All language subtitles for nnm

There are two kinds
of people in the world, those that believe

in technical analysis
and have over 50 lines on their charts

and those that think technical analysis
is complete bogus.

In this video, you're going to find out
which one you are.

Welcome the whiteboard crypto, the number
one YouTube channel for crypto education.

And here we explain topics

of the cryptocurrency world
using analogies, stories and examples

so that even your grandpa
can understand them.

In this video,

we are going to be explaining
what technical analysis

is, how it can be useful,
and even some common patterns

that you'll be able to identify yourself
by the end of this video.

Also, about two months ago,
I stumbled upon a fantastic crypto creator

who wasn't reaching many eyeballs,
even though his technical analysis

content was the best that I'd ever seen.

So I reached out to him,
and he's going to help with this video.

If you're impressed by the end of it,
I'd really appreciate it.

If you head over to his channel
and watch a video or two

to see if you agree about his quality.

Let's dig in.

Technical analysis is one of the things
that is overused by people

who know what it is and undervalued
by those who have never used it.

When it comes to investing,
not just in cryptocurrency,

the main steps to make a profit is to buy
something at the cheapest price possible,

and then they sell it
at the most expensive price.

Now, that's much easier said than done.

Technical analysis is a great tool
to help make that possible.

It's worth noting that technical analysis

is not a holy grail
and will not make you wealthy overnight.

It's not designed to do that.

In fact, some traders
will even only make trades once a month,

but it will give you a small edge
in the markets.

Even a one person edge in

something can be much greater
or more useful than you think.

For example, casinos make millions of
dollars every single day around the world

because they have a simple edge over
the people that are playing against.

Sometimes that edge is less than 1%,
but over a long enough time

period with a large enough volume,
that is all you need.

In fact, Gold Medal athletes in the
Olympics win by less than 1% all the time.

Now, before we get off topic

and go down the rabbit hole,
I want to help you understand

some of the most important concepts
when it comes to technical analysis

and how you can use it to give you an edge
when it comes to investing

in cryptocurrency.

The first topic I want to cover
is something that doesn't

even have to do with charts
or covering technical analysis.

Instead, this concept is

probably the most important one
to remember when you're investing.

The most important question to ask
yourself is who controls the markets?

Now, your first thought may be

whales or institutions,
or maybe even big market movers.

And while those are all great guesses,
the real answer

is that the markets depend on
you and I and the millions

of other people who are participating
in the market on a daily basis.

All of these people control the markets.

So what I'm trying to get at is
that people by nature are unpredictable.

So therefore,
the markets are unpredictable.

Some guy has a car accident
and he gets sued.

And because of that lawsuit,
he has to liquidate all of his Etherium.

Maybe there are some women out there
who just realize she's pregnant,

and so she sells half of her chain link
so she can have some cushion money.

Or maybe there's an XRP
whale that woke up one morning

and they start dollar cost
averaging out of their XRP bags

because they had a dream
that the whole thing was a scam.

Now these things might sound funny,
but these things happen

every day, every week, every year.

You cannot predict the lawsuit,
the pregnancy or the dream,

but they lead to tons of money
being moved in and out of the markets.

There's a common misconception
about technical analysis, and many believe

that if you can just find the right tool
or the right trading plan,

then you can predict the future
and make millions.

But the truth is, nobody knows the future.

Your only goal with technical analysis
is to find a plan that works for you,

define your personal edge in the market
and never let your emotions

get the best of you.

Technical
analysis is simply a tool to help you.

Now that we've gotten the theory work
out of the way,

let's actually dig in
to reading a candlestick.

Now, candlesticks are a way to look at
price action within a specific timeframe.

A candle is very confusing if you have no
idea what you're looking at,

but I'm about to teach you everything
you need to know about a candlestick.

Candlesticks turn for points of data
into a single image.

first, you have the price
that the candle started at.

Now this is actually depending on
whether the candle is green or red.

These points will be different.

For example, on a green candlestick,
the opening price

is the bottom of the base
or the body of the candle .

The other end of the body

is where it actually closed,
on the other hand, for a red candlestick.

The opposite is true.

The opening is the top of the body
and the closing is the bottom of the body.

So the color tells you
which one of these is the opening

and which one is the closing.

But the two points of the body
tell you where

the crypto opened and closed
within that specific time frame.

Now, this time frame could be one minute.

It could be ten minutes an hour
or even a whole month.

They're technically fractal in nature,
but we'll talk about that later on.

So now that we've gotten the big body
parts of the candlestick out of the way,

let's move on to the thin parts
of the candle and these are called wicks.

Now these are evidence of where
the price went, but then recovered.

So let's take a look at a green card.

Candlestick, this candlestick

tells us that the crypto opened here,
went all the way down here at one point

and then came back up to here
at some point

and then ended at this part of the body.

That's how you read a candle. It's
that easy.

I will say you may need to watch that
a couple of times, but all candles work

this way, and once you know how
to read them, it all starts to make sense.

Now, some candles
give you insight into the market.

For example, a candlestick that looks like
this means the price went way up.

Then came back way down.

And that usually means that the buyers
were exhausted or in other terms.

There were more sellers than buyers,
and that the price of whatever this asset

is might drop in the future.

Alternatively, a candle like
this is where the price went way down

and then came up,

and that usually means
the sellers were exhausted

and that the price may go
up in the future.

These are not always true,
but they give us good ideas

about what's happening in the market.

Now, moving on the rest of this video
includes topics

that will be a little difficult
to explain with a whiteboard,

so I'm going to go ahead and let Christian
give a whack of breaking them down.

So right here

I have a diagram basically breaking down
the three phases of the market.

first, we have an uptrend,

a downtrend and consolidation,
which is sideways movement.

An easy way to think of it is
that an uptrend

is a series of higher highs,
which are these and higher lows.

And as you follow the arrows,
it looks like the market is going higher

and we know the market can't go only up.

There needs to be retracement in

a downtrend is the same thing,
but in the opposite direction.

So you have a series of lower lows and
lower highs, lower lows and lower highs.

And that is what determines
a downturn in its simplest form.

And a consolidation is
when price gets stuck in between

two price points
and just continues to consolidate.

Now to show you this
in a real data structure or real

technical analysis chart,
we have bitcoin on the four hour chart,

starting all the way
from the beginning of January

ending to around July 20th.

So you could do this on any timeframe
because everything is fractal,

which we'll talk about later.

So actually, try this out for you
to make it even more simple.

So we have the market coming up,

coming down a series of higher highs
and higher lows.

And this is an uptrend
until we start to make lower

lows and lower highs in the market
and then finally right in this area.

The market consolidates in between the
price points at 36,000 and around 29,000.

And the market just starts to go sideways.

And then as we go on even

farther to the right
side, we could see that the market starts

to give us another uptrend
until it starts to give us a downturn.

So the market goes through these
three phases over and over and over again.

And as you scale down to lower timeframes,
they start to happen more frequently.

And if you get to higher timeframes,
it is a lot slower.

But the price movements are a lot larger.

So I'm hoping that this really exemplifies

how simple market structure can be
and how easy trading can be.

Sometimes because really,

there are only three directions
the market goes up, down and sideways.

Now that we have a common understanding
about what candlesticks are

and when you put them all together,
they kind of tell us a story of

what's happening within the certain asset
that you're looking at.

So for example,
we're looking at bitcoin, U.S.

dollar and on here
we are currently on the weekly.

So each one of these candlesticks
represents one week's

worth of price action, telling us
where price has been over that week.

Now, trends or trend lines
help us understand

where we are in the market
and where we might be trending

to whether that's a higher price
or lower price.

Now there's a couple of really
important things to know with trend lines.

And while they're very helpful
and they're very simple,

there's a couple of key things
you need to understand about them.

The first thing is
that they're very subjective.

When I see a trend, you may not,
and when you see a trend,

it may not be very obvious or evident
to other people.

So trend lines are very subjective,
just like many other things

when it comes to technical analysis, so
always keep that in the back of your head.

The second thing

that we need to understand is that a trend
line needs to have two touches.

For example,
I have this trend line on the weekly

that you could see
the first touch is back around here.

The second touch connects to right here.

And the third one is typically
where people are anticipating price

to get to now, not to put too much weight
or time into trend lines.

The last thing I want to go over
is that there's three main

trend lines that I like to look into.

The first one is the macro trend.

When I'm talking about macro,

I'm talking about where price is going on
a very long time scale.

So for example, when we're looking
at the weekly, the monthly or the daily,

as you could see the timeframe of this
starting from back here.

This is a lot of price action.

This is currently around 658 days
worth of data that we're looking in.

So you can almost consider this
as the macro trend, right?

What is the large scale of the market?

But if we come down to shorter timeframes
like the four hour, one hour or anything

below that,

that's when we're looking at minor trends

and this is actually something
that's happening right now.

So we're starting this
trend all the way back from November 10th,

and it's actually going to price action
to where we are on December 30th.

So as you could see, we are currently
in a minor downtrend on bitcoin.

But if we were to take a look
back at the weekly, you can tell

that we are somewhat
in a pretty bullish state.

So these are always good to consider
what timeframe you're on

and what trend you're
in on that timeframe.

Now, the last thing I want to get into
is a counter trend,

and this might be kind of confusing,
but I'm going to make it very simple.

Now what we're talking about a counter
trend.

The first thing we have to identify is
what is our main trend?

So we're looking at bitcoin right here.

We're looking at price action
from the end of January,

going all the way
to around the middle of April.

Now you could pretty easily
tell that bitcoin was in an uptrend

just by looking at price
and plotting this trend line right here.

But a counter trend is the opposite trend

against the bigger overall picture.

So currently we're in an uptrend,
and the counter trend would be any time

price is going down
against the main trend.

And as you could see,
this only happens for a little bit

and then we break out and continue
with the main trend.

We go down for a little bit and breakout
with the main trend go down and breakout.

Now an indication that this might be over
or that our main trend is getting broken

is when it breaks below our main trend
line, as you could see by this white line.

And that is indicating that
now we might be switching

our trend line to the opposite direction.

Now that you know what market structure is
and in what directions the market moves

and in what phases,

it is also important to understand
that the markets are fractal.

A fractal is simply a never ending
pattern.

It's a mathematical phenomenon,
and it's basically

just a self
similar pattern across different skills.

So let's hop into the charts
and I'll show you exactly what I mean.

So as you can see right here,
we have a pattern of a large triangle

that is made up of smaller triangles.

And the deeper we look
into the actual triangles,

as you could see right here,
it seems like it's a never ending pattern

of bigger and smaller triangles,
and it just continues to zoom in.

And then and you can actually
look this up on Google

and get a better understanding of it.

But basically, I have two Ethereum
USD charts pulled up for you.

The first one is the four hour chart,

and it dates from September 16th
to around October sixth.

The next chart is the 15 minute chart,

and this one dates from December 12th
to around December 16th.

And you could verify that by the scale
down here and the numbers up here.

So the first one we have
is the four hour chart.

The first thing that happens
is that the market drops

and then we have three
touches on a floor or a support.

And then we have a big bullish
move off of that level.

If we jump over to the 15 minute
timeframe, completely

different time, completely different
scale of candlesticks.

We have a move down.

We have three touches into this support
or this floor

and then we have a large reaction
to the upside.

Now you can see that they're not perfect,
but the whole point of this

is that you can go even down
to the one minute or the weekly chart

and you can compare these together
and the market moves in similar ways.

And we all know that the market is not
predictable, but it is not random either.

So now that you know what fractals are
and that they're in the market, it's

your turn to go up on the chart
and go find a couple.

So if you made it this far, I just want to
thank you for bearing with me

and my examples, and thank you
for not thinking that I'm too boring.

Maybe you have, but you've made it
this far, so congratulations.

But the last thing I want to share with
you are reversal zones and patterns.

There's a saying that goes In order
to understand the future,

we need to look at the past first.

The markets may be unpredictable,
but they are not random.

And with this knowledge,

we can use it to our advantage
to understand what price might do next.

So right here I have the entire 2021
bitcoin chart almost summarized

for a lot of its massive uprisings
and downfalls.

But as you can see back here in February,

this massive uprising came
from a lot of institutional support.

Companies like Tesla, MicroStrategy
and MasterCard

were all publicly supporting bitcoin,
which made it rise.

Then we had the summer FUD

dating all the way back in May,
even starting back in April.

And then at the bottom of it,
Grayscale announced

that they bought $1.5 billion of bitcoin,
which made it rise.

And then China again

banned cryptocurrency once again
around the middle end of September,

which made it drop, and then Bitcoin ETF
hype pumped it up again.

And then right here, our most recent rally

was our Santa Claus rally,
which takes in effect the last.

Week of December
now, while all of these events are unique,

these are massive
price points or movements in the markets,

as you could see, the market comes up
and comes down violently.

Usually the market
kind of flows up and down.

It has an ebb and flow to it.

But when these massive fundamental
or news events

hit the public, we could see
massive changes in the market.

And what we can actually do is
we can map this out

all the way across,
and we can use these as levels

of future price reversal zones
and you could see if we map these out.

It's no coincidence
that over and over and over again,

when we see support or resistance
right here, we can see over here as well.

And over here,

even though that this is not a one time
event this summer, FUD,

you could see that
a lot of traders and investors

look at these levels because this is where
Price moved on a very large scale.

And if we continue to take out
all of these, you could see that it's

no coincidence that these levels continue
to react into the future.

So while something big might happen once
and it might not recreate itself

in the future,

those levels will be remembered by the
traders and investors in the future.

So these are important things to remember.

And even if no big event happened,
but we hit an all time high

or a local low, those are important things
to remember for the future because

it's an indication that something similar
might happen again in the charts.

So that's the last thing
I want to leave you with.

And just for fun.

Go ahead.

Go on to find some really important price
reversal zones.

Go ahead and see what happened in the past
and then what happened in

the future as well.

So I hope you guys

enjoyed everything in this video,
and I'll pass it back to Theodore.

All right.

If you enjoy this video

and lessons about technical analysis,
I have a big ask for you.

Could you head over to Christian's channel

and watch one of his videos
and let me know what you think of them?

He's been growing like crazy,
and to be honest, he is my favorite

technical analysis YouTuber who doesn't
put shocked faces on his thumbnail

or just sprout off random
price predictions without any evidence.

Either way, we both want to thank you
for watching this video.

I really hope that you learn something,
and most of all, I hope to see you over

at Christian's channel.