All language subtitles for 7. Stop Placements & Signs of Momentum Loss

And this video will talk about star placements and signs of momentum loss.

So if you're in a trade, you need to know where it is you want to get out, where things could prove

you wrong or for that matter, where the market is moving against you even when you are in profit.

So let's take a couple really simple ways to look at the market.

Let's go ahead and put the volume indicator on that will give us an idea of momentum.

Like this candlestick here, for example, huge volume shot to the upside, so clearly, if you're going

to take a trade based upon that right here at the bottom of this candlestick is a good stop loss.

We rallied quite a bit.

You can see that there is some support there that could be your next stop loss.

So once the trade moves in your way, if it breaks back down, then you got out with a small gain.

Some traders will.

I do something very simple once the trade moves in their way or in their direction, you see this high

here, that stop loss.

Once we break that high, then you move your stop loss closer to that and so on or on the downside,

if you're short up here, maybe based upon this very bearish candlestick, we fell, we pulled back.

And then as we cleared this low, confirming this switch in trend, they'll put their stop there.

We pulled back.

They put their stop there after we broke down.

That's a very common way.

Of course, you need a trend for that to happen.

But there are some other things to pay attention to that are quite.

Obvious.

So on the way down, this massive candlestick here in Manassero, that broke the whole thing down.

So if you are short, you know, maybe you were short because of this trend line break there, that

was another reason or so.

Well, if you're short and you see this massive candlestick on massive volume.

Well, you know that if it gets broken to the upside, something's changed material materially and the

market.

So there hasn't been a whole lot to do over the last couple of weeks in this Minera U.S. dollar pair.

Because there really hasn't been a huge volume spike, if you will, or anything that's changed the

attitude of the market, yes, it's drifted higher, but pretty weak and low volume.

So that's one way you could look at it.

There are.

Also, other ways people will do it, like with Fibonacci retracement.

You know, notice how the thirty eight point two is basically the same thing as the top of that candlestick,

so that's one thing to keep in mind.

You can also.

Use moving averages.

So an indicator that you could put in there, see and Emma.

Now this is a daily so let's go ahead and make this I mean, at the very least, you don't want it to

be a 20.

And realistically, you probably want it to be a 50.

So it puts your stop right around the same place.

And you'll find that sometimes in all kind of lined up at the same area.

So I have a ripple chart polledo.

And.

There are quite a few different ways to look at volume and the trend.

So, for example, if you are already long of ripple at this point.

Remember our trend line?

This was a nice run.

From the 16th of March, all the way to the 10th of April on the 30 minute chart.

So quite frankly, there was no reason to be short of REPL any time during this.

Now, that doesn't necessarily mean that you want to be long the entire time.

If you're daydreaming, if you're investing, totally different story.

But notice, every time we pull back, and especially when we pulled back close to the trend line,

there's where your stops need to be placed.

You need to find a place that the market has to do serious work to take you out.

You don't put stop loss is based upon your account size, meaning like, you know, I'm only going to

risk X amount of dollars, but I'm going to put a big position on.

That's not how it works.

You need to do some money management, figure out your maximum loss to start with, and then you move

your stocks accordingly to what the market tells you.

In the next video.

I'll take a look at a couple of very useful and thankfully obvious patterns because it gets other people

involved, the double top and the double bottom.