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Hello and welcome back to Cryptocurrency Master Trading Class by a wealthy education in this video.
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I'll run you through some real life examples in the theory of market and how you could have treated
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it according to some of the scenarios that we have laid out in this course.
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So the first thing you do is you look at the higher time frame.
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I think at this point it's pretty obvious that Ethereum is in a uptrend.
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The weak form is a huge smile and it's a higher high.
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So that in and of itself tells you pretty much everything you need to know.
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And just as in the previous video with Bitcoin, I like to draw some pretty significant and major lines
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right away.
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So it looks to me based upon previous resistance and here that fourteen hundred matters, I think that's
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a fair guesstimate.
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I also recognize that eighteen hundred probably batters were approaching it as I record this so large
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round number.
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Why not.
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And you can see where the candlestick closed here for one week and then open here the next week.
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I'm going to assume that sixteen hundred matters as well.
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So let's go ahead and lay those out initially.
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So this is what I see, I see if you draw lines every two hundred dollars.
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A pattern starts to emerge and a lot of times you'll see this in a market, not always, but sometimes
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you'll see this in a market where it just.
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You just look at it like, wow, it seems to be attracted to 200 dollar increments or ten dollar increments
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or whatever it is you're talking about.
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So let's go down to the daily chart.
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Let's put our moving averages on first.
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Do 200.
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You to hear well well above that, as you would expect, looking at the chart.
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We're well above the 50 day M.A also, so here's the thing.
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Let's say you've missed the move and you're trying to figure out what to do.
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Where could you get interested in buying?
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Well, the first thing you can do is you can draw a Fibonacci retracement.
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And you could draw swing it up to here.
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Assuming that this is your high end, you start to look for some type of confluence and you might have
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thirty eight point two right around here, around twelve hundred, and it's interesting because you
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also have the 50 day M.A they're coming into play.
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So.
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And while you can't necessarily say that quite yet, you can see that if we turn around, that might
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be an area to pay attention to.
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Every two hundred dollars seems to be an area to pay attention to, for that matter.
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You got your Bollinger bands now let's take a look at some potential trades.
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This is one of those scenarios where the 50 day Emma offered support and we did squeeze.
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And as we started to widen out, we were going higher.
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Higher is important.
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You're widening out.
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You're picking up the.
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Momentum, you're picking up the volatility and you're going in a specific direction.
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Look at the volume on this candlestick.
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That thing just took off.
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That's exactly what you want to see.
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We rallied, we came back to the moving average you could have just bought there as well.
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It's a stretch to call that a hammer, but it does suggest that there are buyers underneath, obviously.
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So.
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Let's go ahead and get rid of the Bollinger bands for now, just hide those.
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Take a look at this big move and then this pull back.
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That to me, it looks like it's probably a nice Fibonacci setup.
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And it was.
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Probably come back here to this swing low, as you can see, we reached the 50 percent fib and then
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turned around, ended up forming a double bottom.
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That, of course, would attract a certain amount of attention by itself.
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Once we break above the 50 day estimate, it suggests that we are entering a more bullish phase and
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then off we go.
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You can also see.
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A bit of a triangle.
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That triangle gets broken to the upside, the measured move is for the height of the triangle, as you
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know.
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And we clearly got that you could see we kind of paused for a minute and then took off again, so good
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stuff there.
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Let's pull up the Magdy.
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So this was giving you a heads up here that we were perhaps running out of momentum, but notice, just
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as we crossed above the 50 day, Emma, we got this cross here and then shortly after that went positive
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with the histogram.
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That was a good sign.
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We got an increase in volume here as we were breaking down and we got across there.
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Histograms start to go negative.
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Those are all bad signs.
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If you're wanting to buy, that is.
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You can see that we were oversold here, a little bit of a volume pick up shortly thereafter, the moving
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average on the moving averages on the McGeady cross, that's a signal to go along.
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Then once you cross to zero or zero line, that is even more we cross here.
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So that is a trade from about here to here based upon the Makdisi.
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Notice this perfect little hammer right here on the two hundred day Emma.
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And the 50 day, Emma, we've got that golden cross right at the same time, you can't tell me that
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people weren't noticing this as it happened.
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So I certainly think at this point you can see how a confluence of all of these things coming together
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really comes into your favor if you're willing to wait for a couple of reasons to take a train.
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So this entire time here.
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And really, from about this point on, it became pretty obvious that we were in an uptrend and we probably
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go higher, you do not look for selling opportunities.
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One of the biggest mistakes the retail traders make as they see this and they go, hey, it's gone too
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far.
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I'm going to start selling it.
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Well, markets can remain irrational much longer than you can remain solvent.
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That's an old expression.
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And that's because they can do crazy things.
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You know, this is a little bit more manageable move than the Bitcoin move has been, but both have
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just been on an absolute tear.
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So with that in mind, you look at areas like this, this was previous resistance.
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It could be support.
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If we pull back there, we get a hammer, something like that.
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That is a potential buying opportunity.
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Notice this shooting star like Candlestick, that's technically a sell signal.
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But look at how bullish we were.
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You don't want to you don't want to try to fight all of this.
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That just tells you, hey, maybe take profits, maybe move your stop loss up.
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You know, if you had taken any of these hammers here, you can remove your stop loss up to this area
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here when it showed that we were going to struggle.
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Nonetheless.
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It just showed you that you were probably going to need a pullback and a pullback is perfectly normal
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and healthy, you can't fight that the entire time.
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You should be checking Bitcoin Bitcoins rallying as well.
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So.
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It gives you the all clear with crypto, so to speak.
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Plenty of potential trades.
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Here is what ended up being a little bit of a countertrend trade.
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Again, not a big fan of countertrend trading.
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It can be done once you have some experience, but that was a triangle that broke to the downside.
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This was a nice ascending triangle.
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Remember, the fires are becoming more aggressive.
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We finally break to the upside and we clearly got, you know, the measured move from that as well.
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I mean, there's no doubt about it.
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So.
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With that being said, once you pick a direction, meaning that you have a trend, then it's your job
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to let the market tell you when it's time to follow that trade.
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You don't buy up here just because you're in an uptrend.
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You want to find some value or you want to see it break resistance.
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We're not really that resistance.
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Eighteen hundred probably will be, but that's a guess.
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And we don't trade on guesses.
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We are extended, there will be a pullback, it's inevitable, but at that pullback, you need to be
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thinking, you know, has something changed in the markets?
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Are we going to start selling off cryptocurrency or are we simply taking a break?
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As long as we stay above the 50 day, Emma, a lot of traders won't short anyways, they don't really
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care what's going on.
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That's something to keep in mind as well.
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So you can see that a theory of trade is very much the same way as you would expect the Bitcoin markets
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to trade.
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In the next video, I'll take a look at several examples and coin and show you how you could have approached
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several different set ups in this market.
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