangles fall under the category of continuation patents, which means that if a triangle forms often move to the upside and downside, that triangle would likely break and continue in the original direction. Basically, triangles or horizontal trading patterns. At the start of the triangle, it's at its widest point. As the market continues to trade in a sideways direction, the range of trading narrows and the point of the triangle is formed. The longer the triangle carries on for the mole, volatile and powerful, the break will be the symmetrical triangle. Possibly my favorite pattern of all mentioned in the series because of its high level of readability and trading success. And said that this pattern is formed when buyers and sellers both run out of steam, leading to a period of indecision. Volume decreases as the pattern continues. And the Bollinger Bands may seem, may seem to start squeezing. Don't worry if you don't know what Bollinger Bands or you can look it up if you're curious. The bias is usually into the direction of the trend that leads into the pattern. But the price can break out to either the upside or the downside. As you can see, the trend leading is downwards here, but it seemed to be breaking to the upside. Trend is going up and it breaks to the upside. Symmetrical triangles are most often seen on a one hour and the four hour timeframe for Bitcoin. So the three breakout confirmation signals should be met before you open a trade. Note that sometimes there's no retest or they use only a slight retest isn't exactly dist of this, of this resistance line. So use your own judgment in that regard. The price target is equal to the measurement from the top to the bottom of the triangle. So v here, you would take that distance and you'd plotted after the breakout. As you can see, the price, sort of a derivative, but it moved a little bit higher. So if you set a take profit day, your take profit would have been hit. What you can do is you can only exit portion of the trade day to allow your price to keep moving up. Over here, we have the breakout to the downside, as you can see, there's no retest of the, of the support line and the tray just keeps on going down. The ascending triangle is most often seen as a continuation of a bullish trend or reversal of a downtrend. So as you can see, there was a downtrend and as reversed and it has now gone into an uptrend. This pattern is formed when buyers cannot break pasta constant horizontal resistance line over there. But the sellers are running out of steam and cannot hold the loads. These loads cannot be held. Subsequently making ILOs, as the pattern continues, the longer the pattern continues for, the more volatile and explosive the breakout will be. A person has a slight break bias to the upside, but again, open a trade indirection that the breakout is confirmed. The price target over here will be again measurement from the top to the bottom of the triangle. As you can see, this trait is on its way down to the price target in this image and a ascending triangle is seen. But it has broken to the downside, even though it has a bullish bias, there was sufficient volume in this exact instance. Obviously, it cannot be shown in the shot. The ISA clear candle body close below. There's a retest of this support line. And therefore, you can open the trade as it retest. The descending triangle is most often seen as a continuation of a bearish trend or reversal of an uptrend into a downtrend. Therefore, quite useful to predict the end of an upward trend. The de-centering triangle pattern is formed when the sellers cannot break past a constant horizontal support. The sellers cannot break past the support. But the buyers are running on a steam, cannot hold these hives, these eyes cannot be held. Longer. The pattern continues forward, the more volatile and explosive the breakout move will be. Once again, there will be decreased volume. And that can confirm the pattern. This pattern is quite bearish, she buys, but again, open a trading direction of that. The breakout is confirmed. Over here. The breakout is confirmed to the upside. So this candle close is a retest and the price target will be the measurement from the top to the bottom of the triangle. In this triangle, there has been a break to the downside, showing again that the trade must only be opened once a trend line has broken with the retest. And you would notice that there is an increased amount of volume in your volume profile. 5. Wedges: The wedge buttons, in the wedge buttons to trend lines are drawn to connect two highs, to connect highs and lows of a price with the highs and the loads are either rising or falling at different rates. The sole creator, which pattern? There are two narrowing wedges and to broadening wages. These peasants are extremely useful patterns. As a breakout is almost a certainty. Or you have to do is determine in which direction the break within the rising wage. The rising wages formed when a higher load or created as a steeper gradient than the II's. The rising wages. A slight bias to break to the downside, but can definitely break to the upside is especially when the acid is on a longer-term uptrend as Bitcoin was when this wave was formed in the pattern in the charts. The conformation of the breakout is the same as for the triangle. You get an hour really close below the trend line. There would usually be a retest and there would be significant volume. Over here. There wasn't a retest. But later on as the time developed, there was a retest of this. I don't have a picture that unfortunately, there was a retest and the price broke down. If you want to see what a retest looks like, you can go back to the triangles and the operations of retests. The price target of the rising wage, if it breaks or the downside is at the bottom of the wedge. And over here, the price targets at the bottom of the wedge if the brace, so the upside, however, it can be argued at the price order can be measured the same as for the triangles. So from the top to the bottom of the base, it will break to the upside. Here we have a rising wage that has broken to the upside. So it's usually biased direct to the downside. However, sensor has broken resistance to the upside. We now confirm this as well. One of the three conformations has broken to the upside, will wait for confirmation. Retest of this line with significant volume, which was in this case, and an upside target, which would be the measurement from the top to the bottom of the wedge. The falling wage, the Bitcoin charge the falling wages, usually she usually seen during an uptrend, the formation of the falling wages, therefore, a consolidation or breathing pattern until the buyer step in once more to keep the upward move going. The trend lines drawn above the highs and below the loads on the price. George Patton can converge as the price slide moves, momentum, loses momentum and bias tape into slow the rate of decline. The folding wedges greatly biased towards the upside, but can definitely still a break to the downside. However, that's very unlikely, especially in an upward Bitcoin trend. Three-point conformations must be used and are really close above the resistance, lack the support line or the resistance line which is not turn into support. A retest of this line. And Enough volume to push it up to the price target. Then the price tag that would be in an upwards direction, the top of the wedge in the downwards direction, which again is very unlikely, would be the measurement from the measurement of the base to the bottom side. The rising broadening, which the rising broadening wages characterized by two diverging upward trend lines, which means they move away from each other. In theory, the rising, broadening wages and 80 percent chance of breaking into the downside. But as in the Bitcoin space, know that that's not always the way it works in the bull market. This chart, as you can see, has broken to the downside. It has a candle close, we have a retest, and we haven't break into the downside. The volume profile in this case was significant, which means that the three-point conformation is confirmed. Therefore, you could have open a trade right there. You'd have made a significant profit as the price move down to the price target. The price target on a downtrend would be at the lowest point. Once again, of the breadth of the weight, you can take profits. They, which can do is you can take some profits and it'll drag to the bottom. But if it, if it breaks down in an uptrend, there's a chance that it might not even reached the bottom. So just keep an eye on what the price moves. To the upside. There's no real way to know where it's gonna go. That's why you can use Fibonacci's. You can use other indicators, but there's no measurement for the price target. This is but going, price rising, broadening, which after this, there was some resistance day, but the price moved to the top. This was right before an extreme bull market. So there was really no way of knowing where this was going to go if I ever broke to the downside, to the probably found supported that level. Now, before we continue, let's see. I'm gonna give you a couple of seconds to see if you can see another pattern in this chart. It's quite significant and it's quite in your face giving you five seconds to figure it out. Did you figure out? Yes. That's a sending triangle. Can you see straight line increasing support? That's an ascending triangle. The price target would be the measurement of that base, which it exactly it over there. So you, since this is such a large pattern, you can see patterns within the pattern over there. That's an, that's a symmetrical triangle. Can you see that? If you draw a line like that and like that, that's, that's asymmetrical triangle. The price target would be that base. And it hits the price target exactly. The descending broadening wedge. The descending broadening, which is characterized by two diverging bearish train lines. This is a bullish the bias chart pattern, but like all others, it can still break to the downside where you would open a short trade. Once again, use a three-point conformations. The price target of this move is the top of the wedge, but most probably, well, keep moving to the upside of taking the price tag so you shouldn't really close your opposition of there. Let's go back to the rising broadening, which if this breaks to the upside, right? What you can do is to find the two. You want to know when to close your position. So okay, now let's use this one. If it breaks to the upside, right? You can measure from the low. So this is one hole moves. If there was a rejection there, you can measure it from the previous low. So there will be a previous low. There will be a significant move to the top. And they would probably be some resistance up there. If the price ends up moving down again and it moves down 30 percent, that is where you close your position. So you keep it open to the upside. If it moves down and moves down to about 30 percent of the move to the upside, you can close your position. 6. Flags : The flag buttons, flag peasants move against the direction of the prevailing price trend and tend to look like a flag stemming from the initial price trend, which would represent the flagpole. Two types of leg patterns will be shown in this video, namely the bot flag and the flag. The Bull Flag ranges from here to here, and the pole ranges from here to the bottom. Flags or eras of tight consolidation in price movement, showing a counter trend move that follows directly off the sharp directional movement in price. So here we have a movement from the bottom left of the image to this area over there. And this will be the flag. Note that the wolf leg is invalidated if the flag, if the end of the flag extends lower than halfway up the price, up way up the flagpole. As the name suggests, the blue flag is a major bullish bias. But price may break in the downwards direction. We are short position may be opened. It must be noted that once a bull flag breaks, the press movement may be extremely rapid and therefore waiting for retest of the trend line may not lead to the best results. Therefore, using a candle close and candle close over there. And volume support will be enough. Just make sure to use adequate risk assessment and use a stop-loss. As you can see in this image, there is no retest of this support line. And measure price target can be used from the base of the flagpole to the bottom left of the image, to the top of the flagpole. So via a major part of target would be about here with a similar line. That's why it's there. Bare flag, the Bear Flag is the opposite of the bull flag, occurs as a continuation of a bearish trend. The flag is an area of tight consolidation in price movement, showing a counter trend move that follows directly off the sharp directional movement in a downwards price. Note that I couldn't really find a bear flag in the Bitcoin chart because of how bullish it's been recently. So this is taken from another cryptocurrency. The Bear Flag as a major beverage bias, but price may break into the upside direction. We're long position may be opened if they ease. There's a confirmation. As with the bootleg, must be noted that once a beef leg breaks, the price movement where the extremely rapid and therefore waiting for retest of the trend line may not lead to the best results. Therefore, using the candle close and volume support is confirmation is enough. Make sure to use adequate risk assessment and once again, uses stop-loss. Measured price target for the Bear Flag is the same as the Bull Flag. It can be measured from the base of the pole all the way to the bottom of the flag. And that would be over there. 7. Head & Shoulders: In this video, we'll be looking at the Head and Shoulders pattern and the inverse Head and Shoulders pattern. Head and Shoulders pattern is information that appears on a horizontal baseline with three peaks. The outside two are quite similar in height, and the middle is the highest. So you have the outside peaks and the inside, that'll be the left shoulder, right shoulder and the head. The head and shoulders pattern is an indication of the end of an uptrend and then the consolidation period may ensue. I myself, I'm not too fond of the head and shoulders, especially not in the Bitcoin chart. We're not in the bull market because of how often it is invalidated. So by that, I mean that the patent doesn't really play out bearish sheet, but sort of just fizzles out and move sideways. You can sort of mitigate that risk by seeing if the head and shoulders forms after a strong uptrend or if we just forms in the middle of a sideways movement or in the middle of a downtrend, then it probably won't break to the downside. The bias of the hidden shoulders pattern is extremely bearish. Like I said, it's often seen at the end of an upward trend, therefore signaling that a blow of TOC may follow. A break of the support trend line with the candle body close is usually enough to signal a confirmation of this pattern breakout. That being said, the volume support is essential and the retest of the line may occur if there's not enough strength behind the break of the trend line and the price starts ranging. The Head and Shoulders pattern is invalid it so if there's not a break, a strong even if there is a strong break, but there's not enough volume support and maybe there isn't a retest, it will probably just fizzle out to the side. So in this chart, you have the hair, the left shoulder, the right shoulder, and the head over there. As you can see, it comes from a downwards movement. So this might not play out really. This is just to show you how it looks. This is the price target in the pattern breaks a straight line, is measured from the peak of the head down to the base. So the measured movies down today, like I said again, make sure that you have a solid hourly or for hourly break of this line, a close. Now just a week. You can see those weeks not just to wicked close. You have enough volumes support the bottom. And you want to make sure that you get a retest at this line and then a break to the bottom. Once again, you've got the head and shoulders lifted. This is actually a very beautiful little hidden shoulders. Yeah, this horizontal, horizontal but this line support of the head and shoulders. And you have a an upward move. So this hidden shoulders comes often upward move. So this most probably will break down to the bottom. This one. In this example, the break down to the bottom and there was a handsome price target to the bottom. Inverted and shoulders. The inverse Ellen Show this is essentially the mirror image of the head and shoulders pattern. And it's often seen at the end of a downtrend, as you can see. When this pattern forms at the end of a downtrend, the bias is almost always bullish in the form of very versatile. You've got the head, got the two shoulders. It goes up, their brakes retest and the volume supported moved goes to the upside. As with the Head and Shoulders pattern, a break of the support trend line with the candle body close is usually enough. The signal confirmation of this pattern break volume support is essential and the radius of the line may occur if there's not enough strength behind the break of the trend line and the prices ranging they invested in children's patent is invalidated. If the patent breaks a trained eye with enough volume, the price target is measured from the peak at the bottom down to the trend line. As you can see, I made this image nice and big for you guys. It didn't cut it out because I wanted to show you how strong are very virtual pets indices. So it comes from the bottoms, very strong. Move to the bottom. You've got your head I mean, your head, you got your left shoulder, right shoulder. And there was an extremely strong and moved to the top. I know the third conformation sign is that it breaks down to the bottom, but it doesn't always occur. So if you waited for that, you would have missed out on the street. But if you didn't, you would have been in a very profitable trade. That's that being said, if you don't want to wait for confirmations, you might lose trades, not lose as in you might not open them, you might lose them as in you will get stopped out. So you choose, do you want to either miss out on an opportunity to trade or do you want to get stopped out? Do you want to either miss out on this opportunity, the upside, or do you want to get stopped out if it does move to the bottom? I certainly don't wait for a retest. So I was in the straight when this happened. But I set my stop-loss right to this, to this, to this line. Actually below the line so that if there is then a retest, it doesn't hit my my stop-loss. 8. Cup & Handle: In this video, we'll be looking at the cup and handle pattern. The handle is put a beautiful person tissue and the chance merely because it appears so seldom. But when it does, the results are spectacular. The cup handle is a useful signal to go long. Cup and handle passing is formed with the U-shaped being the cup. With the horizontal resistance line, as you see with the yellow and a downward flag being handled, the buyers are trying to break through horizontal resistance line, but cannot until the final push from the flag. From the handle. The company and low patent is an extremely bullish pattern as long as the breakdown, as long as the breakout is confirmed, as I'll explain. There are two ways. One can play the cup handle. The first is to play it safe and only open a trade once a candle body closes with sufficient volume above this horizontal resistance line over there. The second and much riskier way is to open a trade when the price breaks out of the handle over there. Profits may be a little bit more if you open it over there, but you may end up losing the trade if this horizontal resistance line cannot be broken. And then for the pattern will be invalidated. Therefore, the company handled pattern is invalidated if the price cannot break through this resistance line and it will fizzle out or it will go down. So basically, I suggest opening a trade once the candle breaks, pause day. And obviously you have, you, you retest of this line. You can open a long trade over there. A handsome measure price target to the upside can be made from the bottom of the cup to the horizontal line. So you take a measurement from day to day and you plotted from your entry point, and that would be your, your price target. Over here we have another example. I hope you don't get too confused at all this lines and stuff. It should be quite clear. Here we have the cup. Here's the handle called beautifully actually, the measure move will be from the, from this horizontal line to the lowest point. Up there. Over here you can see in this picture, there has not been, there has been a break of this cup. So if you wanted to be addressed k, You could have taken a day. But over here you can see there has not been a break of this resistance slide. Actually this is quite, quite some resistance going on there. So once this is broken with a candle, you can open trade. But I suggest waiting for the retest of this line with sufficient volume open and then you can open the trade at the top, as you can see is no real volume of here. We want some extremely high volumes, so above average. And you can open a trade. 9. Double bottom: In this lecture, we'll be looking at the double bottom pattern. With a W pattern. The W paths are no double bottom is well-known and is often used by trade is to predict the end of the downtrend or to trade a breakout to the upside. The W pattern is formed when a downtrend find support and turns around to move upwards. However, Price finds resistance again. So find support over there, moves upward, finds resistance, and moves downwards once more. The base, however, cannot bring the price down to the previous low. And a high or low is form. So you've got a low, low day. But a low or a high or low is formed over there. Once price moves upwards to the previous resistance, a W pattern is four. As you can see, the W over there. Once again, you have price movement to the bottom. Price gets find support, goes up, resistance goes down to a higher point than previous, than the previous low moves up day. And if it moves to the two that support a resistance level, again, w is formed and the confirmation only knew would wait for the confirmation for trade to confirm the W breakout, a candle body must close about this horizontal line. With significant volumes support. Of course, these patterns are often extremely explosive and therefore retest of the horizontal line may not occur, does happen sometimes, but most of the time it doesn't happen. So you can set your stop-loss just below the line and write the profits to the upside. So that's a close candle, close there you iterate, and then open the trade. The price target of this pattern can be measured from the horizontal line to the lowest point of the pattern as a measured move. So from the to the lowest point of the pattern and the measured move would be to the upside over there. If ever the pattern is seen at the end of insignificant downtrend like that and the patent leads to significant trend change. The upside can be much higher than the actual measured move. So for this one, that measured move would be from day to day. So it would be from the turbine. But since it comes from such a high point, the upside can go to any location. But you should be safe. Take some profits at the measured price tag. Over here we have another W pattern, um, as in the previous video, I said I use white candles instead of red ones just for the, the to take the fear out of, out of trading. So here we have a downtrend leading into a low, goes up to a resistance level and another low, which is higher than the previous loan. And then it finds some sort of resistance. They again, once it breaks that resistance, you see a nice move to the upside. You would have this as your, as your measurement update, and that is where you would take profits. Once again, we have a nice move to the downside to bottoms. Once again, you can see that the, that the second bottom is higher than the first bottom, which proves that it's a W or a double bottom. This is the area of resistance that it needs to break once it closes the candle above, as you can see it as retested this line. So that's nice. You could open a trade day or you could have open a trade they suggest stop us to the bottom and write the profits to the top. 10. Double Top: In this video, we'll be looking at the double top or the impotent. The impotent or double top is often seen after strong move to the upside, leading most probably to a subsequent moved to the downside. The price action pattern involves the formation of two highs at the critical resistance level over there. The fact that the market was rejected from this level not once but twice, is an indication delivery significant and that a bearish scenario will most likely unfold. The embedding is only confirmed and therefore tradable once the price candles closes below the support level, as the white line indicates. For traded to confirm the impotent break out, a candle body must close below this horizontal line with significant volumes support. These patterns are often extremely explosive and they for retest of the horizontal line may not occur. Use proper risk management however, and use a stop-loss. Let's go back to this one actually, the price targeted. This pattern can be measured from the horizontal line over there to the highest point of the piston as a measured move. If I ever, the pattern is seen at the end of a significant uptrend and the peasant leads to a significant trend change, the downside can be much greater than the measured move itself. So if you want to find out how low this patent athlete can go, and you make sure that you have a downward conformation, proper volume supported the bottom. Sometimes you would get a retest on the, on the bigger, bigger, impotent. I'm, I'll show you later on. But on these small, minimal ones, you most probably won't get a retest and you'll get this move to the downside. Over here, we actually have a symmetrical triangle, but I want you to see that most of the time you don't just get one pattern. We here we have a M pattern is symmetrical triangle. So this would be the horizontal line, right? It breaks down and closes with this being the measured with price target from the all the way down. As you can see again, there's no retest of this line. Well, you could, you could think that this is a retest, but it's not. This is the horizontal support level, but broke through and it reached the price target. Yeah, I'd like to show you that impotent usually occur at the end of a long uptrend. So on the left-hand side we have a train to the upside. First of all, you'll notice that I have white candles instead of red candles as my bearish candle. Or read. Well, they should be read. Most people have it read. The reason I have it white. Just another tip for you guys is that I've changed it to white to sort of eliminate the negative, negative emotions that are behind having read candles. So it allows one to trade without your emotions to make you, it sort of develops a better trading inside of you. Put it that way. So back to the pattern. We have a major trend to the upside of the year. We have the impotent with the first high over here, the second higher over here. The horizontal level over their support. Some support and closes a candle below. Now you have this retest. So you'd normally get these retests of disease inefficient uptrend. We go back here. This wasn't really a significant after the contrary, the chart now, but this wasn't really a significant upgrade. So this move was just a quick measured move, sculpt trade to the bottom. But over here we have a significant upgrade to the top. You'll notice that the buyers can't get through this level anymore. There's a retest with the buyers trying to get through again and a significant price drop to the bottom. So yeah, you can use, you can use the measured move from there to there. We can measure it all the way at the bottom is probably close your position there. Or you could use a trailing stop-loss. So you go down, you'll probably get stopped out over there. So just to recap, two areas of this pattern is important to take note of the area on top where the second move, second move. This is the second move, this to the first move. Let's go back here. A second move should not be higher than the first move to the previous one. The second mode should not be hired in the first mode. Right? And this level over here, this horizontal level, need to be on the same straight line. This is the support line that needs to be broken for it to be a valid double top or impotent. 11. Diamond Pattern: Okay, So this is the last lecture video on the patterns you will encounter in the Bitcoin shot. I've kept this one last because it's quite a tricky one. But once confirmed that's one of the most explosive and profitable patents that you will encounter. This is the diamond pattern. Diamond pattern is quite a reliable indicator of a possible reversal move. But, but going traders be way and a macro uptrend between loves to use diamond patents as a brief consolidation period before making its next move to the upside. The pattern is characterized by a sharp upward or downward move in the center of the patent. So yeah, you'd have a sharp downward move in the center. Sometimes you will have consolidation that way with a sharp uptrend and consolidation that way. Usually the pattern is seen of the significant move to the upside with a period of slow upward movement. So move to the upside, but a period of slow upward movement. A sharp price down to the middle, down the middle. And another period of slow upward movement. Notice that the rightmost angle of the pattern resembles a symmetrical triangle. So this actually resembles asymmetrical triangle. So if you'd cover that, hide this area to the left, this actually looks like a symmetrical triangle, therefore, also suggesting an upcoming press breakout. The diamond pattern has a bearish bias. But if the price breaks to the upside with a conformation, that will almost certainly be to the upside. Once again, when the price breaks to the upside, we open a long trade. And inversely, when the price breaks the downside, we open the short rate. The price breakout can be confirmed as with the triangles on the one hour or for our clothes over the trend line with a candle close over the trend line, above average volume support and a retest of the broken train line. So with one of these triangles, it's not asic, as quick and explosive as the flags or the the, the hidden shoulders and the w and impotence. So yeah, you would expect a retest to make sure the breakout is still in play. And yeah, sometimes obviously they won't be a retest. So you can apply your, your proper risk management and use a stop-loss. So so fundamentally theoretically, the diamond pattern has a, as a sharp move to the upside or a significant move to the upside. Consolidation, sharp moved to the upside or the downside. They had the movers to the downside, data, move it to the upside, and another consolidation. And that is where it would break. You've got to break that a retest and a what we call a waterfall break to the downside. So this is quite significant reversal pattern. If of course, that broke to the upside, you would open a long trade day because most probably it would have gone to the upside. So yeah, we've got a and another diamond pattern. There's actually two ways. One can measure the price target of the diamond pattern. The first is quite a large measurement where we the same distance as the move that leads into the patent. So yeah, we've got some consolidation and then you've got a strong move into the pattern. So the measured price target out of their patent would be this measured move to the upside. The second measurement you could do is usually a bit smaller, but it's less, less risky. As would be the vertical. The vertical distance between the highest and the lowest point. So it would be around about the, you wouldn't make all the profits, but sometimes you do get the patent just fizzles away after that. So yeah, you'd have your candle close above a slight retest, you would open it over, they will just write it at the top. If you took the principle that would go from there. 12. Final Word: So you've made it to the end of this patent trading master gloss. I hope you've learned a few things and found this course purpose for is anything that you don't understand or anything you'd want to clear up and clarify, send me an e-mail. I've lifted in the description and I'll try my best to help you out. For you to be able to use these concepts and tips in the charts. I just, I suggest you go out and watch the charts and see if you can find some of these patterns developing before you start trading. Trading with real money. Market point on the chart or the pattern where you would have, would have opened a trade and wait to see if your trade would have been profitable, successful. You shouldn't expect to just be able to watch these videos and become an expert patent trader. Going to take some time before you are able to spot out, to spot these patents out in open and trading, trade them successfully. But with the knowledge that you've acquired in this masterclass, I'm sure the process will be a lot simpler for you. Remember, as traders, it really doesn't matter where their pattern is bullish or bearish be biased. If there's a confirmed break to the upside, we open a long trade. If there's a confirmed break to the downside, we open a short-read. Keep well, stay profitable and thanks for watching.