The Only Technical Analysis Video You Will Ever Need... (Full Course: Beginner To Advanced)
The Trading Channel2021-03-12
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21M views|3 years ago
💫 Short Summary
The video provides a comprehensive guide to technical analysis in trading, focusing on candlestick charts, trend identification, support and resistance levels, and trading indicators like the Average True Range (ATR) and moving averages. It emphasizes the importance of combining technical factors for successful trading strategies, including entry points, stop-loss placement, and target setting. Specific candlestick patterns, such as the 38.2 candle and engulfing candles, are highlighted for trend continuation and reversal trades. The video also covers trading strategies for double tops, double bottoms, and breakout patterns, offering insights into systematic approaches for trading success.
✨ Highlights
📊 Transcript
✦
Importance of Technical Analysis in Trading.
00:39Technical analysis uses historic price movements to forecast future market behavior.
Price is the foundation of technical analysis, with candlestick charts being a crucial tool.
Candlestick charts visually represent price movements and are essential in forex, stocks, and crypto markets.
Understanding single candlestick patterns is fundamental before delving into full candlestick chart analysis.
✦
Overview of Candlestick Charts in Trading.
04:27Candlesticks represent price movement over time, with green indicating increase and red indicating decrease.
Each candle has open, high, low, and close prices, offering a snapshot of market activity.
Analyzing trends and patterns in candlestick charts helps predict future market movements accurately.
Candlestick charts are valuable for identifying entry points and areas of value in trading across various time frames.
✦
Key Highlights:
08:02Green candles represent price going higher or closing above the opening price, while red candles indicate the opposite.
Trend identification is essential for accurate trading decisions, with an uptrend defined by new highs and higher lows.
Trend trading provides more accuracy and better risk-to-reward setups compared to trading reversals.
Impulsive moves breaking into new highs followed by pullbacks are crucial indicators of a trending market for objective trend identification.
✦
Identifying trends in the market is crucial for successful trading.
11:40Staying above the lowest low of a pullback is essential to remain in an uptrend.
Impulsive moves breaking into new higher highs indicate an uptrend.
Trading should align with the market trend for maximum gains, focusing on buying opportunities during uptrends.
Expect a pullback after an impulsive move and avoid breaking below the previous pullback low.
✦
Identifying uptrends and downtrends in the market.
14:16Uptrends are characterized by higher lows and higher highs, while downtrends have lower highs and lower lows.
Recognizing trend direction is crucial for making accurate trading decisions, with selling opportunities in downtrends.
Support and resistance levels are important for predicting reversals, entry points, stops, and targets in trades.
✦
Importance of support and resistance in trend continuation trading.
17:46Beginners often focus on trend continuation trading and can benefit from using support and resistance areas for better decision-making in trending markets.
Support and resistance can be used as entry points in trending markets, with examples provided for both uptrend and downtrend scenarios.
Identifying previous resistance levels that can turn into support is crucial for successful trend continuation trades.
Practical application of support and resistance concepts is demonstrated using live chart data in the video.
✦
Using support and resistance levels for trend continuation trading.
21:54Breaking below a previous low indicates a bearish trend, with the subsequent pullback as a potential entry point.
Support turning into resistance and vice versa is a key concept illustrated with live chart examples.
Setting stop-loss below support levels is crucial for safety in trading.
Support and resistance levels can help determine possible targets in bullish trades.
✦
Using trend and structure for favorable reward to risk ratios and accurate trading opportunities.
24:07Identifying levels of resistance and support in both uptrends and downtrends is crucial for successful trading.
Setting stop losses beyond support levels and targets away from resistance levels is emphasized to manage risk effectively.
Trading indicators are introduced as tools to simplify price movements and provide clarity on market conditions, trend identification, entry points, and stop and target placement.
The ATR indicator is highlighted as a particularly useful tool for determining average price movement over a set period.
✦
The Average True Range (ATR) indicator in trading.
28:01ATR calculates the average price movement based on the last 14 candles.
Traders should adjust stop loss and take profit levels based on ATR to match market volatility.
Using ATR helps prevent traders from being stopped out due to mismatched volatility levels.
Risk management strategies should be adapted based on specific market conditions, not a one-size-fits-all approach.
✦
Using the ATR Indicator in Trading
32:47The speaker demonstrates how to predict stops and targets in trading using the ATR indicator.
Stop losses and targets are placed based on multiples of the ATR indicator, aiming for a 1.4 to 1 reward to risk ratio.
Moving averages represent the average price movement over a specific period, providing insights into trading strategies.
The concept of moving averages is discussed in relation to using them effectively in trading.
✦
Using moving averages to define trends and identify areas of value in trading.
34:40Plotting moving averages on a chart helps traders determine if the price is in an uptrend or downtrend.
Combining technical factors is essential for a profitable edge in trading.
Recommended moving averages for areas of value include the 20, 50, and 200 period moving averages.
Aligning with these popular moving averages can help traders make more informed decisions in the market.
✦
Using moving averages and the RSI indicator for profitable trading.
38:00Traders utilize the 200-period moving average to push prices higher and identify areas of value.
Moving averages are used in combination with support, resistance, and candlestick patterns for successful trading.
A moving average can be used as a trailing stop to capture more of a trend and improve reward-to-risk ratios.
The RSI indicator indicates momentum, not reversals, and should be used in conjunction with other technical factors for effective trading strategies.
✦
The importance of candlestick patterns in trading.
42:35Candlestick patterns can help spot reversals, provide clarity on market sentiment, and assist with entry reasons for trend continuation and reversal trades.
Three favorite candlestick patterns highlighted are the 38.2 candle, hammer, and shooting star candles.
These patterns are used to analyze market movements and predict future price action based on buyer and seller behavior.
Understanding and identifying these patterns is crucial for effective trading strategies.
✦
Candlestick patterns in trading.
44:14Importance of having objective rules for consistency in trading.
Identifying valid 38.2% candles and interpreting buying or selling pressure based on Fibonacci retracement levels.
Engulfing candle pattern and close above/close below candle pattern for identifying reversals or trend continuation trades.
Summary of key points learned about trends, indicators, support, and resistance levels in trading.
✦
Explanation of the 38.2 candlestick formation in trading.
47:45The formation's psychology involving buyer and seller interactions in the market.
Demonstrating the use of Fibonacci retracement to identify potential entry points based on the candle's position.
Setting stop-loss and target levels using average true range (ATR) calculations.
Importance of combining different technical factors for successful trading strategies.
✦
Using the 38.2 percent candle for trend continuation trades and identifying possible reversals.
51:06Spot engulfing candles for entries and trend continuation setups.
Examples of bearish engulfing candles and close below candles for possible entries into trades.
Emphasizes combining technical factors for a profitable strategy and trading in areas of value.
Significance of understanding different candle patterns and their implications in trading decisions.
✦
Using the RSI indicator to identify overbought situations and trading opportunities.
54:45Importance of combining technical factors like ATR for stop-loss placement.
Entering trades based on candlestick patterns and chart patterns.
Double bottoms and double tops as key chart patterns.
Establishing objective rules for identifying patterns on a chart.
✦
Explanation of double bottoms and double tops in trading.
58:10Double bottom forms when market tests support level twice, neckline breakout indicates buying opportunity.
Double top forms when market tests resistance level twice, neckline breakout indicates selling opportunity.
Importance of waiting for validation before entering trades emphasized.
Objective rules for identifying double bottoms explained to improve reward-to-risk ratio in trading.
✦
Overview of trading strategies for double bottoms and double tops in the market.
01:00:50Specific rules for identifying valid patterns, such as confirmation through breakout and pullback, are outlined.
Emphasis on waiting for buying or selling pressure at key levels before entering a trade is highlighted.
Emotional fortitude is emphasized as essential for navigating the ups and downs of trading.
Brief mention of the opposite strategy for double tops involving resistance areas and selling pressure.
✦
Importance of Double Top and Double Bottom Strategies in Trading.
01:05:24Emphasizes aligning with higher time frame trends for accuracy in trading.
Daily chart trends are significant when trading double bottoms and double tops on lower time frames.
Breakout patterns such as flag patterns and ascending/descending wedges are highlighted for improved trading accuracy.
Encourages further study on breakout patterns and shares personal preferences for trading strategies.
✦
Importance of flag patterns in trading volatile trends.
01:07:12Flag patterns are more reliable when the price stays above the 20-period moving average.
Only trade flag patterns when they occur above or near the moving average.
Setting stops and targets for flag pattern trades using the breakout candle as a reference point.
Introduction of bullish and bearish flag patterns, with bearish patterns involving selling or going short, and alternative trading strategies like ascending and descending wedge patterns.
✦
Trading strategies based on wedge patterns focus on identifying resistance levels and buying pressure.
01:12:06Wait for pullbacks and green candles before entering trades with a smaller stop loss.
Targets are set based on structure with a one-to-one reward-to-risk ratio.
Move stops to break even and consider market behavior when executing trades effectively.
✦
Importance of waiting for a pullback in trading for better reward to risk setups.
01:14:00Technical analysis is crucial but not sufficient for consistent profitability in trading.
Mentorship program available for learning specific trading strategies, including trading psychology and risk management.
Promotion of discounted training program with benefits and included content.
✦
Importance of testing a profitable strategy for three months before live trading.
01:16:58Achieving this puts traders ahead of 95% of others.
Promotion of EAP training program at a discount for advanced training and assistance.
Encouragement for viewers to like and subscribe.
Expression of fatigue after an eight-hour video recording session.
00:00your ability to use technical analysis
00:03in order to make good trading decisions
00:05and inevitably make money in any market
00:08is imperative it's something you cannot
00:11do without and if you do not understand
00:13some parts of technical analysis or if
00:16you don't know how to use them correctly
00:18then that is likely a huge reason that
00:21you are currently either losing money as
00:23a trader or struggling to create profits
00:26over time so for that reason what i want
00:28to do in today's video is show you
00:30everything you need to know about
00:32technical analysis we're going to be
00:33going all the way from what a
00:34candlestick chart is to indicators
00:37support and resistance trend all the way
00:39to entry patterns and how to take stops
00:42and targets we're dissecting everything
00:44today in this video i will be pouring
00:47all the knowledge about technical
00:49analysis that i have gained over the
00:51past decade of my own trading career
00:53into one video and since i'm doing that
00:56for absolutely free it would be awesome
00:58if you could just smash that like button
01:00for me to help out with the youtube
01:01algorithm if you are new go ahead and
01:03click that subscribe button because we
01:04come out with content like this each and
01:05every week you're already subscribed
01:07welcome back you know what's coming i'll
01:09see you after the intro and disclaimer
01:13[Music]
01:19so i'm gonna say this really slowly so
01:22that anybody who is brand new will
01:24easily understand
01:26technical analysis is the study of
01:28historic price movements in order to
01:31make accurate decisions of what the
01:34market may do next technical analysis is
01:37how we make those accurate decisions of
01:39what price may do next
01:42every part of technical analysis is
01:45based around price
01:47think about a candlestick chart that's
01:49just a visual representation of price
01:52itself trends are nothing more than
01:54higher highs and higher lows or lower
01:56lows and lower highs in price
01:58structure support and resistance even
02:00indicators
02:01are based around price they are just a
02:03formula added to historic price data in
02:06order to plot that indicator on your
02:08chart so because of the fact that the
02:10foundation of all technical analysis is
02:12priced the very first thing we're going
02:14to study today is a candlestick chart
02:17and i'm going to put a timestamp beside
02:19me of the seven or eight things we're
02:21going to be going over in today's video
02:23that way you can skip ahead if you
02:25already know parts of technical analysis
02:27with that said let's go ahead and dive
02:28into candlestick charts
02:33what you see on the screen in front of
02:35you is known as a candlestick chart
02:37right now we are on a daily chart of the
02:39s p 500. i'm gonna go to a price chart
02:42of bitcoin
02:43now we are on the daily chart of bitcoin
02:46and now let's go to a candlestick chart
02:48of the euro dollar
02:50now what do you notice about all three
02:52of these they all have candlestick
02:55charts so the foundation of technical
02:57analysis no matter what market you're
02:59trading in whether that be
03:01forex stocks crypto the foundation of
03:04technical analysis in every market are
03:06these candlestick charts but before we
03:08can understand this full candlestick
03:10chart first you need to understand what
03:13a single candlestick represents so let's
03:15do that now here are a couple of single
03:17candles and what these candles represent
03:19is price movement throughout a certain
03:21period of time depending on the time
03:24frame that you're on i'm sure you've all
03:26heard of time frames right the daily
03:28chart the one hour chart the five minute
03:30chart depending on what time frame
03:31you're on that's the amount of price
03:33movement these candles represent so
03:35let's consider that we are on a five
03:38minute chart that means that each of
03:39these candlesticks would represent five
03:42minutes of price movement now before i
03:45get ahead of myself candles have two
03:47parts candlesticks have a body which you
03:49can see here colored in in green
03:52and a wick which are the lines above
03:55and below the body of the candle a green
03:59candle represents a five-minute period
04:01since we're on a five-minute chart right
04:03a five-minute period where price went up
04:06or closed above where it opened we're
04:09going over that in just a second a red
04:10candle has a body as well but the body
04:13of this candle is red because it
04:15represents a five minute period where
04:18price closed below or went lower during
04:21that five minutes to make this really
04:23simple let me go ahead and explain the
04:24open high low and close the open of a
04:28candle
04:29is where it opened during that five
04:30minute period so let's say that the
04:32beginning of our candle is at 12
04:35o'clock
04:36what this candle would represent is the
04:38open of a candle at 12 o'clock the low
04:41would be the lowest point price got to
04:44during a five minute period
04:47the high
04:48would be the highest point price got to
04:50during a five minute period and our
04:53close would happen
04:54at
04:561205 and that would be the ending price
04:59during a five minute period
05:02so that is a green candle a red candle
05:05represents when price went down during
05:07that period of time so for a red candle
05:10we would have an open at the top of the
05:12body this is the only difference between
05:14the two candles the open is at the top
05:16of the body of a red candle because
05:19during a red candle it represents a
05:21period where price closed below where it
05:23opened or went lower during let's say a
05:26five minute chart so the open is there
05:29the highest point is the same it's the
05:30top of the line or wick of the candle
05:33that's the highest point price got to
05:34within five minutes the low is the
05:37lowest wick on that candle that's the
05:39lowest point price got to in five
05:41minutes and the close is the closing
05:44price after five minutes of data on a
05:46five-minute chart again if we started
05:48this at 12 o'clock
05:50then the closing price would be at 1205
05:52and this candle shows you all of price
05:56between all of the action of price
05:58between 12 and 1205 if you're on a five
06:01minute chart if we're on any other time
06:03frame everything is exactly the same
06:05except for the amount of time that
06:07passes if you're on a one hour chart
06:09then this would be the open at 12
06:12o'clock and the close of this candle
06:15would be at one o'clock everything else
06:17stays the same the low is the lowest
06:18point that candle got to during that
06:21hour the highest the highest point that
06:23candle got to during that hour so at
06:25this point you should know exactly what
06:27each and every candle represents and we
06:29put a large amount of these candles
06:32together in order to interpret what
06:34price is likely to do next by
06:35identifying trends and areas of value
06:38identifying entry patterns which is all
06:41stuff that we're going to go over right
06:42now so let's dive down to a chart take a
06:44look at a couple of live examples of
06:46single candles and talk a little more
06:48about trend areas of value and the way
06:51we can use candlestick charts to predict
06:54what the market may do next with a high
06:56degree of accuracy just as a quick look
06:59at candles on an actual chart we are
07:02currently on the one day chart of the
07:04year in new zealand so what do each of
07:06these candlesticks represent they
07:08represent 24 hours of price movement or
07:11one day of price movement a green candle
07:14represents a day where price went higher
07:16or a day where the price closed
07:19above where it opened right a red candle
07:23represents a day when price went lower
07:26or a day where price closed below where
07:29it opened this most recent green candle
07:32what does it represent it represents
07:34price opening right here at the
07:35beginning of the day
07:37the lowest price that price got to is
07:39the bottom of this week the highest
07:40price that price made during that 24
07:43hour period is the top of the wick right
07:45here and the close of that day is the
07:48top of the body of that candle the
07:50opposite is true for a red candle so now
07:53that we have that let's move on to how
07:55we can use a large amount of these
07:57candles in order to identify
08:00a trending market and make accurate
08:02trading decisions
08:07so if you had to take a guess of what
08:08trend the euro new zealand was in which
08:10is the chart that is in front of you
08:12what would you say uptrend downtrend or
08:14consolidation
08:15hopefully you were able to say an
08:17uptrend and simply put an uptrend is
08:20nothing more than when a candlestick
08:22chart is consistently making new highs
08:25and then higher lows fall by new higher
08:28highs new higher lows new higher highs
08:30new higher lows new higher highs new
08:33higher lows and so forth this higher
08:36high and higher low situation is what is
08:39referred to as a trending market and
08:40this particular situation would be
08:43an uptrend
08:45now the reason we utilize a trending
08:47market is because it gives us more
08:49accuracy on our trades you've probably
08:51heard followed the trend before and most
08:53beginners
08:55will gravitate towards trend trading for
08:58good reason again it adds accuracy to
09:00your trait it can make for better reward
09:02to risk setups and all in all it's much
09:05easier to ride a trend that's already
09:07there than to pick the very top or the
09:09very bottom of a market trying to trade
09:12reversals so it's a good thing to trade
09:15with the trend with this market being in
09:17an uptrend what direction would you like
09:19to trade this market to the upside right
09:22you'd want to be buying while the market
09:24is in an uptrend but
09:26here's the problem with trend
09:27identification that i see all the time
09:30and that is just not really
09:31understanding or having a set in stone
09:34objective defined way to identify trend
09:36a lot of traders can easily identify
09:39this
09:40right that's an easy trend to see but
09:42what if price is acting like price
09:44normally does and it looks more like
09:45this
09:46we have our high low a new high but then
09:49price does this
09:50and this
09:52and then finally goes up and then goes
09:53up again at this point doesn't it get a
09:56little bit harder to identify trends so
09:58with that being the case i want to give
09:59you an objective way to identify trend
10:02right now what we have in a trending
10:04market are impulsive moves that is the
10:06big moves that break into new highs
10:09right here is our impulsive move i'll
10:11label those with an i
10:14these are the impulsive moves after an
10:16impulsive move the market takes a
10:18breather we call that
10:20our pullbacks
10:21these
10:22are our pullbacks in price this would be
10:26a pullback
10:28followed by
10:29our next impulsive move that breaks a
10:31high right here impulsive move and again
10:34pullback right here so the objective way
10:37that we're going to be identifying trend
10:39is the lowest low
10:41of the pullback
10:43cannot be broken for us to stay in an
10:46uptrend so once we have this move that
10:50breaks and closes above
10:52our previous high we call that our what
10:54impulsive move
10:56once we have that impulsive move
10:58breaking into new higher highs which is
11:00what we're looking for in an uptrend
11:02this market is still considered in an
11:05uptrend until we break our close below
11:07the lowest low of the previous pullback
11:10so when we get a break above this high
11:13right here when this market breaks above
11:15this high with the new impulsive move
11:18making a new
11:20higher high
11:21then this market
11:23is still considered to be in an uptrend
11:27until
11:29or unless the market breaks and closes
11:32below what the lowest low
11:34of the pullback which would be where i
11:36just put this line this is the lowest
11:39low
11:40of that pullback so as long as the
11:42market
11:43stays above that low
11:46then we're still considered to be in an
11:47uptrend and we still want to look for
11:48buying opportunities at this point right
11:50here we have had what
11:52another impulsive move
11:55this move is our impulsive move because
11:57it broke above the previous higher high
12:00at this point what level cannot be
12:02broken for us to continue this uptrend
12:04we cannot see
12:06the low
12:07of our pullback broken where's the low
12:10that's the lowest point price got to in
12:13this pullback as long as the market
12:15stays above that level and continues
12:18making higher lows and higher highs than
12:20we're still in an uptrend what we do not
12:22want to see
12:23is the market come down and break below
12:27that previous low of the previous
12:30pullback i know that might sound
12:31complicated we'll do it on a real chart
12:33to help clear things up also if it
12:35sounded complicated just go back and
12:37rewatch this portion of the video this
12:39is how i objectively identify whether
12:42the market is trending up or down is
12:44going to be the opposite we'll look at a
12:46downtrend as well but the reason we have
12:47to have this information is because we
12:49want to be trading alongside
12:52the trend of any given market if this
12:54market's in an uptrend like this do i
12:57need to be trying to sell and go short
12:58and go against the trend no because the
13:01likely scenario is that we're going to
13:03continue into this trend we're going to
13:05continue breaking into new highs and
13:08just to show you that let's click play
13:10and see what happens at at this point
13:12right now looking at the chart what do
13:13you expect to happen
13:15what do we have we have our low just as
13:18we were just drawing it out to a high
13:20a higher low
13:22a higher high
13:24here's our higher low right here our
13:27higher high our higher low our higher
13:30high and our higher low we have now done
13:32what created an impulsive move
13:34what do we expect after the impulsive
13:36move we expect a pullback but what
13:38cannot happen
13:40this pullback after our impulsive move
13:43cannot break and close below
13:45the low of our previous pullback this is
13:49the low of our previous pullback so if
13:51this market does this
13:52then we're expecting what a possible
13:55reversal we're expecting this market to
13:57possibly head lower but as long as we
14:00stay above this previous pullback we're
14:02still considering this market in an
14:04uptrend still looking for buying
14:05opportunities let's see what this market
14:08does
14:10boom just like that we break into new
14:13structure highs continuing this uptrend
14:16here on the euro new zealand so that's
14:18how i identify uptrends list now switch
14:21the script flip the coin if you will and
14:23take a look at downtrends and how to
14:26identify those in order to make more
14:28accurate trading decisions so if for a
14:31uptrend we are looking for
14:33higher lows and higher highs what do you
14:34think we're looking for with a downtrend
14:36it's the complete opposite right we're
14:38looking for a starting point here then
14:40we're looking for lows
14:42followed by a lower high followed by a
14:44lower low followed by a lower high
14:46followed by a lower low followed by a
14:48lower high so on
14:50and so forth and with this being the
14:53case just like
14:55with the other example i'll give you an
14:56example on the whiteboard here if we're
14:58heading lower it's really easy to
15:00identify this as a downtrend this chart
15:03extremely easy what about when price
15:05does what price normally does and we get
15:07something like this
15:08and then the market goes like this
15:11and gets higher and consolidates and
15:12then finally breaks below this low well
15:15now
15:15since we just went over this you know
15:17that this is still a downtrend unless
15:19what happens just like an uptrend we
15:21have our impulsive moves here
15:24followed by pullbacks
15:27what we do not want to see
15:31is the market break and close above the
15:34high
15:34of the previous pullback in a downtrend
15:37if that happens then we're considering
15:39that a possible reversal but as long as
15:41that doesn't happen then we are still in
15:43a downtrend and what kind of trading
15:45opportunities are we looking for if this
15:47market's heading down we're looking for
15:49selling opportunities as long as the
15:52market continues to head in the downward
15:54direction so that is my objective way of
15:57identifying trend and at this point you
16:00have a lot of knowledge you've gained
16:01throughout this video you now understand
16:03candlestick charts you understand how to
16:05identify a trending market whether that
16:07be up or down so if you've already
16:09gained value why not go ahead and smash
16:11that like button for me and what we're
16:13going to do now is talk about how to
16:15find high probability areas of value
16:18using structure support and resistance
16:21see you there
16:25support and resistance are simply areas
16:27in the market that price is likely to
16:30react from support is an area in the
16:32market that price is likely to have a
16:34bounce up from or be supported by
16:37whereas resistance is an area in the
16:39market where the price of an asset or
16:41currency pair or crypto or stock is
16:44likely to fall or drop down from
16:48these areas are based on historic price
16:51and based on other areas of support and
16:54resistance we can see in historic data
16:57and those are based on the decisions of
16:59all other market participants we're not
17:02going to dive into the psychology of
17:03support and resistance in this beginner
17:05video but these areas of support and
17:07resistance are useful
17:09for three main reasons
17:11you can use them
17:13to spot possible reversals you can use
17:16them as entry points on train
17:17continuation trades and you can use them
17:19to help you determine your stops and
17:22targets so what we're going to do right
17:24now is go over a couple of those as i
17:26said earlier most beginners are going to
17:28gravitate towards trend continuation
17:30trading so what i'm going to do is show
17:32you how to use these areas of support
17:34and resistance to make better trading
17:36decisions while in a trending market and
17:38i'm going to go over how to use them to
17:40help you set your stops and targets so
17:42let's go ahead and dive into some charts
17:44and talk about support and resistance
17:46and how they can help us make better
17:48trading decisions using support and
17:50resistance as entry points in a trending
17:53market is very simple if we build on
17:56what we already know from the previous
17:58lesson about trend if we were to draw
18:01out a trending market it would look
18:02something like this
18:03low to a high pull back break above a
18:06little bit of consolidation not crossing
18:09that previous pullback low though so
18:10what are we still in an uptrend right
18:13continuing then pulling back continuing
18:15up pulling back and continuing higher
18:18in an uptrend
18:20the likely scenario if we're going to
18:23continue in this uptrend and one of the
18:25best ways to look for possible support
18:28and resistance trades is to look at the
18:30previous level
18:32of resistance that was broken to become
18:35support
18:37this is how we use support and
18:39resistance for
18:41entry points in a trend continuation
18:43model and in a trending market is by
18:46using that previous level of resistance
18:48as possible support let's do a bearish
18:50example in a bearish trend the trend
18:53would look something like this right
18:55as we go further and further what we're
18:57looking for in a bearish trend is for
18:59the market to get back up to
19:01that previous level of structure support
19:04that now we expect to become
19:07resistance so this is called a break and
19:10re-test strategy and what we're looking
19:12for with this strategy again is the
19:14market to break below
19:16a previous level of support like we have
19:18right here come back to that level and
19:21provide a trading opportunity we're
19:23going to talk about how we enter trades
19:25later on in the video but what you need
19:27to know right now is using structure
19:29support and resistance for entry levels
19:32in a trend continuation model and in a
19:34trending market goes like that and what
19:36we're going to do now is take a look at
19:38this on live chart data
19:40here we are on that same euro new
19:42zealand chart
19:44what did we just discuss well we want to
19:46see the trend start so we have our low
19:49to high
19:50high or low followed by our higher high
19:53at this point the reason this is our
19:55higher high is because
19:58this is where the market
20:01made a new high compared to its previous
20:03high and closed above the previous level
20:05of resistance with that being the case
20:08the previous level of resistance is
20:11likely to become support for a trend
20:14continuation
20:15market for a train continuation trade if
20:18we continue looking here we have a
20:20push-up
20:21a pullback
20:23a push-up to a new high this pullback
20:25where does this pull back come to if i
20:27was to draw this box out right here at
20:29our previous level of structure
20:31resistance
20:32and make it a little easier to see for
20:34you
20:36what do you notice
20:37at this point with this trend
20:39continuation in mind the market made a
20:41new high with our impulsive move
20:44comes down to our pullback where does
20:46our pullback come to our pullback comes
20:48right into the previous high that was
20:51broken this is resistance turned into
20:53support and this is how we use support
20:56and resistance to find entry points in
20:58trend continuation let's take a look at
21:00a bearish example of this now here we
21:02are on that same euro aussie chart we
21:04looked at for the trending model we were
21:06discussing earlier in the video in this
21:08case we have our high down to our low up
21:11to our high once we break below
21:14this low right here what are we looking
21:17for
21:18in a bearish trend after we break that
21:22low
21:23we would be looking for a pullback and
21:25let me delete these lines to make it
21:26easier to see
21:28into that low just as we have right here
21:31and a continuation of the trend
21:33afterwards as you can see this market
21:35pulls back right into the previous area
21:38of support it does become resistance and
21:40this market continues pushing down this
21:43happens over and over again and looks to
21:46be happening right now on live chart
21:48data here on the euro aussie let's draw
21:51that out so you have a complete
21:52comprehension of how to use support and
21:54resistance to find entry points in
21:56trending markets we have our high to our
21:58low our lower high what happens we break
22:01below what our previous low if we
22:04put a box around that previous low
22:07what has price now done price has now
22:10came back into
22:12that previous
22:14support level that now is what it's a
22:16break in retest strategy so if it was
22:18support it's now going to be resistance
22:22so at this point once we get to that
22:24level we can start looking for entry
22:25reasons again we're gonna talk about
22:28ways to enter the market in these type
22:29of situations a little bit later on in
22:31the video but for now it's just
22:32important for you to understand and
22:34comprehend that we're looking for breaks
22:36and re-tests of support and resistance
22:39levels in trending markets whether we're
22:41trending up or down that shouldn't have
22:43been too hard to comprehend but if you
22:44had any trouble rewind the video and
22:46watch that section again now let's talk
22:48about how to use these levels for
22:50possible targets let's go back to a
22:52bullish example
22:54so for a bullish example of this let's
22:56say that you got a entry
22:58in this area on a lower timeframe let's
23:00say you drop down and you saw like a
23:02double bottom or something in this area
23:04if that's the case then the way we could
23:06use support and resistance for possible
23:08targets is
23:10this level of support this box that we
23:12drew we definitely want our stop loss
23:14below that level so with that being the
23:16case we would make sure that our stop is
23:19below that level keeping us safe in
23:21terms of what we can expect out of
23:23targets the way we use this to prepare
23:26to take those targets is if we're
23:28expecting train continuation
23:30and before i continue do you see how
23:32everything's coming together
23:33we learned about trend in the last
23:35section if your pullback
23:39has not broken below the low of the
23:41previous pullback then what's the likely
23:43scenario that we break above these highs
23:45right into new highs and continue in
23:47this uptrend with that being the case
23:50what if you said well the way i'm going
23:52to take targets on this trade is by
23:55looking at the previous high and taking
23:58my targets there because the likely
23:59scenario is that this market continues
24:01higher so then you would place your
24:03targets based on this resistance level
24:06right here
24:07and that is how you use trend and
24:11structure in order to give yourself good
24:13reward to risk ratios and accurate
24:16trading opportunities in this case would
24:18have been about 3.6 reward to risk ratio
24:21on this trade
24:22my camera literally just died on me but
24:24i have an extra camera so no worries
24:26let's wrap it up with a recap
24:29for a trending market to the upside what
24:31we are looking for is a level of
24:33resistance to break and then we're
24:34looking for the pullback after the break
24:36of that level of resistance to come back
24:38to that level of resistance we're then
24:41looking for that level to become support
24:44in an uptrend and in a trending market
24:47for a downtrend we are looking for quite
24:49the opposite we're looking for a level
24:51of support to break
24:53and then the market have a pullback that
24:55comes back to that level of support
24:57we're looking for that level of support
24:59to become the likely area of resistance
25:02for the continuation
25:03of that downtrend in terms of stops and
25:06targets we're using these levels to make
25:08sure our stop loss is beyond that level
25:11of support that we point out or that
25:12level of resistance we point out and we
25:14want to look left and make sure our
25:16targets are not close to a level of
25:18resistance for a buy trade or not past a
25:22level of major resistance because that
25:23level of major resistance may push the
25:25market down we want to make sure we take
25:27targets or at least roll stops to break
25:29even before the market gets pushed down
25:32by that level of resistance the opposite
25:34is true in a downtrend with a level of
25:37support if you're selling you want the
25:38market to go lower you don't want to be
25:40beyond a level of support
25:42so that wraps up the support and
25:44resistance lesson next up
25:47we're going to talk all about
25:48indicators and how they can help you
25:50make better trading decisions let's do
25:53that right now
25:57before we get started i need you to make
25:58your chart look exactly like this
26:02just joking but trading indicators are
26:05formulas added to current and historic
26:08price and mathematical equations in
26:10order to plot lines and histograms on
26:14your chart the purpose of trading
26:16indicators is to help simplify what
26:18price is doing a candlestick chart
26:20itself can be very confusing at times so
26:23trading indicators are meant to clean up
26:26some of that noise they can also be used
26:28as an invaluable
26:30objective role in a trading strategy or
26:33in our trading in general to help us
26:36have consistency so essentially trading
26:39indicators can help to provide clarity
26:41on market conditions they can even help
26:43us to identify trend identify areas of
26:46value help us find entry points and even
26:49help us determine where we want to place
26:51our stops and targets now there are
26:54thousands of trading indicators out
26:56there and feel free to go test and study
26:59all of them to find the ones that fit
27:01your trading style best but in this
27:03lesson what i'm going to do is share
27:05with you my top three that i use every
27:07single day in my trading as indicators
27:10to help me make better trading decisions
27:13so let's jump into that right now
27:16the most useful indicator that i have
27:18ever found and with no exaggeration an
27:21indicator that i use every single time i
27:23place a trade is the atr indicator atr
27:27stands for average true range and what
27:29this indicator does is gives you the
27:31average movement of price out of the
27:34last 14 candles the way it works is it
27:38adds up the price movement in total the
27:41total amount of pips each candle moved
27:44out of the last 14 candles then it
27:46divides that number
27:48by 14 to give you the total
27:52average
27:53movement of price in the last 14 candles
27:56hopefully you can already see why that
27:58is so valuable but if not let's talk
28:01about how we use this indicator before
28:03we do that let's talk about how to find
28:04it on trading view it's super easy you
28:06go up here to your indicator tab click
28:08indicators and you type in atr it is the
28:12first one that is called built-ins any
28:15trading platform should have an atr
28:17indicator if it doesn't you probably
28:18shouldn't be trading with it but the way
28:21we use this indicator is to
28:24stay in line with the volatility of a
28:27market currency pair or time frame for
28:30example there's been so many times that
28:32i see a trader or hear from traders and
28:34they say stephen i don't know what i'm
28:36doing wrong i keep losing trades and you
28:38know i'm i got a good reward to risk
28:40ratio but i'm losing so much i'm still
28:43losing money in my account and they'll
28:44send me emails of their trades and
28:46they're risking 10 pips
28:49to make 20 pips
28:51but they're doing that on every currency
28:52pair and every time frame now this may
28:54work
28:55on a five minute chart maybe right on a
28:5915-minute chart possibly that creates a
29:02profit depending on the strategy but if
29:03you're on a daily chart
29:05risking 10 pips when the average
29:09if you look up top here
29:11whenever
29:12i go away from my drawing tool the
29:14average movement on a daily chart is 190
29:16pips you think that 10 pip stop loss is
29:19going to get hit
29:20yeah 90 of the time 90 of time you're
29:23gonna lose that trade because you're not
29:24in line with the volatility of the time
29:27frame you're on the same thing goes for
29:29different currency pairs for example the
29:31euro pound
29:33in the currency world is a currency pair
29:36that has a very small amount of movement
29:39per candle on the daily chart we're
29:41looking at 50 pips again look up here at
29:43the circle right at 48 pips
29:46that's a full day of trading on average
29:49for the euro pound whereas the pound new
29:51zealand on the same chart look at this
29:53day
29:54160 pips so do you think you need to be
29:58using the same exact stop loss when
30:01these two markets
30:02are moving so differently one moving in
30:05tiny amounts per candle one moving in
30:08huge amounts per candle no so that's why
30:10we need the atr indicator to help us
30:12stay in line with the volatility of a
30:14certain currency pair or a certain time
30:16frame to keep from getting wicked out by
30:19the market if you've ever been wicked
30:21out of a trade a lot of that could be
30:24because you're not following the
30:25volatility of a certain market so now
30:27let me move on and show you how i
30:29actually use this in my own personal
30:31trading so based on what you've learned
30:33so far in this video what trend is the
30:35aussie canada in right now well we've
30:38had a high down to a low
30:40up to a lower high down to a lower low
30:43with that being the case are we in a
30:45downtrend
30:46yes we are and
30:48in terms of structure and support and
30:50resistance we look for while in a
30:52downtrend what are we looking for
30:54we are looking for the previous level
30:56of support to become resistance
30:59in a downtrend and we haven't gone over
31:01this yet but we actually have a nice
31:04inverted hammer here or a nice shooting
31:06star candle whatever you want to call it
31:08i don't really worry about the names of
31:09them this candle has a long wick to the
31:11top side again we're going over
31:13candlestick patterns actually in the
31:14very next lesson but right now what i
31:16want to show you is how i would use the
31:18atr to help me predict stops and targets
31:21in terms of how i would use that
31:23indicator to place those let's go ahead
31:25and put a position tool on the chart
31:27right now the atr if you look in the top
31:29left corner of the screen right up here
31:31is 67
31:33for the aussie canada if the atr is 67
31:35what i want to do is make sure that i am
31:37at least one atr
31:39above the swing high of this current
31:41pullback to give the trade breathing
31:44room so if up to that high is 30 pips as
31:47you can see right here this is up to the
31:49swing high then i need to add 67 pips to
31:52that that would be a 97 pip stop loss
31:57now i know that i said
31:59we shouldn't be looking past levels of
32:01support like
32:03this in order to take targets but in
32:05this situation let's just do it anyway
32:07and with that being the case i may say
32:09something like i expect this in terms of
32:11targets right this was how i use it for
32:13stops
32:14i make sure that i'm at least one atr
32:17above the swing high or below the swing
32:19low if i'm shorting versus going long
32:22now
32:23for targets i may say i'm expecting the
32:25market to move
32:27two times the atr indicator so what's
32:29two times 67
32:30134 so now i can have a 134 pip target
32:36and again this would work better if
32:37there wasn't a level of structure in the
32:38way but for the purpose of the atr
32:40indicator just go with it and that sets
32:42me up with a 1.4 to 1 reward to risk
32:44ratio this is how one of the ways that i
32:47would use the atr
32:49in order to place stop losses another
32:51way you can do this is by simply this is
32:53a more simple way is by saying okay i
32:56want a stop loss that is two times the
32:58atr indicator from my entry so that
33:00would be 134 from entry right
33:05and in order to get a two to one reward
33:07to risk ratio i want to have a 4
33:10times atr indicator for my target 134
33:13times 4 is 268
33:15and that would be a 2 to 1 reward to
33:18risk ratio and that would be the way
33:20your trade setup looks at this point
33:22you're giving yourself room for your
33:24stop loss and you're accounting for the
33:25volatility of the market in terms of
33:27finding targets as well those are the
33:29two ways i like to use the atr indicator
33:32let's now move on to the next
33:34favorite indicator that i have the
33:35second
33:36most valuable in my opinion which is
33:39moving averages moving averages are
33:42exactly what they sound like it is the
33:44average movement of price over a certain
33:46period of time so the red line you see
33:47on the screen right now is the 20 period
33:50moving average what that means is that
33:51this indicator took the closing price
33:55of the last 20 candles
33:58and then divided that number by 20 in
34:00order to plot this line on the screen if
34:03this moving average was to be 50 periods
34:06or look back period or length whatever
34:08it's defined as in your trading platform
34:10it may be slightly different if it's 50
34:13though what does that mean
34:14that means that this indicator took the
34:16closing price
34:18of the last 50 candles divided that by
34:2250 and that's how you get this line on
34:24your screen right here now in order to
34:27plot this on the chart it should be
34:28self-explanatory but you just go up to
34:31indicators
34:32here on trading view it's very easy you
34:33type in moving average without that
34:37weird vocal tone and then you go down to
34:39moving average and just plot it on the
34:40chart now there are three main ways i
34:42use moving averages let's go ahead and
34:44dive into those right now the first way
34:46that i like to use moving averages
34:48is to help me define trends so earlier
34:51in the video we talked about candlestick
34:53charts and a defining trend with swing
34:55highs and lows
34:57as i said about indicators earlier
34:58though indicators are there
35:01to help you clarify what price is
35:03actually doing so a moving average is a
35:06great objective way to define trend the
35:08way you would do that is if price is
35:11trading above whatever period moving
35:13average you choose for short term trends
35:16the 20 works great
35:18if price is above the 20 then i am in
35:21an uptrend
35:24and i'll do an example on the screen now
35:25for if price is below the 20 then i am
35:28in a downtrend
35:30and that's the way we would use a moving
35:33average a single moving average to help
35:35us define trend and the way we would
35:37trade based around that is we only look
35:39for buy trades while price is moving and
35:41creating new highs and lows above the 20
35:44period moving average for this short
35:46term trend and highly volatile trend if
35:49it's staying above the 20 moving average
35:51then a really high volatility trend
35:52great time to trade breakouts which
35:54we're gonna discuss later on in the
35:56video but
35:58the next way i like to use moving
36:00averages is as an area of value as you
36:03can see on the chart here yes this is
36:04cherry picked and it will not work every
36:06single time i'm not saying
36:08buy every time the market hits the 20
36:10period moving average trust me i've done
36:12that and it sucks it does not work
36:14that's why let me just break off for a
36:16second here that's the reason that we
36:19have to have a combination of all of
36:20these technical factors in order to
36:22create a profitable edge over the market
36:24in a profitable system we can't just use
36:26one but let's get back to the video this
36:28can add confluence to a trade when
36:30you're using
36:31this area of value with combinations
36:34like the previous level of resistance
36:35that was broken and candlestick patterns
36:38right but as i digress the 20 period
36:42moving average can act as a great area
36:45of value in short term trends as you can
36:47see on the chart here when the market
36:48pulls back to that moving average we get
36:50a pop out of it pulls back gets a pop
36:52out of it pulls back gets a pop out of
36:54it now in terms of using moving averages
36:56for
36:58identifying areas of value there are
36:59only three i would use and that is the
37:0120 period moving average we have right
37:03here
37:04the 50 period moving
37:06average that we have right here as you
37:09can see support
37:10provided area value out of the market
37:12and i bet this is going to land
37:14somewhere near the 200 or this may let's
37:17let's try it and the 200 period moving
37:19average so those are the only three i
37:21would use damn i was close those are the
37:23only three i would use as areas of value
37:25as you can see the 200 also provides
37:28resistance and support as well the
37:30reason those three work the best is
37:31because those are the top three moving
37:33averages used by traders around the
37:35world so you might as well align with
37:37them if there's gonna be a bunch of
37:38traders taking longs off the 200 period
37:40moving average
37:42that's gonna push the price up right so
37:44that's how i like to use moving averages
37:46as areas of value again not by
37:48themselves don't just buy because the
37:50market hits a moving average i got to
37:52combine that with things like structure
37:54support and resistance and candlestick
37:56patterns and other technical factors
37:58trend and other indicators in order to
38:00create that profitable edge the third
38:03way to use a moving average in your
38:06trading or the third most useful way
38:08that i personally have found is to use a
38:10moving average as a trailing stop the
38:12way that would work is maybe you decided
38:15you want to place a reversal trade after
38:18you saw something like this the market
38:21broke above
38:22a previous resistance right our trend
38:24continuation trade that we've talked
38:25about we got our higher high higher high
38:28higher low higher high now we're pulling
38:30back into that resistance let's say you
38:32place a trade there so your entry would
38:35be
38:35right here
38:37boom you enter the market and at this
38:39point
38:40you have a stop loss one atr right below
38:44the lows so let's say here's your stop
38:46i'm gonna color that red
38:47what you would do with the third way is
38:50use the moving average as a trailing
38:52stop so if you were just going for a
38:54regular two to one you'd probably be out
38:56of your trade right up here and that's
38:59great you know you got your two to one
39:00reward risk awesome but if you would
39:02have used the 20 period moving average
39:04as a trailing stop you could have got a
39:06little bit more out of this trade taking
39:08profits up here closer to a three or
39:10four to one reward to risk ratio so in a
39:13trending market using a moving average
39:15as a trailing stop can be highly
39:18beneficial to capture more of that trend
39:20and essentially capture more targets out
39:23of that particular
39:25trade so those by far my favorite two
39:27indicators the other indicator that we
39:29are going to go over although i barely
39:31use it is the rsi indicator because i do
39:34think there's a place for it when trying
39:36to trade reversals only
39:39when combined with other factors like
39:41structure higher time frame trend all of
39:43things that we're going to go over later
39:45in the video but we are going to discuss
39:46the rsi indicator right now the rsi
39:49indicator is considered by most traders
39:51as a reversal indicator when in fact
39:53it's actually a momentum indicator it
39:55tells you when price has been moving in
39:58a certain direction for a long period of
40:01time this is why we don't just
40:03sell when the market goes over ball and
40:05buy when the market goes oversold let me
40:07digress one more time
40:08with the rsi indicator most traders
40:10think that when the market uh price is
40:13above 70
40:14that that means it's time to sell in
40:17order to look for that possible reversal
40:18and when the price is below 30 on the
40:21rsi that means it's time to buy for a
40:24big reversal to the upside while this
40:26may work out sometimes without
40:28combining this with other technical
40:30factors it is a losing strategy other
40:32technical factors including major levels
40:34of structure trend on higher time frames
40:36things of that nature but as i said
40:39there is a place for the rsi indicator
40:41i'm going to go over this very briefly
40:43because i know how long this video is
40:44going to be already
40:46the place i see
40:48the rsi indicator is
40:50if we're at a previous level of major
40:53structure resistance when this market
40:56goes
40:57into an overbought scenario and if we
41:01have something called rsi divergence
41:03where price is making higher highs and
41:06the rsi is making lower highs
41:08then we get a candlestick pattern like
41:11an engulfing pattern that
41:13is an area where i believe the rsi is
41:16extremely useful
41:19outside of using this indicator as a
41:22confluence with multiple other technical
41:24factors i don't see it being as useful
41:26as things like the atr indicator and the
41:28moving average indicator but i did want
41:30to throw this on the screen here and
41:32throw it in with this video because i
41:34think it can be useful when used
41:35properly when used with divergence and
41:37higher time frame structure levels and
41:39trend but with that said that is going
41:41to do it for indicators next up we're
41:43moving on to how we actually enter the
41:45market we're talking candlestick
41:47patterns chart patterns breakout
41:49patterns the real nitty gritty i'll see
41:51you guys there
41:55candlestick patterns are candlesticks
41:57that form in a very specific way in
42:00order to help us determine
42:02what price is likely to do next you may
42:05have heard of some of these before
42:06candlestick patterns like the engulfing
42:08pattern are very popular
42:10hammer and shooting star candles are
42:12extremely popular and there are tons of
42:15candlestick patterns out there feel free
42:17to go study all of them but it's
42:19unnecessary because what i'm going to do
42:20right now is give you my favorite three
42:23candlestick patterns that i use in my
42:25own personal trading but before we do
42:28that let's talk about how we use these
42:29candlestick patterns candlestick
42:31patterns can be used to help us spot
42:33reversals they can be used to help
42:35provide clarity on market sentiment and
42:37they can be used for entry reasons and
42:40trend continuation and reversal trades
42:43that's what i normally use them for and
42:45now let me show you the three
42:47candlesticks that i use most often the
42:50first one is called the 382 candle or
42:5338.2 percent candle and you're gonna
42:55understand why in a second you may be
42:56looking at these going
42:58man steven that looks like a hammer or a
43:00tweezer top and that looks a lot like a
43:02shooting star why are you calling it a
43:0438.2 candle because the name of the
43:07candlestick pattern does not matter let
43:10me explain the reason i call this a 38.2
43:12candle is because the role that i have
43:15for this pattern and what it shows us is
43:18that
43:19price or buyers the market itself
43:23meaning all of their participants
43:25have pushed this market all the way down
43:28to the bottom of this wick remember when
43:29we talked about candlestick charts at
43:31the very beginning of the video
43:33price moved all the way down to here but
43:36what happened after price moved down
43:37there
43:38buyers came in and took control pushing
43:42us all the way back up
43:44near the highs this is a huge bullish
43:47sign for me and a reason to expect
43:51bullish pressure afterwards in any
43:52particular market the reason it's called
43:54a 38.2 candle is because in order to
43:57objectively identify these candles the
44:00only thing i do to make this extremely
44:02simple and let me talk about the reason
44:04i do this first if you ask people what a
44:06hammer candlestick is or you show them a
44:08chart i'll put a chart on the screen and
44:10ask is this a hammer
44:12or is
44:14this a hammer candlestick you may get
44:15two different answers what i'm trying to
44:17say is that candlestick patterns unless
44:19you have rules for them are subjective
44:22and in order to have consistency in our
44:24trading we have to be objective so an
44:27objective rule i have for the 38.2
44:30candle is that i pull
44:32a fibonacci retracement from the swing
44:34low of the candle itself to the high
44:38of the candle itself as long as the
44:40entire body of that candle is above the
44:4338.2 retracement then i count this as a
44:46valid 38.2 percent candle and i count
44:49this as a candle that's showing me
44:51buying pressure you guessed it it's the
44:53exact opposite for
44:56a bearish version of this pattern a
44:58bearish version of the 38.2 candle what
45:00do you think i'm gonna do to identify
45:02this pattern in an objective way i'm
45:04taking a fibonacci retracement from the
45:07top of that candle the high
45:09down to the low and as long as
45:12the entire body of that candle
45:14is below the 38.2 retracement then i
45:18know that selling pressure is likely to
45:20come into the market again the way we
45:23use these types of candles is if this
45:26was to occur at the top of an uptrend it
45:28might be a sign of a reversal if this
45:30was to occur in a downtrend on our
45:33pullback it might be a sign that we're
45:35about to continue in trend we're going
45:36to talk about that on a live chart after
45:38i go through the other two candlestick
45:40patterns so next after the 38.2 candle
45:44we have the engulfing candle this is a
45:46candle you've probably heard of and you
45:47may already know how to identify but in
45:49the forex market the way i identify an
45:52engulfing candle is a candle that has a
45:56larger body than the previous candle and
45:58that changes colors so for a bullish
46:01engulfing pattern i need to see that the
46:03previous candle was red that the next
46:05candle is green and that the green
46:07candle has a larger body
46:10than the previous candle that is a
46:12bullish engulfing candle for me we'll
46:14take a look at a bearish engulfing on a
46:16chart so i'm not going to have to do
46:17that right here so
46:19next up we have the close above and
46:22close below candle again all these
46:24candles are used in the same way they're
46:26all either going to be used to help you
46:28identify reversals market sentiment or
46:31help you
46:32enter on trend continuation trades here
46:34we have close above and close below
46:36candle pretty self-explanatory but a
46:38close below candle would be a candle in
46:41which the close
46:43of that candle is below the low
46:46of the previous candle as long as that
46:49happens that to me is showing selling
46:52pressure and the opposite would be true
46:54in the bullish direction we would have
46:55it close above again we'll take a look
46:57at that down on the chart but right now
46:59let's go take a look at a few live
47:01examples of the 38.2 candle first so
47:04here we have a good example of a 382
47:07candle or 38.2 percent candle and what i
47:09want to do is explain to you how all of
47:12these things are already coming together
47:13and we haven't even hit the end of the
47:14video yet what have we learned about
47:16trend trend is when the market is making
47:20new higher lows and higher highs what
47:24have we learned about indicators when
47:25the market's above the 20 period moving
47:27average we are in a highly volatile up
47:30trend what have we learned about support
47:32and resistance the previous level of
47:34resistance
47:36is likely to become support right
47:38now with all of that in mind what did we
47:41just learn
47:42a specific candlestick formation called
47:45the 38.2
47:47candle look right here does this candle
47:49have a long wick let's talk about the
47:51psychology behind it really really
47:53quickly the candle opened here
47:56sellers pushed it all the way down to
47:57the bottom of the wick but buyers took
47:59back over as soon as they happened as
48:01soon as that happened as soon as the
48:03sellers said we're pushing this market
48:04down buyer said hell nah we're pushing
48:07it back up and they did we close up here
48:10closer to the highs this happened while
48:13in an uptrend and
48:15at our area of value being this previous
48:18resistance level now
48:20let's make sure this is a 38.2 percent
48:22candle we have to use a fibonacci
48:24retracement we're pulling it from the
48:26low of the candle
48:27to the high of the candle
48:29and once we do that is this candle the
48:32entire body of it above the 38.2
48:36retracement it is therefore objectively
48:39we have a reason to enter this market
48:41that's what i was talking about when i
48:42said these can be used for entries into
48:47a long-term trend so in this case we
48:49have a long-term uptrend we have a
48:51market at an area of value and we get
48:53our specific entry reason showing us
48:55buying pressure now again we're
48:56combining everything so let's put on our
48:59position tool what if we say okay one
49:02atr how do we play stops with the
49:04volatility of the market that we're
49:06trading right now in the aussie canada
49:08daily chart the atr or average true
49:10range is 66. so let's go down to our
49:14swing low to our swing low is right at
49:1647 pips that plus 66 is 113 pips so we
49:21have a 113 pip stop loss on this
49:23specific trade and let's say we want to
49:26use two times that atr as our target 66
49:30times 2 is 132. so move that up to 132
49:35and we now have our trade setup let's
49:38click play and see what happened
49:40boom hit targets no problem for about a
49:421.2 to 1 reward to risk ratio i wanted
49:45to do that entire scenario just to show
49:47you how everything is coming together if
49:49you liked that
49:51then make sure to go ahead and smash
49:53that like button you've been watching
49:54this bad boy for like 45 minutes now i
49:56know you've gotten at least some value
49:58out of it so go ahead and click that
50:00like button for me go ahead and comment
50:01as well if you're still here because
50:02that is amazing all right so that is our
50:05382 candlestick pattern let's talk about
50:08how we can use it for reversals and just
50:10to show you that it doesn't always work
50:12i have no idea i've not looked at this
50:14data yet this might work as a reversal
50:16and it may not but right here what do we
50:18have
50:20we have a 382 candle at the top
50:23of an uptrend if this market happened to
50:25be overbought on the rsi check it out it
50:28is
50:29combining other technical factors
50:30looking left for resistance we're not
50:32quite at a level of resistance right now
50:33but this would be an example of the 382
50:36candle and why would it be an example of
50:37that candle because if i pull a
50:39fibonacci retracement from the top of
50:41this candle down to the low of this
50:44candle
50:45is the entire body below the 38.2
50:47retracement yes this is showing a
50:49selling pressure in the same way we
50:51would just set our stop loss one atr
50:53above this candle here and then have a
50:56target somewhere near these levels of
50:57support may not work out or then again
51:00if we had our targets down at this level
51:02of support then it would have worked out
51:04we would have hit those targets right
51:06here so this is how we can use the 38.2
51:09percent candle to help us with entries
51:12on
51:13trend continuation trades and to help us
51:15identify possible reversals let's take a
51:18look at a couple of live examples of the
51:20engulfing candle as well as the clothes
51:22above close below candle but essentially
51:24they all have the same use they're all
51:26going to be used either to spot
51:27reversals or as possible entries and
51:30trend continuation trades to ride the
51:32trend up even further let's go ahead and
51:34look at the engulfing candle on live
51:35charts right now while we were on the
51:37whiteboard we looked at a bullish
51:39example of the engulfing candle so here
51:41we're going to look at a bearish example
51:42and again i want to i want you to see
51:44the things that are coming together on
51:45this trade it is a winning trade yes
51:47it's cherry picked but it has a very
51:50good merit behind it because of the fact
51:52that let's do this one more time what
51:54kind of trend are we in
51:55right now
51:56well according to the 20 period moving
51:58average we're definitely in a downtrend
52:00price is below it are we making new lows
52:02and new lower highs below the 20 period
52:04moving average yes we are here's our
52:06last low new lower low here's our last
52:08high lower high this could be our next
52:10lower high we are at what
52:13the 20 period moving average is that an
52:15area of value or possible area of
52:18resistance yes it is all of those coming
52:21together and then
52:23the entry pattern we can try to use in
52:24trend continuation type trades is what
52:27this engulfing candle as you can see
52:29here an engulfing candle as i explained
52:32earlier is just a candle in the forex
52:34market at least whose body is larger
52:37than the previous candle and i need a
52:38color change green to red that's a color
52:41change is the red body
52:43larger than the green body it is
52:44therefore we have a valid bearish
52:46engulfing candle here for possible entry
52:49into this trend continuation setup
52:52pushing the market further down and
52:54showing us selling pressure next up
52:57we're gonna take a look at the example
52:58of the clothes above candle let's take a
53:00look at that now
53:02here is a good example of a close below
53:03candle this big red candle what happens
53:06here we close below the low of the
53:09previous candle and we do so the wear is
53:12very important like i said you want to
53:14do it in areas of value right we don't
53:16want to just trade random clothes above
53:18and close below candles that's not a
53:20profitable strategy we have to combine a
53:22number of technical factors in order to
53:24create a profitable strategy so in this
53:27case what we have is the top
53:29of an uptrend this market's been heading
53:31higher what you can't see yet we know
53:33this is a valid close below right you
53:35understand that i hope that a close
53:37below is nothing more than a candle that
53:39closes below the low of the previous
53:40candle the opposite's true for a close
53:42above but i want to show you how
53:44everything comes together yet again
53:46because this happening in the middle of
53:48nowhere like it did right here is
53:50irrelevant i'm not trading this just
53:53because we have a close below candle no
53:55i want to trade these in
53:58areas of values such as previous
54:02levels of resistance as you can see my
54:04green or not green sorry my gray box
54:07here is showing that this was a level of
54:09previous resistance that pushed the
54:11market around a ton now that we're back
54:14to this level i have an area of value
54:17this is another good example of how to
54:18use the rsi indicator here we have
54:22a overbought situation
54:24and what do we have we have higher highs
54:26on price but what's the rsi doing if you
54:29remember from the indicators portion of
54:31the lesson what we were talking about in
54:33terms of divergence is higher highs on
54:34price and lower highs on the
54:37is that what we get here yes it is so
54:39with all of these factors coming
54:40together it's a pretty good opportunity
54:42to try to use our close below candle as
54:45an entry on this trade doing so would
54:48look something like this
54:50we have an entry at the close of that
54:51candle the atr is 77 so we have 98 plus
54:5577 we're going to go 177 to make this
54:58easy math 177 for our stop loss
55:03we're going to put a target down at the
55:05previous level of support which is right
55:08here
55:09and we're going to click play to see
55:11what happens here on this specific trade
55:13as you can see the market pushes down
55:16now here's a good reason why we use that
55:18atr for our stop loss if we used a 10
55:21pip stop
55:22above our swing high do you see how
55:24easily we would have been stopped out by
55:26this wick instead we used the atr
55:29indicator combining all of our good
55:31technical factors to help us have a
55:34positive trade here so with that said
55:37that's going to do it for the
55:38candlestick patterns portion and next up
55:40something i like even more than
55:42candlestick patterns and that is
55:44chart patterns so stick around i'll show
55:46you my favorites and how i use them in
55:48the market to help you better understand
55:51the entirety of technical analysis even
55:53more so than you already do i'll see you
55:56in just a second
56:00unlike candlestick patterns that form
56:02with between one to maybe a few candles
56:06a chart pattern is going to form with
56:07between 10 to maybe 50 candles and what
56:11they are are identifiable patterns that
56:13like candlestick patterns can give us an
56:15indication of possible reversals can
56:18give us an indication of market
56:20sentiment and can help us identify
56:23possible entries in the market
56:25chart patterns are by far my favorite
56:28way to enter trades and luckily
56:31even though there are hundreds of chart
56:33patterns and feel free to go study as
56:34many of them as you would like to find
56:36the ones that fit your trading style
56:38best i personally
56:40use one type of chart pattern more often
56:43than any others and for the most part
56:45only utilize this one chart pattern in
56:47my own trading and they are double
56:49bottoms and double tops i said they're
56:51one i know that's two but they're
56:53essentially the same thing just flipped
56:55upside down so before we go through the
56:57way i utilize double bottoms and double
56:59tops in my trading we need objective
57:01rules for this the same way we had
57:03objective rules for candlestick patterns
57:05we have to have objective rules for
57:07chart patterns as well so these double
57:09tops and double bottoms are going to
57:11have objective rules and that's what
57:13we're gonna discuss right now is the
57:14objective rules for these patterns for a
57:16double bottom that's what we're looking
57:18at right now here on the euro yen for
57:21this pattern what i'm looking for and
57:23the way it looks on a chart sorry i
57:25didn't do that before the way it looks
57:26on a chart is a market that comes down
57:28creates a level of support
57:30then bounces up to a level of resistance
57:33but instead of continuing down in this
57:36downtrend we come down we re-test this
57:39level of support
57:40and we're supported yet again so much so
57:43that we push up enough to
57:45break and close above what is called the
57:48neckline so this is bottom number one of
57:51a double bottom bottom number two of a
57:52double bottom this is referred to as the
57:55neckline and that is the
57:57initial pullback from the first bottom
58:00that we need to break in order to
58:02classify this as an actual double bottom
58:05so a way that most traders enter this is
58:08either by
58:09entering exactly
58:10as the market breaks that neckline or
58:14one of my favorite ways to enter and the
58:15way we're going to talk about and
58:16discuss entering today is waiting for
58:19the market to break and close above that
58:21neckline and then getting a pull back
58:24into that neckline the reason i trade
58:26double bottoms like this is because i
58:27can get smaller stops therefore having a
58:29larger reward to risk ratio on these
58:32types of trades so that is how we spot
58:34double bottoms let's go over how we spot
58:37double tops first and then i'm gonna
58:39talk about how i actually use these
58:41patterns to consistently make badass
58:44trades in my own trading let's check out
58:46a double top though so a double top
58:48is going to be when the market pushes up
58:51to a level of resistance
58:54then pushes down in our initial pullback
58:56but instead of continuing this uptrend
58:58we now test that level of resistance
59:00once more and find resistance yet again
59:03the market then
59:05breaks through
59:06the neckline so on a double top we have
59:09top number one right here we have top
59:11number two right here and the support
59:14level that was created after top number
59:16one is known as our neck line we need
59:20that neckline to break to validate that
59:23this is actually a double top and the
59:25way i said we're going to be trading
59:26these today is by waiting on a pullback
59:28after that validation after that break
59:31we want to see a pull back
59:33into
59:34our level of support and that's where
59:36we're going to be placing possible
59:38trades and looking for the continuation
59:40down now before we get into how i use it
59:42i know i said we're going to right after
59:43this i want to talk about those
59:45objective rules so the objective rules i
59:47have for a double bottom let's actually
59:49start there
59:50is
59:51i need to see
59:53the first bottom
59:55and the pullback at the point that i see
59:58this first bottom
01:00:00and a pullback what i do is place a box
01:00:04my box
01:00:05is going to be let me make this way way
01:00:08more easy hold on here we go okay so at
01:00:10this point it doesn't look like a double
01:00:12bottom right but i need an objective
01:00:13rule for how i'm going to enter a double
01:00:15bottom so what i do
01:00:16at this point whenever i see a bounce
01:00:18like this is i place a box
01:00:20from
01:00:21the lowest bodies of this first low to
01:00:24the lowest low of this first low that is
01:00:27what i call my termination point what i
01:00:29want to see is the market re-test this
01:00:32point
01:00:33a candle can close inside of this area
01:00:36a wick can go past this area we could
01:00:39see
01:00:40nothing but the wick of a candle touch
01:00:43this area all of that i would consider a
01:00:45valid double bottom what i would not
01:00:47consider a valid double bottom is if we
01:00:50get a candle but the wick doesn't touch
01:00:53my area or if we get a pullback and we
01:00:56see a candle that closes all the way
01:00:58below my zone those two situations are
01:01:01no longer a valid double bottom for me
01:01:04so those are my objective rules for a
01:01:06double bottom we'll click play here and
01:01:08see what the market does as you can see
01:01:10we've now entered into my termination
01:01:12zone we have not closed below it
01:01:13therefore we have a valid double bottom
01:01:16so far still is this valid yes
01:01:19no candles closed below my zone
01:01:21therefore i'm still in considering this
01:01:24a valid double bottom the next thing i
01:01:26need to see is a break of this neckline
01:01:29once i see that like we do right there
01:01:32i'm then waiting
01:01:33for this market to pull back to that
01:01:36neckline to place my possible entry once
01:01:39we do that
01:01:41and pull back to the neckline i want to
01:01:43see buying pressure for me buying
01:01:45pressure is nothing more
01:01:47than a green candle
01:01:49once i see buying pressure here's i'm
01:01:50just explaining to you exactly how i
01:01:52trade these double bottoms or exactly
01:01:54how a lot of people trade them i trade
01:01:56them slightly differently but for the
01:01:57purpose of this video this is what we're
01:01:59going to talk about so
01:02:00i would place an entry there we have a
01:02:0217 pip
01:02:03atr right now so 17 plus 30 is 47
01:02:0847 pips and i want to target my next
01:02:11level of resistance which is right up
01:02:13here in this area so at this point we
01:02:16have our trade setup we've had buying
01:02:18pressure after a double bottom has been
01:02:20confirmed by the breakout and a pullback
01:02:23to the neckline plus buying pressure
01:02:25okay cool we're in the trade let's see
01:02:27what happens
01:02:30eventually pushing up down up down this
01:02:34is the reality of trading guys you will
01:02:35be
01:02:37tortured emotionally during situations
01:02:39like this but it's just what happens
01:02:41sometimes while we're trading and there
01:02:43we go
01:02:44finally hitting
01:02:46targets you have to have emotional
01:02:47fortitude that's something unfortunately
01:02:49we're not gonna have time to discuss in
01:02:50this video because it is going to be
01:02:52well over an hour long i already know
01:02:53that but
01:02:54that is how i would trade the double
01:02:56bottom the double top would be the exact
01:02:59opposite of that we'll go over that
01:03:00really quickly you should have a pretty
01:03:01good idea by now but here on the double
01:03:03top the only difference is i am putting
01:03:06a box
01:03:07let's actually does it sound like i'm
01:03:09saying pudding
01:03:10it does to me let's put a
01:03:13box right there so now what i'm waiting
01:03:15for for a double top is the market to
01:03:17push up into an area of resistance and
01:03:19have a pullback once i have that
01:03:21pullback i'm placing a box from the
01:03:24highest bodies of the first top to the
01:03:27highest wick of the first top this is
01:03:30what i call my terminations on i want to
01:03:32see a candle that at least touches that
01:03:34zone but what i cannot see is a candle
01:03:36that closes above this zone a candle can
01:03:39close inside of the zone a wick can go
01:03:42past the zone the only thing i cannot
01:03:43see is either a candle not touching it
01:03:45at all or a candle closing above it so
01:03:47with that said click play you already
01:03:49know what this turns out like yes we
01:03:51have a valid double top and yes we broke
01:03:52the neckline the way i would trade this
01:03:54is by waiting on selling pressure at the
01:03:57neckline as the market pulls back up
01:04:00clicking play yet again
01:04:02selling pressure would be this red
01:04:03candle
01:04:04stop loss at that point would only need
01:04:05to go above our swing high and then we
01:04:07could target whatever we needed to
01:04:09pushing lower
01:04:11and that my friends is how i use the
01:04:14double top and double bottom strategy so
01:04:16now
01:04:17you have the rules based approach i take
01:04:19to spot these patterns the way i enter
01:04:21them is with buying pressure at the
01:04:23neckline after the break
01:04:25the other thing you need to know about
01:04:26these patterns is they work best
01:04:28whenever you're aligning yourself with
01:04:29higher time frame trends so let's say
01:04:32you're trading these patterns on an
01:04:34hourly chart if you're trading a double
01:04:36bottom on the hourly chart and what i
01:04:38mean by that is you actually see the
01:04:39double bottom itself on an hourly chart
01:04:42you want to make sure that the daily
01:04:44chart is in an uptrend so that way you
01:04:46are aligned with a daily chart uptrend
01:04:49while trading a double bottom on a one
01:04:51hour chart the opposite is true for a
01:04:54downtrend and a double top if you're
01:04:56trading a double top on let's say the
01:04:58one hour chart you want to make sure
01:05:00that you are aligned with the daily
01:05:03chart trend you want to make sure the
01:05:04daily chart is actually in a downtrend
01:05:06while you're trading that double top on
01:05:09a lower time frame this is going to add
01:05:10an amazing amount of accuracy to your
01:05:13double top and double bottoms trade
01:05:15double bottom trades it'll also add
01:05:16accuracy to any other chart patterns
01:05:18that you decide you want to add to your
01:05:20trading arsenal
01:05:22so that's gonna do it for the chart
01:05:24patterns portion of this lesson next up
01:05:27we got breakout patterns so we're gonna
01:05:29go ahead take a look at some breakout
01:05:30patterns and how i like to use them in
01:05:32my own trading to make the best trading
01:05:34decisions possible
01:05:36i'll see you there
01:05:40breakout patterns are when the market
01:05:42goes from a low period of volatility to
01:05:45a much higher period of volatility we
01:05:47see that a lot on uptrends and
01:05:50downtrends what we see is impulsive
01:05:51moves the market makes a large move to
01:05:54the upside and then we see a small
01:05:55period of consolidation before the next
01:05:57large move to the upside we call these
01:05:59flag patterns we're going to talk about
01:06:00those in just a second we also see this
01:06:03in the form of what i trade and call and
01:06:06what is called i guess you could say
01:06:07ascending and descending wedges what
01:06:09this means an ascending wedge is when
01:06:12price has a level of resistance that it
01:06:14cannot get above but as it's testing
01:06:17that level of resistance the support
01:06:19level is rising so that means that
01:06:22buyers are coming in sooner and sooner
01:06:24at higher and higher prices until
01:06:26eventually that pattern breaks out to
01:06:27the upside and a descending wedge is the
01:06:29opposite we have a level of support we
01:06:31have lower highs coming in showing that
01:06:34sellers are stepping in sooner and
01:06:36sooner at lower and lower prices and
01:06:38eventually
01:06:39that breakout level gives way to what we
01:06:42call an ascending and descending wedge
01:06:45breakout pattern those are the two
01:06:46breakout patterns i personally use the
01:06:48most there are many more breakout
01:06:50patterns that you are free like
01:06:52everything else in this video to go
01:06:53study on your own but i want to talk
01:06:55about the ones i'm actually familiar
01:06:56with and the ones that i personally use
01:06:58so let's take a look first off
01:07:01at flag patterns let's talk first how do
01:07:03we use flag patterns we now know what
01:07:04flag patterns are how do you use them
01:07:07well i use them to capitalize on
01:07:10volatile trends what did we talk about
01:07:12earlier a volatile trend
01:07:15oftentimes stays above the 20-period
01:07:17moving average as you can see on the
01:07:18chart here we have price staying above
01:07:20the 20-period moving average so the way
01:07:23i like to use
01:07:24a flag pattern is if we are staying
01:07:27above the 20-period moving average and
01:07:29we've just had an impulsive move to the
01:07:32upside then i want to draw out a flag
01:07:35pattern on my period of consolidation
01:07:38after that period of consolidation we
01:07:40get what is known as a breakout candle
01:07:42this breakout candle breaks the top
01:07:44trend line of that period of
01:07:46consolidation and this is when most
01:07:47traders decide to enter on a flag
01:07:50pattern trade i'm going to give you some
01:07:52specific rules in just a second but
01:07:53let's take a look at one more example we
01:07:55have another situation here where the
01:07:57market's continuing in trend we make an
01:07:59impulsive move that breaks above
01:08:01previous resistance we then see this
01:08:03market have a period of consolidation
01:08:07this pullback that as you can see looks
01:08:10like a flag right we have the poll which
01:08:12is normally the amount of price the
01:08:14impulsive leg before the period of
01:08:16consolidation we have a small period of
01:08:18consolidation then we have our breakout
01:08:20candle and the market continues in that
01:08:23uptrend this happens time and time again
01:08:25in volatile trends and that's how we can
01:08:27take advantage of flag patterns and
01:08:30volatile trends now
01:08:32just as with everything in our trading
01:08:34we need to have some objective rules
01:08:35here so for me one of the best objective
01:08:38rules i have found when trading flag
01:08:41patterns is that i want to only trade
01:08:44these patterns
01:08:45when they happen
01:08:46above
01:08:48or near
01:08:49the 20 period moving average that's the
01:08:52only time i can actually place trades
01:08:54based on flag patterns because the 20
01:08:56period moving average acts as my filter
01:08:59for highly volatile trends and i only
01:09:01want to take flag pattern breakout
01:09:03trades if the trend is highly volatile
01:09:06because that's my best chances of having
01:09:08a move higher and for stops and targets
01:09:11we'll go and discuss those you should
01:09:13have a pretty good idea where do you
01:09:14think i would put stops and targets if
01:09:16my entry candle is this breakout candle
01:09:18right here what do you think i would do
01:09:20for stops
01:09:21i would have my stop loss below the
01:09:24previous low by what
01:09:27one atr as we discussed earlier so let's
01:09:29go ahead and set this trade up it would
01:09:31look something like this
01:09:33and a target up here at the previous
01:09:36level of resistance right here so at
01:09:40this point you know exactly how i trade
01:09:42bullish flags this video has gotten well
01:09:45over an hour long so i'm not going to do
01:09:46an example of a bearish version of this
01:09:49just flip it upside down it's literally
01:09:51the same exact thing in the opposite
01:09:53direction in terms of a bearish flag
01:09:56pattern we'd be waiting on the market to
01:09:57head down with an impulsive move head
01:09:59down with an impulsive move we would be
01:10:00trading this small period of
01:10:02consolidation on a breakout
01:10:05of that period of consolidation to the
01:10:07downside we'd be selling or going short
01:10:10so that is
01:10:11again how i trade flag patterns let's
01:10:14take a look now at another breakout
01:10:16pattern that i really enjoy using which
01:10:18is the ascending and descending wedge
01:10:22here is an ascending wedge and unlike
01:10:24flag patterns that take just a few
01:10:26candles to set up these types of
01:10:28patterns normally take anywhere between
01:10:3020 and 50 maybe even 100 candles to
01:10:33actually set up their larger patterns
01:10:35but essentially what we're looking for
01:10:37with a wedge pattern is a level of
01:10:39resistance
01:10:40that the market is having trouble
01:10:42getting past but at the same time we're
01:10:45having trouble getting past this level
01:10:47of resistance we want to see sellers
01:10:49stepping in at higher prices what this
01:10:52is showing us is that excuse me i said
01:10:54sellers i've met buyers we don't see
01:10:56buyers stepping in at higher prices what
01:10:58this is showing us is that buyers are
01:11:00more and more interested in this
01:11:02currency pair stock crypto whatever it
01:11:04may be they're more interested in higher
01:11:07prices and as we continue to make these
01:11:09higher lows the not inevitable but
01:11:12likely scenario is that eventually we
01:11:15bust through this level of resistance
01:11:17because sellers eventually give up
01:11:20trying to push the market down from this
01:11:24level of resistance as their pushes down
01:11:26gets smaller and smaller and we get
01:11:28higher and higher lows they eventually
01:11:30give up and when they do it looks
01:11:32something like this we get a breakout of
01:11:36that level now one of my favorite ways
01:11:38to trade this is on the pullback almost
01:11:40like the double top and double bottom we
01:11:42were looking at earlier but a lot of
01:11:44traders trade on the breakout candle
01:11:46that we can see right here the way i
01:11:49like to trade them is after this
01:11:50breakout i like to wait for a pullback
01:11:53back into my zone
01:11:55of resistance when i get that pullback i
01:11:57look for buying pressure what do i
01:11:59define as buying pressure a green candle
01:12:01so once i pull back to that zone and get
01:12:03a green candle that is when i
01:12:06personally we'll enter the trade so now
01:12:08we have a pull back into the zone
01:12:10waiting for a green candle boom
01:12:12personally i would be entering into the
01:12:13trade here we'll go ahead and do the
01:12:15trade setup we've had all of our rules
01:12:17met for an ascending wedge we have a
01:12:19level of resistance that is acted as
01:12:21resistance multiple times we have rising
01:12:24support levels coming into that level of
01:12:26resistance we now have a breakout of
01:12:29that level and a pullback to
01:12:31that level of resistance at this point
01:12:34yet again whenever i find buying
01:12:35pressure here that is when i want to
01:12:37place a trade because of the fact that i
01:12:40waited for the pullback i can now have a
01:12:41much smaller stop loss based on this
01:12:44previous swing low
01:12:46so i have an atr of 36 pips on my entry
01:12:49candle i want to be 36 below
01:12:52my swing low so 39 let's go 40 plus 36
01:12:56is 76 pips
01:12:5876 pips would be about right here
01:13:01with that being the case where is my
01:13:02target going to go if i
01:13:04place targets based on structure the
01:13:06next level that looks to be
01:13:09a major level of structure support or
01:13:11resistance is right there so let's see
01:13:14what that would look like do i get more
01:13:16than a one to one reward risk i get
01:13:17about a one-to-one reward to risk ratio
01:13:19maybe move stops at break even when the
01:13:21market hits that price right and then
01:13:23continue with the position let's see
01:13:24what happens
01:13:25we push up
01:13:27we push back down stopped out for break
01:13:28even or
01:13:29we watch the market continue and
01:13:31eventually push higher but that
01:13:34regardless of how that trade worked out
01:13:35is how i would be trading ascending
01:13:38wedges and the exact opposite is true
01:13:41again this video is getting very long so
01:13:43just flip that over what we're looking
01:13:45for for a
01:13:47bearish version a descending triangle is
01:13:49nothing more than a level of support
01:13:51that's hit multiple times while we have
01:13:53falling resistance levels or falling
01:13:56swing highs falling swing highs plus the
01:13:58same level of support is going to give
01:14:00us a descending triangle descending
01:14:03triangles once broken to the downside
01:14:06are likely to continue in that direction
01:14:08personally i wait on this pullback to
01:14:10come back into that level sometimes it
01:14:12doesn't happen and i miss out on some
01:14:14trades but it gives me a better reward
01:14:16to risk setup so i like to wait on that
01:14:18pullback in terms of getting a better
01:14:20reward to risk on these trades so
01:14:24i would love to be able to tell you that
01:14:28this is all you need and now you can go
01:14:30out there and trade and make money quit
01:14:33your day job and you'll be good to go
01:14:34from here on out
01:14:36unfortunately
01:14:37that is not the case unfortunately
01:14:40just understanding technical analysis
01:14:42isn't enough although in this video i
01:14:44did share everything you need to know
01:14:46about technical analysis i did not and
01:14:49was not able to in one video share
01:14:52everything you need in order to be a
01:14:53consistently profitable trader but
01:14:56luckily we do have some space available
01:14:59in our mentorship program so if you
01:15:02would like to learn
01:15:03the exact combination of technical
01:15:05factors i use that i call a strategy the
01:15:07exact strategies that i use every single
01:15:09day in the market if you would like
01:15:10mentorship from me personally with any
01:15:13questions you have about the course that
01:15:15we have that we offer or about forex in
01:15:17general if you would like to receive a
01:15:19video every single week of the trade
01:15:21setups that i'm looking to take
01:15:23throughout that week along with much
01:15:25much more including an entire course
01:15:28that goes over the other two huge
01:15:30aspects of trading outside of technical
01:15:32analysis which are trading psychology
01:15:34and risk management if you want access
01:15:37to all of that and you want to speed up
01:15:38your journey to becoming a consistently
01:15:40profitable trader then there's a link
01:15:43below to a very discounted price on the
01:15:46eap training program we're actually
01:15:47running the black friday sale again and
01:15:50the reason is because well mostly i'm
01:15:52just too lazy to create a new sales page
01:15:54and i want to give you a discount for
01:15:55watching this entire over an hour long
01:15:58video so if you're interested in that
01:15:59you get everything that i've ever made
01:16:01in terms of paid content for 697
01:16:05or for like three payments of 297 if you
01:16:08can't afford the whole 697 we do have a
01:16:10payment option you can learn all about
01:16:12the program what it includes and how you
01:16:15can get access to it by clicking the
01:16:16link in the description labeled eap
01:16:18training program if not that is totally
01:16:20fine too you now have everything you
01:16:22need to know about technical analysis
01:16:24combine some of these technical factors
01:16:26to create your own strategy take that
01:16:28strategy back test it create risk
01:16:30management plan around it and
01:16:32work on your trading psychology demo
01:16:34trade for a while so that you get
01:16:35confident and consistent
01:16:37probably you need to look up some videos
01:16:39on this if i was you i would literally
01:16:40go
01:16:41on youtube look up risk management if
01:16:43you only know technical analysis now and
01:16:44you're a complete beginner go on youtube
01:16:46look up risk management look up trading
01:16:48psychology try to implement those into
01:16:50all everything that you've already
01:16:51learned then create a strategy out of
01:16:53everything you've already learned by
01:16:54combining a bunch of these technical
01:16:56factors and try demo trading that for a
01:16:58while to see if you can actually create
01:17:01a profitable three months with a
01:17:03rules-based strategy if you can hats off
01:17:06to you you're doing better than 95 of
01:17:07traders and then you can choose when you
01:17:09would like to take your trading live as
01:17:12i said we do have the eap training
01:17:13program at a major discount right now
01:17:15check that out if you want some more
01:17:17advanced training and some more help
01:17:18with your trading personally from me if
01:17:21not totally fine too make sure you click
01:17:23that like button make sure you're
01:17:24subscribed i am so tired
01:17:27right now because i've been doing this
01:17:28video for like eight and a half hours
01:17:30that i am out
01:17:31and i'll see you guys in the next video
01:17:33talk soon
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