What's going on traders, if you find yourself watching this video, it's probably because you just recently watched our video best trading indicators for beginners 2021.. This is a continuation off of that video. What we're going to be doing is showing you guys how to use the 100 exponential moving average and 50 exponential moving average in this video. In the previous video, i told you, i would teach you how to use all of the indicators well in this video there's.

Just not enough time to cover them all effectively and efficiently. The way i would like to so, each indicator will have its own separate, video and they'll all be titled as follow part. One part, two part, three part, four, etc until we cover every single indicator. So in this video, what we're specifically talking about is the intraday 50 exponential and 100 exponential moving average and how you kind of go about using this throughout the day and as these videos go on you're, going to keep adding more and more and more and learning More and more and more so with that being said, we have here the 50 moving average and the 100 exponential moving average.

Now, if you don't know how to add these to your chart or if you're, very confused on what we're talking about regarding the first video in the description of this video, i will link you to the previous video. So you can watch that and make sure you're set up with all the indicators that we're going to be talking about throughout this series, so again, 50 moving average and 100 moving average. So the really the first thing that i want to point out here about the moving averages um - that i think is sort of simple or easiest for you to spot - is going to be what we call kind of the coil action. So a coil action is where the price kind of consolidates, so you might notice consolidation and so on and so forth.

But when we're talking about coiling, it really looks like a spring. Almost you can see like here. It goes back and forth and it almost just goes straight back up and straight back down and straight back up and straight back down, and it looks almost like a spring. That's coiling! When you notice that a lot of times there's going to be sort of a good move happening in the stock one way or the other so to speak now in this instance, you will see that when we're viewing tesla, the move ends up breaking upwards.

So this is what we call kind of the 50 to 100 moving average cross. Now we're not suggesting you wait for the moving averages to cross here to make any sort of decision on investment. The idea here is that you're looking for price action of any stock to kind of have some sort of coiling action right around the 50 to 100 moving average. And when i say that i mean you want the 100 moving average and the 50 moving average.

To be relatively close together because when they're close together and the price action is kind of trading in between them, that's typically, when you're going to see that coiling action and the idea is to pick up on the coil action and place a trade. When you have the confidence in which way it's going to shift out of that move, now, there's other ways to determine how or which way it's going to move, and one of which would be. If you simply think about how big tesla fell on this day, and then you picked up that hey tesla is kind of doing this coil action that connor has mentioned and you're thinking to yourself, which way is it going to move out of the consolidation? Really one of the easiest things that you can do to put yourself in the right direction, many times not always is just think about. How far did the stock move before i'm starting to see this action? Are we really down on the day or are we really high up on the day? Because if you've been really extended on the day and you're starting to see this coiling action, then it might actually be time for the market to break down.

And if you're starting to see this kind of coiling action after the market has sold off quite a bit. Again, you might be looking at a move upwards now, as we go through this series. What i just explained to you right there about being high and low on the day, will make so much more sense. So if it didn't totally make sense to you, there don't worry by the end of the series that is going to become very, very known to you, and you probably will have no confusion regarding that topic all right now.

What i want to do is kind of dump back in the chart and you can think about the 50 moving average this way so the 50 and 100 moving average. We typically only use on an intraday chart throughout this series. I'm going to show you how you guys use different moving averages for longer term charts or shall i say you use longer term, moving averages on intraday charts, so we will get to longer term moving averages, but this one is specifically about intraday action. So when it comes to the hundred and the 50-day moving average on an intraday basis, normally the way that we anticipate you know the market and look at it is if, in the event, the price action is staying below these averages, then we're on a downtrend for The day or the market is most likely going to be in a downtrend, and only until we cross back up and through the 50 and 100 will we even really consider that the market has shifted on the intraday to an uptrend and vice versa, something that is Very common is you can look for rejections on the 50 and 100 moving average, for example.

Here you can see the price action kind of went up and then it gets trapped in between the 100 and the 50 and then eventually snaps down. That's the same concept. I told you about right here where we kind of coil back and forth it gets caught in between and it snaps upwards. So just know that the main thing about the 50 and the 100 moving average is if the price action is below those moving averages on the day, then you should just anticipate the market, for that day is on a downtrend until at least the market reverses up And through those moving averages once again now, what i want to do is just kind of pop around to a couple random stocks and see if this kind of holds true, if we see sort of some similarities here, all right, so you'll notice here, like with amd Amd spiked up on the day and then came right back down below these moving averages, and then it started to trend down.

So once we started to get this trend down and we're below all these moving averages. We really just consider that the market is on a downtrend, and most of these pops are going to get sold into until the markets can start to reclaim back through the 50 and the 100 moving average, and so on so forth. Another good thing i should mention is the extension when the markets get really extended from the 50 to 100 moving average a lot of times later. In the day, the price will end up catching back to the 50 and 100 and that's a lot of times where the market's going to bottom or the market's most likely going to sustain its price for the day or it's just going to slow down within that.

Downtrend or another way of looking at it is a lot of times the markets will sell down below these moving averages, and you want to wait until the market trades sideways slightly upwards back to those moving averages, and then the markets will continue back into the downtrend. Let's see if we can find an example of something like that today, um! No, that doesn't really work, but you will see here very similar, we're below the 50 moving average downtrend downtrend downtrend price comes up to it. We kind of chop we eventually get through and then the markets are on to an uptrend all right. Let's see if there's any more similarities, we'll look at the price of zoom today so zoom.

Once again, you will see markets below this average. Remember how i said a lot of times: you'll want to wait for the markets to bounce back to them, markets, bounce back to them kind of coil trade in between press back down. Now, look at this coil action markets come in between 50 to 100 back and forth. Coil like a bull flag and then we break out tries to run, doesn't quite sustain markets kind of coil in between the moving averages back down.

So there's a lot of similarities and a lot of patterns that you'll be able to pick up just by using the 50 in the 100 moving average. Now you might be asking why not use other moving averages and i guess the simplest thing that i could say is after just using them for so long they do get a little bit of noisy on your chart and after you've used moving averages for so long. You can start to get an assumption and an idea of where they exist on the chart. So for me, um, it makes most sense to use 150 moving average at this point and it was actually my partner brandon who works with us at boiler, room trading that really kind of brought this to my attention over the years and that's more or less.

Why? I started using it the way that i do use it now. What i want to do is just kind of pop around and see if we can find any other cool examples of this here today. Sort of another example right here with alibaba. Today you will notice.

Markets are on the downtrend through the averages and then what happens gets a little oversold eventually bounces back towards the 50 back down, eventually bounces back kind of clear it sideways, and then we kind of get this back and forth. Coil snaps above those two moving averages and then we kind of go into an uptrend again. So in a nutshell, that's really how you use those moving averages. Let me also say one more thing: if you put these moving averages on your chart and you start looking at a daily chart, the moving averages are going to be significantly different.

Now you theoretically would use those moving averages very similar to the way you use the moving averages on an intraday chart. But again we don't really use them on a long term chart as because it's just it's less needed on the long term. Chart as it is to an entry chart because you're going to run into way more occurrences on the intraday chart, so really we just normally use it on an intraday chart. So with that being said, that is the end of the part two video on the indicators for you guys to use definitely stay tuned for part three, as that will be coming next and we'll be talking about all the indicators and studies really until you guys have Figured them all out got them on your chart, and you understand them, hopefully perfectly if you guys have any questions, make sure to put them in the comments section below.

I will do my best to get those and then all we ask. Is you hit the thumbs up button absolutely tickle, it massage it to death, because that's what really helps the youtube algorithm. So with that being said, we will see you guys on the next video take care.