All language subtitles for 3. Downtrends

So upward trends are great, helps us to buy low, sell high as we go up on the slope and we go up on

the trend as the prices increase.

But it's also very important to understand downward trends.

And so we're talking about downtrends and how to be wary and how to trade down trends and be, you know,

working through those types of trend lines.

So in a downtrend, what you're really drawing is not support lines.

You're drawing resistance lines.

And again, this will be much more sense as far as when we actually draw the lines.

You see the examples, but basically you're starting at the highest high.

You're looking at your candlestick at the wick of the highest eye.

You're connecting the next high that precedes a new low.

And you can see the line here.

It's going to have a downward slope.

As long as new lows are being made, you keep redrawing line to connect the highest high before the

last slope.

So you're drawing a line along the highs, but it keeps going downward, right?

That's the whole idea of a downward trend.

And when prices start making new lows, then you stop drawing.

Right.

And then you extend that line at the same slope out in the future.

You want to see, you know, you're basically extending that line all the way out and you're watching

that trend line.

So let's look at that graphically.

So it makes more sense here.

If you see this down trend here, you can see where I started.

You know, the highest high end effect is where I'm starting at.

I'm at the top of the candlestick now in the upper shadow, at the top of the curve, that wick was

the wick on where my starting point from in the far left was even higher.

I'd be starting up even higher.

I would always start at the top of the wick in this case, and then I would be connected down through

these next ones that connect on along the slope.

As far as you can see, where it's this downtrend has really been established, where it says down to

an established lateral that's showing at the third a real close approach or touch of that downward trend

line.

You can see I had a first one there.

I had a second one there.

In fact, when the second one happens, the right in a row there that could have been established downtrend.

Right.

There are a lot of people would consider that that's fine.

But if I really wanted to make sure I could make sure it touches for a third time along those lines.

But you can see we have a downtrend that is established and you can see our down trending line along

that.

Those lines right now we're watching this.

We're waiting for whether if you're short selling or betting on prices going down as far as a strategy,

you can continue to sell this.

Basically, you'll be trading along it, expecting lows to keep going lower.

And they do.

And let's so let's say they keep going lower and we now have a fourth test of the resistance line.

Right.

So we can see that resistance line is there's been another test of it, though, this case that the

prices went up and they stayed up.

You can see how we've got white candlesticks.

We're kind of starting to go up for two days, let's say, in a row.

So that's a little bit interesting versus the third down trend.

It had a spike up in prices.

People were trying to get it above that trend line in effect, but it went back down and went way back

down.

And you can see where had that third touch had a real red bar with all the long upir, which in this

case, you know, the buyers are trying to drive that price up on the fourth touch of the resistance.

So that might be telling us something and why candlesticks are helpful that buyers are trying to do

something here.

Well, they break through that line or not.

You know, that's what we want to watch for.

Are they going to break through that line and break the trend, the downward trend, or we'll go back

down again and keep going on that downward trend.

By the way, if you look at that, that last price bar we have, there may look like a dragonfly dolce.

It's not it's got a little bit more of a body to it than the Dodgers have, but it's kind of dodgy,

like.

But it's not technically it's not a dragonfly doget because there's no prior established uptrend for

the for for a dodge.

You need to have a established trend and we don't have an established uptrend fact.

We're still in a downtrend.

So so we wouldn't really consider it is a Dogen trade off it as a JOCE.

But if you're looking at Anthony, maybe that's a dog.

Good for you.

All right.

Let's see what happened in this particular case, going to real security.

So it's just that that resistance line but doesn't break through.

But then you can see on the day after, it definitely breaks through that resistance line.

I mean, it actually almost has a full gap up, but the whole Kabbalistic body and the price ranges

on the upper and the lower, all of them have gone completely past that break through or broken through

that resistance line.

So that's a real telling that it really has broken that trend, even if the upper shadow just goes past

that.

That's that resistance line.

You know, for many people, technically, they'd say, yeah, once it does that, that breaks the the

rule as far as the resistance or the cell rule.

And so we we are soulsby in this you know, in this case that breaks the trend and NSWRL rule, but

it breaks the trend.

So the trend has been broken, the downtrend is broken, and then it kind of goes sideways and it kind

of goes on from there.

But when we were looking at this trend forming, we established that there was a true downtrend.

We watched it approach that for time and then it could have kept going back down or in this case, it

strongly broke through that trend line.

So we strongly know the downtrend is ended.