Transcripts
1. Course Preview: Stock Trading & Cryptocurrency Trading | Technical Analysis: Hi there, my name is couldn't die. And I'll be your instructor in this stock trading and cryptocurrency trading course. Together, you and me are going to learn how to become a stock trader and Bitcoin trader or investor. Together, we will go through a platform called trading view to perform technical analysis. Go through candlestick patterns that will help you determine trend changes within a market. During this course, we will go through what a stock is and how it can be traded, as well as what's a cryptocurrency is, and how it can be traded. This will give you a really good idea on how you can start investing for yourself in either market and potentially start growing substantial wealth. Now this course is aimed at complete beginners. So there is no need to have prior experience in trading stocks or cryptocurrencies to enroll in this course, you don't even need to know any trading terms or jargon. We're going to start right at the beginning and work our way through step by step. First, we will go over the differences between stock and the cryptocurrency. We will look at how both can be traded in the real world and start learning about technical analysis. I will show you how to use trading view, a charting tool that we will be using to perform all our technical analysis. Then who learn how to read candles takes on a chart. I'll go over all of the essential technical indicators that are necessary to execute good and profitable trays. These include moving averages, relative strength index, known as RSI, and Moving Average Convergence Divergence, known as Mac D. We will even make use of these technical indicators in various trading strategies that you will learn. An important part of maximizing your trading strategies will involve technical analysis, Risk Management, and being able to utilize charting platforms such as trading V. This is why I'll be teaching you how to do it all to help boost your chances of making good and profitable trade. The end of this course, you'll have a solid grasp on how to perform technical analysis on any stock or cryptocurrency chart, you will have confidence in executing good and profitable trains. This clause will kicks dots or enhance your skills to the next level. So I hope that you're ready to upgrade yourself and go from a beginner to a pro trader in row now, and I'll see you in class.
2. Important! | Course Overview: Header is kinda where I hope you're well. First of all, I would like to welcome you to the course. I'm glad that you decided to join me on this trading and investing journey. And I hope that this course provides you with all the knowledge that you need to feel confident in performing technical analysis and taking practical action to make good decisions when trading or investing in the markets. Next, I would like to inform you that it is important to read and understand the disclaimer on the screen right now. The introduction video for this course was a great overview of all the key topics that are included in this course. But I just wanted to give you a quick breakdown and guide on how you can achieve the most value in this course, the best way to gain value from this course is by taking action. First, focus on the trading view tutorial section. This section is key because if you want to perform great technical analysis, it is important to learn and know how to utilize the trading view platform. Trading view is a powerful analysis tool that will take your trading and investing skills to the next level. After this section, basic charting fundamentals on reading candles takes, take this section at your own pace. In this section, I go through the foundation of reading candle sticks and give you some examples of the most common candlestick patterns. These can be very powerful signals for a change in momentum. So make sure that you learned them all. I will be updating the course with more contents periodically when needed. And as always, please reach out to me anytime throughout the course. If you have any questions or if you have any additional lesson inputs or ideas, that would be great additions to this course if you have access to this course on another platform that is not my website, piggybacks.com. I recommend that you go to piggybacks.com forward slash members in order for you to be able to reach out to me in a more efficient and timely manner. I am limited with what I can do on other platforms. For example, there is a limit to the number of educational announcements and emails that I can send out. Hence, I am more active and dedicated to the students on my website. Hence why I recommend that all students that are enrolled in any of my courses visit piggybacks.com, forward slash members. So that's PIWI, AGI, BAC, KS DOT COM fourth slash m e m b ERS to get the most value out of any of my courses. The next section is on understanding timeframes. This section is an important one to understand because using multiple timeframes, who will increase your probability of achieving good trades? A good number of traders are only comfortable to trade using one timeframe. Therefore, mastering how to use multiple time frames will give you a strong edge in the market. Understanding, support and resistance. Another key topic, this is part of the bread and butter in being able to react to the markets accordingly when trading. Take this section at your own pace and ensure that you fully understand how support and resistance work. Next, you will learn some common trading patterns that will add to your trading skills when implemented successfully, these patterns will achieve good and profitable trades. The last section includes learning about moving averages and a trading guide that shows you how to use the relative strength index known as the RSI and Mac de, known as Moving Average Convergence Divergence. I will be updating the course with the video lessons on how to use the RSI and the Mike D, as shown in the trading guide. Additionally, makes sure that you follow me on skill share so that you're able to be notified once I upload additional contents onto the platform. So now that we've reviewed the course outline, Are you ready to start learning? I hope that you're as excited as I am. Let's learn together and I will see you in the next lecture.
3. What is a Cryptocurrency? - Bitcoin Explained: Hi, this is condemned from piggybacks. I hope you're well. So what are cryptocurrencies? Well, cryptocurrency is a just a medium of exchange. They are a means of carrying out a transaction digitally. They are virtual currencies slash digital currencies that are completely independent of government control or any central authority, entities such as banks. Basically, they are digital currencies that can only be controlled by the user. This means that you don't have to go through the bank to process a transaction. This is an important aspect within cryptocurrency is called decentralization. And I will get back into it further in the course using a cryptocurrency called Bitcoin as an example, right? For us to fully understand cryptocurrencies, we need to have a good understanding of what money or currency is. So what is money? Well, currency slash money started developing six to 9 thousand years ago as a medium of exchange, people used something of value. Societies from around the world started to select gold and silver as the primary currency about 3 thousand years ago. And then about 680 BC, gold and silver was melted and produced into coins of equal value, which became money. Governments then started creating representative currencies whereby you can deposit your gold or silver into the treasury. And you will give notes that were basically a claim check on the gold. So the paper check supposed to or is supposed to be as good as gold, because you can always convert the paper check back into gold. However, in August 1971, President Richard Nixon called for an emergency conference where he announced that foreign countries would not be able to convert the US dollar holdings into gold. This was the birth and creation of our current monetary system. A system where no currency is backed by gold or anything of value. This is what is known as fear. Currency. It is currency that is backed by nothing but government promises. The word fear is actually a Latin word. That means currency that is circulating by force. Money has always been something of intrinsic value until the modern age, where governments have created a system where currency is not backed by anything. This means that governments and banks are in control of money as they can print all issue and unlimited amount of new currency without restraint. And with the advent of the digital age, currencies around the world and now digits in a global banking database. This results in our current. Monetary system being centralized. Now that we have a good understanding of what currency is, we can talk about Bitcoin. So what is Bitcoin? Well, bitcoin is just a digital currency, also known as a virtual currency or a cryptocurrency, that was created in 2009. It follows the ideas that was set out in a white paper that was written by a mysterious person called Satoshi Nakamoto. Bitcoin is purely digital, which means that they are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to. Think of it this way, digital currency already exists. We already know that banks issue our credit cards, which we use to make transactions or purchases. That is a digital currency. The only difference with banks is that they also have a physical currency, which is called fair. And Bitcoin, however, doesn't have a physical currency, is just purely digital. It is built on cryptography, which ensures that the network only allows valid and true transactions. This means that no user is able to manipulate or cheat the system. This is Bitcoin's main feature. It is de-centralized for the first time. You can store value and transfer value without any third party acting as an intermediary. Third parties like central banks, financial institutions, or even governments, are unable to control Bitcoin. Bitcoin has a maximum supply of 21 million units. One of the greatest benefits of Bitcoin is that it is divisible. It can be divided into eight decimal points, therefore, 0.00000001 B Tc is the smallest unit of Bitcoin. It is often called a Satoshi in honor of the inventor. New Bitcoins are released at a predictable rate. This makes it resistant to inflation. Cryptocurrencies such as Bitcoin enable international payments and transactions to be made without time restraint, the cost of making these transactions are also very low in comparison to the traditional methods that are available today. This is all possible because Bitcoin operates on a de-centralized public ledger called the blockchain. Let me explain this really quickly. So when consumers make purchases using a currency such as the US Dollar, usually banks or credit card companies or financial institutions would verify the accuracy of these transactions. Bitcoin does a similar function at a low cost without any of these institutions using a system called hashing. When a person pays another person in Bitcoin, compete is on the blockchain. Rush to check the transaction and make sure that it is accurate and true. In order to add new transactions to the block chain, a computer must solve a complex mathematical problem. This is what is called a hash. If a computer is the first solved, the hash a permanently stores the transaction as a block on the blockchain. This transaction cannot be changed. It will be there forever and is visible to the public. Bitcoin gives you complete control over your money. You only rely on technology and math. This comes with many benefits. To name a few, you aren't reliant on banks anymore to store or transfer value. You can also do anything you want with your money. Nobody will ever say about it. And you can send value anywhere with almost no fee instantly. This would happen in a matter of seconds, minutes, or even just a few hours. It wouldn't take three to five working days to make a transaction overseas. This is basically payment freedom. With Bitcoin, we have the ability to send and receive money anywhere in the world at any time. And you don't have to worry about cross borders, rescheduling for linked holidays or other limitations that may occur during the money transfer. You have total control over your money and there's no form of central authority. Bitcoin is also safe because it allows users to control their transactions. You won't get charged any unknown fees and payments can be made and completed without personal information being linked to the transaction due to the fact that personal information is hidden from indiscreet eyes, Bitcoin protects against identity theft, and the Bitcoin one can be encrypted and backed up to ensure that money is safe. And another very important advantage is that the information is transparent. With blockchain or completed transactions are visible to anyone, but personal information is hidden. The public addresses visible, but personal information is not related to anyone can check transactions at anytime in the Bitcoin block chain. Further, governments or banks are not able to print out more Bitcoin at any time without notice deflating its value. Bitcoin also has some drawbacks. Well, because Bitcoin is decentralized, there is no central control. That means that there will be no one to protect you if you send Bitcoin to the wrong person, Bitcoin transactions cannot be reversed. They can only be surrendered by the person who has received the money. This means that if you're investing or trading Bitcoin or any cryptocurrencies, you should only do so with people or organizations that you know and trust or that already have a recognized reputation. Bitcoins value is mostly based on supply and demand, which makes it more volatile than the traditional fear currency. Currently, the Bitcoin price jumps from day-to-day, especially due to the events associated with digital coins, bitcoin is still in its infancy with incomplete but emerging functions to make the digital currency safer and more accessible new features 2s and services are currently under development. Bitcoin has yet to grow until it reaches its full potential. Think about the time before the internet, information was very centralized. If you wanted to get information, you'd basically have to go to one of the big players, such as the times or the London Herald and a few others like them. However, today, because of the internet, information is de-centralized. You can gain access to various forms of information by the click of a button. All thanks to the invention of the internet. When the internet was first introduced, it was still in its development stage. There was something called the dot-com bubble. People didn't know much about the internet and they didn't know how it works out to use it. And it was quite complicated. However, today, there are a lot of people that cannot live without the internet. Some people can't even imagine a world without the Internet. This is kind of the stage where Bitcoin is. Bitcoin is still at the beginning stage of its development, and only the future will tell what Bitcoin will eventually become. One thing to note is that Bitcoin is not the only cryptocurrency out there. There are many other cryptocurrencies such as theorem, ripple, Bitcoin, cash like coin Cardano tells us, and many more. However, bitcoin is the market leader, it holds the most dominance within the cryptocurrency market and is by far the most popular cryptocurrency. A good place to find out about all available cryptocurrencies is a platform called coin market cap. You can visit www, coin market cap.com and that's it for this lesson. Thanks for watching.
4. TradingView Account Setup & Sign Up - Appearance : Eyes can die from piggybacks. I hope you're well, welcome to the next lecture on how to use trading v. So in this lecture, I will run you through how you can set up and sign up for your own trading viewCount and show you how to customize the appearance on the trading view platform so that your charts are fit for purpose, right? So to set up a training View account, you just have to go into the trading V platform. And I've got the link in the description or in the resources far that I've provided. So if you click stop free trial, you'll be able to view the various plans that trading view offer. These plans are automatically shown monthly, but if you switch annually, you'd be able to see the annual prices and you get to save 16% on the Pro plan, on the protoplasts plan and the premium plan. As a beginner, I would recommend you guys to start off with the Pro Plan because it's got the features that you most likely use. And I would also recommend that you start with the monthly plan unless you can afford the annual plan, then great, that'll be great because you get to save 16%. But if your tie on money, you can start off with a monthly plan and you guys can just have a look and compare the plans. If you're an intermediate trade or someone who actually has a bit of knowledge on trading, you can actually go through this and see what will be mostly useful for you. Because even though the date is no point in starting off with a premium plan and they're not using half the items that are provided with the premium plan, if you know what I mean. So hence why I'm advising that as a beginner trader out, I recommend that you go with the problems. So for this tutorial purpose, I'm going to be starting off with the free trading view Pro Plan because the plan actually gives you all the resources and tools that you need to get started with trading. I mean, you get all the indicators that you need, which is five indicators and various tools such as few alerts and double screen. So as a beginner, I recommend using those various tools because I know that there will be enough inefficient for you to start learning how to trade and execute very good trades. So once you've selected your desired plan, you'd come on to this page where you just have to put in your details. And the next thing that happens is that MV sends you an email to verify your current. If you just select Activate to verify your account, you will have to verify your account again via mobile. This doesn't happen to everyone, but it may happen to you and it may not happen to you. It happened to me in this occasion, so I have to verify my con using a mobile phone number. And sometimes if you're in a different location, trading view may actually ask you to select a platform in your location. So for US residents, I know there's a pop-up that usually comes up asking you to actually go to the US side of things. And once you've done that, you just have to punch your credit card details. You don't get charged for the free 30 day trial. However, if you don't cancel your membership on the last day or the day before the 30 day trial finishes, you will be charged. So if you can't actually afford and you're just trying it out, make sure that you do cancel your subscription. But for me it's a no brainer. I use the premium subscription because it's very useful. I mean, just having alerts saves you so much time and money. It's unbelievable. Trading view has saved me so much money. So, you know, just paying the small monthly fee or annual fee says me thousands because I'm an active trader. So depending on your situation, you know, just analyze and make the best decision for you. So once you signed up for your trading viewCount and are logged in, you will come onto the page that's where I on my screen right here. Well, it's either you're going to land on this market's page or you will land on the ideas tab page, which is this page via either way it makes no difference. You will be on some type of Home page that looks like this. And you'll have a search bar icon at the top, which is what we are going to be using. Make sure that ticker is selected on here and just search for your favorite asset. So this could be a cryptocurrency or forex or stock, whatever you are interested in or whatever is your favorite asset, just tap that. In this tutorial, I'll be using Bitcoin as an example. So if I type in B Tc USD, that will pull up some charts that are available on the trading view platform. So you will notice that there's a list, right? Yeah. And then to the left-hand side of this list, you've got the pair abbreviations, and in the middle you've got the actual description of what asset that you're looking at. And to the right, you've got the exchanges that are available on trading view in terms of data of price movements on chart. So when you are selecting or asset you're looking at, just make sure that you select the one that is on the exchange that you use. So in this example, we're just gonna go with BitStamp and you will come on to this page. And on this page we're going to disregard everything on it besides this full feature top button, because this is the button that actually opens the full feature chart, whereby we'll be able to use all the trading view tools. And so if you select that button, you're going to come onto the page where it shows you that chart. And the first thing that you realize is that we've got a line chart and that is not very useful for us. So the first thing on advice is for you to change your line chart into a candlestick chart. And to do this, all we have to do is come right to the top right here, to this icon and select this icon. This is where you can change the various types of charts that you would like to use. We've got bar charts, candles, hollow candles, line charts, area, et cetera. And I only use candles because those are the traditional chance. And in my opinion, they're the best charts to use when you're doing your technical analysis because they paint a nice story that is very visual. So if we select candles, that would just change the chart into a candlestick chart. And voila, you get a nice price action candlestick representation that is ready for you to stop performing your technical analysis. So the next stage would be to make this chart feel nice and personalized in terms of, you know, the background color and just make it fit your own personality. I'm going to show you guys how my charts are laid out in terms of the background and how I like things to look. And you guys can kind of use that to cater for your own personality and representation of your own chart because you'll be spending a lot of time on this chart. So you want it to be very comfortable, easy to the eye, and suitable for your own needs to change the background of this chart on trading V. Or you have to do is either right-click and select the Settings icon. Or you can go to the top right here where there's this cog. And if you select that COG, your settings will pop up right in front of your screen and you'll be able to see them. You've got symbols, delis, line, scales, appearance, trading and events. And just to show you guys that if you right-click and select the settings icon, you get the same page. So these are the two ways that you can actually access your settings. And we are going to start by changing the background. And to change the background, you'd go into appearance and select the background so you can select yellow or green or blue, red, purple, whatever suits your needs. Personally, I like a black background, but what you notice is once you select the background to be black, the interface, the outside interface, so the white bits, you know, everything else on the outside of the chart itself is kind of, you know, it's not really easy to the ice or what I like to do before I even changed the background is I like to change the whole feel of this chart. And I do that by making sure that I enable the dark theme. So in order to enable the dark theme, I'm just going to cancel this. All you have to do is go to the top left, select this icon. And at the bottom right here you see dot-com team, if you enable that, that we just transform your chart into a nice looking, Easy to the eye, you know, tuple vibe. If you don't want to play around and make this fit your own personality. I think this is actually good for people to go with, but I like to make things a bit more personalized and suitable for my own needs. So I'm going to show you guys how I do that. The next thing I'll do is go back to settings. And under Appearance, I'll change the background to black because this is now a lack a light black. And it's okay. But personally I prefer the dark black because it just makes the candle stand out in my opinion. And I'm able to see things and available to perform my technical analysis without having troubles and is easy to the I for my liking personally. And the next thing that will change will be the vertical grid line and the horizontal grid lines. So with these, I don't even change the color. All I do is I changed the capacity. So these are kind of luck and a gray color. But I just bring the capacity down to, let's say 20. Yeah. So because I don't like the grid lines to be right in my face, but at the same time I used them when I want to be precise. Hence why I like them there in the background but not too much in my face. So once I've changed these to 20, can you see that as just nicer and easier to the eye? But that's a preference thing, isn't it? So next, we've got session breaks. This is already I'm disabled so you can't change this. You use it when you're using specific chance and skills. Text is just the text of digits on the right-hand side right here. So if you're struggling to see the numbers, you can just change the size of this text. So 14 is a good number. I usually leave mine at 14. And if the text is still not large enough for you, you can change it and it will expand. I like to leave mine at 14 because it's just nice and easy to I can just see exactly what figures I'm looking at. And then you've got all these other settings that you can actually play around with and change. I don't change these, I just leave them as default. The only other ones that you may want to change, the top margin, bottom margin, and the right margin. I tend to change these on the go because you can actually change them using your mouse, which you will go through late on. But just to show you guys if you wanted to change the top margin or you have to do is increase or decrease it and then the chart we adjust accordingly. Same thing with the right margin. If you wanted to, you know, increase or decrease, the bars will change accordingly. And the bottom margin will do exactly the same thing. Next, we're gonna go through the symbol settings. So with the symbol settings, this is just basically your settings for all the items that actually on your chart. So for example, the color of the candles that our new chart, the wick and the borders and the last price line. If you're not too sure, anytime just a quick tip. Actually, anytime that you're in your settings tab, any type of settings. And you're not too sure what the settings do. And they've got a checkbox, just uncheck them and check them, then you'll be able to actually just see, Oh, okay, so this is a setting for this piece of the puzzle on the chart. And you'll be able to quickly just distinguish what setting you're actually changing or amending. So personally, I like my candles appear brighter. These look nice. They look good, but you just have to personalize this chart according to your own personality, your own style on vibe, whichever way is going to work best for you. So you could even change these from green to a different color if you wanna use purple, whatever suits you vibe. Personally, I use the green colour. So once I've got my green selected, I like to make sure that the capacities that are a 100, well, this green candor still looks the same as the green that was there already. So if you come down here and you select, add custom color, I want to select the brightest green There is. So I'm just gonna move this right in the corner right here, where it's kind of bright. And then I will select Add, Well, first of all, that's not like a green, that's kinda bluish color. So make sure that you move this to green and then select right in the corner so they spray. Or if you don't want it too bright, you wanted a bit dark. So I'm just going to leave mine right here. At this as the color. And I'm gonna do the same thing for the red. And that looks like a nice red bright, but I'm just going to select, okay, that's right in the corner. And I like to make mine the same. So if it's Ryan the corner, I want to make the green right in the corner as well. Because I want the contrast to be the same and nice and easy to my eye. And what I'm gonna do is I'm gonna change this for the borders as well. So I want the similar color and because I've already selected that green and red beard now the first two colors right here, so I can just quickly select them. And if I wanted to check, I can just press the plus button just to make sure and yep, that is correct. Right. So with the WIC, I like making sure that I can see that this is definitely a week. So I changed the color of the week to white because then I'll be able to actually distinguish between my candle body and my candle wick, you know, the upside and the downside work. And it just it just looks I don't know. Maybe it's just me, but this just looks so good. It's nice and easy to the eye. The last Priceline, I don't really change it. So you can change this into different colors. I leave it as is because that green is nice and bright. So the last price line is the line that shows you the current price. And if it's green, it means that the price has gone up from its open price. And if it's red, it will mean that the price has gone down from its open price. So it's green right now because the price is going up from its open price. And as soon as the price goes below is open price, that line would turn red. So it will help you quickly distinguish which way the market is moving. So the rest of these settings I don't use, and usually you'd use these if you've got lock an exchange platform more broker that is connected to your trading view count. Next you can change your time zone. I'm in the UK, so mine is UTC plus one, which is in London. And you can change this according to whatever your location is. The next thing that we're going to go to is the status line. These are just basically the symbols that are on the charts. So for example, to the left-hand side here you've got these names and symbols and numbers, et cetera. So you can play around with this and, you know, take out anything that you don't need or that you don't want to be viewed on the char or to be shown on the chart. Personally, I don't change the settings. I leave them as they are because I use a lot of this information, but some people don't like showing the asset that they are on, for example, on the chart that they've got open because they are the ones that actually open that chart. So they shoot, you know, know what chai is, but sometimes, you know, I might get off the computer, do something, come back and I don't remember what charter put on XIJ, just leave you there. It doesn't really take too much space. But that's what these are force. Or if you just take one of this or for example, the symbol one is for the pair that you're trading or the pair that you're performing to Incan analysis on the show, open market status is showing whether, you know, the market is open or closed. The OH, LC values stands for open, high, low, and close. Which are these values right here. So you've got the, all the h, the l over c, the bar change values are basically showing you the percentage increase in percentage decrease of the current price on that particular candlestick. So that's this percentage right here, right at the end on whatever bar you've got selected. So can you see that the changes accordingly depending on what candlestick that I'm on. And the same thing applies with the high and the low. And you understand this once you go through candlestick analysis and how to read candle sticks, next, we've got the show buy-sell buttons. This is again for if you've got an exchange or broker connected to your trading view count. So that will be these buttons right there. And you've got your indicated titles indicate arguments, et cetera, and the background. Next we've got the scales. The good thing is all the ones that are important to me already selected. So for example, the Countdown to enclose. This is basically this Countdown To the right, right here. This tells me that I'm on a daily chart and is only eight hours and five minutes and 13 seconds, counting downwards till the daily candle closes. So if I was to change the timeframe, it'll just tell me the amount of time left before that candle closes. So that's very useful. And currency non-overlapping labels, the rest of them I don't really use. But you can play around with these and figure out the ones that you'd like to see in the ones that you would like to see, an appearance already went through. This trading is basically used when you're using a broker that is actually connected to your count on new trading view platform or an exchange. And I don't use that events is same thing similar. So I don't use these two. So I've just gone through the ones that are mainly use and the ones that are important to get started with your technical analysis. So if we select OK. We can see that this is looking good so far. I'm like in the field of this, the only thing is that these volume bars are not in contrast with these candlestick. So I'm gonna change the color of these as well. If you just double-click onto these volume bars, you will get a similar setting whereby you can change the style of the volume bars. And I'm just going to amend these to suit my needs with the color. Actually don't change the color because I like the contrast in between the bright and this light green. So all I do is I just increase the capacity. Personally, I increase it to roughly around 80% here. 80% looks good, or let's just say 75%. And I do the same thing for the red. So 75% does it for me. And then what I like to do is I like to include the volume moving average. So if I check this box, you see that the moving average of the volume is shown right here on the chart. And the precision I leave it as default. So you can actually set a precision if you like. Other people may like to view the volume in a different manner. So to change that, you just have to click this icon and then you can change the volume bars into line, line width breaks, step, line, histogram, et cetera. So if we select histogram, this will change accordingly. If you select columns, it'll go back to columns. I prefer columns, so you guys can select whatever you prefer. And another tip is that if you guys make any changes on any of these settings and you wanted to go back to the previous setting. Or you have to do is just select this defaults tab and then just select reset settings. And that will reset your setting for that particular item that you clicked on. So in this instance we add clicked on the volume bars. Hence why this is reset to its original settings. So you can do the same thing with a candle sticks. If you go into the settings and you reset the settings, these will go back to the normal or the default settings. So I'm just going to quickly meant these back to my preference. Right? So we can see that this actually looks really good, nice and easy to look at. And the next step will be to save this chart layout that you've just created so that you don't lose all your settings. And to do that, you just head over to the top right, right here, where it says are named for you guys. Some of you guys may have already saved it. If you haven't. You see this cloud right here. If it doesn't have a tick, means that your child is not saved. And to save it, you just have to click this drop down. Because I've already saved this previously. I can rename it or make a copy or new chart layout. New chart layout will create a completely new child layout. Would you begin as a default chart? So you guys can save it. I'm just going to rename this to September 20-20 and save. One thing to know is that make sure that you have auto save on because this will save you a lot of time. You may make changes and then if you forget to save button, your changes will be saved. So I would recommend to always keep auto save on. And load chart layout is for when you want to load a chart that you've previously made or created. So the good thing about trading view is you can create different layouts and use them at different times with the probe plan. It's very good because you don't need that many Chart Layouts. Like for example, I only use this one chart layout, but it's good to have that option because you've got the option to save different layouts, especially if you're trading multiple markets. So if you click this chart layout, you see different Chart Layouts that you've got and you can save them, and then you can actually just open one of your chart layout. So for example, if I just click this known, you will see that this is one of my chart layouts. So that is basically how you set up your Chart settings and appearance on trading view. And that's it for this lesson. Thanks for watching.
5. TradingView Drawing Tools & Navigation: Eyes can die from piggybacks. I hope you're well. Welcome to the next lecture on how to use drawing tools within the trading view platform. In this lecture, we will go through how you can navigate around the platform and I'll show you guys where everything is, right? So going over the drawing tools on trading view, these can be accessed by using the menu on the left-hand side right here. So first we've got the curses icon. And this would just enable you to change the cursor that you've got on your screen. So if you want an a dot cursor, you can change that. If you want an arrow, you can change that. And if you want to use an eraser, You can also use an eraser to delete any of your drawing tools that you may have already drawn on your screen. So I just like using the cross. That's the traditional one or the default one should I say, and I prefer that. And next we've got the trend line tools. This is where you find all your trend line tools, such as the trend line, horizontal line, horizontal array, the cross line, and arrows. So this is where you find those various tools. The next icon below is forgone and fibonacci tools. So you'll find all your Gan tools on your fibonacci tools right here, such as Fibonacci retrace min, trend extension based on Fibonacci, et cetera. So this is where you'll find all those tools. And below that you've got all your geometric shapes. So these are shapes such as the Brush tool, rectangles, triangles that you can use to draw on your charts. And below that you've got your annotation tools such as text, anchored text and et cetera. You can use these tools to make notes on particular points on your chart. And below this icon we've got tools for patterns. So this can be your x a, B, C D pattern, a, b, c, d patterns and your alea waves. So for example, if I was to use the Elliott Wave impulse tool, this will help you plot this pattern automatically without you having to do it manually. So below the patents icon on the left-hand side, we've got the prediction and measuring tools. You can use these tools to measure your positions. So for example, if you're on a long position, if I select this long position tool, let say I purchased right here. You can use this tool to measure your long position. You will get various information on your position, such as the risk and reward ratio. Next, we've got icons whereby you can select any icon that you'd like to use and you can reposition these and resize these accordingly. So if I select an icon and I wanted to use it just to show that this is a price point that I'm interested in. If you make a mistake, last your drawing something on your chart, or you move something by mistake, you can use the Undo buttons at the top right here to just undo the mistake that you made or redo the mistake that you made once you click the Undo button, once this redo button or become visible and you can actually use it. And as you can see, there are shortcuts to do this. You can actually use Control Z to undo this and control y to redo it on a Mac. And I believe that is the same thing for a Windows PC. You can also lock your chart by just selecting this lock icon so that you're drawing tools don't get mistakenly deleted or moved. So once you've locked these, you'll actually be able to move them or amend them. So this will be useful when you're just using your chart to do some analysis and you don't want anything to be deleted. To unlock the chart, you just hit the button again. And that will unlock. Hi, and you actually be able to move your elements on the screen. You can also quickly hide all your drawing tools that are visible on your chart very quickly by just clicking the i icon on your chart. This will make all your drawings disappear and just clean up your char. And to unhide all your drawing tools, you just have to click that icon and it will reveal, or you're drawing tools back in the same position as they were before. It is also possible to remove all the drawing tools on your chart instantly with the click of a button by right-clicking and going to remove drawings. This will remove all your drawings at once, instead of you having to click each drawing and remove it one at a time when adding multiple drawings on your chart, you can select this stay in drawing mode icon. And this will enable you to be able to actually use the same tool more than ones without it being unselected. So I'll give you an example. If I unselect this stain drawing mode tool and I select a trend line. If I draw one trend line right now, for example, I won't be able to draw another trend line. As you can see, if I click, nothing happens. This is because the trend line tool gets de-selected once I use it. However, if I actually select this stain drawing mode too, and I select this trend line again. And I draw my trend line. Right here at the top. I'll be able to draw another trend line. So I'll be able to use this tool without it being de-selected multiple times, as you can see right now, next we're gonna go through the magnet feature to the left-hand side, right over masses. If you click on this arrow, you'll notice that there's weak and strong magnet. And if I go through the week magnet first, this can be useful when you're trying to draw trend line. So if I select the horizontal lines so that we can draw some trend lines on this chart. You will notice that as I move my mouse, the cursor keeps snapping to relevant price points, one some near a candle. So this is how useful it is, which makes it nice and easy to get particular price points on a candlestick. So the main difference between the weak magnet and the strong magnet is that those strong magnet snaps to the most relevant price point E, regardless of whether mouses. As you can see, as I move my mouse, it quickly snaps to the most relevant price point. Whereas if I've got this magnet on week, this magnet doesn't just snap. It still remains where it is because my mouse is not near an actual candle. Only once I'm near candle, that's when my mouse actually snaps to the nearest relevant price point. So if you just want to turn off this magnets, or you have to do is click this icon again and the magnet icon will be disabled. So as you can see, this magnet can be useful when you're drawing your support and resistance lines. You can change the visibility of your drawings. So that they can be only viewable on particular timeframes by selecting the actual drawing and right-click on it and go to settings. You'd be able to go to your visibility. And then you can change the timeframes that this drawing can be shown or visible on. So if you select, okay, if you go to the one-hour chart, you won't be able to see that. First line. You can only see two lines right now. And if I go back to the daily chart, you'd be able to see three lines. And this is because I am ticked the hourly check box for the visibility of the top line, which means that this top line will not show on any minute or hourly chart. This setting is very useful as it will stop drawings that are plotted on low timeframe such as the five-minute chart, for example, from clogging the higher time-frame charts such as the three-day or the weekly chart, as these drawings on the five-minute chart will most likely have no relevance on a weekly or a daily chart. And all you have to do is just set it up next to use the measure tool. Or you have to do is just head over to the menu on the left and select the ruler icon right here. In order to use this ruler icon, you can just click anywhere on the screen to measure whatever you trying to measure. So for example, let's just say I want it to measure from the bottom to the top of this price action. And I just wanted to measure it to the time that we've got this massive drop in price. You can see that on this box right here, we get some information that top-left number is the distance between the two points measured in pips. And the middle number at the top is the overall market percentage represented by the measured points. The third number is just simply the measurement in terms of ticks between the two points. So this is basically pips distance without the decimal place. The bottom number is basically the amount of candles that two points have been measured over. And the bottom number to the right is basically the time period the two points have been measured over. Another quick way to use the ruler icon is by using the shortcut Shift and clicking on the chart. So you can move your mouse anyway onto the chart and hold the Shift key. And you can actually measure from 1 to another. And then you just click at the point where you want to measure two. And the last icon on the toolbar to your left is this bin icon. And there's been icon. You can use it to remove tools that are on your chart. So you can remove drawings, you can remove indicators, and you can remove drawings and indicators at the same time. So there's two ways that you can remove items that are in your chart. If you remember earlier, I did go through how you can right-click and just access these tools again easily right here. So next we're gonna talk about how you can switch in-between charts. So anytime you want to search for a different assets, you can simply just duck typing as long as you're on your chart. So for example, if I now wanted to look at a different assets, such as another cryptocurrency or a different stock, or a different forex. All I have to do is just start typing the name of the asset that I want to look for. So in this example, I'm going to just type in it dram. And as you can see, the search box will appear. And on the search box you've got. All stock futures for CFD, cryptocurrency index and economy. You can actually select one of these and then select the pair that you're looking at. And you got the exchanges written on the right hand side. So I'm just going to look at the theorem dollar on a bit Phoenix chart. And that would just change my chalk. Another way that you can do it is by heading over to the top left-hand side right here. If you select this and just type in the pair that you want to change your chart to. So for example, if you're typing B Tc USD, it'll open the same search bar. And then I can just select the one that I want to open a charter school. One thing I'd forgotten to mention is that you can add favorites on your toolbar on the left-hand side on your menu. So when you select any of these tools, you will see star signs to the right and these are usually grayed out. So all you have to do is select these in order to create a favorite tool. And once you create a favorite too, you can actually view it on your chart at all times. So this makes it so much easier to select tools that you use on a regular basis. And usually I just keep mine at the top right here. And then I'm able to access my favorite tools any second or any minute that I want to make changes to my chart, you can actually hide this toolbar as well by scrolling to the bottom left and selecting this and show favorite toolbar. And you can make them visible again just by clicking back onto this star. Next, we're gonna go through how you can move in between timeframes. So when you want to move in-between timeframes, or you have to do is just head over to the top of the chart and you will see some numbers right here. You may not have all these numbers because some of these I've added myself. So for example, I've got the five-minute chart, the 15-minute chart, 30 minute chart, and our chart for our chart, a six hour chart, a tower char, et cetera. So in order for you to switch in between timeframes, if you click on this drop-down arrow, you'll be able to change your time intervals here. You can also select your favorite timeframes. So you know the timeframes of just gone through right now, I added these by clicking on these icons and this favorites them and puts them at the top of my chart. So these are my favorites. So for example, if I took off this five-minute star, then the five-minute would be taken off my chart. And if I select it again, it'll be put back onto my chart. This makes it easy to flick in-between timeframes. So now we're going to go through how you can add indicators to your chart. If you head over to the top of your chart and select this indicator's icon, a dialogue we show up on your chart here you can search for any indicator that you would like to add onto your chart. So first you can see that we've got built-in. This is a library of indicators that come by default with trading view. So you'll have a long list of indicators that you can use from your next, we've got candlestick patterns, which will be just another library of indicators that you be able to use. Public library shows indicators that have been put together by other traders within the trading view community. My scripts basically shows you scripts that you may create and published to the public. And the volume Profile tab will show you some volume-based indicators that you can use. You can also click on these question mark icons in order to find out the description of these individual indicators. Next, we're going to go through how you can show multiple screens on your trading feature in order to do that, or you have to do is just hover your mouse to the top right on this layout icon and select layout. Here you can select what type of layout you'd want to use. So for example, if you want to chart layout split in-between the screen, if you select that, you'd be able to see two different charts at the same time. Here you should note that these layouts are available to you are dependent on the type of subscription that you have with trading view. So because I've got the premium platform, I've got access to all of these layouts. If you've got a pro platform, you get access to, to layout. So this double screen right here. And this double screen. You can check out what all other subscriptions or far in terms of layouts on the trading view website. A good way to view multiple price action on different assets, such as Bitcoin or Forex is by heading over to this watch list icon on the top right-hand side. If you click this watch list icon, you can get a list of assets that you can quickly see the prices in real time, the change, and the percentage change in real time. So you've got the symbol right here. The last price, which will be the current price for change, whichever the change, whether it's gone up or down, and the percentage change whether it's gone up or down. This is a nice quick way to just have data right in front of you whilst you are looking at different various charts. One thing to know is that I added all these assets onto this list. And to do that, you just have to type in the asset that you would like to add in the search box at the top and click Add, and it will be added to your watch list. And to hide this, or you have to do is just click this icon again in order to take a snapshot of your chart. If you want to publish it or if you want to share it with someone, or you have to do is just select this camera icon on the top right-hand side. Or you could use the shortcut of selecting out plus S. And this will take an image of your chart. You can either copy this URL link and send it to whoever you want to send the chart two. Or you can save this image and then forwarded onto whoever you want to send this chart to. In order to make your chart for screen, or you have to do is just select this icon right here, this full screen mode icon. And your child will go into full screen and to exit or you have to just do a Select the escape key. A cool feature that you can use on trading view as the replay button. So if you head over to the top of your screen and select replay right up here, you'll see this pop-up onto your screen. And with this tool, you want to ensure that jumped two is selected. In order for you to select where you want to start the replay from. So you see this vertical red line appear on your screen. So let's say I wanted to start a replay from this candle right here. So I just click on this candle on the screen, and then the chart will adjust accordingly. Once this chart adjusts this toolbar, some of these features will now be available for you to use. So the Play button, we just play the candles at the speed sets right here. So if I select play, you're seeing a live preview of the bars going up and down at the speed that is set right here. And if I select this ford icon, this will just automatically show you the next candle without playing it. And the last ford icon is to skip to the real time. So this will show you where the charge is in real time. The x icon will exit out of replay mode. However, you should notice that you can only go so far backwards when you want to use this replay mode. I'm not to show off how long you can go back, but I'm sure that there is a limit on how far back you can use this replay mode. And last but not least, and my favorite feature on trading view is the alert. These alerts have saved me so much time whilst on trading or investing in various markets. So to use a trading alert, or you have to do is hover to the top of your screen and select this button. You'll be able to select a condition that you'd like to set, whether it's on volume or the actual pair that you are trading. And you can actually set a rule whether it's crossing, crossing up, crossing down, et cetera. So you can set it as crossing. You set the value, the amount that you want there to be set on. And then you've got options to either set it for only once or every time. And you can hover above and read the description in order for you to understand what these two options do. You've got a date. And the good thing about this is that you can set your alerts for a period of up to two months. And then you can actually select what type of alert that you'd want to be notified on. So you can select this notify on app if you've got the trading view app downloaded on your phone, I would definitely recommend this as this is very useful. You can select show pop-ups so that you get a pop-up when you're on a web browser. You can select send email so that you can get an email sent to you. You can select web hook URL, and you've got an option to even get an SMS texts sent to your mobile phone. So that is really cool. And you can also play sound here. You can actually type in a message. For example, let's say it's hits a key support resistance, and that is what you are alert is for. You can just type in a key message for yourself so that you actually recognize what this alert is four. And when this alert pops up onto my mobile phone, this message will come up and I'll know exactly how to react to the market. Finally, all you'd have to do is just select Create, and then you will be created. And you'll see this dotted line wherever you are. As you can actually change these alerts by simply clicking on this dotted line and moving it up or down. And this will set it on a different position. And then you get the chance to actually make a precise value if you want to type it in and be exact. One thing to know is that you can set these alerts for a period of up to two months. And after every T1s, you'd have to reset these alerts. So one quick way that you can do that is by hovering your master this clock icon. If you select this clock icon, you'll be able to view all the alerts that you have set up. And you've even got the alerts log at the bottom that tells you when specific alerts were triggered. So in order for you to reset all these alerts, or you have to do is just select settings and select reset or inactive. So restart all inactive. We'll actually reset all alerts so that they are actually activated. As soon as you hit this button, stop all, stop all your alerts, delete, all inactive or delete all the inactive alerts and delete all will delete all your active alerts and you're inactive alerts. So another thing is you can actually filter down your alerts by the ones that are active. Select this active button. You only see the alerts that are active. And if you just want to show alerts that are set up for the current symbol that you're trading. You can just select current symbol and it will only show you the alerts for the current symbol that you're looking at. So in this example it will be the Bitcoin US Dollar pair, and I've only got one setup for that. Another quick way that you can set up an alert is by moving your mouse to the relevant point, right clicking and select Add alert. This will bring up the settings and you can adjust these accordingly. Another way that you can actually add alerts is by clicking on this button right here. You can add a lot for this particular asset at this price point by selecting this ad for BitStamp, and that will just add your instantly. Another thing to know is that you can actually add alerts on supports and resistances. So for example, if I was to draw a trend line right here on this chart, I can actually add an alert on this trend line. All I have to do is right-click the trend line and add a trend line, and then just input the relevant settings that I would like to use. So this alert feature is very, very useful. And to me it's one of the best things because it just gives you the time freedom of doing your technical analysis on trading view and leaving off the computer. And then once your key target areas are hit, you get an alert. You get back onto your computer, you either trading or trade out, and you just move accordingly. So it's definitely been one of the best things for me about trading view. One last thing to note is that once you set your alert on your trend line, once you click off it, you will see this clock icon appear on the top of your trend line. This will actually let you know that this trend line has an alert set on. And another way that you can remove alert is by right-clicking on the alert and selecting stock and then selecting Yes, that will just delete your on a trend line. You can do the same thing if you right-click on the alert, select Edit, Trend line, and then select, delete and select Yes. That will actually remove them on your trend line. And that's it for this lesson. Thanks for watching.
6. Introduction to Reading Candlesticks: Eyes can die from piggybacks. I hope you're well, welcome to the next lecture on how to read candle sticks. In this lecture, roughly in the first five minutes, I will talk to you guys letting you know how you can determine bad and good characteristics of cryptocurrencies or stocks. Then we will jump onto the chart and start learning how you can read candle sticks the correct way. Alright, so let's get right into it. So you guys know that cryptocurrencies are quite volatile. However, if you look at them the way you look up people, or let's say friends or your friends, for example, you know how people have different personalities. Will cryptocurrencies are like that? They are similar. They have different personalities per se. So some of them will be very predictable and orderly, you know. So, you know, sometimes you've got those friends that, you know, friends that are reliable, you know, the next day me, we know what they're gonna do the whole week because they are quite consistent. They don't just, you know, jump around all over the place they acquire, organized a move accordingly. And then you will have other friends that are quiet, quiet, and they don't do much, they just stay in their own lane. And then once in a while you do see them pop up. Some cryptocurrencies are like that. Some cryptocurrencies will not me very volatile, but then once in a while you will see a big boom. And then all of a sudden there'll be quite volatile. If I was to give you an example of a Cryptocurrency that has a nice personality in the cryptocurrency market. That would be something like Bitcoin or Ethereum, because those two are cryptocurrencies that are know as volatile tau as the rest of the cryptocurrencies. And that is also because bitcoin is the market leader. So most times when Bitcoin moves, the rest of the market follows Bitcoin. And when the rest of the market follows Bitcoin, they move twice as much, some coins three times as much for times and March five times as much going on. And you get some cryptocurrencies that are quite mild and typically move in small prices. Those you don't want to waste your time on those. In contrast, you know, you've got some people that are quiet midi and you never know from one day to the next which frame of mind is going to be in. You don't want to be trading those type of cryptocurrencies. However, cryptocurrencies behave that behave in a wild and crazy pattern or just like friends who act in a similar manner, you can count on them. So yeah. Sometimes they those type of friends can be fun to spend with for a few hours. But if we spend too much time with them, though, drive you bonkers, you know, they'll drive me nuts. So I would say look at it as if. You're a psychologist. So the cryptocurrencies your patient and you're the doctor whose job is to analyze the cryptocurrencies, good points and trouble causing characteristics or your now analyzing these different cryptocurrency coins. And when you learn to look at a chart with a trained discerning eye, you won't take long before you're able to judge the risk and reward for any cryptocurrency, making it very possible for you to make large profits on any cryptocurrency of your choice. So that means that if you're able to pick out cryptocurrencies that have good characteristics. You'll be able to monitor and trade with low risk, high reward setups. Our goal is to consistent profits out of the market. So it is important to make sure that you're picking orderly, more predictable cryptocurrencies because they will make you profits. Whereas if you pick disorderly cryptocurrencies that are unpredictable, playing an erotic cryptocurrency that skyrockets, increases your risk and greatly diminishes the odds of a reward, and thus what would be called gambling. So no thanks to that. And the same applies to stocks as technical analysis traders, we trade according to probability and risk to reward setups. So Token about charting essentials as technical analysis, we mainly use three types of charts, which are line charts, bar charts, and candlestick charts. And personally I use candle sticks and I recommend that you guys use candle sticks as well. And I am going to be going through a candle sticks on the trading view platform. So if you are on your trading view profile, if you select candles, you can see that the bar charts, candlestick, hallow, candles, et cetera. And personally I use candles, so you just select candles looking at candle sticks, we have to thank a legendary 17th century Japanese rice Broca, who was named M. Hama. You can Google search him if you want to know his story line. But he was basically one of the first Japanese trade is to use price history to predict Price future. And he made a fortune, huge fortune and is known to have made a 100 consecutive winning trades. Trading theories and principles have now evolved into candlestick charting techniques that we use today. So a great, great thanks to him. So right now, while you're looking at on my screen is a BCC USD char, so Bitcoin USD pair. And this is on a three-day timeline or timeframe. So all these candle sticks represent three days. And the first thing that you probably realize is that every time the candle stick his red, it's going down. And every time is green is going up, red down, green up, read down, green up, read down green up. So that is basically how you, that's one of the first things that you recognize when you're trying to read candlestick says that red is for down and green is for up. And red means that the price is moving downwards, and green means that the price is moving upwards. This is important to grasp because it helps in reading candle sticks, right? So I'll be showing you guys how to read the formation of candle sticks. So I have drawn the last five candle sticks. So if you look where my mouse is, can you see the last five candle sticks on this 3D chart? So 123. 45. I've literally just drawn these last five candle sticks right here. So we're going to look at these last five candle sticks and I'm going to teach you how you can read them. So the first thing that you'll probably notice is that, okay, well, why is there no bits poking out of the candlestick that I've drawn? The explanation for that is because those bits that are poking out a code WIX and the way of w6 is formed is due to price movements. So these candles that I've drawn so far, they're only showing you the open close. So if you recall, I told you that when you're reading candle sticks, red is price movement going downwards, and green is price movement going upwards. This helps you read candle sticks because anytime a candlestick is red, you have to read it from up, Going down. I'm just going to label this. So this right here is the open and the bottom right here is the close. So when you're reading a red candlestick, the open is always at the top and the close is always at the bottom. Now, to explain the wick when you're reading candles takes what I've drawn right now is called a body. So candles, candle sticks can either have Wix, o have no wicks. The wicks represent the price movement, whereby prices moved above the opened or below the clothes. So in this example, this is a red candle. So because the first candle right here on this chart that we've drawn, because we've drawn the last five candles, which is 12345. So this is the first one. This candle here has Wix because price moved upwards like this. And then hit a top. And then it moved down again, hit the bottom. And it moved up again. So now to label this, when the price opened, the candle would be like this. So the price opened and the price could have moved either way. You could have gone down first, so we could have gone out first. We don't know because we were not watching the candle. However, if you are watching the candle, you actually see the candle either go down or upwards. So right now we're just using an example of the price going upwards first. So if the price had gone upwards first, the candle would open. So after a three-day period is done, when this candle opened, it would open and we are assuming that it moves upwards first. So you'd have moved up first and then it will hit a high. As soon as it hit that high, a wick will be formed. So as the price has moved up, a high has been formed. So we've labeled this high. This is the highest price that this three-day candle has hit so far. And then what happened now is that the price moved downwards. And when the price has moved up, like this, this candle would turn green. If you are watching it. This would be a green candle because. It's gone from its open upwards to our high. It's gone above. It's opened, it opened at a specific price and is gone higher than the open price, this candle would turn green. So this candle would now start going down and a wick would be formed until it gets to its open price. Right here. That's when the candle would start turning red. As soon as the candle goes below its open price, it will turn red to show that price is moving downwards. So this time is gone red and rich, a low. Once it reaches it's low. We can see that looking at this candlestick, the price moved up and closed right here. That is the candle that we've got right here. This is the first candle. And to label the bottom, this would be the low. The low is the lowest price point that the candle reached. So can you see how it is important to be able to determine whether a candle is red or green, and that will help you in reading your chart. So a red candle. The open is at the top of the body. The close is at the bottom of the body. The low always remains at the bottom of the weak and the high O is remains at the top of the wick. The highs, the highest price that the candle had. So that's the highest price that the market moved within three days. Within that three day period. This is the opening price. Within that three-day period. This is the closing price within that three day period, and this is the lowest price within that the three-day period. So looking at this exact candlestick, we can see that this candle stick opened at $9,291. If we look up here, right at the top, you see an O, H, L, C. The O represents an open stage, represents the hi, the L represents the low, and C represents clothes. So instead of you trying to figure out where exactly the prices, by looking at the price on the right hand side you have a mouse is right now. You can just hover your mouse onto the candle. And the data is represented right at the top where it is o, h, l, and c. So we can see that this candlestick, the high, was $9,351.17. The open was $9,291. The clothes Was $9,233.10 and the low was $9,153.40. So that is how you read this candle. Now we're going to take a look at how you can read the green candles. So I'm just going to move these candle sticks to the right so that I'm actually able to label them. Okay. So when we're reading green candles takes you read them from the bottom, going up to the top. So with this green candle, the first one that we've got that I've drawn out right here, the bottom part of the body would be the open and the top part of the body would be the close. This is because green candles or read from bottom upwards. So we're just going to label these. All right, so now that we've labeled our candle, we're going to look at the movement of this specific handle. Remember this candle, right? However, mouses is representing the first green candle from the five last candles on this three-day chart. If I quickly label this actually, just so that we are crystal clear on which candlestick that we're looking at. So the arrow is pointing at the representative of this candle. So this candle right here is representing this candle. So when this candle opened during this three day chart out of opened down here, this would have been the open and when it opened, it would have gone either up or down. We don't know because we were not actually watching the chart could have gone either way. It doesn't actually matter which way it went because well, we just end up wanting to know is how the candle was formed and the information that the candle actually gives us. However, if you are watching the candle, you'd be able to see which way it went, where they went up first or down first. So because when we did the red candlestick, we gave an example of grain upwards first with the candle, with the green candlestick will give an example of it going downwards first. So right now, we're going to assume that when this green Canada opened, it first went downwards. So if this candle first went downwards, it would have started going down. And there'll be a red candle if you don't, if you're, if you're watching this candle, life would have gone down a little bit of a red candle and then it would hit a low. So once it hits its low right here for candle would now start moving up. And once it starts moving up, a Wiki would be formed. Right now, the candle goes back to its open price, and as soon as it surpasses its open price, it will become a green candle. So this candle will turn green if you're watching it live, and then it will start going upwards. And once it goes up, it would hit the top. And we can see that when this candle hit its top, it slowly retracing and came back down to close just slightly below the top. And the wick is not that long. It didn't go too low. So this is how our candle looks like. So to finish off labeling the candle, we know that this is the top and this is the low. So now that we've labeled our candle, we can see that below is the bottom of this week and the high is the top of this week. So there's candle opened at the bottom of the body right here, and then it closed at the top of the body, right? How high it was at the top of the weight criteria and the law was at the bottom of the weaker at half. So if we were to actually look at the amounts, or we have to do is our mouse onto that exact same candle. And we will be able to input the data or see the data or the price points of this candle. So we have an opening price of $9,934.44, a low price off $9,073.53, a high price of $9,243.36, and a close off $9,211.99. So I'm just going to input these onto our labels. Ok, so now that I've labeled this candle, we're going to go through the picture that is drawn by this candle once again. So we can see that the lowest price that this candle here in this three-day period was $9,073.53. It opened at $9,834.44 and it went to a highest price of $9,243.36 and it closed at a price of $9,211.99. So because this candle closed higher than its open, it is a green candle and you'd read it from bottom, going the top. Whereas the red candle that we went through the first time had an opening price of $9,291 and it went up to hit a high price of $9,351.17, and then it went down to hit a low price of $9,853.48 and then it went up to close at $9,233.10. Since there's candle closed lower than its opening price, it is a red candle and you'd read it from top down to the bottom, right. So I have separated the candlestick that I drew here so that we can label them together. I've also covered the ones that we went through together. So I've labeled these with arrows so that you are able to differentiate between which candles takes we are referring to so that it's just easy on the eye. So the first candle that we went through from the last five that we're focusing on up here are the one with the yellow arrow is represented by this large yellow arrow. The second red candle has a purple arrow going up, is representing the purple arrow going up pointing at candle on the actual chart. And the blue arrow pointing at the green candlestick is represented by the one I drew with the blue arrow pointing at it. Lost one that I've put an arrow on is the orange one, which is representing an orange arrow pointing at the candlestick. So I've also covered up the ones that I labeled for you guys when I was showing you guys how to read candlestick. So what we're gonna do now is we're gonna go through the first red candle with the purple arrow and air and label it together. So we will start from top green button. What do you guys think is the name of the label that I'm pointing out right now. So if you guys named this label the high, you're correct. So this is the High which represents the highest price that the candle stick would've hit or reached. What label do you guys think is represented right here where my arrow is pointing right now? If you guys labeled this as the Open, You are correct. This is the opening price of this candlestick. So what would be the label for this one right here where my arrow is now. So this would be the close if you guys named it correctly, well done. And if you didn't, don't worry, or you just have to do is go through this lecture again and within time it'll be encrypted in your head. And the last label, what would you guys name this label right here where my mouse is right now. So this one is the low, which represents the lowest price that this candlestick here. So we're going to label the green candle that has an orange arrow. And yet now, so since we labeled this one from top grain down, we're going to label this one from bottom going up. So where my arrow is right now, what would you guys named this labor right here. If you guys say you're correct, this is the lowest price point that this candle hit or reached. So moving up, what would you name this label right here? If you guys said this is the open, you'll correct, this is the opening price of the candle. This is where the price started when this candlestick opened, moving on, what would you name the label right here where my mouse is. If he named this the clothes, you are correct. This is the price point where this candlestick close that. And the last label at the top, what would you name this label right here? This is the high and it represents the highest price point that this candlestick, it or reached. So as you guys know, these candles data represents a tree. How can handle. So these price points are the highest that this candle reached within a three hour period. The closing price points within a three hour period. The opening price point within a three year period, and the lowest price point within a three on the same applies to the red candle. This is the highest point within this candlestick reached in terms of price. This was the opening price point within this candidate, but this was the closing price point within a three day or iterate. And this was the lowest price point within a three day period. So we're just going to now look at labeling, the actual pricing or the actual price points. So if we scroll right to our candlestick, which has the purple arrow, we will see that we have the OH Hplc at the top, that's where we'll find our price points just to show you that these figures change when you move your mouse. So you can see if I'm given the mass to the left, is now showing me the open high to low and the clothes for the yellow arrow candlestick, the candlestick that has the yellow arrow pointing at it and move it to the array, which is the purple line, which is the one that we actually labeled together. And the one that I'm just about to put the price points in, this candlestick is being represented. Now at the top of the data is up there. The open is $9,234.90, die is $9,282.80, the low is $9,026, $0.51, and the closest $9,932.87. So now that we've labeled the red candle stick with the purple arrow pointing at it. We're going to label the green candlestick with the orange arrow pointing at it. So I'm just going to hover my mouse right over so that we can start labeling it. So we can see that we have an opening price of $9,213.15, a high price of $9,573, a low price of $9,128.21, and a close off $9,539.51. Okay. So I've now labeled the green candle with the orange arrow pointing at it. And we have all our labels. And so I would just uncover the ones that I went through. If you guys earlier, when I was actually showing you guys are to read the formulation of these candles. Just clean it up a little bit. Okay, so we've got all our labels for four candles. The last candle is not, is not labeled. Thus because the moment that candle is live. So if you look at the price, the price has been going up and down. If you've already noticed, whilst I was doing this tutorial, the price has been going up and down. So this candle has been changing. This candle wasn't this tall before, it was roughly about this tall. And then it went up here and down a little bit and then he went up, didn't go into the red though. He was always in the green. So the price from when I started making this tutorial, the price has been on an upward trend, right? So we've got our candle sticks and they've all been labeled. And I would suggest that you guys really grasp how to read these candle sticks because it'll be very important and useful for the upcoming lessons. So just to recap, red candle sticks, you read them from going down to the bottom. And green candle sticks you read them from bottom, going up to the top. And the red candlestick has an open at the top of the body. And the closer the bottom of the body and the green candlestick has an open at the bottom of the body. As a close at the top of the body to high and low are always at the same place. The eyes always at the top. Or the price point though, is that the highest point? The law is always at the bottom, which is the lowest 0.1. Final thing that I need to show you guys is that you can get a candle with no WIX. And I'm going to give an example, this last candle. So if you were to get a candle with no weeks, let's say the candle is green like this one and it's gotten on weeks. How do you think this candle would be labeled? So given an example of a green candle and it's got no wakes us just got a body. How do you guys think that this will be labeled? If he said that the bottom of the body would be the open, you're correct. And if he said that the bottom of the body would be the low, you're also correct. So any candle that has no wicks that is green, the bottom of the body is the open and it is also the low because it is the price point whereby the candlestick opened. And it also is the price point whereby the candle, it's lowest price. So the top of the body would be the close, and it would also be the Hi, this is because the top of the body will be the highest point that the price reached. And it is also the point whereby the price close. I'm just going to label these out for you now and then we'll go through a red candle, right? So I've actually labeled these two candle sticks with known weeks. So as you can see, the bottom part of a green candle with no work is both the open and the low. And the top part of the body of a green candle is both the close and the high, looking at the red candle with no wick. The bottom of the body is both the clothes and below. And the top part of the body is both the open and the high. And that's it for this lesson. Thanks for watching.
7. The Doji Candle: I hope you're well. So now that we know how to read Canvas tics, we're going to go through some basic candlestick patterns. So as technical analysis, we actually use probability to determine price movements based on historical data and human psychology. So for now, we're going to explore some major candlestick patterns that when used properly, can produce really good profits. As you can see, this is what we had on our screen in our previous lesson. This is what we went through when we're learning how to read candle sticks. And if you recall, when a candle is red, it means that the cryptocurrency closed below its opening price. Therefore, we would read the red candle from the top women masses, yeah, going down to the bottom of the body wherever masses, yeah. And when a candle is green like this one right here, it means that the cryptocurrency closed above its opening price. Therefore, a green candle is read from bottom to the top grade now. So the open is always at the bottom of the body and the closest always at the top of the body. And when he spoke about the high and the low, the highs always the highest price point where the price reached and the low is always the lowest price point whether price reached. So in this example, the higher would be at the top of the wick and right here the load B at the bottom of the week. And when we spoke about the high and the low on a candle that has no wicks, the high and the low on the body. So in this example, the open and the low at the bottom of this screen candle and the close and the high at the top of this green candle, for the red candle, the clothes and the law at the bottom of this red candle and the open and the high at the top of this red candle. So just by looking at the candles, it gives you an instant picture of a positive or a negative close just by looking at the color of the candlestick. So now that we've had a quick recap on how to read candle sticks. We're gonna go through some candlestick patterns and the market psychology behind candle sticks. So I'm just going to throw some candle sticks for you guys and then go from there. So I've drawn three candle sticks and I've labeled them a, B, and C. Now looking at a, you'd notice that there's a long green body on this candle. This long green body shows the closing price, $500 above the opening price. This indicates an extremely positive or bullish sentiment. Whereas if you look at Candlestick P, the long red body is showing the closing price, $500 lower than the opening price. This shows a negative or a very bearish sentiment. Next, looking at Candlestick, see this formation where the cryptocurrency opens and closes at the same price is called the dough G with a dodgy no real bodies prison. This is because buyers could not apply enough bullish pressure to close the cryptocurrency price higher than the open. And sellers could also not force enough bearish pressure to close the cryptocurrency price lower than the open. This reveals a collective mindset of indecision. So a DOJ candle is an indecision candle. When you see a dodgy candle in an operand, it shows a strong reversal probability to the downside. This is because there will be indecision within the market. The same applies in the opposite direction. If you see a dodgy candle on a downtrend, this increases the probability of a reversal to the upside due to the collective mindset of indecision. Therefore, I'd highly recommend that you memorize and learn the DOJ candle, right this moment, it is a very important and powerful candlestick. As traders, we need to stay on top of trend changes and reversals at all times y, well, because they act as valuable entry and exit points and also money management signals, candlestick patterns can be read alone, but are extremely powerful when used in conjunction with other charting indicators. Therefore, I have a selection of important patterns that I'll be going through in future lessons, such as combining candlestick formations with moving averages. And that's it for this lesson. Thanks for watching.
8. The Hammer & Hanging Man Candles: I hope you're well. So next we've got two candle sticks that are very similar. We've got the hammer candlestick, and the hanging man candlestick. So these candle sticks can be very powerful to determine an upside trend that is about to end or a downside trend that's about to end. Their real bodies are small, as you can see right here, where my mouse is, they've got a small body and a long width at the bottom. These can either be green or red. So you can get a hammer candle that's actually green or red. And you can also get a hanging man that's actually green or red. The width at the bottom of a hammer should always be at least twice the length of the real body, same as the Hanuman. The week should always be at least twice the length of the body and they should always have shaven heads. What I mean by that is that they shouldn't be a wick to the upside, as you can see in the images right here. So these basically look like a hammer. So when you see a hammer form in the context of a downtrend, it may signify that the downtrend Wu slow down and change direction by moving sideways or reversing to the upside. So think hammering it back up. So this can be a very strong indicator on change of momentum. And if you see a hanging men bring in an up trend, the connotation is almost evident right away. It's time to take profits if you're in a long position, because a hanging man in an up trend will signify that the upturned will slow down and change direction by either moving sideways or reversing to the downside. So the market psychology behind these two candles are as follows. So when you look at the hammer, for example, you guys already know that the open would be at the bottom of the body and the clothes would be at the top of the body. So this candle would have opened right here like this. This is how the candle would have opened when people are trading, they are bears and bowls. So the bears are the people that are selling and the bulls are the people that are bys. So what would happen is the Bears would have pushed this price down and this candle would have been read on whatever timeframe that you'll be watching, the breath would have pushed this price downwards, downwards, downwards until it hit bottom right here. And once it hit the bottom, the bowls would've said, no, we're not having it and started buying back, buying back, buying back, which is pushing the price up and push the price up, push the price up, push the price up and surpass its opening price. And once it surpasses is opening price, this candle will go back to green and then surpass its price and carry on surpassing its price until it closes right here. And then a hammer candle would be formed. So this would've happened on a downtrend. I'll show you guys an example once I've explained the market psychology behind the hanging man. So the hanging man is the opposite way. So looking at the hanging man, you guys already know that the opening is at the top of the body and the closes at the bottom of the body. So what would happen here is that this candle would have opened right up here and the Bears would have pushed this price down, down, selling, they'll be selling whatever cryptocurrency This is, there'll be selling the coin and selling it and selling it was the selling it, the price would be moving downwards and the price would be going down and going down and going down and then he hit a bottom. So this would be the lowest price that this candle would have. It. And then what would happen is the bowls would've stepped in and started pushing the price backwards up by buying. And there'll be buying and there'll be buying and there'll be buying and buying and Dubai, and they'll carry on buying until it got to its close, which is right here. And then you'll have a hanging man. The reason why this is a strong candle is because as we've seen, the cell is pushed the price down very far. And then the boost tried to push the price back up, but they were not able to push the price back up, posit its opening price. So you can say that the Bears have won this battle because the base managed to push the price down from its opening price further down. And then looking at the hammer candle again, because bears were not able to keep the price below its open price. This is why this green candle signified as a very strong bullish candle. And the probability is likely that the bullseye in control because they managed to push the price up past the opening price. Okay, so let's look at an example of a hammer candle in action. So I've just drawn a representation of just candle sticks going up and down. And we'll gonna go through the hammock handle in a downtrend. So as you can see right now, we're looking at a downtrend. This is a downtrend, the prices moving downwards, as you can see right here, we've got red candles, the prices moving downwards, and then we get a hammer candle, which means that with this hammock handle, when the price opened right-hand, the Bears would have pushed the price down to hit a low down here. And the bosom of stepped back in. And both the price up to defend the price from going any lower, and defended the price and defended the price that findall price back to its opening price. And not only that, the Bose would have defended the price and bought back to the extend that the price went up and closed as a green candle, which shows a bullish momentum and the probability of change in direction of this downtrend to an up trend. And as you can see here, this hammer turned into an up trend and then we started training going up, the prices just died, going up and up and up and up. So this is the psychology behind how Macondo in a downtrend, anytime you see a hammock handle and a downtrend, it's a good sign. So you'd use it to look for a U-turn in price, either Price who stopped moving sideways, or it can actually make a u-turn and go and turn into an up trend, right? So we're gonna go through the hanging man. Now, as you can see in this example, we have an operand right here, where the price is going up and up, and up, and up and up until we see a hanging man right here. As you guys know, the price would have opened at the top of the body. The Bears would have pushed the price down a low and the Bowser of attempted to push the price back up. However, the books would have not been able to push the price up back to its open price, no, above its open price. So we can say that the bears actually won this battle, and it's looking like the booze have lost this battle, which increases the probability of the trend changing to either a sideways movement or a downtrend. So this is why it's a very powerful candle. The hanging man is a really good candidate to look out for when you're having a look at charts. So taking an overlook, these two candle sticks, we can see that they work very similar. So the hammer works in a downtrend whereby if you see a Hummer or the end of a downtrend, it will indicate a change of momentum or a high probability of a change of momentum. Either price will stop moving sideways, or price may take a U turn and start moving to the upside and stop forming an up trend as shown in this image right here. And the hanging man works in an up trend, whereby if you see a hanging man at the top of an up trend, it can indicate a change in momentum, either price moving sideways or price moving to the downside to stop forming a downtrend as shown in this image right here. One thing to keep in mind though, is that these candles takes the hanging man and the hammer can also either be green or red. So in an example using the hammer, this candle can actually be read and it can actually still be a strong indication of change in momentum to the upside. And same as the hanging mantis, hanging man candle, can actually be green and show a strong probability of change in momentum to the downside, the main difference in the color is that in an up trend, the red hanging man signifies a strong probability of a change in momentum and same as in a downtrend, a green hammer signifies a strong probability in change of momentum. However, these candles takes when we go through charts, you'll be able to see that they can work either as a green candle or a red candle. And that's it for this lesson. Thanks for watching.
9. The Bullish Engulfing & Bearish Engulfing Candles | Two Candlestick Patterns: I hope you're well, except now we're gonna go through two candlestick patterns. So on the left-hand side you can see that we've got the Polish engulfing pattern. And on the right-hand side we've got the perishing golfing pattern. These two candlestick patterns always have two bodies that are green and red. And as you can see, these two patterns always consists of opposite color bodies. So we'll go through the bullish engulfing pattern first. So looking at the bullish engulfing pattern, you can see that we have a red candle right here and a green candle right here. These are the two candles that were looking at when we're talking about the bullish engulfing candlestick pattern. In a bullish engulfing pattern, the second body must completely engulf the first body. So in this example of this Polish engulfing pattern, the opening price of the second real body must be lower than the closing price of the first body. And the closing price must be higher than the opening price of the first. So as you can see here, the opening price of this candle is lower than the closing price of this candle. And contrary, closing price of this candle is higher than the opening price of this candle. So the green candlestick completely engulf the first body of the first candle, which is the red candle. And that would be a bullish engulfing pattern. So if we're talking about the bearish engulfing pattern, the flip side of this is what happens, which makes it bearish. Therefore, the opening price of the second body must be higher than the closing price of the first body. And the closing price of the second body must be lower, the opening price of the first body. So as you can see here, where my mouse is, the opening price of the second body is higher than the closing price of the first body. And the closing price of the second body, where my mouse is right here, is lower than the opening price of the first body, where my mouse is right here. This is how we determine a bearish engulfing candle pattern, and that's it for this lesson. Thanks for watching.
10. The Dark Cloud & Bullish Piercing Candles | Two Candlestick Patterns: I hope you're well. So next we have two important reversal pattern candle sticks on the left-hand side, right here we have the dark cloud. And on the right-hand side right here, we've got the bullish piercing. So I'm going to go through the cloud first to begin with. So looking at this reversal pattern called the dark cloud, this is also candlestick pattern that indicates potential change in momentum when it appears at the top of an up trend. So as you can see, this is an up trend, and then the dark cloud appears within these two candle sticks right here. The green candlestick that my mouse is over, and the red candlestick that my mass is over right now. So these two candle sticks right here represent the dark cloud. So looking at the first candlestick, the green one, we can see that it has a long and green body right here where my mouse is. And the second candlestick has a long rigid body right here where my mouse is. And this red body opens above the close of the green candle. So this opening price right at the top of the red body, the open. And you can see that this opening price is above the close price of the green body of the candlestick right here where my mouse is. And where you can also notice is that the close of this red candlestick, which is the second candlestick, closes deep into the price of the green candle. So when I say deep into the price of the green candle, I'm referring to the range. So as you can see, this candle goes within the price range of the green candlestick and closes quite deep within that candle. So this price right here where it closes, is deep within the price range of the first green candle, as you can see right here. And this is where the red candle closes. And the deeper that the red candle goes into the green one, in terms of range and the closing price, the more bearish the signal is. So, for example, this candle went deeper and closed deeper within the price range of this green body candlestick. And the more bearish It was. And the dark cloud indicates exactly what the name conveys. It means that a storm is coming. Therefore, if you're in a long position, you should be looking to get out of that trade and take your profits. Okay? Now looking at the right-hand side, we've got the bullish piercing pattern. And this pattern forms on a downtrend. So the bullish piercing pattern is the reverse of the dark cloud candlestick pattern. It resembles the bullish engulfing pattern that we went through in the previous lesson. In the sense that the second candlestick, this green candlestick, her hair. It opens below the close of the red candlestick where my mouse is at. The piercing pattern shows that the body of the second green candlestick, where my mouse is and has to open and rise at least halfway into the previous red candle sticks body. So this green candlestick right here has to rise into at least past halfway off the red candle sticks price range. The body of the price range, this green candlestick RIAA, has to go pass at least halfway the price range of this red candlestick body. And once it does that, then this pattern holds true. And the probability of a change in momentum is likely. Therefore, the more that the green body pierces, the red one, this price point right here. The more that this price point pierces through the red one, the greater the chance that it is a strong reversal signal. So in this candlestick pattern right here, takes place at the bottom of a downturn and the probability of a change in momentum is likely to happen, which means that price will most likely change direction to the upside and an up trend would begin. I would recommend that you memorize the candlestick pattens for the cloud cover and the bullish piercing pattern, as these two patterns are powerful and can signal reverse in momentum on an up trend or a downtrend. And that's it for this lesson. Thanks for watching.
11. The Harami & Harami Cross Candles | Two Candlestick Patterns: I hope you're well, right. So next we have their Rami candlestick pattern right here to the left-hand side. And to the right hand side, we've got the Rami cross candlestick pattern. So these are two candlestick patterns that can also indicate a trend change. And the word hero army actually means pregnant in Japanese. So I'm gonna go through the Rami candle on the left-hand side first. And this pattern consists of a long green candle that endows the subsequent read candlestick right here where my mouse is, the long here, the green one is considered the mother. And the second canvas deck on the right, the small loan is considered the baby. In this pattern, the long green candle must form first, with the smaller candle appearing. Second, the colors don't necessarily have to be opposite, so the colors don't have to be green and red. There could actually be both green or both red, but the pattern has to be as described. However, you will find out that they usually appear in those colors. And if you haven't already noticed the reverse of this Rami candlestick pattern. Here is the bullish engulfing pattern with their Rami candlestick pattern. As long as the first candlestick pattern body, the green run, right? Yeah. As long as this body is relatively larger than the second body, which is the red one right here. And the second is short. The width for the second body can extend above or below the first body. So the width at the top can form a higher, that is higher than the body of the Aramaic green candle to the left, right here. The wick to the bottom can actually extend to go lower than the open of this green candle body. These weeks don't necessarily have to be within the range of the green body. Bahrami pattern doesn't warn us much of a dramatic reversal trend change within the market. However, it does indicates that the current trend may slow down and that there would be a high probability of sideways movement. And this usually is priced drifting sideways for a while. Looking at the Raman cross on the right-hand side right here where my mouse is. This candlestick formation forms on the second candle stick is a dodgy. This candlestick right here, long red body, such as the ones shown in this example, would suggest a strong bearish signal. Whilst in contrary, a green long body would suggest a high probability of a strong bullish move. A dodgy, As mentioned before, translates into indecision and uncertainty. Therefore there her army cross can be a possible reversal signal. So make sure that you pay attention when you spot this pattern during an operand or a downtrend, as this will signal that there is a high probability of a change in momentum or direction. And that's it for this lesson. Thanks for watching.
12. The Evening Star, Morning Star, Evening Doji Star & Morning Doji Star: Hi, I hope you'll Well, so now we're going to go through three candlestick patterns, which includes star candlestick, which are candle sticks at the top or bottom of a trend. So star patterns represent strong and valuable reversal warnings. The formation of strong reversal patterns doesn't just keep you informed of a potential setup for entry points. But these formations also indicate efficient profit taking signals. This is because if you're in a long position and you see a reversal pattern forming that indicates that the price may make a u-turn to the downside soon. Therefore, you should most likely grab your gains very quickly. Using star candlestick formations will help increase your chances of getting out of a trade right at the top. So now looking at the diagram that we have right here, you can see that we've got four different star patterns. At the top, we've got the Evening Star and the Morning Star and the bottom we've got the evening DO gee Star and the Morning DO g star. So for candlestick to qualify as a star candlestick, the candlestick actually has to appear at the top or bottom of an up trend or downtrend and have a short body and the slight gap open higher in an apparent or lower in a downtrend from the previous candlestick. So looking at this evening star candlestick pattern for example, you can see that the previous candle state, this green one right here, closes, right? However, mouses and the red one has a gap in between. Before it opens the red star candle has a gap between where this green candlestick closed and whether read one opened. So this red candlestick is opening just a gap above the close of the green candlestick. And on a downtrend looking right here to the right-hand side where my mouse is that now you can see that this dark candlestick, the previous candlestick is a red one. Right here on this downtrend. This dark candlestick has a gap before it opens, after the close of this previous red candlestick. So it's got a gap in-between it and then it opens. So this shows that this is a star candlestick Looking at the bottom right here. The same applies in this upturned. You've got the green candlestick right here. And the star candlestick opens with a gap in-between the previous candle and the star candlestick. And the same applies at the bottom to the right on this downtrend, the previous candlestick is this red one. And the star candlestick that forms opens with a gap between the previous read candlestick and the Green Star candlestick right here, which is a dodgy. So now to talk about the co-stars, when I say co-stars, I'm referring to the candle sticks before and after the actual stock candlestick at the top or bottom of an up trend or a downtrend in the context of an upturned, the first body has to belong in green, like the one in this example, this evening star pattern. The first body is long and green, and then it's followed by the star appearing at the top right here, where my mouse is. And then. Third candlestick, which has to be long and red light. The one right here where my mouse is, which is the candlestick. And this candlestick has to be penetrating the green body of the first candlestick. So this green one, you can see that this red candlestick penetrates into the price range of the green body, which is the first one right here. And in a downtrend, the contrary applies. The first body, which is this red one right hand, this example of the morning star, this red candlestick, the first candle stick in a downtrend. The first body should be long and red, followed by the star appearing at the bottom. How am I mouses? And the third candlestick body moving up well into the first body of the red candle. So this green candle, Ms. up, penetrating into the price range of this rigid body right here. So looking at these candlestick patterns, the Evening Star and the Morning Star were both named by the Japanese. And when the star emerges as a dodgy, it's an even more powerful warning that a reversal maybe coming. So hence the names evening and morning DO g star as outlined in this example, right? So while we're looking at the dodgy, let's check out some variations on this extremely powerful candlestick. Do g, such an extremely powerful candlestick that maybe wishes stock holding at a dynamite stick instead of a candlestick. Well, when you spot a dodgy and remember that it's most perfect place for forecasting of position is at the top of an up trend or bottom of a downtrend, you should consider the following points. Point number one would be traditionally that DOJ opens and closes at the same price. But if you spot a near dodgy where the prices are within a few digits of each other. It is still a significant signal Adobe that appears in a sideways move complementing by other doggies. Candle sticks with short bodies are somewhat not as powerful of a signal of change. Point number 380 g can be viewed as more powerful at market tops rather than market buttons. This holds true, especially when the candlestick before the DOJ is a long green candle, such as the one in the evening star pattern. Think of it like this. Along green body equals strong bullish opinion. And then a dodgy developing after, which equals indecision by market players to pay a higher price. Well, what will this most likely result in? I think a possible pullback or profit taking may soon follow. This is what these Golgi star candlestick patterns represent. Point number four, a dodgy that confirms a trend top or bottom would turn into support or resistant areas in many occasions, point number five, when an asset in an upturned pulls back to support and then forms a dodgy that indicates that the market may be ready to turn and resume its operand. The same applies for an asset in a downtrend if the price rebounds back to the resistance followed by the formation of a dodgy, chances are high that the price may drop back to the downside. So therefore, it is important to note that these formations only signal probabilities. Hence, why I say that the price may, the keyword here is May drop or may resume. It's upturned. Always wait for the next candle to confirm price direction. And that's it for this lesson. Thanks for watching.
13. The Long-legged Doji & Gravestone: Hi, I hope you're well. So now we're gonna go through two additional distinctive DO G formations. So to the left-hand side, we've got the long legged dodgy and to the right hand side we've got the gravestone dodgy. So I'm gonna start by going through the long legged dodgy. So the long leg dodgy has a long upper wick, long lower Way, and its appearance at the market tops should definitely grab your attention if you think through what has actually happened to form one of these dodgy, you will realize why they emergencies so meaningful. Let's say the price opens at $50, for example, on this long legged, dodgy. So if price opened up $50, buying pressure would push it strongly to high, then selling pressure would shove the price back down to its open and even go much lower than its open to form a new low right down here at the bottom. But still, this candle closes at or very near the opening rise right here at $50 or around $50. Well, so what is the conclusion? Total indecision, neither the booze nor the beers have the strength to raise or lower the price above or below the open price? Can you see how that may cause bulls to shrug and take profits during the formation of the next candle. Well, remember, the market doesn't like indecision. Looking at the right-hand side, we've got the gravestone TO G. When you see a gray stone dodgy form in an up trend and you are in a long position. I would suggest that you think about taking profits immediately. That way you can smile and hold the exit door open. Screaming stampede that usually follows after. Remember that candle sticks out by painting the picture of a market. If you get good at reading candle sticks, you will definitely be able to forecast the picture based on historical data. As you can see in this example, the gravestone DOJ he opened and closed at the low price of the day. So right, how am a mouse's, you'll be able to see that the price rises to a new high drawing along awake. So this price would have raised to a new high. The Bowser pushed it to form a new high and along which would have been formed because the Bears would have reacted and pushed the price all the way back down to it's open and closed there. Therefore, that long upper wick spells a gloom and doom for the Bulls. The picture painted here is that no matter how much the Bulls absorbed supply, the bears squashed the price back down to the low and closed it there. Remember that the point at which an asset or market closes on the day is a very significant signal in itself. So this is looking very bearish and that's it for this lesson. Thanks for watching.
14. The Spinning Tops & High Wave Candlesticks: I hope you're well. So the final candle sticks I will be going through with you guys are spinning tops and high wave candle sticks. So let's start with spinning tops, which are to the left of the screen. These candles takes have small bodies, can be either off-color, which means that they can either be red or green. And the length and range of their wicks can vary. Of spinning tops as slightly kinder, gentler versions of dodgy to the right-hand side, we have their siblings, which are high wave candle sticks. These are spinning tops, which have very long weeks, either to the upside or downside oil than both. And a group of high wave candles takes ME forecast a trend reversal. So in previous lessons, you've learned some of the major candlestick formations and patterns that will alert you to possible changes or reversals in trends. Many more exist and you can study books by Steve Nissen and others for additional examples and explanations. I find that candle sticks are part of the foundation and trading and technical analysis as they represent price movement. And if you continue to study them, it'll be time well-spent. And that's it for this lesson. Thanks for watching.
15. What are Timeframes? The Introduction: I hope you're well, right, so now we're going to talk about timeframes. So what are timeframes? Well, in trading, a timeframe basically refers to the amount of time that a trend loss for in a market. This can be identified by using the timeframes on the charts. So for example, on trading view, you know, we went through how to switch in between timeframes. So you can look at a daily chart, a twelv hour chop, an eight hour chop a for our charter and our char, and a five-minute chart as so. And all these charts show you different timeframes. They are showing you the same exact same data, but just at different times. That is all that is happening right now. And I'm switching in-between timeframes. So the importance of time-frames is that in order for you to make money consistently in the markets or for you to make good, profitable trades, you need to learn how to identify an underlying trend. And you probably have heard some common cliches such as, you know, trade with the trend or the trend is your friend. This is very, very true because trends are basically your bread and butter when it comes to making profits in any market. The question is, how long does a trend last fall? And when should you get in or out of a trade? Well, oh, this will be answered in this lesson. And hopefully by the end of this lesson, you'll be able to actually fully understand how timeframes are very valuable and how to use them and navigate through different timeframes. So before I dive deep into the chart and actually showing you how we can use timeframes and exactly how they work. Keep this in mind. Note that a timeframe refers to the amount of time that a trend loss for in a market. And now primary or intermediate timeframes are actionable right now and are of interests mainly to day traders and high frequency traders. However, it's also important to note that other timeframe, such as the daily and weekly timeframes are important and should be on your radar even when you are a day trader or high frequency trader. Because you can use these to confirm a pattern or indicates simultaneous trends that are taking place. This is very, very key because simultaneous trends are very powerful. However, in general, longer timeframes are usually used by position traders or long-term traders. And these are usually the long-term investors who focus on weekly charts whilst using monthly charts to define the primary trend and daily charts to refine entries and exits. A general rule for time-frames is that the longer the time frame, the more reliable the signals being given r. So as you drill down into timeframes, the charts become more polluted with false moves and the noise. So when you move to the five-minute chart, it can seem as if an asset is bullish when indeed it is not. Because even though it may look bullish on a five-minute chart in the grand scheme of things, that asset can actually be very bearish. So this is why it is important to understand timeframes and know how to use them. Ideally trade as you'd use a longer timeframe to define the primary trend of whatever the trading. So once the underlying trend is defined as a trader, you can use your preferred time for him to define the intermediate trend and a faster time for him to define the short-term trend. Hence, why we have different types of trade is, and as we go through this lesson, you may be able to lean towards one of these trade is one thing for sure is that once you actually stop practicing trading, you'll be able to notice or pick what type of trade or you are based on your personality. Some people can be all three, but most people tends to lean towards one type of trading. So we've got a swing trader who focuses mainly on daily charts for decisions and could use weekly charts to define the primary trend and a 60 minute chart to define the short-term trend. Sometimes swing trade is even used the for our chart, that our chart and the 12-hour chart, as they usually take positions, that lasts a few hours or a few days. A day trader could trade off a 15-minute chart, use 60 minute charts to define the primary trend and the five-minute chart, or even a tick chart, which would be like a one-minute chart to define the short-term trend. And the last type of trader is a long-term or position trader, who usually is an investor or a long-term investor who focuses on weekly charts whilst using monthly charts to define the primary trend and daily charts to refine entries and exits. So in summary, you could look at it like this when you're picking a timeframe is molded according to your personality. So if you are a person who likes a fast-paced environment, most likely your personality will fit in with a day trade is personality because when your day trading prices move very quickly, whereas in if you swing trading, a bit more patient, things move a bit slower, but at the same time, things will move at a nice and steady pace. So when I say things, I'm referring to price movement. Therefore, you will be getting into and out of trades every three hours, four hours, six hours, 12 hours a day, two days, three days, or saw bass, how it is for a swing trader. Whereas in, if you're a day trader, you will be getting in and out of trades every 30 minutes, ten minutes and hours, five minutes, two minutes, et cetera. And lastly, you've got position trader or a long-term trader. These are usually investors who don't mind sitting on an asset, so they'll purchase an asset and DOE mind holding for a long period of time. Hence y, position traders use the weekly time for any more than the five-minute timeframe. This is because if a position trader or a long-term trader was to look at a five-minute chart. It doesn't benefit them in any way to be looking at that chart because they are going to be holding that asset for a long period of time. Hence why it's best for them to look at a longer timeframe. So these are key points that you should keep in mind whilst I explain how you can use timeframes, and that's it for this lesson. Thanks for watching.
16. Big Picture Little Picture - Understanding Timeframes: Hi, I hope you're well, right, so in the previous lesson, I went through key points that are important to know when you're going through timeframes. However, in order for you to be able to apply timeframes correctly in your technical analysis. It is important to fully understand how timeframes work on the trading view platform or any platform that you're using to do your charting. The best way to view time-frames is by looking at them as a big picture and the little picture scenario. So the little picture represented by all the lower timeframe. So the five-minute chart represents a literal picture. The 15-minute chart would represent a little picture, but that picture would be just slightly larger than the five-minute chart picture. And the 30 minute chart represents a literal picture, but that picture will be slightly larger than the 15 minute chart. And the higher the timeframe, the larger the picture. So the daily chart, for example, represents a big picture. However, a weekly chart represents a bigger picture, and the monthly chart represents an even bigger picture. I hope you're kind of seeing the picture that I'm trying to paint here now, a good example is when you're using a map, heavy ever used any type of map, I'm sure at least you have used Google Maps before. So think about Google Maps when you're going from a to B, when you type in your post code or your address of the location that you're coming from and the location that you're going to, the map will show you a big picture of your roots that is almost similar to the bigger picture on a trading charts. And then once you actually start your roots, the map whose zoom in and it will show you the smaller picture, which you'd be exactly what road you're on, and then you'd be able to take your directions from there using the smaller picture that is similar to the small picture within a timeframe in trading. So think about it this way. Anytime you're looking at it from a big picture, it's almost like when you're looking at it from far, far away and you're just able to see the overall picture. And anytime that you're looking at it from the little picture, your proper diving into the details of things, and you'll be seeing things that are really close range, right? So let's just dive into it and then show you exactly what I mean on the charts. So once you're in, you're trading view platform on the top of your chart, you'll see some timeframes. I have the one-minute, five-minute, 15 minutes, 30 minutes, et cetera, added right here at the top where my mouse is, to add these exact same timeframes, the same ones that I have added myself. Or you have to do is just select this drop-down arrow and then favorites all these timeframes that I have as favorites on my chart. That way you will have the exact same time frames on your chart. However, you can amend these according to what type of trade or you'd like to be. So for example, if you want to be a position trader, you may not need the one minute and five-minute chart. You may just choose to just select the 12-hour chart, the daily chart, the weekly chart, and the monthly charge. Because position traders are willing to holds they trade for really long periods of time. If you are a swing trader, you may just choose to use the our charts. To our chart and the four hour chop may be the 12-hour chart and the daily chart. And then if you're a day trader, you may just want to use the Minotaur, the five-minute chart, the 15-minute chart, 30 minute chart, and the our chart. So just add these according to the trader that you end up choosing to be. But for now, as we're learning how to use these timeframes, I would suggest that you add all the ones that I've added on my chart. Right? So in order to fully understand how these timeframes work, I'm going to give an example of two candles takes less, say, we draw two different candles takes right here. So this is candlestick number one, and this will be candlestick number two. And both these candles takes R1 our candles. So these candle sticks on a one-hour chart, you'll be able to see two different candles because these are worn our candles. However, on a two hour chock, you'd only see one candle that represents the two candles. And this is because one hour, one hour is two hours. So you will only have one candle on a to our chart that represents two candles on an hourly chart. So let's go through this. So looking at this five-minute chart, how many times does one minute go into five minutes? That's five, right? So five one-minute candles would represent one five-minute candle on a five-minute chart. Now how many five-minute candles would make up? 115 minute candle. Think about it. All you have to do is divide 15 minutes by five-minutes. So how many times does five minutes go into 15 minutes? That would be three. So three five-minute candles represent 115 minute candle. A 50 minute chart. How about a 30-minute chart? How many 15-minute candles represents a 30-minute candlestick on a 30 minute chart. That will be 215 minute candle sticks, because 30 minutes divided by 15 minutes is two. Therefore, 215 minute candle sticks would represent 130 minute candlestick ordinate 30-minute chart. So we're going to go through a few questions to further our understanding. So how many 30-minute candles would form a to our candle? I'll give you guys a moment to think about that. If the answer you came up with was for you're correct. If you divide two hours by 30 minutes, you will notice that you will get an answer of four, which means that for 30 minute candles would represent one to our candlestick on a to our chart. So how many to our candle sticks would form a four hour candle? If you guys came up with the answer of two, you're correct. So to to our candles takes. Would represent one for our candlestick or for our chart. So now we're going to do a bit of a harder one. How many to our candles would form a day the candle. If the answer that you came up with was 12, then you're correct. So 12 to our candle sticks on a two hour char would represent one daily candlestick on a daily chart. So let's try another difficult one. How many for our candle sticks would form a daily candle? The answer is six. So six for our candle sticks on a four hour chart represents one daily candlestick on a daily chart. So how many five-minute candles would form a one hour candlestick? If you came up with the answer 12, then you are correct. So 12, five-minute candles represent 11. Our candlestick on a one-hour chart. How many 15-minute candles would form a to our candle? If your answer was eight thin, you're correct. 815 minute candles takes on a 15-minute chart represent one to our candle on a two hour candlestick chart. Okay, let's do one last one. So how many 30-minute candles would form a four hour candle? If your answer was eight, then you're correct. Eight 30-minute candles takes on that 30-minute chart represents one for our candlestick on a four hour chart. Can you guys see how these different timeframes represents a small picture and a big picture. So for example, three five-minute candle sticks represent one candlestick on a 15-minute chart, and 9615 minute candle sticks would represent a daily candlestick on a daily chart. Can you see the little picture, big picture. When you're looking at a higher timeframe, you're zooming right out to sea as summary or an overall picture of what is going on in the market. And when you're looking deep into a lower timeframe, you're zooming in to see what exactly is happening almost instantly in the market. So let's just do one more example just to make sure that we're understanding this fully. So how many five-minute candle sticks are there in one daily candle? You may need a few minutes to think about this one. How many five-minute candle sticks are there in a daily candle? So if you answer was 288, then you are correct. That means that they are 288. Five-minute candle sticks on a five-minute chalk in one daily candlestick on a daily chart. The easiest method to understand on how to calculate this answer would have been to think how many five-minute candles are there in an hourly candle. And you'd be able to realize that they are 12, five-minute candles in each hourly candlestick. So if they're told five-minute candle sticks in each hourly candle, there are 24 hours in a day. All we would have to do is multiply 12 by 24 hours because they are 12 five-minute candle sticks every hour. Therefore, 24 hours times 12 five-minute candle sticks results in 288 five-minute candle sticks representing one daily candlestick on a daily chart. Make sure that you grasp this concept, guys, because it's very, very important and it's quite key in understanding timeframes and being able to use them effectively with your technical analysis. So now to give a practical example, right now we're on a daily timeframe. And if we look at this daily timeframe, we've got candle sticks that all represent the daily timeframe. So this one candlestick, this red one right here, it represents 288 five-minute candle sticks. And next to it we've got a green candlestick. This also represents 288 five-minute candle sticks, same as the next one, and same as the one from the day before. So let's actually dive deep into the char and have a look at the five-minute chart and see how these 288 candle sticks are represented. So looking at the last candlestick that has been fully formed, which is this candlestick Ri, this last candlestick right here. This is the last candlestick that has fully formed. This new one, that tiny one to the right where my mouse is. This is a new candlestick that is forming right now on today's day. So we are going to look at the previous candle that fully formed, which formed on the sixth of September 2020. So if you look at the bottom right-hand near the volume of a mouse's, you'd be able to see the actual date. This is on the sixth of September 2020. This candlestick would have 288 five-minute candles that would represent it in a five-minute chart. So we're going to have a look at this candle stick on a five-minute chart so that we can see the picture that was painted on a smaller timeframe. So if we move to the five-minute chart, or we're going to do is we're going to zoom out and go to the sixth of September where the daily chart opened, which would have been on the sixth of September at 12 AM in the morning. So if you look where my mouse is. This is on the sixth of September 2020 at 12 AM on the dot. And this is when the first five-minute candle opened. This green one, right? Yeah. This tall green on is a five-minute candle that opened. On the sixth of September 2020. So we're just going to highlight this section from when this five-minute candlestick opened. So this is the first five-minute candlestick that opened on the sixth of September. And we're going to highlight through to the loss five-minute candles, the closed, which should be on the seventh of September at 12 and the dot. So the section highlighted represents one daily candlestick, the Davey candlestick that we pointed that on the daily chart. This is all the activity that happened during that day. So the price went up, you end down. He went up and down, up and down, up and down, up and down. He went up, you endow, you end up going down, going up and down. All this activity happened in this one daily chart right here. So if I zoom in, you'll be able to see this is the highlighted section. The reason why this is only highlighted half and half is because of the way trading view set. You can see that my mouse Conn, specifically select the edge of the body. The mouse automatically jumps on its own. So this is as closest as you can get to selecting this candlestick gray hair. And you can do that, selecting it via the five-minute chart. So this one, candlestick, ie, a sixth of September 2020, is represented by all this activity that happened on the five-minute chart. Riaa. Amazing. And that is how you use the smaller picture and bigger picture. So when you're looking at it in the five-minute chart, you're looking at it at the smaller picture you're seeing what is happening during the actual day. This is all happening every five minutes during the day. And when you look at the 30-minute shot, you're now looking at what is happening during the day, every 30 minutes. And you look at it on a two hour chop, the same thing. Now looking at what happened every two hours during the day 12-hour chart, you now look at just these two candles takes. How many 12 hour candle sticks fit in a daily candlestick? That'll be two. So it'll be just these two Candace takes right here. And then if we move to the daily chart, you'd be able to see the actual canvas deck that we're looking at, which is the one that's pointed at right now. So to recap, this one, daily charts, candlestick is represented by 288 five-minute candles takes. These are 2885 minute candle sticks that represent that one daily chart. And if we were to look at it on a 15-minute chart, right? These will be 96 15-minute chart. Candles. That represents this one, daily chop candlestick, this green candlestick. This one green candlestick, RIAA, where my mouse is, as represented by 96 15-minute chart candles, which are these candles. And they paint the same picture but in a different timeframe. Hence, why visually, you're able to see the detail in terms of how the price was moving during the day, every 15 minutes. So as you can see. The closer that you get to a higher timeframe, the less candles that you have. So if you think back to the example that I gave of Google Maps, this is almost like zooming in on your route from point a to point B. And when you look at the daily chart, this is like zooming out and looking at your overall root on your Google Maps, on your map. And if you wanted to go into high detail, you'd zoom in to a five-minute chart and that will show you even more detail when you're using them for trading. And if you actually went onto a 30-minute char, you'd see 48 30-minute candle sticks. That would represent one daily candlestick. All these candles takes represent that one daily candlestick. And can you see that the picture painted here is that the price went up for two hours and then he went down for an hour and a half. It went up for 30 minutes, came back down for half an hour, came up again a bit for half an hour. Came down for an hour. Came up for an hour, came down for half an hour, came up for an hour and a half. The reason why this is an hour and a half is because these are three candlestick, These are 330 minute candle sticks. So I know it's been going up for an hour and a half. And if you were to zoom out and look at it from a bigger picture, let's say to our chart, you'd only see 12 candles on this chart. And we can even count them less continent together. So we've got 123456789101112 of candle sticks that represents one daily charts, candlestick. And depending on the type of trade or you are. So for example, a two hour candlestick chart would be perfect for a swing trader because they hold coins for a longer period of time in comparison to a day trader. So for example, can you see how this is going downwards from this point right here where my mouse is after this candle form, prices started falling on this chart. So a swing trader, if there were betting against the market, they will go into a short position right here as the price drops and drops, and drops and drops. And you can see from here, this is every two hours, this is 246812 going on and on and on, and it's dropping is only now that it's starting to look like it's going to go up. So this is around the area where they would most likely choose or decide to close their position. Whereas if you're a day trader, you'd be looking at a five-minute chart. And if you were to bet against the market, you'd have bet against the market right here where my mouse is, and you'd have got out of your trade right here at this bottom where my mouse is. And that would have only taken you a few minutes because these are five-minute candlestick, so it'll have taken you 510152025303540, 45-50 an hour. You'd have taken a quick our trade. It have taken you an hour to make some money. Whereas in, if someone is a swing trader and they're using the to our chart, it would have taken them more than an hour. They would have had to hold the position for longer periods of time, which in this case would have been a couple of days. This is from the first of September to the fifth of September. So they would have held the equation for roughly about five days and this is a swing position. So can you see how timeframes are very useful depending on the type of trade or that you are. And they can also be useful for information purposes. No matter what type of trade or you are, is good to have all this information at your hands as you will be better equipped to react to the market. And that's it for this lesson. Thanks for watching.
17. Analysing Candles on Multiple Time Frames: I hope you're well. Okay, so let's dive deeper into timeframes. Let's start with the five-minute chart. For example. If you guys look at this five-minute chart, you see that at the right-hand side, right here you've got a countdown clock. Countdown clock shows you the time left for this candlestick to be fully formed until the next candle sticks dots forming. So as you can see, there's 8765 seconds left counting down for this candlestick to be fully formed. And this is significant because a lot of Trajan's, we'll be using this count down time to make decisions on whether to take a position or not. Because with these candlestick, remember that they represent price action. And as traders, we use historical price action to try and determine what the price will do next. So as soon as a candle is closed, you can make a decision on whether to take a position or not depending on the momentum of the price action of the previous candle sticks. Hence why this count downtime and these candles takes are important because price action using candles takes paints a picture. If you remember, we went through how using candlestick is very good to determine the picture being painted using price action. So looking at coins on different timeframes is very useful because you can gauge which way the momentum is going. So if the particular price action on a particular coin showing an upward momentum moving from one timeframe to another. It can be a very good indicator in showing the direction of the momentum. So this is why it's important to look at multiple timeframes. So keep in mind that three, five-minute candles form 115 minute candlestick. So if were to look at the 15 minute candlestick right now, we can see that we've got 15 minutes and 41 seconds counting down left until the next 15 minute candlestick is fully formed. So we know that this candles take right here, this green on women mouses is represented by the last three candles takes on the five-minute chart. So we know that these three candles takes right here. I will just highlight these. So we know that these three candles takes right here represents that 115 minute candlestick on the next chart right now. So can you see that? You can see a line going straight through on this candlestick. That's because that is exactly the drawing that I've just created down this 15-minute candlestick and this one five-minute candlestick that is being represented by this countdown of three minutes, 38 seconds going down. Will be part of the next 15 minute candlestick. This one right here, that is the first candle stick on a five-minute chart that represents the 15 minute candles take on the 15-minute chart. So if we now look at the 30-minute chart, we can see that there are 27 minutes, 27 seconds counting down left for this 30-minute candlestick to form. Therefore, we know that the 15 minute candle that is currently counting downright now represents one of the candles takes for this one 30-minute candlestick. And the previous 250 minute candle sticks would represent this one green candlestick right here. So for example, if I had gone to the 15 minute candlestick, I know that these two candle sticks right here, these two green ones, the first one where my mouse is right now, and the second one we were masses right now, these two candle sticks represent the lost 30-minute candlestick that has already fully formed on the 30-minute chart. Okay, so I'm gonna give you guys an example by actually highlighting these examples. So if I point at these two candle sticks right here using this arrow. So this is the first candlestick. And this is the second candlestick. So these two candles takes that appointed at right now, represents one 30-minute candlestick that has already fully formed on the 30-minute chart. So while you notices, whilst I am on the 15-minute chart, you see two arrows that represents 30 minutes. So this is 50 minutes plus 15 minutes, which is 30 minutes. If I switch onto the 30-minute chart, you only see one arrow even though I drew two arrows. So if you see, if I click on yeah, and I move one arrow, you can see these are two arrows. I didn't actually create the arrow just now. I just moved one arrow on top of the other. Okay. And to show you, if I click back onto the 15-minute chart, you'll see that that arrow has now moved because I moved it on the 30-minute shock. So if I move that back, you'd be able to see that if I go back to the 15-minute chart, you'll have those two arrows that I drew in the first place. So these two candle sticks right here, they represent that one candlestick on the 30-minute chart. Okay, so now let's look at the hourly chart. We can see that there's 51 minutes and nine seconds counting down left for this hourly chart candlestick to be fully formed. So the previous candlestick, which is the fully formed candlestick, would be represented by the previous to t minute chart candle sticks. So this candle stick right here would be represented by these two candles takes right here. This red one where my mouse is, and this green or Numa mouse is this red one that is currently being formed and is at 20 minutes and 35 seconds. Counting down will be one out of two of the new candle sticks that still need to be formed. In order to be added to this one, our candlestick that is still being formed. So if we're to give an example of the previous candlestick as this one was already been fully formed, we would do the same thing. So if you go to this 30 minutes chart, and if we were to draw an arrow on these two candle sticks right here, one right-hand on this red candlestick, and another on this green candlestick. If we were to move on to the hourly chart, would notice that these two candles digs will be represented by 11 our candlestick that would have been fully formed on the hourly chart, like so. So this candlestick right here on this hourly chart is represented by these two 30-minute candle sticks right here. And this candlestick that is currently forming will be one of the two candles decks that will represent the next hourly candlestick, which would be this currently candlestick thus forming that now has 48 minutes and 57 seconds counting down to form. So let's look at the four hour chart right here. So when we're looking at the four our chart, we can see that there is one hour, 48 minutes and 18 seconds counting down left for this, for our candle to be formed. This for our candle would be represented by two to our candle sticks in a two hour chart. So if we went to this, to our candlestick chart right here, you'll notice that we've got one candlestick that has a countdown of an hour, 47 minutes and 13 seconds counting downwards. And this candlestick, who form part of that for our candlestick. This candlestick has fully formed already. And this candlestick who add onto the for our candlestick that is currently being formed. So if we were to put two arrows on this green candlestick where my mouse is, and the red candlestick where my mouse is at. Now, you notice that these two arrows would form the four hour candlestick that is currently being formed right now, right here. So on the far timeframe, we can see that there isn't much movement happening. It's almost like it's sideways movement. Looking at account down, we can see that we've got an hour, 35 minutes and 50 seconds counting down left for this candle to form. This is a four hour candle. So we know that they are already two hours on the hourly chart to our candle sticks on the hourly chart that have already been fully formed, that will add to this hourly chart right here. So if we're looking at the previous four hours charts, candlestick, this DOJ looking candlestick right here, that is already formed. We know that the previous four candles takes on the hourly chart, which are these four candle sticks right here. 1234. These four represents that for our candlestick. And these two candle sticks represent the new for our candlestick that is still currently being formed. And this candlestick who add onto that new candlestick. And there'll be one more candlestick that will add on to that new candlestick to make the full four, our candlestick formed ones that count down. Timer goes to 0 on the for our candlestick chart. So to just explain this clearly, I'm going to highlight these one hour candle sticks that are represented by the fully formed for our candlestick chart. So if I select that and draw some arrows pointing to the candle sticks that represents that handle. So we have 1234. So these four candles takes right here that I've drawn arrows underneath represent this one for our candlestick right here. So you can see these arrows have stacked up to point at this warn candlestick from the one hour to the four hour. So these four candle sticks represent this one for our candlestick. And these 21 hour candlestick that are not highlighted who add onto the newly formed for our candlestick right here, which is still counting down. And those warn our candlestick that is currently counting down right here. We also add to that for our candlestick and then the last one hour candlestick Dao add-on to the four hour candlestick on the four-wheel chart will start forming once this a two minutes and six seconds counting down has gone down to 0. So as you can see, if we're looking at this one, our chart, when we look at these candles takes, we don't get too many clues. This is why it is important to use multiple charts. However, once we move on to the for our chart, we get quite a nice good clue, right? Had this candle is a significant candle, you guys should know by now that this is a dodgy candlestick. Let me just move this blue highlighting to the side as it's making the chart difficult to see. Right? So this candlestick right here is a very powerful candlestick. This is a very, very important sign. This shows that there is indecision in the market and most likely there will be a reversal. So it's important for us to be very aware and look out for a change coming up very soon once we see this candlestick right here. So this is one sign. However, if you just look at the hourly chart, you won't be able to see this as you can see the prices just moving sideways. So we can't really tell much. But when we switch timeframes to the four hour timeframe, we can see that this is a significant sign right here because this is a DOJ candlestick that is showing a lot of indecision. And this implies that there will be movement soon, or there may be movement soon to the downside or the upside. And if you look at the one-hour chart, you'll see that that Candlestick is represented by these for our candles takes, if you were to look at these candle sticks individually, they don't look like a dodgy. So this is why it is important to be able to look at multiple time frames because you'd be able to see signs like this. You can see that, okay. We've got this dodgy candlestick, so I need to be aware as they can be a very powerful move coming by soon. Because if we were to now analyze this char, we would see that, okay, we have been on an upward trend for 4812162024 hours now. So we've been an honor slight Up trend for a day. And then we now see this dodgy candle forming and a DOJ candle signals indecision. And when there's indecision, it also signals that they may be a reversal to the opposite direction of the previous trend. So when you see this though, G candlestick, it's a sign that there may be a reversal to the downside because we've been on an upward trend and now we see the sign I am expecting, or I'm thinking right now in my head that the probability of this price action going upwards is very low. The probability of this price action coming back downwards is very high because of this clue RIAA, this Candlestick is a very big clue and we wouldn't have been able to notice this just by looking at the worn out. Because the one hour hasn't really given us a very big signal in the past 24 hours. For example, if we count the last 24 hour candles right where they would roughly be from this candlestick right here, where my mouse's to the end right here, that should be about 24 hour candles. And this price action doesn't really give us many clues. However, when we change that price action into a for our chart, we can see that we have an up trend in the past 24 hours. And then we see this DOJ candlestick. And that is a massive Cl2. And we can see that the new candlestick that is forming is also bearish, is showing that it is a change in momentum currently. However, it's always important to confirm the change in momentum. And confirming the change in momentum is by waiting for this candlestick to fully form. Because as you can see right now, the prices moving up and down, up and down. So it could possibly move all the way back up. So I would just watch this very closely and make sure that I either bet against the market or if I'm already in a long position from the bottom right here going upwards, I'll be looking to start taking my profits sometime very, very sincerely, keep a very close eye on this price action right here. So this is why it is very important to look at multiple time frames, as you can see, a lot of different clues. So let's look at the 12 hour chart right now and let's see what it looks like. So looking at on the 12-hour chart, we can see that that same candlestick that we pointed out in the for our chart looks very bearish on a twelv hour chart to, but on an hourly chart, we wouldn't have been able to see that. We can't really see the Irishness in 12 hours because we looked at the last 24 hours, which is roughly this section right here, these should be the last 24 hours. And if we look at the 12-hour chart, we can see that that is just this one candlestick really. You know, well, these two candlestick, because this one is still forming and a bit of this candlestick. But that doesn't show us any bearish movement when we look at it on a one-hour chart. This is the importance of looking at multiple timeframes, and that's it for this lesson. Thanks for watching.
18. Part 2: Analysing Candles on Multiple Time Frames: I hope you're well. Okay. So you can see that roughly about nine hours have gone past since I drew these highlighters on these four candles takes that represented the for our candlestick that we were looking at, which is this one right here, which I had mentioned that was very bearish because it's a dodgy and a dodgy shows in decision in the market. And when there's indecision in the market on an up trend, the probability of the price going down higher, it increases the probability of a change in momentum because of this candlestick right hat, this signals that is most likely going to be a change in momentum. Remember, it's not guaranteed, but it's a signal. And I mentioned earlier that I would watch this very closely. So if I was in a long position, I'll take my profits up. Yeah, as soon as I get confirmation once this candle closes or when it's about to close, or if I'm betting against the market, I'll go into a position right now. So as you can see, this planned out exactly as I said, this is the power of using multiple time frames. As you can see, as soon as this candle finished, the price just dropped, went further down because this was our signal, this is our conformation and the price went down. So if you are in a long position, you would have actually cashed out and made your profits right here. And if you are betting against the market, you'd have gone into a position as soon as this candle closed and waited to see a reversal changing pattern, which would signal that the market is ready to move back to the upside. So you'd been a positioning and you'd be holding right now because this looks very bearish. You don't see any positive momentum at the moment on the four hour. However, let's have a look at the 12-hour chart that looks even more bearish. Remember we went through this 12-hour candlestick as well, and we said this looked very bearish. And this is being proven by this very bearish candlestick, right? Had the price has dropped massively. And this is being proven by this drop in price right now and this bearish candlestick that has formed afterwards, and this candle state has about 50 minutes and 24 seconds counting down left before it closes. I hope that you guys are able to actually see how it is important to know how to use different timeframes as this will benefit you and your performing technical analysis. So just as much as timeframes help with the charts. The same concept on timeframes in regards to a candle sticks also applies for different indicators. For example, when you're looking at a different indicator such as the RSI, the timeframe concept applies as well. So if we're now looking at this chart and we're looking at the RSI. This RSI right half will change according to which time frame you're looking at. So right now we're looking at the 12 hour chart. So this RSI will move faster than it does on a daily chart for example. So can you see that on the daily chart almost like shrinks because if you remember. The larger the timeframe or the higher the timeframe, the more summarized the information is. So the more compact the information is put together because you're looking at the bigger picture. So this RSI is a more summarized RSI on The Daily in comparison to the RSI on the 12-hour chart. Because these two sections right here represents one section on the daily chart, which is just this, this RSI line just on this 1. So the same applies with all other timeframes. So the for our chart for example, okay, let us highlight this so that it can be a bit more clear. So I'm going to highlight exactly the same box that we've got on this RSI as we have on the candle sticks. So I've highlighted these. And this is a period of 4812162024. This is a period of a day. So we have highlighted a day of candle sticks and the day of the RSI, right? And this is on the for our chart. So if we look at the 12-hour chart, you're going to realize that this box will become smaller to just highlight the summarized data on the 12-hour chart. So let's move on to the 12-hour chart for example. So before we move on to the 12 hour talk, how many four hours fit into 12 hours? That is three. So once we move to the 12 hour chock, this box will shrink three times because right now we're looking at it in more detail. And when we look at it on the 12-hour chart, we're going to be looking at it in summary. So for example, if I select the 12-hour chart now, can you see that this box is shrunk? This section selected is exactly the same section that I selected on the for our chart. This data right, has selected right here is exactly the same data that I selected on the for our chart. The only difference is that it's just summarized. And then if we were to summarize this even further and look at the daily chart, this box whose shrink even more as you can see. So let's look at the 30-minute chart. So on the 30-minute chalk, you can see that we have highlighted a day's worth of candles and a day's worth of RSI. And you can see there is more data, there's more movement. And you can see this movement. Okay, let me even try and make this more visual. So let's say I am to draw this chart right here. Alright, let's do this. And let me change this to white so that they are a bit more visible. And let me zoom in. This will be able to help visualize exactly what is going on. Right? So, so can you see that this is exactly how the price has been moving. I've literally just outlined how the price has been moving. So if I was to hide these candles right here. So you can see these lines represent all the candles that were already on the chop. And what you notice is, anytime I moved to a different timeframe, this highlighted section right ham, it represents those exact same candles or these exact same lines. And these lines will shrink or though becomes summarized. So for example, if we look at it on a to our chart, these lines have become summarized in the box, becomes smaller. If we look at it on a four hour chart, these lines even become more summarized. And if I was to include this candle sticks again, you see there'll be exactly there. Thus the updates, the downness that up, down, thus that up does that darkness, that up plus down. Can you see how this works? And if you look at it on a twelv hour chop, it gets summarized even further. If you look to look at it on a daily chart, it gets even summarized further. So this is how timeframes work and I hope that you guys are able to fully grasp this because it is very important. It's very key that you grasp this because it will help you and make your analysis very reliable. So it is very important that when you're doing your technical analysis, you're jumping in-between timeframes to see all the signals that may be visible on multiple time frames as I've just previously showed you guys, this will help you paints a better picture and you'd be able to make better decisions in your trading. And don't also forget that higher timeframes way more than shorter timeframe. So for example, if you recall, I kept saying that this is a very bearish candlestick. This candlestick right here. And now is because it's on a twelv hour chart. And a twelv hour chop will weigh more than a four hour chart because it's 12 hours is giving me a better summary summarizing everything that's been happening in the for our candles and given me a bigger picture, which notifies me that this is looking very bearish. And as you can see, the formation of this candle resulted in a massive drop in price. And price is still dropping as we speak. So for now, all we can do is just watch and wait for a signal that shows some type of support or the booze trying to jump in to save the day. Because right now the beers are definitely in control of this market. Therefore, it would be best to just watch and see if we can find any signals that can be spotted on multiple timeframes as finding candle sticks, for example, such as the dodgy on multiple time for him simultaneously improves the probability of the momentum moving the way that you think it will. So in the example that we gave on the, for our chart, we saw that this candlestick right here was a indecision candle. So this candle steak would have informed us to watch the market and pay attention because there is a high probability of a reversal and momentum. And then when we switched to a higher timeframe, we saw the exact same candle. And this showed us that this is a much, much more bearish signal. Because as you can see on my chart, I'm just going to delete these lines so that you're able to see clearly, more clearly. As you can see on this chart. This candlestick definitely gave us a very, very strong bearish signal because it's on a higher timeframe, which made the change in momentum even more probable. Remember, in the previous lesson, I did mention that a general rule is that the longer the time frame, the more reliable the signal being given is. So as you drill down in timeframes, that charts become more polluted with false moves or just noise. Ideally trade is user longer timeframe to define primary trend of whatever the trading. Hence why this signal candles take right here. This though G candle was a very, very strong signal for me to know that the market was going to change in momentum and come to the downside. So I definitely recommend that you guys go over this lesson a couple of times if you have to, and make sure that you understand how timeframes work, because these will be part of your bread and butter in making good and profitable trades. And that's it for this lesson. Thanks for watching.
19. What is Support & Resistance? : Hi, I hope you're well. So what is support and resistance? Well, these two factors can also be called action and reaction, as they are the actual outcome or the result of the interaction between fear and greed and supply and demand. So understanding how they all work together is key as it gives you a massive edge in trading any assets which will increase your profits. Keep in mind that for every action there is a reaction. So support and resistance. Trading will form the foundation for every trading decision that you make. You can trade without indicators such as moving averages and the Mac D. Although I wouldn't recommend it. As these tools add to the edge that you have in the market if you know how to use them. The point I am trying to make here is that support and resistance are very important for concept behind support and resistance is a simple one. And once you understand it, you will have equipped yourself with the basic foundation, underlying market moves. So here's an analogy that will help you understand what support and resistance is. So picture yourself in a living room of a house in your hands, you are holding a bouncing ball. This ball equals the price of an asset in the market. So this asset can be any type of asset, whether it is a cryptocurrency or stock. So you toss the ball over your head, it's saws upwards and hits the ceiling. The white line that I've just drawn represents the ceiling. The ceiling keeps the ball from rising higher. So the ceiling equals resistance. Now the ball falls back down and bounces on the floor. The floor stops the ball from falling further. So the floor becomes 4x equals support. Next, you spot holes in the ceiling, but these holes are covered by what seems to be cupboard. You throw the ball as hard as you can and it breaks through the first hole in the ceiling. The ball rises to the second story ceiling and bounces off it. That ceiling now becomes resistance or equals resistance. And it is represented by the second white line that I have just drawn. The ball then falls to bounce on to the second story floor. Understand that the first story ceiling supports the second story flow in a house. What does this mean? It means that once resistance is broken, it becomes support. So you continue by running upstairs and grabbing the ball and throwing it up to the ceiling as odd as you can again, the ball bounces off the ceiling and breaks right through the second hole down into the first story living room. When it drops through the hole in the floor, it breaks through support. It falls to bounce on the living room floor or what is now called previous support. You run back downstairs, take the ball and throw it up to the ceiling as hard as you can again, AND heads downwards towards the floor and breaks through a hole in the floor that you had not seen for board descends to the basement floor, which is represented by the third white line I have just drawn. And this now forms support. The ball then bounces off the floor and rises to bounce off the basement ceiling. This ceiling is now called resistance because one support is broken, it becomes resistance. And just above the basement is the living room floor, which was the support that was broken. So now previous support has become resistance when the ball, which equals an asset price, bounces off support or resistance, we refer to it as a pivot point. Remember that in trading and analysis, support and resistance are price areas. You will have to find a specific price to refer to, for example, a $100, but give it a little leeway. So picture yourself jumping on a trampoline, for example. The trampoline supports you when you land on it, but the depth of the bounce varies a little each time. And also just as heavier people will stretch the trampoline base a bit lower when they land. More volatile assets within any market will need a little extra latitude in the air resistance and support areas. I will reference back to this when I'm showing examples, the charts. So now that you know what resistance and support our, let's get into some examples on the charts. So looking at the charts, you can see that we are on a one day chart. So if I just get rid of these drawings, you can see that we're on a one-day chart and this chart is giving us all the price action for the day. So each candlestick represents a day. And if you recall, when I was telling you guys about timeframes in the previous lesson, I mentioned that the higher the timeframe, the more weight that the data carries. So if I switch to the monthly chart on a Bitcoin shot, the reason why I've switched to a non-free charter and a Bitcoin char is because bitcoin has been around for quite a long time. And if we want to see a full picture of Bitcoin weights currently standing, it's best to look at it on a monthly chart. So as you can see, we've got a monthly chart of Bitcoin where I am. And if I was to ask you guys, where is the ceiling for Bitcoin at the moment? So this is the monthly chart on Bitcoin. And I'm asking where is the ceiling for Bitcoin at the moment. So when I say the ceiling, I'm referring to the highest point that Bitcoin could not break through, that would be the ceiling. Where is that point on this chart right now? So if you guys said that that point is right here, then you're correct. So Bitcoin at the moment has a ceiling, right? How we have just drawn this line. And this is a ceiling at $19,666. And this is based on the BitStamp exchange. So if you look to the left, right, yeah, you can see the pay is Bitcoin year's dollar on the BitStamp exchange. So depending on what exchange you have on your trading view platform or any chart that you're looking at, that number can change. So at the moment that's with ceiling is. The absolute ceiling for Bitcoin, that's where it is. And this is also called the all-time high. So if you guys ever see, anyway, weights is a th, a th stands for all-time high. And this must make sense because that is the absolute ceiling and that is the all-time high for bitcoin. Ever since Bitcoin has been existing, the highest price that Bitcoin has ever been Was this price right here where there's wireline is, and that is the ceiling. That is where there is the most or the major resistance on Bitcoin at the moment because Bitcoin could not break past that price, that all-time high price. So when you're looking at this chart, you can see that this all-time high price was made in December 2017. Bear in mind that we are currently on a monthly chart. So this is a very, very summarized big picture of the market. And the reason why I chose to look at the monthly charges so that we can actually look at the old time high and at the same time we can actually look at the old time low. So we're on this chart, would you say the all-time low is? So if you guys said around this area right, at $5.14 out, say that's roughly around the all-time low bitcoin. And in most cases, the all-time low not be relevant once an asset has been around for a good period of time, because the price tends to move in a staircase upward direction over time, it's rare that the price does come down to the old time low and then surpasses it, and then he continues going down that way. It does happen, which is why it's good to mock that all-time low flow line because the all-time low is the absolute flow. That is the flow on this chart right now. So if I just label this as all-time low really quickly. If we now actually look at this chart, we know that the all-time high or this ceiling right here that we've drawn, is it really relevant at the moment because this was back in 2017, we're now in 2020. So is this really relevant? Yes, no. And maybe in the future. Hence why we've labeled it. So it's good to look at things from the big picture first, and then you stop drilling into the current picture that you have at the moment. So if I was to ask you guys, where would you say is the current resistance on this chart at the moment? Whereas the current resistance that you see on this chart at the moment. So if you guys said that this was the current resistance Ri, where there's this green candle that looks like a dough g. We can say that, yeah, that is a resistance. If you guys also said that this top right here is also a resistance, then yes, you'd be correct. That is also a resistance because this has happened in June 2019, which is not too far from September 2020. It is just over a year, but it is quite relevant in comparison to 20172019 is just the year 2017 is a few years ago. However, if you look in at it in terms of the most relevant point, the most relevant point would be this. Candles take write this high right out of $12,473 is the current resistance that is relevant to this chart right now. So you'd be more focused on this resistance right here. So now if I zoom in a little bit and change this chart to a weekly chart, you'll be able to see that we still have these exact same points. And you can see that the price has been moving. And every time it touches this point, there's been resistance. The price comes down. It's gone up again, and it touched this resistance point and it's heading down. It looks like it's going to go up again to try and retest that resistance point. So currently, where would you guys say that is the most current support on this chart? The most current support at the moment on this weekly chart. So if you guys said that it's right here, that is correct. This is where we seem to have found support. So we hit resistance right here and the price came down and it seems to have a flaw support right here and is now bouncing up. So the next resistance would be right here again, we'll see if we can break through this resistance. And if it breaks through this resistance will go up to reach another resistance up. Yeah. So can you see how it's important to be able to determine where resistance and support is. Actually just for clarity, let me change the color of the support to yellow just so that it's easier on the eye when you're viewing this chart. So on this chart, we are looking at the weekly chart. And a lot of the time you won't be trading on a weekly chart unless you're an investor or your position trader. If you hold positions for long periods of time, that's when you'll be using these sorts of timelines. So for now, go down to the daily chart. We will see a better picture that will be very useful for us if we're assuming traders. So looking at this chart, you can see that these support points and these resistant points that we've outlined, they all draw down. So the bigger picture it forms is good to start with the bigger picture and then drill down into the more detail and then analyze your chart going that way. I find that to be more useful is not the only way that you can do it. You can actually do it in a way whereby you don't actually go into the weekly chart. I wouldn't recommend it, but you could do it that way because you don't necessarily have to go to the weekly chart first, but I would advise you to do that because at least you will have a bigger picture and know the full picture. Before you've even drill down into the detail out of that kind of makes sense. So now looking on the daily chart, if we zoom in, if your swing trader, you will be mostly focused on data that is relevant. So this section right now would be more relevant to you. So we know we've got this resistance right here, and we know we've got this support. At the moment. It looks like we've also got resistance right here. Because the price has gone up, but it's hit there. And then it's now starting to of me sideways, like it's been moving sideways for three days now. Today's the third day and we're not really getting much price movements. So this is definitely resistance. Are we going to break resistance? We'll find out in the next couple of days. But at the moment, we know, we definitely know that we've hit resistance Yan, let me change this to white. So you're allowed to carry on and remember to change these everytime I outline them so that it's easy on the eye. So the white lines are all resistance and the yellow are all support or the floor. And then the white lines are all the ceiling. And then remember, once resistance is broken, it turns into support and want support is broken, it turns into resistance. So right now we've hit resistance and we're going to see whether that will break or not. But if we wanted to look for another key support area, where would you guys think that the next support area is? Because we've got one support area right here. But where is another key support area that you can see on this chart? If you guys said that there's another key support area right here, then you are correct. This is another key support area right here. So if the prices to come down and break this support, we would know that this price would most likely here, another support right here, and maybe bounce and go back up. Or it could break it down and go down further. But we definitely know that it would definitely get some type of support or action around this area. So as a swing trader, these support and resistance areas would be really good for me to see the overall good, nice picture because you'd be holding trades for either a few days or a few hours. And when you're looking at it on a smaller timeframe, you'll be using something like a four hour for example. And you can see that these supports are very good for you to see a range whereby the support B. So once you drill down to the for our chart, we can actually select a range. As a swing trader, there is a price range that you know, Okay, it looks like we have resistance right here. So in this example, we've got resistance around this price range versus where it seems like every time the price hits this price range, we keep getting rejected. The price keeps getting rejected. You can see that because of these works, you get an rejection, rejection, rejection, it comes down. We've had a bit of support right now, as you can see, because we've got some weak supporting, supporting. So we've got some support right here on a lower timeframe and One thing to note is that you wouldn't have been able to see this support right here on a four hour on a daily chart. Because on the daily chart, it looks like it's just going up. But because we're drilling down into more detail, we're now seeing what exactly is happening every four hours. So we can see that on the for our chart we actually have a support right here. And it looks like this support is standing quite strong because the price hit this price range that we're seeing that has some resistance. It came down a hit some type of support right here, and then it's bouncing it up, went up to him. That resistance is calm down and is now hitting that support again in is now going up to hit that price range again. So can you see how useful supports and resistances are? And can you see how supports and resistances, they have a price range. And to be honest, we can actually select this from here because this is a nice price range where we seem to get some type of support. And this price range was once a resistance. And I can say that because of this right here, the price, right, how, when he was coming up, it came down from this bottom right here. It came up and it hits resistance, right? How came down? Went up, you hit resistance and then he just started going sideways. So this is resistance area. And this support was this resistance area became support once it broke through because it came down and became support. Can you see what I was trying to explain earlier? When are saying that once a resistance is broken, it turns into support. And once support is broken, it turns into resistance. So in this case, the price went up. Let me actually just draw some lines on here so that you're able to see. So this white line that I'm drawing right now, right here, this is the resistance that we had previously. And this white line that I'm drawing right now, right here, this is the support that we had previously. Need to turn it into yellow actually, because yellow we're using yellow is all support. So this was support. So the price came up, it came down, hit support. And then he went up. He hit resistance. Right here. It came down, it went up to hit resistance again. He came down and went up to hit resistance again. And then he came down in a study going sideways until it broke this resistance right here. And once this resistance is broken, it becomes support. So we can actually turn this white line that was resistance into a yellow line so that it becomes support. So once this white line turns yellow is now support. It's being represented a support. It breaks that resistance, that resistance turns into support. Hence why we change the color of the line to yellow. And then the price continues going up. It hits a new resistance, comes down to that previous resistance which is now support, and it gets supported that the price has actually supported. Can you see that? Bounces the first time on this candle, and then it bounces again second time in this candle. And any bounces again the third time in this canyon. And it actually goes up to go into that territory of resistance that was created previously right-hand. And then it literally just gets rejected and it comes back down, hit support or get any bounces up. And then right now we're seeing a bit of a sideways movement in between this support, right? Yeah, and this resistance. So this is how you can outline some support and resistance ranges on your charts. And these are the most relevant supports and resistances. This is also support and resistance that you should keep an ion. But the most relevant at the moment if you choosing whether to get in and out of a trade are the ones that we've highlighted right here. And the further in detail that you drill down on your timelines, the more that you'll see that you've got different supports and different resistances on each timeline depending on what type of trade or you are. So that makes supports and resistance is quite subjective. So the better you become at spotting these supports and resistances. And depending on what type of strategy that you use, the better trader you become. So if we drill into the 30 minute chart, for example, you can see that we have a lot more different supports and resistances just by looking at this chart. So let me just enlarge this so that you are able to see. So these are the supports and resistances that we had outlined previously on the 30 minute chart, you can see that we actually got these quiet spot on because we've got a lot of action here. The price is not going anywhere, it's just going up and down, up and down, up and down. And over here you can see that the price is clearly going down until it hits support, which is the blue area at the bottom. And then it clearly goes up again to hit resistance, which is right here, the top where the blue area is. So as a day trader, you could actually be making profits in between the spaces between the support and the resistance. Ok, so let's drill down into some day trading territory timeframes. So the five-minute chart, for example, you can see that when we look at the five-minute shot, we have more support and resistance areas. And this is solely because of the data that we have. We've got more data that we're looking at. So this chart is now represented by five-minute candles. This is now showing us the price change or price movement in every five minutes. So now you can see that those points that we highlighted are still relevant in the grand scheme of things. So for example, right now you can see this blue area highlighted right here is the resistance that we drew on the for our timeline. And you can see that it's still standing strong as when the price hits this blue area, it seems to be coming down. And we'll see whether this price will be able to break through that resistance or not. And at the bottom, we still have our support area that is highlighted in blue. However, now we've got more data. Where would you say that we can see some type of support on this five-minute chart that a day trader would be able to use. So if you guys said right here, then you'd be right. This is the most relevant support area that we can see. And another support area that we can see that is quite relevant is right here. And this is on the five minute chart. And if we're now to look at the resistance, where would you say that the most relevant resistance area is on this five-minute chart? If you guys said the most relevant one is right here, this top right here, then your ride. And then another one that we can see is right here. At the top of this canto. These areas seem to be resistance. So as you can see right here, the price went up and they hit. This resistance came down and it made a support. It went up. It didn't even reach the resistance is just started coming down and then it seems to have support right here. And then it went up and it broke through that resistance to form a new resistance or a new high right here. And then it's calm down. And then we're just going to watch which way the price moves. So these support and resistance areas, I here to guide you on your trading journey. They are tools that you equip yourself with so that you're able to judge a situation or the environment that you are trading in in order to make better trading decisions. These supports and resistance I here to guide you and are skill sets that you can use to make good and profitable trades. They don't guarantee you any trades, but they give you a plan, they give you direction. And you're able to actually analyze the price movement and make some decisions that can help you make good and profitable trades. And that's it for this lesson. Thanks for watching.
20. What are Bull & Bear Traps? | Support & Resistance: I hope you're well. So the next thing I want to go through with you guys is what exactly are bold traps or the concept behind bull traps and bear traps. So I'm just going to delete all these drawings that I've just created. And let's move to a four hour chart. So with bootstraps and bear traps, what happens is there's always a battle between the Bulls and the beers. So pi is, which are the bows and the bears, which are sellers, are always fighting against one another to either push the price up. The bulls are trying to push the price up because the Bowser, the buyers, they want the price to go up. And the base of the cell is they want the price to go down. And because they both have different objectives, they are always in a tug of war whereby they always try and play tricks on one another or one team as to have a better strategy in order to push the price up or down. And one of those strategies is a bear trap and the bull trap. So we're going to go through the bull trap first. So Bootstrap happens at resistance. So if we mark a top right here as the resistance, this white line I've just drawn. This is the resistance on this for our chart. So when we're referring to a bull trap, Limoges zoom in so that you guys are able to see a bit better. When we're referring to a bull trap. We're referring to this section right here. So this section that I'm highlighting is what I referred to as a bull trap. So what would have happened is, as you can see, the price was going up and up and up. So there will be balls or buyers that would actually think that the price is continue is going to continue going up. And they would purchase this asset and get trapped essentially, because as you can see, the price goes up and then it comes back down and then it goes up again into this bull trap zone. And these guys who bought in this bootstrap zone would be trapped in their position that they would have bought this asset. As you can see, that the price plummets straight after. So the Bears would have trapped the ball's in thinking that the price is gonna go further up. But then the base would sell on the balls, which would drive the price downwards. And as you can see, the price plummets very quickly. And it keeps going down until it gets a bit of support right here. And then it goes up again and then it goes down once again. So this region right here is what I would call a bull trap. And just to show you guys a bear trap, if we zoom out, if we go to this bottom right here, where we see a lot of weeks, This is where I would say that is a bull trap region. R could even highlighted from right now. Because we can see that after this drop. This downtrend, we've got some support right here. This is the strongest support that we got because we hit support, the price went up, we support again and then the prices started to go up. So this is the region where we had a good support. And the bear trap region will be this right here. So a lot of the beers would have thought that the price is going to continue going down as you can see this week, right? Yeah, this will be people that would have been shorting the market. So shortest, shortest or bays. So they want the price to go down because that's how they make their profits by shorting the market, by pushing the market down, because that way they can buy back the current it at a cheaper price. So the Bulls would have trapped the BUS ride on these weeks and these beers or sellers would be trapped within the positions and the price starts going up. So that is the concept behind bear traps and bold traps. And just to show you quickly how you can avoid this. So if you use your timeline, this is why it's important to have various different methods or skill sets acquired that you may use depending on what scenario or situation you are facing in your trading. So if you go down to the one, our timeline and you go exactly to where this pole trapped region is. You will notice that if I can zoom in properly, this zone right here that I highlighted as the bull trap. I also call this the no trade zone. So I won't trade in this zone right here until I see some confirmation of an upturned, because right now I can see that we hit resistance and I don't see any confirmation showing me that the price is going to carry on going up. What I'm seeing is resistance at the moment. So anytime I see resistance and very, very cautious. So if I was already in a long position from, let's say down here, I'll be looking to cash out. Up here. I'd be looking to sell. And if I was looking to get into a position, I wouldn't be looking to get into a position in this area right here because I'd be thinking we have hit resistance right now. And there is no clear clarification or confirmation that this momentum is going to continue on an upward trend. So I wouldn't trade in this ONE right here. So as you can see on the, our timeline, you can see that we're getting rejected, the prices getting rejected from going upwards. It gets rejected from going upwards again. And then once it comes here, it just about touches that no trade zone and then comes downwards. This would be a confirmation for me that the price is most likely going to continue going on a downward trend, but it's not guaranteed. So you would have to make a decision based on your analysis. And another way that you could confirm this is by diving deeper into more detail by looking at a 30 minute chart. So if we look at the 30-minute chart and look at the exact same position right here. We can see that the price went up, got rejected, you were not got rejected again. And we're seeing the exact same thing. This candle right here, it goes up, hits that. Just maybe doesn't even hit it. Yeah. Just about touches that no trade zone area and then it's coming down and this candlestick, right? If you guys remember from the previous lesson, cold reading candle sticks, you will notice that this is an indecision candlestick and this candle stake, right? It tells you that you need to be very wary of the market because this is an up trend. This tells you that there's a high probability that the price is going to change direction and momentum and stop moving in the opposite momentum. So in this case, as we were going in an up trend, this candlestick would indicate that there may be o, there is a high probability of a change in momentum to the downside. So this would have been my sign, right? Had to either get out of a long position if I was in one or a sign for me not to enter a trade in this area right here because there's so much resistance and a lot of people would have entered trades. Yeah. And there have been trapped there have been trapped in the positions, and then the price would have gone down on them and they would have lost some profits. So for example, this is almost, nearly 5% or imagine, yeah, for 4%, roughly 4%, that they would have lost. Because the thing is, you never know what the price is going to do. So you could say that in hindsight, you could hold and then the price goes back up. But you don't know, you know, because before this happened, this is all you would be able to see. You'd be able to just see these two candles right here. And this to me, this is a sign for me to get out of my trade. This right-hand before any other candles form that will be assigned for me. And then, as we can see, the candles, This is also a bearish candle as formed just there. And then we continue to see a bit of a sideways movement. And the price seems to have just plummeted and started going down and down and down and down. So the same concept applies for the bear traps. So we've bear traps is the same thing but just the opposite. So right now where we can see some weeks the bulls are trapping the beers because the best thing that the prices couldn't continue going down and the bowls stop buying up and pushing the price up. The base still take now the price is gonna go down and they get trapped in their position. And a way that you can avoid this is by diving deep into a lower timeframe, just so that you get more detail. And having a look at the candle sticks, as well as where the support is and price movement. And this will help you to actually make a good decision. The trade that you're going to be making, whether you are bored. So this analysis is very key and important to grasp. Because right here you can see the prices coming down and it looks like you're continuing down. But the boost step-in and they push the price up, the base doping and the price is going to continue going down. And then the price actually goes up a little bit and then it comes back down. A lot of people would have been co-op in this bear trap zone again. And then the price just continues going up now. And that's it for this lesson. Thanks for watching.
21. Vertical Support & Resistance + Channels: I hope you're well, we have gone through support and resistances as horizontal lines. These can also be viewed as parallel lines. So for example, if you move to the daily chart and have a look at the current price action right here, we can draw a vertical trend line just like so. And this will act as resistance because we can clearly see that the price is not going above this vertical line right here. So this can be considered as resistance right here. I'm just going to remove these drawings just so that it's a bit more clear and easy to the eye. So this line right here, this yellow line, this yellow vertical line that I've just drawn, would be resistance. This would act as your resistance because we can see that the price goes up and hits that line. It comes back down, it goes up again, hits that line and comes back down. So this is now acting as resistance as a vertical line. And if we were to look at the most relevant point in terms of support, you would agree that this is the most relevant point in terms of support at the moment. And if we were to draw a line on this support, you can see that we have almost drawn something that looks like a rectangle. So we would say that this is our resistance and support area. And we would expect the price to be bouncing in between these areas until resistance is broken or until support is broken. We wouldn't enter a trade or anytime that the price comes down to this support area right here, you would look to get into a trade if you see rejection to the downside. So when I say rejection to the downside, I'm referring to this section right here. You can see that previously, when the price hit this support level, it got rejected. It kept getting rejected and rejected. So this is a strong sign that the price is most likely going to reverse to the upward side. And if this price comes down to this support level, again, if we see some sort of support like this, I would be interested to enter a trade and set a stop-loss just underneath the wicks The previous weeks right here. So for example, if the prices to continue and calm down right here. And then I see some type of WIX poking down like this, similar to the Wix highlighted in blue to the left, but the body of the candles PR, above the resistance line. So something similar to this. Apologies, my free hand drawing is very terrible. But these lines, these lines where I had, they represent the awakes and these circles would represent these body candles that are closing or opening above this support line right here. If I see something similar to this, I would enter into a position, a long position right here, and sets a stop loss just underneath this last week right here. So this week here are Sita stop-loss right there. And then our aim to cash-out either wants the price reaches this 55 year May. So I'm assuming this 55-year May would come down to somewhere. This will be roughly my first target. And as you can see, the risk to reward ratio is 3.7, which is good. So I'll be willing to risk 1.29% with the chance of gaining 4.79%. And if you'd asked me, that's a very good risk to reward ratio. And my second target would be at the top of this trend line right here. So if he came down and then the price continues to bounce up and hit the resistance. Like so this would be my second target right around this area. And just by looking at it, that looks like about a 7.89% target in terms of what our gain and the risk is still the same. So this would be a pretty good trade. And just to outline what I mean when I say that if it hits the 55 EMA, this is basically this line, right? I am assuming that this 55-year May would just move something along these lines like that. And then continue up. Thus, if the price moves this way, exactly as I'm predicting it too. So this is the kind of trade that I would take, but this is just a quick example. Just to give you guys an insight of how I would take a position or how I can use these vertical and horizontal resistance and support lines. So I hope that this makes sense and we will be diving deep into the 55-year may strategy later on in the course. And we'll be also doing some breakout strategies that I'm gonna go through View guys. So this is just a quick insight on how we can use the support and resistances. So the next thing that I want to go through is channels and how these represents support and resistance as well. So looking at channels, if I just move down to the for our chart, and if I just clear all these drawings and select the channel icon and my favorite 2's. So in case you don't know where is. If you've already got the channel icon on your favorite tools, then that's fine. But if you don't, if you just come right here to the two panel on the left hand side, if you select this arrow, you be able to see the parallel channel. So this is basically the channel icon that I've got selected right now, if I select these points right here, we can see that we've got a channel right here. So let me try and get this spot on. So I'll say that at the moment. This is roughly the channel that we have. So you can see that every time that the price hits the bottom of this channel right here, we're getting some type of support. So you can say that this is the bottom of this channel. And when drawing channels and all these resistant lines, to be honest with you, it's, the more you do it, the more you get better at it, the more you develop an eye on just being able to see where channel is and trial and error also helps. So when I started, it was a bit difficult for me to just quickly spot each handlebar. The more you do it, the easier it becomes you be just seeing everything without even thinking about it. So this bottom section of the channel, it would form like a support. And as you can see, every time the price hit this bottom section, it's being supported. It goes up, it came back down. It supported, it goes up. Every time he hits this top view of the channel, the prices being rejected. So there's resistance right here. So we can see that the first time we got into this channel, price went up, got rejected, came down, went up, it got rejected again at the top of this channel, which we are referring to as resistance. It goes back down to the bottom of the channel, gets supported and the price goes sideways or upwards, slightly. And then it comes back down again, hits this support, and then it goes up, hits this resistance, and then his calm down right now and it's hitting this support. And right now, we can assume that this price will go up to, most likely hit the top of the channel very soon. And the reason I say that is because again, this 55-year May is a strong sign that this price is being rejected because it hit this 55-year may once, and then this time it's hit the 55-year May and the bottom of the channel where we're finding support. So if I was interested in trading right now, I would take a position right here. As soon as this candle closes. I'll take a position and put my stop-loss just underneath this week of this candle. And aim for the price to hit the top of the channel, which should give me a risk to reward ratio of 3.28. And my stop loss would be risky me just 1.26% of my position. So this 1.206% is the most that I'm willing to risk and is the most that I can lose in this trade. And my gain side is 4.12%. This is what I'm looking forward to gaining. But if I wanted to be very preserved and I could actually just move this down to this resistance area right here, because we can see that the price, when the price went up, this is the most relevant recent resistance that we have right here. So if I just mark just so that it's easier to see on the eye, we can see that this area right here, we've got some sorts of resistance. So I could mark this as target one. And this will be a 2.41% target one. And then target to would be at the top of the channel, which would be roughly around 4.306% gain. So this is how we can use the support and resistance areas to make profitable trades. And guys, a con, emphasized how important it is to have a stop-loss. Because remember, at the end of the day, this is a game of probability when you're trading. Trading based on probability when you have a higher probability of the prize going a certain way, you enter a trade. However, the trade is never guaranteed because for some reason this price could turn around and come downwards. Hence why we have this stop-loss and a con, emphasize how important it is to have a stop-loss. Because a stop-loss is very important because it will definitely save you a lot of money. Because if you risk it and it goes against you, you can lose a lot of money. And nasa, a lot of people get wiped out whilst trading. And then they don't think that trading actually works, but they are not sticking to their strategy. And they're letting emotions run their decisions instead of them making their decisions. And Avenir Strom myset and controlling their emotions. It's very, very important because at the end of the day, bulls are playing against the bears, and the bears are playing against the Bulls and both teams want to win, but there will only be one winner. So you have to make sure that you have an edge in the market so that you can be on the winning side. And thus it for this lesson. Thanks for watching.
22. Part 2: Analysing Channels | Support & Resistance: I hope you're well. So channels can be on an upward trend like this one, or they can also be on a downward trend. So if we just go through this chart, I'm just going to look for another channel and I can see, so this one right here, here's another channel. So this was a channel right here where the price came down. If I just make it a bit more. Yeah. So like this. So this was a channel whereby the price came down. I'm even seeing a novel one. Okay, let me draw these two channels right here. Let's do this. So this is a channel right here. Once you practice how to draw these channels, you, you, you literally be seeing these and spotting these very, very often. Okay? So we can say that this is a channel right here. We can say that these are two channels right here. And this section right here is more of a bull trap or throw over, because what you can see is the channel was broken and then the price plummets in one can-do stake to go back right into the channel. So a lot of people have bought in right here. And that would have been trapped or the price would have done a fall over where it just goes over and then it just loses all its gains in one candle. This is another reason why you need a stop loss, because at least if you're taking a trade, you have some type of stop-loss to just, you know, protect yourself because remember, stop losses are there to protect you. Because if you can protect your money and you can preserve your money, you wouldn't be able to grow your money. So make sure that you're always protecting, preserving, and then you'd be able to grow your money. So dyes are con, emphasize how important it is to have a stop-loss and stick to your stop-loss is difficult. It's very, very difficult even I take losses, everyone takes losses. There's no trader that trades without taking losses, but you have to use these losses to learn and improve your trading skills. And remember, trading is a probability game. And at the end of the day, we are in it to make profits over time. So as much as you may get losses here and there, your profits will always be higher than your losses. And your losses are always there to gain you more wisdom within this trading market. Therefore, make sure that you stick to your stop losses back to this channel. We can see that the price shot up, hit the top of the channel, is shot back down, hit the bottom. And then it went up, hit the top, and then it did this fall over and it came straight down to hit the bottom of the channel to find support. And from support you're went up halfway. It came down to find support. It went up to the top of the channel. It came down, got supported by the 55-year me. And then he went up to the top of the channel, came down to find supported the bottom of the channel right here. And what I tend to do is anytime that I see Support twice, I wait for two points to be touched on this support line right here before I considered taken a trade. So for example, we can see that it touches ones right here. After a broke through into this channel, it touches one and then it touches again right here. So after these two, this is, will not be able to actually draw this channel right now. Because remember, when you're actually trading, this is all that you can see when it happens. This is all that you can see. And then so as soon as this second touch happens, so you wouldn't even have this channel, the price would go up, it would hit here. This would have been the most relevant resistance and the prices have gone down, and this will be now the most relevant support. And the price goes up, sideways and down, and then he goes up right here. And this will be the most relevant resistance, and then this would be the most relevant support. So once this second relevant support comes, I would draw a vertical line, just like so. And once this vertical line is drawn, I would wait for another top to touch because this was a throw over. I wouldn't have known that this is a throw. You only know that because when you reflect and look backwards, you know, that is a throw over. So what I would wait for is a third touch at the top, a proper touch at the top. So once I get this touch right here, and then I see the price going down, I can see that this is a top and this is a new top because the price that had going down. So I would mark this point and then draw this channel of mine. And then I'll have a channel and I'll be expecting the price to hit this bottom of the channel. And that's when I'll be looking to take a trade EVOC and see that there is support sufficient enough to move the direction of the price back on an upward momentum. So if you continue, you see that the price kind of gets down near this bot. I would've probably missed this and I would have probably not taken this straight because I don't really see much conformation. This would have been a lucky, a lucky trade if I'm to be honest, because the price, it literally just touches in and then goes back up. So this would have definitely missed this one. But those that are more risky than I am would have most likely taken this trade because they see that it's getting supported by the 55-year may or DOTA votes automatically just assumed support at the 55-year MA level. But in this occasion, I wouldn't have done that. So now that I can see that there's another top here that has been here and another one that has been hit. I am definitely Egan waiting for it to come down to this support level right here at the bottom of this channel. So if we continue, we'll see that a comes in, it hits the channel right here. And we can see these long week. So here's the channel, it goes up, here's the channel goes up. And then on this last candle right now, okay. Let's backtrack a little bit. So if you remember in our previous lessons, this candlestick right here is more like a dodgy. This is like a dodgy. And as you can see, the open and the close of this candlestick right here are very close to each other. It opened at $11,386.50 and it closed at $11,380.70. And this is on a four hour chop. This isn't for hours. This price action opened and closed roughly around the same area in four hours. But candle after that, a nice looking hammer and this hammock handle right hand. Let me just mark it for you guys just so that you will crystal clear on what I'm trying to explain. This candlestick right now is a nice and clear how Macondo, and you can see we've got a nice long week. So this means that the price opened right here where my mouse is, and it went up and then it went down or went down and anyone up. But however, what we do know is a closed right half opened here and closed up. Yeah. And what we do know is we've got a rejection. Roughly about 2, 2% percent was rejected this week is a t percent wick. So the Bulls rejected the beers by 2%. This means that the beers tried to push the price down and the booze defended by pushing the price back up 2%. And they even pushed it up further from where it opened to close right here. This candle right here would be my conformation to enter the trade. And you can see that this candle has also closed on top of this support line right here, this support channel line that we have. So out of Enter the trade right after this candle close, out of entity trade right here. And out of aimed for the top of this trend line right here, this will be my target and have my stop-loss just underneath this week right here. Or if I wanted to be a bit more preserving, our Could have it underneath, just underneath the wick of the DOJ candle. Depending on how much risk you'd like to take, you'd make that choice. So if we were to look at the risk to reward ratio, I'm just gonna move this to the left, just so that we can actually see the risk reward ratio, or this is massive and need to shorter than this and then put it back. So as we can see right now, I would be willing to take a risk reward ratio of 2.31 because of where I'm willing to set my stop-loss. And a 2.31 risk reward ratio is quite good. I mean, it's not the best, but is still good risk to reward ratio, especially when it's highly probable, in my opinion. So if we continue looking at this, we can see that the price actually continues sideways for a bit. And then it goes sideways, sideways, sideways, and then he goes up and it hits this resistance right here. This would have been my cash-out, out of cashed out right here. So if we were to Move this right here. You can see that my risk reward ratio is 2.31. And I was going to be gaining 6.5%. However, because as time went on, I would have cashed out around, yeah, so out of actually made 8.45% because right here the price is going sideways and my stop loss, the prices fall from my stop loss. So I'm not going to be cashing out. I'm just going to be holding my position right now. I'm waiting for it to hit that resistance. And thus, when cashing out this candlestick, after this candlestick out, either cash out 50% as soon as this candle closes, and then wait to see what the price does and decide whether to cash out foodie or not, sought cash-out 50% at the end of this candle, close and weight. And as soon as I see this Canto, This is bearish out, cash out. The rest of the 50% said I would have made roughly around 8%. Because if you remember, 50% out of cache dot at the top of this candlestick, this 3D really bullish Candace, stay right here and then cashed out once I see this quite bearish candlestick and out of finishing my trade. And this would have been a trade that would have gone on for roughly six days out, have been holding this position for roughly six days, as you can see right now, because this is on a four hour chart. And personally, I am more of a swing trader. I do day trade, but I do swing trade more often than I day trade because I have other things that I'll be doing during the days, et cetera. So can you guys see how important these channels and trend lines are? And as we can see right here, what happens after is, after this candle, the price plummets, plummets. And what happens here is the price actually breaks this trend line. It actually breaks it. And as soon as it breaks it, OK, let me just hide this. I'm right. A breaks this trend line, as you can see right now. And then the price goes back up to try and enter this channel. So if you're a bear, if you're a beard, you like shorting the market. This would have been your opportunity to short the market because the price has come out of this channel, right? Yeah. And from what you guys have just learned, I told you earlier in the lesson to remember that every time support is broken, it becomes resistance. And every time that resistance is broken, it becomes support. So in this case, support has been broken and the price tried to go back up. And you can see that is resisting the price from growing up. So I would have been paying a lot of attention to these three candle sticks right here as a beer trader. So as you can see, we've got this dodgy candle right here. And this would have been quite a significant sign for me to expect the market to start going in the opposite direction of this trend because right now is on a little op, trend, we get this very bearish candlestick. 12, we are also hitting this resistance. That was one support, but now is resistance and we've hit it before in the previous candle, we visited again in this candle, and then the third candle, we hit it and then we're seeing it being hit again right here. And personally, because like I said, I prefer to have confirmation. I would wait until I find a really bearish candle that also breaks this 55 year May. So if we carry on, this would've been the giveaway right here. This is where now would have entered my trade out of Enter the short position right here. So if asked to enter a short position, I'll be entering at the close of this candlestick right here. And I would most likely aim for this previous resistance right here. So this area right here where I had set my previous stop-loss when I was in Long position and I would set my stop-loss just above the wick of this DO G candlestick right here. So like this, and let's see what happens. And sure enough, the price primates a hits that it hits this it hits this area right here that I was referring to you as where there was resistance from previous resistance. We can see that it hits this area. This is the area where the previous resistance was. It hits the area. This would have been my first target. This area right here. This, it'll be my first target. And my second target would have been at the bottom of this one right-hand this week right here, or even this week right here. So this would have been a second target, and this will be my third target. So outsell 50% as soon as we hit this area right here, and then our cell, the rest of it, either twenty-five percent on my second target, and then the rest of the remaining 25% of my third target. Or I could even just sell the whole law around this area as I would have hit my first target right here. And then I see this candle opening and the price going up. I cashed out my remaining position on this candle. Because remember, once you hit support is most likely going to change the momentum of the price. So if we carry on, we see that the price changes direction. And it looks like a hits a top right half. So if we're now to view that indicates a that we had just hidden. So this channel, we can see that that is now the top of the channel that we've just hit. So if we zoom out a little bit so that we can see, apologize you guys. It may look a bit messy right now. So let me get rid of these channels that we've already dealt with. So if I delete this, this, and this, and zoom out so that you're able to see. So then if I go back and look at the risk reward ratio of that trait that I took earlier, the risk reward was 1.73, which is not the best trade. However, it wasn't as risky because I knew that there was a high probability of the price going down further because I had confirmation. So it is important to stick to your strategies because other than that the day everyone views these charts differently and everyone has different levels of risk that they're willing to take. So it is best to always make sure that you're equipped with so many tools and skills that will help you or give you an edge in the market. Hence, why you're going through this course right now, and hence why I'm showing you guys how to use these tools that are available on trading view and charting platforms so that you can use it to your advantage when you're trading or playing this game called trading, right? You can see that we've got our downward channel right-hand. So looking back, let me just go back a little bit just so that I can review this and just clarify this for you guys. So as a short seller, a good strategy to confirm that the price is coming down is you just have to wait for a breakout onto the downside of this upturned channel. And once this breakup happens, wait for confirmation. Some people like taking risks, so as soon as it breaks out, they would go into a short position. You can do that, but luck, I said personally, I like confirmation and confirmation. So personally, as a beginner out suggests that you don't short the market as soon as you see the breakout. Only do that once you've become an experienced trader and once you've got a bit of experience on your belt in the beginning, I would suggest that you wait for the breakout to come and then you just mark out where the breakout is. So in this instance, we can see that the breakout is right how you mark it right here, just like so. And just wait for the bounce to the upside down will retest or trying to get into the channel and wait for the rejection from support that has now turned into resistance. And that is when you would enter your trade. Once you see that this resistance is holding strong and you see a bearish candle thus went out into a short trade and aim for the previous resistance or support that you can see on this chart, which would be this section right here. I'm just going to highlight a section that represents the resistance or support area that we previously saw, which would be this area right here. This is the perfect position right here. You'll be aiming to get out of your position right here. And you can see that the price went up and they hit a lower high right here, and then it started coming down. And as soon as you saw this law or high or these two points right here, as soon as you see these two points that are in a vertical line, all you do is you would assume parallel ET and draw your channel like so. And as you can rightly see, the price came down, hit the bottom of this channel and then went up for, and then he came down again to hit the bottom of this channel the second time, and then it went up. So this is how you guys can use some of these tools that are available to you on charting platforms that we'll show you support and resistance areas. So just to recap, support is the bottom or the floor of any price action whereby the price is failing to go down further and resistance the top or the ceiling of any price action whereby the price action is struggling to go further to the upside. And as you guys can see in this lesson, support and resistances are very important and key to trade him because they give you a nice edge in the market. They give you a good map that you can use. And like I said earlier, please guys always remember to set a stop loss because trading is risky. This is a game of probability, is not a game of certainty. Nothing is certain in trading. It's all basically professional gambling. However, if you have an edge in the market, you can make a lot of profits and you can actually make consistent profits using your prevent strategies and some initiative on your side. So as long as you guys study this lesson and work hard and keep practicing and gaining experience under your belt. Don't let these losses put you off because it's difficult to lose. But then if you're losing and you're not learning, then you will continue losing. However, if we lose and you're learning from your mistakes, you become a better trader and you improve a new, improved until you get to a point whereby you're actually profiting more than you actually lose. And if you're managing a risk, he should be losing roughly one to 2% portrayed. So that's why it's important to manage your risk. Risk management is important because you have to protect and preserve your capital in order for you to be able to grow your capital. You won't be able to grow your capital if you don't protect it, you won't be able to grow your capital if we don't preserve it and you won't be able to grow your capital. You've got nothing to grow. So you have to protect, preserve, and grow your capital. And that's it for this lesson. Thanks for watching.
23. Three Common Trading Patterns & Breakout Strategy | Symmetrical Triangle: I hope you're well, right? So now we're going to talk about some of the most common patterns and breakout strategies that you will come across was trading. So if I can just make some space here, and I'm going to draw three common patterns that you will come across whilst trading. So I want you guys to try and name these patterns. So if you guys could try and name this pattern to begin with right here. So this is patentable one. And this right here is pattern number two. And this right here is pattern number three. So I want you guys to try name these three patterns. I want to see if you guys are able to name these three patterns. You may have come across them and you may have not come across them. Or D think B's patents or cold, what do you think are the names of these three patents right here, but you can see on the screen. So the first thing that you notice is that they all triangles. So the first one is a symmetrical triangle, and the second one is an ascending triangle. And the third one is a descending triangle. So these are the three most common patterns that you guys are most likely going to see whilst trading. So just to explain these, you can see that these triangles, they mainly have two converging lines. So when I say converging lines, I'm referring to support and resistance. And that would be basically these converging lines right here. So when you look at all these three patterns, they all have these converging lines right here. And where these converging lines meet at the end is called an APICS. So an APICS is where two converging lines meet. And I've just highlighted the APICS for these three patterns. So that is called the epics. And just to explain these patterns, remember we're looking at resistance and support here. So this top line right here, this is resistance, and this bottom line right here is the support. And same as this ascending triangle. The top line is the resistance and the bottom line is the support. And the same applies with this descending triangle. The top line is resistance and the bottom line is support for the lines at the top would be rejecting price from going higher. So this line here would always be rejecting prize from moving higher. Same as this line right here for this ascending triangle, and same as this line right here for this descending triangle. And the bottom line for this descending triangle be supporting the price. It will be stopping the price from going any lower. And same for this bottom ascending triangle right here. This line right here represents support and will be. Supporting the price and preventing it from going down lower. And same applies for this symmetrical triangle right here. This line represents supports and will be preventing price from moving down any lower. So if I am to draw some price representation showing the price break in into this symmetrical triangle. We can see that the price would go to the top. Hit resistance, come down, hit support, go up, hit resistance, come down, hit support, go up resistance and come down and hit support. And then once it gets into the APICS section right here, price would either break outs to the downside or break outs to the upside. And this is where we will be playing our trade. So I'm just going to show some more price representation in this ascending triangle right here. And I will do the same thing for this descending triangle, RIAA. Right? So one thing to note is that price action doesn't always get to the APICS, but there's a strong chance that it will. So price could potentially break out and break through this resistance line at the top right here and go upwards before it even gets to the APICS area. And same as below, price could actually break downwards right here at this support line and break down in price carries on moving downwards before it reaches the APICS area. However, usually, especially with symmetrical triangles, price usually gets to the symmetrical area and then either breaks out upwards or downwards, and then you play that breakout. And when looking at these patterns, we think about these patterns in the perspective of demand and supply. So this means that when these two lines meet here, these converging lines, when they meet right here, this is exactly where supply meets demand. So when supply meets demand, one has to give up. So this is basically the bulls having a fight with the base. So remember that the beers wanted to push the price down and the Bulls want to push the price up because the Bulls want the price to go up. But the beers want the price to go down because the base profit when the price goes down and the boost profit when the price goes up. So this is always a constant battle. Hence why prices pitting resistance and then the bears jumping, they push the price down and then price it support, boost jumpin. They push the price up and it carries on going that way until you get to the APICS where demand meets supply or supply meets demand. And then it will go one way or another because one has to lose out in the end. So one team will end up giving up and say that this is too much pressure and then they lose the game or they lose the battle. So let's go through this symmetrical triangle first and actually see how it would play a breakout and how we can actually use this pattern to make a good unprofitable trade. So what I'm gonna do is I'm just going to get rid of the ascending triangle in the descending triangle so that we can go through the symmetrical triangle first and then we'll go through the ascending triangle second. And then lastly, we'll go through the descending triangle. Right? So when we're playing a symmetrical triangle, I'm going to show you guys how you can determine a target. So first let's go through what a breakout is. So a breakout is when the price breaks through resistance and goes towards either the upside or the downside. So as a trader, you would want to play the breakout, which will be when the price breaks, either resistance or support. When it breaks resistance, it will be going to the upside. And if it breaks support, you'll be going to the downside. So a breakout strategy can be used by either a bull or bear trader. So when it's a bool trader using this strategy, it will be when the price breaks through resistance and when it is a beer trader using this strategy, it'll be when the price break support. So let's look at it from the perspective of a boo trade off first. So a good way to set a target when you're playing a breakout strategy on a symmetrical triangle is by getting the height of this triangle. So for example, this height right hand. So you'd get the height of this symmetrical triangle and use it to set a target. So all you do is you move this height right here, and then wherever you see the breakouts. So let's assume that the price has come and hit the APICS, and then it breaks to the upside in this case. So, OK, Remember, this is a battle between the base and the Bulls. The bows are there to support the price. So every time the price IT support the bulls are there to push the price upwards like so. And the bears are there to reject the price from going any higher. So the beers want the price to go down. And every time the price hits resistance, the bears will be pushing the price downwards like saw. So every time the price it's resistance, the bears will be there to push the price downwards until demand meets supply, or supply meets demand, and then the price either goes upwards or downwards. So in this example, like we said, we are going to say that the price breaks to the upside. So the price goes like so. So we're saying that the price breaks to the upside and then it goes up, and then it continues going up. So in this case, you'd sit your target by taking the height of this symmetrical triangle, setting this height wherever the breakout happened. In this instance, we are saying that the breakout happened just after the price got into this APICS area. So once the breakout happens, this will be your targets to cash out. So what you do is you'd take a trait as soon as the breakup happens and you've got a candle that closes above resistance with the lot of volume and a good candle close and you get into a long position, like so, and set your target like this and then say stop-loss just underneath the resistance like this. So right now you'd be looking at a risk to reward ratio about 5.21 if this is exactly how the pattern looks like and you'll be gaining 7.51% and risking 1.44%. So this is how you would play out this pattern right here. And if the price was to breakout to the downside, all you do is you just set your targets to the downside. So let us say same scenario, but the price breaks to the downside. Once it hits this APICS area, will you do is you say your target from weather breakout came out from to the downside. So just for visual representation, we're saying that the price breaks down to the downside, like so. So this means that the price actually broke down and carried on coming down like so. So we would set our target as shown below. We just move this height of this symmetrical triangle, put it wherever the breakout to the downside happened, and then we would take our short position if you're a beer, do you take a short position like so? Sit your stop-loss just above the resistance and set your target just where your target is. So you'd be getting a risk to reward ratio of 6.37 or roughly 6.37. And you'll be still aiming to get around 7.97% in profit and risking 1.25%. So this would be how you trade if you're a short seller. However, as a beginner, I wouldn't really recommend you guys to be shorting the market as yet. I would recommend that you learn how to trade using long positions. And then once you understand how margin trading works, then you can be shorting the market. The reason why I say this is because margin trading, which is what allows you to short the market, is very risky in the sense that you can easily get liquidated and lose all your money. You can lose all your capital very quickly because we essentially do when you're shorting the market is you borrow some money from the exchange that you'll be using, then you use that money to leverage your trade. And when you leverage your trade is very risky because they exchange can wipe you out depending on what amount of capital that you have on your account and depending on whether the market moves your way or not. And another thing is if you don't set a stop-loss or if he forgets to set a stop loss, you can easily wiped out. I would always just recommend that you learn how to trade using long positions, which is the traditional trading first before you even give margin trading or shorting the market ago. And that's it for this lesson. Thanks for watching.
24. Ascending Triangle | Common Trading Patterns & Breakout Strategy: I hope you're well. So looking at the ascending triangle, you will notice that the main difference with the other patterns is that this pattern has a series of higher lows. So what I mean is, as you can see at the bottom of this pattern right here, where my mouse is and where the support is. You can see that we have a series of higher lows. So we've got a low right here, and then we've got a high or low Ry and another high or low, right? So as you can see, the balls are defending the price by pushing the price upwards, achieving higher lows. So because of these higher lows, the psychology behind this pattern is that this is a bullish Patton. So I'll explain exactly why that is. So on the upside, or wear resistance is, you can see that the Bears have rejected price right here and here and here. So the bears are rejecting price. But you can notice that the price is being rejected at 1 or the ceiling is at the same or similar price range, like this. Seeding is an exactly the same price range. This ceiling is at exactly the same high. So the Bose keep pushing the price and the bears are defending in one line. So this is why the psychology behind this pattern is bullish and this pattern will most likely break to the upside because of the series of higher lows as shown below. Raja, however, is very key to understand that this is not guaranteed. Patton just means that the probability is higher that the price will break out to the upside because the Bose keep beating at that resistance line. They keep beating it at this exact same resistance. The resistance line is just one line and they keep beating at that same resistant line. And that resistant line is at the same price point. So the booze keep hitting at that same price point. And eventually the price point is most likely to break out because we are getting a series of ILOs. That is the psychology behind this. And like I said, it is not guaranteed because we cannot underestimate the defense that is being shown by the base. I mean, the bears are defending in one line on the same exact same price point and they're preventing the price from reaching a higher high at this resistance line. That is also quite impressive. However, the booze kind of have an advantage here, but it doesn't guarantee that the bulls will win this battle. But in most cases, it is highly probable that the bows are linked to win this battle and the price will break out to the upside. So in this instance, when you're taking a trade, you take the high of the ascending triangle, like so. And you use this to set a target. And you would just take your long position tool, set air right here. Once it breaks out where the break cow is, set your targets, and then just sit your stop-loss just underneath the resistance line. So in this trade, for example, we would be aiming for a 6.82% gain and a 1.1. 8% loss. So that's how much you're willing to risk and your risk to reward ratio will be 5.79. And that would be a pretty good trade. So this is how you'd actually play this pattern. And that's it for this lesson. Thanks for watching.
25. Descending Triangle | Common Trading Patterns & Breakout Strategy: I hope you're well. So looking at the descending triangle, we can see that it's exactly the opposite of the ascending triangle. And this is a more bearish pattern. So as you can see, this pattern, right? Yeah, has lower highs. So if I'm to just mark this, you can see that the beers are producing lower highs. That defending very well to the extent that they are producing lower highs. And the bulls are supporting the price range at the same or similar price. So you can see that the balls, the price range, the law that the Bulls are supporting the price range at, is either the same or similar, like so. Hence why this, or the psychology behind this pattern is bearish. So this pattern is most likely to break out to the downside and the balls are most likely to lose this battle. However, this is not guaranteed. This just means that there's a high probability that there will be a breakout to the downside because of these lower highs, this show strength in momentum on the business side and the beause, you can't also underestimate their defense that they're showing right here because they're supporting the price are one level in a single line or at a similar price point. However, the probabilities that the Bulls would lose this battle. So how would you take this trade very similar to the previous one. You set your target and your target would be the height of this descending triangle. So if we take this height right here, and then wherever the breakup happens, thus where you sit this I add, and then you, your target, if you get your short position to input it wherever the breakout happens. And then you put your stop-loss just above the resistance line. And you set your target exactly where your targets i is from the triangle. And you can see right here that we've got a risk to reward ratio of 6.26. And this trade would most likely give your short position something around 8%. So 8.7%, and you'd be willing to risk roughly around 1.3%. So this would be a really nice short position for you. So just to round up these different patterns, I'm just going to unhighlight these so that we can actually see them. So these are the three patterns that we've gone through. And I would definitely recommend that you guys study these patterns because they're very common when you're on your charts, you'll see these patterns are locked on your charts. So the first one is a symmetrical triangle, and the second one is an ascending triangle. And the last one, or the third one is a descending triangle. And that's it for this lesson. Thanks for watching.
26. Pattern Breakout Strategy - Charting Example: I hope you're well, right? So we're going to look at the symmetrical triangle pattern on the chart and actually give an example of how you can execute this triangle pattern on an actual chart. So if we look at the chart, we can see that we've got some price action right here. And it looks like there's actually a symmetrical triangle forming as we speak, or that has already formed as we speak. So right now we've got support at the bottom like so. And resistance at the top like so. So you may have questions in regards to you drawing the support and resistance lines. And more you may be asking is okay, for example, in this one, I've left out this top right here. And the reason for that is because I look at this as an anomaly. So when I sat normally I'm looking at it as a throw over. So we went through, throw was previously whereby the price breaks through support energies literally fall straight after. So it's almost like a bay trap. However, in regards to drawing these lines, it doesn't make too much of a difference how you draw them. So you could actually draw this resistance line like this. And it would still do the same job in regards to the symmetrical triangle pattern. However, Personally, I always try and make sure that I use the top. So the most relevant top of this price action, which should be right here, because you can see that the price has gone up its hit at top right here or high, that a calm break above. This is the highest point now we can see on the chart right now. So this is the most relevant high point that the price cannot break right now on our chart. Because if we zoom out, we may see a different tops of example, we've got another top, we add other top. Yeah. But these are not relevant. But if we zoom in, you can see that currently this is the most relevant talk that we have right now on this chart. So that's why I would most likely draw it the way I drew it the first time. That's my preference. I'll definitely use this top right here and just use it as the resistance line, like so. So it's up to you guys how you'd like to draw these. You can draw them however we like. So now looking at this pattern and we can see that on the support side, the base of when defending these ranges, right? At this point, this point, this point. And it looks like there'll be defending this point right now as well as we speak. So these are the points that we can see that the biz have stopped the price from going further higher right here. And the bulls have been supporting the price on these points where I have first right, second row, and the third one, right? Yeah. So these are the points that the bowls. Had been supporting the price and let me just change the color to green just to show that the Bowser pushing the price up and read, just to show that the beers are pushing the price down. So if you just bear with me a minute and these would just turn these into the red, right? So just like in our tutorials that we went through at the bottom here, apologies for not getting rid of these. It makes the chart look a bit messy. But because they are just at the bottom, yeah, they're not really in the way. I've just decided to leave them there. And just as in the tutorials, you can use the height of this symmetrical triangle as a good range for a target. So I will take the height of this triangle like so. Put it wherever the breakup happens and that'll be my target. And since the breakup hasn't happened as yet, what I would do is I would put the triangle at the top and at the bottom so that I've got at least a plan or a really good idea of what I'm looking to do once the break ha has happened because I'm expecting the breakouts happened around this apex Area. And remember guys easily just good target ranges because once the breakout happens, it doesn't mean that the price is definitely going to go this high. It may fall short, may fall even shorter. You never know, but this is a good way to, I'll get a range way by you can actually target a price point that you can cash out. The best way to find a target is by using various different methods of seeing where support and resistance is. So for example, once the breakout happens, if you see some sort of support by either a new high being reached, so high that is higher than this higher air, for example. So for example, this can be support right at the top of this candle right here. This is support. So if it doesn't break that and it's already broken through this vertical support in our symmetrical triangle. It can't break this support right here. That means that you'll be looking to maybe cash-out unless you now start seeing some type of candle formation that we'll be looking bullish. So for example, if you start seeing some Hama candles with a lot of volume, you may choose not to cash out instantly, but you would make sure that you are now watching this very closely. And another thing that you could do is you can now start flipping in-between timeframe so that you can have a more precise exit point. It's a matter of using all the tools that you're learning in this course in order to make a perfect trade for yourself. Because if it was as easy as you just looking at the chart and you know, the price definitely going there, or the price definitely hitting this certain target, then everyone will be doing it. It takes a bit more work and a bit of more intuition. So you have to use all these tools that I'm teaching you in order to make good, profitable trades. These tools do not guarantee the price going up or the price going down there solely to guide you. And if you use them properly, you will make very, very good and profitable trades. So the next thing that you would do. You'd get your long position tool and you just set it up once you've got the breakout. And all you do is you'd have your stop loss just underneath the resistance. And then you would targets either the top right here of this target range of ours, which would yield you are 22.24%. Or you could actually even just target the top, which is the highest price point that the price could not break. This will probably be the very best way to do this in this occasion because the price hasn't been able to break past this high in a long time. So I would definitely aim to set this as my first target point or my second target point and have this as my first target point, right? So depending on what happens once the breakout has actually occurred, you will make decisions according to the price movement and the candlestick patterns that you'll be seeing. But this will be a good time to enter once it breaks up this resistance right now to be a good time to enter, the next stage would be planning on a good time to exit your trade. So if it went to the downside, it'll be the exact same thing but the opposite, you just get a short position tool and set it up right here. And if the price broke to the downside, it'll be the exact opposite. But we've got this 200 EMA line right here. And this 200 DMA line can be as strong support. So when it breaks down to the downside, you'd have to make sure that a breaks through this 200 EMA as well. So this may be your first target, and then you'll have your second target as rights at the bottom of our target area right here. So let's look at another one that may have formed already that we can kind of do a bit of analysis on and see how it would've played out in the past. So just by looking at this chart, I can already see another one right here. So this is a symmetric code triangle pattern as well that I can see right now. So from, yeah. And this bottom right-hand, This is another symmetrical triangle that I'm seeing. So as you can see this, this, this support has actually been going on since May. This straight line right here. This is a strong support. This is quite a strong civil war going on since May as you can, 0, yeah, and it was formed as soon as this price range broke through this 200 EMA, that's when this support was formed. You could actually say that the support was formed the very first time, once the price dropped and then it went back up, which is around the 200 AMA. So looking at this second symmetrical triangle, we can see that the price broke up to the upside. And what we'll do is we'll take our height for this symmetrical triangle and use it as a target point. And as you can see, if we put this target point right after the breakout, You can see that it was a good gauge to target because you would have targeted to cash out right now. And the price did go up and they hit that bit and it even went up a bit further. However, you can see that when it started going up a bit further, you wouldn't have known that is going to go up this high. So it's good to have a target and this would have been a really, really good trade. So you would have made roughly, let's see. So if we put our long two right-hand, you'd have entered your trade right hand and put your stop-loss just underneath the support and targets, this target range that we've set right here. So this would have been a really good trade. You'd have bad risk to reward ratio of 6.45. And you would have been risking to 0.95% of your capital and you'd have a Nas gain of 19.06%. So this would have been a nice breakout strategy that you'd have played out, right? Yeah. I apologize because this may have been a bit messy in terms of seeing exactly what I'm doing, but I'm just enlarge data bit so that you're able to see. So as you can see, what we did is we took this height right here, or price range target from our triangle right here. So like so. And we literally just put it here so that we can target it. And the reason why we put it has because it broke up to the upside. So this resistance was broken in the apex area right here. And the price went up and this would have been our target. And as you can see, our target or to be 19.06% gain. And our stop loss would have been a t 0.95% in case the price went against this. So this would have been a really, really good trade, as you can see right now. And this is also proved that these strategies actually do work. You just need to execute them correctly and know what you're doing when you're trading. They don't always work out, but they do work. And that's it for this lesson. Thanks for watching.
27. What are Moving Averages?: I hope you're well, right? So now we're going to learn about a key topic called moving averages. This is definitely one of my favorite topics, and this tool is definitely one of my favorite tools. This is another important tool that you will want to have at the top of your trade is Toolbox. So what our moving averages? Well, these come in three flavors. So you have simple moving averages, weighted moving averages, and exponential moving averages. Personally, I use exponential moving averages as IR found these to be very beautiful in trading multiple markets throughout my trading journey so far. Therefore, in all my lessons, when I refer to moving averages, I will be referring to exponential moving averages unless I state otherwise. So what do we use these moving averages for? Well, we use these to determine trend change, resistance, support by signals and cell signals and an exponential moving average. Basically a line chart constructed from the closing prices of a stock or crypto assets over a specified time period. So for example, the green line that you can see on the screen right now, and then I have just extended, as I'm speaking, is the 55 EMA on my chart, EMA standing for exponential moving average. And this equals the lost 55 days of an asset's closing price added together then divided by 55. This procedure is repeated each day and finalizes a line chart shown on my charts and will represent the exponential moving average. And the white line that I have just extended as shown on my chart, represents the 200 day exponential moving average. So this one would equal the last 200 days of this specific assets. And as you guys can see, we are on a big coin US dollar chart. Therefore, this is a big coin US dollar charts to a 100 exponential moving average that equals the lost 55 days of Bitcoins closing price added together, then divide it by 200. So this procedure is repeated each day and finalizes in a line chart that is represented as shown on my chart right now. So moving averages are what we call lagging indicators. This is because these indicators use information that has already taken place. So because of that, they are also called trend-following indicators. They work best in trending price patterns where an up trend or a downtrend is firmly in place. Heavy ever heard trade is talking about major moving averages. Well, if you have major moving averages, act as a fantastic support area. So think of them as magnets for price patterns over and over, you'll see an assets in an up trend rise high above it's 55 or 200 day moving average only to turn and dip down to it to use it for support, then bounce and rise again. Moving averages also act as resistance and support. So once the price of an asset trades under a major moving average, that moving average will serve as a ceiling or resistance to hinder the price from rising above it. This is especially true when a stock or crypto asset falls below the 200-day exponential moving average. And asset that tank's under this powerful Moving Average usually puts up a struggle before closing its way back through to rise above it. Conversely, an asset that dips to its 200-day exponential moving average within an up trend will find support on its many times. The term major moving averages usually refers to the moving averages that are considered to be strong support resistance by technical analysts. So you hear the mentioned regularly on CNBC or news or any other financial networks. Some of the major moving averages that you may hear. Other 20 or 21 day moving average to 40 day moving average to 50 or 55 day moving average, the 100 day moving average, and the 200-day moving average. These are just a few of the many other effective moving averages that are used by various traders and everybody ends up developing their own favorites. I personally use Fibonacci numbers as I found these to work like a charm, and I use the 132155200 day EMS. However, when I am day trading, I also like to use the eight exponential moving average. So let's get right into the charts and let's see how these actually work and how we can use them. So the first thing that we're going to do is we're going to add our moving averages to this chart. So if I just get rid of these drawings that I created and to add your indicators or you have to do is head over to the top right here where it says indicators. And select this button and you come across a search bar where you can actually search for exponential moving averages. So if you just type in exponential moving averages before you even finish typing it, it probably will come up. So you can stop after you've typed in exponential. And you can see right here where it says built-in, you'll see it says moving average or exponential. This is the correct moving average that we would like to add. So if you click on it, once, it will add it onto your chart. And you can see to the left, right now you can see this line that has just been added, thus the EMA that has just been added right now. So if you click it four times because we want. Add the 13, The 21, the 55, and the 200. I already have the 255. So this is why this white line right here is the 200, and this green line is the 55. So I only have to add it once more because I already have these two have already collected ones. So that's the third one. And I just need to add it once more so that we can have all four indicators on our chart. So I'm just going to add it once more right now. And it's added it, but you won't see a change because it's added it on top of this same line. So you won't see it, but it is there. As long as you clicked it, it would be there. So if we now exit out of this, and if we double-click this line that has been added on to our chart, what we can do is we can see the settings of the chart. So I will start by editing the 13 EMA or the 13 exponential moving average. So the first thing that we want to do is we want to edit the color. So personally, when I'm using the 13 EMA, I like my 13 EMA to be brown slash orange. So I'm going to select this brown slash orange color. And the next thing I'm going to do, I'm going to change the thickness of this line to the second level and that will increase the thickness of this 13 ME line right hands, you can see it's now much more visual than it was. And the last thing I would do is I am going to go onto input. And under inputs, you can see that at the moment the length selected right here is nine. So this length means that this line right here is being calculated using the last nine candles. But we want to change this nine to 13 so that this exponential moving average is plotted using the last 13 candles after the last price clothes instead of nine. So that's why we're changing this length to the teen. So once we select 13, if you click outside the box, you will notice that the line changed in terms of smoothness. It's now moved a bit much smoother or slower than the nine, because 13 candles or more than nine candles. So the line will automatically move at a slower pace than at nine candlestick EMA. So once that's done, that's literally all the settings that you have to change here when you're changing the nine to the 13 EMA. So if you select okay, what we'll do now is we'll change the last exponential moving average to 21. But for some reason I can't seem to see it. So that means when I clicked on it, it did not add because we only have one line. So if that is the case, or you have to do is go back to indicators and type in exponential again, and then just select the exponential moving average to added onto your chart. And once that's added, you just exit and double-click the Ema that has just been added. And under inputs, we're going to change this to 21. And once this has been changed, if you select style instead of inputs, because right now when input, so we put the length to 21. And if you select style, we're just going to change the color of this candle. And personally, I like my 21 EMA in the color of pink. So I am just going to select the Add button right here so that I can get more colors. And if I scroll down to this pink, I'm going to go to the top right hand side corner. I act so that I get a nice and bright pink and select Add, and that will select my color to be pink. So if I select this color again, and then I'm just going to change the thickness so that it's more visible on the chart right here so that it's easier to the I for me. And that is literally if I click into this box and select ok, that is all my Indicators added. So these are all my exponential moving averages added to my chart. So if you just want it to cross check just to make sure that you've added the correct numbers in the correct ones as listed on the right-hand side right now. So this white one for me personally, I use the white line as the 200 exponential moving average. So if I double-click on it, select inputs, you can see that the length is 200, so that means that the last 200 candles are the ones that are being smoothed doubt in this white line. And if I wanted to cross check the 55 just to make sure that it is the 55, the green one. I'm going to double-click on the green one and you can see that the length is 55. So this is the 55-year may say if I wanted to cross check again the pink one, if I double-click on it, you can see that this is the 21 EMA. And last but not least, if we check the 13, which is the orange slash brown one. If I select that one, you can see that the length is 13. So this is the 13 year May. So now we've got all our E amaz on our chart. And this is how our chart would look like. Doesn't that look beautiful? So, okay, now we're going to go through how we can actually use these lines in trading our assets. Whether you're trading cryptocurrencies or stocks, this method works with any market. So one of the first things that you realize just by looking at this chart right here, is that the 55 seems to be a strong or a major moving average. So the 55-year may seems to be a strong or major moving average. This is because every time the price comes down to the 55-year ME, there seems to be some type of support or resistance. So I will show you exactly what I mean. So if we look right here, we can see that the price is going up. It was going up, it is going up and then it hit a top and then it started coming back down. And where did it come down to? Came down to this 55 year May right here. And this is where it seems to have found a bit of support. And from when it found support, it started going up again. And if you recall earlier, I was saying that usually these moving averages are like magnets. Anytime the price moves quite far away from the moving average, it always snaps back towards the moving average. The moving average. Usually, these are the major ones that I'm referring to you. They usually provide as support or resistance a couple of times before they are broken three. So we can see that this price then went on to move up and it came back down to the moving average of number 55 right here and broke it this time. It broke through this 55-year May. And when it broke through this 55-year ME, this meant that the 55 EMA became resistance. We can see that a broke through. It came down near enough this 200-year may. And if you recall earlier, I did say that the 200 EMA is quite a big bully. It's one of the big major moving averages. It didn't even touch this to a 100 EMA and the price dotted already going upwards and went back or snapped back towards the 55 EMA. And when it got to the 55-year ME, what happened? Well, we can see that the price Krug boats to break through. And this is because what was once support becomes resistance once it gets broken through. So as we mentioned right here, this 55-year May was support. I go broken through, it became resistance on the price, came back to this 55-year may. It's now resisting the price. The price did slyly breakthrough it for a couple of days and then it just fell over. So this was more like a fall over. So it kind of broke it or it looked like it was break in it and then the price just came back down because this right here is an area where there's a lot of resistance. So we can see that the price came down, found a bit of support again down here, which is the area where we found support previously. And we can see that the price has tried to bounce up again, but at the moment it's being rejected. It's still being rejected by this 55 EMA as resistance. So as a trader, you now know that at the moment we are trending on a short term downtrend based on this 55 EMA right now because we're trading underneath this 55-year may, so we're on a short-term downtrend. Whereas in previously we were on a short term upfront because we were trading above this 55-year May. So if we break through this 55 AMA will be on a short-term up trend until we break this high right? Where this price couldn't go further upwards. And once we break this high right here. So when I'm saying this Hi, I'm referring to this price point right here where the price couldn't break. Once you break this i, then we can say that we are actually on a longer-term trend. However, in the grand scheme of things on the daily chart, we are on an up trend because at the moment, the price is trading above this big major 200 exponential moving average, this wireline right hassle in the grand scheme of things, we are actually on an up trend. The next thing I want to talk about is how we use the 55 EMA and the 200 EMA to determine something called a golden crossover and a death cross. And these two signals are very powerful signals in determining trend change and Trend direction, especially when they are on a higher timeframe. So just before we move on to the golden crossover and the death cross, we just want to just confirm how these moving averages work once again. So this 200 year may take the last 200 candles on this chart and adds them together and divides the number or the price that you get, the total price by 200. That's how we get this average. So it's basically an average of the last 200 candles. That's why this line is the need. And the 55 EMA, this green line right here. The reason why the 55 moves faster than this white line is because we're taking a smaller sample. So this 55-year maze taken only 55 candles ends why it moves faster. And the less the sample, the faster the line will move. So the same thing applies to this 21-year may the reason why this 21 EMA moves faster than the 55, because this 21-year maze taken a smaller sample. So this 21 EMA is only looking at the last 21 candles. And that's how this line is created right here. It's creating a nice smooth average line that shows you the last 21 candles. And the same thing applies for this 13 year May right here, taking the last 13 candles and it's giving you the average price for those lost 13 candles. And if you recall, I mentioned that these indicators right here, I'll called lagging indicators. So that means that these indicators use past price. These are not real time indicators, these are lagging indicators. They using historical price points, hence why they follow the actual price. So when I say Follow the actual price, I am talking about the candle sticks. So for example, right, how when we see this breakout, we can see that these moving averages stop following the price because these moving averages are taking a smooth average of the historical prices and it moves up because the price right here, this is real price, this is real-time price. So these moving averages will follow the low time price to give you an average of this real-time price using previous or passed or historical data. And that's it for this lesson. Thanks for watching.
28. The Golden Crossover & Death Cross Explained: Hi, I hope you're well, we're now going to explain what a golden crossovers. So a golden crossover is one of the most powerful trading signals that you will come across. And if you use it correctly or executed, well, you will make a lot of very profitable trades. So we're going to talk about the death cross first and then go through the Golden crossover afterwards. So what is a death cross? Well, the death cross is when the 55200 exponential moving averages cross paths. So specifically the 200 exponential moving average will move above the 55 exponential moving average. So just to clarify this visually, I'm going to draw this on this chart. So looking at this chart, so we are assuming that the 55-year may means in a downward direction like so. And then the 200 EMA moves in an upward direction like so. So this 200 EMA moves in an upward direction to cross paths with this 55 AMA like so. And as soon as these two cross paths, this is what we call the death cross. So the death cross is when the 55200 EMA cross pots and specifically the 200 moving average, which is this white line right here, will move above the 55 EMA, like so. This is very, very important because the psychology behind this movement right here is that the 200 moving average is now acting as resistance instead of support. So when this happens, the price will fall underneath this 200 EMA. So this 200 year may will stop being Support and stop becoming resistance. And this is very, very major because as I've mentioned earlier, the 200 exponential moving average is a very, very major key moving average. And when this happens, we will most likely be on a downward trend for a good period of time before we can break through and break above this 200 moving average again, to start a new AP trend. So this is why this death cross is very, very important to know as a signal within trading. So when the death cross happens, this 200 EMA was thought changing direction and move towards the downside like so. And this 55 EMA would carry on moving downwards or it could change direction and try and break through the 200-year may, but this will most likely not be the case very quickly. Usually try. Sometimes it does happen, but usually we will be now on a long-term downtrend like so. And then what would happen is This 200 EMA would serve as a resistance area. Anytime the price hits this to your 100 EMA, it will usually become resisted until it gets broken through and this will serve as a downtrend. So this is what a death cross is. A death cross is when the 55200 Moving Averages cross paths. Specifically the 200 moving average, which is this white line moving above the 55 moving average, which is this green line, right half. So how about a golden crossover? What is a golden crossover? Well, a golden crossover is the opposite. A golden crossover is when the 55 exponential moving average and the 200 exponential moving average cross pots. Specifically, when the 200-day moving average moves below the 55 moving average. So to visually represent this, this is what we're talking about, the 55 EMA who's specifically change direction and start moving towards the upside, like so as I'm drawing on this chart right now, so the 55, We'll stop moving direction to the upside like so. And move towards the 200 EMA and crosses the 200-year ME moving above it and the 200-year ME moving below the 55-year may, as demonstrated in my drawing. And then you start seeing that 200 EMA changing direction to the upside underneath the 55 EMA. So the 55 EMA will be on top of the 200 EMA and the 200-year may will be below the 55-year may. And this is what we would call a golden crossover. Once this cross happens right here, this is a golden crossover. And the psychology behind this is that 200 EMA has now become support. So it was once a resistance and once this 55-year may crosses above the 200 DMA, the 200 EMA becomes support. So it is now supporting the 55-year May. So this is now going into an up trend. So now we would be officially in an upturned because this average, this average lines right here, major averages. And these are showing a significant supports because the 200 is supporting the 55. And the reason why it's significant is because the 200 EMA has more data. So if you remember, when I was explaining how these moving averages are calculated, the larger the data, the more weight it will have. So the more reliable the data is. And just the same way as with timeframes. The higher the timeframe, the bigger the picture that you're seeing. So this 200 EMA shows us a bigger picture. So we're seeing that in the bigger picture, this 200 year May the price has now started moving in an up trend, which is why the golden crossover is a very significant signal. And this is how the chart would basically look like just using examples of the exponential moving averages. And that's it for this lesson. Thanks for watching.
29. The Moving Average "Swing Trading" Strategy: I hope you're well, right? So now I'm going to teach you guys a swing trading strategy that is simple and very profitable. This is definitely one of my favorite strategies, and it is one of the strategies that I started off with when I started my trading journey. I started off with this trading strategy because I didn't have a lot of time to be spending in front of a screen monitoring the price and taking over 20 trades a week, for example. So this trading strategy is ideal for individuals that do not have a lot of time to invest, such as students who are in full-time education or individuals in full time employment. So if you fit any category whereby you don't have a lot of time to invest, this trading strategy will be ideal for you because this swing trading strategy allows you to make one or two major trades a week as it doesn't require a lot of screen time and monitoring. So let's get right into the charts right now we're looking at big coin US dollar, and BitStamp on a daily chart. So if we zoom out, we can see that we've got our 200 EMA RIAA and white, our green 55 EMA, Hour 21 EMA, which is pink, and our 13 EMA, which is brown slash orange color. So the first thing that we would have to determine is whether we're in an up trend or a downtrend. And to determine whether you're in an up trend or a downtrend. You can use moving averages to do this. Especially for this strategy, we will be using moving averages on a high timeframe in order to see whether when an up trend or a downtrend. So anytime you're using moving averages, the ones that I specifically suggested in my lessons, in an up trend, the moving averages would the biggest sample will act as support pushing the price upwards. So the 200-year may will be at the bottom, followed by the 55-year may, then the 21 AMA, and finally the 13 EMA in a downtrend, the moving averages with the biggest sample will act as resistance, pushing the price downwards. So the 200-year may will be at the top, followed by the 55 EMA, then the 21 EMA, and lastly the 13 EMA. So just to show a clear visual representation, I am going to draw these on this chart for you lies. So in an up trend, the moving averages with a bigger sample will act as support pushing the price upwards. So you would have the 200-year May first like so. So this would be the 200 DMA. And then you'd have the 55-year may on top of the 200-year made like so. And then the 21 EMA on top of the 55-year may like so. And finally, you'd have the 13 EMA on top of the 21 EMA like so. So this would be an, an up trend. And in a downtrend, you'd have the 200-year may at the top like so. And then the 55 EMA below the 200 EMA like so, followed by the 21 EMA below the 55-year may like so. And lastly, you will have the 13 year may underneath the 21 EMA like so. Okay, so now that we know how to determine an upturned in a downtrend using our EMS. So I will exponential moving averages. We are now going to dive into the chart and look at how we can actually play a breakout strategy using these moving averages. So if I just go right onto the chart, we can see that we're on a Bitcoin US dollar charts, and right now we're in a daily chart. But what I'm going to do is I'm going to move to a weekly chart to begin with. So let's start on a high timeframe. So as you guys should know by now that the weekly chart is usually used by long-term investors or position traders. So with a weekly chart, it would be an investor that is willing to put your money down or put your money in an investment that you're willing to hold for a very long period of time. So it's almost like a Invest and forget type of strategy where you put money down and then you leave it for a really long time. This could be a couple of years. Usually is a couple of years actually, if you're looking at the weekly chart, especially if you're trading on a weekly chart. But it also depends on the volatility of whatever asset you trading. But usually it's on a long-term basis whereby all before a couple of years. So looking at the Bitcoin shot, we can see that we've got our 200-year MA or 55 Hour 21, and now 13-year May. So if we backtrack a little bit here, and I'm just going to zoom in so that we can see properly. Right? So if we backtrack, so this is back in 2015 on the weekly chart. So we can see that in 2015 around June time. We just move this down so that you can see the date around June time. This is when the 200 EMA started forming. So one thing to note is that when an asset starts trading, you won't have all the moving averages because of how they're moving averages are calculated. So depending on what asset you're trading, you may not have that 200 moving average. So you need to keep that in mind. However, if you do have the 200 moving average, that means that asset has been trading for over 200 weeks. Because so in this instant, this 200 moving average would be calculating the average price for the last 200 weeks. So gene for 2015 would be the time that this chart started recording the price action for Bitcoin on this particular exchange. Hence why we now have a smoothed out to a 100 moving average, which represents the last 200 weeks that the price action has been added together and divided it by 200 to get this meat doubt white line. So if you remember, in an up trend, we've got the white line or the 200-year me supporting the 55-year may. So in this case, you can see that we can actually save out. We are in an up trend from this section right here, wants the 200 EMA was formed. We were not in a confirmed up trend. The reason why is because the 21 moving average and the 13 movie on average were underneath the 55 moving average. And if we go back to our diagram whereby we were showing you guys how to determine an up trend using our moving averages, we clearly stated that the 55 EMA as to be above the 200 EMA, followed by the 21 EMA, and then lastly followed by the 13 EMA. So this would disqualify the price being in an up trend over this section right here. So only starting from this point right here. And I'm just going to highlight this point so that you are crystal clear with this. So once this crossover happens right here, we have just put this bread line right here. And this is exactly the point where we can say that Bitcoin is officially in an up trend based on our strategy of using moving averages, because the 55 has finally crossed underneath the 21 moving average and the 13 moving average. So this meant that we now qualify in our AP trend criteria whereby the 200 is underneath supporting all other moving averages. And the 55 is just above the 221 is just above the 55, and the 13 is just above the 21. So this criteria right here identifies an upfront for us. So ideally, as a long-term investor, this is around the time that you would have wanted to get into Bitcoin around 2015, if you are someone who wanted to put your money down and was willing to wait for a couple of years until you see gains in Bitcoin. This would have been the perfect time to get into Bitcoin right here. However, as a smart investor that you guys are, you would want to anticipate this crossover, right? It's best to get into the market before the crossovers happened. It's not bad if you get into the market once the crossover has happened. But you want to reduce the risk of just in case the crossover does not actually happen. So it's best to get into the market before the crossovers happened. So you anticipate the crossover. And how would you do that? Well, you'd use some of the skills that you've already acquired in this course. So, for example, right now we can see that Bitcoin was on a downtrend and it carried on coming down and down and down. And we see that it hit a bottom right, 1.5th, right? So this was the mach where it bounced off. So this would have definitely been a support area, right half. So you would mark this barrier, right? Has support lakes. So so if we mark this as support, we can see that BigQuery bounced and then he went up. And then this became resistance right here. So we can also mark this point, right? Yeah, as resistance. Like so. So we've got support and resistance. And then BigQuery came down to the support and it seems to have bounced from that support. And then he went up, came down again, and then it seems to not reach the support, but it's still bounced up. So it got a higher low right here. So Bitcoin went up and then it got rejected by the 55 EMA right here. And then it came down and then this candlestick, right had this would've been the giveaway. This canvas they were I had as a smart investor, this would've been the moment that you'd have taken advantage of because this would have given you a nice good trade that would have been off low-risk. As soon as you see this candle right here, you'd have been very interested in Bitcoin because becuase pounds from this, near this support right here. And then he got rejected by the 55-year ME buddy when it came down. And then we have this dough G, looking like candle, this candlestick, right, have showed that there was so much indecision in the market. And usually when you get a DOE g on a downtrend, it highly indicates that there will be a momentum change in the market. So there will be a direction change. So right now we're going on a downtrend, and right now it looks like there will be a momentum change. So one could put down about 20 to 50% of their investment, right? Has, and right after the candle, close off this candlestick right half. So you'd enter a trade right here and put down roughly 20 to 50% of your capital. And then you'd wait for another confirmation candlestick that will help you increase the probability of the price going your way. And on top of that, once you've put that 20 to 50% down, you would set a stop-loss just underneath the low of this previous candle, right? You can see this previous candle had a low of $221.11. You might put a stop loss of roughly around $218 so that if it goes below $280, you cash out automatically. And that way your funds are safe. Your capital is safe. So you protecting and preserving your capital. So that's what I would have done right here. And the next thing that you do is you're waiting for that second confirmation that will improve or increase the probability of you being right. And this candlestick right here would have been that candlestick that would have given you that confirmation right here. This is now a clear, dodgy candle. The price had been going downwards, and we see this candlestick right here. The price opens and closes roughly around the same area. So this would have been a clear, clear sign for me to put the rest of my capital down. Once I've put the rest of my capital down. Also simply just put that stop-loss at $218 right here just in case the price somehow goes in a different direction. Because remember, these trades are not guaranteed. These candlestick formations only give you a probability and they give you a high probability of the chances that the price is going to change in momentum and actually go a different way. So in this case, it was on a downtrend and a routine momentum and will start growing on an up trend. And that is exactly what happened. It started going on an up trend. So this is one strategy that you could use to actually enter the trade. Or if you're a more preserve and trader, or you can do is you would wait. So you wouldn't actually put any money down when you see this, you'd just mark this points to show that, okay, there's a high probability that there will be a change in momentum. And then you'd mark this point as well to show that there's a high probability of change in momentum. And then you could actually enter a trade on this next candlestick or even the following one. But personally, I think may be because of the experience that I have out of definitely took my trades on this candlestick right here, put down a bit of my capital in right here, and then put the rest of it in right here and set my stop-loss because I know I won't really do as much. I mean, what would be my risk? My risk would be roughly 3%. And worst-case scenario out would be aiming for this 55 EMA right here. Because I know that this is usually a strong resistance or the top right of this, the last high that we achieved. So my risk would be 5% and then my gain would be roughly 22%. And that is a really good trade. The risk reward ratio is so good, like it just makes sense for me to take that trade. Okay, lists actually look at this visually. So if I entered my trade right here, and I am willing to risk it to righthand. So yeah, my risk would be roughly about 5% of my money and I would gain roughly 24% of my money. So this is just to me, it's a no brainer. That's exactly how I would have taken this trade. However, everyone is different. You find out what type of trade or you are, whether you are risk adverse or you're for risk a little bit. You know, you will find out as you trade and as you get more or gain more experience. And this is how I would find the perfect time to enter this trade. So once you've entered this trade, now what you do is you would ride it along. You would write this trait because remember, at the end of the day, you are actually a long-term investor. We are on a weekly chart. A weekly chart is not for someone who wants to just make quick gains. I wouldn't recommend if you want to use a strategy to make quick gains that you use a weekly chart. A weekly chart is for long-term traders. It doesn't make any sense for you to be using a weekly chart to trade for short-term gains. It makes sense to look at the weekly chart just so that you can determine the trend direction. However, to trade on it on the weekly chart, that doesn't really make much sense. It wouldn't be as profitable. So what you do now is if you've entered right, how you'd write this, you would write it along because remember right now we are using the EMA strategy. So as a long-term investor, this is how I would have entered. However, you could have also entered up here, but it's just more risky because up here, you have a higher risk of the price coming down. We don't know, so we want the sweet spot. So hence why I'm teaching you guys how you can actually determine the best place to enter your trade as a smart, long-term investor. So right now what you do is you'd write this out. So once you've entered this trade, you'd be watching this market very closely. So you've got your stop loss and you're looking for this price to maybe get some resistance or even change direction once it gets to the 55 bar, you are anticipating that this price would actually cross over and go above the 55-year May. So that the 55-year may can actually cross downwards and come and support the 21 EMA and the 13 year May. And the reason is because we can see right here, these two-year maze, Raja, the 21-year main, that 13-year me. They are kind of like curving. If you look if you look closely, they are coming down in the curving upwards. So we're now anticipating this crossover here, because this crossover signifies that we are in an up trend. So once you see this price shooting up is going to be a very, very good sign for you because it will increase the probability of this becoming a long-term up trend. And the 55 crossing over to come underneath the 21 and the 13 EMA. And as we can see, this is exactly what happened. So we went into an up trend right here where this red line is because this is where the crossover happened. And when the crossover happened, we hit our criteria of having the 200-year may supporting the 55-year may, whilst the 200 DMAs underneath it, 55-year may above the 200-year May, the 21 EMA above the 55-year May, and the 13 year may above the 21 AMA. So now all we do is write this price until we see a cross over that determines a downtrend. This is literally how easy this strategy is. We just use these moving averages to determine trend change. Once it happens, we are trying to get into the trade before the crossover actually happened so that we get in at the best price. And this also significantly reduces our risk of being incorrect or the price going against us. So all we're doing now is we're going to write this until we see a change in trend direction. So looking at this chart, we can see that Bitcoin just carried on in an up trend and carried on in an up trend and carried on. And you can see the prices just going up. So the good thing about this strategy is that it prevents you from taking profits too early because a lot of people would have cashed out right here. Because, I mean, it's a good percentage to cash out right here because that's thus you'd have doubled your money. If you had cashed out right here, you'd have doubled your money. However, you'd have cashed out too early because you can see that the price is clearly still going up. But people that do not know these strategies or people that actually don't know how to trade would not know that the price is most likely going to go up because they won't know that you're in an up trend. They'll be thinking, you know, I've made so much gains right now. So I'm probably it's probably best to just get out. And then a lot of people would have cashed out here. But then as you can see, the price came down. Two pounds of these moving averages is bouncing off, is bouncing off them is bouncing off the minis carrying on going up. This is the power of moving averages. That is why the psychology is that the 200 is supporting all these moving averages and then the 55 is supporting all the moving averages above it. And then the 21 supports all the moving averages above it. And the 13 supports all the moving averages above it. And the two major support moving averages are the 55 and the 200. So if anything, you should only get worried. Price crosses the 55 EMA or the 200. And once we get a death cross, and actually I didn't mention that this is actually a confirmation of a golden cross over because the reason why it's a confirmation of it is because this 200-year EMA did not exist before this price point. However, now that we've got this 200 year May we can actually say that this point can be called a golden crossover because this is the moment that we confirmed an up trend with the 200 EMA and that is very significant. So let's see how long we would write this four. And remember, we are on a weekly chart, so every candlestick represents a week. These are weekly candle sticks. So every single candlestick that you can see right now represents one week. So moving on, we can see that the price keeps going up. I'm just going to adjust this so that you can see the prices go up in a much, much better visual way. And we can see that the price carried on going up and up and up and up. So that was in 2015, we're now in 2017, going up. 2017 still going up. And right now, looking at it, let say in May 2017, you would have gained roughly 704%. So this would have been a 7X. You'd have seven. You'd have multiplied your capital seven times. This would've been a 7X so far in 2017 at this rate. So looking at this chart, you can see that the price carried on going up and carried on going up. And at this point, in June 2017, you'd have ten x your money, 11 x actually, because this is now eleven thousand one hundred, one hundred and forty four percent. So you'd have 11 extra money. And this shows you how powerful this strategy is. And as we can see, the highest price, this price when two, was around roughly 19 thousand to 20 K. So if we look at the exact highest price, it was 19,666 according to this chart and this exchange, right? And that would have given you 8,444%. That is just amazing, just using this simple strategy. But that's if sold at the top, selling other top is more difficult than it sounds. However, setting at the top is very difficult because you would have to use a mixture of strategies to be able to do that. And at the moment, we haven't actually gone through all the strategies that would actually enable you to be able to hit this top right here as you exit point, because they are people, they are trade is that would've definitely hit this spot on and cash dot right here. But it's not every traded that way at the top, most traders will not hit the top, hitting the top. It also kind of involves an element of luck you from to be honest. However, it is doable because you can hit the top of your using various strategies and the stars are aligning and you're finding confluence. So it's definitely possible, but it's rare most traders, and as a trader, you are looking to get the middle part. So the best way or the best analogy that I can think of is a burger. You know, when you're eating a burger, wants the best part of a burger is the meat, isn't it? You know, the, the, the meat in the burger, the middle part is the best part. That's the part that you really want is the same thing with trading. Trading is almost like eating a burger. You know, the bottom is the bond, the top is the top bun, and the middle bit is the meat. You want them meet the meat is the best bit. So when you're trading, just try and make sure that at least get some gains, get those middle gains hitting the top is not as important as making profit, because end of the day, a lot of people tend to want to hit the top. And then because they always trying to hit the top, they miss out on the meat. Because once you try and hit the top, you know, a lot of things can go wrong. A lot of things can go wrong, especially if you're not disciplined, if you're trading and you strategies and you just try and do what's in your head. For example, you'd starts trying to chase profits or trying to make your money back because you've made a wrong decision and which costed you are loss. However, using the strategy that we're using at the moment, we wouldn't have been selling it, right? Have we would be still holding because we can see that we're still in an up trend. Our moving averages are telling us that we're still in an up trend right here. The price starts coming down and hit the 55-year may, as I've mentioned earlier, this is the only time that you stop being a bit wary when you start hearing the 55-year may because it's looking a bit negative. The drop from the top to the 55-year ME does a lot of gains that you've lost. However, we are still in an up trend because these moving averages have not yet crossed. And as we can see right now, the price keeps coming down and it keeps coming down. And it keeps coming down. However, it seems to be finding some support and then it keeps dropping, and then it hits the 200-year May. And right now what we can see is a broke the 200-year MA for couple of weeks and then it went back up. So these moving averages have not actually crossed. So right now we would still be holding and the price is going up, it's going up, it's coming down, it's going up. It's going up. It's coming down, it's going up, it's coming down, it's going up. So at the moment, because these moving averages have not yet crossed, we are still in an up trend, we are in a long-term trend. So as a long-term investor who had bought in 2015, which would have been the best time to enter your trade, you would not sell, you would still be holding. And at the moment, even though you would have missed this top, you would still be up by 4 thousand, or roughly around 4,786%, just using this strategy and you'd have not sold your Bitcoin is yet. So this is why if you keep hearing people say huddle. Although, although usually people who are huddling, Auto just means you're holding your coin, you, you buy a certain coin in cryptocurrencies and then you hold it. And this is why they say harder because these guys, most of them would have got into Bitcoin early. Therefore, you would still be holding your position right now because at the moment we're still in an up trend until we see a downtrend whereby we get a golden crossover on the weekly chart. On the weekly chart. However, if you are not a long-term investor, you'd have been using this same strategy on a different chart. So this is why this strategy is very useful is because works for position traders who are long-term investors. It also works for swing traders who aren't just people that want to swing a particular asset for a couple of days or a few hours. And this strategy works best for those two categories. However, the great thing about this strategy is day traders can also use this strategy and that's it for this lesson. Thanks for watching.
30. What is MACD - Moving Average Convergence Divergence: Hi there. In this lesson, I'm going to teach you a key indicator called Mac D. The Mac D is one of my favorite tools because it is very simple to use the Mac D Users moving averages and the histogram. And I am going to be explaining how you can use these tools to your advantage when you're performing technical analysis or trading cryptocurrencies or even any stock. This strategy of using the Mac D indicator works on any market, makes sure that you pay attention and go over this class if you have to, because grasping exactly how this indicator works will be very profitable. So without any further ado, let's get right into it. So what is Mac D? Well, Mack D is what we're looking at right at the top section right here. So if I just zoom in into this chart and open the top section, this is what Mac D is. It's the visual representation of moving average convergence divergence. And Mac D is actually just an acronym for Moving Average Convergence Divergence. And this indicator is a tool that's used to identify moving averages that are indicating a new trend. So whether it's a bullish trend or a bearish trend, the Mac D is used to identify these trends. That's the main purpose of a Mac D indicator. And most traders, as you guys know by now, for most traders, in fact, for every trade off the trend is your friend and finding the trend is one or one of the top priorities and trading. So, you know, it's important to be able to find a trend. And then that way you can just ride the trend. And the trend is where all the money's at. So if you find the trend, you can write the trend. So it says it's as simple as that. So that's actually one of the reasons why the Mac D'Souza very popular indicator. And a lot of people seem to like the Mac D. So whilst just looking at the Mac D, You can see that we've got two moving averages right here, one at the top of this blue line and one at the bottom, this red line. And then we've got this green section right here. And this is a histogram. And a histogram is part of the Mac D. So before I get into how the Mac D can be used and what exactly it is. Let me just show you how you can actually add it onto your chart in trading view. So if I just click out of this, if you don't have the Mac D indicate on your chart, or you have to do is select the indicators icon at the top right here, or a shortcut to just open this is by pressing the forward slash on your keyboard if you didn't know, in case it's quicker for anyone, but you can just bring your mouse to the top right here and select the indicators icon. And you will get this search bar Popup onto your screen. And all you have to do is search Mac D, So m, a, c, d. And under Built-in, you will see Mac D right here. And if you select this ones. That will add a Mac D indicates our onto your chart and you can exit out of this search. So once you get your Mac D, So minus popped up at the bottom right here. And you can see that it will be by default in red and green and light green and red. And you can see that is different from how I've customized mine. Mine is customized and to customize yours, all you have to do is just double-click on the moving averages, any one of them. If you double-click on it, the default should be on style. I had already just selected input so that I could amend the settings. However, when you open it up, it should open up on style. And this is where you can actually customize the colors and amend it so that it suits your needs. And so that it's personalized to you whatever your preferences. And just in case your Mac D popped up with different settings to mine. The only other setting here that may differ in terms of visual representation is how the histogram looks. So you may not have these bars when you actually add your Mac D indicator. And that would be because I have changed mine to column. So if you click this icon right here next to color 0, where my mouse is, if you click this, you'll have a few settings here. Yours might be at default settings. I think, I believe that a default settings, you've got this histogram selected. And personally, I don't like that visual representation. Hence why I changed this to columns. And I feel like the columns are very good, especially for visual representation and just being able to see where things are whilst doing your technical analysis. So just to do a really quickly, I use a bright green, so I'll just select this green. And I also like to thicken my moving averages so that I can see them quite well from afar. So if I change this to the third one and change all the colors to green, right? Uh, men, the Mac, D, The blue line. I like mine to be a bright blue. So I'm just gonna change that to a nice bright blue line. And I also like my Mac D to be big, so I'm just gonna use the second thickness right there. The capacity is already a 100. And the same thing with a RED, unlike a nice bright red. So if I select this read-write head and then change the thickness to the second line. And you can see that's how I've come to exactly this. Look right here. And to-to just move these around depending on your settings. You should be able to just, you know. Select the up arrow to move it up, or the down arrow to move it down. Depending on where it pops up on your screen. And I like my Mac D and RSI to be at the top here somewhere. So usually I'll have the RSI and then the Mac D, And then my chart or vice versa. You can play around with where you want to put your indicators and whatever suits you best. But mine is always at the top to make DMR is i. And right now we're talking about the Mac D. So I just wanted to show you quickly how to add your Mac D and customize the visual presentation of it. So I'm just going to exit this one, the new one that I have created now you know how to create it. And the only other thing I'm just going to show you is I'm going to dive into the Mac D and double-click on one of the moving averages and select inputs. Okay, so under inputs you can see that we've got fast length 12, slow length 26, and signal soothing nine. So usually when you open Mac D on any chart, including trading view, these would be the default settings. So the numbers that you will have, your fast length, slow length, and signal seething would be 12269. And these are usually the default numbers. And these are the numbers that are used to calculate your Mac D. So the data that is used to calculate your Mac D is represented by these settings right here. And I won't be going deep into the calculation of Mac D if you really want to find out how exactly it's calculated mathematically, you can Google it and you'll be able to find pages and pages that you can read upon that will explain the numbers in more detail for you. However, on a basic level, on just understanding the Mac D, How it works and making it work for you whilst trading. These, this is basically what you need to know. So the first number, this fast length, this number. This number is the number that is used for the periods that are used to calculate the faster moving average. So if we look at these two lines right here, this blue line and this red line, these are your Moving Average lines. So this blue line moves faster than the red line. And the blue line, as you can see it, it's got more movement than the red line because the red line moves slower than the blue line. So the red line will always be a bit smoother or much smoother than the blue line. And this 12 right here represents the number of periods that are used to calculate the faster moving average, which will be this blue line, right? Yeah. And the second number, this 26 right here, is the number of periods that are used in calculating the slower moving average, which is the red line right here. And The third number, this nine right here, is the number of bars that are used to calculate the moving average of the difference between the faster and the slow or moving averages. So this nine right now, under signal smoothing is the number of bars that are used to calculate the moving average of the difference between the faster and the slower moving averages. So for example, you can see that we've got 12269 right here as the MC d parameters. So this, like I said earlier, these are usually the default settings and these are the settings that I use when I'm trading personally. And once you understand the math behind the Mac D, you can change these according to however you want to trade. However, have, I've, I've always use the default settings and they've worked perfectly well for me in my strategies. And I'm sure they'll work for you and many others, for many, many more years to come. Unless you come up with your own strategy that uses different settings. So in this example, this 12 right here represents the previous 12 bars of the faster moving average. And then the 26 would be the representation of the previous 26 bars of this slower moving average line right here. And the nine represents the previous nine bars of the difference between the two moving averages, these two moving averages right here. And this difference that is calculated between the blue moving average line and the red line right here, is plotted by vertical lines called a histogram, which is this green visual representation right here on the chart. So the histogram basically represents the difference between the blue moving average line right here and this red moving average line right here. And this will all make more sense as I am giving you more examples and you're actually starting to use the Mac D. And when you start using the Mac D on your end. But just follow along and watch this video over if we have to fully understand how this indicator works so that it can actually be very useful for you when you're actually using it in your trading. And one thing to know is that there's a common misconception when it comes to these Moving Average lines right here. So you may find that a few people are not aware that the two lines that are drawn right here, this blue moving average line and this red moving average line. A lot of people or a lot of traders are not unaware that these are not moving averages of price. These two moving averages right here, these are not moving averages of price. Instead, they are moving averages of the difference between two. Moving averages. Because if you're following along when I was stating how these lines are calculated, these lines are calculated based on these settings right here. And if you want further information on their out, just suggest you Google it and then read upon it so that you can actually see the mathematical calculations. But just note that these moving averages are not the same as moving averages of the price. Instead, they are just the moving averages of the difference between two moving averages. So for example, just to clarify, this faster moving average, this plume moving average line right here is the moving average of the difference between the 12 and the 26 period moving averages. That's how this blue line is calculated. It is the moving average of the difference between the 12 and the 26 period moving averages. Hence why these moving averages are not moving averages of the price and the slow moving average, this red line right here plots the average of the previous MAC D line. So once again, this would be the nine period moving average. So this means that we're taking the last nine periods of this blue moving average right here and plotting it as our slower moving average, which is this red moving average line right here. And this Sweden's out the original line even more, which gives us a more accurate line. And that's how we get these two moving averages. And the histogram simply plot the difference between the fast moving average and the slower moving average. And the histogram may actually sometimes give you an edge in the market because it can help you to see early signs that a crossover is about to happen. So if you look at this chart right here, where my mouse is, you can see that as this faster moving average separates from this slower moving average, this red line, right? Yeah, you can see that as the blue line separates from the red line, the histogram gets bigger. You know, the histogram gets bigger on this positive side right here. So the top side is the positive side and the bottom side is the negative side. And you can see that to the right where we've got numbers that go from 0 upwards positive and then from 0 again downwards negative. And as you can see as this blue moving average foster line right here separates from the red moving average line. The histogram gets bigger. And this is called a MAC de divergence because the faster moving average is diverging or moving away from the slower moving average. So this blue line is diverging from this red line right here. And this is called Mac de divergence. When you're seeing the Mac D diverging or moving away from the slower moving average. This blue line right here, moving away from the red line. And as the moving averages get closer. So if you see the Mac D diverged away from the red line right here. And he carried on moving away, moving away, leaving only moving away. And at this point, right here where my mouse is, this plu, faster moving average starts switching direction and it starts coming closer to the red line, is coming closer and closer to the red line. And this is called convergence because the faster moving average is converging or getting closer to the slower moving average, which is the red line right here. This blue line is getting closer to the red line. So this moving average is converging or getting closer to the slower moving average. And that is actually why or how you get the name Moving Average Convergence Divergence. And because of how the Mac D works, and literally that is all you need to know about the Mac D for it to help you in your trading and to help you make good and profitable trades. So next, what we're going to do is we're actually going to go through some examples and see how we can apply this Mac D indicator to some strategies and some of the things that we've already learned in the course so far. So if we select OK on the settings, we are going to continue this lesson in the next lecture. And that's it for this lesson. Thanks for watching.
31. The MACD Strategy - Moving Average Convergence Divergence: Right, so how can we actually use this key trading indicator called the Mac D to trade? So as we have already spoken about the moving averages on the Mac D indicator, these two moving averages that have two different speeds, the faster one will obviously move a bit quicker than the slow one, which means that it will react to price movement much quicker than the slower one. Therefore, when there is a new trend, the fast line, which will be the blue line, will react first and eventually cross the slower line, which is the red line. So when this crossover happens and the fast line, which is the blue line, begins to diverge or move away from the slower line, which is the red line. It's often indicates that a new trend is being formed. So I'm just going to show you an example of this on the charts. So if you look at the Above Chart, I've just gone into the Mac D indicator just to quickly show you a visual representation of what I was just explaining. So when a new trend happens, usually this blue line right here reacts first. So in this situation, if you look where my mouse is, you can see that this blue line has started moving towards the red line, which means it's diverging. As you can see, this blue line right here, this moving average is beginning to move towards the red line and it crosses over and goes above the red line. It was below, now it is above the red line. And once that crossover has happened, the first line starts to diverge or move away from this RED moving average, the fast line, which is the blue line, is moving away from the red line. And this often indicates that a new trend is being formed. So this will increase the probability of a change in momentum. So looking at this chart, you can see that we crossed over right here where I have just drawn a box. And I will actually just make that clear. And let's make the box yellow. So as you can see, we've crossed right here on this chart. And if we look at the histogram as the blue line was moving towards the red line, the histogram was moving towards 0. Anytime we crossover, that's when the histogram hits 0. And anytime the blue line goes over the red line, the Histogram goes to the positive side and vice versa. So anytime the blue line goes below the red line, the histogram will go down to the negative side. So as a trade-off, we have just defined that this indicator helps us to see that there is a probability of a change in momentum or a change in direction or trend. So at this crossover right-hand, you'd anticipate that the market is going to move in a new trend opposite to the way it was moving previously. So if we look at our chart now, we have highlighted this point as we would execute a trade at this point, depending on what the momentum is on the price action on the actual chart. And if we just for cost ahead, and if we predict that we will execute another trade at the crossover again, right here. So depending on the trend movement prior to this section right here, we would predict a change in trend from whatever the trend is prior to this crossover. And once we're in that trend, when this crossover happens, we would execute a trade because we reckon that there's a high probability that the trend will change from this trend to a new trend. So let's find out and see if this will actually work in this instance. So right now, we can see that we've got a highlighted area right half. So this is around the time we would execute our trade. So we can see that judging from this chart right here, the price had moved downwards. The price was moving downwards in a downward trend. So if I actually just zoom in so that it can be easy to see, right? So we're saying we're going to enter a trade right-hand because of this crossover. We didn't know which trade it was because obviously I was only looking at just the Mac D indicates in full screen. Hence why I was explaining that we would enter trade, but we don't know which way because we didn't know what the trend was. But now that we can actually see the price action, we know what the trend is. So prior to this crossover, we will on a downtrend slash sideways movement. But it was mainly a downtrend because it's either is going up or down. And I know that because if we look at the data prior to this point where we want to take a trade. We can see that if I actually zoom in. So before this point where I'm saying that you'd execute a trade, you can see that we had hit a high and the price was moving downwards. So this is a downward movement in price right now. So prices moving downwards. And as you can see, the blue line is underneath the red line on the Mac D. So prices moving downwards until we get this crossover. So you can clearly see that this was a downtrend. And then we see this crossover. And this crossover was a sign to show us a change in trend. And this is the upturned, as you can see, the price has started going and an upward trend. So we are saying we would enter a trade at this crossover. So that would mean that we would have entered this trade on this candlestick right here. So if I just highlight that, because this is where we crossed over and because we're now in an up trend on the next crossover on the Mac D, that is where we would execute our cell Oda. Because when the Mac D crosses over again, we are anticipating that there will be a change in momentum from the trend that we're in to a different trend, which would be a downtrend because right now we are an up trend as you can see. So if we check the data that comes off data, we can see that we carried on in an up trend. And if I am to actually just add a long position indicator as we are taking a long position right here. Let's say we quoted in between this candle right there. And we put our stop loss at the bottom of the wick, which would be whatever the lowest for this candle or actually just underneath the 21 moving average because this would be a good strong support if price was to change momentum and come downwards. If you actually add the moving average strategy along with your Mac D strategy. I was actually supposed to say that right now, but it just came out because when you trade you the, the power, the great thing about trading is once you have an arsenal of tools under your belt, it's the combination of these tools that help you make very good probable trades that will give you a lot of profit. It's when you use all these tools together in a balanced manner, you will definitely succeed in trading. You will succeed. So it's literally just learning all these indicators, how they work, practicing using them and using these tools to make perfect trades. Because these tools will help you increase the probability of you being able to make a good and profitable trade. So we can see that the price keeps going up. So we've now just say our long position and a stop loss. We don't have a target because our target is, we are going to execute a trade once the moving average crosses. So we bought here, you buy hair on this crossover, and then you sell on the next crossover. So let's see what happened in this case, and let's see how well this trait could have been or was, or wasn't. As nothing is guaranteed, it just improves the probability of you making a good successful trade. So if we carry on, we can see that we're moving in an upward and we have slightly moved downwards. And it looks like the eight EMA is supporting the price. This is the ATM a right here where my mouse is this blue moving average line. So if you remember the previous lesson before this one, the moving average strategies, this is me combining again the Mac D with the moving average strategy. I was just explaining why I would anticipate the price to be going up is because this red candle seemed to get supported the eight EMA. And then again, the price couldn't break the support of the eight EMA. And the price seems to be moving in an upward direction, and at the moment is looking very bullish. So we can see that price carried on moving upwards. And then we've got this nasty candlestick right here. All synergy, see this candle stick out would be very cautious. This looks bearish. However, we're still in a very, very bullish trend. So let's see what the next candle looked like. It's a nice candlestick, so we're still going upwards. So this would have just been a caution candlestick right here. Be cautious, be looking and be ready to get out of the market. If the trend muse against G does, if you are combining both the Mac D strategy and candlestick pattern analysis. Can you now see how having a lot of these tools in your, on your belt will help you with your technical analysis. So right now we're just focusing on the Mac D strategy. So I will try and not interrupt that by making suggestions and how my or sharing the thought process early in the stage. So we're waiting for this Mac D to crossover. So let's actually move on to where it crossed over and see how this trade would have actually come up. So we can see that price carried on going up and up and up. And right here, this candlestick. Okay, let me backtrack back to MC d. We can see that the blue line, the faster moving average, has just started moving towards the red line. And as you can see on the histogram, we've got this convergence right here. And if we carry on going, we can see that we're now entering that zone that we outlined that we will be executing a trade. So this will be our cell order. We are saying we would sell right here. So if we go back to the chart, we would have sold on this candlestick right here. So just to highlight, we would have made our purchase or buy on this first white line that I've just drawn on the chart, let me actually make that line green just to represent our BI. And then let me actually make this line red to represent our cell. Right? So we would have purchased and sold right here, just using the Mac D strategy of execute a trade and the crossover, and execute a trade on the crossover. That's literally what you're doing. So you buy or sell at a crossover and you biosolids or the next crossover. And as you can see, this is on a daily Timeline and this is with the pair of Bitcoin USD. So that's literally how easy it is to use the Mac D. It's very simple in my opinion, and it's a very, very key tool to have on your belt. And I guess a lot of people love this tool because of its simplicity. It's very simple to use, straightforward, and it does the job. It works very, very well. And like any indicator, it doesn't work all the time. However, when it does work, it really does work. So for example, in this instance, we've just gone through this and let's just see how much profit we would have made if we took this trade. So we're saying would've sold on the red candlestick right there. So we would have sold roughly about here. And that would have been a 67.70% trade. You'd have made 67 percent profit. If you want it to be to the nearest percentage, it would be 68% that you'd have made on your trade. Like you'd have made more than half your money back. So if you put 1K, you'd have made around 670 back, thus profit. So that would have been a great trade. This would have been definitely great trade. And let's see how many days this trailers for. This would have been a 27 day trade. So you'd have made 67% in 28 days that are made. Let me, let me, let me guys, I hope your understanding how powerful this tool is, especially when it works and when you use it, right, is definitely a very good strategy to use. And when it works, it works well. However, like I said, remember, this is not guaranteed. This does not work all the time. However, if we use the arsenal of skills that you have learned and that you are learning in this course, you will be able to make these trades day in, day out and have less losing trades because you actually have a stop-loss setup and you're taking good risk to reward ratio trades. So that is the reason why this technical analysis, and why technical analysis is key because of that edge that it gives in the market if you actually know how to perform good technical analysis. So looking at this chart, you may think, well, I saw down here the trended already changed. We had already changed into a downtrend before I actually got to sell. And you are correct if that is what you're thinking and that is one downside about using the moving averages. Naturally, moving averages tend to lag behind price. So because these are moving averages, this is a moving average calculation. It's basically historical data. So once this crossover happens with Mike d, it represents a change in momentum. This change in momentum would have already happened. So as we can see, once this blue line started moving towards the red line, that's when the change in momentum actually happened. And thus the lag. You can see that the moving average is behind what's actually happening in reality in terms of price movement in real-time. So if you are thinking, well, I want to be selling at the top. This is where using your arsenal of skills comes in handy. Hence why it is important to know how to use the key main indicators and also other indicators. The more, the more tools that you can use and that you know how to use. And that you can apply to strategies that the better your Ohio or the probability of your trade being successful. So for example, with the tools that you've already learned in this course, such as candlestick analysis. As soon as you would have seen this candlestick right-hand, you would've been thinking that this is very bearish and I need to be cautious. So let me just highlight this candlestick right here. As soon as you have seen this candlestick right-half, you'd have been very cautious utopian thinking. The same way how, when we saw this candlestick earlier, I think it was this candlestick. Yeah. It must have been this candlestick earlier. And I was saying, I'll be thinking, oh, that looks bearish, is exactly the same way how you'd feel about this candlestick, but even more so because that looks like an OG. And a DOE G is a very powerful candlestick. So after this candlestick close div, it closed the way it is. I would be very, very cautious and be looking to get out because this is a DOJ candlestick that is happening on an up trend and that usually represents a change in momentum. And rightly so, the momentum change, I would wait until this candlestick opened and as it looks bearish or is it gets bearish out, cash-out. I would get out on this candlestick or this kind of state one of the two out either weight or using my risk management skills, I would maybe take out 25% on this candlestick and the rest on this candlestick, or vice versa. So this is why it is key to have a good arsenal of skills under your belt and even just looking at the moving average, if you recall, I did say that the histogram be a good indicator of a trend change before using the actual moving averages on the crossover. So as we can see right here, the histogram started ticking downwards right here. And this indicates that the blue line is moving towards the red line and when it meets the Red Line was going to happen is a crossover. So this can also indicate towards, you know, this is looking bearish. So these are more reasons as a trader who is performing technical analysis that you're seeing through visual representations and knowing how to use these tools that you've got under your belt. So you can see first, we get this candlestick that looks. Very bearish, and we'll look at the Mac D. We see that the MAC D, now moving towards the red line, the first line of the Mac D is now moving towards the slower line of the Mac D. We're seeing that the histogram is taking to the downside. And as you know, when it crosses 0, it goes to the negative side. And thus where the crossover happens at 0. And we're seeing that the moving averages are moving towards a crossover. And once you guys learn how to use the RSI indicator as well, you will just have the perfect package to execute Good profitable trade. These are the indicators that I use to trade and that most professional traders use. So these indicators of very powerful indicators and if you understand these and are able to apply these along with other tools that I'm going to be showing you guys in future courses, you will be able to perform really, really good traits, like trading is a journey. There's so much more that you can do. So we can use even more tools to set targets. So for example, using this Mac D strategy, there was no target with using other tools, such as the Fibonacci extension tool, you can have targets and these are more advanced tools. However, with the tools that you're learning in this course, those are the major tools that build the principles of trading and you can be successful. Just with those tools. However, everyone is different and we all have different preferences. This is a good foundation for you to take your trading to the next level. So this is basically how you use the Mac D to execute trades. And this would have been a nice 62.70% gain. And if you had actually cashed out on this second candlestick right here, you'd have made a 90% gain. And thus, that, that guy is really good. Okay? It may be easy for me to say that is, it's easy, but it's subjective. It is only easy because of the hard work that I've put in to actually understanding how these indicators work, how candle sticks work, how the price data is actually represented, and putting those things together with risk management, managing your emotions, the right mindset, practice, actually taking trades, whether it's your paper trading or you're actually trading using small amounts. You can be trading using something small like $25 or 25 pounds. You know, start small just for that experience. Because technical analysis is also different from when you actually press that buy button. That is also another realm in itself, but both combined together is when you have a full package where you're actually trading and investor, you know, I personally think in my opinion that the best way to go is by having all the tools that you need being balanced. So using technical analysis, using fundamental analysis and psychology, psychology within trading and having a good mindset, risk management or all these things are all important and they all have to be balanced for you to be the most successful trader that you can be. And does it for this lesson, guys. And I will see you in the next one.
32. What is RSI - Relative Strength Index: Right? So what is RSI? While RSI is an abbreviation for relative strength index and it is a momentum technical indicator that is used by traders to evaluate the strength or weakness of any financial market. It's identifies overboard and oversold conditions within the market. And to add the RSI to your trading view charts, all you have to do is come over to the top of your charts and click on indicators. A pop-up will come up. And this indicators and strategies pop up as a search box that you can search for the RSI on my screen right now you can see that we're on the favorites tab and you can see some of my favorites indicators, but you guys probably won't have these favor indicators on your chart. So if you type in RSI, you will see relative strength index. And as you can see, mine is thought because I've added it to my favorites. And if you'd like to add the relative strength index to your favorites, or you have to do is just on the star icon and that would add it to your favorites. And to remove it from your favorites, or you'd have to do is click on the star icon again, and that would remove it from your favorites. So if we select relative strength index by clicking once, that would add it onto our charts, as you can see, it's popped up right at the bottom here. So what we can do is we can get out of this popup right here. And if I move my favorite tools out of the way right here, we are able to actually see the RSI. Personally, I like keeping my RSI above the candlestick chance. So what I'm going to do is I'm going to click on this icon to move my RSI, the top of the candlestick charts as you can see. So this is where I like to keep my RSI right in the middle, just below the Mac D, and just above the candlestick charts. So once we've got our RSI up here, what I would do is I would customize my RSI indicator so that this line chart sticks out more and is easier on the eye for me. So what I'll do is I'll double-click into the RSI and that would enlarge it so that you can see it visually. It will be easier to see on the eye. And if I double-click this line right hand, we've got some inputs that we can play around with. Usually when I'm trading, I keep these as default and these are the default inputs. So if we select style, this is where I wanted to customize how my RSI looks. So under style, if I select this color tab, I'm just going to change the color to yellow. I prefer mine to be yellow and I like a thick line. So as you can see, it's now nice and easy to see on the screen. So you guys can select whatever color you want. You can select whatever thickness that suits your personality. And you can also play around with the capacity so you can actually make it lighter and not very visible depending on what you prefer. I prefer mine to be at a 100 percent. So once I've done that, I'm just going to click out of it and select, okay, however, whilst we're still here, you can see that you can also change the upper band color, the middle band color, and the lower band sold. The upper band is this line right here where my mouse is. The middle band is this line right here where my mouse is. And the lower band is this line right here where my mouse is and the background is obviously the background color. More leave that as default because we want our background to be black. If you want us to be white or a different color, please change it and this is where you would change it. So if we select, Okay, so the RSI is scaled from 0 to a 100. And on our chart we can see that the scale is on the right-hand side right here. And currently the RSI is between 60.562 as you can see here. And precisely, I would say 61, 19. If you wanted to see the figures quite easily, or you could do is you could select this data window or tab right here. And you can see that the RSI is actually 61.27. So this way you can actually see the exact RSI figure. Let's close this window for now and carry on with the explanation of the RSI. So the RSI is known as a momentum indicator, which basically means that it is a tool that is used to determine the strength or weakness of a financial assets such as crypto stocks or Forex. So all that momentum does is that it measures the rate of the rise or fall of the price of the current asset being traded. So this means that the RSI measures the rate of the rise or fall in the price of a particular asset. And traditionally there is an RSI rule that says. Typically readings of 30 or lower indicate oversold market conditions and increase the probability of price strengthening to go up. So anytime that the RSI comes down to 30, it means that the price of that particular asset is oversold, which indicates an opportunity to buy because that means that the asset is undervalued. So when an asset is undervalued, it is a good time to enter a trade on that asset or to invest in that asset trade is generally interpret that an oversold cryptocurrency is an indication that falling trend is likely to reverse, which means that it's an opportunity to buy and readings above 70 or higher. So if you recall, the upper band was the 70 line right here. So readings of 70 or higher indicates over boats conditions and trade is generally interpret that an overbooked cryptocurrency is an indication that the rising trend is likely to reverse, which means that it's an opportunity to sell. And in addition to the overboard and oversold matrix that we've just gone through, we've got the center line crossover right here. So with the center line crossover, generally speaking, a move
Kundai Dzawo - Investing & Trading, Technical Analysis & Trading Coach
