All language subtitles for 2. Common Mistakes to Avoid in in Type 02 strategy

Traders let us hear first common mistake and type two strategy.

So if I draw a trend line like this, OK, I've got a breakout with volume confirmation.

So that is good amount of Katusha.

And I've got a breakout with volume confirmation.

The breakout candle is given volume as well.

Can we enter the straight?

The answer is we should not enter, why we should not enter.

Travis, please watch closely.

This is my high.

This is my law.

This is my law.

This is my Lobolo, right?

The market is in downtrend, right when the market is in downtrend.

Why should we look for buying opportunities?

Right.

What we should actually do in this situation, we should not look for breakout.

We have to find big opportunities, right, because market is going down.

We have to move with the market.

We do not go against the market.

OK, this is the first common mistake I see a lot of people do when the market is in downtrend.

You need to look for shorting opportunity when the market is an uptrend.

You need to look for buying opportunity.

OK, that was the first common mistake.

Let's discuss about one more common mistake.

This became my law.

To speak in my.

This became my Hielo.

This became my high.

Uptrend is confirmed, so now we have to look for breakout, right?

So if we draw a train line like this.

I've also got volume confirmation, right?

Trend is correct, high, high Hielo, high uptrends confirmed.

I'm looking for breakout.

That means buying opportunity, right?

What do you think, traders, can I enter the street?

The answer is no, you should not enter what can be the issue.

What do you think can be the issue?

The issue is this trend line, which we have drawn, this trend line, it has very less touches, just

make a simple rule in your head.

OK.

I have to get at least three or four touches to consider this trend line as valid.

I need to get three or four touches at least to consider this trend line as valid.

So if you see this trend line, there are very little touches.

So this trend line has very less value, so the right way to draw a trend line is like this.

Low, hi, Hielo, high, high at this level, let's say I got a record like this.

One, two, three, four, five, six, six touches of gold, after that, there is a breakout.

This breakout is also giving me volume confirmation.

Traders, are you getting my point, this blue trend line which have drawn has lesser importance than

the red line which have drawn.

This train line has more value because it has more number of touches, this blue line has less value

because it just has one or two or three touches.

The third touching KANDELL is the breakout candle, which is very less amount of touches.

To consider this as a value trend line, you might add, using that the market still went up after this

breakout.

This is one of the case where the market went up.

We don't trade with luck, OK?

Trading is not about gambling.

Trading is about proper calculation.

Understanding why we do what we do right.

As soon as you get a breakout and you just draw a trend line, the trend line does not have any significance,

but you find a breakout.

That's not how you treat your trade with more number of touches.

OK, this red trend line has more number of touches.

That is why this has more significant than the blue trend line, which we have drawn.

OK, this is the second mistake.

So now let's discuss about the third common mistake in type two strategy.

She does not let the third common mistake.

Taken by Judge Fansub as an example.

OK, this became my law.

This became my high.

This began my Hielo.

And this became my high correct uptrends conformal.

Now we need to look for breakout, right?

Let's say I draw a line like this.

Previously, we discussed at least three to four touches we need to have see how many touches we have

one, two, three, four, five, six, seven, seven touches we have after this.

This breakout candle is also giving us volume confirmation.

Can we enter the trade?

Traders are pushing this confirmed.

We have got a good number of matches and we have got volume confirmation.

Can we enter the state?

What do you think?

We should absolutely not enter the state, what can be the mistake?

Zoom and show it to you.

This breakout scandal has selling pressure.

OK, can you see the open and the close of the scandal is almost similar.

There is no so much difference between the opening and closing price of the stock because that is selling

pressure.

It is a bit risky for us to enter a trade, even though it has a volume confirmation.

But if you see this next screen scandal, can you see a thick green candle?

The scandal has also got to break out.

Does the green candle has more value than this previous dodgy candle, dodgy candle means that is in

discussion between the buyers and sellers.

But in the scandal, the buyers are clearly winning and we have a decent amount of touches.

One, two, three, four, five, six, seven.

To touch.

We're getting breakout.

So this has higher significance than the scandal.

So please avoid trading in a dodgy candle with volume confirmation because there is a indecision between

the buyers and sellers.

But when you see a green candle like this and you're getting a good trend line with more number of touches,

then you can enter the street.

OK.

There's hope this is clear to you.

This was a third common mistake.

Traders, there's one major mistake that people do when they're working on Type two strategy.

I will explain it to you with the help of drawing so that you can understand it better.

Let us see, the market is making an uptrend like this.

Cities, this became a law.

To speak in my heart, to speak in my Hielo and to speak in my high after deception, let's see the

stock ritziest up to this level.

At this level, let's say we drew a train line and we got a breakout.

Let us say this breakout is with volume confirmation.

OK?

First, the stock made an option and then the stock retraced up to this level and then we got a breakout

with volume confirmation.

Don't get confused with this trend.

Let's say this trend has enough number of touches.

Let's say touched, very touched here.

It touched here.

So imagine we have enough number of touches before I explain, should we enter or not enter?

Let me explain one important thing to the slow high.

Hielo and high.

This is called.

What is the second major trend?

And this portion.

Microland.

This is a major train, the replacement is called ASA Micro Train.

OK, I hope you have understood until hear some traders fear to enter the trade when the stock is retraced

up to this level.

That is the retracement is somewhat close to the Hielo, they feel that the stock is retreating too

much and they get confused, should they enter the trade or not enter the trade to decide if you have

to enter the trade here or not.

We use a tool called Fibonacci Retracement.

Some traders may not be aware how to use the Fibonacci tool.

I will show that to you now.

First, let us understand how to use Fibonacci tool when the stock is an uptrend.

Let us see the stock made an uptrend like this.

When the stock is an uptrend, we need to use Fibonacci tool and then the starting point will be from

the low.

OK, so this is law, hi, hi, hello, hi.

Right, so from our law, this will be a starting point we need to take it up to.

This level.

This will be the starting point, Lou.

Hi.

Hi.

This will be our ending point.

Now let's see for downtrend how to use Fibonacci level.

Let's say the stock made a movement like this.

This is a downtrend, correct?

See, this is my this is my law.

Dissimilarly.

This is my Lobolo, so downtrends confirmed, right?

So if you're checking Fibonacci retracement for downtrend, the starting point will be from up.

OK, from this level, we will draw the Fibonacci retracement up to.

So for uptrend, Fibonacci starting point is from down.

And for downtrend, Fibonacci's starting point is from up.

Traitors.

Now, let's understand what is the use of Fibonacci retracement?

Traders, the Fibonacci retracement tool helps us to understand when a micro trend can become a major

trend previously had.

Explain to you what is major trend and micro trend.

Traders, when the stock is an uptrend, low, high, Hielo and high, this is called a major trend

only for the major trend.

We need to draw a Fibonacci level for uptrend.

The starting point is from down.

From down.

We need to pull it up to higher right after this.

The stock retraced up to this level, even if the stock retraced up to this level and we find breakout

with volume confirmation and enough number of patches, we can enter the trade.

But let's see the retracement, which is also called as MicroCon came up to this level with just six

one eight level, if the micro trend retracement is up to six one eight level, then I will not enter

the trade.

Because Fibonacci Tool helps us to know when a micro trend can become a major trend.

OK, so if this dog is regressing up to six one eight level, what we will do is we will not enter the

tree.

If the micro trend rate rises up to six one eight level, then it is a sign that this micro trend is

no more a micro trend.

It has a potential of becoming a major trend.

So this is the six one eight level at this level, if the retracement happens and the stock touches

this level, we should not enter the trade, even one single candle or one single candle which touches

this line.

We should not enter the trade.

But let's see the stock retraced only up to this level without touching.

It went up then we can consider this as a micro trend.

And then once we find a breakout with volume confirmation, with enough number of touches, we can enter

the trade.

In a downtrend, Fibonacci level has to be checked from the height, right?

So from this level to this level.

I draw the Fibonacci level and after this, let's see the stock retraced up to this level.

If I get a breakdown at this level, I can enter the tree as long as the micro trend do not reach this

level and I get a break.

I can enter the street after confirming the volume, the number of touches and proper downtrend confirmation,

I can enter the tree.

But if a candle during a micro trend at just this level.

This scandal is no more micro trend.

It has to be a major trend.

We need to consider this as a major trend and we should not enter the.

In the labor market have taken IndusInd Bank five minutes chart to show you how to use Fibonacci tool

to my.

So at this level, we are waiting for a breakdown, right, if we draw a trend line pectus, let's see

what happens.

When the market does moments like this, we need to modify our trend line so that we get more number

of patches.

So at this level, let's say I take the Fibonacci tool.

How to use Fibonacci to learn Adulterant untrain, the starting point is from up, right?

Do we choose the Fibonacci level?

If all these colors are confusing you, you can judge the horizontal line like this.

This is the six one eight level.

So let me delete this Fibonacci tool.

This is a six one eight level.

Let's see how the market responds.

Next, we got a green candle catching the Fibonacci level.

What does that mean?

That means that this microplane, which we were waiting for break down, has crossed a six one eight

level, so this is no longer a micro trend at this level.

We should not take up the trade traders.

I hope now you have understood how to use the Fibonacci tool and also you are aware about the common

mistakes which you need to avoid in Type two strategy.

In the next session, we'll be discussing about two more strategies, which is uptrend complex and downtrend

complex.

I will see you in the next lecture.