All language subtitles for 5. Example 5 - How to Trade Tezos (XTZ)

Hello and welcome back to Cryptocurrency Trading Masterclass by Wealth Education in this video.

I'll go through several setups and Tensas and explain how you could have treated this market from a

technical analysis standpoint.

So, as per usual, let's mark off our levels that.

Makes sense from a longer term standpoint.

So you can see the 250 level has been supportive.

Five dollars level has been resisted.

We have cut back and forth between here and 250 between two and three and a half as well.

So we may have a little bit of adjustment down the road, but as things stand right now, I think this

looks a relatively good.

Let's go ahead and make.

I got four dollars.

And let's make this one.

One even.

OK, so pretty straightforward, you can see that the market shot straight up in the air and then gave

back the gains and now looks like it's trying to go to the upside.

It clearly has shown itself to try to rally.

You could even make an argument.

That we have formed.

Higher lows, one, two, higher lows and to higher highs, so that is an uptrend in and of itself.

So let's go ahead and flip over to the daily chart.

Again, you know, this to me looks like a market that is trying to rally, let's put some Bollinger

bands on this to try to get a grasp on the volatility in the overbought, oversold conditions.

Notice how in the latest trading, it has definitely respected not only the 20 Esmay, but it's also

respected the Bollinger bands when we get a little too overdone.

Especially.

Underneath here, we broke down and it turned around as well, a couple of shooting stars.

That's the first really kind of.

Dead giveaway for me that we could be running a little bit of trouble, we break above.

An area that's been resistant form to shooting stars in a row, that being outside of the Bolinger band,

I think that all lines up for a potential sell once you get below that level.

We do.

We come back.

We even retest it and fail again.

So at that point, there isn't a whole lot more to ask out of the market.

You just put your stop loss on the other side of these candlesticks.

You probably aim for.

I'd say support here at 180.

You do hit it eventually.

It was a little bit of a bumpy ride down there, but clearly that would have worked.

Let's do some moving averages.

So we'll do the 50 and the 200.

Notice that we broke above the two hundred very shortly are very suddenly turned around to fall apart

and.

The moving average here, let's see, this is the nine.

So here we go.

Let's make that the 50.

Let's make this red.

There we go.

So you can see the 50 kind of going sideways, but notice how high the bonds are bad.

That's how the 200 day Emma was respected.

Now, as we have broken higher, we have just done the golden cross.

So that might be something worth paying attention to.

Nonetheless.

On the breakdown here.

Another thing that you would add to that trade is at the thirty eight point two Fibonacci retracement

level that we found from the move lower.

So that is yet another reason to think maybe it's time to sell.

Certainly worked out quite nicely.

Let's take a look at volume.

So you can see volume is stronger here.

That's what you want to see.

This is kind of a nice little example of accumulation.

You want to see volume rallying.

Prices falling, volume stays very consistent, we shop around and then eventually we break out on this

high volume candle here above one to 80.

Which was obvious resistance.

You could put your stop loss under the last swing low here.

And what would you aim for?

Well, you would aim for this previous support, which should now be resistance.

It was at least that day we did break a ball there, but that was a nice, tidy little target.

The volume was strong on both of these days, so really nothing to be overly concerned about.

When you.

Look at this chart, you can also see well, here's an example of.

And ascending triangle.

Right there that we broke out on high volume, so that's exactly what you want to see.

That was your target, and we hit that almost immediately, so nice little move, stop loss on the other

side of the triangle and you're ready to go.

We hide these moving averages.

And I'll even hide the volume here for a second so we can just look at pure price patterns.

Little bit of a symmetric triangle here as well, what's your target where you measure from the high

to the low?

That's basically that and you can see we got that pretty quickly.

So that's pretty straightforward.

Notice how.

We just fell off of a.

Like a shelf here, some people even call it that is just kind of like this support area, everything,

everything's going to quiet, quiet, quiet and then just break down.

That is a sign to sell.

Put it.

Stop-Loss on the other side as far as a target is concerned.

At that point, you know, in all honesty, you really didn't have a whole lot to work with back here

on this chart, so at that point you begin to look for candlestick patterns that tell you that maybe

you're in trouble as far as you know, will it go lower?

This hammer right here is the ultimate sign.

But you can see hammer their hammer their hammer there.

So you had plenty of signs that, hey, maybe they're going to fight here.

Nice little trade, about eighty seven percent that you could get on it.

And as you can see, Tasos is very erratic, so.

You have to be willing to put up with a lot of volatility, that's another thing I probably should point

out here, is that, no, the crypto that you're dealing with because some crypto is much more volatile

than others, Tasos, for example, is much more volatile than REPL.

Bitcoin, it's not even necessarily so much more volatile than some of the other ones, it's the fact

that it's so expensive.

You know, as I recall, this bitcoins, forty six thousand dollars.

So a one percent move.

There is going to be much more expensive than a one percent move, you know, if you own an entire coin

here, obviously.

So that's something to keep in mind as well.

Obviously, you need to position your size for that particular trade at this point, if you were to

to get long of this market.

So here is it's not really a candlestick formation or anything that we had talked about previously,

but.

These are the type of things you need to look for.

Well, notice that we have failed on the daily chart to break up of these two wicks, and if you extrapolate

it out, you can see that there was.

A little bit of resistance there previously and there so what happens if you get a candlestick closes

above her?

Well, then it's a buy signal and you start to look for each one of these areas over here as potential

targets.

You know, then you have to ask yourself, well, where do I put the stop loss?

Really, at this point, I probably would have to drill down to a shorter time frame, because if you

put your stop loss on the other side of the candle, your risk reward just isn't there.

You might be risking, in this case, something like 50 cents to pick up 10.

Well, that doesn't make any sense.

You want to make a bigger move, so then you drill down to something like a half an hour chart.

Well, at this point, there's your high.

So if you can break above there, stop loss here at three 20, get in at three forty one, then you

can search about three sixty 380, it becomes much more palatable.

Just something to keep in mind.

Now, having said that.

This is not a marketplace, it's very easy to trade short term because it does shop around so much.

So make sure you keep in mind that, you know.

What's its average move like, something like Bitcoin is a little easier to trade because it may move

a thousand dollars an hour.

This has such a micro movement that and a lot of Wick's.

So it kind of tends to make itself more of a swing trade, which is when you're buying the swing high

or the swing low, you're selling, you know, up here, buying down here kind of thing, hanging on

a little longer.

Even though it might only be seven or eight cents, it tends to lend itself a little bit more towards

that type of trading.

So certainly you want to beware of the attitude of the market you're dealing with.

So with that in mind, the next video is going to feature Trun and I'll show you several different scenarios

to trade in that market.