Original subtitles

Hello and welcome to Cryptocurrency Trading Masterclass by Unwealthy Education.

In this video, we kick off Module one profitable crypto trading setups.

This particular video is must know trading terminology.

Now, before we can get into trading, we have to make sure that we are speaking the same language.

So let's go through some very basic terminology.

Therefore, we're.

Able to have the conversation and talk about various strategies and ways to trade the crypto market,

so the.

Terms that I'm going to show and talk about here are not only Kryptos specific, but they're going to

be used in any financial market.

So if you decide to trade stocks or forex later, commodities, whatever, these will all be relevant

there as well.

There are some very basic terms which are pretty straightforward.

So, for example.

One would be the 52 week high and the 52 week low.

So it's exactly what it sounds like.

So during the year twenty twenty, which was here to hear.

The 52 week low was the lowest price during that year, the 52 week high was the highest price, so

it was just a little under forty two thousand.

And the 52 week low was down here at about roughly 3500, so that's pretty straightforward.

And that, of course, is not necessarily it doesn't necessarily have to be over the last year.

It could be just over the last fifty two candlesticks.

In this case, though, it would still be the same.

We're only a few candlesticks into a 20 21 as I record this, the low, the high there at the same spot.

So basically over the last year.

The highest and lowest prices found pretty straightforward.

There's also the bid ask close and high.

So the bid is what people are willing to pay for an asset.

So you are bidding to buy it, and in this case, if you are bidding.

You come in with a price and I'm going to use very simple numbers.

Let's just say you're bidding five for an asset.

There's an ask.

Which is what they are willing to sell this asset for, and that asset might be five and a half.

Well, in order for a transaction to be made, two people have to agree on a price.

Sometimes they'll come back and forth to each other, so they may sell at five and a quarter.

But more often than not, you'll hear a phrase, something like hitting the bed or paying the aske,

so if you are the buyer and you really want this asset, you're going to come up here and pay five dollars

and 50 cents for it for five and a half for it.

And you're paying the ask if you are the seller and you're aggressively wanting to sell.

You might do what they call hit the bid, so you would sell it at five.

So the bid is just simply what you could buy it for.

Ask is what you can sell it for.

And here on Trading View, you can click on the watch list and you can see there is pricing here and

notice how the prices aren't quite the same.

And that's because there's a bid and an ask.

And it's true with all markets.

It's not just Bitcoin.

It's just happened to be the one that I have highlighted here.

You could.

Come to the DAX or the Nikkei or whatever, so that is always going to be the case.

Sometimes you see zero spread.

That's pretty rare, though.

The reality is that's what makes a market.

People either have to step up to buy it or step down to sell it.

There is an uptrend or what is known as a bull market, and that is clearly an uptrend, we are rising,

we are going higher.

That's an uptrend.

There is a downtrend.

So.

In twenty eighteen, when Bitcoin got to be so overbought and then sold off, that's a downtrend.

It's also known as a bear trend.

So bull is a bear is down.

There's, of course, sideways, which is.

Really, what it sounds like, it's just the market going sideways.

A lot of times people refer to that as.

Consolidation, so let me go ahead and go to a lower timeframe.

Let's go to a daily chart.

So we've had a bull run or an uptrend, and then we just kind of go sideways or sideways, consolidation

is kind of the same thing really.

It's just essentially that the market had been rallying, had been bullish, been an uptrend, and then

you spend a little bit of time consolidating your gains.

Now you can go up or down, but when you go up, that's a continuation of pretty basic stuff here.

But these are things that people need to know.

So rally consolidation, continuation, there is a couple of phrases.

Swing high and swing low.

So let me go to the hourly chart.

So a swing high means that the market swung high and then turned away from it so that your swing high,

just as this was a swing high back then, this is a swing low.

High, low, high swing, low start to rally.

These are useful to identify trends.

There's high, there's a low, there's a higher high, there's a lower low, so that is an uptrend.

Granted, it's not always going higher.

But when you extrapolate this out to say like a daily chart.

Weekly chart, it begins to look more like this.

There is also.

A phrase known as a bounce, so a bounce typically happens after a significant sell off.

So right here, you can see that it sold off and then it bounced up a little bit.

That would be the exact opposite of something called a pullback or a pullback, is what it sounds like.

We pull back from the trend and continue.

These are healthy and they're very common.

It's just the way of.

The way markets move, you can't go directly from point A to point B without having some people stepping

out or selling or whatever, there's a million reasons why somebody gets in and out of a market.

There is the phrase go long, that means buying short means you're selling.

So.

Up here at the swing high, you might want to short bitcoin as we break down from there.

Just as when you are consolidating.

So.

We rallied and we're consolidating here.

Now you're continuing on this breakout, and that's what it is called when you break out of consolidation,

you might want to go long.

There are two phrases known as averaging up and averaging down.

These are pretty popular in the stock market.

So really.

As a general word of advice, you really don't want to average down, so averaging up is if you say

buy it here.

And it continues to go.

You make a short term swing high, swing low, you break above the swing high, you decide to buy more,

that's averaging up.

You go higher, you buy more here for whatever reason that's averaging up, that is adding to position

that's working, though unfortunately and this probably comes more from retirement account and longer

term stock market advice, there is something known it's averaging down.

So let's say that you are involved in Bitcoin here and everything is going fine and then suddenly it

pulls back.

You buy a little bit more here.

It falls again.

You think, OK, well, I'll buy a little bit more here, a little bit more here.

Now, what this does in theory, at least.

It's the same thing is dollar cost averaging, you'll hear financial advisers talk about that, well,

if you buy at 10 and you buy again and.

Five, and you buy again at one, well, every time you buy at a lower level, it brings down the average

price of all three entries from 10, in this case seven fifty.

And in this case, it would be somewhere near like three ish.

Maybe for somewhere between three and four, that's because maybe you have.

One, for example, one Bitcoin, and of course, these aren't real numbers, but if you buy one Bitcoin

at twenty dollars, for example, and you buy another Bitcoin and.

Ten dollars.

Well, that's the same thing as having two bitcoins at a base, prices are based on price.

Of 15.

As the markets move, for example.

At fifteen dollars, this would be five dollars positive, this would be five dollars negative, and

it becomes a wash at your cost basis.

The idea is that if you average down, then you can bring that cost basis down.

Now, the problem with this is.

Sooner or later, you're going to average down and the market's going to keep going lower, so if you

average there and there and there and maybe there, you think, OK, it's going to recover.

And then there again and there again, you know, the market may not go to zero, but your account may

be blown, in other words, wiped out before it recovers.

So averaging down never a good strategy.

Unfortunately, a lot of people do it.

It's part of human psychology.

You're trying to make your position more profitable at a lower level.

It can be like a retirement investment strategy if you're going to buy like stock that you're going

to hang on to for 30 years, that's a different scenario.

But in crypto, that's not what you're doing.

So those are some very basic terminology that you'll need.

No, I encourage you to watch this video again, go through all of this, and then we will move forward

in our journey together.

In the next video, we're going to take a look at the best chart time frames for crypto trading.