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Ultimate Master Course for Technical Analysis

teacher avatar Ultimate Masters Academy, Maximise your learning.

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

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

Lessons in This Class

10 Lessons (1h 52m)
    • 1. Technical Analysis - Introduction

    • 2. Understand the Different Chart Elements

    • 3. When to use different Time Frames?

    • 4. How to recognize Support and Resistance?

    • 5. How to read Candlestick Patterns?

    • 6. How to draw Trendlines?

    • 7. How to trade Moving Averages?

    • 8. How to use Fibonacci Ratios?

    • 9. How to use Bollinger Bands to stay with the trend?

    • 10. Where do you stop loss or take profit?

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About This Class

Have you always wanted to find a reliable winning strategy in investing, but you don't know where to start? Maybe you’ve already heard of Technical Analysis and maybe already started your journey in investing/trading, but you still can’t find consistent trading/investing results?

Then this Ultimate Master Course for Technical Analysis is absolutely for you!
This course will go through with you thoroughly where and how to start applying the right kind of Technical Analysis in your trading/investment setups and avoid making costly mistakes. Using a step-by-step approach, this course will teach you how to go from a Beginner to a Pro in reading technical price charts and devising a reliable and well-thought-out trading decision, significantly increasing the odds of your win-rate.

And the best part, you don't need any prior experience to get started! Start executing profitable trades today using your new skills in Technical Analysis. And especially for new beginners or intermediate traders that have already learnt a thing or two from somewhere else … forget what you’ve learn previously and come here with an open mind. There are tons of misleading strategies out there all over the internet. Learn how to use Technical Analysis the right way here, and avoid making costly mistakes.


Our team of highly-experienced traders have put together this course to help you learn about Technical Analysis the right way, ground up via a Step-by-Step approach. Follow our material taught in the lesson plan diligently, and you will find that your technical know-how in tackling and reading price charts will improve significantly. You’ll soon be able to read price charts and come up with a judgement on the overall price trend and devise trade setups much more objectively than before. While there are tons of indicators out there to choose from (and often many can be very misleading), we only use what are most reliable and carefully curate to make sure all that is important is covered in this course.

By the end of this course, you will be able to perform Technical Analysis on any given chart, and be able to trade effectively on any markets whether equities/cryptocurrency/bonds etc. You will formulate trade setups much more objectively, and be able to form a much clearer judgment when to take profits / place your stop-losses etc. and also anticipate future price movements based on reliable price patterns and indicators.

Not many traders know the right combination in applying Technical Analysis for your trade setups, and if you can finally master it, you’ll realize how helpful this skill is in analyzing and reading the markets.

Throughout the course, we will provide you with all the charting tools & trading strategies that you need to kick off this journey in Trading and Technical Analysis. You will learn how the best performing Technical Analysis strategies that will help you identify the best trading setups. This will give you a very real insight actual live trading, and help you manage your risk/reward much better in handling your trade positions.


This course is aimed at people that are interested in Equities/Bitcoin/Cryptocurrency Trading & Investing. We’ll start from the very beginning and work all the way through, step by step. If you already have some trading experience but want to learn more and improve your technical analysis skills, then this course is perfect for you too!

If you are an advanced trader or an individual that has advanced knowledge in technical analysis, this course is also recommended to polish your Technical Analysis skills and check if your understanding and methods of application are correct.

By the end of this course, you will have a solid grasp of how to perform Technical Analysis on any Stock/Cryptocurrency chart. And, you will have absolute confidence in executing good and profitable trades. This class will surely enhance your trading skills to the next level.


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Meet Your Teacher

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Ultimate Masters Academy

Maximise your learning.


Ultimate Masters Academy (U.M.A) is an Elite Masters Academy dedicated to teaching you highly-useful professional skills to supercharge your career and empowering you to finding your own financial freedom.

Widely-recognized for its best-in-class bite-sized lesson concepts, the Ultimate Masters Academy makes sure its students fully-maximizes their learning in the shortest time possible, rather than having to attend long lengthy courses.

Courses facilitated ranges from 1-on-1 interactions to large scale groups of 100+ participants, including; live in person classes, webinar style classes online and live online full courses.

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1. Technical Analysis - Introduction: Hi, good morning everybody. Welcome to the ultimate muster cause for technical analysis, we are very excited to be sharing with you this new course. Basically we wanted to publish is cause we help those of you who are just trying to figure your way. I'll in plying technical analysis in your on investment decisions. Maybe you've tried something you've learned over the internet and it doesn't seem to really want, right? You try different various strategies, various technical indicators that you've used, but it doesn't seem to really get you a wrong foot hole on well-thought-out investment decision. So over here in this whole course, we are going to break down the steps we use on a very systematic structured basis step-by-step. How are we going to look at the markets? How we're going to analyze the markets from a technical angle. And this, I'm sure would definitely be very helpful, especially if you're open to learning how to really analyze the markets from a more holistic angle. Applying different kinds of technical indicators will definitely give you a better, stronger picture in analyzing the markets, be it equity markets, bond markets, crypto currency markets, all kinds of markets out there. Technical analysis does work. And I'm sure this will definitely be something that is very useful for you. So very excited to have you on board. If you are keen to stick around, stay tuned for this whole course, will be updating this course with new information whenever we get hold of any new ideas that we want to be sharing out there will be constantly updating this course. So very excited to have you stick around, see you. 2. Understand the Different Chart Elements: Hi, welcome to the first chapter of this technical analysis series. And this chapter I'm gonna be walking you through the various elements of the software that I'm using. It's called trading view, trading view.com. And you type that into your browser. Basically you can see it's the same software that I'm using. Now it's a very powerful software, especially if you're looking for something that is free. This software has a free and paid version if you're looking at reversion of a trading software than I would recommend this software, it's very useful to a clean, has all kinds of technical indicators that are available for your own use. Now there's also a paid version that has more access on more indicators out there that other external people would upload insight. You also would get access on those additional indicators. But in actual fact, I think the free version is already good enough. So if you're looking for something that's three, this trading view software is something that I would recommend. Now there are definitely other softwares like interactive brokers Think or Swim, or any other things that you can use that gives you the same kind of technical analysis setups. Then by all means you can use those as well. But I think for the purpose of this course, I'm going to be sharing with you my setups, my technical analysis using this tool here. Alright, now for this first chapter on, on understanding the various chart elements, especially if you're new to trading nude investing. I'm gonna be breaking down the various components you see on my screen. On the right side, left side, topside, all kinds of details of the software for you to get a better sense of how to use this tool. Okay, so maybe start on the right side you see this entire area here is called the watch list. There's watched Liz allows you to put in all kinds of tickers, what we call tickets at the various short names over here. So like for instance, SPX, SPX, if you just mouse over it, it's showing your S and P 500 Index. Look at QQQ. This is the invest call, QQQ, nasdaq Index ness that trust it looks at technology stocks. The VIX is your volatility SMP index. Basically you can just input your watch lists with your favorite names. You can even put down the individual equity names or even FX named bond names, even commodity markets, even oil, et cetera, goal. You can put all of those stuff inside here. So this part here is called the watch list. You can even name your own watch lists. In this case, I will just call it watch lists. Right now, in the top of this screen you see over here basically you input your symbol or your ticker. You can put anything you want if you're looking at a particular stock may be you are looking maybe Spotify, Spotify. You just type in Spotify. You can see the various options to choose from. If you're looking at the nasdaq stock, just click on it and it goes over here. Now as you scroll the child, you can just do an app scroll down, scroll it expands the view of the chat. Yeah, so it is very simple. Now, notice that my chat here is candlestick chart. If you, you know, you want to change a candle stick into a line chart or an image, or you can just do that over here and gets you all the options. What kind of chat you wanna go for. Now, I usually go for a candlestick because I think it, I think it gives you the easiest view to look at, especially if you're on a daily timeframe, then the channels that lets you see the intra-day price action. Where is it opening higher? You have a spike in the day, you know, on the top side or the bottom site, that candlestick gets you a very clean picture. Alright? If you want to zoom in deeper, instead of a daily chart, you want to go down to the hour, each hat on the minutes chat or even a second shot. You can do that here and the button on the right of the ticker. And if you want to compare two different shots together, you can also do that. You can also do that here. This is good, especially if you want to do an overlay. Maybe Spotify, maybe against the S and P 500. Yeah. We just spy. And you can see this overlay here like that and you can see the co-relation. Ok, so you want to just get rid of it, just press the Delete button. Indicators. Lets you put in all kinds of indicators. So let's just put in the moving average. The moving average, and it appears out, let's say you want to add in the 200-day moving average. Just change this accordingly. It appears right away. Yeah. So indicators lets you get your hands on all kinds of indicators here. Now there's also some other buttons, select financials, templates, and all that. But it's not that important. I think for this whole course, I'm mainly gonna cover not just technical indicators, but also how we interpret various technical indicators as they cross over one another and how to use them together in combination. Okay, now on the left-hand side, you get a whole new set of buttons that it's very useful as well. Now starting from the top, you have this thing called cursor's right classes instead of a cross, maybe you want to change it to a dot. You can use a dot as well. Arrow, you raise it up to you. It's your own personal preference. Now, I'll just stick to using cross. This line basically allows you to draw various lines. I think what's most useful is the trend line. Maybe you're on a chat right now. Oops, sorry. You want to just quickly draw a trend line. You can draw a trend line like that. Now you see this thing is showing us arrows. You're going to get rid of the arrows, right end distributed dot. And there you go. You can change the color of the trend line. Instead of rate, maybe you want to put it as white, okay? Right, yeah. You can just click on it and press control on your keyboard and then just drag somewhere else. Gets you multiple trend lines right away. Okay, we want to get rid of it. Just press kick on it. Present Remove button. Yeah. Very simple. Ok, so that's 44 lines. You can even draw in full lines to see what is the information here. It tells you that from this low point to this to this high point, the angle is 51 degrees, right? That's 89 bars, and the magnitude of the move higher is 79% higher. I'm going 79.23%. So that's what we call an info line as well. Trend angle just tells you what is the degree is just now we saw that was 51 degrees. It shows up here as 51 degrees as well. Yeah. Ok. Vertical lines. Horizontal lines. Maybe if you want to just see what is the pivot high point and you want to mark it on your child. What was this what it, what is this price point you can see over here on a child, it's 29 to 99, 8-0, maybe for the low point as U, I just click on your keyboard, press control, drag it down. You can see two to 1.32. Okay, Mary, intuitive. Now moving down a, there's many different other stuff. Parallel channel, you can draw this and then like that, it's a parallel channel. You can also use such a tool like that to see what is the range, the trend range. So it's pretty useful. Now as we go down the list, we also have other tools like Pitchfork, Fibonacci, retrace MAN, extension. Quite a couple of useful stuff here. What's most commonly used would be the Fibonacci tradesmen and Fibonacci extension. This are very powerful tools. We are going down in deeper detail on using this Fibonacci tools. And there's also some various drawings you can use here as well. And you can draw rectangle just to see the range. Yeah. You can also draw things like, whoops. You can also do things like triangle, CAF WAS curve or even your own path. You know, you can do that as well. If you wanna do some annotations on your child, you can also use this t sine here. You can put in text. Maybe you can see you can write in all time. High. Yeah. And market down or shut. So it's pretty useful. You can also draw various other patents. Hidden showed us patterns. You get waves. You can also use that. Now I'll be going through it. Waves especially is a very powerful Gould as well, especially for understanding the direction in the context of your price patents. And you can also add in long positions, shop positions, let say you gotta treat setup that you want to go for. And maybe you can just adjust your stop loss and take profit accordingly. And it shows you what is the risk reward right away. Yep. So this is also pretty useful to mark on your chat. I guess all in all, this is a very useful tool, very useful software I've explored using different softwares out there. Indirective Broca's Think or Swim Dickinson is very good as well. If you are looking for something that is really something that's assessable right off your browser. Trading view is definitely something that is very, very useful. Yeah, so, okay, i, if you look at the bottom, it shows you the timeframe. How long the chat is. Is that if you just go for five-year chart shows you the five-year chat is you yo today, you know, let's say you want to look at SPX and the, all, it shows you the all time price action on the S and P. Very, very powerful, dates back all the way. And yet, if you're on a different time zone, maybe you're sitting in Los Angeles, you can just or wherever, Vancouver, Anywhere, New York, wherever you can just click on it. And it changes in your own time zone. Yeah. So for me right now I'm actually in Singapore, so I am putting it that's UTC plus eight, Singapore. Okay? So if you have your own drawings, your own annotations in one shot and you wanna save it. You can actually just safe as your own template and then you can make reference to that again. All right, so in a nutshell, I guess that's the key things you need to know about Turing view. And we're going to be conducting all technical analysis on this software. So sit tight, Get ready. I'll be running shoes on the key indicators in the next few chapters. Alright, see you. 3. When to use different Time Frames?: Hi, welcome to the ultimate master cause for technical analysis. Now today's topic, we're gonna be focusing on timeframes. Okay? Because I think that some of you here that I'm not exactly sure whether you should look at a smaller timeframe or should you look at a longer-term timeframe? Should you be looking at a daily chart or should you be looking at an only child, or even down to a 15-minute chart, what should you focus on in your trade set-ups? So the key thing is that you always start from the big picture right here we start from the big picture. Now when I'm in big picture, try looking at the monthly weekly chats first. The monthly weekly charts first give you a longer term trend, a longer-term view, and then zone into the shorter timeframes. So tried to go by this approach, looking at longer-term chats, then going down to the shorter term chats, the shorter term timeframes, and then you get a better sense of a trait setup. Okay, let me give you an example. Let's take a look at the SPX. Now, the SPX, let's go down from the monthly chat for us. Now, the monthly child get as long as a timeline as you can, and then you see the overall trend. Okay, so let's say we're looking at the long-term timeline of SPX. And you see since the 19 eighties until now, It's in an up trend, right? Yes. Show their bouts of period here that are having some form of a correction by the overall trend on the SPX, on the longer timeframe is going up trend. Okay, now if you squeeze it down into the weekly chart, it's also showing an up trend. So the bias for this trait setup is definitely already pointing you to go long on the SPX, right? So the key thing now is that there are clear on this trade on the SPAs, then maybe zoom in onto the smaller timeframes. So let's zoom in on our list setup. And you see how does the, our Lee trade pattern looks like. And then go in deeper to the 50 minute timeframe and then get a sense of the overall trend. So I would say on a shorter timeframe, it does look like the price action is sort of like having a form of a correction right now. And even though the longer-term trend on the SPX is pointing higher, alright, the shorter term timeframe tells us that this aspects is having a form of a correction is trading sideways right now. So maybe you might want to pick up a position when price is perhaps testing these laws here. Okay? So at least you are in line with the trend. You are going long on the SPX, but you are using a shorter term timeframe to guide you what is perhaps a better entry level. Now you always want to catch things at a discount rate. So when SPX is trading at a discount closer towards a more realistic target, not the moralistic target. Why do we point out in this low here is because price did traded at that zone before. But then it rebounded from here. It traded down to the 3209 level, and then it had a rebound higher rate. So it's likely that if this downward momentum continues on a shorter term trend, likely we should see it face some kind of support of buying pressure in this tree to 09, similar to what we had on the 25th of September. Okay. So basically that's about it. Shorter term time-frames is used to check your traits, make sure that you're getting in at a better entry level and on the longer term time-frames is basically just to ensure that you get a good sense of the overall trend, okay, zone in from the larger timeframes first and then go into the smaller timeframes so that you choose your set-ups Weiser, okay, now this is just an example on the SPX. You can also look at other markets. Maybe you can look at the TLT or you can even look at a crypto currency markets always start from the longer-term trend to decide your overall view. Now, when it comes down to the overall longer trend, maybe instead of looking at over 30 over years, maybe you might just want to zone in on the past five to ten years as the overall long-term trend. So that you don't get too caught up away with too long a period of time, right? So in a nutshell, that's the idea. Focus on the long term first and then zoning on the shorter term time-frames. Okay, I hope this session has been helpful today. I'll see you in the next chapter. See you. 4. How to recognize Support and Resistance?: Hi everybody. So for today's session, we're going to be covering on support and resistance. Okay, this is very common topic usually talked about in most technical analysis course. But I would say not many people really fully grasp the power of this topics upon resistance. Because even though it's commonly taught, it is by far probably one of the most important indicators. Price action tool you need to use to get a good grasp of market price action and how the various support and resistance levels will affect future prices. Okay, so in this session as well, we're going to be forming up your understanding of these two terms, support and resistance. So that when it comes to you analyzing your own charts, you know where to draw the supply resistance. We wanna be able to grow the same level as what most common people would be looking at and how they will be drawing. Because if your lines are different from what other people will perceive or look at a chance, then it wouldn't serve any purpose. Okay, so we want to be drawing the same support and resistance lines most market participants would be drawing. Okay, so let's quickly dive into the charts. I'm just using Bitcoin as an example. Bitcoin is definitely a very technically driven market. A lot of the price action is driven by technical setups. And therefore, if you are trading bitcoin, actually it works the same for equity markets or any other markets out there. Bitcoin will just be using this as an example. You see how powerful support and resistance will determine the price moves. So let's plot this chat on, on Bitcoin. And over here we have a chart, scenes 2015, all the way up to present day. But let's dive into the area before the big crash. Okay, let's, let's look at the overall price action first. So resistance basically means that price is trying to break new highs, but it's finding difficulty breaking your Heinz. Alright, support likewise would mean that prices finding difficulty to break a key price level, and hence we call that level of support level. So let's take a look at the price on Bitcoin. Now for what you see on the screen, the price on BitCoin has been in an app trend, right? Just for this time frame that we're looking at. So what are the support and resistance lines? If you're looking at a chart, let's give you three seconds, maybe 321. Ok, very quickly, let me just draw it out for you. Alright? So definitely this line here would be a resistance line when prices was trying to break above this line back then when he was trading at about 1205404000984284 was difficult to break, right? It has the 1s, test it twice, and then on its tri, finally managed to break up. So this resistance line would then become what we call resistance TEN support. Okay? This is what we call a resistance tensile force. That means a key price level of resistance, which prices was finding difficulty to breakthrough. Finally, we managed to break it true in this candle here. And then this level, 2984 now becomes a support level. Notice when price managed to break out of this level and trade it higher. And over here when he started taking a dip and prices saw how it bounced off this key Level, 2984, because this is a support now for, for the more times of price levels being tested and being proven as a key level, whether is it a resistance level or a support level, then this price level becomes more significant. So in future setups, whenever you are looking at a key level, not the key level gets even more important the more times it gets tested there. So in the event it gets tested again and again and again then that watch out for that level. If we do get a break, whether it's from the top side and during downside breaking it as a support or from the bottom side you are breaking the resistance and hitting higher. That is a key level. Now, if you are breaking a key level which has been tested many times, then the future price movements of the break-up would likely be even larger. Okay? Even larger. Alright, so let's try again. So now it trade at higher and notice that this was a high, This was high. So what happens is that this will be sort of like a key resistance ten support again. Okay? Resistance then suppose, notice that price blocked up higher. It traded back down just shy of touching the key support level, and then it hit it back up again. So this is the same thing where resistance, tensile resistance tends about. Notice that we, we traded up to a high of here and then prices couldn't break out. It finally broke out on this level and then it retested the support again. So resistance than support, this trend happens again and again. Yeah. Now notice there's one here as well. Retest that hit at higher and this becomes a key level. Watch out how this line especially becomes such a key level when prices on BitCoin became parabolic. 1, that was in December 2017. It was just trading out of so much momentum. Definitely, if we do get a retrenchment, it would definitely retest backdoor key level. So this resistance back then when we saw him Price tests that the highs of traced back down. And then finally we get the breakout. This would likewise also be a resistance ten support. And when it became a support level, notice how in Bitcoin retrace back down during this period, it proved to be a strong support and he couldn't break even at this level when Bitcoin was finding new directions, it was trending at this what we call, I would say a support pun resistance as well. Yeah. Because when we when we trade it back towards this timeframe, note is that when it came back down into this new price range, it was finding difficulty breaking out of this range and it was caught in this range for a few months. And you saw how the power of resistance tends support is so true because when he broke down, when it broke down, it would be trending against the next price channel. Okay? So, and one more point here about support and resistance is that you need to understand the power of recency. It may be a key support line back then in the 19 eighties or 19 nineties, it would serve as less importance combat to a more recent subpolar resistance like. So. For instance, over here. When Bitcoin was coined, took a back seat and he was treating lower and lower and lower, lower highs, lower highest, lower highs. We saw that there was this key support level around this area here, right? Support about six thousand. Six thousand, that was a key support level. Bitcoin tests that it ones sorry, tests that it winds down here. Okay. Tested twice. That's the tries test that four times, five times. This was a very strong, a real support. Okay. And usually what happens is that if you test support many times and each time when you test it and you bounce back up, it becomes a lower, higher than the energy of breaking down. The support actually gets even larger because it just means that the support, over time, the fossils of breaking down the support is getting larger and larger and pushes prices to be so near that support level. And over a long period of time, that usually happens where the support would just break down. And you saw how, when he broke down. So how the prices of Bitcoin just flushed down all the way back down to 3 thousand. It's almost like a 50% decline from prices when he was up at 6 thousand, download 3 thousand. And therefore this support line would be a key resistance again. So likewise, when you saw when prices was trading much low end this trend finally managed to come close to testing this support again, the momentum was so strong he managed to take it out in the first trial. But when he took out is resistance in a first try and notice how it became a resistance tends supported in so how it tested it again and then it started trending higher. So going forward, this 6 thousand month would definitely be a key level that market participants will be looking at. Okay, so in a nutshell, that is the idea here of looking at support and resistance. Usually it plays out when you're looking at the most recent price action that Nonaka last recent highs and lows and see how many times it has this key level. The more times it has the key level, it becomes a stronger level to look out for. And if we do get a breakout of key level, then the likelihood of a big breakout is even more lightly. Okay, so now as we are heading into Bitcoin, notice that the overall price action is still bullish and you see that there is this key level that is looking at about fourteen thousand. Fourteen thousand. We are now just shy of breaking out. We might get a pullback in prices. But also note that if we do get a breakout of this photon thousand, there's a good chance we will hit higher. And if we hit higher, what is the next key resistance we are looking at? If we do get a breakout of this level, then definitely the next price action we are looking at the nineteen thousand, nineteen thousand level. I would say 20 thousand level. That is I'm high on Bitcoin. Okay, so hopefully this has been helpful session. If you have any doubts, any questions, feel free to write back to us or you can also just rewatch the video. This power of being able to identify support and resistance has been very, very useful, very helpful. So if you are able to include that in your setup, very sure that or train journey would be a much more fruitful one. Okay, with that, let's put an end to this session and I'll look forward to seeing you in the next one. Okay. See you. 5. How to read Candlestick Patterns?: Hi, welcome to today's session on candlestick patterns. Now today's session is interesting because this is probably one of the most commonly misunderstood concepts of technical analysis. People make a great deal out of candlestick patents. Like for instance, we have got the Morningstar rising, Georgina, the hammer and others kind of stuff. But actually, it's not as complicated as what you think. Candlestick patterns effectively is just trying to communicate to you a certain price action. And we just read off the sudden price action to understand the strength of the child. Whether it's in a strong trend or a weak trend is is showing strength or is it showing weakness? Ok, so we are looking out for rejections, price rejections out there. And let me give you an example. Okay, let's say we see this chart on it very I'm right. If diagram, you're looking at it there. I'm against US dollar. Now, if you take a look at the challenge area and we saw that we had a very green candle here. But we had a big week, what we call a WIC. Which means that in the day can know the intra-day price action was moved to a high of about 1600 before it closed at about that the 98. Ok. That's effectively telling you what happened on this day, on the 13th of January 2018. Now, the main message on this candle is basically telling you that when prices were trading intraday from the 1000 to about 1600, this range above there, that in a hundred and sixteen hundred was basically rejected. It wasn't able to close at a level within that range. It only managed to close at the 98. That's basically a rejection, a price reduction, which means that there is resistance over here. So let's draw out a resistance section. Ok. This is resistance. This is resistance. Prices couldn't manage to sustain a move and stand. At this level. It had to had to get rejected and come back down. Okay, likewise, if you see a lot of WIX, If you see common trends, common weeks. For instance, this area here at the bottom where It's showing you there's a lot of common weeks where price barely touch is zone and then he couldn't sustain a close over here, had to close above. So this area is obviously a key range of support, I would say. And if we do manage to break this range, there's a good chance it will eventually break down lower. Like what we saw over here. There's a bit of a whip saw tries action where it managed to do close down. But then there was a prize rejection backup, which means that price wasn't ready to treat below the range. So you see that price was still consolidating among this, within this range. And then finally, when prize managed to close. Below the range, it was a confirmation of a downtrend. Okay, so that's the key message. When you're looking at candle sticks, it's really about the intra-day price action and the closest. Okay. And how you Dean the zones respectively. So the wicks don't underestimate the power of the weeks because the width essentially got you. What is the zone that you are looking at? And if you get a breakthrough of the zone is likely that price has found new strength on New weakness and is likely to break into a new trend. Now most people are not able to tell or be able to pick up signs like that. But if you master this technique, which is to really read candle sticks in terms of the price action, you don't really have to care about the respective Japanese symbols, whether is it a morning style, it gets too complicated. Sometimes you, you really misread the overall message. So the whole idea here is to just understand the price action. Understand the meaning of the price action, and that gives you a good idea. Okay, let me give you an example. Let's say we see this candle here. We see these candle. Oh, yeah. Okay. Let's take a look here. Ok. Not the candlestick Xia, You saw this high on the 400. It sort of like touch twice. And then we had a rejection lower those disagreeing candles and followed by a big candle lower, which means that when prices was nearing this level, 400 thereabouts, you had a lot of Ethereum sellers coming in to drive a red candle. Huge rate can go down. Which means that this level, 400 is a very strong level that a lot of sellers are looking for to come in to be selling. Which means that if we do manage to take out the 400 level, a close above it, if you take a look at this price action here, you had a green candle that managed to break pass. But what's more important is the next candle, and the next candle had an even bigger green move higher and close above that. Now that is a very strong technical sign of what we call, you've listened in my previous chapter what we call resistance, time support. And this is a very powerful concept because if you've, you're able to learn this concept, you'll be able to read prize chats very effectively. Now, we managed to break this resistance and he becomes a support. Now whenever this kind of things happen, usually the next corresponding price action is we usually get a retest. And retest is what we call a conformation. And you see these, you see, you see this. You see this, this bounds. There was a week here. We touches this resistance tons apart, and then it bounces back up, it tested twice. In fact. Now, that is a confirmation that this line here has now transformed from a previous resistance into a current support level. And he managed to bring. Now, these principles are the same for this area here, where you get resistance level and the candles are telling you that this levels or are unable to be broken. But once we finally get a breakthrough, we then move to new highs. Like wise, you get a retest subsequently over here. Ok, so in essence, that is the whole idea of a candle sticks can 06 tells you the intra-day price action. It tells you the closing price action. And the closing price action gives you confirmation whether we are able to sustain a move into a new price channel. Okay, so that's it. Those are the most important concept you need to normal candle sticks. It's basically a simple concept that tells you about the price action. And once you understand this concept, you can apply this to your daily trading and you're definitely going to become a better trader. Okay, so I hope this session has been useful. If you have any questions, just feel free to write to us or you can just rewatch the video. I'll see you in the next chapter. Okay. See you. 6. How to draw Trendlines?: Hi, good morning traders. Not for today's topic, we're gonna be covering on trend lines, right? How to draw trend lines, how to interpret trend lines, how to use it to your advantage when you're trading setups. Ok, so this stopping on trend lines may seem very simple and basically you draw a trend line, connect cup of dots and it becomes a trend line. But I want to highlight this point is that a lot of traders, they might not know how to really interpret a brick interception of a train line and it may lead them to make the wrong decision. Okay, so I'm going to show you some examples. You're looking at a price shock of S and P. And let's say we look at the bigger trend. Alright, let's go down into the monthly chat. You can tell that as MPI, since 19 nineties have been in an up trend. Overall broadly there's an up trend. So how are you going to draw the trend lines and how will the drawing of trend lines make the analysis meaningful? Ok? So studying, maybe you can see, okay, looking at the overall chat here, maybe if I could connect the bottom price action with the top price action. There is some trend lines. Yes, yes, in a way this is OK, fine. But what does this tell you? This tells you that perhaps going forward, the price might be in this very lacZ range rate, which isn't very meaningful. So what's actually more meaningful is looking down at the, the underlying character of the chart. So the underlying character of the S and P 500, you see that over, over every few years, there is always a trend, right? Like for instance, we talk about 990s to do thousand. Is there a very clear trend here? Yes. Right. If you draw a trend line, you can see that, yes, this is in an up trend, right? This is a trend. And then following which there is also another trend like that. And this trend, typically it lasts for a few years. And you can see again, there's another trend here. And again, the subprime mortgage crisis. Another trend right? Now. Now this is starting to look a little bit more meaningful because when you get a brick in the trend line, then there was long period of upturn. In fact, what I can say, it is starting to look not very meaningful on such a long angle. So what you can do is you can break it into smaller bite-size trends like that. And then you break it down into the smaller timeframes. And basically just just replicated. So what I'm trying to say here is that you have to look at the underlying character of the chart. And if The overall character of the child is showing you bouts of trends in different phases of the entire timeframe, then you know that the overall trend on SMP takes in a form of years how a trend happens. So like for instance, if you break it down into the daily chart, you would see that since the start of 2020, there was this downtrend. And then when that downtrend, when it got, when it's upward trend channel got broken, we then entered into a neutron. So as of now, technically, if we were to be very strict about this from a technical perspective, we have already broken up trend. And we're sort of in a new trend, which is in a way sideways pattern where it's just finding an is new direction forward. So we have to pay attention to this, to train lines here. And how do we draw the trend lines? Basically you just connect the pivot highs and the pivot laws. So for instance, over here, if we connect the pivot highs, this point, this point, this point, as well as this point. You start to see that actually what the market is telling us is that we are in this, the trend lines are pointing towards a converging pattern. Now when we are in a converging pattern, usually we will eventually get a breakup and the breakout will be bigger, move, bigger move. Would it be pointing higher or lower? Usually the buyers is for it to point in the direction of where it started from. So the overall trend on S and P has been always pointing higher. And therefore, in this converging triangle pattern, the likelihood for a breakout will always be pointing higher. Okay, so that's it basically the whole idea of trend lines. Now what if, what if you are the kind of trader that you look at it from a bigger perspective, like a broader perspective. And you think that, you know, once you break the trend line, it's time to go short on the market. Then if that's the case, you would have sustained a lot of losses. Because see, imagine we had something like that. This trend line, we've gotta break straight away. If you're short the market here, you get stopped out. If you shot the market, you'll get stopped out as well. So that's not the case, right? But my point is, the whole idea of using trend lines is rather than comparing it on the larger time frame, that might be misleading, What's actually better is to break it down into the smaller timeframes. Because from a smaller timeframes, Technical Analysis tend to work better in the shorter term. Whereas if you drag it out and you look at such a long timeframe, then the concept of trend lines might not be that accurate. Alright, so that's a tip and that's a learning point. I think if you are trying to use trend lines in your analysis, try to focus it down on the smaller timeframes and the shorter term rather than a long stretch of time, break it down and as long as you see it to be very obvious. Now trend lines needs to be obvious. It needs to be something that is so clear. Therefore, every other market participants would be looking at it and recognizing the trend channel. And therefore, if we do get a break of the trend channel is very obvious that like the, a new trend will happen. And therefore look at smaller timeframe and draw trend lines more on the shorter timeframe. Okay? Alright, so I hope this has been useful and it can help you manage your trading setups better. Okay, I'll see you in the next chapter. So you 7. How to trade Moving Averages?: Hi, welcome back to the technical analysis series. And today we're gonna be covering this topic on moving averages. You're gonna learn how you can use moving averages in your trading setups, how to add them insight, and how to interpret moving averages, right? You're going to learn how It's a powerful tool to have. And that you can help guide you as to understanding the momentum, understanding the overall trend of the market. Okay, so without further ado, let me quickly bring you out a chart here on Bitcoin. Reason why I chose Bitcoins, that it's actually technically driven market. And therefore, if you use the moving average technical indicator, definitely will be able to pick up some rights signals. But I'm gonna show you a demonstration how you should do it. Okay, so first of all, go into the indicator page. Let's add in tree moving averages. All right, now, the moving average that I want to add in would be the 200-day. Why the 200-day? Because by most common participants that day moving average would generally tell you what is the trend. Alright, the 200-day moving average tells you what's the trend as long as price is above the 200-day moving average, you want to be in an up-to-date, alright? Your positions that you're looking to trade should only be of the site that you are above the trend you go along. If you are below the 20-day moving average, you wanna go shot. Okay? But when you enter a tree, okay, should you be entering a long trip here? Here? Here, here, it's hard to tolerate, but the bias of the 200-day moving average is telling you that you should go long on the trip. Okay. That is what are the 200-day moving average is as useful as long as you're above the 20th day, you go long. If you're below the today, you go shot. Ok. Now, you want to also add in the 20-day moving average. Okay? The 20-day moving average. Let's put this as white color. The 20-day moving average tells you what is the current trend of the market, alright? As long as price is above the 20-day moving average, it means that the current short-term momentum is bullish. If price is below the 200 day, the current momentum is bearish. Okay? You want to only write in the market when it is in a boo trend. And there is bullish momentum. Ok? The moment you get a crossover, the moment you get across over of the 20-day moving average, then you know that on the shorter timeframe, you are facing a bearish momentum. For instance, this period here, there's gonna draw this period here. Can you see that the moment price crossover, the white line. It became a bearish momentum. Okay, doesn't mean that you are still looking for positions to buy into the market. Yes, that is the view. But what you have taken a loss then if prices cut across a 20 day, yes as well. So how then is it much better strategy to know when to build long ago shot the market when for instance, if you hit when long on the market at this position, right? Well, the reason you wouldn't have done that is because our come into that just a second. But before that, I want to add in another moving average, and that is the 100 day. Alright? Now whether you use the 100-day, something in between when I used a 100 day order, 50 day. I prefer actually to use the 50 day. Let me just show you. If you use the 50 day, you get to see a crossover in momentum. Whether any issue shore signal. Usually I will wait for prices to, to show both things, right? You need to be trading, at least the first key hint is whether is it above or below the 20-day second key one is if you've got, if you've gotten across over, if you've got a convincing crossover, then it's time to go on the market. But take note that this signals may not be always correct. So you wanna make sure that you have your stop-loss order in place to make sure that your, your trading setups are fully covered. So let's, let's take a look at this example here in 2018. Alright. You are above the 200-day moving average. Should you go long on the chat? Yes, technically you should go long. But what is your training set up? The training setup is showing that the 20-day moving average is well above the 50 day moving average, which means that the momentum is strong. And so you should still stay long in a tree, right? But the moment we had the crossover, now, remember we talk about two parts above the confirmation, right? The first is your 20-day moving average needs to cut across your medium term timeframe, which is your 50 day moving average. And if you get a cross over this point here is signaling that you should get out of the market because the momentum is no longer bullish writer momentum is confirmed to be bearish. So this is one confirmation signal. Another confirmation signal is that your price is below the 20-day moving average. But usually I tend not to just look at one aspect of it, just price below the 20-day moving average, you might get caught in sudden whip saw pattern like for instance over here, prices cut down below the 20 day, it rebounds back up and then it recall that a cross back into above the 20 day and then it cuts back down again. So over here there's a lot of whips or price action. And if you are just trading or swing trading in and out of the market using this as your one and only signal, then you will not be making the right decision. But if you are looking at both of them in togetherness, if prices below the 20 day as well as it has cut across the 50 day moving average, then this candles is confirmation that you should be out of the market, right? Does that mean that you wanna go short on Bitcoin? You can you can take a train there to go shot back down to the 20-day moving average and pick this. Treat here, but I reckon this is a very risky trait. I prefer to stick to the ground rules as long as prices above 200 day go long as, as long as prices below 20 AND GO shot. Okay, so then let's take a look at this part here. Okay? So you cut across the 200-day moving average decisively. You cut across, you had a retest Hill and prices have been finding stability here. But the moment you hit that crossover of the 20-day read crossing over the 50 day, it shows that bearish momentum is now back in the picture and it's time to go short on Bitcoin. Okay? You can choose to actually see true this entire string here because since the prices are still below the 20-day moving average, you can actually just sit for your position as long as the move is not. You're not stopped out, right? Because you're given that you just cross over the 20-day moving average, you might have more appetite for biggest stop-loss. Okay, so your stop-loss can be above the 200-day, right? Because given that you've just crossed a 28-day down, your stop loss is just on the other side, which is above the 200-day to cut your position when you're shopping. So in this case, you would have state true this entire consolidation path than you are and you still be shorting the market even up to here, alright? And then you would only be signaled to get out of the market over here. When the prices have crossed the poignantly moving average across the 200 and a moving average. You also learn over here in other series that this line here is a key support level, right? We cross a 28-day, we took out this key resistance tons support level. The price momentum is looking bullish, right? 20-day moving average is above the 50 day. This Poggio should have been a goal long entirely, right? And when you're putting on a goal long trait and it's wondering when should I then take profit venture you exhibit the trait. One method would be that if you get any slight as hints of Barish momentum, right? Let's see your 20-day cuts across the 50 day, okay, then maybe this point here is for you to take profit, Get out of the market, weight for a real cutting across of the 20-day back above the 50 day. And then you wanna go long again. But as long as prices are still hovering around the 20-day moving average, then you don't have certainty that prices are comfortably or confidently above or showing a trend pattern. So over here when you get a lot of whips or action where the 2050 and the 20-day moving average are all trading in out of one another, then it is not clear. Not clear, right? What is the overall trend? And true enough, guess what? If you take a look at the overall trend over this period of time? I would say that Bitcoin was pretty much just a consolidation pattern. Okay. It's pretty much in a consolidation pattern. You don't really know what is the trend, I would say is just sideways. And even if you take a look at the 200-day moving average, it's, you know, up and down, its wave-like structure is still uncertain. What is the overall trend? Until you get a break gulp above this key resistance. And take a look at the chat, right? It's nothing to show that the momentum is very strongest starting to pick up. You've got a crossover of the 28-day. Your 20-day moving average is above null the 50 day and the momentum is pointing very strong on Bitcoin. Okay, so in this case, in this market environment, it just tells you that you should actually just go long, stay long in Bitcoin, given that the overall momentum is strong. And it seems as though that the overall price action will let you retest the last highs on Bitcoin, right? This is the last highs on Bitcoin. And that should be a key resistance level, like what we mentioned in previous chapters. So there's definitely a lot of sellers coming into cell over here at this level. But if we do manage to get a breakout of this key resistance level, and as long as prices are still being the laws of the moving averages, if you're above the 28-day, you go long as long as you are writing in line with the short-term 20-day moving average momentum, then the price of bitcoin should just continue to take new highs ESRI brick above this key resistance level. Alright? Okay, I hope this is pretty useful tip for you to add in the Moving Averages. What you can tell you is that fuzzy you, what is the overall trend on the underlying asset? And it tells you what is the short term momentum? When should you exit or stay in the momentum? It also depends a little bit on your risk appetite, whether you can sit through a little bit of whip saw action. But as long as the brought discipline is there where as long as you're above the 20th day you go long, you only look into putting long setups and as long as prices are below the 20th day, then you put on short positions and you only fully close off your positions if you cut across the 280, right? But as picking profits or stopping loss, you will need look into debt when on the shorter timeframe in terms of momentum ways, depending on your risk appetite, you can choose to close off your position when you get a crossover, right, where the shorter term momentum has changed its direction. Okay? Alright, so I hope this session here today on moving averages have been helpful, had been useful for you. You can apply this not just a Bitcoin, you can put this on equity markets, on bond markets. It's up to you entirely as long as prices are showing the key patterns that I've talked about, right? This will definitely be something that is very useful for you. Like for instance over here and the S and P 500 index, you can see that broadly, there are periods where prices are below the 28-day, where in that case, you would get stopped out if you have said it true, right? But if you close your position and look for better entry-level again, when you get a crossover of the shorter term timeframe. For instance, over here, let's say you've decided to go short on the market when you're broke down this 200-day moving average, you would have closed off your position here, right? When a shorter term momentum has cut across the 50 day, you decide to get off the market. And therefore, this trait would at least also yoiu. Quite a significant return there. Alright, see, let's say if you have gotten shot here, you have got off the market here, you would have gotten five-point 2-3 percent. Move here. Yeah. And while you are continuing to look for a better position to short the market, again, you don't have the signal. The signal just doesn't appear. A signal over here shows that the 20-day moving average continues to trade up above the 50 day and we happen to just cross over the 20th day like that, right? So it just means that markets have already recovered. And you shouldn't be looking to short the market anymore as long as prices are both the 2030. So from here on four of you should be looking to go long on the markets, right? This is a very good time here because you would have ended a long position into the market and putting your stops below the 200-day moving average as you've decided to change direction from shorting the market, becoming going long on the market. Alright, and if that happens, you would constantly be, be writing this, right? You would have taken profit share, where I decided to re-enter here. When you cut across and bullish momentum happens again, you would have taken profit here again, re-entered here again. And then you would have set Trudy's entirely here. And then over here, this part here, you would have close your position here. And then you would have setup this market because bullish momentum didn't reappear. But the moment when prices cut across the 20th day, you know that it's time to go short on the market, given that the shorter term momentum is bearish, even more buried under 50 day, you would have shot at a market here. And then close your position here. Alright? So then again, if you follow the rules strictly, you would have gotten a 9% gain here, right? Of course then some people will be saying, oh, in that case, I want to be getting this fool, this full swing here, right? Is it possible to be able to timing the market is such a way that you shot the market here. Okay? And you would have decided take profit here. Yes, you can do that, right? You can do that. So how are you gonna do that? Then? You probably want the signal to come faster than this point here, right? This point here where you've got the crossover u1, the signal to appeal sooner for you to take profit on shorting the market here. Okay, how are you gonna do that? What you can do is you can actually change the moving average. You want it to be a faster moving average. So instead of 20, maybe you bring it down through ten. Then this becomes a tight that market, right? Instead of 50 days, you bring it down to 30. All right? Then the signal has become a learner. No. No. You can even switch it. Even lesser right there. Now the signals even title. Okay? But what is the good and bad thing about this strategy, right? You squeeze in your moving average instead of 2050, you bring it down to 1020. The main thing is that you might get a lot of whip saw price action when prices are in a consolidated market. Okay? So good and bad, I would say it really depends. It's better to analyze the overall chop pathogen because it might result in too many signals, right? If you're looking at a moving average from the ten day to just a 20 day, it might be feeding you a lot of signals. And yes, you might be able to get a very nice trick here where you shelter market here and when you cross a 21-day And then you profit here. And then you would have gotten long again on the market here. But then again, you have to acknowledge that that would fit you with quite a fair bit of signals. So it's wh saw IC. So it really depends on your overall risk appetite, you overall risk profile. Alright? Okay, I hope this has been helpful in understanding the overall ideas of using moving averages. Okay, so if you have any questions, just feel free to, to re-watch this video. Not you can always just write us back at ultimate masters. Okay? If not, I'll see you in the next chapter. See you. 8. How to use Fibonacci Ratios?: Hi, welcome back to the ultimate muster cause for technical analysis, we are now back in the series here. And today we are going to be covering this topic on Fibonacci ratios right now, I'm not sure how many of you have heard of this term Fibonacci. But in actual fact this term has been around for a long time, right? Fibonacci, and it basically has a very powerful magic to it, okay, it's able to predict the future in some way. If you just go into your browser, you take a look at Google, going to do some research on Fibonacci. You'll be able to see that it has been around for a long time and there's some predictive powers of this tool. And I think if you date back what historical research have done, they have said that Fibonacci ratio is also reflected in the equity markets. Believe it or not, it might not be entirely true, but I found that it has some form of reliability in it. Okay? There are some form of reliability in Fibonacci ratios. Especially if you are looking at a particular child. And the Fibonacci ratios show up again and again. Then I would say the reliability of it to show up the next time is also much higher. Okay, I'm just going to show you an example here where we just take a look at some equity positions. Okay, so lets say we will take a look at Apple. Apple is one of the most iconic stocks that has ever existed. Let's take a look if the Fibonacci ratio does exist here. Ok, so I'm looking at the monthly chart here, and it shows you the overall price Parthenon bosons a long time ago in the 19 hundreds, all the way till present day. And if you pull out the Fibonacci ratio, you want to see there is this retrace machinery. Back then in early 2020, there was this big retrace my let's see if the two was able to pick up anything. So by the way, this tool Fibonacci ratio is able to just point out to you what are some of the more likely retrace min levels, the underlying stock or the underlying asset. Well, but he retreats to, so what you do, you connect the p but law, which is this point here to the P bit high. And you would see that it points out to you a few re, ratios too, due to predict okay, as well. On the first one that shows up is 0.236 minus Basically it's just the retrace man of the highest point, right. So you would just see as a 23.6 retrace man, I don't point to retrace ment of 50% retrace my $1.6 hundred eight sixty one point eight percent retreatment. And usually what would be deemed as the golden ratio would be the 6-1. It mainly because if we do get a rebound on there 608, it means that the strength of the trend is usually in a very healthy trend. Okay, now. Let's take a look at this chart here you see that the price actually does show some power because it rebounded from the two-point treat t2. So this level of Fibonacci ratio basically points out to you that it's a key support level that price was unable to break down it, right? And this was a very good level to buy. So as a trader, you would be looking at is tool but was fully because whenever you get a high point and you start seeing that market is losing momentum and prices are starting to really fall back lower, right? You pull up this tool and identify levels of entry. The first level of entry would definitely be that D 0.236, followed by the next level, which is the 0.2, and then Okay? So basically you don't want to be caught in a position whereby you're lining up all your buy orders on justice, you 0.26. Because in the event that it gives me the next level we are looking at it is the zero-point tree T2, right? You can basically guarantee that net prices were only retrace was an a level. Likewise, if prices does retrace to what's the zero-point trait? Who are you planning? Line up all your buy orders on the zero-point trait to perhaps not right, perhaps some because the Zupan trait to be a good level to buy in. But there's also a chance that prices might break the zero-point treat t2 and hit Twitter 0.05. and likewise, if the 0.5. 1000 Hall as well, there's a good chance you might also fall to the 0.06 one year. And finally, the 0.06 18, which is a golden racial, does give way as well. Then the last retrace my ratio we're looking at is the 0.7. 86. Alright? So this is basically a tool that allows you to see a possible replacement level. Now, this is just one of the examples here. If you connect the example from here. So let's say we are dating a while back. Alright, let's say we are back in 2016 to 2017 and you suddenly see these Plant Shop. There was a break in the trend line and you're not sure exactly where we are prices retrace school. What you can do very quickly is just pull out your Fibonacci retreatment tool and you see that you get it right. There was a break in the trend line. You're confident that prices are likely to retrace lower. You could have Q Your by others closer towards the tree it today it's one. Now gets broken. You want to cue your nixed by order at the 0.5. what is your 0.618? All right, if the 0.06 one it gets broken, you might wanna start queuing models. It is 0.76. So it's up to you how you want to manage your risk, how you want to manage your ammunition and trading the markets. But basically these tool gives you a gauge, gives you context as to where prices might eventually land up when you are looking at a retreatment. This is very powerful. Now let's bring it back one wave back. In 201320132016, there was this breaking the trend line as well again. So we got a break in the trend line. It's likely that prices are starting to look more sluggish and heading into a retrace moment. Where is the likey retreatment, conic, the pivot law. Tudor P bit Hi. And there you go. You see that prices was reacting very interestingly at 0.5. prices broke down ones. It quickly rebounded from the 0.5. in managed to take out the tuba back again. It was bang in this bearish momentum down, but it couldn't break down from the 0.5. so clearly the 0.5. is a very, very powerful retrace my racial two q in your biotas for this stuff, at least because we saw how he reacted a few times. So the 0.5. right. Now, let's take a look again. Back in this instance, back in 2009, the subprime mortgage crisis days and is recovery towards the 2013. Let's take a look at a child again. Pivot low, pivot highs. Well, there you go again. Interestingly, re, prices had a brick of the trend line, right? There was a brick of the trend line. And then it fell back into the 0.5. into the 0.5. now the 0.5. does gets broken. Of course we are looking at a 0.06 one yet. But guess what, 0.5. shoot. Many times, right, to have been a reliable retreatment angle. Now let's take a look again. Here. Let us look at the low point here and the high point here. And we see what form of a retrace memos there. Well, there you go. Was that a key Fibonacci retrenchment and racial was it? In some way? Yes. You actually broke the tree T2 and then prices came up. But you saw how prices reacted retreat to and when prices was finding a way, it actually did broke down the 0.05. and quickly found ground at the 0.06 one, it soon after. Okay. Right. And now let's take a look at the previous one again here. And you would see that prices were o in this case. In this example here you saw my disseminate six gave way. It, it had a new level. Now, most people would say that there is still a few other retrace my levels beyond the 76, which is for instance the 0.8, it's six. Okay, that's another instance, right? 0.6. But I would say, you know, you don't really need to add that in for the most part of your analysis because if you add a 0.86, there you go, you would see that prices actually found grounded as 0.86. But I would say for most often of times when you're looking at the Fibonacci ratios and the projections of the prices. This five general ratios we already hold as, as good grounds to expecting whether next level would be. Okay. So basically that in a nutshell is about the Fibonacci Rachel's. Now, the next thing that you have to learn would be about Fibonacci projections. Okay? Now, that would be still also in this tool here. But instead of retrace man, you take a look at the trend base Fibonacci extension. Trend based Fibonacci extension. Now how you're gonna use it? Basically if you do get a telling of a rally and a retrace min, then it points out to you, when will the next top B. Can you see? This was a key law. This was a key high. The projected top would be one of the few levels here. One of the few levels you're the first one starting with 1.61 in the second one will be the 2.618. That one is a true my 618 and a 4.2.6. Usually, when you get a top, you can just remove the chat and redo a new projection, right? But some people, they, they look back at previous projections and those markings on their chart and pick it as future references. But usually what I do at the moment, we've got a project that top on this 1618. We do see the reaction here. I would call this as a top RAD and count this as a fresh new stuff. Okay, so if we do, if we do that and we count this as a fresh new stat and we start again with the projection of this as r11, r12 round tree. Then it gives you ground again, right, to see that prices somehow should find a pop around the 16 one again. All right? Unless prices does get a very clean cut across the 1600 and there wasn't any form of retrace meant by, in this case, we saw that prices did retrace lower here. So there's a good chance that this might somehow be a top for now, right? And we might get some from a retrace my little bites Hutton tell. Ok. Now the viewer get invalidated the moment you cut across this 16, and then the next top will be reprojected again. Okay, now we can replicate this again in many markets. Let's take a look at a cryptocurrency markets here. Okay, soul, a crypto currency markets, pretty interesting as well. You've got a key law somewhere around here and a key high. Where is the fuzz retrace meant? As retreatment is somewhat at the 76 if you take away this line here. So you see that the 76 felt phone a lot of support here. Okay, and if that's the case, and if we do a projection, then from a technical perspective, the likelihood of a projection of Bitcoin if it does break this high, because now this high will obviously be a very important high, right? This last highs we had on Bitcoin would be a key resistance. But now prices are trading at about 15,500, right? We're just a, just a short distance away from the last highs. Now if we get closer towards the Laughs heights, it's important to see the reaction because if we do take this key resistance level, then the likelihood of a breakout above this few levels and hit towards the 16 one is actually very, very likely to happen. Okay, let's actually very likely to happen if we do get a patent. So what I'm trying to say here is that Fibonacci ratios or projections is able to give you some form of a predictive pattern. If you take a look at the S and P as well, it's able to somehow give you some predictive power. If you connect the, if you connect the key law here in the markets say this was the key loan, right? Assuming this was a kilo here. Among this is my key law. I want to find the project that pop on the S and P markets, assuming this was sort of the same high and this was the low. Then the top on the market should find some ground here, right? There should be some form. Maybe I'll use this instead. There should be some form of a reaction here. Let me search for Margaret q. O here. This was a key Lou here. We did a long while back right? Before a big, I could use this as a key law. I could use this as a key low. Maybe I will just use looking at the span of time. Maybe I'll just use this as the key Lu. Yeah. And then if you check out the reaction, you will see that prices somehow would find a lot of reaction here. The 16 one, when S and P was close to the 3 thousand. Yeah, we did get a bit of an overshoot slightly, but we saw a retrace meant quickly happen. And by the fact that we managed to take out the tree thousand again and now prices are trending higher. It just goes to show that we are likely to continue to heat up of hire. And now this 3 thousand SNP would be a very strong support that is going to hold market prices up. Now, where is the next level of resistance then are likely point where markets are heated to, then that would likely be the 4,527, right? Because that's the 2x x1 it projection. Okay. So in a technical angle, it points out to you these various levels to look for. All right, maybe just for last part, maybe we touch on Microsoft, maybe let me just see if we can show that path and here again. Okay, again, let's take a look at Microsoft. Let's see. We try to identify a key loafers. Maybe this would be a key law here. Maybe we use this point here has a key lower first to identify some form of a Fibonacci Patton, right? So if this was the key lower than this, the key, Hi, there you go. Right? You will see that prices grounds finding at a 61 it, there's a lot, a lot of support where market was crashing in a 2 thousand crisis. There was a lot of support at the 50.8% 61 retrace meant level before prices shot back up again. So if we do some form of a projection, if we do some form of a projection and find out where is the project that highs there. It's pretty amazing, right? We see how prices react that at this important levels. First, we had the first reaction at the 1618. Where prices, you know, when you see this kind of reaction, 1618, that was sellers coming into cell, that 2x one and again, settlers coming into defend the 2x, 10x and again, and finally here as well, the 3.6.1 it. So in the case if we do manage to take out this 3.6.1 it and find new highs, then like E it is 4236 will be a good level to take profits again, because for all you know, we might get a lot of selling action coming in at this level. Now don't ask me why the feeble Nigeria tradesmen or projection tool has this limit of just the fault who trees six, right? And what happens beyond this level here, right? Maybe, I wouldn't know, but time would tell what's going to happen if we ever do get above this level. But I think for now, as long as you keep this concept in mind of how to understand retrace moments and projections. Try to use this in your daily trading setups and you will see that you start recognizing patterns more and more. And I believe this would be very helpful in allowing you to get better timings in a market. Okay? So there's definitely no, a 100% method of always beating the markets. But you can definitely improve your game in getting better setups. Alright, so I hope this chapter today has been helpful and insightful for you. Alright, I'll see you in the next chapter. Okay? Alright, CIA. 9. How to use Bollinger Bands to stay with the trend?: Hi, welcome back to the series. And today we're gonna be covering this new indicator and it's called Bollinger Bands. Alright, in short, we call them BB, double obese. Bollinger bet. A lot of investors or technical specialists, but they use is this tool called Bollinger bands to basically allow them to time better entry levels or better profit taking levels on a current trend. Okay, so especially if you are a trend follower type of trader, you are constantly trying to look for opportunities to get into a better level or to take profit at a better level. At the same time, still maintaining your strategy which is the right onto the train. Okay, so I'm going to show you how you can use that in this life setup of Amazon. And over here, let's go into the charts. You can see that this is the daily chart on Amazon. And we have the price patterns since 27 then two to present day in 2020. And let's take a look at the Bollinger Bands setup. So click on indicators and strategies, press BB, click on Bollinger Bands. It would show you the chart with the setup. Yeah, so before we go deeper into the strategy, I'm going to show you what exactly is this indicator, okay, so you see that it has this upper band and a middle band and a lower Ben. Alright? Now the middle Ben is basically what you call your 20-day moving average. If you click on the Settings button, it will show you the perimeters inside and you see that the length is 20. This is the default settings of the Bollinger band indicator, which looks at the 20 period moving average. Now, since we're on a daily chart, it's using the 20-day moving average with the upper band and the lower band showing up as a two standard deviation distance away from the 20-day moving average. Ok, now, the default settings is showing up standard deviation. So don't try to be funny by changing and tweaking the standard deviation basically because by practice, all other investors will also be using this common setup. Okay, so now I'm going to show you how are you going to use this strategy, alright, but before that, maybe our flesh out a very common mistake of traders and investors. How the misuse this strategy and equal result them making huge amount losses. All right, so now you see that these two bands basically highlight the extent of which price have deviated from the 20-day moving average, right? So for instance, in this, in this timeframe here, back in 2016, you see that prices was trading close to the 20-day moving average and then all of a sudden is shot up and he was now leaning at the upper band of the Boolean Japan. Now, some traders will pick q of this signal as an entry to short the market, right? Shot the market, given that it has no stray too far away from the 20-day moving average. And therefore, it's a good timing to short the market and look to take profit back towards the 20-day? Yes, it seemed like it would have worked here. For instance, you you deceptive short Amazon at 2080 when prices struggling on his upper band and try to take profit back into today. But this strategy doesn't always work. In fact, more often than not. If you try to short the market at this period here, when it's at the upper Ben. Guess what? The risk reward is not high. In fact, more likely than not, you're writing against the training state. Prices have been still struggling at its upper band with few instances of it coming back to the 20-day. But mostly if you look at the price pattern, Amazon has still been an up trend over here. And if you've been shorting the market, whenever it's leaning close to the upper band, you would have sustained a lot of losses. Okay, so that theory of how you should use the Bollinger band is showing up in many other different materials. Don't listen to that. That strategy is wrong. You would get into a lot of losses if you use that strategy. All right, and in fact, what I'm going to teach you is another strategy that is at least proven to be able to help you get in at a better level. And I'm gonna show you in this example here. So remember when we talk about Bollinger Bands, it's always about trying to get a better entry or better profit taking level by the same time writing a trend. So first of all, you need to know what is the trend. And remember we covered in earlier chapters in order to know what is the trend straightaway, pull out your moving average. Gotta indicators have been moving average. Let's pull up the 200-day moving average. All right. Okay, so you've got the 20-day moving average and you see that prices are above the 200-day moving average. Now from a technical angle, that means that prices are in an up trend. Now when prices are in an up trend, do you wanna go short on the market? No. Okay. We learn that is the first discipline, that is the first rule. As long as you identify the market to be in an up trend, you only put on long positions. So you're not allowed to go short on the market except to put on long positions. Okay. So every single part of this Qs here, whenever it's giving you signals that it's nearing the top n of this boolean Japan and telling the go shot, I know some textbooks they tell you that logic but just stick that away from your trading discipline and don't do that. Okay, in fact, how are you going to use the strategies that you're going to add another indicator, which is you're going to indicate a tab. Type in RSI. Pull out this thing called the relative strength index. And I am going to show you how you can use this in combination with your Bollinger Ben, to get a better entry. Ok, so now prices are trading above the 200-day moving average, right? Broadly, from here on Fof, presses are trading above. Now, it means that a good setup is when prices are close to the bottom of the RSI. Now the RSI, the relative strength index has this two lines. One is the 70 level and three level as default. If the RSI is showing a level that is close to the level, it means that prices are more or less oversold again. And if prices are at a 70 level or beyond the 70 level, it means that prices are over bought, which means they are overvalued. And therefore it's a good time to sell. But in this case, we know that, that the trend on Amazon has been in trend, right? So if it's in an up trend, you are looking for a better entry when prices are fulfilling two conditions. On the first condition is, prices must be trading at the lower band. Okay, let me give you an example. This instance here. And you see prices was trading at its lower. Ben. Rsi showed that it was of a value of about 3435. That's very close to the 30. That's good enough. It's a good time to go long on the market. So I would go long on the market here. Okay. You've decided to go long on the market given that you are fulfilled this two conditions, prices are close to the 30 on the RSI. It's trading at the lower Bollinger Band. We are in an up trend. It's time to go long. So you put an order to go long. Long. Right? Now, where should you stop loss BY? Your stop loss should be at a level that is invalidated and prices are close to the 200-day. So you might want to put down your stop loss somewhere below the 200 day here and then look for a time to take profit. Now the timing to take profit basically just means that you cut across the 20-day moving average. So this might be a good time to take profit. At this instance here, you saw how prices cut across the 20 day. This was a good time to take profit. You might not want to have taken profit because prices are still, it has still room to grow and it hasn't hit your stop loss yet. You probably don't want to be taking profit here, right? Whereas from a risk point of view, you might just want to sit in the tree and consider taking profit here. Your overall risk reward is a ratio of about fall on one tree. Now some traders have larger receptive die. Instead of taking profit when you have a crossover of the 20-day moving average, they only wanna take profit when it touches the lower end of the Polynesia, Ben. So for instance, they enter into the market at this level, and the next time they're exiting the market is when prices rebound again from the lower end of the Boolean Japan, which is this level here. So if that happens, then they would have taken profit like that. Yeah, of course you see that you put in your trait here. You took profit here you have made a good amount of money, but at the same time your risk is also higher. Okay? So that's basically how you should use the Bollinger Bands in trading, right? The whole idea is that you're gonna put in the trade only when you are confident you've identified the trend. This is in an up trend, prices are trading above the 200-day moving average. Your 200-day moving average is sloping upwards. That's a very healthy up trend. You've got your RSI is showing that prices are near the level of 30, which means that prices are close to oversold levels. And therefore, it means that prices are undervalued. At the same time from a Bollinger Band setup, your prices are close. In fact, touching the lower end of the Bollinger Band, which means that this is now a good time to enter into the market and write new trend. Likewise, when you're looking to get out of the market, the cues should be that the momentum is now wick. And you get that signal when prices either cross the 20-day moving average by the red line here, or if you have a bigger receptive die, you can wait for the price to reattach, again the low end of the Bollinger Band, and that means weakness. That's why you exit the tree. Okay? Just in case we have a ton of events and prices that collapsing even lower. So that's when you exit the tree. And if you follow this setup, you realize that, you know, you'll be able to have a much more discipline approach when you are considering to put on new traits. Be it equity markets, even crypto currency markets, this technical pattern always work. And it's definitely able to bring you much better results than if you are just going blind into the markets and just trading off news headlines or anything else. Okay, so I hope this topic today on Bollinger bands have been very useful, very helpful for your own understanding of when to enter the market. And I hope that this will be something that you can incorporate into your own daily treating. All right. I'll see you in the next chapter. See you. 10. Where do you stop loss or take profit?: I morning driers, welcome back into the training. Now for today's topic, we're going to be covering this idea on profit taking and leasing of stop-loss, okay? So it's very important you understand these two topics and manage to internalize these two concepts because this will allow you to become a more profitable trader in the long run. Okay? When you're on a winning trait, you want to maximize your gains. When you're on a losing trade, you wanna minimize your losses. So this will help you to get more returns at the same time when you're on trees that are not correct, you want to be minimizing those losses. Okay, so very quickly let us go back into the charts. We have QQQ here. And QQQ basically mirrors the nasdaq performance. Let's take a look at the chart here. And you see that prices have somewhat been an overall trend. But let's not forget what we've learned. Our 200-day moving average. Also bring back the 20, the moving average to get your shorter term moving average. Long-term, Maybe I'll just put it as white color. And then for this one, I will change it as yellow. Yeah. Okay. There you go. We've got a shorter term, faster moving average and we got our longer term moving average. Now prices are for the most part above the 20-day moving average. We definitely want to go long on this trait. Okay, let's start with the subprime mortgage crisis period. You saw that prices cut down across, had a bit of a retest and then hit it lower. At this point, you could take on a trait to go short on the market. But as for equity markets is always very dangerous to go short on the markets. Because he would take a look at the history of time. For the most part, equity markets have mainly been an up trend. Okay. If you take a look, this is the overall chart since 2 thousand yes. There was a period of time since 2 thousand to 2004, there was this bearish trend. You could have shot that a market here. But following which if we take a look at the overall price action, it does look like the overall trend has always been in an up trend. Now that's also dangerous because we could see some form of massive correction lower. But until then, I think we'll continue to stay long on the traits. So let's, let's take a look at this part here. Maybe we rewind in time a little back into the subprime mortgage crisis days and see how we are going to treat, right? Let's take a look at some of the stuff we've learned. Right here. Maybe after the subprime mortgage crisis. Let's take a look at this part here. So prices have just crossover today. Let's draw our trend channel. Right? Connecting the pivot lows. Connecting the pivot highs, right? Okay. So maybe you are at this part here. You recognize the trend channel here, right? You've got a kilo here. You've got sort of a kilo here, and you've just crossover the 200-day moving average. So maybe we are at this point here in time. Okay. If you are at this point in time, what are you gonna do? Prices just cross over above the 200-day. You've got this beauty food trend channel that is very clearly pointing upwards that even a 20-day moving average is sloping upwards as well. You wanna go long on the trip. And, but when you go long on a trait, where are you going to place your stop loss or where you're gonna praise your take profit, right? So obviously you need to start recognizing what are the key resistance and key support levels. Ok, so this height here is the recent high, and that was before the subprime mortgage crisis. You have to draw that out. This one key important level. That's also another key important level here. Alright? When you connect this n and this n, right? We recognize all these key points. This is also definitely a key support, right? And then maybe on a shorter timeframe, there's also another support here, right? This was a low here. Okay, so if that's the case, you might want to put on your long position trait here. Long here, when you've just had a 20-day crossing over the day. And then you can decide where you wanna put your stop loss, right? We generally put my stop-loss and the most risky point. And that is this point here, write prices below the 28-day prices, wrote back down this key resistance can support. Now obviously you can also have a bigger receptor, tight end, see truly move lower and maybe put it under here. But then you've got to measure for yourself whether the risk that's compensated and rewards. So looking at a trend channel, there's a good chance that from here and here, connecting this point and this point, and you connect this point here and this point here. And you connect this point here. And this point here, there was this obvious trend channel pointing here, right? So that means towards this trend channel is definitely an area where you might want to take profit. So taking profit towards this area here is very likely because of all, you know, prices might hit lower and guess what? It really did happen. Prices eventually hated lower and trade it back down towards the determinant, the moving average. Ok, so this is a very important trait that I want to show because it's sort of like using pretty much all that you have learned. You know, that prices have been still trending higher and you want to maximize your gains, taking profit here and putting a stop loss here. Now what if prices hit it back down and then it touches the 20th day, but it didn't bring any trend at higher. That's a very bullish sign, right? It shows that the 28-day still training. So you'll still probably want to also read many long tree and maybe shift your stop loss here. Taking note that your original position was here, but you would have already lock in some profit because you are now shifting your stop loss higher. So you could maybe omit these other support levels and locking those profits by readjusting your stop-loss. We're just at higher here. And now that you've managed to cross this level here, maybe this, even for this key resistance can support, you can overlook that now and shift it higher here as well, right? Because if you look at a more recent price action, we've got this high here, this height here, this height here, this height here, four times testing, right? So if that's a four times testing line, this is definitely for sure. Another key resistance. Tons support and soul. If you note that the, you probably want to place your stop-loss just slightly below that, right? At the same time, also below the 200-day moving average. So if that's the case, you want to stay longer in the trade and look for other opportunities to take profit. Okay? So the profit taking position should generally be in line with the danger zone. And the danger zone would be the upper trend channel here, right? So assuming you've mentioned across this period, across this period, and you didn't get stopped out, you would have been writing a trend all the way as long as yellow prices are above the 20 day, you would have taken profit here maybe, right? You would have taken profit here when prices and the 20-day moving average cross over the 200 data, right? But then you would have read long, the market when you're 20-day managed to cross over again. Keep in mind that if you take a look at this trend channel, it has shown to be very reliable, right? Because when prices even broke down the toilet day, this EVA here helps strong. Alright? So if you've kept that in mind, if you connect that the trend channels, you would have taken profit at the upper trend channel and mostly you would have been in a profitable tree. Now what about in instances where prices are something like that, right? Where the trend is not clear, you've got a 20-day cut across here like that. And it cut across above us down and up. It's very obvious that prices are now trading in some form of a consolidation pattern. So it's key to recognize the key resistance level or say this is around key resistance level. And if we do manage to break that key resistance over here, even though prices have traded above the 20th day. You note that there is this area here where there's just so many, so much overlapping. The 20-day and a 28-day is obvious that prices are just finding its next direction a hit. Even though you may be sending over here, you may be standing over here you sit, you've just got a crossover 20-day against 28-day. But is it wise to just go long on this trait right down here, right, for all you know, this, this range could happen again, right? This rain could happen again, where prices did crossover. But guess what, very soon after it came back down. So the key important level that they count is definitely this level here. This resistance, right? If you manage to take out this key resistance, then obviously prices have a good chance to trading higher. And guess what we did manage to cross over. And if once that happens, we could be in a new trend given that we've finally cross over this period of consolidation, the next step up in a very convincing up trend. So you draw your trend channel and you plot it out. And you see that prices are likely to within the trend channel and the top part of the trend channel, definitely good times. Take profit at the same time. You throw your stop loss below the lower end of the trend channel. Now notice that the low end of the trend channel seems to be pretty close in line with the 200-day moving average. This is of course, a very, very good setup because your losses then would be minimal. So if you're always putting on a long trait, let's say you decided to put on long trickier prices using some kind of rebound on the lower entrant trend channel, you might want to put your stop loss at just shy below of the 20-day moving average, which such a tight stop loss. And the same time your profit taking positions are always at the upper end of the trend channel. Right here. Possible areas to take profit. Yeah. So as you go up and up and up, you're always managing that risk by shifting your stop-loss accordingly as you write this wave higher. Okay? Now, if you're always on this long way, then when is the signal we take loss? The signal detect loss is when this trend channel bricks. Now you've got the brick of the trend channel here, right? Same thing. The 20-day moving average car across the Toilet Day, trend channel, bottom line was broken. Prices are trading now below the 20-day moving average. This is a very bad sign. It's time to definitely get off the market here. You might want to get off the market and put on a shop position down. But if you do put on a short position down, where are you going to pick profit? Where are you gonna take loss? Are you gonna stay shot on a market forever? Known, right? So use what you've learned again. Same thing, trend channel, channel. Where possible areas of profit taking. This is 111, maybe not this right because it barely touch so thick that out. But this for sure is definitely a good area to take profit. We're going to take profit, right? And wage you stop-loss. When your short position, maybe this time is good to show. When you've just gotta read confirmation that prices are now below the 20-day moving average. You might wanna take profit around this level and your stops should be in general, above the 200-day and also above the trend channel. So if that's the case, then you've got a beautiful setup here because you know that your risk reward is always going to be very, very attractive. Right? Now, you will be out of the trait at this junction here, right? At this junction here. When prices broke the trend channel, right close above the trend channel and your 20-day moving average closer book trend channel as well. Alright, so you'll be out of the trachea because you know that prices are not showing confluence of all the same patents, okay? Now you don't want to go long on it just yet. Why? Even though it's starting to show that there is, this trend is happening. Right? But would you want to go on the train right now? No. Right. Because we've recognized that the 200-day moving average is such an important indicator. Prices needs to be above the 200-day moving average, then you are going to go long. Because you don't want to be caught in this position where you think that prices starting to really hire. But guess what, when he started to face this very key important to honor the moving average, it couldn't close above it. Prices traded back down again, you will get stopped out on your position for sure. So the whole idea here is that you can actually wait for your 20-day moving average to catch up, right? You want to get more confirmation. You wanna get more certainty that this treaty is a winning trade. Your 20-day moving average traits above the 20-day moving average. And then you wanna look for long setups, okay? You want to look for long setups. So you can put on a trade here, long setup. You've noted that there is this key law here, right below here. There's this kilo here. There's this key high here. This is key high here, there's this key high here. It's definitely very likely that you can draw this trend channel like that. Ok. And guess what? Now that you've crossed over the 20-day moving average is timed to go long. You want to put on a long trachea. Long. But where you're gonna take profit, you're gonna take profit towards the AP trend right? Towards the upper side of the trend channel. And the same type, you'll stop loss will be at a level that is below the 20th day at the same time is below the trend channel. That's how you manage your stop loss and stop profit AV realize actually over the past few examples. In general, the risk reward ratio is generally looks very attractive. Ok? So you can, you can take profit around this levels here and you just, you know, sort of like trill it higher as you go up. But guess what? What happened was that you didn't manage the prices of the QQQ wasn't able to hit any of the upper side of the trench January instate it, cross back down. Right. That is a bearish pattern. And even though even though your stop loss is here, Does that mean that you want to wait until prices stopped you out? No. Right. You don't want to infect, you want to just get off the train now. You want to close the trait. You originally ended somewhere around here. And you just want to lock in those profits and get off the tree. Because now that you've gotten a bearish pattern, the 20-day moving average broke the trend channel. The trend channel is really broken. You're not sure whether you understand this long trip. Now, are you going to short the market? Nor again, you're not going to show the market. Why? Because prices are above the 200-day moving average. So you're going to sit out this entire price action here, right? You're gonna sit out this protection. You want to be a discipline trader and you want to only trade when the price signals are showing the right price signals, set out this tree and only look to go long again. When prices are trading backup of the 20-day day, you notice how prices have always been trading below the 20 day, right? Whereas for this part here, prices are trading above the 20-day. And you want to stay on this trait when prices are trading above the 20, right? So same thing. You could put on a long trip here. When prices they cut across the 20-day, you're stops below the 20th day, and you're looking to pick profit somewhere, right? So draw your trend channel. In this case, it seems like the trend channel is somewhat like that. It's similar to the previous example. The key pattern here is when prices traded below the trend channel, all when you're 20-day cross over. So you want to get out of the market here again. Okay? So in essence, those are the key ideas when you're trying to many to Trey, and when you want to pick profit or when you want to stop loss. Alright? It's not too difficult a concept, but it's also important to know their, you know, comparing yourself with a buy and hold investor that just leaves the position they're on for a long time. You want to print out your method of managing a position to be one that is more active and is always looking for good levels to get out of the market and good levels to stay in the market. Okay, so I hope this session has been useful. If you have any questions, just feel free to write to us or you can just rewatch the video. I'll see you in the next chapter. Okay. See you.