All language subtitles for 10. Example 10 - How to Trade Chainlink (LINK)

Hello and welcome back to cryptocurrency trading masterclass by wealthy education.

In this video, we'll take a look at chainlink and potential trades that you could have taken.

Now, the first thing that you should notice, obviously, is a trend.

And it's pretty straightforward here, straight up in the air.

So I'm going to have some trouble finding levels on weekly charts that are truly going to matter for

the most part, I mean, don't matter every time they get a get near them.

But obviously we have blown through quite a few potential areas of concern and or important.

And time will tell whether or not they end up being important down the road.

As a general rule, they should, assuming that we even get back our.

So let's take a look at these areas, obvious resistance, support.

I'm going to make that.

Fifteen dollars.

Nine here being support and resistance and four and a half being resistant multiple times.

Let's go ahead and make this this looks like it's going to be roughly 20 dollars.

Here it is.

OK, so here's the thing.

In a situation like this, it's a it's a new market.

It's a relatively new market.

So it's difficult to get overly excited about too many of the longer term setups, obviously, unless

you're an investor and you're willing to hold on to it, obviously you've done quite well.

But let's take a look at this candlestick here.

Notice how the volume picked up again as we broke above this 450 cleanly.

So if you're more of a longer term investor, that's a signal to start buying, you could put your stop

loss maybe at four, 40 or so.

There's no way that you could have known, hey, in next few weeks, we're going to get all the way

to twenty dollars.

You do have a little bit of action here at nine, though.

That was resistance and it should be support.

And you can see we form this hammer here, which was a buy signal, just like this one was.

When a market and remove these candlesticks, but when the market does this.

It's in an uptrend, so you shouldn't even be looking at selling.

It's either you are long or you are on the sidelines, long meaning buying.

So let's get down to the daily.

So look at this big, huge bullish candlestick that broke above the nine dollars level.

This was part of that hammer on the weekly chart.

Nice volume.

Certainly shows that there is by an interest, you just put a stop loss on the back of it, you had

a couple of rough weeks and then eventually it took off.

Let's put.

R. Bollinger Band Indicator.

Notice how this same area we had broken down below the Bollinger Band, so that was a sign that we were

probably going to at least revert to the mean.

But with it being significant support, it's not overly surprising to see that the market pulled back.

This would be against the grain here, against the trend, but this shooting star is a negative sign

and we did reach the other side of the Bollinger band, bounce up, and then broke down back to this

major support level.

So that's worth paying attention to.

When it dropped down to the hour rather quickly in this video, just simply because you know what I'll

even do four hours instead, just simply because we don't have enough history to really delve into without

looking more on the shorter time frames.

It's hard to get a feel for a market when you only have a year's worth of data, unless you're looking

at short term, there's a hammer.

They're breaking through the Bollinger band.

Nice bit of volume there.

Touches this area here, which was previous resistance at 18 and then rallied.

So that's a nice set up.

Same thing here, you formed a hammer breaking through the bottom of this Bollinger band set up.

Not as impressive volume wise, though, so, you know.

It's the right ideas, the right train in the sense that we're in an uptrend, but it's not as big of

a possible setup as some of the previous ones were.

So.

This is an interesting setup because this hammer formed right here where we had seen support and we

were way overdone, done, we ended up rallying quite nicely for a nice recovery.

Longer term, that that trend did reassert itself, but you clearly had an opportunity to make some

money.

Notice how.

The recovery once we broke out of the Bollinger band, if you remember where it was in the last little

bit, I did.

It was at the sixty one point eight where we formed, I, I struggle to call this a hammer because the

real body is a little too big.

But breaking down below it does show a change in attitude.

And you can see clearly you got back down to the bottom.

So certainly something worth paying attention to.

So here is a set up.

Based upon Fibonacci.

Reached down towards the 50 and then took off to the upside on a hammer.

Nice little set up.

I also see.

Bit of a descending triangle here, which.

Actually.

Went profitable for a while, but then failed, we went back to the upside, so probably.

Would have either gotten taken out for a small loss or perhaps a movie stop loss to break even once

it retests that area.

I mean, clearly had an opportunity to make some profit, you know, would you have taken the profit

there?

Maybe, maybe not.

But, you know, I wanted to show you that not every setup works.

And that's something that you do need to understand while you can find a lot of profitable setups.

Sometimes things happen in the market that just they just happen.

It might be news flow.

It might be just a random event.

Maybe it's just a big player coming in to remove their positions and it moves the market against you.

It just is what it is.

But that's what your stop loss and your money management regimen is for.

On the occasion that something doesn't work out.

So here's a symmetric triangle, we break out, we come back and we test it for support, we rally,

we almost get the target.

I mean, that's pretty close.

We come back, we test this area again, nice hammer.

And it goes back up and you finally fulfill without any doubt whatsoever that set up.

So let's put the magic, Deon.

Notice how we got up here at fifteen dollars, formed a couple of shooting stars in a row, had this

McGeady cross, I don't know if you would have shorted this, but clearly, if you were long, that

would have given you plenty of opportunity to get out because you would have gotten.

Bearish or at least warning signals, just like this magnetic cross over here, right here and support.

Take this trade off until it crosses again, pretty straightforward.

This is interesting.

There was a little bit of a divergence.

And that did lead to a breakdown to here where we formed a hammer that eventually crossed to take off

to the upside.

So I hope that you've seen plenty of examples that make you realize that this is the type of analysis

you need to do, quite frankly, you can do this with any market.

But I would definitely encourage you to go out, look at all the crypto charts on various time frames

that you can start on the weekly time frame and work your way down.

It builds confidence and builds that muscle memory of identifying setups.

And then it also, you know, it shows you how trading works in the real world.

You want to see a couple of reasons to be involved.

You don't fight the trend now, is it with the trend?

Is that support or resistance is your first two questions.

Do you have another indicator, maybe a Fibonacci level or an RSI reading that gives you more confidence?

Maybe you have a triangle forming, you know, at least three things and then you can start to put your

money to work.

So with all of that being said, that is the end of module three.