Original subtitles

hello good afternoon how's everybody

doing today huh

i hope you guys have had a fantastic day

trading so far

and more importantly i hope you've had a

fantastic time with these lessons that

i've developed for you guys

since you guys are my students i really

do highly encourage you

to post as many questions as you guys

can alright

make sure you're reaching out to me on

udemy and i will be 100

more than happy to answer as many

questions as i possibly can

in in less than 12 hours i'll make sure

that i get you guys in a very timely

manner because

since you are my students since you guys

have made the investment

it's absolutely my obligation to ensure

your success because you guys are now

officially my students believe it or not

and i have not taken any students ever

and i really do

hope that you guys have enjoyed the

material thus far

so let's do a quick summary of what we

have covered so far

in the previous six lessons welcome to

lesson number

seven where we'll be going over what are

technical indicators

and how are they used okay this is going

to be more of a general just talking

about technical indicators

the different kinds of different things

that people use as well

and especially what i personally like to

look for

in tactical indicators and the reason

why i'm

using them myself so so far guys

we have talked about the introductory

introduction class

which covered a lot of the terminology

so now you guys should be able to

converse with me

to some extent right whether you're new

or a beginner or an intermediate

i'm sure that you guys are having a lot

more familiarity with a lot of the lingo

that's used

imagine coming into the scene guys and

not knowing anything at all about what

anyone's talking about

imagine watching my elliott wave videos

for the first time

as a very new trader it'd probably be a

little bit overwhelming

right but now you guys know a lot more

of the common terminologies used so i'm

very happy that you guys are

graduating to a different level of just

from beginner and newcomer now

so what separates the superstar status

from the mediocre

we talked about that we talked about how

it was basically

dealing with your emotions right

emotional stability

is very important and we factor out the

emotions

by making sure that we stick to our risk

management

right risk management is a way for us to

minimize our losses because we want to

make sure that we protect

and preserve our capital and our money

that we've made

so we can actually grow it as well and

then thirdly we have to make sure that

we trade like a casino

because we don't care about the single

wins we just care about

winning well over time and when you

think of trading like a casino where you

will win something

you will lose some and it's all about

odds and probability you guys are going

to have a much higher success

especially when you add less than three

into this as well

where you're focusing on dollar cost

averaging

when you dollar cost average and you

ladder your buys

it ensures that you're not stuck in one

particular

position and it allows you to add more

if it actually gradually goes down

but if it doesn't go down then it allows

you to actually add more to your

position

on strength then lesson four

was definitely one of my favorite topics

there reading the level two order book

understanding what the bids and the asks

are

and also just being able to read in real

time

what these momentum changes are so

lesson five was also to scare you guys

it was to instill a lot of fear which is

what i wanted to do

i wanted to talk about what is longing

where to go long

what is too short or shorting what is

margin trading

what are the risks and what is leverage

trading as well right and i wanted to

make sure you guys understood

all about the liquidation process

because to me this is

incredibly important for you guys to

understand the risks

and i really don't recommend that you

guys even leverage okay

definitely don't recommend leveraging

whatsoever stay away from it

because what we want to focus on is

actually making sure

that we focus on good trades last thing

you guys wanted there's this side here

that's focusing on making money and the

better side here

is focusing on making sure that you guys

are taking

good trades because when you take good

trades the profit will naturally roll in

so always focus on playing the game

right

not winning if you focus on playing the

game right you will naturally win

as a bonus okay and then in the previous

lesson

we talked about the necessity of charts

right which was how to customize

trading view right customizing trading

view is a very important and crucial

step

so let's get into this guys let's get

into lesson seven

and we're going to talk about what our

technical indicators and

how are they used so let's get into this

guys

let's go over a lot of the different

types of common tactical indicators okay

when i first started out trading guys

you know what i did

i read a lot of technical analysis okay

i read tons of technical analysis and i

always wondered

what does this stuff mean right

so i kept reading through them and

eventually got to the point where i

didn't really understand

what it was actually going to mean so

then

i said to myself all right every single

time

i actually don't understand what a

definition

is i'm actually going to google it

this way i'm going to have a very clear

understanding

of what the heck they're talking about

because i wanted to understand

the actual lingo and now it's very rare

for me to read a technical analysis and

not understand

exactly what they're talking about right

so let's go into some formal definitions

first of all

okay so let's go to wikipedia here which

we're going to in just a second

and we're also going to go to

investopedia

this is actually a wonderful site for

you guys to actually check this out

just in case you actually don't know a

lot of these definitions you can go here

type in the definition and it will give

you a really good definition

of what it actually is so what is a

technical indicator

well a technical indicator they're

derived from mathematical statements or

mathematical calculations

based on things like the price based on

the volume right

and this way it gives you a way of

analyzing

historical data right that's what it's

saying right here

so technical analysts will use these

indicators

to predict what the price is going to do

so some common ones are for example

relative strength index

right money flow index is not really

used uh stochastics which we're not

going to go over because it's not what i

personally use

right macd is something i absolutely use

all the time

that's moving average convergence

divergence

boiling your bands i personally don't

use it myself right

so we see these technical indicators for

example

one very common tactical indicator that

we use

is relative strength index right now

we're going to go over

so many different kinds of technical

indicators now i want to talk about the

philosophy

and the principle of what a

technical analyst actually is okay

so let's talk about this right here

let's talk about the characteristics

of what is a technical analyst

versus a fundamental analyst okay what a

fundamental analyst actually does

is they focus on doing things such as

they'll focus on things like what is the

coin doing

right what are they trying to develop

what product are they actually making

how are they marketing themselves what

are kind of

timelines that they have where they're

going to release a product right

did they just make a new partnership

with a different company right

that's these things are really important

for example

you know um just random example

is when for example ripple right they

actually formed a partnership with

apple right apple actually realized

that hey ripple's uh transactions time

is actually really

cheap and very fast as well and of

course apple is a big adopter of modern

types of technology

and that's why ripple actually ended up

soaring

in january to much higher highs and

other coins despite bitcoin dropping

so for example that would be a form of

fundamental analysis

where we're looking at what is the

company doing did they form a

partnership with anybody right

did they do something really new like

are they are they able to make a really

large

announcement sometime very soon so

fundamental analysts

they don't really look at technical data

because they look at the x or the

external factors

outside of that right that will actually

give them an idea of is it a good time

to

invest or not now there's big arguments

in the world between technical analysts

and fundamental analysts right

but a technical analyst just to read you

guys the formal definition right

they employ models and training rules

based on price and volume

transformations

and indicators such as relative strength

index right

so these are very important to

understand so in contrast

to fundamental analysis approach to look

at security or stock analysis right we

don't really do things like

looking at hey what is the company doing

right now

are they going to make a partnership or

anything like that so

our principle glides in here okay

our core principle of technical analysts

is that

we believe the market's price it

reflects

all relevant information that impacts

the market

in that specific price right we're in

the charts

we believe everything is seen in the

chart a technical analyst looks at the

history

of a coin or a cryptocurrency here

rather than

external things such as economic

fundamental or

news events right we believe that the

price

action tends to repeat itself and that

there's

patterns and there's behaviors that are

identifiable

so we like to look at the past data that

will actually give us a really large

clue to what can happen in the future

because we

personally believe guys it's our

principle as a technical analyst

it's our core belief that everything is

easily identifiable based on price

trends and conditions in the market

right so we

personally believe that trends are very

easily identifiable

and we use these technical indicators

that tells us a story

so make sure you guys are understanding

that this course of mine

is geared solely towards learning how to

do

a technical analysis rather than

fundamental

now yes i do also read news i make sure

that i read the news in terms of hey

what is bitcoin doing did they form some

partnership is there some big

announcement is there a fork but

personally

i i trade based on 90

technical analysis and probably 10

fundamental analysis

i'll still keep up to you know coindesk

or

or whatever website you know for news

publications

just to make sure i'm caught up with all

the relevant news but at the end of the

day

i will solely rely on these technical

indicators that's going to paint a very

vivid picture for me

the best way to think of a chart is to

see it as something that tells a

story right it tells us story

and these tactical indicators are

actually going to be used to give us a

gauge

of what is happening in the current

market

by taking and these indicators will take

calculations

they'll do mathematical calculations

behind the scenes for

us that can identify some common trends

so let's talk about a technical analysis

that i just googled really quickly

to see what they're talking about okay

let's just talk about it

very quickly this one was from just

yesterday for example on may the 4th

so let's talk about some of the things

let's read it out loud together

and let's actually go over it one by one

excuse me i have to cough really quickly

okay

all right so what they're saying here is

ethereum price

jumped higher sharply and moved above

the 780

resistance level above the us dollar

right

so here they're talking about a

resistance okay so what is

a resistance let me show you guys what a

resistance is okay

a resistance is basically a price

where it's having a lot of trouble

breaking

okay think of it as an actual resistance

a

place where it's having tons of trouble

breaking

now what would a support be guys a

support would be

if you set it right a support

is a place where the trouble has a lot

of trouble breaking on the

downside right so we're also going to go

over some more terminology

just to make sure that you guys are kept

familiarizing yourself with

it and so we can exercise a lot more of

it as well

so there is an ascending channel

forming at 760

right what is a channel okay they're

talking about a channel

like this right here this is what we

call a channel

that's moving like this oops i drew it a

little bit poorly there

so this is a channel just to give you

guys an idea

so think of an actual channel okay think

of it as

two parallel lines that are actually

moving

inside of it like that right that is

what we call a channel

so let's go over some more things that

they're talking about right

let's go over here now there was a solid

increase

in buying interest as ethereum price

moved

above the resistance level yesterday we

discussed that the price could move

above the 725 level

if not it if not only broke the 725

level

right or sorry it not only broke the 725

level

but moved higher by more than 50 dollars

during the upside it broke 765 dollars

and 780 resistance levels

so they're not really talking about um

any indicators here yet okay

at the moment the price is correcting

lower

from 789 but remains well supported

so what they're talking about is the

price moving downwards but it's finding

a

floor think of support as a floor

right that that might hold the price at

that place

and think of the resistance as an actual

ceiling

where it's having a lot of trouble

breaking through it but eventually

all ceilings do get broken and

eventually

all supports could break through as well

but sometimes we find a support or a

floor that it simply cannot

break through because the floor is just

too strong okay

so let's talk more about some level some

tactical indicators here

right so for example here they're

talking about

ethereum trade price traded recently

below

this 236 fibonacci retracement level of

the last wave

so they're talking about fibonacci

retracement right

and this is more so just an introduction

class to what

charts are right or what technical

indicators are so fibonacci is actually

further down guys right we're going to

be talking about fibonacci retracement

and fibonacci extensions level 15 and

16.

but to give you guys a very quick

overview of what

fibonacci refers to okay fibonacci

is this tool right here i'm going to

grab my drawing tools up here

fibonacci is a sequence and it's a ratio

of numbers

found in nature it's part of the

fibonacci sequence of numbers

and it is by far the most amazing set of

numbers

in the universe it is found everywhere

in nature guys

you can find the fibonaccis literally

everywhere in nature

ranging from the way our bodies are

actually shaped from our navel to our

to our i forgot exactly how it is but

you i'm sorry let's talk about the

golden ratio first of all okay

the fibonacci numbers they actually form

a set of ratios okay and in these

fibonacci numbers there's this one

golden ratio

and the ratio is called 618 if you see

it right here okay

the 618 fibonacci ratio this is the most

beautiful number in the universe

i kid you not okay this ratio is

actually found

everywhere in the universe ranging from

the way the galaxies are actually

shaped and helixed around each other to

the way our

genes and our dna is actually helix in a

coil

to the way seashells are shaped as well

to the way

sand is actually shaped to the way

architects design buildings

to the way our bodies are proportional

to each other

so we find the fibonacci ratio

especially the golden ratio

618 everywhere in the universe and the

good news is it's actually

found in charts as well

this is why we're always going to hear

people talk about

the fibonacci retracement level which

we're going to go over in

very high detail in another video

so let's keep going here and talk more

about things here

so here they're talking about an

ascending channel right

they're talking about an ascending

channel just to get some terminologies

out of the way

so this is what an ascending channel is

guys

an ascending channel is where the price

tends to move upwards in a channel like

this okay

i know that they're not just talking

about indicators but we're going to talk

about a lot of different terminologies

and also about these different different

indicators in here as well

so this is an ascending channel where

it's moving upwards what do you guys

think the descending channel is

yeah if you guys actually said that this

was actually a channel that's moving

downwards like that

that's exactly what it is right this is

a descending channel

where the price tends to move in line

like that

so it's actually com it's actually

bounded

by a resistance right so a resistance

doesn't

always have to be uh horizontal right

it can also be sloped like that so this

is the the ceiling right this is the

floor

where it's actually coming down this

particular way

and this right here is actually the

ceiling where it's coming down just like

that

okay so let's get into some even more

terminology about what they're talking

about

so now they're just talking more about

the same things there

right so now let's go down even more

here

the hourly macd is placed nicely

in the bullish zone right

so what are they talking about when it

refers to the macd

so the macd refers to the moving average

convergence divergence okay it's

actually this top one right there

so the macd in very brief detail

what it does is it refers to the moving

average

convergence divergence and we use a term

called bullishly diverging bullishly

converging

right those are kind of the terms that

we use

quite often is it converging is it

moving closer to each other

is it bullishly diverging right so for

example

on the macd here what it shows you are

few things just to give you guys a very

basic detail of it right

it shows you two lines right here what

is

red okay one is red

one is blue one is called the 12 to 12

fast line and the other one's called the

26 fast

line okay so what this refers to which

we're going to go over in very high

detail

if you guys just take a look at here

this is just more so an introduction

class

lesson 13 is what is the moving average

indicator and we're going to go over

that in very

very very high detail because we need to

go over

moving averages before you guys have an

idea on what this

is so the moving average there are many

different types of

indicators first of all okay there's

something called a lagging indicator

and there's ones that are real time

indicators

right so when you think of something

like the macd

what it does is it takes the information

from the past right and it takes an

average

of it that's why it's called the moving

average convergence divergence

that makes sense right that makes a lot

of sense so one for example

for this one here we'll take 12 of the

past

candles and give you an average and the

other one

will take 26 of the past candles and

actually give you an

average okay that's that i'm sure that

makes uh very much so sense

so one will take a smaller sample data

one will take a bigger sample data

so you can imagine the one that takes a

bigger sample data it doesn't move

around nearly as much

right so why is this important it's

important because it gives you an

average sample of the price history so

it gives you

a sample of the price action and what is

actually happening

and also in the macd it gives you a very

very nice

histogram if you guys see this right

here right

so just imagine for a moment this

histogram it dictates

how much and where it's actually moving

so if you see this right here on the

negative side

right this is on the negative side then

then clearly what we're seeing

is that it's going down right but if

it's actually going

upwards let's say let's say from here

right

from here from down it's going upwards

right

then this must mean that the price is

also going up so they correlate with

each other which we're going to go over

in super high detail once again in those

next lessons

so another really important technical

indicator

that's talked about often is called the

relative

strength index right so when i first

started out trading i would actually go

to these sites

and i would you know i wouldn't know

what they were talking about and after

getting frustrated i finally started to

learn about what they were talking about

okay

so when they say something like the macd

is placed

nicely excuse me there nicely in the

bullish zone

they're basically referring to how this

macd

is on the positive side of this center

line

right there okay the center line is zero

if it's on the higher side

on the positive side that means that

it's more bullish

generally speaking and then they're also

talking about the rsi right here right

the rsi is currently correcting lower

from the 70 level so rsi

is called the relative strength index

and that is actually a gauge

of the momentum in the market and how

much

strength there is so there are two types

of indicators like i mentioned

one is called a lagging indicator and

the other one is a real time

indicator okay the lagging indicator is

not as reliable

because it's taking the previous sample

as an

average right and because it's taking it

as an average

a lot of the times when it actually

happened

already it's a little bit too late

because it's a lagging indicator

whereas some other ones like the

relative strength index

and the histogram which is one of my

favorites of all time

right it tells us really well when it's

starting to level off

the histogram is a really good

representation with the rsi

of real-time indicators that gives us a

real-time

gauge of what is happening in the market

in real time there's it's not lagging

right

so the rsi it's gonna flow up and down

from a number between 0 and

100 okay 0 and 100

and as it goes up and down up and down

it'll give you a really good gauge of

what is happening

in the market and how much strength

there is

so if it goes well below 30 for example

or generally regarding

under 30 that would be considered as

over sold okay oversold

remember that under 30 is oversold

and there are these lines right here

that will give you a really good idea

of where they are and over 70 usually

means that it's over

bought and because it's doing a lot of

these calculations

right these mathematical calculations it

doesn't

always mean that when it is over bought

over 70 it will reverse and it doesn't

always mean

that when it's under 70 which means that

it's oversold

that it's actually going to bounce

upwards so once again

just because it's over sold under 30

it doesn't mean that it's going to

bounce up and just because it's over

bought above 70 it does not mean that

it's going to come down

it just means that it's reaching to some

levels

where there's a higher probability of of

it reversing

very soon or or um yeah and

basically that's what it means right

it's there's a good chance

that it's going to reverse the other way

soon because nothing will stay

overbought for too long and over sold

for too long as well

so what are some other indicators that

people use right

they'll use things such as moving

averages

as well right here so there's the moving

average convergence divergence right

over here

and then there's also the moving average

on these lines

now personally myself i use 8

i use 13 i use 21

and i use 55 and i use the 100 moving

average

those are the five indicators that i

actually use

and and just so you guys know right you

actually can't

have all of these indicators that i have

on my screen

on in the basic version of uh trading

view okay

you need to have the pro version but the

only reason i have it

is because i bought the pro version for

a few months

right and it actually just left my

indicators on there

if you have a basic trading view you can

actually only have um

you can actually only have i think four

indicators

well i have one two and then i've got my

five here

so that's seven and i've got my volume

so that's eight right

but i actually think you can only have

about four so

if you guys are interested in these

strategies you know i might recommend

just paying for it for one month right

just pay for it for one month

and then after you pay for it for one

month um

yeah you'll have it right like i

honestly i think i got it for a few

months i don't even remember

but it's i had it like one time i bought

like a prepaid credit card right

this was like a year ago or something

and i bought a prepaid credit card

and then um just just to get the trial

honestly just to get the trial

and then um and then um i never paid for

it for like a year but it kept all my

indicators on there so

just to kind of give you guys i don't

know a little shortcut or something if

that would help you guys out there

um you don't have to keep it it's not

really necessary until

you get the indicators and hey it's good

enough right i think that's just kind of

like a bug with trading view

where if you get um the indicators on

even a trial account like you put in

your credit card you get a trial account

get all the indicators on there and then

you just never renew it and you actually

get the indicators for life

so it's kind of a cool thing right so um

yeah the moving averages i keep them on

here

and these are actually all fibonacci

numbers okay

they're all fibonacci numbers and it's

part of the fibonacci numbers

ratios that will actually form you know

things like the golden ratio for example

okay

and then these moving averages but for

example the 200 moving average okay

right here

what that'll do on whatever time frame

i'm on

is it'll actually take the past 200

candles

and form an average line of the price

action

whereas the 55 moving average will take

a sample of just the 55

candles prior to that and then they will

form a line

that's why you'll see things like the

100 moving average not moving nearly as

much

but you see things like the 8 moving

average moving

a lot more right so these are kind of

the the indicators that i

use so we've covered basically the macd

we've covered right the rsi as well

which are very

common indicators we've covered moving

averages as well

now i personally don't use ichimoku

clouds

i personally don't use boiling your

bands i don't use sarcastic rsi

there's a lot of indicators out there

guys what i would recommend for you guys

to do

is to maybe even read up more on some

indicators that

you might like right and then you kind

of just specialize

in a very set amount of indicators and

guys this is what i use

this is what make generates me a very

good fortune

i'm very happy with the profits that i

have made

using these specific indicators right

you kind of you don't have to use every

guys you really don't right there's

so many out there like look at the

indicators over here

look at all these indicators that there

are okay

there's so many like we're talking about

like a ridiculous amount of indicators

and i personally don't care for a lot of

them at all like

this is ridiculous how many indicators

there are

right so yeah

i mean there's some really good ones

on here but you know what i personally

don't need them whatsoever like i'm

really happy with just the indicators

that i use and i would recommend that

you guys honestly just stick to these

indicators

it's what's used in every single day

language that you

want when you watch technical analysis

and it's going to give you a really good

way to master specific indicators

if there's some other that you might

like to use i might recommend bollinger

bands

that's spelled b-o-l-l i-n-g-e-r

and then there's also ichi moku clouds

right

so these are some other ones here

boiling your bands

right and then there's also ichimoku

clouds ichi

moku clouds that some people use as well

right

so those are some of the other common

ones so once again

just to summarize quickly technical

indicators

are used because they tend to evaluate

the the the past right it gives you data

from the past so you can

anticipate what the future can do and

that's the importance of technical

indicators

it's kind of a tool that will that we

use that can assist

us in evaluating the price action and

predicting it in the future

and also remember that as a technical

analyst

we firmly believe that all history of

the past

the present and possibly the future

they're all reflected

in the charts and we use the past data

to anticipate

and guess and predict based on

probabilities hopefully our probability

is higher

of what the future can actually do so

make sure you guys understand that some

people will say

that technical analysis is just the

devil like it's it's horrible

never ever use it never trust it right

and only trust by

fundamental analysis right for example

warren buffett okay

warren buffett what he said was that he

never really used um

you know technical analysis and he's

always been the greatest

fundamental investor of all time and

that's all that he's ever based in

off of right and always remember as well

that we're not going to

catch every single trade okay guys

we're only going to catch some of them

and what technical analysis allows us to

do

is try to spot much more than we've

actually missed

and warren buffett has also said that

you know

they asked him how did you miss google

and amazon

right actually he missed google amazon

and facebook the big three there google

amazon and facebook

they asked him how did you actually miss

all of these three and you know what he

said

he said it's not about catching them all

it's about making sure that we spot and

catch

only some of them because we can never

catch them

all so make sure you guys understand

that these tactical indicators

they're here to assist us and give us a

general guideline

of where this price action can actually

go

but they're not going to actually you

know be be our bread and butter

in terms of you know we rely on them a

thousand percent

what we try to look for guys is we try

to look for something called confluence

okay

confluence will actually give us a way

to find

a higher probability of something

actually

happening if something if we find a

higher probability of something actually

happening

that that's basically by taking a lot of

different factors

and combining them for example we might

say oh wow

there's a lot of volume here oh wow

the rsi looks like it's bouncing up oh

wow

the macd is actually crossing over wow

this is also a really good candle

right so we say oh wow okay you know

macd is crossing over

rsi there's volume it's a good candle

that's what we call confluence

where we're finding a lot of different

reasons

for leaning towards one specific way

where it gives us a higher probability

to make this trade right

so that's why we use technical

indicators we use it to find

confluence to find and give us a reason

to have a higher probability

and a reason for entering this trade so

i hope that you guys have enjoyed this

lesson so far

it's to give you just a basic and

general idea

of what technical indicators are and why

they're important but you know i think

that even if you guys are beginners

or not even beginners and you're even in

the intermediate

i know for a fact that if you guys have

invested in my particular class

that you're still going to take a lot

away from these videos

because it's the philosophy and the

psychology

behind everything that i'm saying that

will make you become a successful trader

i don't just focus guys on charts

i don't just focus on indicators i focus

on the whole nine yards right

i make sure that you guys understand

this human psychology

and the philosophy behind trading and

how everything comes together

because when you actually get the whole

big picture of everything right

it can be compressed down so you can put

a magnifying glass

over it as well and analyze it in very

high detail

so i hope you guys have actually

thoroughly enjoyed this class

this will conclude our lesson number

seven of going over the importance of

tactical indicators

the difference between fundamental

analysis and also

technical analysis and how we use

technical indicators

combined with other factors to find

confluence

which is basically more reasons to enter

a trade to have a higher probability of

being successful

so thank you very much guys for joining

me for lesson seven

it's been a pleasure being your your

instructor for this particular lesson

and i really hope to look forward to

seeing you guys for lesson number eight

and for lesson number eight guys we're

going to be covering

finally how to read charts how to

analyze

candlesticks how to read price action

and this is going to be a very fun class

so i look forward to seeing you guys all

there and thank you

once again for being a part of my class

and thank you for all the love and the

support you've given me

i look forward to seeing you guys for

lesson number eight

have yourselves a great day bye now