All language subtitles for 7. Example 7 - How to Trade Cardano (ADA)

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

I'll walk through car to see if we can find some decent setups here.

Now, you'll notice this market doesn't have a ton of long term history and it's also in the midst of

being a runaway market.

So this will be very interesting to see if there were signs that we could have gotten involved in what

has recently been a six hundred percent gain in this marketplace.

Well, the first thing you do is you look for any support or resistance and you can see that we did

try to rally at that point, but struggled.

To get above the 40 cents level.

And.

You know, we broke through it, we rallied, and then we just spent.

A good two years, just kind of hanging about the five cents to 10 cents area, really looked like it

was going to go nowhere, but that was those were pretty tough times for those crypto traders.

They were you know, the smart ones were just simply.

Building up their portfolio and you can see it's paid off quite nicely.

So.

The very first thing that I would point out is that there is a certain lack of clarity, but you can

see lots of wigs here.

So one would expect that if we revisit this area, there might be a little bit of noise and it's twenty

five cents.

So I suppose there's a certain amount of psychology involved in it.

And you can see that we pulled back to their defiant support.

It wasn't like it offered a ton of resistance on the weekly chart.

But clearly, it respected on the way back down.

So, you know, you can leave that line there, I suppose you can also put a line right here.

A 10 cent.

I say that because of this area here, you can see that it was attracted there as well.

OK, so.

You see, volume was almost nothing before 20, 19 has been picking up as of late.

Strapped down to the daily chart, things become a little bit more manageable here.

So the first question most of you are probably going to have is how could I have made this move?

Well, I've been involved in this move.

There's a couple of different things I see here.

First thing I see is.

There was a triangle there.

That broke to the upside.

Pretty significantly, you know, once you got through these couple of candlesticks.

Now, the thing that I would point out is that we have been going sideways and doing nothing for a while

and then started to see the volume take off, and I'm willing to bet.

That the Bollinger bands will show a familiar setup and you can see we did in fact, get a break about

there, got a little bit of a pullback.

But if you put your stop loss on the other signs of the squeeze, the other side of the squeeze, you

would never anywhere near being in trouble.

And then you got the same set up again, volume picked up and you've really been off to the races sent.

You broke through the twenty five level on increasing volume, pulled back form this hammer, which

then in turn ended up being part of a larger triangle and we've taken off.

Another potential set up that I see.

Go ahead and hide the Bolander band.

It's based upon this candlestick here, so we have broken up of the 40 cents level now, remember,

40 cents mattered because that was that attempt there to recapture the market when we first started.

So now that we have taken out 40 cents, notice this candlestick.

It's a dodgy if you break the top of it, it means something, it means that we are going to continue

to push higher and it's just been taken off since then.

Now, the problem that you have, and this is maybe a lesson in.

What not to do.

You know, if you get into the trade down here, like, for example, you take the break of this, you

put the stop loss on the other side of this Doce, and that's fine.

You're fine.

Nothing, nothing to worry about.

But unfortunately, far too many traders and this seems to be especially true with crypto traders.

They see something like this and they want to buy.

But what's going to happen is that sooner or later, you run out of momentum and you fall.

Markets can't do this forever, not even crypto.

So if you were not involved at this point, you're looking for a pullback, you're looking for a place

that makes sense to perhaps look.

Remember, the market likes big figures.

There's a certain amount of psychology to it, so 50 cents might be in an area where you might be interested

in you could also.

Take a look at this at this most recent move, you could say, OK, well, I want to buy it if it gets

somewhere around half.

So that's fifty five cents, sixty one point eight fifty cents.

That's another reason to think that the 50 cent level might be important.

Let's put some exponential moving averages.

Well, let's just put some regular moving averages.

I guess this is the Daily.

So.

Let me go ahead and make this red and make it 50.

And we'll make this two hundred.

Make it black.

OK, so the two hundred's not even in play, we did get across in a spreading of the moving averages,

so that was the beginning of your trade.

Kind of a moot point now, but clearly you are seeing that the longer term traders had been involved.

So the question is, what kind of action do we get?

Do we go a little higher and then maybe drift lower with the 50 day Emma trying to come in at the 50

cent level?

I think it makes quite a bit sense.

Do I know it's going to happen?

No, of course not.

Another thing you need to be aware of.

Is this could go to two dollars, you just don't know, but what I can tell you is if you.

Buy it up here after this type of move.

Odds are, and that's all you're doing, is you're playing the odds that you're going to get you're

going to find trouble doesn't mean you won't be fine a few months down the road or whatever, but there's

no need to tie.

You're trading capital up.

You can see that we have been outside of the volunteer band, we're starting to fade back into it,

that's another sign that maybe we're going to roll over.

So here's how Bollinger Band squeeze, and there's that familiar break out.

We take off, like I said, here's another example and then there's this hammer.

So that brings up the twenty five cent level.

We break this resistance barrier and then we come back, we form this hammer right off the middle of

the Bollinger Band.

Break the top of that candlestick.

Put your stop loss on the other side of it, you never find any trouble whatsoever.

This is interesting because the two hundred day e-mail has held a couple of times, and what's even

more interesting to me is that there was a hammer right here and then right here at the bottom of the

Bollinger band.

So a lot of ways Cardno was screaming that it wanted to go higher over the longer term.

You can see that we had the golden cross here.

And we never cross back over, so technically, if you're a.

Moving crossover.

Moving average crossover system trader, you've never gotten out, you're you're in at roughly five

cents and you're hanging on to seventy five again, that's going to be more of a longer term believer

type of situation.

But clearly, you can see how that worked out for them.

Here is a pattern that I find interesting, and that's because it's actually a failure.

You know, remember, I had mentioned at one point that sometimes a failed pattern is worth paying attention

to.

So look at this ascending triangle, this tells you, hey, we should be going higher, but notice this

massive shooting star at the 10 cent level, we broke back into the triangle.

Not typically when you get a break out of a pattern and you go back into it, that obligate the whole

thing.

And quite frankly, a lot of times you see the exact opposite happen.

So if the buyers have been pushing and pushing and pushing and then they finally get broken through.

What do you think happened?

What happens is everybody in this area of the trade and this area up here are all gradually losing money.

So it was a nice setup.

And then you can see that down here we did find a little bit of support make sense, that was an area

where the market had bounced from.

So that is a trade from a failed signal.

You do get those occasionally.

Nonetheless, this is a market that offers plenty of opportunity down the road.

But again, you don't want to pay seventy five cents for Catano when exhaustive moves like this almost

always pull back and a lot of times pull back rather quickly.

So let's say you can get in at 50 to.

Well, that's a lot better, it gives a lot more runway to pick up profits than pain all the way up

there.

So with that in mind, you can see how that was traded and how we could even use a failed pattern to

place what ultimately would actually end up being a countertrend trade, although that's not necessarily,

you know, what we were trying to accomplish.

But but clearly, you know, it looked like the market was ready to take off and that it failed.

In the next video, I'll talk about trading steller.

And, of course, we'll look for several particular set ups that you could have used in that market.