All language subtitles for 1. Example 1 - How to Trade Bitcoin (BTC)

Hello and welcome back to cryptocurrency trading masterclass by wealthy education in this video, we're

going to begin module three and that's trading with real world examples.

This is where we start to put things together and show how it works in the real world.

So I've got Bitcoin in front of you and this is the most important cryptocurrency market.

I think most of you understand that if Bitcoin is failing, then the rest of them fall right along.

For those of you coming over from the forex world, it's kind of like the U.S. dollar version to crypto.

It is the world's reserve currency in the cryptocurrency space.

So the first thing I like to do is I like to look for potential big figure areas.

So let me go ahead and lay out every 10000.

These lines, because they do tend to.

Kind of cause a certain amount of psychological and support and resistance, people want to take profits.

Furthermore, there's also the possibility that, quite frankly, there might be options expiring in

the options market.

So that has a bit of an effect as well.

Go ahead and put 20000 down and.

Now you have a bit of a grid laid out, doesn't mean we can't go above fifty thousand, that's just

the next psychologically important level.

So we're on the weekly time frame.

We're in an uptrend.

I mean, there's no two ways about it.

You'd be pretty hard pressed to find somebody to argue that with you.

So let's go ahead and drop down to the daily and we can put some moving averages on here.

Let's put two moving averages to the daily chart.

So I tend to prefer the 50 and the two hundred.

So let's make this higher timeframe one here, 200 and make it black.

And you can see we are well above that and let's make this one red and make it 50.

So the 50 day Emma has a little bit more to say, at least.

At the moment than the 200 does, because we are so far away from it, we went back and forth and did

nothing until this last shot higher.

Really started to take off, so that would have been your first potential set up.

And this is one that I do believe that I pointed out in a previous video, we had this resistance barrier

here at 12000 and we had this massive candlesticks.

Let's put.

Volume on.

Because if I do remember correctly, it was a large volume candlestick on a breakout, you like to see

that, you like to see that this resistance barrier, this recent high here, had been broken not only

significantly, but with real force.

So with that being the case, that was your first sign that we were going higher and that this could

have actually been important.

Notice again, right here at a breakout above 20000 on high volume.

This was an area that caused some problems for a little bit.

That obviously would catch a little bit of attention.

Notice how we broke above the top of the Bollinger band, remember, I talked about the squeeze in the

Bollinger Band, we were slowing down.

We were going sideways.

So you don't really I mean, you can go back and forth with this, but you don't really worry about

the fact that we broke above the top of the range.

That doesn't necessarily mean anything other than we are picking up momentum.

So simply put, you had a set up down here and another set up here and you could have taken your profit

as soon as we hit the middle part of the Bollinger band.

Know, that's a pretty big.

Trade here, but notice how.

We didn't even hit the Bollinger band until we were here, so you could have put your stop loss below

30000, so that may have kept you in the trade a little bit longer, at least.

Nonetheless, it is.

Obviously, a very bullish move now.

There are going to be all kinds of potential confluence on this chart, so let me go ahead and you can

click on this high button here and it will hide each of these indicators on the chart.

And then you just click that again and it shows back up, as you can see.

So let's draw a fib.

Fibonacci retracement.

And let's draw it from the absolute bottom.

To the initial rally, you can see that we pulled back to the thirty eight point two, which also coincided

nicely with thirty thousand, then on top of that, a 50 day, Emma, probably a little bit lower at

that point as we've added more information, but would have shown you that it's very likely that we

have a bit of support there.

The Bollinger Band, we are piercing the bottom of it in an uptrend.

That's normally a sign that you want to think about going long as well.

There is an argument to be made for.

A little bit of a triangle.

You could say that this was a triangle.

It's not the prettiest triangle, admittedly, but it is.

The triangle pattern.

He got broken to the upside, so that would have you interested as well, I mean, quite frankly, there

were multiple reasons to think that we were going to go higher.

I would also point out that.

You know.

You had rectangles and you'll see this a lot.

So, for example, in a rectangle that we broke down from, that's a very sign, right?

That's a sign that, hey, maybe we're in trouble, but.

You previously had a rectangle here.

So that offered support and that's exactly where we bounced from.

You see that all the time, you see that type of behavior where we go from one rectangle to the next.

Notis.

The high volume, the another thing that I would point out is when we pulled back to here to the 50

day Emma, we formed a hammer.

We broke here from there.

We formed a hammer from there after the initial break out.

So that tells you that the buyers are still in business.

And we did, of course, shoot to the 40000 level in the next area.

Now, as I record this, we don't know how this candlestick plays out, but let's just say it ends up

like that.

That tells you that you could see a little bit of a pullback towards 40000.

That's not necessarily a sell opportunity then as an opportunity to pick up a bit of value.

Remember, you're paying for this just like you are any other asset or any other thing that you can

buy.

The analogy would be, do you want to buy this Lexus or BMW or whatever at forty thousand, or would

you rather pay forty seven thousand for it?

All things being equal, it's the same BMW.

Well, you want to pay 40 if you can.

So that's the idea of buying a pullback, literally finding things on sale.

Now.

It's hard to imagine a scenario in which you would want to be a seller, but clearly if you break down

below 30000, you will have broken through massive volume, massive support.

And then at that point in time, you have to be concerned about the trend.

But really, nothing on this chart suggests the trend is going to end anytime soon.

Notice this hammer here.

We pulled back to the 50 day Emma.

It wasn't successful right away, but it did work out eventually shows you that there's interest.

I should say it's probably the best way to put that.

Notice that at this resistance level, when we rallied here, we formed this big, long legged dog,

broke down the bottom of it, and then came down to fill this area here to go looking towards that previous

resistance.

That's that whole market memory, support and resistance.

These things all matter.

These things all come into play.

You know, the thing is, is none of them work 100 percent of the time.

But in general, it will keep you on the right side of the trade.

And that is what matters.

You have a bit of a double top right here at Resistance, we formed a hair shooting star excuse me,

and then a hanging man right here.

Both of those are valid cell signals.

There's that impacter, if you will.

And we filled that target without too many issues.

You see this time and time again.

I know it seems simple.

The the trick is, is recognizing it while we're going through it.

Here's a double hammer on a pullback that suggests that we're going to at least come back and try.

And that's where we formed that candlestick there.

So as you can see, time and time again, you do see patterns and they do give you a bit of a heads

up, but you have to trust these things to work.

That's the thing.

It's a little bit different in the heat of the moment.

But you get this break out here, you have to trust that it works.

You have to be willing to put your stop loss, like halfway in the rectangle and just let it go, you

know, aim for a target target 200 DMA makes a lot of sense.

This was an area where we seen some consolidation.

So we pull back.

That's fine.

Markets don't go in one direction forever.

Notice how this was a very massive candlestick to the downside, high volume, but the next candlestick

was green and had even more volume, that tells you you've got some issues.

There's a hammer here, shooting star there.

There's a lot of confusion.

Eventually you break out of this area and that tells you that you're more than likely going to continue

to go higher.

These are all things we need to pay attention to.

On the charts, you can save yourself a lot of headaches if you just listen to what the market is trying

to tell you, the market is trying to tell you what it wants if you are there to listen.

So here we go.

This is the RSI.

Right at the forty thousand level, a bit overdone, we broke down to a fresh, low, lower, low.

Well, it's a sign that maybe it was time to get out down here.

We bounced from there.

We're not overbought.

We're not oversold.

So that's a fair signal in the sense that, you know, it's not trying to reach too far now that we've

done this.

We are in the overbought condition.

And you have to be a little bit hesitant to pay all the way up here.

That goes back to perhaps buying on value on a dip.

So, you know, the RSI is telling you maybe you don't want to be a buyer here.

It's not the be all end all signal, but.

Markets do correct, and when they correct, they give you plenty of opportunities.

I highly recommend that you go through and find any charge you can.

It really doesn't even matter the market and use these indicators and see, you know, what you could

have looked at for a signal to go long or short.

Now, in the rest of this module, I'll be talking about various cryptocurrency and I'll show you all

kinds of examples of how you could have analyzed the chart and got involved.

Clearly, once these moving averages spread out and we break out above the previous low, there has

been almost no signs whatsoever of weakness, with maybe perhaps the exception of this little bit of

consolidation where they had to absorb the gains.

And the next video, I'll walk you through a theorem and show you several setups there as well.