Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated:
1
00:00:02,340 --> 00:00:06,870
Hello and welcome back to cryptocurrency trading masterclass by, well, the education.
2
00:00:07,740 --> 00:00:14,370
We now begin module two profitable patterns for crypto trading in this video, how to profit from triangle
3
00:00:14,370 --> 00:00:14,910
patterns.
4
00:00:15,330 --> 00:00:24,510
So a triangle pattern is simply when a market starts to squeeze, draw a couple of trend lines.
5
00:00:24,990 --> 00:00:31,250
And essentially what happens is the market gets tighter and tighter and tighter.
6
00:00:31,590 --> 00:00:35,460
The idea is eventually it squeezes in one direction or the other.
7
00:00:36,280 --> 00:00:40,760
This is what's known as a symmetrical triangle because it is symmetrical.
8
00:00:41,460 --> 00:00:43,380
This is a descending triangle.
9
00:00:44,130 --> 00:00:47,760
And this, of course, is an ascending triangle.
10
00:00:47,760 --> 00:00:53,970
So they all feature the same thing where the buyers and the sellers start to kind of squeeze the market.
11
00:00:54,750 --> 00:00:56,440
But the attitude is different.
12
00:00:56,460 --> 00:01:00,060
So, for example, in this one, it's a 50 50 shot.
13
00:01:00,450 --> 00:01:03,150
What that means is that.
14
00:01:04,140 --> 00:01:10,950
There is no clear winner, you have both buyers and sellers squeezing the market and eventually one
15
00:01:10,950 --> 00:01:16,320
of them gives way when them loses and the market continues to go either higher or lower.
16
00:01:17,290 --> 00:01:21,770
There is the descending and a descending favors the down side.
17
00:01:22,420 --> 00:01:26,310
This is because the sellers are becoming much more aggressive, pushing the market down.
18
00:01:26,320 --> 00:01:28,120
But there is a certain support level.
19
00:01:28,330 --> 00:01:31,580
So the idea is eventually the support level gives way.
20
00:01:32,560 --> 00:01:35,350
The people who were buying give up and it breaks down.
21
00:01:35,500 --> 00:01:36,880
And then there's the.
22
00:01:38,010 --> 00:01:42,250
Ascending triangle, it's the exact opposite of the descending.
23
00:01:42,270 --> 00:01:50,130
It's typically bullish and what happens is the sellers continue to push at the same level, eventually
24
00:01:50,130 --> 00:01:54,620
getting broken through, and then they have to cover their shorts and the buyers overwhelm them.
25
00:01:55,690 --> 00:01:56,320
So.
26
00:01:57,820 --> 00:02:05,260
A couple of things that make triangles kind of unique and great trading patterns is the fact that the
27
00:02:06,610 --> 00:02:09,250
market, everybody recognizes them.
28
00:02:10,390 --> 00:02:16,130
They are very obvious for a lot of different traders to pay attention to.
29
00:02:16,150 --> 00:02:20,140
And with that, it's kind of a self-fulfilling prophecy.
30
00:02:20,740 --> 00:02:22,090
So with that in mind.
31
00:02:24,700 --> 00:02:28,600
On higher time frames that become even more effective, more people are watching them.
32
00:02:30,100 --> 00:02:32,320
It's just simple compression of the market.
33
00:02:32,320 --> 00:02:35,090
Eventually there's a decision made and you make a move.
34
00:02:35,520 --> 00:02:41,170
Another thing to keep in mind is they have a built in measuring stick, as it were, from the top to
35
00:02:41,170 --> 00:02:42,880
the bottom of the triangle pattern.
36
00:02:43,420 --> 00:02:45,580
You extrapolate that on the breakout.
37
00:02:45,790 --> 00:02:49,630
So let's just say that's twenty dollars a break to the top of it.
38
00:02:49,900 --> 00:02:53,130
You're looking for twenty dollars from the breakout point.
39
00:02:53,530 --> 00:02:59,560
If this was, you know, two hundred dollars on a breakdown, you're expecting a to drop two hundred
40
00:02:59,560 --> 00:03:01,410
dollars from the bottom of the triangle.
41
00:03:01,930 --> 00:03:07,810
And if this was sixteen hundred dollars, regardless of the direction you'd be looking for sixteen hundred
42
00:03:07,810 --> 00:03:09,350
dollars on a symmetrical triangle.
43
00:03:10,030 --> 00:03:12,280
So let's take a look at a couple of examples.
44
00:03:13,060 --> 00:03:21,980
And here in the Bitcoin USDollar market, here is a triangle.
45
00:03:22,480 --> 00:03:25,000
This is a symmetric triangle.
46
00:03:26,880 --> 00:03:32,420
Another thing that, you know, you may want to keep in mind is you do not want it to run out of time.
47
00:03:32,430 --> 00:03:38,730
So what that means is you don't want it to reach the apex, because if it does, then it's just the
48
00:03:38,730 --> 00:03:40,020
market running out of steam.
49
00:03:40,500 --> 00:03:42,940
Well, in this case, that clearly wasn't the case.
50
00:03:43,380 --> 00:03:46,290
We did not reach the apex and break through it.
51
00:03:46,290 --> 00:03:54,120
So you can extrapolate the move here, the height of the triangle, and you can see Bitcoin went right
52
00:03:54,120 --> 00:03:55,650
to that level.
53
00:03:56,850 --> 00:04:03,120
Ethereum, so this is an ascending triangle on the daily chart, you can see that we had.
54
00:04:06,010 --> 00:04:14,530
Pretty significant resistance there we broke before we got to the apex, and in general, you want to
55
00:04:14,530 --> 00:04:18,940
see no more than about 80 percent of the triangle filled.
56
00:04:18,940 --> 00:04:20,450
You want to see a breakout before then.
57
00:04:20,980 --> 00:04:22,750
We did break out over it.
58
00:04:23,140 --> 00:04:27,580
And you can see not only did we get the target.
59
00:04:28,950 --> 00:04:32,080
But we also really just kind of took off to the upside.
60
00:04:32,100 --> 00:04:38,590
You can see that there was a little hesitation there and then we continued much further.
61
00:04:38,820 --> 00:04:41,280
But nonetheless, you did hit your target.
62
00:04:42,570 --> 00:04:46,670
And here in Catano, this is a descending triangle.
63
00:04:46,830 --> 00:04:50,400
You can see that here on the 30 minute chart.
64
00:04:53,060 --> 00:04:53,990
We formed.
65
00:04:56,840 --> 00:04:57,800
This triangle.
66
00:04:58,810 --> 00:05:00,820
You can see from top to bottom.
67
00:05:02,250 --> 00:05:02,850
We did.
68
00:05:03,910 --> 00:05:05,180
Make the measured move.
69
00:05:05,830 --> 00:05:15,310
Now let's talk about a couple of other things that you can kind of throw in to the trading of these
70
00:05:15,310 --> 00:05:15,960
patterns.
71
00:05:17,070 --> 00:05:23,010
So the first thing is when you get a triangle and it really doesn't matter, the shape, the idea is,
72
00:05:23,010 --> 00:05:27,540
is that you get the breakout, you know, let's just say the symmetric triangle breaks to the upside.
73
00:05:27,550 --> 00:05:29,870
Well, you put the stop loss on the other side of the triangle.
74
00:05:30,300 --> 00:05:31,890
You're aiming for the height of the triangle.
75
00:05:31,900 --> 00:05:32,620
That's obvious.
76
00:05:33,090 --> 00:05:40,410
This is kind of handy because like in this case, in Cordano, you had this amount of you know, this
77
00:05:40,410 --> 00:05:42,090
is roughly four percent.
78
00:05:42,900 --> 00:05:48,720
You know, your stop loss would only be about a cent, you know, and you and you never really ran into
79
00:05:48,720 --> 00:05:49,110
trouble.
80
00:05:49,110 --> 00:05:50,850
You're on the other side of the triangle.
81
00:05:52,260 --> 00:05:53,580
No issues whatsoever.
82
00:05:53,580 --> 00:05:55,110
And you continue going lower.
83
00:05:55,230 --> 00:05:59,130
So it's kind of a nice little mechanical way to trade this.
84
00:06:00,140 --> 00:06:05,120
There are some things that you can do to perhaps try to.
85
00:06:08,550 --> 00:06:11,820
Maybe bring your hit rate a little higher.
86
00:06:12,810 --> 00:06:14,960
So this is a nine moving average.
87
00:06:15,030 --> 00:06:16,770
I like using the nine on the short term.
88
00:06:16,860 --> 00:06:20,670
You can see that we had broken through this and we are following that right along.
89
00:06:21,120 --> 00:06:23,790
So it's a nine period moving average.
90
00:06:25,540 --> 00:06:31,450
You could also make an argument that this was previous resistance, so, of course, its support here,
91
00:06:31,510 --> 00:06:35,650
support gets broken, should turn into resistance, and it did.
92
00:06:37,110 --> 00:06:42,930
A theory, this is a nice large round number right around the six hundred dollars level, so that in
93
00:06:42,930 --> 00:06:45,230
and of itself makes it interesting.
94
00:06:47,010 --> 00:06:49,920
You could put another moving average.
95
00:06:51,960 --> 00:06:54,880
So let's go ahead, exponential moving average.
96
00:06:54,900 --> 00:07:01,950
This is the daily, so I'm going to use a little bit higher time frame in this case.
97
00:07:05,190 --> 00:07:07,950
Go ahead and change this to.
98
00:07:09,610 --> 00:07:15,610
Twenty, for starters, you can see that the 20 offered dynamic support, we continued to go higher
99
00:07:15,610 --> 00:07:26,620
there, you can also, for that matter, perhaps make an argument for maybe using your.
100
00:07:30,720 --> 00:07:32,760
Fibonacci to.
101
00:07:33,760 --> 00:07:34,660
From the.
102
00:07:35,530 --> 00:07:45,050
Pull back to here and see that we did, in fact, on this spot at the high end, we pull back towards
103
00:07:45,050 --> 00:07:54,830
the triangle that also matches quite nicely with the thirty eight point two percent Fibonacci retracement
104
00:07:54,830 --> 00:07:55,220
level.
105
00:07:56,450 --> 00:07:59,000
And then here on the.
106
00:08:00,650 --> 00:08:01,730
Symmetric triangle.
107
00:08:01,940 --> 00:08:03,500
Let's go ahead and redraw that.
108
00:08:12,950 --> 00:08:15,590
You can see that the Bollinger Band got Overbite.
109
00:08:16,890 --> 00:08:22,680
Got to the bottom of support, hit that middle 20 Esmay and that's where we broke down.
110
00:08:22,710 --> 00:08:28,200
Furthermore, you would most certainly want to be taking profits down in this area in a way which also
111
00:08:28,200 --> 00:08:30,570
matched up with that level.
112
00:08:30,990 --> 00:08:35,760
So you can see just how many different things you can combine with triangles.
113
00:08:35,970 --> 00:08:42,390
But quite frankly, most people just use the triangles themselves because so many other traders use
114
00:08:42,390 --> 00:08:50,160
triangles and recognize triangles as a valid trading methodology, that there are some people who literally
115
00:08:50,160 --> 00:08:51,270
that's all they use.
116
00:08:51,300 --> 00:08:57,780
Higher time frames do tend to be a little bit more noticeable and attract a lot more attention.
117
00:08:57,780 --> 00:09:03,090
And that makes sense because like on a weekly chart, you would need a lot more order flow in order
118
00:09:03,090 --> 00:09:06,060
to build that triangle.
119
00:09:06,090 --> 00:09:09,510
So certainly something to think about.
120
00:09:09,840 --> 00:09:14,760
In the next video, we'll take a look at trading breakouts with double top and double bottom patterns.
11554
Can't find what you're looking for?
Get subtitles in any language from opensubtitles.com, and translate them here.