Technical Analysis Day Trading /Swing Trading Strategies For Stocks Crypto Forex Commodities Options | Jon Trading | Skillshare

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Technical Analysis Day Trading /Swing Trading Strategies For Stocks Crypto Forex Commodities Options

teacher avatar Jon Trading, Technical Analysis Specialist

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Taught by industry leaders & working professionals
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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

16 Lessons (6h 46m)
    • 1. What My Course Offers

      1:39
    • 2. Lesson 1 Introduction - Common Terminology Used In Trading

      32:29
    • 3. Lesson 2 How To Trade Like a Casino - Risk, Reward and Probability

      25:55
    • 4. Lesson 3 What is Long, Shorting and Margin Trading

      22:33
    • 5. Lesson 4 Understanding the Orderbook Bids and Asks

      9:57
    • 6. Lesson 5 How to Setup Your Charts Using Trading View

      17:30
    • 7. Lesson 6 - Technical Indicators and How They Are Used

      30:56
    • 8. Lesson 7 - How to Read Charts, Understand Candlesticks and Analyze Price Action

      29:58
    • 9. Lesson 8 - Indepth Analysis of Supports, Resistance, Channels, Trendlines and My 1-1 Measured Move S

      38:51
    • 10. Lesson 9 Dollar Cost averaging to exit 80% of your Trades Breakeven Or In Profit

      21:21
    • 11. Lesson 10 - Why Trading Using Multiple Timeframes Leads To Greater Success.

      36:03
    • 12. Lesson 11- Common Patterns to Use Everyday Trading

      32:03
    • 13. Lesson 12 - Moving Averages and Why They Are Essential To Trading

      35:26
    • 14. Lesson 13 - The Relative Strength Indicator and Why It's So Good

      26:02
    • 15. Lesson 14 Part 1 Fibonacci Retracement

      25:50
    • 16. Lesson 14 Part 2 Fibonacci Extensions

      19:09
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About This Class

Inside this course you will learn Technical Analysis Day Trading and Swing Trading Strategies from Jonathan Palumbo who is a Technical Analysis Specialist.

You will gain an understanding of building a successful Trading strategy and why we need to trade like a casino and have the probabilities on our side. We will find the most probable patterns, break them down and understand exactly how to profit from them.

This course will go over multiple strategies to give you a diverse trading arsenal to find the best and most profitable trades for you while also finding and implementing your own strategies.

You will learn all the Common and Advanced Terminology behind the trading language, How to Trade Like a Casino, Long and shorting, understanding the orderbook, How to setup your charts using trading view, Technical indicators and how they are used, Reading charts and analyzing candlesticks, In-depth support, resistance and channels, Dollar cost averaging, How to trade multiple timeframes, how to trade the most common market patterns, Essential moving averages, Relative strength index (RSI), Fibonacci Retracements and Extensions.

Additionally you will get a large amount of insight from this course that will help you increase your level of trading success

Who is this course for:

New and Experience traders who are seeking Day Trading and Swing Trading Strategies that they can learn and implement today.

Meet Your Teacher

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Jon Trading

Technical Analysis Specialist

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Transcripts

1. What My Course Offers: Hi, my name is Jonathan Colombo. And I'll have a valuable question to ask you. Do you want to learn the art of making money from the stock, forex, cryptocurrency, options for commodity markets. Are you overwhelmed from the thousands of articles and confusing videos? When I initially started trading, I lost over $2 thousand, just learning the basics. And I wish that I had a course covered everything. I have since created strategies to limit my downside and maximize my upside to become a successful trader and investor making a handsome amount of money. This course is designed to give you everything you need from the basics of the market to more complex strategies that many people in the industry do not even know. And you will be able to implement all by yourself. The strategies I've focused on can be used in any market and on any timeframe. Because I've found that flexible strategy that can be used in all financial markets. Have you ever wondered why a stock is rising or falling and how to capitalize on its movements. Everything and more will be covered in the course. I'm giving you the ability to learn and earn good technical analysis. Start your journey today. 2. Lesson 1 Introduction - Common Terminology Used In Trading: Hello everyone and welcome to the trading crashed goals. My name is John, and thank you for purchasing this course. This course is going to teach you guys how to trade commodities for x cryptocurrency or the stock market, going to be able to trade all types of markets. The Gulf of these videos is to teach you how to be profitable traders on all timeframes, which indicators to use, how to use them, how to find points of fluids in the market so you can actually trade lucky casino and pull money out. This video is going to go over basic terminology. This is going to be the foundation video where I'm going to explain all the terminology that I'm going to use throughout the video. And it'll be a benchmark that you'll be able to refer to and build upon as we go. Let's get into it. I just like to get you guys all up to standard with all the points. So I'm going to be talking about, Let's get into it. So DEI training, what is day trading? Day trading is essentially getting in and out within one single day. So you never holding overnight once I get in today, I'm out within the same day. You some hot sometimes it can be within five, 10 minute trades can be one to two hours, but usually never longer than a couple of hours because again, it's day trading, a simple term. Next to swing trading. What is swing trading? Swing trading is trading for a longer period of time. So it might be one day plus could be couple of days, could even be awake. Or to some people define swing trading differently. But I would define string trading as holding your position them for more than one day, but also maybe less than a week or two, you just sort of trying to gain a five to 10 percent gain every single day and move on. The third I'd like to bring up is investing. So when investing, is it investing for the long term? How I like to think about as six months to a year plus your buying commodities, you're buying stocks and you're putting them away basically in your safe for a long, long taught me not usually looking at it daily and sort of trying to get in and out after 1, 2%. Usually leaving these stocks into get 5, 10 percent gain. Sometimes you leave them in for 10, 20, 30 years, especially if you're just accumulating, depends which account you use. I personally have multiple accounts. I have a day trading account where I have money in one pocket of brokerage account. Then I also have a swing trading account where I'm only in and out within a week or two. So I'm not usually in and out and looking at the market every five minutes. And I'll also have an investing fund where I'll put money away every couple of months. And that just continues to grow and that's more of like a retirement fund for me. So there's all different aspects. A bear market and what a bad market is and why we refer to as a bear market is how bears attack is actually they claw down with their paws now, but might be a bad representation of a very attack, but that's essentially where it comes from. Bezos type with their paws down. And that usually means, though, that means the price is going down to how we would define a bear market, would be price going down for a prolonged period of time. Although this chart shows the complete opposite, it actually shows a bull market. So a number four, which is a bull market. Bull market comes from, although it might be funny, books have horns and they usually attack upwards. And that means a boom OK, refers to the price. Slowly increasing. So as you can see here, process being at $500 in early 2021 and gaining 250% within a month and a half now in early February, That's what I would call a bull market, where moving up and quite quickly. So in exchange, what is an exchange? We've got a typing error. So what is an exchange? And exchange is somewhere that you actually trade stocks, forex, commodities, or cryptocurrencies. I'm actually going to show you a cryptocurrency brokerage. What an exchange, sir? Exactly the same broker or an exchange right here that offer you there in exchange, they offer you to buy, buy assets. So here I can buy Bitcoin by fear Malcolm by Codd, Donna Hoffman, BAD Republican by BNB. And it also lets me know the buy price, what people are buying for, what people are selling for the Tokyo market cap, and other points like that. So that's an exchange we can actually purchase assets. And as you scroll down, there's just hundreds of assets. There's potential is 1000 different assets to buy that just goes on and on and each one has a different project and each one is same with the stock. This is a cryptocurrency. Everyone is doing something else. Telecoms, someone is in gaming, someone is in mining. It's just, that's how it is. So that's an exchange we can actually purchase coins from, or you can purchase stocks or Forex from, saying something like E tare weight, but where you do still have brokerage for Forex, That's, that's an exchange, it's a burka. Same thing. The bid will actually do the bid and the Os together. So what the beat in the ask is, is, as you can see here, scroll the way up. We've got to buy and sell. So he has someone who's actually bidding. This is the process. Someone who is bidding to buy Bitcoin at 61,475. Right now, someone is selling Bitcoin for $61,028. As you can see, there's a difference in the bid and the US. Now we've got here, what we've actually got is the spread. The spread is the difference between these two. Basically look at this, it's roughly $450 is basically the spread. So you could say the spread between just if you would instantly to buy Bitcoin and instantly So bicoid you to instantly lose 400.450, although you'd have to spend six to 100, but that's what the spread is. So not only do you pay an exchange fee, sometimes you pay 0.9% to trade. You also tray pay a spread there, which is in every, every exchange. Forex is very, very minimal. With with cryptocurrency, it's actually not as big as this are to use another exchange to trade. But it can be hazy. It's got a little bit Ta-dah, So margin. Now what marginalia is? Usually you'd use it. What I uses actually have multiple accounts. So what I like to do is to, let's just say all deposit $10 thousand into one account. But I like to do is to margin tried that up to 100000, so I don't need to have a whole 100 thousand on an exchange. Now what that is, that is margin. So I'm putting an initial $10 thousand in equity. Does my equity. Then I'm putting $90 thousand of margin to create my $100 thousand. So if you'd like me to fry that up, so I have $10,000.10 thousand dollars starting. And the Broca lens me 90000. Those. This is my module right here. $90 thousand is my margin and actually pay a small interest rate on that. And it can sometimes be only a couple of doulas. So that's usually why I only put a small amount of equity into each burger because it lets me keep a portion into cryptocurrency, a portion into forex if portion into stalks, Bush and into commodities. So I don't have to mix in accounts and over seaweed some exchange, especially the really good cryptocurrency exchanges. That's when you get a really good spread and you can't get great spreads and other accounts are having, being able to move money around and having all your money mixed up in one place. Also having the flexibility to not have all your dollar locked up with one place. Just said I went down tomorrow, something like 2008 even signed that happened not long ago, where companies just go boss, it's just essentially as safe or safer for me to do that at R&D, spend 50, ten adults a day extra just to pay the interest rate. So that's homogeneous right there. An order. What is an order? Let's actually go in here. Go into Bitcoin, going into markets, view the BTC market right now. So if we scroll down here, we can see urban buy orders, open sell orders brought this. So actually what we're going over is an order. So as you can see right now, someone is trying to buy $3,660 worth of Bitcoin at $61,013. Right now there's also somebody selling 3,696 bullets with a Bitcoin at $61,608. So that someone basically buying 3,600 at 61,600 is also the same, basically the same amount trying to be boy, at $61,600 difference. And these are the orders in the market that actually tried to be fulfilled. So when you place an order in the bucket, your order would then come up here in the open borders if you're buying I've been so orders if you're shooting. Okay. So what is a lung and what is a short? We'll go over that right now. So what is a long? Long is you expect the price to go up. That is what along is. When you're going long, you're expecting, you're buying here. You're buying in this area here. And you're expecting price to go up. And you're selling out here within two days and you're making 30%. That is what a long as you're hoping to price increases. Now the complete opposite, a short, what a short years is actually you hope the price decreases and you make money when the price decreases. So in many exchanges, not with stocks, depends on the exchange that you use and how much leverage and many other things if they using derivatives. And that's a little bit more sketchy, but that's a whole another video. Shorts, uh, when you want to go, when the price goes down. When you're aiming, when you think the process is going to go down, you take a short, you're able to bet on the price decreasing. So if always to think in this region here, the process is going to decrease. I could take a short all the way down to here. And I would make money, would actually lose money if the price went up. Some, some people don't actually know this and that it is uncommon with a lot of stocks and think and brokers places why cryptocurrency and Forex is actually quite common because of the movements. You can actually play both sides. So this is a short, I would actually be drawn to short in this area. And we tried to get out down here for 10, 12 percent profit in a day for the shoulders, and you'd actually profit on the downside, a stop-loss. Now what a stop-loss is to actually scroll in him. So SAS will The Press here. If it rejected off the 220 EMA, which is actually a 1 alpha 20 EMA. We've got a rejection of my EMA, which is actually a quite high probability bet that the price is going to go up, not a 100 percent, but the probability is there and it's greater than 50 percent. Say I bought in this area here and I thought the process was going to go up, which it did. If I was to buy exactly in this region here. A need to find an area where I need to say, Okay, I'm incorrect on made the wrong decision and I must exit out of my trade. That is what a stop-loss is. If I bought in this area here, I would say my stop-loss is right here. Now why is that? Before I enter a trade, I need to have an entry point and exit point and an invalidation point. These three, a very key entry point where I entered the trade, that particular five-minute, one ala, 15 minute candidate that I entered the trade. Once I have that entry, once I have the entry triggered, and before I enter a need to figure out an exit, a racist high, a race and high we came upon off, instantly whipped up down, taken down instantly. And then we spent 3456789 hours below, better off to get out right there at that race and hot. That's my exit point. My invalidation point is the stop-loss mind validation point as well. I have to say I'm incorrect on the trade. I have to type my loss and we'll find another thought. We'll fund another entry will find another position. It's not the end of the world. This is not with fighting battles were not fighting the end war. Each trade is a battle. You don't need to take it as a war if you take a big hit or you take an invalidation. Some of these, some of these strategies have 40, 50, 60, some have 70 to 80 percent, but not a lot of them do. So you have to be willing to take the hit. You just got to play the probability and accept. Let's move on. Okay. What is a rally? Rally is similar to BU Bamaga. So Rally, what I would call a valley is, this is a rally of rally is a movement. A fairly quick movement to one side. This is what I would call the rallies. This what are called a long rally within two days room if 30 percent quite a quick movement, especially for a theorem that's usually not always the movement. Very quick, very good, especially with a high liquidity, high leveraged, high-margin market. That is a rally. And also cool this short-term downwards rally. In one day, we move to 15 percent, which is quite a quick move. When today, sorry, we moved 15%. Again, quite curt move. You don't always get that with assets if you buy enough money. Thus, the weekly profit right there. So that's what we call a rally. Volume. Actually, I have taken the volume indicator of 0, show you right now. Folium. Don't always use it. Sometimes when I'm chatting. It takes up some room and I'll take them. There we go. Volume. So the volume here, what each bar at the bottom here indicates, is indicates the trading volume for each Bahia. So if we were to scroll in and take this individual green Bahia, can you see that one? To take that individually ball and come down here. We can actually see is the volume, the relative volume. So compared to all these previous pause, we actually haven't had that much volume in, in, over, Let's count them. 36 boss, 37 bonds and each bar is one Alice, 37 hours. So the most volume off the 37 hours at the lowest point that it's been in a very long time, could signify by especially with a bouba ending on its high. Quite a big rejection off of my white line, which is my 320 EMA. And his bowl by ending on its high, which in later videos You Bu understand is a very strong signal in this multiple confluence points is also wedged it. We'll get to that later. To say prices going up. We've got a rejection of the 221 L 20 AMA who've got a bouba ending on its side. We've got the greatest volume in 37 BAD 37 hours. To make that as quite a strong indication that we're actually going to increase. Impressive, we're going higher. So we'll get to that later and hopefully you guys will understand everything that I said by the end of this entire course. But I'm just lady trying to unravel everything that on, on, on D guys and eventually MAN on, understand every single thing today. But as it rolls out you on the scent, that's why I want to get well these definitions down because I think it can get very confusing by video 4, 5, 6, 7, you think? And what's this fossa? What am I saying? Again, it is great to spend a lot of time on Investopedia just typing any way that I would I'm saying that I haven't covered or you don't understand, but here where I can go through it visually for you guys, I think that is that is the best way. I'm actually just going to get rid of the volume idea just because it takes up a lot of them room. Yeah. But that's what it is. Volume we've got twice. Okay? Next one, volume volatility. Now what volatility is, is quick price movements. Is bamboo hat. Volatility is a measure of how quickly a process moving. So if we said there's lower volatility market, it means the price is basically going sideways. It's not much up, there is not much down. Qia. Let's, let's actually talk about it here. Brought here between these points here. That's a high volatility market. When moving very quickly in a direction, we go a little bit sideways. Again, we move in a direction that's a high volatility market. Volatility referring to how much when moving, we're moving in a 49% in eight days. Good volatility market. Now, in comparison, let's talk about this market here. We had 13 days and we basically went in a 15 percent trading range. That to me means that within that 15 days it was a fairly low volatility market, which means the trading was within a small band and that school band didn't offer a lot of high movements fluctuations. That's a low volatility market in comparison to a high volatility market, women moving quite quickly. Volatility, that is volatility up ten and downtrend, very similar to a rally. An uptrend is when we're moving uptrend, we're going with the trend. The trend is up, that is an uptrend. And especially I'll trend refers also to a large prospering from so within 34 days are gone 35 percent. That's an uptrend. We going up. Downtrend, the complete opposite. Well, that wouldn't necessarily refer this to a downtrend. We could call it a short-term downturn or wouldn't really refer to it as just a downtrend by itself just because of how short it is. But today's merv 13 percent, although that's the reason I'm not calling it a food down trans because we quickly move backup, but it's a short-term downturn where we actually move down in the trend in the press. Consolidation. Actually very similar to low volatility. Consolidation. Is this right here. We're basically just going sideways for a long time. We come up, we come down, we break a little bit below, but we come strip. I get the band. We break up like a little bit behind, a little bit below or above, then we need to come back, come to the middle. Couldn't get below, couldn't get above, couldn't get below. That's what we call a consolidation with just sorta going sideways. We've had a large movement quickly. And now we're just going sort of sideways. This is not what I would call a consolidation. We are moving very quickly in a direction that's an uptrend, sideways movement, not really going up, not really going down. That's a consolidation. Sideways, sideways is exactly the same as solid data consolidation. Just another term for it I'm just using I'm going to use different times, basically the same meaning. So just wanted to cover just sideways movement. We're not really going much up in about up and above of this trading band. So that's what I just go sideways, consolidation, sideways and a sell off. So a Salafi is a down downwards movement. So selling off, selling and you're selling something, the press is going down, sell-off. It's just an enjoyed it, but I just want to make sure a covered or if you guys again. This is what I would call a sell-off 15 percent. That's a perfect self. Don't even a short time. So love just to sell a 15 percent in today's quickly sold off. Perfect. Okay guys, so he found an example of support and resistance. I'm actually going to draw it out for you just to make sure you understand. Let's stop. That's what I call a resistance. This is what I call a support. Support resistance. Reason I say this and I'll quickly draw it out, draw it out for you quickly. Reason I call this as support is the price is not going to be able to pass much through this level. And resistance is the price is not able to pass much to this level. So let's say we're trading the trading coming up, we pass a resistance, we trade, we trade the trade, come back down 10, able to beat it, come back, come back. This is the support, support, support. Not able to beat it. Come back, come back, come back. Resistance might beat up little bit into resistance not we're not able to beta. We come down and we come down, we come down. This is what we call resistance. This is what we call a support. Let's actually show you this in real time. Now how can I delete all of that server that pico to do it like this. Okay, so here is a support and a resistance. Again, doesn't have to be perfect. This line doesn't have to perfectly hit, this line doesn't have to perfectly hit, but support and resistance. So I'm going to draw this out, resistance, support. Now I'm going to explain it again to you guys how this works. Price came out. This point became a resistance. Okay, down, came down, came down, became here, across with these little CIA, weren't able to bind, able to get to much lower. Okay. Came out, we came up. It came up. We thought we were gonna get RU while not we came to hear very much similar point from over here. And we get some bad boss not, not looking good. We get a rejection not coming down, coming down, coming down. Where do we come down to? Come down to this point across here? Again, doesn't have to be perfect, does not have to be perfect. But as you can see, came down to this level, we rejected it instantly up, up, up, came across to this level, doesn't have to be perfect. When able to pass through instantly, down, down, down. Didn't have to be perfect, but we came across to this level, started to come up, up, up, up. And now that's a break of resistance. We actually broke resistance. So we, we came off support, support, support resistance, resistance, resistance. And eventually we actually Burke resistance. Lot of time. Once support resistance get broken, it becomes, so once a resistance gets broken, it becomes a poet. Once a support gets broken, becomes a resistance. As let's scroll over and see resistance, resistance. Well, just absolutely perfect. Kinda gross came across straight backup. Perfect. That's a fairly good explanation. Support and resistance Vegas triangle. I'm going actually draw this out for you and then also found an example, Vegas. Let's start with. So we've got three triangles, ascending, descending, and just a normal symmetrical triangle. Let's start with this symmetrical triangle. Symmetrical triangle as understood, cement screw. That is a symmetrical triangle. Press will trade between these bands right here, and we'll come through the apex point. Apex. Once we reached the apex point, that's usually what a breakout happens. That's usually where we start to get a move quickly to the upside, will quickly to the downside. I might actually move across here to this black area so I can draw it all for you. And that's the apex. Okay? So that's symmetric, symmetric neutron. Now I'll draw an ascending and also draw a decent mic. An ascending drug. As sounds presses a ascending price trades between these bands coming up and back down, come up, get a support, come up, resistance, highest support. And we come here to the apex point. Are the breakout break down very quickly. There's always at these triangles or as a quick breakout, quick breakdown. Now, descending triangle, descending triangle, opposite, going down. Press traits between these levels. Down. Loa loa, loa, loa, loa, loa loa. Comes to the apex. Quick breakout in either direction. Descending triangle, ascending triangle, symmetrical triangle, older important. We'll have very, very important. But I will point out that 80 percent of the time, symmetrical triangle, 80 percent of the time. So as much, these are important. That's what they are. Okay? So that's triangles. Okay, Next, I would like to go over a wedge. Now what a wedges, as he can think, price wedging together. Now, we've actually got a wedge right here. Now what a wedges is a minimum of three bushes, 12, 3. And now we don't have to count all these videos. We're calling the counting the highest, 1, 2, 3. And you can also draw it from here. It doesn't have to be perfect because as you can see, there's much, it doesn't incorporate these prices. You bring it from the lower, from the first, and you can start to draw a wedge. Now what a wedge usually means is going to be price movement down, calm down and probably re-test. 220 EMA, very, very common. So as you can see, a wedge, 123, you'll see me refer to that very, very, very often. Sometimes it can be for sometimes it can be five in the future, but it often looks like this where it's 1, 2, 3 pushes usual after that, we actually get a reversal. You say that in the future, but I just want to let you know a channel, horizontal, ascending, descending channels. Let's go over that right now. Let's actually draw it over here. In the bucket channel. What's a horizontal channel? Horizontal, gentle, simple. Going horizontal. Price is trading between this area horizontally. What is a descending channel? Simple. Press going down, staying within the channel. Price going down, but staying within a rough channel. What is a ascending? Ascending channel? Is the complete opposite. Price going up. Staying within a type end price trading. Initially going up, ascending, descending, horizontal triangle channel. Sorry. Now let's actually show you, show you this in real time. Could actually count this as an ascending, ascending channel. We could keep going like this. Price could bounce here and continue up, continue up, continual. Justin, just a potential, that is a ascending channel. Another Ascending General could call this a horizontal channel. Descending channel. Press staying between impress points. Not breaking, going down, coming back, going down, coming back, going down, coming back. That is what a descending channel, horizontal channel. Ascending channel. There are three types of channels that I'd like to go over for you guys. Now, one-to-one measured move, which is actually very common, sort of a scalable this other way. Now one-to-one measured mirror, what I like to call a one-to-one measured move is I find a big candle closing on its high. Big can-do full 0.3% in one L, closing on its side. Now I take a measurement from the bottom of the candle body to the top of the candle, buddy. That's a measurement from the bottom of the top of the body to the bottom of the body, not counting these weeks. And I put an extension to the top of its body. That is what I call a one-to-one measured move. And it's very common in the strategy that I use, because big buzz ending on their higher or big buzz ending on their low signify high probability bet in the direction of its trend. This was a high probability bet. You take the trade anywhere between here and you write it up for 1% profit, for a 4% profit within a day, which is great. Especially if you're trading a $100,000.4,000 volts, very large profit. That is a one-to-one measured move. And I use this very, very, very often in all of my training. Loss phone. The light to go over today for today is Fibonacci retrace Min. Now the Fibonacci retrenchment is actually this tool here. The way you can find it is coming over 2 on trading view and funding this little pitchfork coming down and going Fibonacci retracing and clicking on Fibonacci for tracing, you start at a low and you extend to a high. And what these points give you is a percentage basis of all of the movements. So what this line represents is a 38, 0.2% retrace moment from this load to this or higher. So coming down that's 32 percent, 38.2%, this green line is 50 percent. So between this top and this bottom, that is exactly 50 percent. And this is actually quite a common area to start to begin to bind to a trend because when a retransmit happens, very often it comes down to the 50 percent level trend result, resumption continuous. So that's a high probability bet. Well, so 61.8%, which is the golden, golden pocket, which is referred to as the golden pocket, which if you do some research into Fibonacci and I will go over this in a later video. You will see all of that. Now that's all the terminology that I'm going to be using in my course. Anything that you do here and you don't understand. You can refer to this video. If not, Investopedia or please ask in the comments, I'll be happy to help boys, happy to help with any questions, any comments? Thank you guys so much for watching this course. I hope you got a great understanding of what's to come in the course. Please take the time to understand all of these words and everything that I'm trying to say because the next videos is just going to continue to get hotter and hotter. And I want you guys to really understand and really progress. Thank you guys very much for tuning in and Calloway for the next episode. 3. Lesson 2 How To Trade Like a Casino - Risk, Reward and Probability: Hello everyone and welcome to the treading Crash Course. This is Episode 2 of the trading credit goes where we're going to go over trading like a casino. Now what is trading lucky casino? Think about a casino. They make a small percent on a large amount of money. If you think about the game of roulette, now, you can bet on red or you can bet on black. And you would assume that it's a 5050 in this equation, but it's actually not. If you look on the roulette board, they have to green markers as 0 and a double 0, where either red or black, they both lose their money. And that's how the casino makes their money. If you would have bet on either red or black, you have close it with 48% chance of actually winning. Now that's where the casino makes money in the long run, they have a 52 percent chance of making money. And every time you bet 10.50.100, they have an unlimited bank of many hundreds of millions, if not billions of dollars. And they can keep taking you bet because in the long run, they boom, make walk out with more money than they had because it's mathematical equations. Now the goal and turn this into your trading and actually use this and utilize it in your trading so that you're taking profitable trades where the probabilities are in your favor and the strategies that are using are going to work for you and not against you. So let's get into it. Trading were not able to win every single tray. That's how we have to understand. We aren't able to win every single trade. You might have would have a 60, 70, sometimes 75, close to 80 percent probability, but there's never 100% chance of winning. And that's what trading is. We need to take our trades when there's a probability, probabilistic chance that we're going to make money. And over time, or over a 100, over 1000 and over 10 thousand trades, that's how we're going to make money. So the goal here is to take trades that are high probability. High probability means, in my opinion, is for a bull bar to be opening on its slow, closing on its high, as you can see here. As you can see here. As you can see here, very close to many bugs. Another one here, another one here, even some coming up right now as live trading is coming through. And a high probability bet on the short side is boss opening on their eye and closing on their low with his basically no Wix like this is absolutely know we care. High percentage chance that we're going to go down. That's what trading lucky casino means. Actually taking bets in your favor that overtime have a 60, 70, 80 percent chance of winning. Never a 100 percent. But that's how we make money because over time are able to win 45 bits and then lose one or two. And over time, That's for the money lies. The second part of here is managing our fears, our emotions, our wins and losses. Even during a trained and what do I mean by that? Let's just say we're playing a $50 thousand position. $50 thousand position means that every 1% move is a 500-dollar move, which can accumulate to a fair bit if we get a 2% move. That is a weekly goal for many people. In many, many countries. That is an average wage. Let's go along with this. So managing your trade, let's just say, Hey, I found a hypermobility trend. Let's start over here. I thought what I thought was the hypermobility trade. We go to Bob, supporting off of this law. Opening close to its low, although there's a wig closing on its high. Let's just say this is the bar that I got into. A boat in right here, right at the top. How am I going to manage my emotions during this trait? And how many people manage their emotions during this trait? Many people usually manage them incorrectly. How did they manage this triad? Starting off the first five-minute bar, don't be in their favor. It would be rejecting of the 20 AMA. We get a second bond that's also rejecting, although there's a wick which does signify that it's not a very large amount of beer presence there. And bulls have started to buy that up is presence of bed. And if I entered right at the top here, I wouldn't be happy with the next two bars. Next we see two more bars. We start to get a little bit excited. We go okay. And she wasn't perfect. But now with starting, we've got support. We've supported. And now it coming up, we're going to come up, we're going to test this white line. We're going to test it 2289, which is actually the 120 EMA. We come up, we getting excited. Again, we reject of the 20th may reject. We reject we reject of three bars within 15 minutes from her entry. Already down nearly 1.51%, 0.5% would be 750 US dollars, which would be close to 1, 0, 0, 0, 0 stallion doulas. Very expensive. That could be a weekly wage for many, many people. And within 15, 20, 25 minutes, you've lost that money. Needs to be very careful. And this is where the FEA can get in. If you're overtraining, you should be trading between one to 3% of your total account size. Any more than that can become too risky. And actually your, your very printer at liquidation and just blowing up your account in general, you're not going to last if that's the type of trading you go into do between 1, 3% is the maximum risk size you need to do long-term training if you want to trade lucky casino, if you actually want to apply all of these strategies, when you accumulate all of these small strategies, they actually become very powerful. And this is what makes basic traders into it. Very, very advanced trait is being able to see all of the strategies all at once and actually applying them in real time and being able to move from there. So let's also remove them. Excuse me. We have three main bus coming up to test the EMA. Start to get a little bit more excited. We're going OK. And troubles and perfect. She wasn't perfect. Let's move on from here. Can we get a move up if we start to get excited, Buddha's closing and opening on their lawyer. Closing on the HIV are gone. Yes. Finally. Finally. Okay. And she wasn't perfect. Let's go get back to the 20 him a rejection. Rejection. Rejection. If we stopped him. Ok. Now, all of a sudden it's been an hour into a trade of NADH down 2% of $1000 US dollars. This, this in here is going to get very emotional. By the time you get down here, you just go into second that out once you see these two bars and you make another No, I'm not. Just going to click market x and get me out, Get me out, Get me out of $1000.10 hundred, five hundred dollars down. Soon as you do that, what happens? The market realizes lot of people exiting here, that this was a high liquidity play. Just trying to retest this area to make sure that any people that had this stop, sir, We're going to get liquidated. Straight backup. We move back to our entry point. Have a little rejection down, and just keep moving. Keep moving high, keep moving higher. And if he exited any point down here, you just absolutely kicking yourself, kicking us off, kicking yourself. And you just said not decimal point. I'm going to show him, gonna show it here. I'm going to show him, and that's where your emotions play too much into your play. That's why the next spot where risk reward probability is going to teach you guys exactly how to manage your emotions During the train because you don't have to. You need to play like a robot. How does the casino play it all ties in together. A casino plays like a robot. And they're not making bets based on, based on random decisions. They always have the exact same decision to make, an X-Y exact same percentage outcome. And they just played the myths and just plugging 3, 4, 5 percent and over time, when hundreds and millions of dollars, if not hundreds of billions of dollars come through the arms. That's how they accumulate their money. They just take a small skimming off the top, but over a large, large amount of money, and that's also alcohol here. And all seen winds, winds can get very, very terrifying. Let's just say we started down here. We see one bear B2, good bare bots. We see a baby opening on its high, closing on a slow, we get excited. We didn't get the perfect entry, but we stopped entity in here. We've actually gone for a short in here. Started to get excited. We get in right here. Perfect. We continue down a little bit more. Awesome Looking good, bad, bad, bad. What do we get? Perfect, we get a perfect continuation. Awesome yet 3% in our direction, instantly starts Evan's back 1.5%, we're going yep. Okay, That's awesome with about 500, $750 feeling good. I'm feeling great. Lodge link down would go into Continue. We're going to continue. What happens? We get a boulder versa, dodgy bot inside bar. We get to another bouba with a quick closing on its high. Rosie got another blue bar closing near its low, closing very near its high, buh bye, buh bye, buh bye. We get a series of 1, 2, 3, 4, 5, 6 pool balls closing nearly all of them closing on their high, five of them closing above the 50 percent point. Starting to get a little bit more Latin. This isn't good. Hopefully we come back, we test is 20 EMA because it's been a long time since we tested it. And we'll come for another leg down and move will aim for about this area for a sale. I point would be perfect. We'll make easy amount of money, easy money. That's our initial thought. When we don't have a plan. We foresee a bebop perfectly off the 29th, we go Perfect. Closing near its high opening. Nearest Thai closing, nearest slow, this bulk closing, opening near its opening and closing basically perfectly on its low sonic. Get excited, we've gone, yes, yes, yes. Then we see huge bit bouba starting outside, completely eating up the spot, which is a bullish on. Start to get some continuation in a direction we're going yes, we're going to come down. We're going to keep that area down here and we're going to sell out. We're going to sell at right down here. And we start to see buh buh buh buh buh. And we just going, wow, where do we get out? Where do we get on NADH, it's going to turn around not sooner and we go, bad boss baby was bare pass or heat rejection, ba, ba, ba bas nuts, never rejecting or not. It's coming down boo, boo ba, ba, opening on his high closing and it's low. It's not happening. And that's the unfortunate part. Do you think what's going to happen? You need to have a plan. And that's where this last part really comes into play. And that is risk, reward and probability. The three main parts of any trade. Risk. The first part is risk. What is risk? Let's say I entered along on this bond right here. And to the long on this bar right here. And we entered here. That exact price point. What a stop or what risk would be, would be, say, after we get below this wiki here, I'm exiting. I'm going to put my stop-loss in which you remember from the last video, which means I'm just going to get out of my position. That's my risk. So when I enter here for our enter the trade, I already know exactly what my risk would be. My risk would be from here down, would be exactly 2%. And that's really my risk tolerance. Somewhere between 1, 2% is my maximum risk tolerance. And what I'm willing to risk on any trade. That would be my risk. Let's say, what would be my reward? Let's say I'm aiming for this 20 EMA up here. Anytime the price hits it and goes through perks for it. That's my exit point. Exit on this ball here. First timed hit the 20 EMA. And that would be at this price right here. And that's my action. That would be my reward, that would be for my entry point. Let's mount these out for you guys. Entry. So it's going to say x if it is an x, if it is more so stop-loss. And my exit. Also the same as risk. Reward. Now the last part is very hot. Here. We're able to pick out inch point. Yes, I'm going to enter right here. The second we're able to pick is yes, I'm going to put my stop right down here. That's my invalidation level. That's where I'm going to say, okay, I'm wrong account when every trade, but once it reaches this level, I'm incorrect. Fair enough. That's what you need to have an every single trade a stop-loss. He can never go without it. Because without it, you let these emotions play in where you think, Oh yeah, it's going to come back, It's going to come back, It's going to come back. And all of a sudden you just down thousands of dollars if not liquidated, which means your account is just gone, absolutely wiped out and you stop back at 0. Excuse me. So we have a stop-loss and we have an exit. So from the entry will have a 2% risk to 0.2% risk. And reward is 2.7. Perfect that, that leads into a one to 0.11% to 1% risk. We're risking 2.2%. That basically when 2.2%, there's a one to one ratio where the equal on both sides, 2.3 to 2.2, very close with the last part of this equation is probability which is actually the hottest. And you can never know within every trade, every single trade you can always pick your entry, can always pick a stop-loss and you can always pick your exit. We can never pick the probability that is always up to the market and that is always distinguished by the boss to the left. High probability if the boss to the left leading to a big downfall. And then you start to get more doubtful buzz. High probability leading from the left that we're going to continue down. That is very, very hard. And as it lays from before, That's why I like to pick pause that. So if I'm going short, opening on its high, closing on its low with absolutely no weeks like this on above and below, which means as soon as they opened, there was instant pressure down in the bomb was never able to creep up, which is a very high signal of short strength. And as you can see, as soon as that bar closed, we went down 5, 5% percent on $50 thousand is $2500, close to $3.5 thousand. Australian very good trade if you're able to do that. And that trade would have been able to be accomplished within ten minutes, ten-minute trade, and you're able to make $2.5 thousand on actually a quite a small trading size. $50 thousand for a lot of people is very, very on the small side for me, can be on the more medium side. Some people that training many, many millions of dollars. So that percentage can quickly, quickly add up. And as I'm saying, for the long side, I'm looking for bars opening on their low, closing on their ally. And as you can see, that just creep op, brew time creeps up, comes down a little bit. And now in brew time we're up 3.5% to assume this single bar right here that came off the 20 EMA came up open on its low clothesline. It's high and it's just a higher probability play. And that's what I'm looking for. Again, it's never 100%, but I'm looking for plays that a higher than 50 percent. Again, I'm trying to trade lucky casino. It always comes back to trading lucky cosine. Are they always playing more than 50 percent when someone bits on One on roulette, it's never 5050. It's closer to 48 or 47% in their favor, then it is 50 because the casino has those zeros and double zeros and that's how they collect their money and that's how we need to play. We never want to have a 50 percent chance. Want to have at least a little bit higher we want to have. So we can increase the money that we're going to make over time or over a hundred, ten hundred trades, 10 thousand trades. The last point I want to bring up to you guys is one-to-one, 2, 2, 2, 1 and 3, 2, 1. Brisk through rewards. You're actually going to go over that now let me just quickly delete these for you guys. Now what this actually mean? This is a long position. Oops. This is long position right here. And as you can see, it says ratio of one, which means the sharp, which means my stop-loss to my target is a one-to-one. Some risking, one-to-one write down, which lines up with our first one-to-one. So let's say I took a trade right here, perfectly right here. So I entered on this bar here. Rather, a one-to-one would mean I put my stop-loss right at this low. So I have a 2% risk and I'll put my exit toga brought up here as a 2% rewards. I have 2% on the risk, 2% on the reward, which equals of one-to-one on a ratio scale. Now, whenever I'm doing a one-to-one risk reward trade, a one to look for higher probability treads. So right here, let's just say I'm taking this trade here. Where would my stop-loss be? My stop-loss? Who be but below our loss previous swing high, which would actually be right here. Fond buying it this point here, my stop-loss would be a lawyer right here. Now, if my entry is right on the tip of this bar, Let's have both riders top of it. My risk sorry about that. My risk would be to the bottom of this bar, would be 1.281%.1 ratio would be right here, one-to-one. Some risk in 1.28% to win a target of 1.20%. And I would set my stop-loss here. And it would sit my reward up here. And I would let the trade play out. The reason I'd let the trade play out and hit my stop or my target is because I'm hitting a high probability play right here and playing on a bother opens on its low, closes on its higher, higher probability of reach its target. That's why we can play a one-to-one, One-to-one risk reward probability. If it's a one-to-one, you want to try and have Pi probabilistic chance. Again, it can never be a 100 percent, but bows like this are open on their lower clause in their high will bear bars are open on their high-end, close on their lawyer actually give you a much higher percentage chance of winning, especially in your favor. And you can use the one-to-ones. Now when you actually have a less of a probabilistic trade, maybe you're entering on this ball Hill, although it's not perfect, you're getting a support from here. And you thinking yet we break a little bit above the 20 EMA, that might be my entry point. A two-to-one would actually be. Let me let me show you guys here. Let's bring this down here. A two-to-one can be shown right there. Well that's 2.2 to one, nearly perfect. So what that means is I'm risking by say, 1% when 2%. So if putting some risking 1% to 2%, say C, you can see it's a two to one ratio of my reward is two, and my risk is one. That's a two to one ratio. These are the top betrays you actually want to look for more. So let's just say we're able to take a two to one on this ball, which is a high probability by again rejecting off the two supporting of the 220 AMA, which is a high probability play. Let's just say we entered again right at the top to enter the top, which is this line here. I'm going to put it right there. Little bit higher. Although actually stop would actually be below here. So let's put our stock where we said it would be before. And that's actually raise this a little bit higher to a 2, 2, 1. Here we go. Rather two to one ratio. It's run out of risking 1.291%, 0.3%, excuse me, to win 2.6%. As you can see, we've got a two to one measure here. Every single time, every single time we lose one. And we went to to start a 5050 right here. If you were to lose one time and then when one time. Let's try this out here. So say you would have when, once, when one, lose one, how would that work? Gas if you've got a two to one ratio, how would that workout? So when you, when one, when one equals two, and when you lose equals one, therefore, lose one when one equals two for a win, minus minus1 for loss equals 1, 1, 1, reward up. That's what you're out right now. When you're able to play a two to one to two, I'm risks or wool. We were able to play these. The more you're able to win. And it, even if your eye, if you lose a couple of times, your risk to reward is in your favor. And it gives you the opportunity to have a little bit more leniency. He didn't have one-to-one if you will lose one. And then when you're even, so you have to be able to win two or three before you lose one. Here, you're able to win one and lose one, and you're still up over the long run, even here, if you have a 50, 50 probability play, because you have a two to one ratio, you still work out in front. Let's move on to 33 to one. Now three-to-one, exactly the same. Let's actually do it on the short side just to give you guys example of the short side. Now the stop is going to be above because we're going short. Our goal is to make money on downside. As you can see, green means profit, red means loss. Let's move this year to 0.5%. Let's say we're risking a very small amount, 0.5% here, 3, 2, 1. We'd be winning 1.5%. As you can see here, our risk to reward ratio is three. So now anytime I'm risking 0.5%, I'm going to be 1.5%. So again, now if I had a fifty-fifty percent probability and I was to win one. When one, lose one. That means when a win, win equals 3, lose equals 1. That's 3 minus 1 equals 2. Perfect. So I have two on the end of the day, if I was to go on a 5050 ratio with a three-to-one. So three on the prefer one or the loss, these profits or even better. Let's just say it was able to find that just over here. I sowed at the bottom of this Bahia and actually raise my reward to risk to LPS. I put my slope up here and I was to sell out if Prize reached above this. Let's put a three to one range through ratio all the way down here. Perfect. And my target would have been here. I entered on this, on this red ball right here, went up a little bit. Bam, hit my target. I've got a three to one ratio. These are really, really good when you know a 100 percent on the probability. And the probability can be maybe even 40 percent. Because even 50 percent because in the long run, you win three and you lose one. And in the long run you actually be like a casino. You'll be gaining small profits, Non-profits. And it doesn't mean you have to win every single time. Thanks everyone for tuning into this lesson. I hope you found trading lucky casino very valuable way we can use probabilities in our favor to actually take profitable trades. And soon we'll be learning about indicators and Confluence levels to actually take these trades and use the probabilities and our advantages to our favor and make money in the market. Thank you. 4. Lesson 3 What is Long, Shorting and Margin Trading: Hello everyone, and thank you for joining into Lesson 3 of the trading Crash Course. This lesson we're going to go over lungs. And what is the expectation for actually going to go over a strategy which is called dollar cost averaging. Also going to cover liquidation and what liquidation actually means. Then going to go over to shorts, talk about the expectation and what it actually means to short and how borrowing shares or borrowing the asset actually comes into play. The last point I'm going to go over is margin trading. And how a lot of brokers offer between one to 100 times margin trading or leverage. Now let's get into it. I just want to make sure I cover all these points for you because I'm going to add the star. When I was a first grader, It was very hard to come across a bundle of all these trading knowledge altogether. It was all scattered across the place. And this is why I've done this for you guys to make it very, very easy. Let's get into it. Let's get into lungs. What's the expectation? The expectation of a long is the market will rise when I buy in these areas down here, my expectation is that the price is going to increase. And in this instance, the price did increase. Now, dollar cost averaging, which is big, and I use it quite a lot, especially my swing trades. When I'm swing trading. What dollar cost averaging actually means is once I've see down here, promises made a low. Now I see there's been a support processes unable to break this low. And we've got a support. We bought in these candles right here. We started to see some green voice when we're longing want to buy, when the candle is closing on, it's high and it's showing strength of big bodied can-do closing on. It's close to its higher above it's 50 percent point. Also followed by another candle closing basically on its higher, fairly nice scandal, we get our first entry right here, Entry 1. Now, what dollar cost averaging would mean is if you're actually swing trading, you see the price increase. C come down and we get another level of support we've supported with supported perfect. Second entry would actually be entering in here with the average ion tree. And we see an increase to average our entry, big bull bar closing on its high. A lot of the time it's actually done on the downside, when you expect the price to be increasing, you don't know exactly when the price is going to go up. But you know that you have, you have a good probability that the price is going to go up. What dollar cost averaging in this sense would be, is every time the price makes a new low, average in a little bit more. Next time makes a new low. Gentle little bit more. Next time the price makes a little low, low, average in a little bit more, little bit more. And eventually we get this low. Now, once we start to scale up, from hand, we scale up, we scale up, scale up, we scale up. We can get out here on three entries and one entry to an entry, three at a profit. And on the fourth entry we lose and we lose a small amount, very small amount, percentage up to maximum of 0.2 to maybe 0.5% depending on way exited the trade. So as you can see, dollar cost averaging in this sense is a very powerful tool as you actually average your entry, you buy. Say you have to target to entry, it's going to be $40 thousand entry. You bought $10 thousand each and 2 in any exit out, completely out of all three. And on average, you've made money. You don't have to make money on every trade, as I've explained to you from the loss episode, the goal is to make money on average and on a higher percentage chance than 50 percent. And you'll be making money. Even as I've shown you in the last episode, you can have a less, a reward to risk. You can be less than a 50 percent chance of winning. But if you have a three-to-one risk to reward and the natively in 100 to one trade in order to cancel out many, many of the losses, as I've explained. Okay, That's good explanation of dollar cost averaging. And that's what we're going to come across that a lot, especially as we get deeper into the course. But I just wanted to explain to you what I'm actually saying when I'm Simon dollar cost averaging into this trade, especially when I'm going on to the lung. And you can also do it on the short dollar cost averaging does the same. You get a high OPIA, get another rejection. Comin up, coming up. You think the price is gonna go down. You just start dollar cost averaging every time it makes a high dollar cost average, total cost average all the way up, all the way up. And as it comes down, you're just able to profit on every single one of you treads. It's also loan on the long side. Next part I do want to cover for you guys is liquidation and what liquidation actually means. So when you're trading on a brokerage that alphas margin trading, anything that you'll margin trading, you can be liquidated. So add a one-to-one margin. So say you have $5 thousand and you play and you buy a $5 thousand, you can ever get liquidated. The only way you can get liquidated is the actual coin, the asset, the stock, goes to 0, and that's where the assays with nothing and it's not worth anything. Whereas sound Montoya treading, you start with a to x. So you have 5000 dollars, they give you another $5 thousand in a trading with $10 thousand, the stock moves 50 percent against you. That's complete liquidation. That's what liquidation means. So I'm going to start explaining a half. So let's say new shoe capital. Let's start with 1, 0, 0, 0, 0. Let's say on a brokerage broker that I use, which is by bit for Bitcoin, the Ethereum offers me a 100 times leverage. So what that means is $1000 times that leverage, 100, getting 100 times. That equals now total, total playing power of a $100 thousand. All I had to deposit on the account was one hundred, ten hundred dollars. And all of a sudden the brokers lending me $99 thousand and I'm able to take a $100 thousand position. Now that sounds awesome. And it means, Wow, I don't need, I need a much smaller amount of money to be able to play a much higher amount of money. There's a catch to this. How the catch works is now that you're playing 99 times your money, as soon as the market moves that extra 1%, you're out. And that's how liquidation works. So let's say you bought that border choline or an asset, $1.1 dollar total, and you bought a 100 thousand. So you now own a 100100 thousand shares at $1 for a total investment of a $100 thousand. But you're only ever deposited 1, 0, 0, 0, 0, 0. This as soon as a stock moves to 90, $0.90, sorry, my mistake. Moves to 99 cents. You're liquidated. That's a 1% move in the stock minus 1%. And you're absolutely liquidated. So you put in $1000, you've leveraged up to a $100 thousand. So you've got an extra $99 thousand for free. So all you're able to move is a $1000 in movement. As soon as the stock moves to 99 thousand gold liquidated, which is this. So I'll go over it again. So now you have $100. So now you have, the stock is worth $1, is worth $0.99. And you times that by a 100 thousand, says, what does that equal? $99 thousand. Now you have to pay the bank back $1000. And they gave you that. You have to pay the bank back the $99 thousand that you borrowed. Breaking out to $1000 loss, you lose 1%. Now looking in this market here, a 1% movement can happen very quickly. Say you bought near the top, you bought up here thinking yet we've got a support and we're going to continue up. A 1% movement would be right there. And that would happen in the first ball was there. It would happen in 50 minutes. You'd be liquidated in 50 minutes. I just want to show you a second example where the leverage isn't so high. Let's just say 1000 again, initial capital of $1000. This time we use leverage of 25 x. So now we have 10000 times 25 equals 25 thousand dollars of buying power. Or at $24 thousand. Okay. Now, what would what would the liquidation price or what would the liquidation percentage B for this? Now, since we're using 25 x 25 x, how many times it's 25 feet into 100 fits into 104 times. That means we're able to, we're only able to have a 4% movement against us. Full we get liquidated as soon as we can have a 4% movement against us at a 25 x, we're going to have to pay, pay the bank back that 24000.1000, uh, gone. So let's just say $1000. That's the best way to explain it. So as I scroll out, let's say you loaned up here, went for a long, brought up here with the process going qua, around now you can see the stop-loss percentage of 1.18% as it comes down as percentage. Once we get to 4%, which is about to come out right there, your price would be liquidated. So let's say entered, you saw a lot of strength, big blue bar, bleak, bulbar, follow-through Bob, bit of a rejection rule, Bao, Bao, Bao bouba, quite a bit of strength. Getting here, instantly we come down 4% rejection, you're liquidated. And within that move, let's say bold on this bar here, you'd be liquidated by this bar here. That's only a five-hour movie and you're completely liquidated. So again, I just want to be careful, just want to show you guys that leverage that you need to be very careful with leverage, cause margin trading can lead to you to be liquidated. And that's why I always recommend regardless of if you're leveraging the eye lever is one to 3% of your total account size. The reason you only want to risk one to 3% of your total account size is because over the long term you'll be able to recoup that as long as you keep the strategies that I teach you and you keep the probability in your favour of one to 3% losses never, never over, and you can accrue a few of those. And you're still be fine if you continue the long-term strategy. Next, a short. What is shorting? Shorting is the expectation of the process going to go down. I see a high-end here. The process come and down. We get a lower low. You get a high, yet another high, not as high probability is once the market tries to do something to us going to go down. So expectation of a short would be selling on this bar right here. With my stop-loss, if you remember from last lesson, would be right above the law, swing high, which would be right above here, which should be my invalidation, 0%.6, which is actually a perfect risk reward. And my first target would be the low of here to be a 1.6% And we could also go back down to this load down here, which did nearly here, which is closer to your 2.3%. As you can see, we need to get a one to 4% ratio, which is actually perfect. One to four means that I can, when, I can lose four times, when once, and I'm still even. So v have a 25. If you have a 30 percent when ratio, you're actually profitable in this situation, if the probability of the market going down to this point here is only 30 percent. You have a profitable strategy. And that's why this is very important. So again, that's what a shorting, the expectation that the price is going down. Now shooting what, what is actually shooting? Shooting is actually borrowing shares. You can't actually show a stock without borrowing, and that's where the margin trading comes in. You're not able to actually show without borrowing money. So when I go to short using my broker, I start with the $1000. Start with $1000. It's always a great deposit amount. 1, 0, 0, 0, 0. Now when I'm borrowing the shares, I'm going to go short. So when I go Sure, I'm gonna go short for, for $5 thousand. Let's just say a 1000 shares is easier. I'm going to go short 1000 shares. The broker would let me borrow the 1000 shares. Let's just say the price of the shares, right, right at the second that I borrow them is $10. And borrow a thousand shares. This can be anything in for x. This can be a 100 lots is could be a 100 thousand units, is could be a 1000 shares, is could be 51000 coins. This could be anything in any reference. There's a sand buying a thousand of any asset. So let's actually make that a hundreds. So in total I'm paying $1000. Now what shorting is? I expect the price to go down. What happens? The broker, let me borrow the shares. They actually own the shares and they give them to me. I paid them $10 a share and all they won't back as the shares. They're not interested in the price. They just say, here's the shares. They take a $100 and they say, I want those shares back. That's, that's the point. Now when they say that one of those shares back, say the price now goes down. We had a movement like we did over here. Price had a rejection and we had a really nice movement down. Let's say in this scenario, the price move down to $9. Now, I own a 100 shares equals $900. So now when I go on the mockup and I buy a 100 shares down here, it's going to cost me $9 per share for $900 a day here. And the process reached my level that I'm happy with. Oops, I left. Once the price reaches this level that I happy with, I pay back the shares to the burka And I started, I have $1000. All I had to purchase was 900 of them given back to the burka and I keep the difference. What's the difference between one hundred, ten hundred dollars minus 900 equals I made a $100 profit of that, of that transaction. And that's how shooting actually works. You borrow the shares from the portico that actually give you the shares for the time being. If the price goes down, you then go on the market, repurchase the shares that you borrowed, give them back to the broker. And if the price has gone down, he only had to pay $900 and you keep that difference. That test shooting actually works. And the quantum mechanics behind shooting in also the reason why you can't use it without leverage trading and margin trading, because you need to borrow shares from the burka and essentially borrowing money. Last point I'd just like to go over is margin trading. As I did cover. Many, many exchanges actually offer leverage training. Many Forex exchanges, Depending not too many stockbrokers, many CFD stockbrokers do cryptocurrencies through. The good thing I'll do like about leverage is that if I had a $50 thousand trading account, that I don't need to have all $50 thousand deposited on one single site to play that full-size excuse me. I can have 5000 dollars in my cryptocurrency account. I can have $5 thousand in my Forex count. I can have $5 thousand in Maya. Stay trading for x account. I can have 5000 dollars in my long-term cryptocurrency account. I can have $5 thousand in my long-term stocks in my day trait another 5000 Monday trading sought, it gives me the opportunity to pull my money in different places and pi a very small fee to leverage those funds to actually end with the total 50000 dollars. And that's why I'm really, really fond of leverage in my situation, is because of how I use it and how I have different pools of money in how I need to move money around makes it a lot, a lot easier to just pay a very small fee. The reason I wouldn't use margin trading, especially for beginners, that their runs the risk of liquidation. And as I explained, it can get very easy. You deposit $1000 and you want to play twenty-five thousand dollars each 1% is a $250 gain. And that can get you very, very excited. People start to over leverage. They go to sleep, they let the trade through that thing. Bam, we've got a really good trade over here and we just slide down, slide down, slide down. They wake up to all these liquidation messages, emails, and it's just the absolute worst feeling I can tell you that I have gone through liquidation and it's just the absolute most gut wrenching feeling. You just need to learn from our haven't been liquidated and in years it's been years since I was liquidated. And I will never be liquidated again because of the rules are put in place and how I manage my money. I never hold day day long positions overnight. Specific strategies like buying on a bull bar on it's high. Following my swing strategy of how it follows the EMA and my swing down. Once again, deep, deep into the strategies you guys will understand. But I just want to be careful with the garden and just say that a low, a lot of people will start with the smaller amount of money. And when you do start with a smaller amount of money and i'm, I show you in later videos that are making $500 in half an hour, $1000 in half an hour, and how it can feel a little bit like, oh wow, want to get in the action, I want to get into the action and excited. The goal here is to use very, very small amounts of money at the start and just learn. And likey university degree. Lot of people pay $50 thousand for a university degree. Trading, you need to use a small amount of money and essentially that's your font, that's your university degree. You need to pay the market to learn. You need to practice these strategies and you need to physically do them yourself. That buying on a lower, at a swing, lower low. And take it on the low, on the lawyer, on the red bar, swing down to another low. You'd need to physically do all these strategies and feel the gut wrenching emotions while you're playing. Because once you start going, haha, just be very liquid, liquidated and then you have no more capital. You have to work a lot more, you have to do other things. See this as a goal for many people. So I just want to be sure that just be very, very careful with leverage trading. And as I explained that 25 x leverage, you can 25 x your account from 1000 to 25 thousand or a 100 X mercy counts usually let you just go up to a 100 X. But with a 1% movement new wiped down. And it's just an absolutely horrible strategy. Leaving on that night. I just like to thank you guys all for tuning into this video. We will be on to lesson 4. In the next video, we covering all the strategies. We're actually very excited for that. Thanks very much for tuning in. 5. Lesson 4 Understanding the Orderbook Bids and Asks: Hello everyone, and thank you for tuning into Lesson 4 of the trading crash course. This lesson is going to go over the order book or e-book is very important indicator because everything that flows to the order book then translates to the volume. And volume is very important indicator when we're trading. Now we're going to go over the bid ask spread. You can fully understand that when you are trading, gonna go over the momentum of the order book and show you how the momentum and how the order book is flowing. Now you can pick up momentum, will see gonna go over cumulative volume and how that's actually shown in the order book. We're also gonna go over spoofing and we have to be careful sometimes just looking at the type. We'll add the order book because there are bots out there that spoof the book, which means they place fast orders and large orders to think that either the market's gone up or down. So they put a very large order on the buy-side. And as soon as any order is touched, it's just removed from the market and the market can just quickly collapsed. So sometimes it can fake you out anything that's been a big wall, wall and you buy in, and then all of a sudden you've just been faked out. So just saying we're going to go over Let's move over to my broker to find where the bids, the ask and the spreads can be found. Right over here. We can see the bids and asks. The difference between the bid and the ask is the spread, which is right now, which is 10 cents, which is a great platform to be trading on. This one is Betfair next, which is one of the cryptocurrency platforms that are actually trade on. So as you can see, the bid and the ask and it is currently trading. You can see there's a 40 cent difference currently, and it does quickly changed and fill in. Now the next thing I want to go over is momentum. As you can see, the momentum is flowing quickly. It's quiet, even is quite even and all of a sudden you'll see one side quickly drop-off in the price will quickly changed by a couple of dollars and we'll find a new place of interests. Momentum happens very quickly, as you can see on the sell side right now, momentum is picking up, Bentham is picking up. There's a lot more cumulative volume through here, which are explained in more detail in a second, which just means cumulative Valmy is just additional volume that keeps adding up, as you can see, where 600 a theorem he is selling and there's only fought for 400 here to the cumulative, so volume is a lot higher. On the right here we can actually see all the trades running through. So in each second, every couple of seconds is trade. So you can see there's four theorem sold for Theorem. So and at the 12 theorem is $2 thousand. So that's a $10 thousand trade, nearly another $10 thousand trade. And all the trades would show up at the bottom here. And we can follow this quickly and see that a lot of traits domain on some second, Second, Second early couple of seconds usually between each trait, sometimes 10, 20 seconds. Not usually too much more. So as you can see, we did draw it. We did actually bounce up a little bit. And we are a little bit more even Michigan, I take a snapshot and use the snipping tool to actually take a snapshot. You can add in the trades as well. So here let me actually show you in time. So here would it, would it actually is, is the price. We're seeing the price. This is the buy price. Is people selling price. So if you were, if you were to come into the market and you wanted to buy a theorem, this is the stack that you'd be buying from. If you went in and wanted to buy, you'd be able to buy a total of 17. A theorem right now for a price of 1.400000, $0.$817, That's how that works. So right now you can go into that. And over here, count means two means there's two people currently selling at that exact price. And with the total and coming over here, if you would have. So if you were to sell into the market, you'd be selling into this stack over here. Say you had a $1000 worth of a theorem, you'd be selling it into this guy, $1817.10. So as you can see, the one here, and there's a four over here. So this is $0.30 difference, which would be the spread, if you remember correctly. So, yeah, when you'd be selling, you'd actually be selling into this deck over here. And when you're buying, you're buying off this deck over here. And then obviously to get out of your trade, you'd be doing the opposite. So if you would above this stack here to get in, you divide it up and then you sell back to this ikea for then even at your trade and you'd be even. And so the county or just refers to how many people were actually in this particular right here, this 33 theorem to be traded. And there's four people treading at this exact price. So that's how that works. And the cumulative volume. So how unexplained the cumulative volume, if you see here, we've got the amount. So we've got a theorem being sold, 1111130265. So that's the amount. But the cumulative total is this one here. The cumulative total actually refers to each number, 11, 8 plus 11 equals 19, 19 plus another 1 equals 2020, plus another 11 equals 3131 plus another 30 equals 6161 plus another 26 equals 86. So this side here is the cumulative volume. Same goes for on this side over here. As you can see, this is total amount of a theorem, 17.350 to 10 being sold. Now this side here is the total, cumulative total getting 17 plus 0.317.4. As you can see, that's exactly perfect. Then 17.4 plus another five, you get to 22.6422.64 plus another two. Because 24.64, as you can see this on perfectly, That's the cumulative volume, as you can see that. Let's get rid of that one. Next, we can actually see over here, as I've explained, you can see the time at which is traded. Green means by red mane. So see all the processes and the amount, just a single amount, 1.60.020.02 and so on. Okay. Let me exit out of that. Next. I'd like to go over order spoofing or dispiriting. It's hard to see at a specific time brought him. But what you will see when i and I can show you is you see an amount. You see mounts quickly pop up like we saw before. Right here we see a big wall of 70 and bang. All of a sudden it's gone. The price he was 1820 with a wall of 70, if you guys saw that in all of a sudden, now there's just 1820 is only five, this ten, say the number keeps changing. These numbers can refer to spoofing and what spoofing is, is can actually scare us out of the market right here. That was a quick spirit. If you saw that the green ball came up to here, there was a couple of 100 of theory I'm trying to, trying to be bought at $1820. That's essentially what spoofing is, is the market all of a sudden quickly pumping, see if he saw there was huge Bible in. Now we're getting on the cell volume potentially if we do make a big drop, some people that quickly got spoofed out and that it just playing the order book? Yep. Yep. Yep. Anita, by quickly by with quick instinct, all of a sudden 20 seconds later that down a couple of percent. And if the training of $50 thousand volume size, that can be done thousands of dollars and all of a sudden. So that's why I ordered a book. Spoofing can be a little bit scary as you can see with spirit basically spoofing on each side, putting a load on one side, putting a lot on the other, putting a lot in the other, putting a lot in the other. Now we find the chosen to go up. So we did, as you saw, we put a lot of side load or so volume on the sell side, then we put it back on of bossa, then we put a lot more on the south side. Then we came back on the bar side and then we bumped up a dollar or 1820 amino to go narrow, 18215 says he can see this is quick, quickly to happen in as soon as, as soon as the volatility increases, see bang runner up to 0.5. Those $2.6 from the 820 original says he can see the spoofing can be important and you need do need it. Very experienced and that's where that comes in. But audiobook volume is very, very important, especially when you're trading, definitely having an Iona and being able to keep an eye on when you're trading like this. And say you're trading on the five-minute time frame. Like it's my favorite. Here, I'm actually looking at the 15 more of a swinging play. It's actually perfect to keep an eye on watch which trades are actually being executed. Which helps against, excuse me, spoofing. And also which trades are actually coming through here and the cumulative orders on each side. And if there's a big block, all of a sudden I've seen blocks of tens of thousands of a theorem and that isn't no spoofing, that was Ru cell volume. We would just automatically crashing, crashing, crashing. So as you can see here, where even up just a 0.3%.4.5 quickly just on just using cumulative volume, looking at whether buys and sells are using spoofing potentially to our advantage. It can make a quick 0.5% on $50,250. And that's an easy two-minute trade at the end of the day. So just want to point that out for you guys and I hope you enjoyed this lesson. 6. Lesson 5 How to Setup Your Charts Using Trading View: Hello everyone and welcome to lesson five of the trading Crash Course. This lesson we're going to go over trading view, which is my charting software, and mostly come and go up and set up indicators. Now show you how to do all of that. Firstly, I just like to talk about algorithmic bots. So 90 percent of the total trading volume during the day is made up of algorithmic bots. It's made up of people who have created as trading patent and have actually programmed into the boat that does it automatically for them. A lot of the time it's many institutions that are doing this and it's not retail traders like you and I. It's people with hundreds of millions, if not billions of dollars, which are able to move the market. And they need execution bots and specific strategy bots to actually move through the market. So our goal at the end of the day is to piggy back on these trades. Because if I make it $50 thousand trade, I'm not able to move the market much. I need to white. I need to predict where the price is going and I need to wait for another bigger player or a logic bot to come through and fulfill my order and fulfill Maya as it, as it increases, then I take my profits, were not able to move the price match. And that's the goal is to piggyback on trades and actually to find using signals, using indicators and using the charting software on the side here, how we can draw lines and different trend lines and triangles. We can actually predict here that there's a higher high using different charting softwares, lines. And a move up is on a higher probability. And that's our goal is to, is to piggyback on these large trades because we're not able to do these logic handles. I'm gonna, we're gonna go ahead and customize a chiding sofas. I'm going to open up a new version of trading view, completely fresh and we're going to go through that and show you guys how I would set it up. And then we'll go through the indicators, the charting tools, and the patents that I use. So let's get ahead and get started. I've already opened up Cianni trading view on an incognito browser. Now I'm sorry that my face is going to be a bit bright. It's just the browser first, first thing he has to come into trading view.com once a year, It's good to sign up. Signing up is free. There are some paid versions. You don't need to worry about that so far. And we go ahead and we'll go to launch chop. First time you have open trading near this is exactly how it's gonna look. You're going to have the main chart in the middle. On the left, you're going to have the charting tools, different trend lines and patterns, things like that. At the top you're going to have, this is where you type in the actual symbol. And you're going to have some different things up here that will go over. And on the right is going to be a watch list, view different things and alerts, but this is more for the paid version. The first thing we're going to go ahead and do is right-click and actually go to the color theme and go to dock is it can see instantly better if you staring at charts all day, you definitely want to have dark theme. Now, if you're not signed up, you will have some little pop-ups that's just sign up for free. Just so you get a rid of some of these popups and also save or you watch lists and also anything like that. So right now we're just looking at APA, which is absolutely fine, does not matter. So this is how are we going to start off? I'm just going to show you guys how I like to customize a instantly. I don't really need these lines in between. It just makes it harder to see. I really, I'm just trying to focus on each individual bond is just a lot going on that I don't need also this Priceline. I don't need to know where the last processors I can just look to the right tells me the exact dollar or what it was last traded. So we're going to right-click. We're going to go to our settings. Right here we have last slide which is going to remove that. Let's also what do we want to remove? We wanted to remove these back back things, so we just scroll through and just find where it is. They are in different appearance here we go. So vertical and horizontal grid lines, we'll just turn this one to 0. As you can see, the vertical we've gone and we'll get rid of the horizontal. Gone. Perfect. Let's say the background, it is a bit of a gray. I like pests and having a quite black and dark, again leave it as gray, that's absolutely fine. Next we have our cross hairs here. As you can see where our mouse moves, it follows. I like having the crosshair, but as you can see, it's very dark and it takes up a lot of, lot of space on the left and on the bottom. So one thing I will do is turn this one down to probably 20 or 30% and just check what it looks like. Yeah, I can still see all the lines. And if I needed to look to the left to look for price, it's very easy to see. This may just go the to 25 percent fine, pivot. Awesome. So we'll go with that and we can change a color on there, anything you'd like to do. But for me, again, this is just what I like to do. I'm going to go through the settings and I'll definitely play around with them and get them perfect for you. Because as you've seen here, I've muck around with all the settings and this is exactly how I lock it. So we'll get a close enough. But we don't want to spend too long just muck around with some small things that can't be changed pretty quickly later on. So let's just change one right here. We're changing the bodies of the bars. We want to make him a bit more of a lighter green is usually what I go for. Whoop, Sorry. So that body needs to be read and will go green, green and make these just a little bit doc, as you can see, the difference between these just slightly. I do like him. Just a little bit difference. Okay. That is fine. So as you can see, just a little bit easier to see a lot of pop-ups coming up 30 day free trials, all that, don't worry about that. So very easy to see. So first thing on the right, you have a bit of a Watch this, you can just click the Plus button here and type in BTC USD. I like to try it a little bit coin and that's just jumped out here. Oh, sorry. Do you have to sign up with that? They go. So hopefully that didn't go away. I'm sorry, that all went away. Let us go back to here. So we'll leave this here. Going back into the settings. So it was basically all the settings that we needed to go through in this spot here the rest was actually quiet. Quite good. So once he make an account, you have exactly how I have this as a free account. I haven't done anything to it. And as you can see, I've got a long list of shares and stocks and forex and cryptocurrencies 0 here. So you'd be able to click this plus button here, type in what you want to let you Sal wanted Tesla. Tesla, he would go on the Nasdaq test link and as you can see, it pops up right at the bottom there, scroll down all the way to the bottom. So top to bottom, click on Tesla, bang on the Tesla five-minute shot, and go to the daily, if I like. And now we've got Tesla on the daily job. Okay, so that's how we do that. We'll go back to eat on the five-minute charts. And so I have a few my little notes. Perfect. So that's how I'd get the watch list side. Whatever watches you wanna do forex, commodities, stocks, crypt dose, have you like to play. The next file here. We'll see you can type in what you'd like to view if you don't wanna add it to watch this. And just like the view me as a doctor, the Indian Tesla bang. Now looking back at the five-minute Tesla chart and if you'd just like to go back, specifically one step is the forward and back button. Just go back one, we view exactly the last thing that we viewed. If we move the button like that and then we go back just going to, it's just going to bring us back to where we were. So one movement and then back just brings us back. Okay, The next point, the next one is up the top here. So I'll like to have a range of one minute, three minute, five minute 1531 hour for our daily, weekly, monthly lot of the time at the start of the month, view every single child of the month and breakdown for the weight breakdown of the dielectric data at the end of the month. And get a good grasp on what I'm trading and how I'm trading it. So what you do is click this little drop-down here and you click stars next to all the, all the ones that you'd like to view. So we've got all these other ones like 45 minute, two hour, three hour, all these different ranges. So I'm not so much interested in even some of these smaller ones, 1 second, 5 seconds. So all the ones that you'd like to do fairly, I don't really look at the one end even though the three minute I always am minimum on the five-minute. And then 15 minute, 30 minute. Very interesting. One hour is very important. That's why I use this line. It's actually this exact line, but trading on where each bar is a 60 minute, 60 minute candle. So little bit different for us. Very interesting because it breaks up the day into multiple Canvas. So you can see how the day was trading involves multiple green browsable, red bars. And obviously daily, weekly, monthly. Always important in any asset, any, any asset doesn't even matter if your day trading, It's always great to see where the trend is going for that month, that week. Okay, so that's that part up here. Next we'll go on. We'll be clicking on the indicators. So, so let's start off with the RSI. You have the relative strength index, which is, which is an indicator that I'm not going to explain too much about now, but we will go over in a whole, whole video by itself. So you can see this is the relative strength index. It actually, it shows a lot of momentum in the market and it's a leading indicator, not a lagging indicator, which I'll explain a little bit more about later on. So this section, very, very interesting indicator, and you can just adjust that things like this. You can actually double-click on the screen, make it full screen if you're trying to look at these highs and trying to do some different lines and things like that just to get a bit of a close-up public, also, excuse me, double-click to get out of it. So that's an RSI. So just showing you how to add it once we'd need it, get rid of that one ending in. That indicator would also be going over MAC D. Show you quit. So we get the Mac D and we can adjust it. So just showing you when I talk about the MAC D easily quickly if it's already opened, my screen just had a quickly add it to my screen. That's the Mac D. Now with a free one, you can't have too many, so I've got one ready here. I can add in volume, and so I can have three in total, but you can't have too many MAC D. And I'll also show you how to get these EMA. So I've actually got these two emails that as you can see here, I've actually done into one. Now what I'm gonna do is it's called EMA, which is exponential moving average. Again, I'm not going to explain to too much about it. We're going to click on that one. Let's just can we hide these? No, So if we double-click on this inputs, the length right here, this is a 20 EMA, so we'll change it to 200. And just to show you that it works, I'm actually going to make the line really, really thick. So it's going to overcrowd that one. Yeah. So as you can see, go thin to thick. There we go. So as you can see, when I click this button, the blue line is actually overlapping. Orange one, I just prefer orange. It's just nice to look at and not too crazy on the ISAs. You can see That's what I've done and put the inputs and the length to 20, which means it's the average of the last 20 bars. So it counts 20 bars backwards, puts the average 20 and then adds one more averages that adds the next one average of the last 20 if that puts their ads that one to the last night and then just keeps going on. So that's firstly, keep that there. He may for the 20. And then the next one, this is actually a 220, which once I do the mathematics and I can explain later on, this actually works out to 20 EMA on the hourly chart. So how we do that one is another one. Indicators, we go EMA, exponential moving average. We add that one in. As you can see, that's that blue line that's come in. It's not overlapping anymore. Go to the email, we change a color and see here, Let's go. We've got a blue and yellow and red. Make it very thick so you can see it. And now we're gonna go over to the inputs. I'm going to change this to 220 and it should overlap. Now. There we go, perfect. As you can see, we'll go back to here. Click on and off. The red line is overlapping my white lines. So whenever I'm talking about the 220 EMA and whenever I'm talking about that 20 MA. So exactly how to add it in because these are actually two most important indicators that I use or do use, RSI and the MAC D and the volume, these two specific layer, the most important. And I'll going over them in much more detail later on, but I just want to show you guys how to add that one in. Otherwise it will get too long. So now, and then once you just click on it, you can just click the Delete button to get rid of it. Click it. Oops. I can't reach. Let's just keep going back. Account. Reach them. There go. So that's how we get an indicators lot. These ones don't need to do a little bit. They are actually paid, paid for. Next, we're going to go heavier air on the left now these are all the charting tools and the drawing tools. And you can see I've actually got them all over here. Very similar to how you do these days, is that same thing. You go to the right and you click on the star next to it, and it's actually going to add it. So I could click on the cross and it's gone. And then I add it. And as you see, it's gone all the way on the right here, cross and cross. Does you can see I've gone through all these other, I've got trend lines, horizontal lines, vertical lines, arrows, parallel channel disjointed channels. And once I put a star Nixon that come up over here, and these are the ones that I do use them most, all of them are very important and you can use them for different strategies. But these are the lens OF specifically is very important to me. Fibonacci replacement and Fibonacci extensions were actually. To, to, to measure drawing tools that I use the most. And x we just have some. So when I need to draw easily for you guys, we have some basic brushes. Things like that. Rectangle's rotated, rectangles, ellipses, triangles. And we got the texts, however, how adding all these texts, you can add in all these markers, which are these later on, we haven't got to complex into it yet some different patterns and head and shoulders, which we do talk about later on, some triangle patterns. Yep, so long and short positions which are showed you guys and Paul patterns, things like that. So that's everything about trading view that will get you started. Once you've set it up to how you like it. This is thus ago is to just basically get a Lockett's. You can look at it every day. A lot of people do lock it was all like a black sock and stare at it every day. Alright, let's get rid of that. We are done with that. So let's go over some of these indicators lot of the time when I'm drawing a triangle. So there's three types of triangles. We've got symmetric triangle. Go ascending triangle. Oops. Know what's going on here? One, sending triangle and descending triangle. And we've got sending triangle, lungs billing and this new keyboard I'm not count, get the spelling right. Okay, so ascending, descending. And how the process travels is it will travel between these triangle breach, this point which is the apex, and it will choose a breakout point with this apex will reach to the apex. And C will make high, high, high, low is high highs each time. And once it reaches, make a decision with here, down, low, high, low, high, low, high, low lawyers. And here we'll make a decision. And that's how I use all these tools so you can easily use them as a combination. Don't specifically is a triangle one. I just draw them in and easily to drawing tools. Now let's quickly just go over to the chart and I'll draw some actually on the chart. Okay? Given here, we can see a bit of a triangle right here. Just instantly, just symmetric triangle, just lightly. Doesn't have to be perfect. Can leave from back here. As we can see, we've got down, down, down loa, loa, loa, loa, loa, loa. Now here we go to the apex and we chose we chose position quickly breakout to the downside if we took that trade. And we took, so on this, on this bed boss solid ending on its low right there, could make 0.5% if you hold a bit longer, could've made 1% of we had a $50 thousand trade. Perfect, we would have made $500 US. That's a half weeks profit for a lot of people and that's actually quite a lot of money with low-risk quickly view that triangle, easy to see. Bank make that profit. Even here you can say scroll through of seasonal going to be a triangle on every single pattern. But triangles definitely pop up. This probably a smaller one in there, but that's fine. And just in general. So I'd just like to thank you guys for tuning into this session and just going over the basics of trading view and getting it all set up. 7. Lesson 6 - Technical Indicators and How They Are Used: Hello everyone and welcome to lesson six of the trading Crash Course. This lesson we're going to go over technical versus fundamental analysts. Next we're gonna go over technical tools and indicators such as the RSI and the MAC D. Then we're going to understand every time in an article when I first started trading or you read a lot of articles that's actually gained a lot of knowledge. Initially, I didn't pay for any courses, although it took a much longer time. That's why I'm compiling all these video for you guys so that you can have one place to have all the videos and all the key points distributed nicely, rather than having to go all over the Internet. Let's get started. First, we're going to go over what is technical versus fundamental analyst. Now, fundamental analyst is somebody that invest in, say, stocks, for example, in uses things such as earnings. Earnings per share, dividends. They look at how much money the actual stock or company is making. And they use fundamental tools to make the decisions in the market. Moreso they going over in investing longer-term strategy as they're moving a lot more money and they're leaving it in there for a longer time. What are these fundamental strategies? You're looking at? How much the earnings are, what companies are doing, what their next strategy is, how they keeping up with the market. This is key fundamental. In this course, we actually focus on technical reviews, technical tools, and indicators to find potential in the market to make some money. So technical tools and indicators such as the RSI, such as the Mac day, such as drawing different triangles and different channels and different supports and resistances. So technical tools and indicators a very, very, very important in what we're actually doing. But there are two different types. So let's just get that started to technical tools and indicators. What we're next going to directly going to go over an article. And we're gonna go through every single term and actually understand what they're saying at the start. Sometimes it would take me the rate of very short article. It would take me an hour, maybe an hour and a half because every single time I was Googling because I didn't actually understand what I was saying. So in order for me to understand what that was saying, I had to Google every time. Otherwise, it was basically like I was reading another language and that's what trading and a lot of these technical terms are. Eight is another language and that's why I want you guys to really understand it. Because it was very hard for me at the start. It was like I was learning a whole new language and the difficulty was much greater than it really had to be. So let's get started in that. We're going to move over to what isn't actually a technical indicator. Let's get a full definition. This is Investopedia and this is actually a website that I used to use a lot and I still use a lot to this day if I don't understand a particular term or sound learning a whole new strategies because there are thousands of different strategies and sometimes just need to update yourself with some of the key terms. So here, Investopedia, very, very good time. A technical indicator. So technical indicator, patent based signals to produce parts volume. Follow technical analysis. The key takeaways, technical analysis will mathematical calculations based on price volume, open interest of a security or contract used by traders who follow technical analysis, technical analysis, or chartists. As we're doing, we're looking at charts or date. Look for technical indicators in historical asset price data in order to judge entry and exit points for traits. There are several technical indicators that fall broadly into two main carrot categories, overlays and oscillators. And actually we'll quickly go down to what the differences between overlays and oscillators that is just right here. Overlay is a technical indicator. There's use the same scale is processed, uploaded over the top of process on a stock chart. Examples include moving averages and Bollinger bands. So as you can see, I've actually got overlays in my chance. Yeah, I actually use the exponential moving average, which is an overlay to my chart. As you can see, it's overlaying my shot. Key difference there. Second part here are oscillators, oscillators, a technical indicators. The oscillate between a local minimum and a maximum uploaded above or below a price chart. Examples include MAC D or the RSI, which of the two oscillators that we actually use for my charting. And as you can see, they can actually double-click on either of them. And you can see they look, they, they go between a local high and a local law, as you can see that go between somewhere between a 100 and 0, and then they oscillate between these numbers. Same with the Mac day. And you can just do, as you can see, it's oscillating. That's just okay. So how technical indicators work? Identify trading opportunities by analyzing statistical trends gathered from trading activities such as price movement and volume. So again, that's what we use in support and resistance price movement. And definitely volume does come into it as well. Unlike fundamental analysis, unless you attempt to evaluate a securities intrinsic value based on financial or economic data, such as how much they're earning. Technical analysis focus on patterns or price movements, trading signals, and various other analytical charting tools to evaluate a security strength or weakness. As we've discussed, we use definite different indicators, volume, different charting techniques. And that's exactly what technical indicators help us do. So it can be used on any security with historical data, this includes stocks, futures, commodities, fixed income, current sees, everything, cryptocurrencies, absolutely everything. Technical indicators known as technicals flow, historical trading, price volume, urban interests to fundamentals, rather than the fundamentals of business like earnings, revenue, and profit margins as we, as we discussed, include indicators are commonly used by active traders as we are active or active in the market trading every day. Since I've designed to analyze short-term price movements. But long-term investment, investment investors may also use technical indicators to identify entry and exit points. And we've gone over this. Excuse me, the size you can see this is very, very important and you can definitely go over this article as it goes over a lot of different things to see if it goes over the back D here and relative strength index because our very important and we will discuss these in much more detail in later videos. But as you can see, this is very important. Next thing I want to move ERBB2 is actually here. I've got an article about Bitcoin. And we're just going to read through. So this is reading time is two minutes. Person not that long ago. I just found this. Just then. We're actually going to go through this article and understand everything that the article says. And let's actually go over to the chart and actually draw out everything that it means. So right now I'm just going to double-click to get rid of those. Would just leave this in the corner of a go. So let's get started. Bitcoin price declined over 5000 dollars and tested the 45000 support against the US dollar. So the 45000 dollars support. So again, what is the support? Let's scroll back here. As you can see, the prices on the right. 47 thousand different exchanges have different process right now we're changing on bribed by bit. As you can see, if we scroll out what they're talking about, a support. On the left, we can see there's an area here that actually it's sort of consolidated for a long time. It wasn't really able to break above that high or low for a long time. We traded in this, in this price range for a very, very long time. So I call that a support and as you can see, came over to this process over here, and that works out. So they just, they just mentioned that Bitcoin tested the support and that's exactly what it means. As you can see to the left. It's not as aggressive. We're not just moving, we're not moving upwards like we are here. That's a very upwards movement where we're not going sideways, we going up a little bit down, up, little bit down, up, a little bit down, up, little bit downwards here we're going up, down, up, down, up, down, up, down. And then we start to get that breakout. So this is an area of support. Can see US dollar BDC is now correcting losses and facing a strong resistance near 405455 thousand. So what does that mean facing a strong resistance? Let's get back to the shop. Scrolling a little bit more. As you can see, this isn't exactly different, slightly different exchange but the process that matter. What does it mean? What is a resistance? Think of, think of resistance as a concrete bowl and we're just not able to break through it. It's being it's a hot concrete wall. That's what a resistances. Where can we see a resistance price really struggled around this area. We made a high, we came up, we had a Quick Create downtrend, even we can call all of that in there. Once we came into this area, quick sell off. We came back into this area. Quick sell off, huge sell-off. See here in this area in here is a resistance level. It's like a concrete wall. We're trying to break it, break it, break it or not able to. We come straight back the other way and we come down to a support which can also be thought of as a concrete level. We're able to break through, able to drill through that support level. It's a hot concrete level for now and price is not able to break through. Again, that's exactly what the article was saying. Bitcoin is struggling to climb back above the 54 and 55 thousand persistence level, as we just discussed, what a strong resistances prices now well below 55000 and the 100 hourly simple moving average, 100 alley below are the 100 out really simple moving average. Now as much as this isn't the exact same simple moving average. We use an exponential moving average. The difference between the two exponential means that the process that a more recent have a greater white on the actual indicator for a simple moving average doesn't manage just the complete average across. So you can see average and EMA and SMA, basically the two same thing. So what he's saying, it's way below our two to the 100 SMA, which if you just in, in this instance, imagine this to be the 100 SMA. He's, he's a 100 percent correct races the price is below the 100 SMA, which is a bearish signal once we stop moving below these moving averages. As you can see, and I can scroll out for a long, long time, look how long and how, how long we've been above this white line. This white line signals complete strength. And this this orange line to me signifies short-term strength. Look how long we've been above, above this white line. Tiny little movements. So that's February the 1st of February in today's the 23rd of February. And we Bailey Bert through and we've just been above it. Again, breaking below bearish signal. That's why they're pointing these things out and that's what you want to understand. If you wanted to, you would go to the indicators. You would go simple. Moving average. Boys code SMA. Sma, simple moving average. And you would put that on and you would change the numbers as you double-click on this and change it, you would put it at 100, so I could add the 100, 100. We use that right now. So as you can see, that's the 100 price came down, rejected, came down again. So we're not able to through that level. That's exactly what they're saying. There was a bright below major bullish bullish trend lines support. And if 54 thousand on the hourly chart, there was a break below a major bullish trend line. Let's go over that. A break below a major bullish trend line. Then brought now that talking a lot about the weaknesses. And they are actually putting confluence points that putting multiple indicators and multiple different significances that's showing that it's being broken on the bearish side, it's being broken on the bearish side, and the more time just being broken on the bearish side, but different indicators. The mole boltzmann algorithms and more people are going to see that it's, that it's bearish and it's negative. And people are going to continue and the price is gonna go down. And that's where we can actually come in and take advantage. So it's actually what is a trend line? A trend line right here, I've got it right here. As you can see, trend line in a hot lots of trend line is a line and you can direct it in any direction. What they said here as a major bullish trend line, a bullish trend mind lanes, it starts low and it goes high. Brought a bearish trend line would mean it would stop, pause, and it would go low. So here they're talking about a bullish trend line. What's a bullish trend on this drawback here? Bullish trend line. This is the one they're actually talking about here. Bullish trend line, bullish trend line, bullish trend line. As you can see, that is a bullish trend line who had support. Support, support, support, nearly supported, came down, acted as a support breakthrough, down acted as resistance. You see that? You see how loaded times a support, support, support, support, once broken axes resistance. You can see that right there. That's a perfect point to actually take a negative trade and go on the short side. As you can see, support, support, support, support one's broken flips into resistance. You can see we broke down a huge percentage from this trend line, where actually broke down 12 percent within three hours. Instantly, within 10 hours, quickly burrows straight backup to the trend line and could not break. It acted as a, as a resistance, acted as a brick wall from the top, resistance couldn't break through, had a massive crash on the way down. We'll add another 15 percent closer to 12 percent on the decline. Says, look at all these big plays that you can make here. Within a very small amount of time, within one day lodge 10, 20 percent moves that you can make. So that's that's pointing out exactly what they're saying. The same trend lines support and 55000 and now acting as a strong resistance. There you go. The same trend lines support, the same trend lines support 1, 2, 3, 4 supports is acting as a resistance. They pointing it out and I want to make sure you guys understand. And so you'd have to actually go into the chat yourselves, draw everything out, understand what they're saying because instantly just see that came out 17 minutes here. I didn't have very much, very much time to quickly understand it. I looked at him, I instantly understanding as long as you have all of the points and you have everything laid out and you understand the layouts. Perfect. Understanding is perfect. The thoughts of there excuse me, becoming showing signs of more losses after forming a short-term top. Short-term top. So the same, That's a short-term top. They're expecting high prices, but for now there's a short-term top made 123 com, breakdown, breakdown. Let's delete this line. That trend line. Press had a sharp decline, Berg key 55000 support level. So as you can see here, there was actually a bit of support here and those actually some support here that we went sideways right in here. That could also be a support. And evenly broken down. The breakdown we had a bit of up now came straight back through it. And then the 100 ALI, simple moving average to move into a bearish, sorry. So as we've discussed, the 100 alley and we're on the one alley jaw, as you can see here, to move into a bare assign. So you can actually see he isn't, he has a, what I call confluence is you can see that this trend line Qia acted as a resistance. Now not what we call confluence is when the 100 AMA right here acted as a resistance and ask support. Bullish trend line once broken, once it broke out, haha. Acted as another resistance. So we had a trend line resistance, we had an AMA resistance, that's what I call confluences multiple lines. This multiple indicators, There's multiple twos signifying Barry strength in the market at it, the very near, the very same level right here, we nearly reached that exact berries zone, came straight down on the 100 EMA. We poke through it instantly down and that's what I want you guys to understand. These, excuse me, come fluence levels and all these tools is why you need to understand them and why they're so important. Because trades like this coming out every day, you put a limit order to sell once press reaches this price. And you can make a quick 10 percent. And you're trading a $50 thousand account, you're making $5 thousand in one day. Very large strides. And that's why I hope that this course is going to be worth a lot. I know it will be worth it. Next, let's go on to the there was a break below a major bullish trend line and support new 54000 on the alley chop. We discussed that the pig crushed over $5 thousand and even Spock below the 50 thousand support and tested the 45000 support for correcting higher says we discuss there was support there was supports in here, and there also some supports back here that we've discussed very early, very early on. So they are different support levels as we go along and we just mark them off as we continue to go higher and higher. There's a break below the fifty three thousand and fifty two thousand. The price even lived above the 50 percent feed level on the downward move above 58 thousand swing low. So let's go into what are they talking about? Climbed above the 50 percent fib retrieve basement level. Now, what is the Fibonacci replacement level is what I've got here. Can you see that it's good. Fib retrace man stands for Fibonacci retrenchment. And these numbers actually use, let me use it over here. Fibonacci is related to the 6.8, the golden number, which is golden ratio that's used everywhere. So in spirals of a show and things like that, use the actual 61 eight ratio to get the perfect spiral and sunflower petals. Or going over the Fibonacci numbers, which is 1, 1, 3, and it continues on, continues on five, I believe. So. Yeah, so the Fibonacci and what they talking about here is as you can see, the Fibonacci goes from one to 0. So this is, this is the level in-between here that we're talking about. That's the level right in between here to whether talking about when they're talking about a 50 percent, it's that's 0.5% replacement. So between between these two levels, 50 percent exactly is this green line. Now between this level and this level, this level right here represents 61.8% of the overall, of the overall box. And that's what the Fibonacci numbers, these three are the most common that we use. 0.5% and the 61.8%, these and the 66 is little gut, what we call the golden pocket. And the 0.5% because it's just an exact 50 percent retrace front of the level. Can actually post this on the jaw here. So let's talk about a 50 percent retracing and we can even start here and put here, this is where we had a bit of support. And then we broke about consolidation. Let's do from here to the high. As you can see, this is what would be the 50 percent level. So just swing that out little bit more to the right. Does what they're talking about when they say a 0.5% retrace me. So he put it from the lower to the higher that talking about a 0.5% retry basement, which is a 50 percent Fibonacci retrenchment. So again, you guys can understand what they're saying, exactly, what they're discussing. Hannah, if we actually scroll out a little bit more and we got are from this low because this was actually the last breakout, breakout, breakout, draw another Fibonacci. We start from the lower, we extend it to the HI. And this is actually what they're discussing in the posterior. It talking about from, from these two levels here. As you can see that that's a huge level. So 50 percent level, but it is a level. From the last major break, we had a support at the zero-point five at the 50 percent Fibonacci retrace MET level, which is very, very significant. And the 50 percent and the 61.8% Fibonacci retrace my levels are the two most significant levels that I use in my trading and the two most profitable ones that I actually use kneel on a daily basis. We'll actually on every single damn drawing Fibonacci's and nearly on every other day I'm taking a trade because Fibonacci is influencing with other different trend lines and different technical structures. Let's just get rid of the a 100 concurrent usually used that to the 50 percent downward move and the swing low. So they're saying it caught the 50 percent retrace MET level, which as you saw it quote it perfectly, it literally poke through and that's why it's such a perfect level to trade. A lot of people would leave a limit order down here, which is, you leave the order so that once price reaches this level, your order is sitting there and when it pokes through and it goes through, your order is executed. So a lot of people would have been lifting, leaving the waters here and look within a very short amount of time making 14, 15% is just absolutely crazy. We need doing these type of long-term trades. So as you can see, very, very, very useful 50 percent replacement level. As you can see, they actually drew this out here and actually did poke through. It didn't quite reach there in this post Bang hits three, That's exactly my 48 thousand the level. However, the same trend support 55000 and acting as a strong resistance. We soaked about that, that trend line. The 100 ALI is also near the 55000 level, along with the 76.8% Fibonacci retrace meant level. So you remember, so I will just go over that. In the Fibonacci there are more levels and we discussed. There's zeros from the one that is also the 78.6 as it's not one to 38.2. And we also have some extension togas that go out here because he is now moving lower and seems like it could revisit the $50 thousand support level. If the process was to say about 50 thousand, it could decline towards the forty-six thousand dollars support level. So as you as you can understand these the Everyone's, they're pointing out all these different levels that we can go through go to. So the saying that we could probably come down closer to this level, even in here, although we did touch it, they're saying when we come down here, we could probably come down into this level. And as you seeing these candles are looking quite bearish on all of them quiet lodge and closing on their low. So definitely a large possibility here for sure. So yeah. If the bitcoin stays disabled 50 thousand fold level, it could stay above 50000. 54 major is the first major system. It's near 50000, 55000 level as we discussed. And the 100 at SMA. So the first goal would be right, Here's what they're saying is basically to get above this 100 SMA would be say to support in this level in here. As it's doing, come up, break that 100 SMA, and then its next level of support would be in this area up here, in that $55 thousand level, as you can see, 55000. So you would need a break through this. So then we then we would need another break through to get another hot. So that's what the articles discussing. So they're saying it's currently right now is bearish and it could be bullish, but we need to do a variety of things. We first need to flip this level that's currently acting as a resistance. We then need to flip the next resistance level, which is the all-time high, which is also another local resistance. So making a lot of sense hopefully as discussing it. So technical indicators, the alley Mac D, The D is gaining momentum in the bearish zone. Now what does that mean? The Mac D is gaining momentum in the bearish zone. Let's get the Mac T out and let's actually double-click on the Mac D to get that in full-screen, gaining momentum in the bearish soon. So what the Magda is is all the red is when we're more on the bearish side, the green is when more on the bullish side. And as you can see, we're starting to build up on the bearish who goes, we were, had a small larger the bed. The Bulls got a lot smaller. The Bears go a lot, Lotka, The Bulls got very small, the best got a lot larger. And as you can see, we're actually gaining momentum in the zone, all in this bearish zone here. Whereas before, as you can see, we're a lot more above this effect. You can see the 0 level. Rather than 0 level. We're a lot more above. All of a sudden, we're going the opposite way of now. Going below, we started to go below here. That's what it's discussing. The Mac D is gaining momentum in the bearish zone. Which is again just discussing that there is some variation of this market. Next, alley, RSI relative strength index for Bitcoin is well below the 50 level. Let's go into the RSI. How the RSI works here is we have two lines, the 70 and the 30. Now why these lines are here is anytime it's above in the black zone, this signifies that Bitcoin or any asset is in an oversold level and is more likely to be sold off. Opposite. Once we're below the 30 level, it's a much higher chance that we start to see a bit of a bounce. And we're in maybe an oversold area. And in the middle is some type of medium. Whereas 50 is exact even we usually offsite between a 100 and zeros, sometimes a great just slightly minus a couple of numbers and just slightly above a 100. But learning to worry about that. So the same well below the 50 level, which around the 50 is neutral, anything below 50 would be starting to turn bearish as we are in the low 20s area. And anything above 50 would start to be, I guess, neutral, bullish. And as it gets higher and higher, and mobile, mobile is, mobile ish. And I guess here, as we get lower, more bashful, bearish, more bearish, where we'll have to come down and test support a couple of times, even within the indicators, you'll see that there's resistances and supports resistance, resistance, resistance many, many times. Now let's actually go over the indicator. Let's just quickly just get rid of the Mac day just so I can make this a lot bigger for you guys. Let's just quickly show you. So as you can see, once we started to get into these barriers, cern is this bearish flexor. Low twenties here. We quickly had a buyback up. Now we're starting to get into this zone again. We could come a little bit lower and we should start to have another turnaround. Can see on the opposite way we had, we started to get above. We hadn't been above for a while. We started to get above in this level. We went up even a little bit time and then eventually we just couldn't hold on when he had a crazy thing. The crack down went down nearly 20 percent in a very, very, very short amount of time. And even you go back here. Yeah, we started to pop above. We had a short term downtrend, we couldn't really break. We had two little quick move downs. As we can see, we can even scroll back a little bit. But we started to get just above again, just slightly get above. We just got this quick little move down, as you can see again here. Just slightly got above just a quick little tiny nerve down. Same over here when we got above a few times and we just got a bit of a move down. As you can see, RSI above and below, depending on where it is, is a very interesting and very, very great technical indicator for using, definitely for gaining momentum because it's an oscillating momentum indicator. Gang. And in real time it actually is changing in real time with us. That's very, very helpful. And one of the, my favorite indicators when actually trading. And as we saw, we've got major support and major resistance and we pointed all those outs. We talk about resistances as a brick wall or concrete wall that we're not able to pass through and a support that is the same, our concrete ground or floor that we're not able to posture. Now hope you guys got a lot out of this lesson. We actually went through a lot today on to the next lesson and hope you guys enjoyed. Thanks for watching. 8. Lesson 7 - How to Read Charts, Understand Candlesticks and Analyze Price Action: Hello everyone and welcome to lesson 7 of the trading crash course. In this lesson, we're going to actually go over analyzing candlesticks, picking if they're actually a trend or a DOJ candle. And we'll be able to determine that by the end of this lesson. Next, we'll be able to read the charts and actually understand what's going on and what the average direction should be. Next will be able to read the price action using the flow of the candles and the charts and the LAMAs and are different indicators to actually be able to make it, make a decision and choose a direction in the market. Next would be able to talk about market and limit orders and which ones are more useful at different times. Let's get started. The first thing I want to go over is actually can-do buzz and being able to determine which one is a trend bar and which one is a dodgy bow. In my definition, there are actually only two types of Cain was that you can ever encounter either a trend bar or a DOJ EPA. Both either bullish and both bearish. So a bull and bear trend bar and a bot embed RGB. I'm going to actually go over them now. So let me first actually explain and draw this out for you. First thing we're going to start with is two cantos here. I'm going to draw two bullish ones. And I'm actually going to draw two bearish one. So let's change the color to red. Okay, let's start with this. So these are the bodies of the canvas. Next, I'm actually going to draw the weeks. These are the Wix. It's not drawn very well. Let me draw that. Put that it's not drawn. Upa try and draw the best I can. There we go. That's better. There we go. Yep. These are the Wicks. As you can see. Let me draw that one just slightly better. Slightly better. That's, you got to get the point c. Understand these are the week. So anything all these little, did a Wix sort of little Nieto points, it just go down. All of these awakes. And these are the bodies of the candle. So these are the same. Let's draw them. So let's start off with a green candle on the left here. This would be a bullish trend bar. The reason it's a bullish trend bar is because the body of the candle is at least 50 percent of the overall candle, at least 50 percent. So what I mean is that out of a 100 percent, this whole body is more than 50 percent compared to these Wix. And so you can see this is a bullish trend bar as there is small little Wix but a large body. So blood bone trend bar. This bar here is what I would call a DRG bar. As you can see, the wicks, the price movement, the up and down was a lot bigger than the actual candle. These weeks are a lot bigger than the actual body of the candle. And this body is very small, less than 50 percent. The overrule candle. This is what I would determine as a bullish DOJ EPA just a dodgy bar here. This is what I wouldn't refer to as a bearish trend bar. The reason it was a bearish trend by is that the body of the candle is more than 50 percent of the overall candle. The wicks on the top and on the bottom are small, and the actual body is quiet. Lodge said to bullish or bearish trend bar. This is what I would call a bearish door GBA. The reason being is the Wix above and the Whigs below are a lot bigger than the actual can-do of the body. Now, let's, let's properly define all of this. So in a bearish ball like this, where would where would the open, where would the clothes? Where would the high, where would the low B, these ovarian important? Let's start with the high and the low of the candle. The high of this candle here. Let's go and smaller. The height of this candle is at the top here. Sorry about that. Hi. The higher the candle is at the top of this week. Well, this week actually signifies, is that the price actually traveled, traveled, traveled up to this level, but wasn't able to close there and came back down, come back down, come back down. So within this, let's call this a five-minute candle. Within this five-minute can-do approach, traveled up here, wasn't able to finish there and came back down. Now let's go, which is the low, the low of the candle is at the bottom. Very simple. This is the low of the candle. Price traveled down, down, down, down, then it quickly got bolt backup and we weren't able to close down there. Now where would the open of this candle B, when a bearish candle opens, it opens on the top. And because it's perished, it closed lower. So starts up here. And because it's bearish means we're going down, it closes lower. So the open would be at the top and the clothes would be at the bottom. That's the open. And that is the close of this candle. So you've got the hive D scandal. We've got the low, we've got the open. And then we go to bearish close, we move down. Now let's talk about this candle here, the bearish trend ball. But the high the candle, because at the same spot, high, at the high, this, this BAD traveled up here, processes not able to maintain. And we sold off. The low of the candle is in the same spot. So we've got the lower at here. Press went lower, lower, lower, go and got quickly bought up and was not able to close there. Whereas the open of this candle, to open this candle is the same. It is up here, because we started up here. And this is a bearish trend bar. And we bearish trend bogged down. And we close down here. And that will finally be the close of this bar. So we've got a bearish door GBA, and a bearish trend NBA. Bearish trend bar is signifies more strength in the bearish direction. A bearish DOJ IBA signifies a trading range. Press went up, price went down, price closes in the middle. We weren't able to make a decision on a bearish trend bar. Opened, opened, high and closed much lower with a fair bit of strength, signifying there's bearish strength in the market. When I want to be taking a short position, only be taking a short position when the candle is showing a significant amount of declining strength. Next we move over to the bullish, don't GBA, a bullish DOJ, EPA. Similar. Every other candle as a high brought at the top, prize, came up, came up, came up, was not able to close, quickly sold off. We've got the low of the candle at the same spot. The low price came down, down, down quickly. What board up was not able to close down there. Now with a long, we actually want to be starting lower. And we're going to be closing higher because when we long and when we have a bullish bar, Polish means we're going higher, so we start low and we end while. So opposite to this Bob, the open of a bullish bar is actually the bottom of its body. It actually opened at this price. We came down, we came down, we came down. That was the low of the bar. We came up, we came up and we came up. That was the height of the bar. And where are we going to close? We actually closed here at the top of the body of the Bobo. Now it would be the clothes. And actually let me just blue strand, but let's put that over here. Bearish trend ball and it's actually just define a mole for you. We move this over here, bluestone GBA. And we've got lastly a bearish to Geebo. Oops, there we go. That's just a label. So bearish stage Ebola, bearish trend but polish, the GBA, bullish trend boss. So there we go. So just ending on the bullish Dojo, we've got the open. We looked into this price, we came down, we came down, we came down, we created the low. We came up, we came up, we came up. They created the high, became down. My came down, became down, can-do, close. Right there. Next, we've got a bullish trend bock. Let me just draw that slightly better. Area pivot. So same is this bullish, dodgy bar. We've got the high at the top of the candle, where the tiny little wick is. We've got the low at the bottom. We've got the Urban at the bottom, and we've got the clothes at the top. And let's just explain that open of the bar or had been TEA. We came down, we came down, we came down a little bit. We made a little wick and we came up really strongly. Up, up, up, up, up, up, up, up, up. Made it made a little high, came down slightly into the five-minutes closed. That's the end of the candle. This can do here is very bullish when I'm buying on, when I'm going long, I only buy on a bullish trend, Bach, I wait for a significant amount of strength in the direction of the trend, because I've found that there's a higher probability of me making money when I take a trade. That works that way, I find that I have less of a probability when I take a trade on a bullish DO G bar in the Arctic a long position on a bullish dodgy Bob because there is less strength and there is more trading range or having a lot more price trading in these areas where we're not closing, where we're having a lot of strength and we have another bother. It's got the same a lot of strength and a lot of strength. That's when I want to be entering the market because we're starting to move. And that's, that's the direction we're going to be going. So here we go. We've just explained all of these balls for you. And I hope that makes a lot of sense. But we'll take a little screenshot just to fully understand everything that's going on. I'm actually just going to take a screenshot snipping tool just so I even have this later on. Let's just move that away. Okay, so that was very useful. I am just going to quickly go and delete these. And what we're actually going to do is we're going to go through each of these troughs and we're going to actually, let's go through and analyze each bot. We can leave it there. Let's analyze each bar. Let's scroll into each box quite heavily, starting, let's start over here. This candle right here. What do we call this candle right here? And give everybody a second, just to think about it. What would we be calling this candy bar here? If you call this a bearish trend bar, you would be 100% correct. The reason it's a bearish trend bar is there's a tiny little weak on the top. There's a tiny little weak on the bottom and we had a large body in the direction of the trend, downwards trend, that is called bearish trend Bob. What's this next bar called? Next buys still bullet is still bearish. But what is it actually called? This can-do would be called a bearish door GBA. As much as the candle is closing on, it's low. There's not much a wick on the bottom. Again, what is my definition of a dodgy bar? It's above that does not have a body of 50% of the overall candle. As you can see, this body is much more than 50 percent closer to 90, 80, 90 percent of the total bar is its body. That's a big bearish sign, as you can see here, probably close to 10, 15, 20 percent of the bar is bearish and there's a big wig on the top. I don't have so much bearish conviction and that's not as much of the bar want to go onto. The next bar, this bar here, similar to this bar, it's actually the opposite. It's actually a bullish though GBA. As much as we have a tiny little bit on the bottom, we do have a fairly large weak on fairly small become the top fairly large brick on the bottom. It's a small candle and it's not, it's not like the scandal over here. It's it's just a bullish, dodgy BOD is not that much strength, but it is a little bit of strength. Next bar, what would we call this one right here? This would actually be called a bullish trend buck. The reason being is as a tiny little weak on the bottom, there is a little bit of a wick on, sorry, tiny little bit on the top, a bit of a week on the bottom. But because the actual candle, the body itself, is worth more than 50 percent of its overall body. It's a little bit higher of a chance to be on the bullish side. This candle here, this candle would be bearish trend bar, again, a bit of a week on the bottom, on the top, tiny little bit on the bottom, but the actual candle is worth more than 50 percent. The body is worth more than 50 percent of the overall candle. Next candle here. This one would be a bearish door GBA, reason being is got a tiny little body and as you can see, the wick we came up above up quickly smashed down. Not the greatest bearish bought to be entering on. Next bar. Be close to 550 out. It's too cold if it's closer to 50 50 yards to call it a dirty buses would be a bare stage where the body and the Whig or about 5250. But I can't tell exactly and it's not very straightforward. So I would define it as a dodge ball. And as we can go on next bar, this is bullish or bearish trend, but the actual body is high more than the wick bearish trend bar again, bearish, 30 bar, bearish, probably closer to a bearish, dodgy bar who got a bullish dg Bar? Bullish or bearish, dodgy but bearish, dg Bar, bearish trend bar, bullish, or bearish trend bar, bullish, dodgy Bob, bullish, dodgy Bob, bullish, dodgy Bob bullish DOJ about bullish trend Bob bullish dodgy. But as you can tell with a lot of these, DOJ Bosnia just signifying no much strength as you can see when we come across here and we start, we should be starting to come down. As you can see, these dodgy bars. We're not getting big trip, big blue bus training on their highs. And as we can see, that's the reason that we're not able to actually get the full trend going. So let me just get rid of these. So as you can see, actually understanding how these, how all of these bulbs work is very, very important. Because as we can see there before, we did see the market trying to turn around, but there was just so many bullish, dodgy Bose's just seek to following a trading range and it's signifying what trying to go up and we keep it in beaten down with trying to go up and keep getting beaten down. Price gets to that level, can't stay there. Price gets to that level, can't stay there. And that's why dodgy BAD specifically are not great boss to enter on and is more sorry, a trading range and can be irreversible. Reason being is trust press tries to get up, get slammed down, tries to go down and gets land up. And it's just not making a trend. And you're not really sure which direction it's going and less of a chance that you're actually going to make a profitable trade. So this does lead on how to read the chart. So as, as we've just done there, we have sort of read the chart so we can see that we kept going down, down, down. So we did have a lot of bearish bearish pressure which started to go up, but we could just see that wasn't much strength that was continuously Dojima after dodge ball off to dodge ball. I'm just going to quickly delete all this stuff and we're actually going to go over it again. We'll start little bit further back and we'll go over each trend and actually determine how we would end to what we would do. So it will read the brass section and read the chat at the same time. And next, and the last part, we'll go over market and limit orders so we can leave all the indicators are like just double-clicking and getting because we're actually just going over the candles run out. We'll go over the indicators that candy was almost important. So let me just start off with, how would a try I did this yesterday. Let's just say this is when I work up in the morning, this was eight to nine o'clock in the morning when the actual dice dot. So the day for cryptocurrency for Ma Tom Scott's at 1030. So the daily candle starts at 1030. So that's always, I want to be on the market a couple hours before and couple hours off. There's always some of the most volatile times. So when I wake up here, this is the area that I work up in. I actually saw, let me move this over here. So this is the area that I work up in and I looked at the price. We had heavy heavy down. We went sideways, heavy, heavy down. And I woke up in this direction here. Instantly my mind and how I'm reading the press section is we're going to have a bearish day. This isn't bullish prior section. We are getting slammed down. We're getting slammed down, slam down. This isn't bullish cross-section. So my initial thought for the day is I'm probably looking for assure more so than I'm looking for a long as we've just had these big spikes down, big spikes down. Not many people are going to be looking for a loan. When I wake up in this area, I actually saw press slammed down quickly and we came back to my white line, which is the long-term average price, as I was discussing in the last video, compared to the short-term average price of the orange ball. So the long-term average price, we've been able to touch it just a couple of times, touch it down, touch it down, touch it down. Touchdown, touchdown. And we just started trending downwards, downwards, downwards. That's how is initially raiding the, reading the chats. And when I started to lock into the project section, I started to zoom in a little bit here. And what I was just noticing here is a lot more bearish trend boss and a lot larger than any of the bullish one. So as you can see over here, this area, there's a large bearish trend off all of another large bearish trend ball. And she can see just in this area here there's some of the largest go to feed bullish trend buzz, not as big. We took 1, 2, 3, nearly four bullish trend bars to reverse one bearish trend Bob, instantly I was thinking there's lot more bearish strength. Then there is bullish strength because it's taking full bars of bulls strength to reverse one of best strength. That was instantly where my mind was thinking. And we started to get some dodgy bars and some Bool to Bool, but we weren't able to break above this resistance. Hope you. Once I saw another bearish trend bought trend by trembled and again, nother, two great big bars compared to. Any of these bodies are all bigger. We did have one big bullish Bob had to DOJ is one big bullish. Well, and I'm thinking, okay, it's due detect three balls to come back up to any type of high. Again, couldn't beat this higher. So we've got slightly, slightly low, high, low, high, low, high, low, high. We got through it for low highs in a row. Started up here, 1, 2, 3, 4. They're all just slightly lower or slightly lost, slightly lower. So I'm using all of these I've got to indicate is telling me I'm even got the boss is telling me I've got the trend from the previous day telling me that it's most likely going to be a bearish day. So I've got all these things in my mind. Tell me bearish, bearish, bearish. I start to see more of that. Another big bearish but closing on its low. Those bearish by closing on a slope, bearish by closing on it. So instantly just in this area here at a great feeling that it's going to be a bearish day just because we've got big bearish, big bearish, big bearish, big bearish, big bearish. And in comparison, we do have some type of bulls, but it's not as strong, not as quick, and it doesn't have as much momentum. Going back for the last few days is a lot of selling pressure. And coming back to this EMA, we haven't reached us EMA and a long, long time being the long-term average brass wants the bolts reach the long-term average price. We will usually turn around and we'll have a reversal. That's how I was reading the day. Now, any entry point would have been great here. I actually got in on it, was this by in here, this one right here. So she got in on this ball. It would, I put my stop market order below here, go entered on this bar and to get down to around this area here because I saw this as a support. Although we kept going low, it does not matter. I took a perfect scalp and I was really, really happy with it. And again, the reason being many bearish bars closing on their lawyers are waited for a big bearish ball once I saw once I saw here of the laws, the load, the load low, low, so it could get higher each time. I took away two for this big bearish bar, which is 1.07, 1%, which is large percentage on that bar right here. I left my mock order in there. Once this bar hit, we went down and we just, we made it down. And I've got out nearest support as just very, very happy with the trade. And that's how we, that's how we have to be trading way. Not only have to be using the trends and how the candlesticks work, but actually, yeah, so yeah, using the trend from previously and applying that to the candlesticks and waiting for the correct candlestick to enter, getting a series of lower highs bank and you just get a nice quick profit. We're able to make a couple of percent in a very short amount of time, which can work out too. Yeah, a fair amount of money. So the last thing I just want to go over is what is limit and what is market orders. So basically with a limit order to what a limit order is, is, is you're setting a limit. Let's say I wanted to set a limit order that when price got to this area here, I'm going to sell. You go into a burka and you, and you put in limit order. Limit order. And what that means is you actually set a price. You put you set a price and you put limit order, and it'll be 18, $12. So you're older, will sit there up here. And it weren't ever get triggered on to price moves here because your order will see in the market. And when someone comes in, they will buy you order from you and you'll be entered into the bucket. So what a limit order is, is meaning that you think Press who come to, up, up to this direction and it will start to reverse. So what a limit order is, is you actually expect for us to come to a certain level and reverse. That's not usually how I trade and I don't use mock orders and I do not recommend begin as to use sorry, limit orders and I do not recommend began as to use limit orders. It because this is a much how hot a way of trading already begun. Is it hard to discover where a good trading area is? And a limit order is basically saying, I know exactly where the area is and I'm going to put an order there for beginning. It's very hard to determine if this is going to be a resistance of support. If we're going to break through, If we're going to do consolidate, if we're going to write back down, it's just not sure and putting a limit order here would be very, very rough. And if you were, it's very hard because even here, you think process is going to come up. We don't and we just continue to crash down and you miss out on many percent. How I recommend everybody to trade is actually using market orders. So what a market order is, you actually buy straight, straight away. So let's say you're sitting here and you think as soon as he spoke closes you think yet now's the time to to to enter. You go into your, into your Broca actually go mockup order. And I just type in the quantity of eighth. I just type in yet, I want to go by and assume as soon as I click long or short, It's just going to enter, it's going to boss straight off the book here. We're just going to enter reside, put a limit order. I can actually set the price. Let's open a USD loan at 13403014. And, and you can actually see here, can you see right here that I've actually got a limit? You can see it says the word limit, but a limit order of 10, a theorem at a price of $13,040. So what this means is when price and if price was to come down to $14,340, my price would be executed and now Mott would have, would be going through. What I can do here is actually click the xs, cancel my order. And if I was to buy at this price right now, I'd go market. I'd go ten a theorem and I'd click Open short and instantly I would be in a position. Now what was I telling you guys before about you want to be entering when this mock-up momentum in your favor. When this mock-up, when is their market momentum in your favor? I'm asking you this question. Is market momentum in your favor when there's a bearish door Geebo, or bearish trend bar, which is more obviously a bearish trend ball you want to be entering on a bearish trend, Bob, why? Because you have a larger probability that the bears are going to continue in that direction. As you can see from this example, there is more bearish trend Bas. There are also larger than any of the bullish trend bars in the lost. In the last 52 balls that we were talking about. This way, more Barabbas, lot stronger, many more and less. Barry, Barish, dodgy, pause. The direction. A high probability is going to be down. Now we have to wait for bearish trend bar. And this one specifically is great. The reason being is there's the wick, is that small the entire body is baton 98% of the entire candle, which signifies a crazy amount of barrister, as you can see here, tiny now the way that's another 95% of the entire canto is Baryshnikov. And that's why once I saw this candle, I'll go excited. And what I did is I actually clicked Mancha order. I've got in when I saw the Irishness and I got in straight away and we got down. Rather than leaving a mock limit water above and, and expecting price to come here and perfectly turn down. That's not what's going to happen. When you're a beginner, you need to White, need to understand what's happening. White for all of these can influence levels. Loa loa, loa loa, loa loa loa loa. Lots of Irishness, not many bull bars taking full bull buzz to reverse one bed by getting a massive Barabbas closing on. It's lower. That's the time to hit mock-up order. And you want to get in when the strength is at its strongest. Because when you scalping, you want to be quick in and out, in and out within an ala, you make few $100 to a few thousand dollars. That's all that you can OS for. You really can't ask for anything else. So I really hope you guys enjoyed this lesson, is actually being really, really informative and going to be one of the foundation and groundbreaking lessons moving forward, especially understanding why we need to enter on bearish and bullish trend boss and why they're much more important than DRG buzz and especially entering a mock orders. I just like to thank you guys for tuning into this lesson. And I hope you enjoyed. 9. Lesson 8 - Indepth Analysis of Supports, Resistance, Channels, Trendlines and My 1-1 Measured Move S: Hello everyone and welcome to lesson 8 of trading Crash Course. I'm glad you guys have made it this far as I've been giving you a lot of great information, this lesson is actually going to be a bunch of information vessels. We're going to go over my one-to-one measured move strategy, which I nearly every single day the markets and it's actually my most commonly used strategy. Next, we're going to go over an in-depth analysis of support, resistance channels and trend lines. In this small little period here, we can actually be able to go through all of those examples, will actually be able to scroll out and make a determination of Western entries, of Western exits should be and exactly how to determine that. So let's get started. The first one I'd like to go over is the one-to-one measured moves strategy. So if you guys remember, in my last episode, we talked about bodies of Candace, the open of a candle, the clothes of a candle. If this bar is a trend bar, if these bars a dodgy bars, why they don't do bars? Because the wicks are a lot larger than the actual bodies of the canvas. So when we're talking about in one-to-one measured mover, actually talking about the bodies of the canvas. When I'm talking about a one-to-one measured move, actually use this tool here. And I measure from the bottom of the candle to the top of the candle, or only if it's a trend bar. When we get m, We can also here we get a series of trembles. So we get a large trend bar opening on its low closing neuron, it's high. Then we get the next bar opening on its lawyer and closing bracket on its high those basically no WIC, which is a second order of strength. So what my one-to-one measured move strategy does here, every single time it gets a measuring tool and measures from the bottom of the screen candle to the top of the body. And now since we had to trend bodies in a row, we can count them both together. So right here, this square represents the body of these two candles right here. Candle won and candle to. This represents now my one-to-one measured moves. So this is now one. And add to get a one-to-one, I move this box to the top of its body. So what I've done is I've made a measurement from the bottom of this can-do to the top of the body of this candle only the body. I haven't included these little Wix. As you can see, I didn't include that little wick, but it did come through here. So didn't include this little weak down there, didn't include that tiny little bit on the bottom. Just the candle bodies extended that out, which is what I call the one to one. This is one. This is the second one. And now I've got a target. So I've got an entry. Once I see two blue bars closing on their higher, my entry point is as soon as we go slightly above that high. And that's what we explained in previous episodes. So I would mark it execute. I would go into my order book and I would go mock execute as soon as price goes above here, which it did on this candle. This candle right here was our entry candle. So that's our entry. I would ask stop b are stopped was below the previous low, the swing load which was here. So I stop was below this slow below this, below this week. We had an entry up here and we have an exit at this level, which was actually a perfect level. And our took this trade this morning. As you can see, as soon as we got to this one-to-one mission move where the big DOJ candle down, it was still bullish, but it means we've got to this price and we quickly moved down showing that there's a lot of selling, a lot of selling, a lot of selling. We did go slightly through the price can't break above. Congress, tried to go up through the US Congress too much above. So that's how I was very happy to get out at this point. Could've made tiny bit more. It was basically nearly a perfect entry and exit. The price didn't go much below very slightly 0.2%.3. And then we go to two to 3% gain on this. Yeah, 3.8% gain, which is quite quick because from my entry candle to my exit candle, the total time was one hour and 45 minutes. So an extremely quick trade for, for nearly 4.5% 3 after you include phase. So that is my one-to-one measured moves strategy. I just want to go over that exactly on these three candles with you. The reason I'm doing on these two candles specifically is I woke up very, very bullish this morning. This this is the area that I work up in and this was everything that happened last night. After seeing series of ball ball's coming through. We've got support support, also another support. We had a bit of a decline in here, but we stayed above these levels. And then we had a very quick series of blue bars, 1, 2, 3, 4, 5, six months or so. Those six bull Basel got quite excited and I thought this is going to be a bullish day. We've got support support, support on the left. Let's wait for a one-to-one measured moves strategy. So I waited, this was 11 o'clock, the open was 1030, which was on this bar right here. I wasn't comfortable getting into a short, but I waited for the long. I waited for two Kendall conformation. So I missed out on an initial 2.98% 1. That's completely fine with me. So I missed out on 4% of the move. But the reason that I'm happy to do this is because I have a much higher probability of winning when I'm entering on bull buzz and closing on there. Hi. Plus I've actually using this one-to-one measured moves that gives me a perfect entry and exit point. So as we'll do again, let's just do that each bar individually. So firstly, I have one bar from the bottom of the bar. Let's draw it to the top of the bar. So we're drawing the first body of this candle. Now let's draw the second body of the second candle. The body starts down here and exits down here, as you can see on the left, can you see that the line, lines up? There we go. So there these two bars, this bar and this bar, they're them to connect it. And now let's do the same thing. Put it on top. We put the first bar on top, slightly off. As you can see, it doesn't line up exactly. Good. No, put this one on top. Same thing, same one-to-one measured move. We've just done it separately. So we've measured this bar out with then measure disbar out, put them one-to-one entry on disk on this candle here because we went slightly above the higher and we sell up just up here as a one-to-one measured move. It's actually gives you another example of a one-to-one measured move, which would have been a good opportunity. And that's actually, I'll show you multiple. So here, let's actually go with this one in here. So we actually had support. So came down for our low we had support, support and support, which was fairly bullish. Then we had 123 blue bars, basically all closing on their higher. So we had one with a little bit of a wick, but again, it's at BU, bullish trend. But the reason it's a bullish trend bar is the body is more than 50 percent of the entire candle. The second bar here was a bull trend bar, tiny little weeks on the top and bottom. And the third bar was also a bold trend bar, tiny little work on the bottom and closed on its high complete Hi. Next can do here is still a polish bar, but it's probably closer to 50 percent of the overall body is the entire candle and the Wix account for a little bit more than 50 percent of the body and when it's a little bit off and you copy a 100 percent sure. I just don't include it. So I'd say 123. These three bodies are the candles that I'm interested in. So let's do a one-to-one measured move of these three bodies. We start off, we don't include this wicked the bottom. We start off with the opening of the can-do. Again, we're only interested in these full bars, is full big bars in here, the bodies of the canvas. So we start at the bottom of the first candle. We move up to the top of the first candle, that would be the first bar, since it keeps extending out with another bullish trend bar, we're going to extend to the top of the next bar. And since we had another bullish trend by, we're going to actually extend the top of the third bar, as you can see. So we've, first, we've taken the measuring point from the bottom of this first bar here. The bottom of the actual bar. Not it's in the body, not the entire. As you can see, we start at the bottom of the body here, and we measured to the top of the final body. If these two bars in here say you weren't able to see them and they weren't Ball, Ball trend bars are one-to-one measured move would just be based on this bar here. But because we've got a series of 1, 2, and 3 were actually able to combine them into 1121 measured move. So there we go. We've got a one-to-one. Now what we can do is since we've got that, we can go there, we can control C and control V, which is control, which is to copy and to pace. Now we've got an exact copy of this. Now what we do is we put it on top of it and we get a one-to-one measured move to, as you can see, bright there is a perfect one to one. And then we come across and we look at which process lines up with, and it lines up with over here, which actually would have been a good trade. Because in my mind again, always thinking about supports and resistances where it can price have a ceiling and where can it have a floor? In this area here, I see this as a resistance. We weren't able to beat above this price here we try to come up, we came down a fair bit. So I would say this price in here is a resistance. And as you can see saying that this is a small-time resistance, it is perfectly goes the resistance which would be a great selling point if you did enter down here. So first we got the entry at entry candle would have been this candle right here. The reason it's that candle right there is because again, we're going 1, 2, 3. Soon as it goes above the bullish, bullish bar, we enter on that candle. There. We go in. And we do the one-to-one measured move. So our entry would be on this candle would get an entry in here as stop again would be the same, would be down here. And our extra exit would be up here. And nearly a perfect one-to-one. So as you can see this, this strategy actually gives you a great entry and exit point and tells you exactly how much you need a risk, how much your reward is. In the next part that you need to figure out is the probability. And that's where buying on these bullish trend bars, especially when you're going long, is going to be the highest probability chance and is why I take these trays. I'm looking for high probability because I'm in the market all the time. So I'm looking for strategies that we're going to maximize that. So as you can see, very, very good. I'm actually going to show you a quick bearish scenario. We can actually show you this one here. On the left here, just for the same type of analyzing. We can actually just show you a one bar, just we can show you well one bar measurement. So let's say this morning we saw there was a bit of a channel and we thought the channel, we're going to come down and test near the top of the channel. You could do a one-to-one measurement of this candle here, just the singular candle. You don't even know that these candles are formed yet. You see an incident big move down you think. Okay, we're probably going to come down and test the top of this channel where the process started. Since this is a bearish trend bar, a big bear bar starting near its high and exiting rod on its flow is a signal of a high probability, bearish chance. So let's take a one-to-one measured move. We start on the bearish side. We're still measuring the candle. So we start at the top of the candle because that's where open and bearish moves downwards. So we end at the bottom of the candle, and that's, that is a measurement of the candle right there. Right here, is like that is the measurement of the candle. We don't include this little wicker, we just include this bread body, and that is the candle that I've measured out here. So what we can do. Is, we can do that and we extend it from the bottom of this candle right here. So we actually, I put it right there and as you can see, we've done an extension, one-to-one extension. The first one is to there. The second one is down to here. And as you can see, we did a perfect one-to-one, actually went down. We hit the target on the next candle, we reverse straight back up. So as you can see, this one-to-one targets are very, very, very useful. That's just a single bar. We did show you multiple and another multi bar in here. So you can see the one-to-one measurement is very, very useful, or just showed you one bar, I'm actually going to throw you, show you a three bar or even a two bar because I noticed that now this buys closer to a dodgy. So usually we don't include it. We can show you one in here, one more signal for the one-to-one measured move. So we stop when we're doing the one-to-one measured move, only measuring the bodies again and imagining the bodies of candles. And we're only doing one-to-one measures on Canvas that a trend bars. So we're only doing on bearish trend, Bob bearish trend, Bob bearish trend. But as you can see, we've got a series of three bearish trend bars in a row, which is a sign of bearish strength, and gives you a higher probability of putting a position in the bearish side, on the bearish side and making money, again, we're looking for high probability plays on our side, even if the risks of reward is one-to-one. But having a much higher probability of winning, which in the traders equation works out a lot better. So here we're going to do one-to-one measured moves. What we're gonna do is we're going to start by the top of this body, moving down to the bottom of this body. Since the second body is also a bearish trend, but we're going to extend it again, start from the top of the body to the bottom of the body, not worrying about these little wicks. That's the second extension. And then we notice, hey, we've got a third extension because the third bar is a bearish trend bar. So we start from the top of the body and we go down. So let's do that right now. I'm gonna get my tool here and start from the top and extend down to the bottom. That's the first one. So in the one-to-one measurement, now we're going to Control C and Control V right there. I'm going to get that and extend that exactly onto what we've already drawn. As you can see, that's the first 1121. Okay? That's the first one. As you can see here. It's near. Exactly Perfect. That's why usually what I'll do is when I do the one-to-one, I'll usually put my price just slightly above, because especially in these ones where you're first one is 8.5%, especially in, in a 45 minute period and a 0.5% quite quickly. Next, 8.5% down, closer to 9%. As you can see, this one-to-one strategy works near perfect. We missed out the bottom of the price by probably 0.5%.5, 7%, we nearly hit the exact target. We were, had an 8.5%. We reserved 25 percent off. And as you can see, very, very useful. So we've done an extension from the top to the bottom, are only counting the bodies of each candle. And we didn't extension a one-to-one. And now we've got a target. So we would have, once we've seen this. And next entry point would have been on this candle, because we passed. And pass this one-to-one area just with this little wick here. That would have been that entry candle. We would have gone up slightly at exit point, would have been above here. As soon as we get above this area here, it's saying not our trade is invalidated. So I've got an exit point. This is my exit. Oops, capsule. That's my stop. We're going to put exit. That's my stop. That's my entry candle. And here's my exit. So as you can see, we would have entered on this candle here. We've actually would move down. And and if you're watching, would've had a limit order sitting right here at this price, but watching it come down to here, would it quickly mock executed and just go down? And as you can see, that is very, very good strategy. If we entered on this bar and we got out on the exact ball, that is a 45-minute trade, a 30-minute trade, and in a massive amount of money. That's why lot this one-to-one measured move. The reason being is it has such a high probability chance of working out, again never in stock market and the forex market and commodity market, cryptocurrency market, there's never going to be a 100% chance of winning. It's just not going to happen. It's unfortunate. That's the way it is. That's why these markets are uncertain. And not everybody is able to make money and it is hard to make money is because because of these strategies, a hard to maximize and how to actually use in real time. The strategy is very useful when actually one of my most profitable strategy. So you guys, I really hope you're taking a lot of notes here because this is a strategy that has made me the most amount of money over the long term because it's such a high probability play. So I hope you guys really, really understand all that. I've gone over that quite in depth. And we get you're going to see that a lot more in the future. Because a lot of my plays are actually going to start off with one-to-one measured mirrors, because it gives me such a good entry price, gives me exactly where to enter, exactly where to exit. And it gives me a fairly high probability structured play because unarmed going in some type of direction of the trend, because there's been a large amount of bullish signals. Bots are also going to pick up on this. And I'm going to try it in that direction. Now again, with my measurement strategy, I use a lot of things like resistance channels, supports, and trend lines. As I was saying, explaining before when I had this one-to-one measured move here where I measured out the body's it and I extended it out. That was perfect. That was a level, what are called confluence with a resistance level because we try to get up to here and we failed the first time we came back down and try to come into this area is going to be a level that we could struggle with is never a 100 percent guarantee again, could struggle with. And it's going to be a level that I'm just going to get out with and it's going to make me a profit. Again, confluences resistant. So going more into support and resistance, just looking at this chart here, can anybody point out some resistances and can anyone point out some supports? Right now it's actually probably easier to point out the supports and it is resistances. But nonetheless, there is supports and there is resistances all over this chart right here. Let's first start with the support. Looking at, starting off over here, looking at this bar right here. That's a large dodgy bearish Bob. Large dodgy bearish file. We've got huge weeks on the top. We've got a width of how much percent will go to wick of three and at 3.5% on the top and 5% on the bottom, meaning very large, dodgy bob. Quickly up, quickly down. Not able to really make much price structure. This first level of support here with this large parks down quick little bio means there's a lot of bias in this area here. We came across a second time. We came across who came into this week area. As soon as we came into any of this area down here, we came in. We didn't last for a long, instantly back out of the area. So here is definitely a very interesting area that I'm interested in right here. Because of this large WIC. As you can see, it extends over to this point here. Let me just make this a little bit less harsh on the eyes. Still see the weeks there we go. As you can see, landed us support. We remove that WIC price, move the quick 5% up those a lot of people buying in this area, price came back to test it again. For the second time, was not able to break it. We came straight back up. Then we had another big bullish candle where we actually try to come back again. Now, we still supported third time support. Now it's time for a move up and we moved quite quickly up. Once we came up, we came back down trying to come back and test this support area. If if this was very, very bearish, we were just broken through it. As you can see, that wasn't a breakthrough. We actually supported again off, there's another level of support. And as you can see because of that would go to a series of 1, 2, 3, 4, 5 bull bars. Again, they're not all bullish trend boss, but three bullish trend bars to dodgy buzz is a sign of strength. 55, 56 Polish balls in a row. This one's another bullish DOJ EPA. Because of that, that's a hash sign of strength and just showing from the left is support area. As you can see, I'm just using this, this Wiki or from this one candle extending that across because you always have to have an area. It's never going to be a very, very thin exact price saying exactly at $5, it's going, you know, it might be between 5.50, $5. You have to have some type of percentage range there. As you can see, that's exactly what happened to you. Where had that range and we just try to poke into it when even able to poke into it. And we came straight up. Again, this here is a very high level of support for me and it would be unleveled that I'd be interested in if this starts to turn bearish, this would be the error that I would need to see another level of support. And if we didn't and we started to break through it, this error would still be great on my chart because we would actually flip as a resistance. So what would happen is say this chart did start to go bearish 0 quickly. Draw it out for you. Say we did start to come bearish and we broke down under this level. Usually will happen. Price will come retest this area before it breaks and then will really continue down before with a really strong amount of pressure. That's usually what happens. We'll come down, we'll come down, we'll come down in this area. If we're not able to support, our foot will break completely through it. Once we break through it, price will come down and come back up. We have the top press, press this area again. We'll test it. We'll see if they're all sellers. And if there are facilities, it will come a resistance to support comes to resistance. Actually, it's what we call an SR flip and it is quite common. That's why support and resistances are so important. Because even though support right now, resistance, it can become a resistance later. So there are multiple points that it actually becomes quite valid. So always, always keep my support. Same resistance is drawn on the chart because you see them SR flip, support and resistance flip or resistance and support flip. And it becomes very important because you can trade it the opposite way. You see this, you see it come down, you see a really quick move. So you see really quick 5% moving, you go, I'm not really sure to get back in. And then all of a sudden you see some bullishness come back into this area and you go yet, now's the time to get sure. And then all of a sudden you get a really quick move down. And that's usually what happens, especially with these SR flips. So again, let's just say this is our area of support, right in this area across here. Let's extend that out. As you can see, that is that area of support in this job. Now next, let's go to an area of resistance. Can anybody see an area or resistance of jump specifically see one great area of resistance. So let me point it out for you guys. This part right here is our resistance zone. What happened is price came down from the left, then we started to go sideways. We went up and down. We went up to him it down and made a bit of a triangle, weren't really able to make. Then as soon as we reached the apex, we get a breakdown as you guys remember from previous episodes. Oops. Don't want to delete that line. Which is you can see what we had is we had up, down, up, down and then we broke down out of this area. So this was the lost resistance level broke down out of a, this is first a support. As you can see, support price came down, supported, short-term support not broke down straight through. What have we talked about before a support becomes a resistance. Let's extend this level out because if price goes between these two processes, we can extend this box out. Let's extend this box out. Just start here. That was the first box anywhere in this era would have been a great. So as you can see, that works perfectly on this chart. We first, we came up with that little bounce. We came into this era straight down. It came into this area straight down instantly just off the seeing this section or this first album, you know that this box is quite significant and that we're not going to get much above this price, even if we do, we might come slightly above as you saw below, as you saw here, we just came slightly above support. Here we might go slightly above resistance. These lines are drawn perfectly to say, it's going to say exactly at the scholar exactly at that sent for exactly at this price point. These areas are, let's see what percentage error this is. I'm assuming it's somewhere between five. There we go. It's a 6% area, 6% error. Again, we on the larger side. But again, you can't pinpoint an exact level of where this is going to happen. And that's why these become important. Because what I'm doing is once the price came down, had a quick move up. And now we're starting to trade within this box in here. Starting to trade within this box. And when we get a breakout of this box, we're going to come down, we're going to retest the box and we're going to come down, as you can see here. We came into the box, came in for re-test, instantly getting more rejection, more rejection, more rejection. Once you start to see this rejection in here, that's a perfect time to take a short, any short on any bad about closing near its low. This, this odds closer to a dodgy bar. That's our first bar, the second bar, third bar, fourth bar, fifth bar. Any of these bars in here would have been great to take the shore even disbarred down here and get out around this area, around that support area. As you can see, we can even just extend this over a little bit, as you can see, now we're starting to get to the top or top of the range. We just poke through the top of the range. We came down, we poke through the top of the range. We came down with trying to poke through the top of the range again, you can, as I said, this level is just burst to be a level of some type of assistance. And as you can see, the first trade would have worked out. Now once we go on to the third, second, fourth, fifth trades, again, it makes it harder and harder to pinpoint. But this first trade in here, although it was two o'clock in the morning for me to trade it, I would have had these had these together, had these together and being looking for that trade in there as soon as I come into my resistance level. Again, resistance level doesn't mean exactly at this price point. That's my resistance. And that's all that I'm going to trade because you can miss out on a lot of these trades in here. Although you might get one, you're waiting all day for this, this little trade and he not even sure that it's going to work out. Where is this? It's a lot higher probability all in this area, all in here that we're going to get Some top of retest and a rejection from that resistance. So as you can see, support and resistance can be shown on any child even discharge is probably out of for some people even pick up a support and resistance. But that is sort of why we're doing it. Because supports can be pointed out again, doesn't have to be perfect. Just get in series or support, support, support, support, support. Just press just keeps again, this is much more on the bullish sign and that's why I said this resistance. He has probably starting to fade. Because if we're getting so many bullish signals here that I think we're going to stop continuing upwards. Again. We've just got 123456. The price just keeps making high, low, high, low, high, low, high, low, high, low, high, low, high, low. That's a bullish sign and you need to be thinking about that all the time. Next pot want to go over is channels and trend lines. Channels and trend lines actually go hand in hand because essentially this, this is a trend line right here. But if I draw a second trend line and put it parallel, then that essentially creates a channel. So let's start with trend line. As you can see here, you basically just need two points for a trend. Well, I need is two points I can, I need to extend from the first and on, need to meet a second. Once I've got that, I can draw the line and then it can be extended from there. Let's use this. This is an example. First I'm going to start with my trend line. I'm going to start from the bottom of this week of the candle, and I'm going to extend it to the second. The second week are here. As you can see, I've got a trend line or started at point a, and I've got to point B, just extended it just a little bit further, just to show there's the support. We've got point a. We've got point B, simple rep. Now, can we make a point C? Can we make point C? How would we make a point C? Any guesses? We would extend this line out. We've got B, we need extend out to point C. Now we extend this line out exactly. So all I'm focusing on is those is B and I'm just extending the line out. Not even worried too much about anything else. As you can see. Point eyes to touching. Point B is through touching. And now we've extended out and all, wow, we've actually created, we've actually found a point c. We've hit this trend line again. As you can see, these two, these two touches it be insignificant. We created a line out of a, a to b and all we've done is extended, extended out. All of a sudden price came right to this line, rejected and we got 1, 2, 3 bullish trend bars making a one-to-one measured move, all closing on their higher after touching the sea level trend, trend. Now going into before, we've got levels of influence. We've got one touch through touch, three touch. Now we've got a one-to-one measured move of threes, three candles. Where does the one-to-one measured move? And it actually ends in a resistance area, that box in here again, in that resistance area. In this resistance area, we've got levels of confluence. We've got a one-to-one legend move. We've got it landing on a trend line. We've got bullish, one-to-one trend buzz. We've got a resistance level where the level is about to exit. As you can see, where Santa wear some to confluent with trying to put all these puzzles together to actually create the puzzle. And in the end, profit, as you can see, Trend Lines is trend line has become very important. Only need two points, I, lineage a and B to create a C. Once I and I just extend that out, I don't even know that sees coming, but I extend it out. I leave it there and I see all my god price came down. I don't need to entry here a C 1, 2, 3 bullish bloodstream bars exiting on their higher. Once I see that, I see Dan, We've hit point C, We've hit for this is the fourth support, fourth higher, lower. We've got three trend buzz entering on their high OK and make a one-to-one measured move. That one-to-one measured move ends at this high, which would be a perfect level to exit. You just getting so many levels of confidence in you just have to take that trade. This is what needs to be going through the processing of mine before you're taking any tray. This is the most important thing you need to be thinking. You need to constantly looking to the left, trying to make supports resistances, connecting lines, trying to make channels, trying to make trend lines. Again, we can do the same thing, we just leave that here. We do it on a shorter term timeframe. Let's just say we wanted to connect these two lines. This one and this one. We start there, we've got a and we've got B. That's probably not an amazing example because we don't always have to go off the Wix. Let's just say I wanted to connect this high. Then we came down and I wanted to connect this guy. And then we came down. And it's put a trend line connecting B. We've got another B. The reason I'm doing this is we've actually come up. We made this higher. We came down, we came up, we met another high, we came down. B. Can we extend that out? Holy moly, we've got a point c. We've actually extended that out and we've got a point c, as there's no trade on this yet. There's no trade on this point C, we've just pointed it out. But we see it's coming to a resistance point. That's one Confluence level we're seeing. It's a third touch of a trend line. That's a second confluence level. Now we're starting to see bearish trend boss and exiting on their lower, we're seeing 1, 2, 3. Basically we could nearly, nearly do a one-to-one measured move of that and then extend that down. As you can see, we've nearly perfectly came to that price and 10th up one-to-one measured nerve target. As you can see, we're starting to put together confluence points. And this is the way need to be thinking about putting supports, resistances, trend lines, channels together. Another one, we could even draw a channel, many, many channels in here. This was really great example of a trend line a, B, and C. Just again pointing that out. Another one would be actually drawing this right here, would be OK, cool. A channel, short-term channel. Look at the how the process travel. You've got the price traveled. We came up, we came down, we came up, came down, we came up, we came down and we basically traveled within this little square. As you can see, this as a channel. Let's draw another channel. When we go to break out of the general, can we see another channel? I can actually see one up here. Just during that in there. Very thin channel. As you can see, price up, up, up, down, up, staying within these process areas, then I can actually see another channel here, just slightly thicker coming across this way. But going just like that. Press came up, press came down, press came up, press can down, press came up, prices came down. Just drawing all these channels, trend lines, having all these that you'll dispose who can give you levels of confluence, specially support resistances, trend lines, we can even extend this out. Just have supports and resistances. They don't need to be perfect. This can't exactly come down to this level or come down to exactly this line and buy it. But as you can see, it's, it's another high load, another high learning and getting too big bull bars. Closing on the high, you've got another measured move, target, measured move, go from there. Control C, control V. You've got another trade. He, you've gotta take it. This is probably a 70 to 75 percent trade. You've got to take it. You've now you're selling and again into resistance, into a resistance here, That's fine. In-between these two boxes, you having multiple series of bold trend bars that it also enter up here. So you've got this one-to-one measured move the ends exit, tear, this one to one measured move that also exits within that price target. As you can see, I've got one the exits here, and I've got one that's exiting higher. But the role above these process, again, we've got multiple levels of confluence. You've got trend lines telling us on the IDA different levels of one-to-one measured moves, different trend lines, different channels, or being very, very bullish. As you can see, like this trend, this channel right here is extremely bullish, being that tire for so long, that does not happen. Where on the left here can you see a tight channel lock that icon? I can see a channel here, this bearish one, but it's not that tire. Again, it's that it's that thick compared to this thick. Look at the thickness differences, not many channels like this, instantly seeing this getting a one-to-one measurement of also having that child.type channel. They're extending it out. Just so many levels of confluences. What I'm trying to get across to you guys and understanding, as you can see here guys looking to the left just before I'm going to end this video, just to point out, again, this level started off being, being just this part in here, being a resistance, as you can see, extending it out that was resistance. But the reason I had these two levels than starting then starting it is that's the resistance level. As you can see now coming across to here, started come up, down. We had a big bullish by instantly rejected before it looked like a bullish bar if you looked at it before, again, getting rejection, I'm expecting some some crossing over event to come down, even if it just supports here and then goes higher, that's much more highly likely, Johnson and just completely smashing through the prize. That's why I'm showing you this guy or this year. And I hope you're really understanding and fluence levels and actually understanding the one-to-one measured move, which is the main strategy that I use. I hope you guys understood and going, going further on this is going to be very crucial for you on the standing. Hope you guys enjoyed and see you in the next episode. 10. Lesson 9 Dollar Cost averaging to exit 80% of your Trades Breakeven Or In Profit: Hello everyone, and thank you for joining the trading crash course. This is going to be Episode 9. And today we're going to go over dollar cost averaging in terms of investing and more specifically, in terms of short-term day trading. Dc, a dollar cost averaging and how you can actually profit will break even on 80% of your trades. So I'm going to show you a very specific strategy on that. I want to thank you guys for joining this fall and keeping up with all the lessons. It's got to be very, very valuable and it's going to be very ideal for all of you. So you can keep building on your knowledge and actually apply all of this into the real-world. Trading. As you can see, the trading ticker is running. We could take any trade at any moment. And the goal here is to actually understand points in the market where we can make some money and that we decide that the probability is in our favor. We make a risk and reward and we go from there. So let's start off with dollar cost averaging. And what actually dollar cost averaging means. What dollar cost averaging means is in terms of long-term investing is that you're averaging down as the price slowly trickles down, you just continue to buy. Excuse me. Let's just say that you put in a strategy where every 5% that a stock drops, you just continue to allocate X percentage of your portfolio. So in this specific example, I'm going to actually go over a long-term shot, and this is going to be over a theorem. So let's see. In the long-term, you can see a theorem had a very, very, very long uptrend. If we actually scroll in here and actually watch what really happened here. Back in early 20, in 2019. Actually had this big ride up into $360. And then we had this massive drop down to nearly $100. Then we went to 200 to $287 and another drop to 80 dollars. Now let's talk about a dollar cost averaging strategy. In this term. Dollar cost averaging strategy would be every time we have a dip, something like here, you would accumulate in this area. Every time we have a dip, you would accumulate in this area. Every time we have a dip, we would accumulate in this area, dips down. We would accumulate, we would just keep accumulating as where we are dollar cost averaging, averaging on the way down Abdullah. And on average it will lower our price and actually get us a better average price in the long-term. That's why a lot of people don't actually invest a 100 percent of your portfolio right at the start. Do it in increments of 20 percent, another 20 percent, another 20 percent, another 20 percent. And overall though eventually have 100%. And the reason they do this is because they have over the long-term, these assets will continue to rise. As we can see, Let's just say we had a high of $365 and a low of eighty-five dollars around the middle, you can see that area there is somewhere to a $120. Let's say we got in an average price of $220. It's good to 25 because it's a little bit more accurate. As you can see, they'll do another 50 percent would do from there to there. As you can see, the 0.5 level executive lines up with two to 5.51. There we go. So that's actually perfect. So let's just say we've got an average price along the way down, we bought fully but an average profit, 225. As you can see in a short amount of time, this is the early 2020, it to the price that we're going through right now, as you can. So it was $225, radio to 1000 was scrolling up close to $2 thousand. As you can see here, we've actually hit a high of over 2000 dollars. And if you remember, average price is 225. That's the, that's the reason for dollar cost averaging is to actually keep accumulating on the way down. And that's actually what I do, do in one of my strategies. But I use that every time I make money in stocks, I'm actually looking to put it into my savings and long-term gains. I will actually use this strategy where I find companies or stocks that I'm really interested in and that have a very long-term great growth and a great outlook. And what I'll do is I'll just slowly continue to buy them every time they did because I just know I'm getting a bit a bit of cross on every single company. So let's go back into this area. Yep, Perfect. So that's dollar cost averaging in terms of more of investing, as you can see now, we've flipped over to the 15-minute shop for on a daily chart. And we will talking about years. Here. We're talking about couple of hours from six o'clock in the morning to nine o'clock at night. What a short-term dollar cost averaging strategy here would be. Say, you found that some type of average price in him. And he felt like that the process shouldn't go too much below this process. So what happens is press came into here and you bought, you bought your first, first 1 and put a law in here. And you dollar cost averaging, which means on the way down, you're going to buy some more drop-down. You sort of big Bobo. Poor little bit more on here. Came down again, retested. You said, yep, I'm going to buy a little bit more that they've got three entries, each one Loa right now if he had your position at this by your average price, if you both equal lots, would be somewhere between here and here, you'd actually be at a loss. The average price would be roughly here. So write acids, the price is down here. It would be at a loss. What we do, why we do this is because we say that we understand that the price is not going to go to fall below this price because it's a very heavy support level. Now once price gets here, averages out and we've now got an average price of roughly $1525. Now what we do once we wait for a nice bullish push, you get a bullish push. We get I support off of the breakout here. So this is right now is the level we go to break out above the level. Now we come back to support. As you can see, this is the breakout. Breakout came back supported broke out again. This is that exit point. As you can see, if we exit out at an average price of up here, we lose on fs by a first by was here. We take a loss. We take a profit on our next buyer, small prefer, and our next bar. And then we take a nice prefer on our bottom by. And as you can see, we take one loss and we take two winners and two decently sized windows. This one and that one are easily going to cancel each other out. And that one's just pure profit. And they can see that it didn't actually half the time the trade. A lot of people think that they have to time the trade. This is why I actually like doing this strategy in the short term, is because while we're running on the 15 minute or the five-minute shot, It's actually very, very hard to pick exact pivot points. Now when you're trading enough, you will start to start to pick them. But sometimes it can be close to a 50, 50% chance of there could be on one more leg down, maybe one to two short legs down. And if you're not comfortable with the process going against you slightly and then read, excuse me, averaging back in, then you're not going to be comfortable. You're not going to be making profit. So as you can see, are so nice pivot point here. We didn't know this was a support, as we talked about in the last video, this was could have been an arch support, a nice week. We would never know we could have start to turn up from this point. And you can never take that probability. You just don't know in the market was going to happen at that exact point. We don't need to know is that was what I'm trying to explain. As it comes down, you have an e by again, it comes down again, you buy again, you sell out an average price, you have a profit. You've actually ended with an overall profit. So this sort of leads into how you can make a profit or break-even on 80% of the trades. A lot of the time, what I try and do is I have an overall size. Let's add trading. My total size of 50 thousand or a $100 thousand, which for 1% of a $100 thousand. So making $1000. So my day is to make a 1% per day. And that would be $1000 a day or $500 a day, which is an absolutely great living if that's what you can start to do, especially coming out of high school or the university. So you can actually profit the break-even on 80% of the trade and that's what we're going to continue to share. And that's why dollar cost averaging is so, so, so good. Let's show you another example here. So let's just say, let's actually scroll in here. We'll put this here, That's fine. Don't really need it, but looks fun. So we'll scroll in here. Let's also say right in here. Let's say you bought the top. What a nice big move. Nice, big bullish move. Like after 123456, Polish bazillion row 1, 2, 3, bullying being bullish, trend bows, the other being DOJ buzz, but three blue strand balls in a row. And we could get a measured move up from here. So we get a measured move targets. So we're up to here we go, and yet we can't get long. Let's get long. What do we do? We see the next bike, big boo-boo bar in here, right here, we get long on, we see this bar here. We would get excited and our entry bar is right here. As I say, it has to go above the bath Enter. You can see this little weak parks above the bar. And we get out into, that's our first entry. Entry number one. That's entry number one. Let's just say then we have a dip, we have 1, 2, we get a dip by another one up here. That's our second entry point to you didn't know it was going to continue perfectly up again, where would I stop loss be? A stop-loss would be below the lowest swing, then it lost swing, which would be right here, regardless of where we bought. If we boil up here, the last swing high, it's philosophy I is here. We buy up here with the last swing higher. The last swing high is still here because we haven't made another high once we make another high. And you buying in here, the next pivot point is here, and that's where your stock should go. But we will go over that in another episode. So when he oh, sorry. So you bought your second entry. You've got a second entry in here. Stunde that second entry, first-century, second entry popped above the bar. We get we hit, we hit, now we hit, we hit our point right over here. Get that exit point. Perfect. So let me as much as we got light and we only had not much percentage in the bile left from where we bought we bought up here and we had an entry who's actually 2% away, which is quite large. It's instead of only making 2%, where she made 2% on the first read. And then we made 3.5% on the second trait. And if you bought a 50% here and 50% of your overall, overall bias. So you say I'll put my 100 instead of by my 400 thousand and amp, 50000 here and about 50000 here, I'd actually be up a total of closer to 3 percent. Instead of buying a 100 thousand here and being up 2%. You can see this is averaging in strategy works very, very well, works good for short-term, extremely well for long-term, and actually extremely well for long-term because of the reason for it don't have to be exactly rot at that exact point in time. They actually have some leniency to have some play. You don't need to pick the exact point. We can go a little bit low, we can't go a little bit lower. There's a lot of times for a might use an initial strategy, say, I'm buying and buying and these bars here. And I'll just never enter as soon as we come down here, I'll just exit. And on never dollar cost averaging and whereas I'll dollar cost average the hallway, actually make myself some more money. Says we exclaim, we could have made some extra money on the way up. Could've made even money while we're going down. We could have made money on each time. To actually scroll over and continue to show it. Show you another one here. Let's just say we thought there was a witch in here. As you can see, press sexually touched many times, actually had close to five touches. 12345, could even call, you know, you could group some of these up. Let's just start with that 12345. Let's say you think that price is going to start through time. You see a bouba closing on its high, although it's a bullish trend, but it's still at the GBA. You believe this bar is the bar that it is. And the reason I'm pulling it up as I know that it's going to be a mistake, but I'm going to show you how to rectify this mistake. U bar and this bar right here. Sorry, that's your, that's your signal bar. That's the entry bar. Reason being is we actually went above this Bahia. We entered into the territory above. This is the entry by instantly you start to see pause it. You're not interested in years 1234, the fifth bar. It's definitely against you and you're not very happy with that. You see the sixth bar. You're nearly by the time you press in nearly. And that's why we don't use too much leverage, 14 percent against you. What happens? You see another bullish bar ending on its high ago, shit that was a lost as the last sell-off. Usually what happens is when there's an extreme sell off light into a trend, that's actually going to be the end of the trend. Because what happens is once we've been selling off so long, so long, so long bears already have such a large profit that once they get a really quick 10 percent move on top of that 15 to 20 percent proof that they've gone, they just get out of their position because it's like saying, it's like the duck laying golden eggs. You've just being handed a lottery ticket. You've just been said here, take some extra profit within literally half an hour, we're gonna give you double what you've made over the last five hours. And people are going to say, well, heck, yeah, I'm going to take that. Thanks very much. And that's why a lot of these times, these extreme mu's light into a trend as you can see. I'll explain, we're going down. I have a bit of up and down and going up or going down burn a channel. We're not, we're not just selling off extremely quickly. This channel where we're slowly moving, we're going up and we go on down with his way as we've gone up or gone down. And we're going up. When we go down and we're going up and we're going down and will go on up and we're going down. It's not just straight off a cliff. It's completely different as you can see, there's actually waves of ups and downs and slurred profits just grinding away, grinding of a grinding away, grinding away. And all of a sudden, people have just been gifted 1, 2, 3 on this third bar, that's double. All of these BaaS is extremely big. And again, if you want to do a measured move daga, one-to-one measured Move toggle of these two bars. Again, going from the top of the actual body of the bar, the bottom of the last trend, but it's still an extension will Control-C, Control-V that actually do an extension of that out. And where I'll look if you sold on this bar here and got in a little bit below its bar and an entry point within 115 minute candle, you would have made 7%. And again, that's why I like to go over this one-to-one measurement of strategy, especially will only when the boss specificly big and trend bars in the direction of the trends. As you can see, we've slowly been grinding downs, dining down, grinding down, grinding down at two massive bear buzz in the direction of the trend. We're going to get a one-to-one measured move, which is going to end the trend. That's going to finish the trend, we're going to reverse up and when now we're going to start to grind higher, as you can see, started to go down now and turning up higher, higher, higher. That's what I want to explain to you guys. As you can see here, we're just slowly grinding down, slowly grinding down, slowly grinding down. Going back to here, this is entry point number 1, Y1. Oops. I do not know what just happened. Sarah. E one. That's a one entry one. Then we get our second entry right over here. Was gone all the way to the top spring, the vector a2, we get a second bouba ending on its side. Again, the reason I'm saying that we bought on this bar is because after there's been a slow grind in the direction of the trend, once we get an extreme move in the same direction, there's a very high 75, 80 to 85 percent likelihood of back tests. Does strategy a lot that we're actually going to get a reversal then, because the people who are in profit get an all of a sudden extreme amount of extra profit. And because of that, they usually close out that positions and they rod that out. Excuse me. So we get a second entry here. So as you can see, we start we get 50 percent in and we get another 50 percent. Since he had such a big move down as soon as you've reached the eBay. And that's why I have these lines. It's the average price of the last 20 bribes, 20, 20 bars. This is going to be perfect exit point. Now look, we got into an entry 0.1, all of a sudden, within an ala would down 14 percent. But are we really down 14 percent? We bought 50 thousand here. We bought 50 thousand here. We now have rotted up. We see we bond this bull bar, 1, 2, 3 bonds later, 45 minutes later. We're back. We're up that were up 5.8% on our second position. And we're down 1.5% on our first position. Overall, what's happened? We've actually negated this massive loss that we could have had and we've actually doubled it. We've actually a noted out with a massive gain instead of a loss because we actually understood what was going on. We understood that after a slow grind, extreme measure move into a trend. One of these measured moves, especially when you go to measured move toga, and we get a massive wick into that very hot percent chance we're going to bounce back and get a move. All of a sudden you've turned to fullname percent potential loss into a 4% gain. And it just feels absolutely great when you can do this. Because when you fully understand what's actually going on with the market, you can to this. So there we go. We've actually shown you a fair few strategies of how we can actually dollar cost averaging. We can explain to you how we do it in investing. I've actually showed you how I do it in short-term day trading. Every single data actually make money as well as MSB move togas supports resistances, trend lines, channels as you guys have seen, I'm actually need every time I'm using all these tools. Because the more tools that actually work with any pattern, the more higher percentage chance, the high probability that it's actually going to work, and the better chance you have of making money and it all we wanna do at the end of the day and make money and not lose too much money because IT goal at the end of the week is to make 500 six positive traits couple of day between five and 10 per week. And to make 2 May 3 be at max, 1, 1, 2, 3 at max mistakes. And to make sure that overall you're actually gaining and you can lose That's understanding of it. You have to be willing to lose and willing to understand what's happening when you have a better understanding and you use these strategies like dollar cost averaging as well as actually using them with strategies of as support resistance. Candle is one-to-one mission mirrors the sky's the limit, and that's when it really becomes valuable to use all of these things. And that's what I'm really trying to teach these things to you in depth. I hope you guys enjoyed this lesson. 11. Lesson 10 - Why Trading Using Multiple Timeframes Leads To Greater Success.: Hello everyone and welcome to the trading Crash Course, episode 10. I'm very glad you've made it so far through these episodes. I'm sure you would have gained a lot of knowledge. And that's the goal of this whole series. This episode, we're going to go over the benefits of trading multiple timeframes, and we'll go over fractals. Now, my most important timeframes are the five minute, 15 minute, one hour. And for our timeframes they were Diao time frames I'll look at every single day for whatever asset that I'm trading. We're also going to explain Canvas within Canvas, have any five-minute candles make up one hour. How many five-minute K12 was make up a whole day and things like this. We're also going to go over using the daily, weekly, or monthly timeframes, which is something that I usually look at at the start of the week for whatever asset that I'm trading. And where we're also going to go over where to place your stop-loss. We have covered that in a few episodes previously and we're just going to go over that again. So the first thing we're going to go over is the benefit of trading multiple time frames now, actually have three screens in front of me. And currently I'm only have the one screen to be able to record. So I've actually put my three biggest timeframes and I would've added the full hour, but it would have been a little bit to jam-packed to see and be able to write. But actually spread these charts across all my S3 screens when I'm treading. So initially on my front screen here, I'll have a full page of the five-minute job because that's my number 1 key. And where I'll actually be using to enter and exit traits. Then easily to my left, on my right, I'll have split in half the 1 alpha and the 15 minute because both of those time-frames. So on the right here I have the 15 minute, as you can see, and I have the one hour of the exact same assets or trading eighth USD, a theorem, which is the second biggest cryptocurrency. So I have these spread out over all my screens as I've explained when I'm using the one-to-one visionary strategy, sometimes I can actually use them one-to-one measured move on the 15-minute char, which actually creates a larger target. And I can just translate that over to the five-minute chart to actually get a better entry and better exit to make it a little bit more profit. So the reason I do that is because so on the 15 minimum, able to get an extended target meant to be a one-to-one. Whereas I might not get an exact 1-to-1 good measure move of trend buzz. And especially because we're going to go over what fractals are. Fractals is basically the same patterns happen on the five-minute chart. They also occur on the 15-minute chart, the one-hour chart for our chart and the daily chart, they just take longer to occur. So every single patent that I trade on the five-minute shot, I can trade on the four-hour chart for a much longer swing trade, and that's actually what I usually do. But I wanted to take a week, two weeks, sometimes a month trade. I'll be using those longer time frames to actually get in and hold for a longer period of time. Because on the five-minute chart, it may take some way between 212 hours to have a triangle patent play out. Whereas on the four-hour chart, it might take somewhere between a week or two for that triangle to play out. And because of that length, on the five-minute shot, we get a big breakout in comparison to the five-minute chart wants to try and who gets to the apex? And we'll see get the same on the four-hour child one Elwood shot. And it's just an extension because the run of the triangle, it takes longer to form. We then get an extended move in comparison to the flower. So if we're able to time that again on the five-minute, but notice on the four hour we're able to time it a lot earlier than a lot of other people and were able to get out earlier because we have free defined wherever you need to get in, where we need to get out, we've found a good probability trade and we minimize old out risk factors using the five-minute shot. So that's why the five-minute shot I've got over here, the 15 and the 10. So I usually spread those all across all my screens because it's very, very important. And constantly, at the end of every five minutes, at the end of every candle, making sure to glance at each candidate just to see how they're forming and actually what's going on, because it is quite, quite important. So next thing we want to go over is candles within Canvas, because this 5, 15 minute candle is just three five-minute Candace. Within, within here. It took 35 minute candles to form. This one bulb over here took 35 minute candles to form this big bad bar over here. It took five minutes to fullness bull trend bar over here to fully another 15 minutes to form this bull DOJ EPA. Whereas all of these bars, it took 1, 2, 3 to form that 115 minute bought another one to three to four and that 15 minute window. And then again for 15 minute into one hour, how many buses that so it takes two bars to get to half and Ala and then you double that to get to one else. It takes full boss who would be taking 1, 2, 3, 4 bull bars to create this potential one big blob over here. And that's how it works. And that's why once we see, we get an extended bull bar over here and we're able to do a one-to-one measured move. We get a better ensure on the five-minute, but we keep that extended one-to-one target because it's still likely to hit, because everything is fractal and markets play out. It just takes longer to play out on the 1 alpha. And that's why play the five minute because I'm usually wanted to take a couple at least one, maybe two trades a day. So I want to be in and out, whereas the one hour, you might only get one or two trades a week for the same setup. So that's something now let's just do. Just wanna go over here so I have some blank space. So I have some place to bright. Let's just start. So how many? Five candles make up? One hour. So how many how many would make that up? It's always good to be figuring out all of this. How many how many 15 min to make up for it? I was. How many five-minute candidates to make up for hours. You can understand. And that's also how I explained how I actually get this white line here. So how many within one day does, and these are the type of things who needed a 75 minute candles make up one hour to take 3315, 35 minute candidates to make it 15, then it would take 6155 minute candles to make a profit. Our set means it's going to take up 1250 five-minute candles to make up one Ala. Now while that's very important, is the reason I've got this white line here. Is if you actually look on the right, this white line is exactly on the one-hour chart, is my orange line. As you can see, the top of this current green candle is trying, is just about to poke into, into the territory of this orange candle. If we move over to here, you can see that this green candle is about to poke into the territory of the white candle. The reason this is, and the reason I've done this is because I've actually created this orange bar is a representation, this 20-minute AMA orange bar is a representation of the 20 EMA on the one hour chop. And how I've done this is how many, how many five-minute candles takes up to make to make an our candle. How many did we say? It takes 12 candles. 12 candles as how many it takes. Move this up to here. So if it takes 12 candles, what is if this is the 20 EMA? If this is the 20 EMA, then what is 12 times 20? What is that mess? It's two hundred and forty. Two hundred and forty is the maths. So then that means I need to create this as the 240 exponential moving average would actually give me one hour, 20 moving average, and that's the mass behind it. Now what I've actually done enough, done a lot of backtesting on using the 240. I actually used the 220, which is 11 candles there any reason I do that is because the EMA, it actually uses the current the current few processes more so than the last few of the 20. And because of that, it's actually a little bit more accurate of found to actually use this. And as you can see, I've got the 20 day EMA tick, which is orange bar, and this one's the 220 day EMA, which is also tick. So as you can see, it's very close to 240 or just with a lot of backtesting using this strategy for a long time, I've found that actually 220 is little bit more accurate. So that's how explanation of this comes through. And as you can see, it's very, very, very inching. This orange bar counts for a law. As price comes down, you can see it bounces, it comes down, it tries to get back to it bounces, tries to get back to it. This orange bys is a short term moving average and it, it encapsulates the price very low. Price struggles over the short term to bounce. And eventually when it does bounce, this white line becomes more interesting and as you can see it that has some rejection points, which shows that it actually had some significance in the market. Soon as bots are getting up to here, they're just selling. As soon as boats are getting up to you, they're just selling. That isn't old, just people with the reason being, is they reaching the long-term average price and they're willing to sell. And what's happening he has, they're reaching the short-term average process willing to, so short-term average price willing to. So we get a quick 1% ball in five-minute. Again, that converts to $500 in one minute or $1000 in five minutes. Sorry, if you're trading a $10 thousand accounts. So very, very quick. So here how many 15 minute candles make up for hours? So it takes for 15 minute canvas to make up one ala. So four times four, we get 16. Thank Sixteen Candles. Again, these, this is also very interesting because if you were to back to some, some, some more strategies, say you did. So you do the you do want to find the 20 EMA of the 15 minute and plot that also Onitsha, this would be how you would find that five into 15 would be 33 times 20 would be 60, somewhere between 50 and 55, 56, 57 or 60 would be perfect. The perfect EMA to actually get this 20 EMA from the 15-minute actually converted over to this chart. So this is why this is very, very important and some of how the basic maths can be done. So here, how many five-minute candles to make up for hours? It takes 12 minutes, 12 candles to make up. One alpha, 12 times 448 candles, takes 48 candles to make up. So if you wanted to get the 20 EMA, if you wanted to get the 20 EMA of the four hour on your shot, you would do 20 times 40 candles. And whatever that mass would work out to be, would be your EMA that you'd be able to put the 20 day moving average, the 20 period moving average for the full hour actually onto your job. Lastly, we'll just finish with this. We don't need to go over every, every single one. Basic can go on forever. How many 15 minute candles make up one day? So if you just go based off here, how many full hours in one day? So 5 times 4 is 20, plus another 4, that's 6. So 6 times 4. So that x ends up being six times 16. Let's get the calculator out. Six times 1696. There we go. Nothing wrong with using a calculator. 96 candidates takes 9615 minute cantos to make up one day, which actually yeah, that's correct. Okay. Let's finish with that. Get rid of that one. So and that also goes over candles within candles. And that's why we wanted to go over that. So there's three, five-minute candles within a 15 minute candle. And these are very, very important, especially for the LAMAs. That's why what I've found is specifically the one ally EMA is one of the most beneficial to pull on the five-minute chart because it gives me some short-term and long-term places to get out and Confluence and resistance and support areas. Again, I'm just looking for multiple confluences without confusing myself. I just want non-simple can fluence levels, which is exactly what I'm finding here too. Next, we actually get rid of the 15 minute and the 1-alpha. Now we'll just make this full screen so we just get out of this exit, out of here. And make that full screen as we don't need those anymore. So next week we learned about the daily, weekly, and monthly timeframes. They may not think these are very, very useful. But again, at the end of the week or at the end of the end of the month. I like to look at all these timeframe, so I'll start with the one day timeframe and scroll out for a theorem and just look at the overall trend. I want to understand what's happening when I'm looking at these trends. Actually, we'll start at the monthly, we'll start at the longest, longest one away. So it's only been on this exchange for a short amount of time. We can just see the monthly. Which direction are we going? What's the average direction? Bullish. We're going up we started down here in when we had the crash and we had were about $180. And now row 1000006, $600 peaked out at $2 thousand. So as you can see, we met a quick Tenex in the last few months. So very, very, very interesting here. Again, just go ahead and note, but we'll go over is the weekly, again just for the general direction of the trend. Again, we can also use these as fractals. You can use the weekly, if we can find, again, these big bullish trend bars closing on their higher, you can do some extension points. There's nothing wrong with that as much as it's the weekly that it all works out the same. If you can do some extension points, getting in, as long as we go above the candle, we would have had to withstand a bit of a drop. But you can get some quite, quite good gains over a couple of week, well couple of week time. So again, the general direction being, being up and as you can see, we turned supports into resistances here or here. There is a resistance, right? Couldn't Pasha. We're scrolling a little bit closer. Up here. We made a high, we came down, we came back up to the high. We couldn't beat the higher, we made a new life. We beat this loa loa in here. Yes, we did. We came lower. That was the old law, Kneser-Ney law, then will happen. We came up, we came up, we came out, we made a new high compared to over here. Now, we came up, this is higher. So as you can see, this was any high. Yes, we beta, but this was originally resistance, as you can see, became down resistance. We couldn't beta, it was, it was a bowl. We came up, came up, could pass it. But now what happened? Support resistance flip that we went over in the last video. This before was a resistance level. Now what's happened? We swing it across over to here. Once price actually extended beyond the knee high and we beat, beat these high here. What happens is we came up, we smashed through the resistance as we spoke about loss them smash passive resistance went bang straight up. We came up and what happened? We actually did a support resistance flip. This old resistance over here was a resistance here. Was resistance here. Walls resistance here, resistance here. What happens over here? Come up support. It's an SR flip. As you can see, support resistance slip. Now we've came into this area. We have now concrete floor. We couldn't beat the floor. That became the new floor. And will happen, we create a tile and will happen where at high Ohio, Ohio, Ohio, Ohio higher. And that's why these strategies are very, very important. As you can see, we do the strategy on the five-minute candidate, Grover out narrow on the weekly candle or on the weekly candle. And we can actually get down here, actually own some Bitcoin that about 200, sorry, theorem at 212 us. Bought and sold them up. They're just recently actually because of the strong move. You just you these these happened on the five-minute happened on the daily, happens on the weekly, as you can see and as I said, the reason that you want to be looking at some of these long-term place. If you just looked at this at the start of the week and you saw it up here. And then you start up and then you see this big red K2 and you go, Oh, hey, this was a resistance over here. This could be an SR flip. You bought, you put your supports in below this candle. I would put it in. And all of a sudden you've got a 10 times Gaynor from competitive risk, excuse me, which is absolutely insane. So as I've explained in here, It's just insane. These things happened in the five-minute and on the weekly. Just get rid of this. Oops. So I need the RSI for now. And then, yeah, we can't just go over the daily. So at the end of the week we'll go over and it just gives you a trend. What's happening? Super, super bullish or through he abolished polish, polish, polish, polish. Now as you can see, we couldn't see on the monthly and weekly say much, but just seeing a bit of beer at a parish nurse was saying to be candles in the last couple of days, be Candle, Candle, other, they're probably both Diogenes. Remember what a dodgy is that our g is where entire candle, so the entire candle goes from updated down there, but the bunny is very small in comparison. So it's DOJ candle with the body isn't, isn't nearly the entire candidate like this one over here, which engulfs knew the entire Canada, which tiny little weeks on the top and bottom, It's not like that. This is another dodgy candle. That's another DG Kendall. We go to a third DOJ can-do. Even today we are getting another DOJ can-do and what's going to happen from there. So it's just good to look at the daily and we see what happens these inside boss soon when we get one inside this bias, completely inside this bar and this bar is inside this ball. Sometimes it looks like a bit of a triangle. If you look at it, what's happening is we're sort of, we're doing this. If you think about it and maybe tomorrow we'll come to some type of apex and potentially crash down and we'll keep that updated because of quote, some more videos to make in the next couple of days. So that's just why I want to point all of these things at all. Everything that happens on the shorter timeframes definitely do happen on these longer timeframe. So if you're someone that, you know has to go to work every day and you can't be staring at the five-minute shot every single second. At the end of the day, you can come back and look at the one and for our charts and put these trades on that last day at two or three, awake, even months haha, this does trade from 220 down, up to 3000. And lastly, probably four or five months. So again, absolutely crazy. And that's why I actually really like using these longer-term timeframe because some of the extra money that I've got locked up, I can put into these longer-term strategies and I don't need actually be watching them every single minute of the day. I can just evaluate them either at the end of the day, at the end of every couple of days. And my favorite is evaluate every single one at the end of the week and really just go over and, and properly study, especially if you're taking a weekly trade. If you taking a trade on a weekly or monthly chart, you don't want to be accessing it out the next stages because it went up a little bit. You want to stick to your plan. And if if you bought on the weekly and you've got a one-to-one measured move on the weekly, then you stick to that chart. And you stick to that setup because that's most important point. And the last thing I want to go over again, just going over where to put your stop-loss in a lot of traits. Now we're actually flick over to the five-minute going. Every trade is facto. If I was to enter on, say, an AP channel on the five-minute chart, similar to what's happening here, I would still have the same exit points, although being on the daily chart, your risk to reward is just greater. That's all that it is. Now let's move over to the five-minute chart and actually go over this. So we're just going to be going over stop-loss. Just put that up here. Because it did move. Some arose and there's no need to find it just going ever stop losses. So what I want to explain to you, or just over here in oldest area here. Oops. So let's just say we came down here and we made a new law in this area here. We began to come bullish. We started to see some big ball balls closing on their high, but a big bull bar here closing on it. So I've got a couple bad boss all of a sudden you get a really strong push and pushing through the EMA. The EMA initially was a resistance back here, resistance, resistance, resistance, resistance. We flipped, it became a support. We pushed up, bit of support, pushed up into support pushed up. Now say you starting to get really, really bullish in this area up here. Where would your stop-loss be if yo stop loss would go below the last swing, which would be right here. This would be a stop-loss. The reason that's your stop loss is you want to be putting it below the loss wing or the most recent swing? Let's just say you started to enter and this is the Merced lungs. It's actually switch over to 15 minute, give us a little bit better that accuracy. Yeah, so let's go over like that. How does that look as good? So say, Yep, that's how stop-loss. So we entered on this bar up here when we got the resistor and we flip became support, we got in, up above this bar here. As adopt laws would always be below the last swing. So last swing would be this stop-loss. What would happen if a board above this bar would my stop-loss change? If I bought in there, stop-loss of the last swing is still down here. My stop loss would absolutely not change. Say we continued, this is these are Ola entries. So we're going to have multiple entries. I have e3 in a second. So a1, a2, a3 will come, let's say down here, pulls the boy in here. That's our next bought up an E3 on that grant on the grain, Bob. We would hostile plus v, Again, where's the law swing? We've come here. The last wing is still this is still below here. It does not change. If I was to then say I was to buy here above this green bar, we get another big bull bar entering on his high. That's why if you notice I'm entering on Bayou Buzz and closed on their high baba, baba closing on his eye, big bouba closing and that's our big bouba closing on its side. That's our fourth entry. Where would I stop low-speed? A lot of people would instantly say, that's our new swing. That's rough stop-loss goes. That's not it. The swing changes when we when we create a new hire three here. So we still don't have a new stop-loss. Stop-loss is still here. Let's just say these are the boss to happen next. Get a move like this. And we get beaten through this, this resistance through here, resistance, resistance flips and becomes a support. As it can see here, we came through it, we can down, we retested it and we came up, think of these as candles. Where would our new support B, where would I knew stop-loss be if we were to buy on top of this scandal hit, that would be a five. We are with our new stop-loss go. And you stop loss would now change. The reason being is we've, we've swung and now we've created a new high. Once creating a Nihon, we've got a low, and now we've got a higher law. Once this high or low over here is broken at trade is invalidated. And that's why and you stop loss. When entering in E5. Now changes E5 stop-loss. If you've continued to hold E1, E2, E3, and E4, the stop-loss would also change for them completely. Because in the same scenario, we've gone up. We've created a low, a high, low, but we don't know if there's a high, a high yet. And that's the key distinction that we need to make for. Once we get a higher high, we've now got a, we've got a low, we've got a high, we've got a high low, we've got Ohio high. And this low becomes the new stop-loss. And you can get rid of this. Two guys understand that. I will go over that on the short side. So I took that on the long side that was alongside. Quickly show one on the bearish side. And I just want to quickly show you guys one more thing. So as you guys can understand, we have coming up. Any buys in this area were in this area called the stop-loss down here. Once the price trades above the hot here, new territory, we haven't traded here for a wall. Once we trade in this box above, above these balls, the stop-loss changes. And we move our stop loss to the new high or low. High, low. Because if you're expecting price to go up, price goes up, comes down, makes a higher, low, goes up, high, high, high, low, high, high, as you can understand. And that's bull trend. And that's if we're expecting a trade to go that way, that's what we have to be thinking. High, I will come down to high or low. We weren't reached below this price and put it right below that one week. And then we'd come up, once we come up to this price here. And new stop-loss changes. Because we get any Hailar once you've made a high, high, that becomes a new stop-loss. We come down, we don't even below, we don't get below that price. We come up again, if we make a high-high lot, we did here, new stop-loss changes. And it becomes here. And it's what I would call the trailing stop-loss. Because each time we make a high, high, you just trailing stop loss, you bringing you starting the stop-loss down here at this line. Then you're moving it up to this line. Then you're moving it up to this slide. And then you moving it up to this line. And it's what I call you're trailing stop-loss. Okay. Now let's just give an example. On the way down. Let's just say we took a shore up here. We saw a high, high. And then we saw low-high with the series of 1, 2, 3, bad boss or closing on their lord. Can you see that? We've got 1, 2, 3 and the row bu trend because this one is quite close to a DRG, but I can tell that it's probably closer to 60, 65 percent the body of the entire candle. So we've got 1, 2, 3 bay bars closing on their lower. After a higher Ha My expectation is we could get some lower prices. Let's say I enter right here on this bar. I get it entered just below. I see this buff form. Once it's bound makes slightly law into it. That's my entry point, A1 for the downside. And she won and it took a short P1. Sure. Where would my way with my stop-loss be? Right here. We've got a high, high. Then we've got the low. We gotta lower HIV. But we don't have right here, this entry here. So we haven't finished this by yet. We just entered right at the start. We haven't got a lower lawyer, so we would add aware of it. I stopped be a stop would be up this high or high. Right here, right here on this bar, right above. So you see that that high there and put a one tick above. That's where my stop would be. Reason being is here. I'm taking the short run in there. We haven't beaten this low yet. And since we haven't beaten this slow yet, still, the higher high needs to stand. Now what happens? Press comes down to this. Price comes down on the next block. This is where we're trading right now. Where would the new way would the new stop-loss change too? So now we've got four dessert, a Lola. Where would the new stop-loss? We've swung had a higher high, low, high, low, high, and now lower, lower. We will stop here. If you've decided to move it. Radha brought a tick box above this candle here on the low, high. You're absolutely correct. That's exactly where the new stock would be, cause that's the new price. It's beaten. Come up bait and below it. If we come up above this price, I would say my, my trade is invalidated and take the loss. Absolutely fine. Let's just say I took a short up in here. I saw these private section. Didn't get sure. Again, a soil up here are yeah. Yep. We're gonna go down again. I entered below below here. Asthma a2, my AT show entry to show right now and just put it below, but it's in that box in here. Into show. Where would my stop-loss go? Again, it would stay the same. The last level higher, we haven't changed. Laszlo high. Now, let's say we took a stock, we took a short entry for we took it below here, this bar here. A3 short. Where would I stop, change, change to go to low or low. Here we've got a low or high. And now what have we made another lower law? Where would the change where would the stop change to? It would change to the most recent lower, high. Every single sure. E1, E2, and E3 shortstop now changes to above to adjust one thing about this, Bob. As you can see, when we had a rally over here and we came up, what was this last lower high? It was a resistance. It tried to come up to that level and it failed. And all of a sudden we had a big move. We had a big move up and quick move down as well. Changed as well to the downside. Try to come up, try to come up straight down. Not only is this a resistance, but the long-term EMA acting as another resistance. And as you can see, the reason we use this perfect stop-loss. This perfect stop-loss is because price didn't reach it up here. And again, we came back down. And once this happens, I'd probably be getting out of my positions somewhere over here. I'd be very, very happy and be happy that I picked the right stop-loss. And then I moved it from here, from up here to here, and now two down here. And we did again what I call a trailing stop-loss, which is what needs to be done. Especially well you trading and especially while you're doing some shorter term swing traits, because you can make a lot more money by actually letting your trade ride out and not just getting out after a big bar O2 and actually letting your trade pen out and following the lower, highest, lower lawyers and the higher highs and lows as we did on the previous example when we're going long. But this example, we're going show you guys actually really enjoyed this episode. We went over a lot of content which will be very, very useful for you in the future. I'm glad you joined and I can't wait for the next episode. Thank you. 12. Lesson 11- Common Patterns to Use Everyday Trading: Hello everyone and welcome to episode 11 of the trading crash gloss. This episode we're going to go over common patterns and breakout strategies. He actually gone to see basically every single day and if not guaranteed every single week in the market. And you can actually use all of these strategies to make a profit in the market and actually understand where an entry point is, where an exit point is wave should place a stop loss and some risk to reward factors. So some common patents we're going to go over 0 is triangles. There's three types of triangles, symmetric, descending and ascending. Then we'll go over flags and there's a bowl and a bear flag. So there's two cases flags. Then we'll also go over wedges. And the percentage chance for wedges to turn into Fano flags and the percentage time for wedges to be the actual final move and turn around. So all of these are very, very common, and I'm very glad that you've made it this far through all the videos. We are going through all of the core, the core stuff you're going to need to be able to trade on a daily basis and pull money out of the market and actually put it in your own pocket at the end of the day. So let's get started on triangles. I'm just going to pull over to the right here. Now I'm just actually going to draw out each triangle here. So we're going to draw out symmetrical with descending and ascending just using the trend line tool, just a basic tool. I'm just going to draw out this type of triangle. Does anybody know what type of triangle that is? If you said symmetrical triangle, you'd be absolutely correct. What's a symmetrical triangle? Is that each side is basically symmetrical. And we actually hear we're going over the apex point right here, is what we call the apex point. The apex. Now what commonly happens within triangles is to get a move, change, changes to another color, get moved into the triangle. And we'll get a move that basically bounces. And now we get right to the apex. So we're going to move this into the triangle. We have it bounce a, bounce, a bounce. And as you can see, each price is becoming smaller and smaller and smaller. And as we do that, we reached the apex level, which then it is ready. It's a, it's a 50505050 percentage chance within, with a symmetrical triangle. If we're going to break to the upside, or we're going to break to the downside. So you guys know exactly where the apex is, so just keep it there. So how we, how we actually do this is it's quite simple. We can actually take a trade on either side. What we do if we were to take a short and the price would come, we would first wait for the press to come below this, below this low there. So once press reach that law would put our stopping. We'd put out would enter the market with a sharp. We'd put our stock would be above this little apraxia because that was the last swing. And our profit target would actually be the height from the top to the bottom. So that's the height from the top of the 8-bit, from the top of the jungle to the bottom of the triangle. The first biggest MOOC. We take that and when then we extend it to the apex, you can see we get a move down to here and we're actually bring our target right down to there. As you can see, we've actually got a risk to reward ratio of four to one, which is absolutely perfect. That means that we can, if we were to lose one, so if we could lose four times for every one, when that's how profitable destroyed would actually be. And again, that would be if you take the short, if you were to take the shore. Again, this, this symmetrical drawing is a 5050 patent. So what would we do on the upside? Again, we would say we still have the same profit target. And top to the bottom, we just set to the apex. And now we take the same. So we would wait for price to come above this high into that price setting there. And our stop would go below the loss swing low right there. So now we would take along right here would be our entry. Target. Target would extend all the way up and our stop-loss would come just below the swing, which would be very small amount, as you can see here down, we've got a risk to reward ratio of 3.7 to one. We can actually tight on the stop a little bit and actually get it closer to fall like the other one. And here we've got a 4.2221. So if you would have when one time and lose four, you're actually break even and that's why the strategy is very, very good. The only problem about this one is that it is a 5050 chance because it's a symmetrical triangles closer to 50, 50, they're actually going to break to the upside or break to the downside. Okay, so now you understand that one. Next, let me just draw an ascending triangle. This right here would be an ascending triangle. Let me just, oops, crypts filling. This one is a symmetrical triangle. Just bring this down. And this one up here is an ascending triangle. Ascending triangle. And we can quickly actually, we'll just go a little bit here. We'll draw a descending trend. And there we go. And we'll do draw a descending, descending triangle. Okay? So again, where would the apex point B, the apex point would be the exact same. B, the point where everything meets would be in this area right here would be the apex. And for this one, it would be down here would be the apex. Bringing this one and just kinda drag it. That's fine. Drawn over and the apex would be down here. So within ascending triangle, oppressive becoming in, be hitting the ceiling and it would be coming up. We'll be hitting the ceiling, but we'd make a high or low, as you can see, we're making a logo, but now we're making a high or low. We'd come up and come to the ceiling again. We'd make a high or low, come to the ceiling again and make a high or low. And now within ascending triangle, it's a high percentage chance that we're going to break to the upside. It's somewhere between 60 to 75 percent. It's very, very hard to put an exact pinpoint on this number, but it's much closer to 50 to 65 percent. And with a descending triangle, we do the opposite. Comes down to becoming down. We'd make a high. Come down, we'd make a lower high. We'd come down with Mega lower high. And we'd come down, as you can see, very similar to this, but coming up and making a low, high, low, high, low, high or low. So every time here is just a high percentage shots because these higher lows are actually going to break to the upside. With this. And again, very similarly, we do a measure from the top to the bottom to have an exact exit point. That would be an exit point. And our entry would come in right here once we were actually to break, break the High in here. So once we were to break the higher, that's how long the grain in. That's how long position. We go in long rod on that line. Oops, we have a target all the way up to the top. And just below this swing low here, we'd have our stop. Just a as you can see, we've got a wrist or water 4.18. Very similarly, a lot of these triangles have a risk reward of three to four to one depending on, on how they actually work out. And that's why triangles as such, such great buttons. We have a very, very tight stop loss and we have aquatic far away profit target, which is very, very good. So there we go. We've got the apex. And now on a descending triangle, similarly, but exactly opposite. Here. We're getting low, high, low, high, low highs. There's a 60 to 75 percent chance that it's going to break down. Again. It's sometimes depends to the bars on the left, depending on how bearish they are. If they're super, super bearish and it comes down, makes it descending triangle. Probably closer to the 75 percent chance that we're going to break down. But if there's a descending triangle, we make just a really slow grind down, probably closer to the 60 to 65 percent chance of actually make a breakdown or potentially just go sideways. So and again, similarly with the descending triangle, would take from the top of the first row to the bottom, would bring it down. That would be our extension. Down to the apex. We would only go long once price beats all of these levels, which would be right there. We get our short in. Short would be there are stop would be above the previous low-high right here. That would be our stop. Bring out slope up just above, bringing our target down, all the way down. And I can't quite see it. Let me just bring it across. As you can see, we've got average reward ratio of two to 0.321, which is actually still very, very good. If you can get over 2 one on every single trade, you can have close to a 40 percent win rate and you're actually still be profitable in the market. As you can see, each of these three triangles actually very, very, very important in the market. Because they do have a percentage, John, and they give you a risk to reward, and they give you a good profit target. So let me just copy this, delete everything. So if you need to take a quick screenshot of that, but you can definitely find some good stuff on Investopedia and all those types of things. I just want to make sure we go through appropriate because you don't get that thorough analysis. So now I want to show you a real life example. In the actual trading block, as you can see, the market is to trading the second system ticking actually on the daily chart for Bitcoin, I want to show you a symmetrical triangle. Can you guys actually see a symmetrical triangle anyway in here? Sometimes they're hard to spot, but sometimes they're quite easy. Right here I can actually spot symmetric quadrangle. Let's change that to blue so it's bit easier to see. Let's go blue like that. Yep. So we started there. She got one going across the US that would just extend that. So again, I just want to show this real-life example because the apex is right there. But what would triangles in the last third of the triangle is where the breakout usually happens. And that's why it's hard to predict exactly going to happen in this apex area, GC going to happen anyway, pause here because that's the later third of the entire triangle. And that's why you got to be wary of that and just keep that in mind. As you can see. You can see this trait. We have symmetrical triangle. We're getting low highs, low highs, low highs. And we're also getting high, low, high, low, high, low. So we're converging the process, actually converging into one. As you can see, we go to break out of this price. Price came up. Where would I stop BY? Stop would be behind below this level. Let me just get rid of some of these. So our entry would be above this line here and make that bright yellow. And it's actually make it thick. So that would be our entry point. Right here would be a stop if that's where we took our entry. Yeah. Because that's the last swing. We went up and we came here. That's the loss swing to the high. As you can see, then we break out of the high. Here. We came up with retested this triangle and we came up. So we would have stopped be, this would be where our stop loss should be. Stop-loss would be the entry would be here, as explained. Now, our profit target would be from the high over here, as you can see, I'm just extending over to the left. We'll do that all the way down to the low, down here, all the way down from the low to the high. Now, bring that over. Actually bring it over to the breakout point. It's an ODE, usually bring it here to the apex, but it didn't reach all the way to the apex and then broke out is you can see it actually broke out right here. So that's where I'm going to bring the bottom of the apex. And as you can see, we came, came right into this price and started consolidating sideways for a few days with hybrid and quick press up, quick brush down. As you can see, if we were to take this right here, that would be our entry point right here. A stop-loss would be right there. And our target would be extended all the way up here, right here we've got over a two to one Rr road to point 19 rr award. And we actually would have made 37% on the trade risking 17 percent actually would have been a very, very profitable trade. And as you can see, it actually worked out. We came up with the first breakout. We retested this symmetrical triangle like that it broke out of. And then we came up, came up, bang, and we actually hit our target. Could have been a little bit more. But again, he doesn't need to be getting greedy with these things. If that's our first target, then that's our first target. And that's absolutely fine. One thing that I can't see any, as you can see one big E-UTRAN bar closing on its higher. If you were thinking, you could do a one-to-one measured move of this bar, as we've explained in previous videos, actually extend that bar up to the top. And that could be new profit target. And actually rather than getting 37 percent year closer to 50 percent. So that could be one way if you actually want to manage it. But I'm just pointing out that this is how a lot of these triangles actually work. Now next, let's just quickly get rid of all this for you. The next thing I'll do is I'll just explain the mixing want to go over is actually flag. So we'll be able to fund some more examples of ascending and descending triangles, but that's a perfect example. We came near the apex, had a breakout of the load to the higher and we've got an extension target and we got to stop loss. Next one I'll go over is Flags, bull and bear flags. And just want to go over to the product and actually quickly draw one up for, you know, bull and bear flags actually are, is we actually have a boo trend upwards. And it's actually do it with these lines would be better. So we have a trend, a bull trend upwards in a channel. That's the price is staying within here. We're going up and we're going out. We're not dropping much. Then we actually get a channel coming down. A process actually comes up, comes up and comes down, consolidates over here. See we can get a consolidation and we're just bouncing for little bit of bouncing and bouncing, bouncing. Now what this is called is actually a bull flag. So what's happening is we had a really good move up. We're coming down quite slowly. And now, and next move is going to be in the direction. Price will come. Make a hollow and just press and just absolutely ride, ride, ride. A reason I'm going to show you this. And bears is the exact same, just on the opposite. We'll just get changed to read. Exactly the same comes down price. Okay, so let's crunch. Show you a real example of just take that, delete everything and get it back. There we go. So we can actually do that over here in this example here. We can actually draw it. We can actually see here that we're starting, we're actually getting a channel was, well, we don't, doesn't have to be, doesn't have to be perfect on every single timeframe. As you can see here, we've got a very quick boom, move up. From here. We'll just extend that out. Sustain. We've got really quickly moved up, stayed, move thought, supported down, down. Just, and what this is, is this channel is just some sideways movement when price needs to give back a little bit and just take its time. And as you can see, what was the next MOOC? Massive Bu, back in the same direction as the original flag. To have a flag, we have a blue channel where the flag and we have another blue channel. And what we do is we actually get an extension, excuse me, from the top to the bottom. So we get from the top to the bottom. And then we actually extended over and we'd bring it to the breakout point, which is right here. And as you can see, that was nearly a perfect one to one. Can actually bring it up because the breakout point was right here and bring it up just a little bit higher. As you can see, it actually was a perfect one-to-one. Now what would be happening here is with you, the stop-loss would actually be a little bit wider rather than with the symmetric we're trying was actually here, a stop-loss on this one would actually be below this bar here. That would be the stop-loss at Target would be up here. Reason being again, we took an extension from this bottom of this bowl bar here all the way up to this week over here, you can see took an extension, same as this line. Took it from there and drew it up. And as you can see, it's exact same design. It's the exact same thing. So then we'd get, our entry would be again above this height because it's the breakout point right above here. Same as a symmetrical triangle. And that's why these are so good, right here, right above the sine. Now that's where we're getting in. That's our entry. That's our stop loss at Saga is although Appia, as you can see, we've got a three-to-one risk to reward, but we actually profited nearly 63% on trade. And as you can see, we actually hit the actual local top. So brought up here was a local top of 57. On the top on this target over here was 57,868. And we actually went to 58,500, which is our only a few 100 more, which is absolutely crazy. And then all of a sudden from this high, if you were to take your profit all the way here and then take a reverse position, you would already be up 20% To this current day in 1234567 days. And that's absolutely crazy to me. And that's why flags very, very, very important. As you can see, if, if price has such a strong move up like this and we stay in a really taught Bull channel. We come down, will have a slight flag. And then we can get a really good risk to reward entry in here and actually take that entry. So that's again, I'll just take this, get rid of everything. And just to come back, let's actually take this and gone of smaller timeframe direction on the daily. I should actually go into the 15 minute and find something. Find something. Let's go. And actually, oops, let me go on to Allie, sorry. Probably better. Even we can see we can see if the blue channels here. Let me just show you guys. It's right here. Getting a channel. As you can see, quite a tight channel. Prices staying quiet, relatively tight within here we're going up, up, up, up. As you can see that, that if you were to take that out, that is quite a taut channel upwards. We're just moving within these type process right here, quiet taught. So as you can see, what do we do next? We have a real taught move. Once we get a little break below this slow. That's where we start to get out. Channel and blue channel. Blue channels, 75 percent chance actually going to break up to the upside. And what do we do? We have a break to the upside. What do we do again? We actually have a beer bright to the downside flag that nearly perfectly encapsulates all the products. And then what happens? We get another break to the upside. This one, even title. As you can see, even title. Even in there, we get a slot, blue flag, just there. Then we get another breakout to the upside. Then we get another Bear Flag, a blue flag. Then we get another break. So the upside. Then we get another flag. Then we get a break to the upset. It seems durability is you can see just look, just look. It's just break. Slot Bear Flag, breakups lot bed fag, big breakup, slot, red flag, big slot breakup, little bit bigger Bear Flag breakup. If lag bigger red flag and it just continuing and continuing and continuing. As you can see, all these profits actually making up very, very large amount. We start doing some profit targets down from there to there. That's why we can understand it made to here because this first Bear Flag, our profit target was from the bottom of this bar, extended out up here, which is what I just drew. Here was the breakout point that we actually break out of this high. Because you can see this high was broken just in there. Decide was broken. This one right here was broken. When up we came down, our stop-loss would be below here. That would be a stop-loss. And then all of a sudden bang, we came straight up to our target and hit our price. Was absolutely crazy to me. And that's why blue flags and bear flags actually very, very, very important in the market. I'm not seeing that I like to go over with you guys is actually wedges. So do I have, yeah, still here is wedges. Now what wedges is very similar to triangles. Think of a wedge. A wedge if you think about before we used to use to keep the doors open, hold back on Monday anyway, you'd put a wedge in between the door, very small wedge. And the way that it works is press will come up, we'll come down, we'll get three touches for wedge, most communist three touches where we get one touch to touch, three touch, and then other will get a big move to the downside, 0, we get a final flag, which is the final move up to the upside, to go out and get one more move to the upside and then a nice downtrend, or get just a nice downtrend. Either 0. This patent is very, very, very, very good. And let's actually, let's actually quickly show you in the markets. I can actually see one right here. So this right here is a wedge, right? She got a wedge. I can draw and just extend it to you just to show that it actually acts as a support. Price comes up like this. Can you see that? This actually looks very much like a wedge will get up, down slightly higher, slot, a slightly higher, slightly higher. As you can see, it's not quite a symmetrical triangle because it's not so two to the right. Just, it's a, it's a symmetrical, It's similar to your symmetrical triangle, but it's slightly tilted upwards. Now what this actually gives you is this on this there's a 75 percent chance the race you're going to get a break to the downside. And there's a 25 percent chance we're going to get a break to the upside. And if we do get that 25 percent chance, it's then another 75 percent chance that it's going to be what I call a final flag. And what are called these wedges because it looks very similar to a flag. If you think about the old school flags. And it looks very similar to a flag and you actually get just one final move. And then what happens? You get a real bearish trend to the downside, as you can see here, we've had a real quick bearish trend. We've had one more quick move. And from the top down over 20% since then. Which is actually one of my favorite strategies to trade. I actually traded a wedge on the downside for here, and I'll actually show you that how I did that. Now let's go on the 15 minute. Now I actually traded a wedge on this chart right here. Actually it was a theorem. So let me swap over to a theorem for you guys. Night she traded a wedge for you here. As you can see, we've got one move. We've got to move. What do we usually do with a trend line once you've got the first move and we get a second wave, we, we connect them and then we just extend it out. What happened? We've got one move, two, move three, move potential wedge. And it does so to look like that wedge shape, if you look here, if you look, it goes really shop, shop down. And if you wanted to, we could start to come across to encapsulate a lot of these processes that aren't weeks because these are all Wix, Wix, Wix. So as you can see, we've got a potential wedge in here, 1, 2, 3. When we do get a wedge, it's usually two moves to, to, to, to either side. So here we get 1, 2, 3 and amines. We'll get one move up, will come down, and then we'll get another move to the upside as you can see. So we actually had one move up, came down, That's our second move. So I actually took a trade in right here. So, so 1, 2, 3. Once I started to see there was another, those around us support coming in right here. So here, here, and here supports, although hadn't seen that one yet. And, uh, so two big blue bars closing on their high. That's when I started to get excited and I said, Yep, these supports are holding. All these supports are holding even this one in here. All of these through here, the price of those are holding. And our took a long and actually made I got out right on this bar here actually is we hit the 220 EMA, the long-term price, and we actually didn't get much, too much above it. And as you can see, the wedge actually played out very, very, very well. The three moves to the downside, One 23, give me a great, great move to the upside, or is actually able to capture a lot of this move right in there. Now let me show you, also show you in a short-term. Short-term which let's just see if we can quickly find one. Even here, right there I see a witch. Right here. We've got a bit of a wedge. As you can see prices coming up. It's also sort of wedge and across. As you can see, it's similar to a symmetrical triangle. With symmetrical triangle is like this. But as you can see, symmetrical strangles more to, more sideways rather than a wedge is tilted to the upside. So as you can see, wedge can be three is usual, sometimes it can be five. So we've got 1, 2, 3, 4, 5 touches, five touches to the upside. A stop-loss would be above here, above LA swing. Once we would abate this price in here, that would be our entry point. As you can see, we take, we'd start from the top to the bottom. That's now our profit target. That's our profits are going to take our short position. We're entering right here. We've got to stop just above the high and we take it here, and there we go. We've actually got a one-to-one risk to reward. Recently restored war definitely goes down it because we were on the daily and for our time frames now we've actually changed to the 15 minute, and I've actually got a different risk to reward. As you can see, you can just spot for wedges on to frown frame on all different timeframes. And the second thing that I really want to point out to you is look what happened exactly. Would we get two moves to the downside, 12 and then we just kept going. You see that? And that's why this is a very important, you can actually make a nice bit of profit because you know, we're gonna get a first which you can even get out around this press, knowing that we're going to come up, reject, and come down just for one more retest. And that's why I find wedges actually, one of my most important strategies that I use very, very, very often. Okay guys, I hope you found that episode very, very important. Going over Breakout strategies and very common strategy I see every single day and the Mach I trade wedges, breakout symmetrical triangles every single day in the market because they come across a very, very common on the five and 15 minute timeframes. I'm mixing my one-to-one mesh moves. I use my 220 FEMA's basement, different Fibonacci levels to actually find the right place in the market to enter and actually have a stop-loss. And also just make sure that all my Restore awards are in place and that I'm never risking more than one to 3%. Thank you guys very much for tuning in. And we'll see in the next episode. 13. Lesson 12 - Moving Averages and Why They Are Essential To Trading: Hello everyone and welcome to episode 12 of the trading crash course. This episode we're going to go over what are moving averages in depth and the swing strategy that I use using moving averages and specifically exponential moving averages. We're then going to go on and explain what is an exponential moving average and the difference between a simple moving average, because those two do have a slight, significant difference. And I'll show you the reason why I actually use exponential moving average. Next, we're going to combine moving averages into one shot. I'll show you why I use TMA on the five-minute jaw, which is actually this orange line. And why I actually used the 20 EMA, but on the one-hour chart, and I'm actually able to display it on the five-minute chart here through this white line. And as you can see, it has a lot of significant as it ends up being a lot of support and resistance when it needs to be. Next, we're going to explain why being above the VMAs is bullish and y being below the VMAs is bearish and as how and why they can act as support and resistance. And next we're gonna go off buying and selling golden crossovers and actually using this pattern to use long-term strategies to actually buy and sell way you're actually buying and selling within a day or two. It can be holding for a little bit longer, even on the five-minute chart. And over the long run, you actually will make money. So I just want to thank you guys all for being here and going through all these episodes. The whole point of going through all these episodes and all these specific structures and significant points is to make sure you guys understand everything before we start to move into anything too, too difficult. Because this is why it's very, very important that you cover a foundation of structures. And you're able to start the prophet of these before you move into anything too advance like Elliot wave structures and even some more advance signals and structures. So let's get into it. The first thing I'm actually going to explain is an exponential moving average and a simple moving average. And to do this, we're going to go over an article here that I've pulled up. And again, if you never understand or don't understand anything, the best thing to do is just to Google something. And one of the first websites that you will go related to any financial data will be Investopedia, as I've displayed in the past. So here we're going to go over the exponential moving average. And I very, very commonly referred to as the EMA. So what is an exponential moving average and exponential moving average as a type of moving average that places a greater weight and insignificance on the most readers recent data points. So if we have a 20 moving average, It's taking the last 20 data points on the five-minute chart stake, the last 20 bars of the five-minute chart. And it's making an average. Both the exponential moving average does, is it actually here has a crater weight and significance on the most recent data points. So anything that's happened in the last five bars is going to have a greater impact than anything that's happened in the last 15 to 20 bucks, which is rotten at the end of the moving average. So the exponential moving average is also referred to exponentially weighted moving average is different terms in it. The moving average reacts more significantly to recent price changes than a simple moving average and SMA, which is something we'll explain. And y. And this is actually specific reason why I use an SMA over an SMA. As you can see, it's weighted moving average reacts more significantly to recent price changes. And the reason I wanted to do that is because on a five-minute chart, price can change quite significantly. And I want to take into account the most recent price changes, which are going to be the most significant to the price right now. So I'm actually reacting more recently off of these offer, these price actions. And that's why I actually prefer and EMA over an SMA. And here it's actually explained how the formula is actually created and everything that you need. And if you need some water, more clarification, there is much, much further, but that is just what we need and to understand the difference between an AMA and an SMA. Then moving onto an SMA and what is a simple moving average? And again, it's just in the name, it's much more simple with just a little bit more simple to an exponential which doesn't have the simple terminology. A simple moving average calculates the average of a selected range of price. So again, we use a 20 EMA on the five-minute char, which is this orange line here. And the 20 MA takes into account the last 20 bars as I go across here. As you can see, right there is 20 bars an hour and 40 minutes. You can see the loss of the hour and 40 minutes of the 20 bars created this one tick of the AMA. And so it doesn't take into account the more recent or the last data more significantly. It just takes an average and just displace it and will die. Don't use SMA's. I just want to explain this and why I use an exponential moving average because I want to take in price, excuse me, that has more recent. I'm significant. And everything at the end does have significant, but it's not, not as significant as anything that happens in the more recent five bars. So simple, moving average calculates the average of a selected range. Always closing prices it is for my always closing. So as soon as the bar closes, that the EMA also closes and it creates a new tick in the EMA. If you were to follow each and every five-minute bar as it comes along. So simple, moving average as a technical indicator and that's what we are. We're using technical indicators, technical and analysis, as we've discussed, not fundamental analysis, which is a much, much more long-term top of game. That can aid in determining the price of an asset and will continue or will reverse a bore beer trend. Again, very significant as it will display if it's being a support or if it's being resistance. And again, if it's being a support, it's looking like a belligerent. And if it's being a resistance, but going into a Bertrand. And again, it just winds up with all of these things that we've said in the past. With again, everything that's coming up here because we've just been through so many times of using the LAMAs. And very similarly and SMA's very similar to an AMA, just slightly, slightly different. And the significance of these, of these amaze and SMA's actually showing the price. And you'll see over the long-term that we start to use them as supports and resistances and supports some resistances and then we turned into long-term supports and move up. So understanding a simple SMA of simple SMA's some ara, arithmetic, moving, moving average calculated by adding recent prices and then dividing that figure by the number of time periods in the recent calculating average. For example, one could add the closing price of a security for a number of periods, then divide this by the same number of periods. Short-term averages respond quickly to changes in the price of the underlying security, while long-term averages are slow to react. So again, what they're saying here is these short-term moving averages, which isn't, which is my 20 AMA, react quicker compared to these longer-term mAs, which is my a, which is again still the 20 AMA but displayed on the one-hour chart. And I'll again explain how I do that. I've actually explained in a previous video, but we can go over that again. It can actually explain down here all these code that I actually used to come up with all of my DMAs and I'll give that to you at the within this course video. You can see it once I click, I can create all these MAs, don't actually display them because I don't need to. But their role, he and I can show you how to code and Maureen untick somehow and actually how to if you wanted to 20 EMA of the four-hour, we'll go over that. So yeah. That's just the understanding of an EMA versus an SMA. And the reason why using EMA is these more recent prosper events make more of a significant difference on the AMA. And as you can see it, it definitely reacts very well if you just took off this long-term support here, easily could have made a nice, nice sum of money, 2% of 50000 to a $100 thousand account. You ate between 50 to a 100 thousand. So very, very nice. Let's take that up. So combining moving averages into one shot. So right here as you can see, I've actually got the 20 EMA 20 day AMA, which actually the 20 periods of the day isn't actually correct. It's a 20 period. So it doesn't matter if I go from the five-minute to the 15, then I've changed the 15. And what will happen is this 20 will be a 20 period moving average of the 15 minute boss. And again, as a change to the 30 minute. The same thing, this 20 EMA who'll be the 29th day but period and the 20 loss, 30 minute periods, and that's how it works. So what I currently want to explain to you guys, and I've actually showed you in a loss loss feeder. This is the 20 MA right here. This line is 20 EMA. And this one here is the 220 in my and what it actually displays is the one hour 20 EMA. And we'll show you in a second how actually get that. But I want to show you that it's true. So you see here between 1630 on the day and 8800, which is 430 and six o'clock my time. So actually see that price came into our 320 EMA, which is my one hour orange line 20. You may, you see when I flick over here to the one hour, you see that in this price period we'll get one bar that will come into here and then bounce off. And if you're ready, we'll switch over to the one element. And as you can see, between 1630 and 8800, which as you can see at the bottom, if you look a little bit down below, right here, at 730, right here, we can see that we bounced off the orange line, which is my one hour 2020 period, exponential moving average. So we bounce sulfur and then we continued up. So you can see that the orange line was a 20 day one ala, which was the exact same thing, brought a here on the five-minute Shaw. Instead of being the one hour I'm displaying on the five-minute Shaw. And the same thing happened but only in displayed him fog minute buzz, which is chunked doubt a fair bit more because one bout one bar of a C on the 1 alpha is many, many more bars on the five-minute. And that's why I display that and read it in the way that you can actually do this here is it's quite simple. So we'll do the math correctly. So how it works is we've got the five-minute bar. So the five five-minute bar. And we're using a 20 AMA to the five-minute boundaries we using a 20 email. So how many five-minute bars go into one hour? So therefore, 60 minutes equals 125 min boss. And since we are using 20 EMA, we use 20 EMA times 12. And what does that equal? That actually equals 240 and that's how we get to the 220 AMA. Although this calculation actually works out to 240 on the long-term, I've actually done a lot, a lot of backtesting and figured out that taking a little bit off in this, in this it would actually be times 11, which would get us to 220, is a little bit more accurate when I'm using the exponential moving average for this particular asset. In In my, in my museum playing against a theorem and every single essay, it's much, much more efficient. Just because I've used it so much. I started with 240 and I noticed that it was just slightly, slightly off and I could change it little bit and actually change it to 220. And that's where I found it was the perfect play. Now again, we could calculate this for anything. If you wanted to get the for our 2020 minute exponential moving average, it would be a similar calculation. Where how many, how many four hours equals how many five-minute buzz equals. Calculate that. How many is it? If it's 12 for one hour, 12 times four is 48. So it would be 48 times 20 since you want the 20 EMA. And that equals here, I'm going to have to get my calculator out. 48 times 20 equals nine hundred and sixty. Nine hundred and sixty would be the period EMA. So I would on the five-minute shot, I would have to put the non 160 EMA to show me the four hour 20 exponential moving average. So I hope you guys actually understand. And again, if I'd use this over a very, very long run, I'm sure had actually changed his closer to 900 because I would find that it's actually a little bit more accurate. Again, the reason being, and I hope you understand this, is because it's an exponential moving average. And it takes into account the most recent price points a little bit more accurately than an SMA. And that's why we actually need to change it slightly. If we're just using an SMA, that calculation would actually work out perfectly. But since we're using an AMA takes into account the more recent price movements and changes that EMI slightly. And again, we need to adjust that by changing the period of the time, so it will start with 960. The next thing I want to actually show you guys is how to actually implement this. So how would I actually implement this white line? How would actually implement this next line of, let's say it's blue on the 40 and actually show you how to implement that. So if we go to trading view and at the bottom, we click this bottom line and we go show. We actually go to the Python editor. Right now, what we do is we open and we start here, blank, new blank indicator. And you start here and delete everything. Start from the stop. What you're gonna do is actually paste in what I'm going to post for you and show a few right here. And then what you'd go is save and actually name my script, whatever you want to name it. And you'd save it. And you'd actually be able to have this forever. Lock ODD go here, excuse me. So we may wanna do is open. I've actually got it here. Oops, open right here. So this is what you need to do. Oops, right here, we've got plot, which is the plot function. We felt the EMA, which is an exponential moving average where we're plotting the close of every single ball which is close. Right here, we can actually put the periods right here. I've got an eight period, we've got a color, and it's in hexadecimal, which zeros? Or if you go all F's, it would be like red and black in different colors. So it's got hexadecimal numbers. I just changed it up. As you can see, very, very similar numbers. You can actually type this in and Google and just go hexadecimal for this. And type that in. And we'll actually show you the exact color you want. Sir. I've got a blue and you can go through here and find the different hex decimals you want and just copy and paste them into here. Linewidth to that just is the width of the slide title. And eight day EMA, I should change this to period because that would actually be more accurate. But for now, that's okay. So we've actually got, and we can just copy and paste these over and over again and only needed changes this number here, the color, if we would like to change the color, and then the title just so we know what it is. So the eight corresponds to the 8, 13 corresponds to the 13 and such. So we've got the 830 in the 20 to 50 to a 100 and the 220. So the two ones that are actually used on UCs in the past, but I found the most accurate. And again, why I want to show you guys the 20 mAs most accurate and the 220. So I don't want to show you guys is if I wanted to add this one here, I wanted to get the full hour. 20 MA on here. Let's actually do this year. So we're gonna do, is we're going to copy, copy this bottom line, and replace it, repeats it again just to make it easy and just go through the line from the start. So plot EMA close. That's right. 220 is not right. We actually need to change this here to 960. And I've showed you how to do that calculation. 960 color. Let's actually change this to achieve. Let's copy 13 does actually not using 13 right now. So we use Control C and just change the color here. Yeah, and we've got that because we're not using it linewidth two, we've got the title essentially changes title to 960, so we know what that is. Then we go over here to the Save or Save that in. And you can see if we're actually got them all here. So then we'll minuses off. And let's just get this back into full, full screen. So here we'll double-click and we'll just turn the which ones we also have double-click on the indicator. Don't I don't want the 13. We use the 20 all the time. Don't want the 50 done with a 100. We always use the 220. And we've got the 960 here who are actually need to just change the view. As you can see here, we've perfectly, we've now got the full hour 20 exponential moving average on our jaw as displayed by this purple line. And if we were to scroll out on our jaw, you can see that it definitely has some significance. You can see here price rejected. You can see again press rejected. Price came close to rejecting, press came close to rejecting, rejected a bit breakout has a retested for a long time. So you can actually see here that a lot of things have happened in regards to this purple line, which is the 20 exponential moving average on the four-hour chart. And if we were to scroll and actually show you, so we show you that. Hits the four-hour 20 EMA right here on the 24th of February at 12 o'clock. It was 20, so that's eight o'clock at night my time. And then again the next day at roughly the same time, but closer to 12 o'clock. So it's showing you on the 24th night in the 25th, nine. Let's go here to the four-hour chart and actually see on the orange, we see that actually happening. And as you can see over here, perfectly here, on the 24th of February, between these two times between 630 and just close to midnight, we came off the 20 EMA we came down but came back up the next day which is the same time the next day, just for full been now, as I said, the 25th of February came back tests the price and came down as I said, we came close these next couple days. That's why I'm showing you this is because it's actually very accurate and you don't need to have every single job all at the same time. You can actually have different chance I use Y is the five-minute chart. But again, I can actually see what's happening on the different averages, on price, on the moving averages. So we'll take that off for now. But I just want to show you if you have a, if you ever do some back testing and you find that different moving averages and more accurate and say actually do it and he do some back testing and slightly changed it up because it EMA is taken to more recent price. So let's just where did it occur? Let's get back like this cerebellum. All right, the next thing, so I've showed you how to combine and above and below moving averages. So as just a, we've gone over this in the policy law, but being above the moving averages, we can even bring this back in, bring them for our check-in and even recombining the one hour just for some significance. And now we've got 1, 2, 3, 4. So we've got different for different balls here. And when we start scroll out, you can see the significance being above and below, as you can see being below the exponential moving averages. These moving averages react as a resistance or resistance, or resistance, or resistance. And price moves down off of them to being below when you start to be below the moving average while happens and when you're very, very far off the moving average depressor bounced up to the moving average. We'll come back to the average price that's happened was who come back to the average price? We'll have a quick decline because a lot of people, they've sold off right here. They've got out of their price very, very far down. All of the sudden process come up 15 percent in a very, very short amount of time to the average price. And then they'll get back into a, into a short position and just write it down. Because once we get back to the average process, a lot of people going to get out, especially any people. Along from ikea, they're going to get out, get out, get out, and then process is going to continue, continue, continue and old who here we start to break up through one DMA, DMA, and three AMA. So now we're up on one or two or three MAs. We're still below these EMACS. You can see they act as long-term resistance. And we've resisted, resisted and nearly perfectly resisted here. It's actually go down, down and down. And so here you can see that actually act as a quite a bit of resistance. Now who's scroll back not that long ago because price was very, very, very bullish for an absolutely extraordinary amount of time. As you can see, especially on the 20 EMA, we've cut below. And then here we've gone up. We hit that. We've supported, we went up. We supported, we went up. We support a woman. We supported. We went out, we supported on the short-term EMA. We came back, came back, came back to a more mediocre AMA supported photo because we were not so fast that quickly needed to come back to the more media like EMA for a longer time period, came up, came up, use these shorter-term time periods that came down, retested. One of the more longer-term time periods wasn't able to get through fall below. Now we game and use a shorter-term time period. Again, up, up, up, came back, retested some longer-term time periods using this shorter-term time period. Now you go into a bit of resistance. We get down, hit the shorter term time period down short-term time period down shorter term time period down children time period. And as you can see, it's just acting as resistance, resistance, resistance, we break it. Now it's acting as support. Support, support can go sideways. Yugoslavia, sucrose, always, never get a breakup, support breakup support breakups, a bullet break up support, and as you can see, it just acts, acts, acts. So we needed to see in the long-term, especially with Elisa maze. I'm going to just take it off. Some of these other ones off, not to confuse, it will take this one off and the a 100 because it's the only two that I use. You can see that once we swap, we will below these AMH for little bit. We try to get above when I will too. And as we properly break now we're just using the support break up support now we've touched it. Now we are going to continue, continue up. And that's why a lot of these LAMAs who act as support and resistances, depending on how they're working and how process reacting. And that's specifically why I actually use the exponential moving average again, because the most recent price reacts and you're able to get a more perfect price gauge and understanding what process is going to do and how to do it. And a more recent full. So moving on, price, you're going to go over here into buying and selling cold and crossovers. Now what a golden crossover is is when we can actually draw this. So a golden crossover would be when the exponential moving averages actual cross. So if this orange line was to come down, come down, come down. And instead of going up yet, it was to go here and go down. This price right here is what I would call the golden crossover. So let me change this to the orange price. They'd see here. So say we weren't able to see this and this price continued down, continue down, and we crossed over this white line right here. This right here, the price right here is what I would call the golden crossover. And it's a very significant price. So osha right here, we'll go back to the last crossover that has mean across server for awhile, back, back, back, back here, right here as, as he can see, the two exponential moving averages crossed paths. That would actually mean by So right here. So once it crossed at 655 in the morning, which was this red bar right there. So not red ball would be the signal to be buying. So let's just say at the end of that ball, you would a purchase. And now you'd be holding. And you'd hold and to the next crossover happened. So right now there hasn't been a crossover and you'd still be holding, would be long on this bar up here. And now likes extended out to the right, right. Now, if we were to be holding, we'd bid up 12.45%. If you're trading a 50 or closer to a $100 thousand account, what I'm treading in B up $12 thousand. That's absolutely insane for one day and 15 hours a day to day trade, you'd be up $12 thousand. Absolutely, absolutely insane. That's many months profit for a lot of people, $12 thousand. And that's a type of potential you've got here. Initial timeframe because you're using golden crossovers and these different exponential moving average strategies, the swing strategy profit. You can see actually wouldn't so, and to this moving average here actually came down and cross back over. That's actually the cell signal. And to get out. So here we can actually scroll back, scroll back here, and actually show you another time we go to Golden crossover, the lost homes here. And we follow the moving average all the way back. Next time we go to and crossover right here, this is the price. When did that happen? We go right here, goes straight down rather than this green bar right here. Running this green bar right here. That's where we got the signal to go. Sure. Let's say we were to go show at the end of this bar, we go shoot right here. And the next golden crossovers right here. And that's how you get out signal. What was the price difference between when we entered right here and when we would told to get out right here, made 4.5% in less than a day. If you were trading at a $100 thousand account or 50000 mini, I'd like to try it. A $100 thousand account that's $4,500 in less. Then one day and then you can flip your position and you would have gone long. So you would have got out of your short here, 4.5%, flipped it, gone long and bring up another 12.5% on the long and still being in your position. And let's just say that price now decides to come down here. You would have got out with close to 10% profit. So in three days you would have gone from a 4.5% profit plaza, 10 percent, 15 percent profit on a $100 thousand account that's $15 thousand. Absolutely, absolutely insane with some of these strategies. And that's why incorporating one-to-ones exponential moving average order size and all these different strategies into one. You can find which one actually works for you, what you like specifically, and how actually want to structure your trades to make sure that you're making the most profit. If you want to use short-term strategies and using these some of buying the golden in selling the golden crossovers. This is more of a steroid swing strategy where overnight you'd be holding and you'd just be putting in trailing stops. And you'd be watching position quite clearly and putting in some alerts at night. So if you've got below this price, you'd be getting an alert soon as you get up. It probably would across AMA get out a position and things like that. Broke she holding for a day or two and actually making a lot, a lot, a lot more profit. So again, we can do another one where this one here was an absolutely crazy profit. You can just see here the golden swing. The Golden Cross was right there. In this period. You have right here we cross. Then when was the last cross? When was the next cross off to that? Crossed over here. We went down, down, down, down, didn't cross there the price when above board and get the crossover down, down, down, down. We've got the crossover all the way down here. Absolutely. In saving of the first-price over here. Next forms, over here, as you can see, close to a 20 percent profit. And in how many days was that? Was that in a two days and made 20 percent again trading $50 thousand and made $10 thousand trading a $100 thousand, May $20 thousand, a very, very large amount. And simply to me, ridiculous amount regarding how much you trading and to make it in such a short period of time. But that's the potential of some of these strategies. And you can see you do get some, some shorter term crosses. So here, even here, say you've got short here. And then you had to get back out, back out it here because we've got the cross and we got the cross again. There's nothing wrong with that. Look, you've got the cross. That's the cross. And you had to get out over here. You're going to lose 1234, 5% at best. So let's actually calculate this and it wouldn't even be 5%. So square here and you would get out, you'd have to get out here would be a 2% loss of 0. You take a 2% loss. You take another 2% loss here and make another 2% law. Cia taken 6% and then bang, you just make 15 percent afterwards. And that's a potential of this strategy. And as you can see, you can see processed onto raging range in here, up, down, up, down, up, down. We're not really moving too far with sort of moving in this sideways sort of area would just gone between here and between here, as you can sort of see just with the price. And if you can distinguish that you can take, maybe you take the first one and you take a low-speed, don't take the second event, take the third or fourth. But then you take the fifth. And you brought that down for a nice 15% profit. And that's what I'm trying to show you guys it again, with all these different strategies as combining them is going to help you make a lot of profit. But specifically using these exponential moving averages and taking different timeframes him. So again, if you want to use the formula or the one day and just showing you if you want to trade the one hour that you want to get the one day exponential moving average height. Actually calculate that because I've shown you the maths behind what you need to do in being able to import that for yourselves. I'll actually give you all the code here at the bottom that I've got for all these DMAs, you'd be able to change them how you want. Because depending on when you switch to the one hour, this is going to be that the ICT, our average of the price or 13, our average. And when we go to the day's going to be the eighth day of the 30-day. So it changes as it changes when you want it to. And that's why these things are so specific and so perfect because it changes with how you want to do it and what needs to be done. And actually changes with your strategy. Because as you've adopted, understand our change it from 220 to 240, you can actually adapt and understand and use these skills to her knee in and find what works better for you. So I'm glad you've tuned into this episode. I hope you've enjoyed, have gone through a lot of content. I would hope that you actually go over it twice if you didn't understand anything. Thanks very much for watching. 14. Lesson 13 - The Relative Strength Indicator and Why It's So Good: Hello everyone and welcome to Episode 13 of the trading crash course. This episode we're going to go over the RSI, which is the relative strength index. And we're going to take a deep dive into this indicator. And the reason why I use it very, very much and actually used it today in a trade. We're actually going to go over what the relative strength index is and explain what these lines mean and how to interpret them. We then go into go over bullish divergence, embarrassed divergence, which are the two most common ways to use the RSI and which was actually able to show this reversal down here. Let's get started. Moving into the RSI. What is the relative strength index? The relative strength index is a momentum indicator. Again, momentum is a leading indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overboard or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator. A line graph that may moves between two extremes and can have a rating from 0 to 100. So just an understanding going back, what they're saying is RSI is a line graph that moves between 0100. And as you can see that it is currently what's happening right now. And it displays the momentum of an asset. Indicator was originally developed by these two gentlemen here back in 1978. The traditional interpretation and usage of the RSI and that values of 70 or above indicate that a security is becoming overboard or overvalued. So 70 and above. Let's just go over to the RSI and explain what that is. Getting the RSI full screen here. But just by DO taboo topic, these bands here is when you click on them, see I've got the upper band is 70 and the lower band is 30. And that's actually what they're referring to here. The values above 70 indicate overboard and maybe prompt for a reversal. And an RSI rating of 30 or below indicates an oversold or undervalued condition. So let's move over here and actually understand. So below these lines, above 70 and below 30 indicate areas of value that we want to start looking to enter into the asset. As you can see here, we started to get into this below 30 area. We went as low as 21, and then we had a reversal. Now what's happening here is we're starting to park in above the 70 area. And as you can see, where we're starting to push back down. And now we're going to see the reaction that's going to happen. Even just moving back here, we can see again coming into that over 70 area and then pushing back down. And the same in here, getting into that over 70 area and then having a push-down. So that's why the RSI indicates momentum in either direction when it starts to get into these oversold areas above 70, we're looking to sell. And when we're getting into these oversold areas, were looking to buy. Okay, so let's get out of that and just keep going to the very popular indicator. It's actually one of the most popular indicators. And again, the reason that we want to use things that are popular is because a lot of people are using them. And if a lot of people were using them, then there's going to be more momentum in that direction, more people buying because of that reason. And the more money that flows in a particular direction, that's which way the stock is going to move them. That's how you make money. So that's why we want to be using these key takeaways are assigns a technical signal about bullish or bearish price momentum is only plotted beneath the graph. The price, asset and essays usually considered overboard when it's above 70 and oversold when it's above, below 30. So oversold below 30, overboard above 70. So we've also got the formula here. We don't need to exactly go into that. Let's just have a line is actually calculated. We need to understand what the RSI is actually doing. To the RSI will rise as the number of size of position a positive closes increases and it will fall as the number of size of losses increases. And it oscillates between overboard area, as you can see and the oversold area. So we can even just mark this in here and just say oversold. And as you can see that being too much buying, we need to come down as being too much selling, we need to go up. Okay? Now, the two main concepts for the relative strength index is actually bullish televisions and bearish divergence. We're actually going to go into that now. And what these actually mean. So the primary reason you use are Assad on a stock. Owasa is important too, in making sure that indicate his readings of properly understood. Anything. Child 30 percent and 70 percent, we need to start looking for reversals in that direction. Now, let's move on to our aside divergences. A bullish divergence occurs when the RSI crates and oversold reading followed by a high, low that matches corresponding lower prices, lower lobes. This indicates rising bullish momentum and a break above oversold territory could be used to trigger a new long position. And that's actually really explain this right here. So a bullish divergence is, is actually, we've actually got a bullish divergence in this area right here, and let's get into it. So here we first see that we're starting to get a series of lawyers who are getting one low, two, low thriller. We're actually getting a wedge. Getting a wedge. Now we're starting to get a series of lawyers and we're not sure. We're thinking that there is some type of bullish momentum here. These are getting 123, but we're not sure a 100 percent and we, again, we need what we need. We need confluence. I like to trade with areas of influence. I'm looking for priced give me areas have confluences to say Yep, this multiple, excuse me, indicators lining up right now to say yes, we need to take a position long. So coming over and actually looking at the RSI and I'm actually going to zoom in. To this area right here and actually show you, see we've came into here. We were, we were up in this price here, and then we had an extreme sell-off. We had one, never had to. Massive boss, big boo, Big Bear trend bars closing on their lower. That's a very big, very sign of bearish Irishness and we need to be looking to get sure. Fortunately, this is three o'clock in the morning and I was asleep, so I wasn't able to see the signal, but it's something that I saw in the morning. And what did we get? We got and-a-half first big swing into that below 70 or below 30 area. As we can see, we've started to go below. We need to be looking to buy, but we're not sure what's happened again. So what's happening is as you can see, on the RSI, you're actually getting, you've got a low. Now I've actually got a high-low. And now you've got another higher law. So you've got your first slow, then you've got a low that's above that. If you've got a high or low and then you've got another high-low surprise is done to increase. But if you actually bring these lines down here, she actually bring it like that. So from here, we bring this down. We can see we made our first law right here. First of all, number 1. Next, from this price down here, which made a high-low, we've actually come down here, made a lower low in terms of price. Here we've made a high-low, we've made a low. Now we've made a high-low in terms of price. We made a low. Now, we've made a lower. Now what's happened here? We've made a low, we've made a high or low, and now we've made another high-low. It looks like we're getting bullish momentum. But what happens here? Bring it down and price, we'd get another lawyer that goes below the previous law. See that we've got a low, a lower, lower, and lower, lower. But what's happened on the RSI? We've got a low, a high or low, and another high or low. What we're getting is this is divergence. Price is going down. But the RSI indicator is making a series of higher lows, whereas price is making a series of lower loans. To understand that, we will go over and just explain that again because this concept can be one of the most tricky, but it is the most important just to understand. So as you can see, this is an indicator. We're using these just like we uses the boss right here. We've got a low. That's the lowest price at RSI hit over here. Right there. The lowest price that this one came to. Next swing at a price just above. So we call that a high, low, high, low, high, low, high, low. And then we've got another high or low. And then what do we have here? A high-low. What do we have here? A high-low. Oops. What do we have here? A high, low. And as you can see, it just keeps continuing on. What do we have here? Another high or low. As you can see, price is now going up, going, up, going up, going up. Yeah. But down here, process doing the opposite. We're going down, going down, going down, going down. But the RSI is showing us the momentum is increasing. The relative strength index is not making lower lows. It's making higher lows, which is showing that people are coming into by relative strength index, higher average, then that people are silly. Let's remove those drawings. Tricky. Do you guys understand that? And we really were really scrolling here just to actually be able to see the higher lows and the lower lowest price. So we can actually even draw that out over here. Let's get purple, this pink to display for us. So what would getting on RSI is like this. Oops. We're getting swings higher. And the lows higher. As you see here. Swing, swing, swing, swing, swing. But what's happening on price? Price is actually doing the opposite. Going down, going down, going down, going down. And then all of a sudden we get a spring because we're getting a divergence here. Let's change this color, see, understand it. That's red. Okay, so here we are getting increasing higher lows, whereas on the cell we're getting the opposite, reading lower. But what this is telling us is the buying pressure is increasing every time we go lower, mobilize. Every time we go lower, more strength. Every time we go lower more strength than what its meaning as it, the longer-term bulls are accumulating. They're accumulating, they're accumulating and all of a sudden bang will pop out. And as you can see exactly on this chart was an absolutely perfect trade. Because we've got it right here. As I've scrolled in. We've got the low. We've got a high-low, a high-low, and another Hailar. And as you can see, this divergence, we're getting divergence. Price going up, going up, going up. You can see the slope is increasing every single time, whereas the price is going down, down and down. So we're getting the opposite. See how this slope is increasing. The slope is decreasing. What means is every time these we made a lawyer here, there's more relative strength. We came down for another low. There's more relative strength. We came down to this lower, much more relative strength. And then bam, we get this big move up. Look at, if you would have by in this area here, said Look out how these higher lows down here correspond to this area in here. So right here in this area, it's telling us that we need to start to buy because in this area is starting to make high lows. In the oversold area, which is the below 30 as we've shown as these lines of code below, below, below. But they're making higher lows each times it's done, it's done it three times. We've done it three times HE if the wedge, so we get an average price even if we bind near the higher, let's say we were to buy right at the top of this. We waited for this range to break out and we got in over here. All of a sudden we're talking about a two to 3% profit day. The reason being is here, the reason I can come up with a profit target is you see three bull trend bars closing on their high. It can actually make a one-to-one measured move target. Bang cloner. Tro C control V cloner. And they have a profit target. Actually got out in these bars in here, right in here. And she got out right there just a little bit below because they're so we stick up and when we came down and got out that same price in here and look at that. So all of a sudden you bind down here because you're getting RSI, bullish, divergent. Now you getting in into these processes, then you are getting one-to-one measured move may have an exit target and all of a sudden you're getting a profit of 2.9% because you've made areas of confluences are three pushes down a wedge. Okay, we needed to look for more, couldn't get through much of the art of the moving averages. Let's use our size of relative strength on every single sell off is increasing. Yes, we went down, we had a big sell-off initially. That's fine. And then came down for another big sell-off that the relative strength increased. We didn't get a relative strength decrease, which would have meant that as more people selling, then we went up a bit and we had another decrease down. After that, people bought even more. There wasn't a decrease. There was a decrease in selling those and more people selling those more people buying. So we've got the opposite. And as you can see, this would have been a perfect, perfect, perfect play and make 2.5% quite easily end up having a profit and an exit target using D3 candles in here. And by the end of the day, you've actually worked out to have a great profit target. And although, you know, you went up a little bit more, you don't need to worry about that now you can create another one-to-one and trying to find the opposite. Right here in the RSI, we're actually starting to go into the oversold area. So this oversold area is starting to creep up. Maybe we make a lawyer, maybe we would come up one more time. The price comes up on small, we get a divergence where the HIV we make a lower high in RSI, but we make a higher high in price. We come up to here. But then the RSI finishes lower. And then all of a sudden we have a move down and I moved down on the RSI, which can be very common. So that's, that's a great example of actually perished of agents which actually happened this morning, nine o'clock in the morning, which was, I was looking for this trade and as a guardian over here and I use this one-to-one mission we have target to get out over here. Again, I put a hold for a little bit longer. We can see here we've got golden crossover. So there was a bit of more confluence and then we started to get bouncing off the 20 EMA. Then we've got now a golden crossover and everything's looking bullish but multiple boom, boom, trend bars closing on the high, which is a sign of strength. So again, you don't need to take a 100 percent out of the macaca to win 70 to 80 percent of that trade. And that's what the native take you don't need to be following when trying to make an extra scent on every single trade you need to take that good chunk, understand where your wrist reward lives. So I had a good target, had, excuse me, restore award set since we came up with this new high my stock within this area here. And that's how we work. Okay? So that's, that's bullish divergence right there. As you can understand, price was coming down, down, down, but our Assad was going up, up, up. We're actually getting different indicators. They're diverging ones. One showing us strength and one showing us weakness in price. But that divergence can actually be a signal. Cooperate into different areas, different ideas. Again, once you see this, if you actually go in here, you can see that we make, we make a low here and then we make a slightly higher low. So at the high, low. And that's when you need to stop looking because in these areas are sized looking good and press down. He has also looking through to getting multiple Bolter and bows closing on the high. Yeah, that's fairly good sign of strength at the end of the day. So next we'll actually go over and we'll find a bearish divergence and we'll go over that, which is the exact same thing where price is actually going higher, higher, higher, but the RSI divergence actually going lower, lower, lower such sewing. Assign that every time we making higher prices, that less people are selling, more people are selling. And processes, I'm going to go higher for too much longer. So let's go over that example. Okay, I've actually found a chart on gold right now. So we're looking at gold on the couch, as you can see over here. The reason I couldn't find one Bitcoin and cryptocurrencies is because they're moving up so high so it quickly, there isn't any divergence and it sort of shows that price is going to continue higher, so needed to move on to another asset. And again, it just shows that everything moves on. All four assets and all different cryptocurrencies, forex, stocks, commodities. So I'm even going to show you here you can actually see a wedge right here. You see, you see one push and push, two, push, three, push through, go up three areas of pushes. Actually make a line, connect the first and the second and just extend it and we get the third one. So now we've got one, push, two, push three, push him. If you actually use these pushes and extend them up to the RSI. We've got one push year. Started here, then we went higher in this area here. She made excuse me, aloha. And then you can see in this area, oops, this area over here to the right, we can actually move up and find another area. And there's just a little bit lower. So as you can see, we've gone up, up and up and just want to double-click on RSI just to make it bigger, just to show you that these areas are lower. So all of these three areas. So you've got one that was there, then you've got number two that was there, and then you've got number three that was there. So as you can see, you can draw a line and connect them downwards. Just like that. Although that one's overextended, you can see one to try to come up, didn't beat the higher came back down. So there are getting a trend to the downside where this line is actually pushing downwards here, getting first, down, down, and here we're getting the opposite. So as you can see, we're getting a dog vengeance. If you look at these two yellow lines that diverging direct, she got a lot that one not that one is going out, that these two lines will never meet as they're going across. And the reason that this is important because we start here and we get a real big push again, above the 70 line, anything above this white line here, these overboard and needs to be looking at selling. So you can see anything above the white line. Anything below this line. You're looking to buy. Anything above this white line you're looking to sell. So you can see we've got this push, go to big push up into the overboard area. Then we came back down. Then we go to another push higher into the overall area, but a lower low. So we've got a high and a low or high. And then we came, and then we came up and we made a higher price again for the third time, but the strength was diminishing right here when we came at this process was a lot of buying pressure, as well as the RSI came into the overboard area. Then for the second time we came up in price. But you can see those less strength. If there was more strength, we'd be seeing the line come up to here and this red line being pushed up to here. But no, we didn't. We saw the lines actually getting lower and lower and lower. We started here with down started to you and dad went even further. As you can see, we're getting a divergence. One, push two, push three Bush. And every time we're going higher and higher and we came hire, people, are selling, people selling more and more and more. There's less buying strength. Every single time we came, less buying strength of this buying strength, we came here, we try to come up again, less buying strength. Try to come up again wireless buying strength and look what happened. We had a super-quick move to the downside up in this third push, 2.5%. Then we went sideways, sideways, sideways and we just crashed again. We went another, another further, nearly 4.5%. She makes 7.5 to 8% just on that single trade there. And that's basically a 1.5 day trade, very, very quick trade. And again, we have an error can influence we use the wedges. We had one push, two, push, three, push. Then we looked at the RSI to see is the relative strength increasing. If we go to another strength and we came up to here 88, then this wouldn't work. It would not work because we're getting we're not getting divergence we're getting are so high, high, high, high and higher, higher. And if it's following this line and the two yellow lines is the exact same, It's not going to work, but as you can see, we're going higher, higher, higher than these. But these buyers are getting less strength, less strength, less strength every time we come into this oversold area. And even here, as you can see, an extra super stress signal was we couldn't even reach this black line. We couldn't even breeches black area to get into the oversold and bang. We had a really quick sell off because this strength was not true. We saw a lot of pushes holding, holding the 20 EMA. But no, we need to look at the RSI and we can predict in the future that if we see here we get one push to get to Bush who can already stop me thinking about a wedge. We say, okay, there's going to be third Bush. If we're not able to pass this high in here and come up to that area and come on out dam, we're going to look for a sell off because not only be getting a wedge, wedge talk which is level of influence, now we're getting some RSI. Rsi telling US cities into the overboard area. Plus we getting big bear trend bars closing on their lower. You're getting below this bar. Go to the white line, 220 AMA. And that's a perfect trade. And as you can see, we came, brought up the 220 AMA came off the 20 emails, bounced off the 20 EMA for a while, bounce off the 20 EMA for a while and then just crashed down, bounced back of the twin and a down, down, down. As you can see, there's an absolutely perfect trade. And the reason was, was bullish or bearish, sorry, this one was bearish divergence. And we've shown you a case for the bullish divergence. Okay, so I hope you guys really enjoyed the episode. We've gone into a deep dive of the RSI and how it can be used. This is exactly how I used it and I showed you how I used it today. And I also showed you the opposite occasion. We use it for the bears side. Now practicing this is going to be ideal for you because learning and anticipating that third push and that third wedge. And that's why I like to talk about wedges, which really helps you be able to make a lot of money from these traits. Thanks for watching and Kuwait for the next episode. 15. Lesson 14 Part 1 Fibonacci Retracement: Hello everyone and welcome to Episode 14 of the training crash course. I'm glad to present to you this episode. We're going to be going over Fibonacci replacements and Fibonacci extensions actually uses very common in my trading. The reason I use this is because it lines up with supports and resistances, and also it gives me some entry and exit targets that I can use with other confluences such as one-to-one measured moves, triangles, wedges, and actually get some entry and exit targets that line up with other entry and exit targets. And it gives me more confidence to take my trade. So first we'll go over fibonacci is, and why it's used. Then we'll go over Fibonacci retrace payments, what it is, targets and levels. Then we'll go over Fibonacci extensions. What is it? Targets and exits. Let's get started. We're going to start on what are Fibonacci? Fibonacci retrace payments are popular amongst technical traders, which is what we are diabase on key numbers identified by a mathematician called Leonardo Fibonacci in the 13th century. Fibonacci sequence of numbers is not as important as the mathematical relationships experts expressed as ratios between the numbers in this series. In technical analysis of Fibonacci retrenchment is created by taking two extreme points, usually a peak and a trough on a stock chart and dividing the vertical distance by the key Fibonacci levels, 23.638%, 0.250%, 61%, 0.8%, and a 100 percent. These levels are identified, horizontal lines are drawn and needs to identify possible support and resistance. So now we're going to actually explain what that is. And now coming over to trading view, actually going to move over into this black area. So we're just going to have an area where I can sort of draw for you guys. So the first thing that I spoke about, it was a peak and trough. So let's start. We're going to start with a low and we're going to move to a higher. Let's just say this is where press started down here. And this is where price finished and we moved along. We've roughly went somewhere like this, but on average we went in this slide. Now coming over and actually going to this part over here and clicking, we've actually got Fibonacci retrenchment and Fibonacci extension levels. Now I've bookmarked both of these. So I've actually got down here, as you can see, this is called fibro traceroutes, so Fibonacci retrenchment. So actually click on that. And it's between a low and a high, as it said, a lawyer and an extreme. And what I do is if price moved from a low to a high are actually extend this. I click here and I extend this out to the high here. As you can see, I'm starting to get some numbers filled out on the right. As expected. We've got the 78.6786, we've got the 618, we've got the zero-point 85, and we've got the 0.382 and they were all mentioned over here. 382.5.618. And we've also got some other ones. I also like to use the 78.6. So as you can see, this is the, this is the starting point and this is the ending point. And then we've also got some extensions up here. We've got an extension called the 30, 23.6 and extension called the sixth 18 again. And saying here, we've got the minus 1. Now what this is initially showing, we've got the box between here and here. If we were to copy and paste that and actually create a climb, if we were to do that. But we've got a one-to-one box. So here you can already see that the Fibonacci retrace meant lines up with the top of one-to-one measured move strategy. So that's some type of target here. Whoops, got another target and a second, third target here. Now the key of this level is as price moves up, up, up, and it gets this high, we're looking at horizontal support levels, which we mentioned, which I mentioned in the article, to actually start to look to buy and look for an area for entry. My favorite area of entry is in-between the 0.5, which is a 50 percent retrace moment, and the 0.618, which is 61.8% retracing. The reason these assert often very useful is because it aligns up with Fibonacci. And since Fibonacci is a mathematical equation, a lot of statistical bots out there, technical analysis bots and even technical analysis traders which with a lot of size are actually using this strategy. And when there's a lot more people using the strange same strategy, a lot more money is funneling in one direction. And when, when money is funneling in a single direction, then price goes in that direction. It's a simple, simple of supply and demand. So these are my favorite to hear, the 0.50.618 press. Once it reaches these extremes, I'm looking to buy once we come into this area and get an entry and actually look for an upside entry here and move to the upside. Now that would be for a long. At the exact same thing would be happening for a short. Say we did the opposite where price started here. And we slowly move down again, we started here and price slowly move down. I'm just using this line as an average price. We don't need to have fixed bars, but we will go to a perfect example in a moment. So since the press started here, that's where our initial Fibonacci replacement begins. It since press ended at the button. That is where we extend it out too. As you can see, everything is now flipped. We've still got all the numbers, 78.6, the 6.5180, and the 38.2. But they come on the opposite side. Oops. So now since we're going for is short, we can show you a one-to-one. Again, that one-to-one from before would be from this one down to here. We copy and paste that create a clone of this. One-to-one extension. And as you can see, it comes down to this one-to-one extension. So that's showing you on the short side. So when the price comes down, once prices moving quickly down, I'm expecting and looking for a buy in this area here. So that price comes up, tests this area here, and then continues down and I get a really nice entry with a small amount of risk. Again, where would my stop be? It would be at the previous swing, which would be here. And I'm getting an entry right here, which is very close to my stop. So it gives me a really, really great for through reward, which is another reason these Fibonacci levels are a great way to get some entries with confluence levels. And it also gives you some exit targets. We've got three exit targets here. We can first go for this 23.6, which you see who actually works out quite often. 6.6180, which is actually my favorite, which you'll see wakes up very, very often. And a one-to-one target, which is also quite common. So that gives us some entry and exit points on every single one about treads. Just get back to let go of this. And now let's actually move into an example with these two with what Fibonacci retrace payments and the Fibonacci. Both the Fibonacci, what we're going to start with is we're going to start in this area here, and we're going to look, gone to look here in this area. Now what I'm looking for is price actually made an extreme lawyer. Now we came up and I'm off the seeing a lower a lower low. I'm looking for a type of inverse Head and Shoulders pattern. As you can see here is the head. We've got the left shoulder, we've got the right shoulder, inverse Head and Shoulders pattern. Now, again, what am I doing? I'm to going from the low. I'm going from the lower, all the way through the high and taking a Fibonacci extension of that price. Yep. So I'm showing you here is the low, here is the high. And get a grip on Fibonacci two. I'm going to start at the low, and I'm going to end it this high here. As you can see, price came up, came up, came up, made an extreme, came down. Where did it come down to? It actually came down to my perfect level, which is between the zero-point five and the 600. As you can see, this is my box for buying. We'll go 15 minute by that came into the box. We go 123 on the fourth, Bob, we were out of the box and we'd never came back to our price. Again. Where would I stopped with being a stop would have been down here below the last swing. So we would have got a great entry, would an entry right here on this line. And we would have had to stop, which would have been an exact percentage. Of 1%, we would have had a 1% stop. And if he actually look, so we've got our entry target between 0.50.5 and the 618, we've got a perfect entry target. And now look if you actually look at our extension target, we not only we hit our first extension target, but we hit our second extension target actually perfectly, as you can see, if we go one week into extension target and turn right around and made a new low and would have hit our stop. So as you can see, I would've started to scale out on the first, on the second. And once I've seen a couple of books, Bibles closing on their low, that's what I know to exit and I'll go to perfect. Manage on my trade. Would it go I want to go to third out here, a third out there. And then I would have exited the rest out below here. And I would have got, and I'll risk of 1% and a would have got an average reward of two, potentially 2.5%, as you can see here I've heard would go down closer to the middle exit point. So as you can see, we had a risk to reward of 2.5 to one, which is perfect, especially in day trading. And this trade would have happened within an hour and a half. And we would have risked one to 1%. So would a brisk $500 to make 100000 $250. So actually a great risk to reward on that trade. And that's why the Fibonacci, the trace is such a, such a great thing. Now here, after seeing that we potentially made a bit of a wedge, we're actually made 123 pushes down. After a wedge, we usually a one push and we get the second push up. So after seeing this, I'm quite bearish because looking to the left, look at this cross section through here. Very, very, very bearish. We've got supertype, bad trend channel, wherever, just move down, down, down. We've had one bit bouba, close bar, one baba, baba, baba, baba would just not getting a series of such bad baba, baba, baba, baba, baba, baba, baba, baba, baba, bad, bad, bad, bad, bad, bad, bad, bad, bad, bad, boo, boo, boo, boo, bad, bad, bad, bad. Absolutely very bearish. It's not looking very, very strong over here. Just as much as we're getting some of these mirrors and these 0.5 to 600 advertisements, I'm actually looking to take the opposite side of this trait. So again, we've got a high, we've got a low, we get our extension toga and we do the opposite. We start from the high here, we extend down to the low. As you can see, now we've got some entry targets. She Tonga is always between 0.5 and the 6 a. As you can see, this is my entry target is entry-level and never had an exact level, will have always have a zone, especially when I'm using Fibonacci. As you can see with this Fibonacci, it's actually been used as confluence, as you can see here. What line is this here? We've got the 220 EMA actually act isn't your XHR resistance. We've got one bar, two bars were getting bear ba ba ba ba ba, ba ba, ba ba ba ba, ba, ba, ba ba. So as you can see, we've actually resisted off of this line as much as it's not a perfect, it doesn't put one perfect wake into the level. That's not what these things are. It's a zone. Not only if you've got a confluence level of hitting the 220 and actually acting as a resistance. Now you can see that we've got the Fibonacci retrace mid-level acting as a resistance where the 0.5 to the sixth 18 level. What I'm always when I'm trading, I'm always looking to enter between the 0.5 and the 608. The reason being is as very hot probability that we at least touched to the 0.5. And we sometimes continue to the 6.8. And again, it just gives me a greater risk to reward because y, where would my stop-loss be? My stop-loss would be above this loss wing, which would be up here, which would give me a closer risk to reward. So if I was to enter closer to where my stock would be. So rather than having to enter here and having a stop-loss of 5.5, 6%, I can actually enter close to the 0.5, closer to the 618. We're getting it, splitting it in-between and actually have a stop-loss of 2.5%. So I'm actually reducing my risk by over 50 percent, more than 60 percent, which is to me, it's actually crazy. So if you can start to get some of these entries that reduce your risk and you can get some gray exit targets, then you actually, basically, you're getting perfect or near perfect trades with minimal risk and great reward. And that's basically what we're looking for in the long run. So as you can see here, we hit, we hit our initial target, He our initial target, and we came back and actually made low or low in here. Once I started to see some of these bars, like we go to a big wick into the area and a bull and closing near its higher bouba, Baer, bob Oocha, Oocha, Oocha, Oocha, or would a solid to get out in this area and just being really happy with the 2.5, 2% trade. Especially when you don't have all these targets ready. You can act as the low as one target, the second target, third and forth. But here, very, very happy with distributed, especially since the risk is already 2.5%. That to take it 2.553, 3% reward would actually be perfect, perfect on this trade. As you can see, this is the Fibonacci retrenchment and levels that shows you the retrace moment. If we were going extremely down, how much we going to retrace while to come back. Again, we're coming into this 0.5 to 61 eye area is the most important for me. And again, the same here. We start from a lower extend to the high. Where are we coming in? 0.5 to 600 area. And here we're actually coming up to some extension dog gets. And these levels always are always working. And even you can come across here. And just as you see on CSI in extreme move like this. Look at that. Look how tight that is he getting bad, bad, bad. And it's barely moving. It's just sorry, tightly down and getting a couple of Bayou Buzz and just complete crashes down. You can see already here that price is not looking good. We're looking very, very bearish. So you missed out on a lot of this action and you are looking in here, once we would get a wedge, some type of wedge 123 in here, we're looking for two moves up. One. Which we're looking for two moves up. So 1, 2. And since in, since we were so tie over here, since this was such a tight bed channel over here, we're definitely going to get an extension target stopped from the high, extended down to this low. Bring it across. And as you can see, what if we hit the 0.5 to 608 level, even here, we actually whisked off the 64 nine. We walked in, we came down, we whipped in week 10, week din, and then came down and as you can see, we even hit some targets here. So even showing you another trade that I just, just pulled out here, look at this, extending this out. So again, we're bringing it from the high here and doing it from the lower. So we're looking between these two areas here. As you can see, the price came in in between 0.5 to 608 level price came in between. We're looking between these two areas here. Yep. So we've came down, we came up, we came into our 0.5 to 618 level, and now we've got some targets. So here's our zero-level. He is, he has a potential first target. Here's our Rufus target is our second target. And absolutely look, we hit the 608. Again. We're doing from here to here, as you can see. And then we've got the extension targets down. I don't want you guys to get to get confused. And as you can see here, we hit the 0.608 level. Down here. As you can see, look at this tread. Let's get the risk to reward and actually get this calculated. So let's say you would enter between 0.5 to 618, excuse me. And we've got our stop. I stopped would be just above the previous swing, which would be right here. As you can see, we've got a 2%. Let's bring this down and actually use our second target here, which we've reached as our target level, which is very, very common for Fibonacci, as you saw when we did over here. And in this area. And we did the Fibonacci, we actually reached our level. We reach the exact same level. We went to the 0.5 to the sixth one a, and we extended to the 618 over here. We've done the exact same thing on the shorter side, and as you can see, we've actually got a risk to reward of 2.74. We risk 2% to make 5.5%. Again, if you tried to get $50 thousand account, that's over $2.5 thousand. If you're trading a, a $100 thousand account, that's $5,500 that you've made on that single trade, which is absolutely mind-boggling to me, especially when you can actually make that trade within a 24 hour period, less than a 24 hour period, and have this type of risks, rewards, as you can see, once you've get a roof swing from a high to a low or a low to a high, you can start to get some extension targets out. As you can see, this was a very, very, very bearish move. I've got my extension targets out between this area here, as you can see between here and here, I've got my extension target out right here. Venmo level between 0.5 to 618, and then had these extensions down here. And as you can see, this one actually here where we came across and actually perfectly hit it. And that's why these levels, uh, so, so important. Also want to show you guys some more examples. So here we're going to do another Fibonacci example because I wanted you guys to get root grasp on this and actually understand and use this for yourself. Now here we can actually see we're moving sideways. We move sideways and we had a bit of a breakout. And we went from this press down here, and we actually moved up to this high, this is on the four hour chop. They can see we've got a low here, we've got a high. We can get our Fibonacci, retrace me, start at the lower, extended up to the high and actually have a level in here. As you can see, desert went five to 600 level, which is where I'm interested in buying. Is this price in here. As you can see, once we started to get sell-off, started to get some big sell-off buzz where I'm interested in buying is between 0.5 and the 608 level. The reason this is is because mathematical bots, they using the fibonacci mathematical equation to actually interpret this data and understand where prices going. They can see the price is actually very, very bullish because we've had a toilet bowl channel. We've moved in the four I would try for our very, very foolishly only having a few weeks and a few bad boss, but ultimately having on very, very large amount of strength here. Once we see with starting to get a retrace moment, we're still expecting the bull trend to continue. We're expecting the bool2int trend to continue because of how strong this trend is being raised singly. Since for expecting the bull trend to continue. And we may have got Addison positions up here and we're looking for re-entry. We're going to use the Fibonacci retrace blunt tool to find a great entry. The 0.5 to the sixth 18 level is the most optimal level, in my opinion, has the highest probability, the highest percentage chance of making money in this game. So between these two levels is my old entry point. The reason being if it's forced to much lower, the probability is quite low that we're going to continue in the belligerent. And to much higher doesn't give me a good enough risk to reward that will actually work out in my favor. So between 0.5 and the 6.8 is the optimal level to get the entries. And as you can see, we've used multiple examples. Continuously changing charts are used the five-minute chart with three or four examples before. Now we've actually spoke to the four-hour chart to show you another example. And we can actually find one and actually move over to the right here and find another example. As you can see, this trend was very, very bullish. We've done a Fibonacci retrenchment and we've hit the 6.8 and we continue to move higher. Actually just move this one across. We can still keep it on the board. We'll just go like that. So use gsutil or understanding. We've got a low to the higher and we've got a pullback beginning. What can we do? We can do the Fibonacci retrace, but from the low, extended up to the higher. And what do we have here? We have an entry point between the 0.678 to the 0.5. And this entry point would have been perfect as if we had one big bear bar coming into this area, we had another beer bar that came a bit lower, but it actually buh-bye ended on it's high. We had a bare by a bull bar and we never came back to this price for a while. And we came to retest this side. And we can actually have a bit of a wedge, a 1, 2, 3. So once we got above this height here, actually we're looking to sell. As you can see, I've got a risk to reward here. Entering on the 608, I've got a stop-loss below the low. I've gotta sell off. At the high end, we're going to have somewhere close to 1.646, 1%, 14, 21 percent ratio. So you can, you can win Nearly, you can lose one trade, you can lose two trains and when one and they haven't even risk to reward on this trade here, as you can see. So you can see we've had a 0.5 to 6.8 retrace front here. We had another bull trend. We've got another 0.5 to 608 retrace ment. And again, another bull trend. As you can see, this is why the Fibonacci retrace ment is so, so useful because you get some really, really good entries. You can use them with some other confluence levels. Blue bars closing on their highs near the LAMAs and actually get a really, really great entry and a great exit point as well. 16. Lesson 14 Part 2 Fibonacci Extensions: Hello everyone and welcome to Episode 14 of the training crashed growth. Next we're going to go over Fibonacci extensions and what these are. Then Fibonacci extension also use the same Fibonacci numbers and Fibonacci ratios. But what are you actually use for Fibonacci extension is I'm actually looking for an exit target. So let's say I use a Fibonacci retrace meant for my entry target and I'm looking for an exit target. Let's just say price initially started and we moved up, up to this price here. Then we've got to retrace meant that came down to this level here. And we started to move up. Where am I looking to get out of this trade? I don't want to get out here. I'm not ready yet. So we've got into our trade over here. In this area. What the Fibonacci extension is, is this two here trend based Fibonacci extension is, I've actually got to bring, I've got to start from the low, bring it to the higher, and then bring it down to where the retrace meant was. So there's three points in this one starting from the low, Going to the higher, bring it to the retrace midpoint and actually getting some extension targets out here in the future. So let's actually show you this. We start here from the low. We start here from the low, extended to the high, and then bring it down to this area here, which is witches who are support. And then we extend it up. As you can see, we started to get some levels the same, the 23.63238 to the 50 percent, the 61.8, the 78.6, and the one. And now we've also got these levels up here, which is the 1.618, which is actually our extension, our main extension target for the trend based extension of Fibonacci. So just to explain what these numbers in here signifier, what this signifies is this length here from this low to the high. As you can see from the lower to the higher, you can actually be represented by this in-between here. As you can see from this gray to this gray. As you can see that that is a one-to-one of of this area in here from the lower to the heart. As you can see. And the reason that is, is what it's doing is it's starting from the lower, it's going to the high. And it's projecting this box off of wherever this lower ends up, which puts it off to here. And that's where it ends up. Sorry, because are actually understanding that. So once we've got what we need is we need a low. We need a high, and we need a support. Once we've got that, we extend, bring it to here, and we bring it down to where the support was. And now we've got a one-to-one target, which can also be used with the one-to-one measured move. And now we've got another 608, which is our 618, which is the actual Fibonacci number. And the golden rule when, when there's actually see shows and they forall that follow that spiral, it actually follows a 608. Retrace my spiral pattern. All the oldest sunflower or the pedals on a sunflower. Actually, Always, once you pick them off, they always end in a Fibonacci number. The reason being is everything not true in nature goes of brown Fibonacci and again, everything. What this, what trading is is not true trading that true selection. And again, Fibonacci and natural behaviors come into all this trading. And people have actually been able to make specific treaded strategies, see that they work have entry and exit targets. And now there's a lot of volume around these because there's a lot of bolts and a lot of people trading this which increases volume, increases demand, and we get price increase as well. So as you can see, we've got from the lower to the higher down, and now we've got some extension togas and it's the exact same for a short. So we have a sure that we have coming down. Then we have some top retrenchment and we're expecting it to keep coming down like this. We have our Fibonacci replacement. Now for a short stop from the high, bring it to the lower, then bring it to the resistance. Now we have our numbers through here, 65 and a 50 percent, 38.278.6. We've got our one to one, as you can see, to do from here to there, copy and paste and actually extend that down. That anything that isn't exact from here, extended out from disloyal to there. It's basically from dislike standard out. That's a one-to-one. And next, sexually, uh, 1.618 extension target, which is one of our main goals for this. So as you can see, the same thing happens on the short side. And here we're just going to move on to this shot. I'm, we're actually going to use it. The most bearish pattern that I see on this chart is over here, where we've got a rude taught movement. Down here. We're really taught movement in such a short amount of time and usually price more flows like this. Workflows like here. As you can see, price moves and price slowly resolved. Then it goes sideways and it moves up and it goes down, then it moves up, then it goes sideways and it wears down and down and up a little bit. As you can see here, there was none of that was just down a little bit, up, down, up, down, a little bit of doubt. So it's very tight bed channel. So we're looking for a bear trend. As expected, what we're doing before we started from the higher, we extended it to the lower and then we brought it. To our resistance target where we went completely down really, really fast. We came up, we expected it to keep coming, and this was our level. So first we can use our retrace payments, actually find 0.618 to 0.5 level and start to enter on these levels. And then what we're doing is we're looking for an exit target. So we get our Fibonacci, we start from our high, bring it to the load and we extend it to where we made this resistance. We bring that out. As you can see, what have we done here? We extend that out. So we've gone from here to here and extended it to here. Now, we've got a perfect one-to-one. What's happened is from this high all the way to this load. If we do control C, control V, and then we extend it from here, from where our resistance was. We've got a one to one tog, as you can see, a one to one, we have got an extension and we actually came perfectly to this level, which is why you can see bots and people and people are trading this. Again because it's Fibonacci related and it's an all over in nature. Because of this, it's very, very common toga, as you can see, price came right into here. We picked off and we would have got a perfect trade. So we would have entered in the 0.5 to 6.8% retrace moment. And we will go to a ยข4.5 profit and would have only brisk 1.9%. So we would have got a 2.5%, 2.5 to one risk reward. So we could have lost 2.5 trades, 11 trade, and we would have been even so. That's why I absolutely love the Fibonacci extension and Fibonacci arbitration is because it gives you some entry and exit targets for where to take some traits. Now, we'll actually do one for the long side. We can even do one down here. Let's just say we did a Fibonacci from this low to this higher. So we're doing it from this low to high. And then we're starting to get a bit of movement down that Fibonacci from the lower to the higher, as you can see, zero-point six month eight to 0.5, we got very, very close. Could've started lettering just a little bit above here. So we would have a perfect entry. Then what we do is we use the Fibonacci, bring it from the low to the high extended there. As you can see, now, we've got some Fibonacci levels. As you can see, if we did a one-to-one from this low, from this lower all the way to the high control C control V, Control, Copy and Paste, and then extend that from this low. A one-to-one. There we go. We've got a one-to-one and we've got our initial target over in this area here. Now as you can see, we actually kept going and we went quite strongly through this area. But you can instantly see that this one-to-one line up with 220 AMA or the one out of 20 EMA. So that was a level of confluence and would have been my first level of getting out. Again. If I'm entering here and going up here, I would have had my first stop down here. Am I exit target would have first X to toggle. It would have been here since I had a confluence with 220. Again, I don't really care that it went so much higher over here. I'm worried about I. Making a high probability trade and be looking at confluence areas where I can get out. So I would have been happy with that trade. But as you can see rash, you go to one to 61, 8% extension toga. And we could have got out even higher in this area here. So if we were to get out, if we would have first get an entry somewhere in here and have our stop. And have our stop just below there and have that exit target at the 1.618. As you can see, we now we nearly had a three-to-one risks or reward where we could lose three traits when one and we would still be even. And that's why I love using the Fibonacci retrace moment and the Fibonacci extension tools together because you can actually get a retrace meant target. So it would go from the high to the low. We get a retrace meant target right in here. And now we've got an extension target to work with from their, from their, bring it down to the lower. And now we can use some of these targets to get out. And as you can see once we started to hear here, we started to move sideways and we did start to go up, which we've got another one that 26, 180. So we've got the 16, 18 to 61. I will go to the 36, 19, which is actually one that it actually came up to. And here we've actually got the full 0.2323, which isn't so so important. These ones are the 36182618, the 16, 18, and the 608. As you can see, the C6, one of the most important and it is the golden ratio and the most important across nature. And as you can see, a lot of people actually tried this in real time. A lot of people have actually programmed bolts that once is a really tight move like this, like what happened here? Really, really taught, taught move though actually program a bot to go from the higher to the lower and start entering at the zero-point or the 0.3820.50618 and actually start to get some entries in here. And then they just they use their normal stop. They use the stop above the recent high, and they start to use some of these extension targets down. And that also would pump in another extension target like this to see what levels of influence, what's lining up. Are we getting levels of confluence of 221 hour 20 EMA, we get in confluence of another zero-point to 36 retrace MET level where we're getting a confluence of the one-to-one extension toga and that's essentially what all of this training is, is funding of confluence. Again, here, I can just find another trade instantly just because it was such a taut move. To the downside, can see moose trading. Over here. It goes up, it goes down, it goes up, it goes down, it goes up because down here, this is what happened. It went down a little bit up, down, up, down, up, down, up, down, up, down. Very, very tight trading instantly we bring a replacement from the top, bring it to the bottom, and then extend it just across. As you can see, instantly, perfect trade to insert 0.5 to 608. Getting in here, moving down to the zero-point one, having a confluence that we're heating the 221 hour 20 exponential moving average, getting an interim, the zero-point five. Getting back out at this low, we would have had a 2.85% profit in a matter of minutes, in a matter of an hour, an hour and a half, and absolutely crazy trade. And that's why I like these extension togas so, so much. And retrace meant targets because they work. And that's what we want. We want at the end of the day, we want a high probability trades that are going to work for us. Again, I want to go, I want to provide you guys even more value and just keep providing you with examples. So here I've got another example. If I was to zoom out a little bit, as you can see, prices moving up and made a lawyer. And now we made another high. We're expecting it because this was quite a tide pool channel here. We're expecting high process from this move. Now, what can we do? We can actually start to scroll into this verve over here and actually use the Fibonacci retrace mint and Fibonacci extension tool to actually find some entries and some exit. Initially, even before having entries and exits, where would I stop? I stopped goes if you're going for a long since we'll be gone for long below or the loss swing low. Whereas the loss wing low, the last swing lower is below here. Stop would be one tick below this price, which is actually right here. I'll put a line to actually represent that. That's where my stop would be just a little bit below that WIC again, because this is our recent swing above this last higher, and now we're coming down. Next thing we do is we get arbitrary assessment tool. We start from the bottom, we extended up to the top, and we just bring it to the left, making sure we've got rock star and the right targets here. As you can see, the 0.5 to six from eight is the initial level that I lied up. And I go across like this because that's where I'm looking to enter. I'm looking to get an entry of the 608 right here. And I'm going to put my stop below the last swing low. So already know what I'm buying and where my risk is. Now, I need to come up with a reward target. I can start to use some reward targets as the previous higher. I can also use these other targets that the Fibonacci retracing provides for me. What I'm actually going to do is use the extension target where we start from the low, we go to the higher and then go down to where the most recent law was. So let's actually do that. We start from this slow, go to the high, and we bring it down to this price. Right in here. As you can see, we've got some extension targets where the iPhone 8 lines up with the last high, which is our first target. And then we've got the 78.6 and the one-to-one where the one-to-one would be my second target. And it actually lines up with comes into a new contact with the previous target. So I potentially could start top soldered here and finish it here. So as you can see, this one-to-one actually lines up with, if you get this extension stuff from the low, start from the lower and go to the higher. Actually copy and paste that and then extend that, bring it to this layer over here. Bring that to the lawyer and extended up. As you can see, we hit that one-to-one target. So we've got our first exit target at the 608, since it also hits the previous side. Then we've got our second target at this one-to-one. And what would be our third target, if you guys remembered, would actually be this one to 618. That would be our third togas. As you can see, we would have gotten an entry brought now, we would have had an inch or point because we'd be entering between 0.5 to the sixth 18 as we've got. So we've got an integer point over here. And now we're looking for our first exit target, a second exit target, and third exit target. And we know exactly where we're going to get out. I'm gonna get out rot on this yellow line in here. So as you can see, we can just get rid of everything and just see what we've drawn. We've gone from the low to the high withdrawn extension targets is our first target. Second target. And that target, and this is where I stop would be. And that's why I love the Fibonacci retracing and extension targets so much because it just gives you a clear cut trait tells you where you should be entering, where he needed to be exiting, wave stop-loss needs to be. And now the trade needs to be happening. You can leave your exit target right up here where your exit targets all in here. And you don't even have to manage a trade. You put your stop loss, you put your exit targets, and you just go from there. So I really hope you guys enjoyed this video, this being one of the most formative videos for all of you guys. I'm really glad you stuck around to tune into all of these lessons, and I hope you appreciate them. On to the next one. Cheers.