All language subtitles for 8. Example 8 - How to Trade Stellar (XLM)

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

run through some examples on Steller.

This is the weekly chart where I always start and I'm going to lay out some obvious support and resistance

levels.

See, 20 cents, I think, makes sense right there.

Thirty cents, I think, makes sense there.

Ten cents makes sense just because it's the next.

10 cent increment, a lot of times you can lay that out and you'll you'll see that pattern play out.

It's 10 cents.

We'll try another 10 cents, see what happens.

And then up here.

Let's make this.

Forty cents.

So the first thing that I would point out is that there was a setup on the weekly chart right away,

we broke through this support level here.

This was a rectangle.

That measured 10 cents, so breaking down below the bottom of it, your target would be 10 cents from

the breakout and actually really the support extended down to nine cents.

So you could have aim for nine cents.

But I think 10 cents was good enough.

Your stop loss would have gone right here halfway through the rectangle, like we have spoken about

previously.

Now, let's go to the daily chart.

Notice this stair stepping pattern.

Now, remember, 20 cents was an area of previous support.

So when we did break out, it makes sense that that would have been the initial target.

Now let's see if we can find the setup.

Let's go ahead and put volume on.

So the breakout here was on high volume that should have got your attention.

Notice how the volume was picking up along the way.

I'm willing to bet that this Bollinger band breakout squeeze trade showed up and there it is right there.

That candlestick breaking about 10 cents meant something.

Volume picked up that day and then it just took off.

It made sense that 20 cents was where we ended up.

We were outside the Bollinger Band.

We formed a shooting star.

If you are a trader who's willing to take a lot of risk, that's a sell signal.

If you are a little bit more conservative, that's not a sell signal.

That's just a signal.

You either take profit or maybe your stop loss up for myself.

Probably would have taken profit.

Then you had this massive it's the exact same trade, but a much bigger candlestick, and that tells

you you need to be thinking long again, shooting star, that's a negative turn of events.

Hammer that showed positivity.

And on a hammer, you put a stop loss on the bottom of the candlestick, when you break the top of it,

you probably sweated this out for a while, but you never came anywhere near your stop loss.

You would have had to have a nice and stop loss.

And at one point you were down.

Roughly six cents, so, you know, might have been uncomfortable for a minute, but when you set up

on this, you know, that's your target and you ended up hitting that.

So.

As we go down into the past here, here is an interesting set up.

Massive volume breaks through the Bollinger in Japan, and then we form this big red candlestick, wiping

this candlestick out, essentially turning it into a hanging man, that's the perfect hanging man,

but tells you the same story you sell on a break down below their.

You see some support there if you are conservative, remember I talked about flipping at the Bollinger

Band could break down below and then look for a cell signal there, like a failure that certainly took

off.

So if you were a little bit more conservative, you could put a stop loss on the other side of this

and then watched it rip.

So let me get rid of the Bollinger band.

And I will put.

Exponential moving averages.

Well, no, I'll put simple moving averages for now.

And let's make this a read 50.

This probably.

I don't know that we have enough history on this chart, quite frankly, to make this as useful the

200 day.

You can see.

That there was a golden cross and then a death cross, so it was kind of whippy, but the death cross

certainly worked out.

Notice how the market on volume broke up the 50 day M.A kind of dance along there and then on volume

rose again, once you break back above the 200 day Emma, that is a sign that momentum is starting to

pick up.

I mean, once you break above the 50 day, Emma, that is as well that shorter term, but that's longer

term momentum coming into play.

Notices hammer like Candlestick right here, right at previous support at six cents and the two hundred

day.

Emma, furthermore.

I also point out.

That the pull back right there with the 200 day M.A previous support, hammer shaped candlestick, 50

percent Fibonacci retracement level.

Two hundred day hammer, 50 percent fib with an uptrend.

Previous support, that's at least for reasons to go along, you put your stop loss on the other side

of the candlestick, maybe a couple of cents down.

So where's your target?

Where you target?

Minimum is going to be up here.

To capture the Fibonacci retracement move, so that's that's your minimum target and eyeballing this

without measuring it, it looks like it's about a three and a half to one target.

As long as you have good risk reward ratios over the longer term, you should do quite well.

It is when you don't you know, when you take these where you're risking five cents to pick up three,

you do that enough.

You end up losing money.

But if you are diligent about your risk to reward, you certainly have a much better chance of making

money longer term.

That's why you wait for a move like this, you wait for it to pull back, because if you buy it up here,

you're just now back in the green, as it were, your stop loss would have to be here on a break above

this candlestick.

And it's not that you can't do it, it's just that you better be prepared to sit on it for months.

So that's why we don't trade like that.

Plenty of other things to look at on this chart as I glance through it.

So.

There is a triangle.

So the question is, we did pull back, so did we get.

Our measured move.

And yes, right to the penny almost.

So that's definitely worth paying attention to.

Now, you would have had to stop loss here, you know, would you have moved to break even on the hope

of going farther?

Maybe you may have got stopped out of break even.

But clearly the signal was there stellar moves.

It does trend nicely, but it's another one of these kind of thin markets, like on the hourly chart.

For example, you are going to struggle sometimes to find setups that are as clean, I mean, I do see

one here.

You know, that's a massive.

Symmetric triangle.

And now that we have broken higher and in fact, we just tagged that a few hours before at 40 percent,

so nice setup, really.

You can also change.

This is expeditor, that's a simple so let's do the.

Moving average exponential.

There we go, so let's make this 20.

It's this black.

OK, so, yeah, I mean.

Looking at this triangle.

You did have the moving averages kind of twist here and there, and then we opened back up on volume

on a breakout so you could have even taken your time getting in there.

The point on this is that these technical analysis bits and pieces here do work, but like on a shorter

timeframe, on these thinner markets, the smaller cryptos.

You typically need to give it a little bit more room now on a daily chart, it's not too bad, but like

on an hourly chart or, you know, even if you go down to like 15 minute chart, the setups aren't as

clean because you see all of this choppy jaggedness.

There's a lot of back and forth here.

So do keep that in mind.

It's a little harder to day trade, some of these smaller cryptos, but you can see that those setups

all did pay off.

The one exception might be that triangle I showed that may have taken you out of break even once you

hit the target.

It just comes down to whether or not you claimed your profits right away or took half off.

However, you wanted to manage that.

In the next video, I'll take a look at potential setups in zie cash.