Global TA {4} Advanced Indicators, Patterns & Trading Tools (Technical Analysis Charting Tutorial)

welcome back to global ta today we're going to dig deep into some indicators and some trends how to use these and amalgamate these to better improve your trading strategies really help you in the beginning with paper trading so you can identify these trends you can back test these things i'll be showing you exactly how to use these indicators right off the bat one thing you need to know is how you do this right so like i said in through all these episodes of the course which by the way if you haven't watched the previous ones go back watch those there's a playlist on the channel called global ta it's linked down below in the description you can watch all of the previous episodes typically we do one every sunday so let's hop right into it so for indicators what you want to see is right here it'll have that fx so if you're on mobile it'll it'll be on this side right so it'll be on this side or depending on your layout it could be down here but what you want to look for here is fx indicators right so you can also click here and these would be your favorite indicator so if you're if you're just starting a completely clean slate you will not have any favorites so some that you can start out with which i i recommend you potentially use in back test again what we're looking for here right what we want to talk about is beginning with the end in mind so there's no reason to just buy some fancy tool at the tool shop if you're never going to use the tool or if you don't know what it actually does right if you're just going to frame it on your wall and go hey look you know i have this uh this beautiful drill or this beautiful saw but i have no idea how to use it well it's same with indicators you can talk all about how you love the ema or you love the ssl or you love volume which volume is kind of a basic one we'll get rid of volume here for a second volume just shows you the i'm assuming you guys know what volume is if you made it this far in into the channel but it just kind of shows the volatility right so like the the total um trading amount in the day so if we see a volume confirmed breakout for example that's something that really helps us because it's adding uh multiple areas of confluence so one other thing is when you look these up so for example uh one that we do not have on here that i would like to add is rsi so rsi is one of the ones we'll be talking about which is the relative strength index and if you want to put this on the uh on the chart which you would do just click it right here right so the problem is and this one thing you'll realize with trading view is they have offer free service now the paid service is okay i don't even i mean you can get it if you want but you can get away with uh using the free service very easily because the key thing here is to really only use about three tools think about it like back to the tool belt analogy you know you don't want to have all these fancy tools in your tool belt and they're just dragging you down rather you want to have the ones you can perform the best with right so we're combining indicators with patterns so remember in the previous global ta we talked about kind of basic patterns we let's go over those real quick right so we have triangles so we have uh let's just say a ascending triangle so this was an ascending triangle would look like right so in a setting triangle price would essentially consolidate within here and then typically an ascending triangle might bust down right and in the bus down is the measurement breakout from here so you would take that that length and put it over there right okay so besides that we have symmetrical and descending triangles and uh let's see do we have a good example of this probably do somewhere by the way this is just on the gold chart and this is just an example of uh you know how you can use all these different indicators yeah there's a decent example of one okay so uh let's go here boom boom here to here right okay so this is you could say it's not the cleanest symmetrical triangle but you see what i'm saying right so the measurement price target breakout is right here so again you would measure this and you would look for a breakout now the main thing here is this is just using one tool in the toolbox right this is just using one trading pattern that's what i will really want you to understand is so you i mean you would set up a long position there so that's how you would do a trade setup in later episodes i'll talk a lot more about actually how to use the exchange we've mainly been focusing purely on technical analysis but when it comes to trading it's like you you have to identify these trends here on the charts but then you take them over to the exchange and that's where you actually do the trading whether it's finance whether it's by bit whether it's femex whatever you use um this is how you would set it up you would look at your entry position down here put that into the exchange look at the target area right there put that in exchange and take profit look at the stop loss put that in exchange set that there so now that we understand that basically like uh and then obviously you have descending triangles you have descending wedges rising wedges descending channels rising channels both flags bear flags go check out that previous video on this and uh so right here what pattern are we in right so we're in a descending wedge so price is just kind of moving a bit sideways and downwards right so that's really what's happening we're seeing a lower lows and lower highs so that's essentially the trend but we did a bit of a w down here right so apologies we we did a bit of a w which for a double you want to see a higher low and then a move up from there okay so that was a good w by the way a lot of people get wrecked with w's and get kind of destroyed um near the end of this video i'll talk a little bit more about how to use some a little bit more advanced patterns but the main thing i want to focus on in the beginning of this video is indicators so right so we just went over recapped these patterns so these basic patterns you can use and we're using one right now so we're using a descending wedge but what we don't have is confluence and again with confluence what you're looking for is okay first off you should draw you should understand the very very basics of technical analysis go watch the beginning videos in this course then you go okay support and resistance let's lay out basic support and resistance lines for example this would be i mean this isn't a super historic one but we can just use this as a level right here that we kind of bounced off of right so we kind of bounced off of this level and pushed up here is another example of one where we have kind of that that top right there where we experience a bit of resistance there bounce down from there bounce down from there hard this is a level of confluence so you're using this trend of the descending wedge in partnership with this support resistance line right and this is an example of support resistance you typically want it to be extremely historical but uh right here at this what level is this so like 1964 we met two areas of confluence now this is just in in patterns what we want to add to the situation is indicators and indicators basically tell us things that we can't really see right so it's basically using mathematical mathematical equations for example the ema is taking all here i'll just show you right now so using the ema 20 5100 200 what does that mean ema 2050 100 200 each of those numbers represent how many candles previous so the exponential moving average of the past 20 candles versus the past 50 reverse the past 100 versus past 200 and then you can see them laid out here so the 200 is the blue line while the 100 is the kind of turquoise line okay you see that so what you want to use here is okay the the ema ribbon the trend is really your friend these are these are period moving averages okay so whether it's 20 period the 50 period 100 period or the 200 period that really doesn't matter well you you can test different things again what you want to look for here is uh confluence and so for example this is a great example of confluence right so it's coming back down to retest this line so if we retest this and move higher well we would be a little bit more blind if we didn't have this ema ribbon right so once we add that in we go okay now we can be a little bit more confident because we see this at 20-day moving average it's coming back down to re-test that now if it busts below the 20-day moving average typically the trend is your friend with ema so you have to keep that in mind obviously the 20 is the shortest out of all of them i like to use historical um data as much as possible but uh with the ema trade with the trend if price falls below typically it will continue and vice versa if it goes above okay so if it's below like this uh or here if it's above like this let's use this as an example this is a great example so short term and bust it down but pop right back up now see how we've kind of been bouncing off like waves right like think about it like you're out you're a jet ski and you're bouncing off bouncing off bouncing off these waves bouncing off these waves bouncing off then they had a crazy move higher um then way way over extended so that's something that you can use something like the bollinger bands for to see okay is this overextended in the uh just in the standard deviation that's essentially what the bollinger bands is which we'll talk about here in a second um but you see how we're way way overextended here um from this red line especially from this blue line um that's why people say okay we at some point like here if people were predicting hey look at how far away we are from this from this 200-day moving average i mean we're pretty overextended that's a bit crazy and that's where it kind of signaled this trend of okay we're a bit oversold right so that's where you would use something like the rsi the relative strength index so i hope you understand ema a little bit better um i'm happy to do more videos on this let me know in the comments if you have any questions throughout this whole video um any questions at all also join the telegram group linked down below in the description and i can help you on individual questions that way if you have uh specific things we can kind of walk through it together so definitely join that telegram group link down below like-minded investors looking for global investment strategies so one of the things you have to understand is there's multiple um indicators for each ema so for example let's just say you you're like okay yeah invest global let's type in ema well how many of these are there right it's pretty crazy well honestly what i do what's pretty simple is you you can look some of these up and because anyone can kind of create custom ones these are all usernames right people that have created indicators some people create paid indicators um i typically like to use the ones with the most usage right so if around 7000 people use it 5000 people use it that's not bad um and you just want to make sure that it is actually working correctly it's what you want now some of these at the very bottom may not be at all what you're looking for right so some people kind of combine all these together but again this is a tool in the tool belt so you can think of this like a hammer right so when we dump below this this was okay so now the trend is kind of your friend but we hit this w pattern we hit this level of confluence right so that's kind of a key level of support based on back here back here back here and then in this descending wedge which is a bullish pattern we hit the bottom there plus we hit a w so it's multiple levels of confluence that's where i would have made the trade i would have made the trade off this neckline right here when we had volume confirmed breakout so remember what i mean by volume confirmed breakout what you're looking for uh this individual chart i guess the volume isn't that isn't that useful but if we go to bitcoin or ethereum you can see that volume is basically okay the spike in brief people entering the market and really injecting capital that's what kind of drove this now in the short term remember okay what's what's this pattern though right so this pattern is a rising rising wedge i mean it's it's pretty parabolic right so this is a pretty quick rising wedge here for gold um and remember we're on the daily charts so all this kind of macro view so when we're in this level okay let's say we push down here and retest now that's going to be huge because we're retesting that remember we're retesting that 20-day moving average that red number okay we're re-testing this line on the descending wedge plus we have this okay so this is going to be a make or break situation now if we break down that's not going to be bueno because you can see this blue line if we break down out of here typically it's going to be a relatively sharp breakdown back into this uh back into this wedge now it's all probabilities you have to remember that with technical analysis it's never never certainties because anything can truly happen so let's say we have this breakdown maybe we touch these rising uh these these ema ribbons maybe we touch up here get rejected and push back down and kind of fall back right so that's just one scenario but we can move on so i hope you understand the overall view of this remember the the idea here beginning with the end in mind is you want to combine these and kind of form your own recipe if you will you know form your own amalgamation of each of these indicators and okay how do you do that well go to any chart and just back test it right so if you have a thesis saying okay i'm gonna use the ema ribbon i'm gonna use the ssl which by the way i'll explain these here in a second um this may look really ridiculous then i'm also going to use volume even though volume isn't that good on this chart um well that's kind of your own recipe right so you don't want to copy what i'm doing you don't want to copy what someone else is doing you want to form what's best for you because really what you're looking for is something that someone else doesn't notice nobody else notices in the market and when you combine certain things when you start going okay like when i start combining these patterns when i start seeing double tops like right here when i start seeing this kind of m pattern or seeing these uh these descending triangles this is another double top kind of an m looking pattern um we're seeing these sharp declines well how can i use this when price touches that bottom then it pops up right so that's kind of creating that recipe again that's just kind of beginning with the end of mind so i also did want to talk about bollinger bands so again with these indicators guys remember trading view only allows you a certain amount of free um and it's really not that expensive i mean it's not a big deal at all to get the the paid version but just out of uh kind of a simplicity sake since i know some people won't be using the paid version i for these global ta videos i'm just going to do it on the free version because it's really really easy to do um here we'll get rid of this for a second but as i was talking about earlier with the bollinger bands really what it is is a deviation so standard deviations basically this idea of regression to the mean right okay so first let me pull this up so bull bollinger band strategy we don't want the strategy so typically let me get rid of this for a second so we talked about the ema we'll get rid of that and and that's basically the only thing here you can really have unlimited but you can only have i think it's like three or four um in this space right here so again with your indicators this we're going to find them right under the actual ticker um then it's kind of this drop down menu you can hide them here you can change the settings here so for example with the ema ribbon let's say you uh you want to change the color or you want to change different things here you can do that so let's go here we'll get rid of volume um let's go to indicators so bollinger you can kind of think of these as a rubber bands that's kind of how i like to describe them is uh you know the these truly are rubber bands so it's regression to the mean this middle line is kind of that is a moving average that red line so remember this is basically exactly what we saw in the beginning one so what this is telling us is these are the the kind of standard deviations typically it's two standard deviations away and you can think of these as rubber bands when we're overextended we typically snap down when we're kind of under or sorry when we're overextended towards the upside we typically snap down and vice versa with the downside so when we're over extend extended down here we typically snap up so you can see kind of these price movements down here and typically we have some a little bit of a kind of back and forth here at that midpoint where it's the mean so again remember this red line is the mean and what you're looking here for is regression to mean so i talked about this in a just simple strategy but let's say you're using the hourly time frame so let's flip to that which by the way if you're confused on i'm going to talk about this in previous episodes of global ta but essentially the time frames really just indicate what each of these candles mean so for example here each of these candles are one hour and we talk about the anatomy of account candle um go watch those videos so uh for example let's see this well right now what are we doing on the bollinger bands right with gold you can see this kind of progressing the price is moving back and forth uh well we were down here maybe we were not too overcentered right here we were a bit overextended here we were over extended to the upside kind of pushed down in this a descending wedge again remember i hope you're kind of picking up the the points here guys is you're picking up this as i do it because when you back test it doesn't matter if it's if it's recent price action what's what's fun is to go okay let me go right here and let me guess how should i trade this based on the bollinger bands and then then you can pull okay now i get the bollinger bands now let me use the ema ribbon which which i'll talk about next which is basically just a kind of automated version of that first indicator i showed you but with this uh and by the way guys if i'm talking too fast or you're a bit confused you can always just rewind these let me know in the comments again i can always make updated versions i'm happy to do this but let me just point this out so what again what we're looking for here is regression to the mean so the typically the more overextended we are so the more kind of like this for example way overextended way overextended that's the same pushback so that's why i'm calling it the rubber bands because you know it's it's truly you know the the kind of loss of gravity if you're pulling hard one way what goes up must come down so what went crazy up must come down what went down must go up right so you have these kind of a waves if you will in technical analysis and the this is how you trade uh potential breakouts so typically what i look for on bollinger bands for at least the overall strategy is for example right here we're bearish so as long as you're under this red line this uh this mean or ema this moving average well it's going to regress so if we're overextended here what we want to look for is a potential long position right because we're bearish okay we're bearish bearish bearish bearish now if we find a bullish engulfing candle so we didn't see any i mean this is a bullish engulfing candle but ideally you look for one on the bottom of the bollinger bands uh so let's see if we can find a good example right so this is a decent example although it's not the best trade setup and you can just look for the inverse i let's see here perfect example so bullish engulfing candles basically small red candle large green candle following okay so here small red candle large green candle but in this case small red candle large green candle okay let's see uh um there's probably a small red candle big green candle but see how this candle took up this whole space when the when is consolidating it's not really doing much this isn't the best time to trade right this is this is just a consolidation um mark kind of moving sideways that's where you want to look for a big breakout um you can use things like macro indicators or trends uh to go for to go off of but uh if we see this golden candle well how high up can we really move well we saw we can move a little bit higher right but the key thing here is if we saw a golfing candle down here and it was just small and this didn't use this whole way so let's say we saw like a small red candle like this let's say we saw this and then we uh here flip it here um sorry about that and then we saw a bigger green candle like that and flip that to green well that's a bullish engulfing candle right so you get my point similar to this but with this you see how this took up the whole space that that whole distance of the bollinger band so that's the whole standard deviation it's a giant um before volume candle and the price moved a lot right there but uh here the pr it's just beginning this trend so that's a potential where you would start okay so not only are you overextended on the bollinger bands towards the downside right that's one area of confluence but you also have this bullish engulfing candle so potentially you could enter the trade there set a nice little tight stop loss maybe at the bottom of your bollinger band so it's 0.27 and then really maximize that upside and uh you know you could potentially hold profits there and this is obviously hypothetical but as you go back and back test this um you'll start understanding this a little bit better so uh that's about it for the bollinger bands i mean as i said when you're overextended that's potential short position like right here um we're a bit overextended um we had a i guess you could say this is a bearish engulfing candle right there um you see because it's uh so remember it's just the inverse it's always you know bearish versus bullish it's really the same the same type so remember down here i talked about how this is a bullish engulfing candle because it's a larger green candle following a smaller red candle well it's the same for bearish engulfing candle with a bearish engulfing candle um you you have a small green candle followed by larger red candles right here is a decent example on the smaller green candle again you're looking for the body mainly the the closing and opening um so right here would be potentially okay maybe we'd want to open a little short position here because we see this uh bearish engulfing candle boom we pop open this uh short position we set our stop loss right there to the top so 0.29 um and then we take this profit you know we get to ride this volatility and make money on the downside just like you know when bitcoin dropped a lot of people made a lot of money um a lot of people increased their overall size position and you can see there you know you have a decent risk to reward ratio and with something like gold that's a bit more stable but when you're trading crypto when you're trading forex these things can be extremely volatile and that's where you can make a lot of money and uh just just for example sake let's just hop on over to vtc right so let's just hop onto btcusd um bitstamp i probably have some things laid out here but uh just as a macro view if we go here okay so i had drawn this out in previous technical analysis videos but this is a descending triangle right so a descending triangle we only have the the bollinger bands set up how can the bollinger bands help us well in this descending triangle we saw that here we were overextended on the bone joints here we were overextended on the bollinger bands so while we are in this descending triangle which is technically bullish um these can help us gauge whether or not it will break towards the upside towards the dot or towards the downside i've talked about you know these are the key levels you want to look for in this in this triangle pattern you can also draw it like this if you're just using the wicks um which would make it more of a symmetrical triangle um which which isn't a bad way of drawing it but uh i kind of i kind of like it as this descending triangle it's all kind of preference on how you trade and this is kind of how i would look at it is uh these these are kind of fake outs right fake outside of these patterns um kind of anomalies but i'm moving on so again bollinger bands think about it regression to the means um standard deviation from the moving averages look for when it's overextended so here a way over standard way snap back way of extended way snap back over extended snap back down over extend to the top snap back down so that's kind of what we're looking for um and then kind of as it consolidates uh we'll see that massive push up or massive push down in which case you know we'll probably be overextended and then you'll look for a short position here or a long position here okay so again the trend is your friend remember that guys remember combining bollinger bands with ema and the ema ribbons so this is one that i actually kind of like to use it points um because it's somewhat of an automated one so i don't like to trade just based off of it but you can see uh they really have a ton of indicators in here and uh they're combining multiple emas and kind of help you help you understand this right so the when the trend is your friend so see how as i'm talking about with the jet ski like you think about these these waves these kind of uh ribbons as waves right so you're in a jet ski and you're popping off you're popping off you're popping off oh you went underwater oh it's hard to get back up hard to get back up hard to get back up when you do get back up that's when you start riding those waves and now we're below it we're below it we're blowing it we're trying to go above water and um so we could just get pushed back down here so since we're technically below right now and we're kind of in this bearish formation we could just keep uh you know bouncing off sorry about that i go here pull out my brush i did not mean to do that brush okay right here so let's say we just keep getting rejected keep getting rejected keep getting rejected that's where we you know potentially have that massive push down and push way way down okay so uh that's kind of talking about the ema ribbon um you can check that out again if you have any questions on any of these things let me know in the comments down below next we'll talk about the ssl so this is actually something that i really like and a lot of people um understand but i don't think really uh they they see it they use it but they don't really use it properly so the main thing with the ssl is what you're looking for is this green and red line right so when and you're looking for crosses so when the green line crosses the red line okay so this is the main thing when the green line crosses the red line um sorry when the green line crosses below the red knight it's a sell signal and when it crosses above it's a buy signal so for example uh let's just look for potential setups here um it's a bit harder to see but essentially here we go that's perfect so when you see this green line cross above this red line so right here cross above then we cross below you see this rather than kind of pushed up um back here uh red line across a but red line crossed below green line cross above reverse okay so these are all buying and selling signals right so the main thing here is to understand let me just repeat it one more time when the green line crosses below the red line so right here when the green line crosses below the red line right here in the short term this was kind of a bit of a fake out but you can see if you back test this it actually works very very well so uh here's an example um we saw this green line cross this red line below this is a sell signal so so that would be a potential setup to go okay hey wait a second we have multiple levels of confluence right so we have this descending wedge right here and then we kind of fell into this triangle pattern well right here we saw the short term we got rejected off this descending wedge and we started to push down now if you're using the ssl this can actually help you because you saw this green line cross below the red line and when again when that happens that's a potential sell signal now should you base your trade purely off this no you should use multiple levels of confluence so you want to kind of think about this like you're a detective right so you want to think about it like your sherlock holmes you don't want to go off one piece of evidence rather you want to combine multiple that's why i talk about confluence combine these different kind of tools uh the as i talked about you know i'm kind of using a lot of analogies here but uh you know kind of just like a recipe you need to combine all these raw materials to really make it great now if you if you kind of get overwhelmed with too many raw materials like if you have 20 indicators up here and you're trying to use all these advanced things you're using uh abcd patterns using uh ecliptic lines using time cycles using syn lines um you can get wrecked very easily especially if you're starting out that's what i talked about you know with sport and resistance you can literally just trade off those so support and resistance is the basic thing then you move into some basic patterns and golfing uh sorry bull you can use bullish engulfing and bearish engulfing candles which is really i guess you could say this pattern but uh it's really more of a candlestick uh type type indicator so with this you know descending triangles ascending triangle symmetrical triangles descending wedges rising wedges all these different things you're looking for multiple levels of confluence so here again we got rejected off this historical level here moving towards the downside that would be our sell signal we take nice profits there um and then oh hey what what happened at the bottom here will the green line cross above the red line so that's a potential buy signal again don't trade purely off of this but i hope you understand what i mean by ssl now lastly i'm going to talk about rsi again i kind of mentioned it earlier but the relative strength index is actually very very powerful and something that i actually really like so if we go to rsi you can see relative strength index right there let's give it a nice little star there this thing is a little bit different and you'll see with other patterns or other indicators which maybe i'll make a part two to this one on them even more like expert indicators but here what you're looking for is this rectangle right so so this actual rectangle right here between the 69 and this uh well that's just an example of the chart but um what you're looking for is anything that breaks out so right here maybe it's a little bit overbought and right here maybe it's a little bit oversold so you're really looking for uh i guess outliers on this so typically price consolidates in here right so that's typically what happens but when price really really breaks out like here for example that's oversold oversold and the main thing is not to trade it just based off that the main thing is to go okay here the this is way better when we zoom out so this is massively oversold this is massively oversold well does that mean that you should just buy no you should look for a nice entry position so for example right here you know this this lines up perfectly right there so we were oversold right here we whipped way way down and similarly we hit the support level right so we hit this historical support level so that's two levels of confluence we're using this rsi and just to reiterate um when it's below so you see this rectangle this kind of purple rectangle here with the dotted lines when it's above the dotted lines it's a bit overbought when it's below the dotted lines it's a bit oversold and again you have to understand that uh this kind of helps you um understand the market a bit better and you can customize this one a little bit as i said with these indicators if you're looking to kind of switch things up a little um let's go here sorry let me pull this out we're looking at rsi um i'm not sure why it's not showing up there on my uh here we go rsi relative strength index let's go there come on buddy okay well it's not popping up the point is when you see the rsi sometimes there's a little problems like this when you see the rsi maybe we'll be able to edit it down here no okay so when you see the rsi here for example if this is rsi which should be popping up you can just hit settings and that's where you can kind of change these things it's same here so you can kind of edit these uh lengths um and what i recommend and see this like standard deviation going back to the bollinger bands is kind of playing around with the 4 7 and 14 with the rsi the relative strength index and again if the line is above the rectangle it is overbought and if it's below it's oversold do not trade purely based on this rather use it as evidence and look for a reversal a buy or sell signal using the other indicators this is where again you're combining all these ingredients think about it like you know the best you you team the best chef in the world up with the average mom who just cooks for kids on a daily basis well you give the average chef you know they're trying to make the best soup in the world you give the average chef the ingredients of you know chicken broth and noodles and salt and then you give the mom all these nice ingredients you know nice seasonings nice meat to put in there maybe some vegetables and she makes this amazing soup well is she really a better chef or does she just have more kind of tools in the tool belts or more ingredients right so this is how you want to look at indicators that's the whole point here because you can kind of get lost in the uh you know you can kind of lose the forest through the trees if you will if you get too confused but test these out even just pick one and go okay let me use what i've learned throughout this course let me pick one indicator maybe it's not even one that i mentioned maybe it's one that you look up i highly recommend becoming more curious on the curiosity factor is honestly one of the most important things not only in trading but in life i mean the more curious you are the more interested you are in um new innovations you really start opening your eyes up right so you start seeing things that other people are not seeing and that's where you truly see innovation is you know when you combine all these things together and then you start going okay i'm going to back test this you know my thesis is i'm going to combine the let's just say the ema ribbon with the bollinger bands which i personally like um and then maybe you also want to toss the uh sorry maybe you also want to toss the rsi on there so boom we have these three now this may seem like a lot this may seem like a lot but again it's just more ingredients in the in the soup if you will it's just kind of more tools in the tool belt but you don't want to get too dragged down as i said you don't want to have you know so many uh ingredients that you make a terrible soup because you don't know what you're putting in there rather you want to identify these trends trade off of them and uh and ideally you back test these so you go okay for example that that a basic strategy i had laid out um let's see here let me go in here um the basic strategy i've kind of laid out in in a day trading scenario is look for on the one hour chart so remember this you also want to play around with a different uh time frames right so if we look here okay that's a great example right here bullish engulfing candle we're over extended towards the downside on the bollinger bands we're also in this bit of a descending wedge here you can see um descending wedge descending wedge right there you could also say maybe a mini little w there but i wouldn't necessarily call it that um but you see mainly right here is this small red candle followed by a larger green candle right and we're looking at the body of the candles that's what's most important the open and the close of the candles not just the wicks so that's the golf candle that's where i'd potentially set up a trade um and maybe set up a trailing stop loss there so we would enter there we would set our stop loss i would say around this level of the bollinger band let's see i obviously just going back in time but you can kind of play around with this and go okay if i'm committed to setting like a a one percent stop-loss i would set it there um and then i mean you can ride this volatility towards the upside and the risk to reward is pretty insane right so you'll have this ability to to really ride these waves and let's say you just pulled a little bit of profit here and then let the rest ride well let's say you just move your stop loss up you you really don't have that much risk riding anymore you're completely de-risked like you don't have any downside risk it's just less profit potentially and i mean you know you go up from as we talked about right there that bullish engulfing candle to these levels and you hold it a little bit um and you stay in the trade a little bit longer let's say you're using low leverage and just kind of maximizing the gains based on volatility here well i mean 2x leverage nice little 30 percent uh or you know 30 to 2 ratios so 15 to 1 um risk to reward isn't bad honestly it's not bad and again you you'd want to use these uh these indicators so for example here um another thing we could have used here with this buy signal is well we were bit now again this is not something you want to purely trade off not purely trade off the rsi but we were a bit oversold just like right here we were a bit oversold right here you see on this kind of bottom where we broke out of this uh this rectangle we were a bit oversold here and then we kind of pushed back up so that's basically it for these indicators um i mean i can kind of show you some other patterns that you can use i talked a lot about them in the past but uh you have things like cup and handles so a couple handle looks like this basically where or price has kind of been in this so obviously it wouldn't look exactly like this it would look like candles in this space right so it would look like this kind of a lot of alt points have been kind of this cup and handle um and then this is where you look for the the handles right here so and then kind of the move up side is uh this top to this bottom and i'm using drawing so this probably isn't going to look it's going to look like a third grader to it but this is the measurement price target breakout a better way to do it is just what with this um so there and then based on that handle that's where you would do the the breakout from okay so and then we talked about you know uh and by the way that's a bullish pattern um you can also have an inverse or a bearish cup and handle which basically just an inverse um where it's literally just flipped on its head right so just to draw that out what an inverse would look like is basically the same thing except here and then a little bit of consolidation here i'm going to draw this line across and then measure move this bottom of the cup towards the uh or sorry in this case top of the cup uh which is reversed uh towards the bottom of the cup and then that would be our price target breakout so you i hope you understand that a little bit um i know those drawings kind of look like a like i said like a third grader but uh you get the point here don't lose the forest of the trees um we we always talk about you know bull flags bear flags pretty simple to see both flags and bear flags i don't personally like them that much because they can typically be very very deceiving if you're just starting out i prefer just trading triangles um you also have things like head and shoulders right so head and shoulders pattern looks similar to this um where where your uh basically is a bearish uh reversal pattern so let's go here and let me get rid of this for a second boom and let me just go here just so we have a little bit of free space to draw right okay so right here we have uh let's just let's say you know double top i talked about talked about that that that looks like an m and this is technically so you would touch there again and that's kind of this kind of that neckline right here right so that's what you're looking for potentially a short position off of that um these are bearish reversal patterns right so coming into the pattern we were going bullish then we kind of did this little mini consolidation double topped then push down so that's kind of you know this would be then moving forward uses a resistance line right so you also have the reverse so double bottoms um which is just a w so double bottoms same concept boom touchdown boom here boom touchdown again then you move towards the upside right so ideally what you want to look for is is a higher low so this is the low but you want this low to be a higher low because a lot of people get wrecked again with these don't trade these too early by the way you want to see this pattern fully evolved and then you trade it from there so uh let's see you also have things like head and shoulders which uh head and shoulders is another bearish reversal pattern so not quite like the w it's kind of like one small mountain one large mountain which is the head that the first one was the shoulder um then the other shoulder boom then here and from there that's where we dump down okay so that's where you would potentially set up the short position but again some people anticipate these and go oh you know it's going to be a head and shoulders and they get destroyed and then you also have things like i mean you also have a triple top which is similar to this but uh let me go here similar to this except it's just three right so just here boom here boom here then it's massive with down right um and typically it's a little bit more more harsh a little bit more uh intense of a push down um you also have inverted head and shoulders which is a bullish reversal pattern so we were in this kind of bearish trend with inverse head and shoulders um you see that kind of first shoulder there boom pop then the head towards the bottom um and then this next little shoulder here we push here um and then once it kind of breaks this neckline that's where you'd want to go towards upsets that's where it'd be potential long position so and same with the triple bottom right so just as i laid out a triple bottom would look like this right so that's kind of that bottom that's not the best drawn but i hope you understand these are very basic patterns and with these obviously you want to apply them to charts so you want to look for places where these happen go back back test these use the indicators on top of these and you'll do really really well technical analysis um if you've made it this far in the video definitely give it a like i really appreciate that um all this completely free the reason i made this course is because i know a lot of people out there are kind of hawking these uh paid courses that are thousands and thousands of dollars i really wanted to lay this out uh so every single thing that you know about technical analysis i will be much more on the ball with uh uploading these every single sunday moving forward i'm planning for about eight parts in this series uh they will be obviously more advanced as we go along always go back to those fundamental um previous lessons in global ta because those really build the framework build the ground base for moving forward you can't you know you can't build a house on sand it's very very tough to do you want to build a house in a strong place and that comes down to fundamentals you know michael jordan practice balance passes every single day that's one thing i talk about in the beginning episodes um that you really can't overlook the fundamentals when it comes to trading really when it comes to anything in life uh some so many people are so kind of adhd that this is a massive problem so again let me know if you have any questions in the comments definitely hit the like button on this video definitely subscribe the channel hit the notification bell share this video with someone else who is looking for technical analysis share the whole course go on the playlist hit share copy the link send it to them uh definitely go check that out so that's all for this one if you enjoyed it like subscribe a button all again let me know in the comments if you have any questions invest global and until next time

2021-06-10 12:30

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