Original subtitles

Hello and welcome back to Cryptocurrency Master Trading Class by a wealthy education in this video.

I'll run you through some real life examples in the theory of market and how you could have treated

it according to some of the scenarios that we have laid out in this course.

So the first thing you do is you look at the higher time frame.

I think at this point it's pretty obvious that Ethereum is in a uptrend.

The weak form is a huge smile and it's a higher high.

So that in and of itself tells you pretty much everything you need to know.

And just as in the previous video with Bitcoin, I like to draw some pretty significant and major lines

right away.

So it looks to me based upon previous resistance and here that fourteen hundred matters, I think that's

a fair guesstimate.

I also recognize that eighteen hundred probably batters were approaching it as I record this so large

round number.

Why not.

And you can see where the candlestick closed here for one week and then open here the next week.

I'm going to assume that sixteen hundred matters as well.

So let's go ahead and lay those out initially.

So this is what I see, I see if you draw lines every two hundred dollars.

A pattern starts to emerge and a lot of times you'll see this in a market, not always, but sometimes

you'll see this in a market where it just.

You just look at it like, wow, it seems to be attracted to 200 dollar increments or ten dollar increments

or whatever it is you're talking about.

So let's go down to the daily chart.

Let's put our moving averages on first.

Do 200.

You to hear well well above that, as you would expect, looking at the chart.

We're well above the 50 day M.A also, so here's the thing.

Let's say you've missed the move and you're trying to figure out what to do.

Where could you get interested in buying?

Well, the first thing you can do is you can draw a Fibonacci retracement.

And you could draw swing it up to here.

Assuming that this is your high end, you start to look for some type of confluence and you might have

thirty eight point two right around here, around twelve hundred, and it's interesting because you

also have the 50 day M.A they're coming into play.

So.

And while you can't necessarily say that quite yet, you can see that if we turn around, that might

be an area to pay attention to.

Every two hundred dollars seems to be an area to pay attention to, for that matter.

You got your Bollinger bands now let's take a look at some potential trades.

This is one of those scenarios where the 50 day Emma offered support and we did squeeze.

And as we started to widen out, we were going higher.

Higher is important.

You're widening out.

You're picking up the.

Momentum, you're picking up the volatility and you're going in a specific direction.

Look at the volume on this candlestick.

That thing just took off.

That's exactly what you want to see.

We rallied, we came back to the moving average you could have just bought there as well.

It's a stretch to call that a hammer, but it does suggest that there are buyers underneath, obviously.

So.

Let's go ahead and get rid of the Bollinger bands for now, just hide those.

Take a look at this big move and then this pull back.

That to me, it looks like it's probably a nice Fibonacci setup.

And it was.

Probably come back here to this swing low, as you can see, we reached the 50 percent fib and then

turned around, ended up forming a double bottom.

That, of course, would attract a certain amount of attention by itself.

Once we break above the 50 day estimate, it suggests that we are entering a more bullish phase and

then off we go.

You can also see.

A bit of a triangle.

That triangle gets broken to the upside, the measured move is for the height of the triangle, as you

know.

And we clearly got that you could see we kind of paused for a minute and then took off again, so good

stuff there.

Let's pull up the Magdy.

So this was giving you a heads up here that we were perhaps running out of momentum, but notice, just

as we crossed above the 50 day, Emma, we got this cross here and then shortly after that went positive

with the histogram.

That was a good sign.

We got an increase in volume here as we were breaking down and we got across there.

Histograms start to go negative.

Those are all bad signs.

If you're wanting to buy, that is.

You can see that we were oversold here, a little bit of a volume pick up shortly thereafter, the moving

average on the moving averages on the McGeady cross, that's a signal to go along.

Then once you cross to zero or zero line, that is even more we cross here.

So that is a trade from about here to here based upon the Makdisi.

Notice this perfect little hammer right here on the two hundred day Emma.

And the 50 day, Emma, we've got that golden cross right at the same time, you can't tell me that

people weren't noticing this as it happened.

So I certainly think at this point you can see how a confluence of all of these things coming together

really comes into your favor if you're willing to wait for a couple of reasons to take a train.

So this entire time here.

And really, from about this point on, it became pretty obvious that we were in an uptrend and we probably

go higher, you do not look for selling opportunities.

One of the biggest mistakes the retail traders make as they see this and they go, hey, it's gone too

far.

I'm going to start selling it.

Well, markets can remain irrational much longer than you can remain solvent.

That's an old expression.

And that's because they can do crazy things.

You know, this is a little bit more manageable move than the Bitcoin move has been, but both have

just been on an absolute tear.

So with that in mind, you look at areas like this, this was previous resistance.

It could be support.

If we pull back there, we get a hammer, something like that.

That is a potential buying opportunity.

Notice this shooting star like Candlestick, that's technically a sell signal.

But look at how bullish we were.

You don't want to you don't want to try to fight all of this.

That just tells you, hey, maybe take profits, maybe move your stop loss up.

You know, if you had taken any of these hammers here, you can remove your stop loss up to this area

here when it showed that we were going to struggle.

Nonetheless.

It just showed you that you were probably going to need a pullback and a pullback is perfectly normal

and healthy, you can't fight that the entire time.

You should be checking Bitcoin Bitcoins rallying as well.

So.

It gives you the all clear with crypto, so to speak.

Plenty of potential trades.

Here is what ended up being a little bit of a countertrend trade.

Again, not a big fan of countertrend trading.

It can be done once you have some experience, but that was a triangle that broke to the downside.

This was a nice ascending triangle.

Remember, the fires are becoming more aggressive.

We finally break to the upside and we clearly got, you know, the measured move from that as well.

I mean, there's no doubt about it.

So.

With that being said, once you pick a direction, meaning that you have a trend, then it's your job

to let the market tell you when it's time to follow that trade.

You don't buy up here just because you're in an uptrend.

You want to find some value or you want to see it break resistance.

We're not really that resistance.

Eighteen hundred probably will be, but that's a guess.

And we don't trade on guesses.

We are extended, there will be a pullback, it's inevitable, but at that pullback, you need to be

thinking, you know, has something changed in the markets?

Are we going to start selling off cryptocurrency or are we simply taking a break?

As long as we stay above the 50 day, Emma, a lot of traders won't short anyways, they don't really

care what's going on.

That's something to keep in mind as well.

So you can see that a theory of trade is very much the same way as you would expect the Bitcoin markets

to trade.

In the next video, I'll take a look at several examples and coin and show you how you could have approached

several different set ups in this market.