Hey hey, what's up my friend! So welcome to the Ultimate Chart Patterns Trading course, right? So who is this course for? This course is for you if you're a beginner Trader or an advanced Trader right? Here's how it works, right? This course is built in a step-by-step manner, right? So even if you're a new Trader you can follow along this course right, every step of the way and towards the end, right? We'll build up on what you've learned and share with you. Advanced Strategies and techniques right? And this will be You know a useful stuff, especially for those of you who have already some trading experience now. It doesn't matter whether you're a stock Trader a Forex Trader or a crypto Trader Because this course, right it can be applied to this Market because the strategies, the techniques, the concepts can be applied across these different markets now. I Pick a lot in this course.

So I put a timestamp somewhere on the screen so you can refer to it if you need to and you might think oh, right now I already know some of this chat matters well guess what, right? I Still recommend you watch it from start to finish because the way I interpret some of these patterns the way I trade it is actually quite different from what the textbooks, what the other courses teach you. So I recommend you go through them with me. so you kind of like no Rainer's version. Yeah, so the goal for you from this course is very simple, right? I Only have three goals.

Number one to teach you how to use chat patterns to better time your entries and exits, number two: how to use chart patterns to predict Market turning point so you don't get caught on the wrong side of the move. and finally number three to equip you with chart pattern strategy so you can profit in Boo and Bear Market sounds good. Then let's get started. Now the first shot pattern that I want to share with you is called the double Top pattern.

So this is in essence right. A Bearish reversal chart pattern. So how does this work? Let me explain. So when you spot a double top right, you will see that the market at first is in an uptrend, then it makes a pullback, then it re-tests the highs once again and then makes another pullback.

So at this point in time right, the market is actually still bullish. There's nothing bearish about this chart at this point in time, but where things starts to get kind of suspicious is when you have this neckline over here. Okay, and if the price breaks below this neckline, we would say that the let's say imagine it breaks below the neckline will say that the double top is sort of confirmed and the market is likely to head down lower from here. So let me give you an example of how this looks like on the chart so you can see over here this is a double top button it tested once called Rejected down lower, tested twice, got rejected down lower and at this point is where it broke below this neckline otherwise also known as an area of support.

So how can you trade the double top pattern? So there are many ways to do it? But one simple method is this right. So at first let's talk about how not to trade it. So I'm mistake that many Traders make is that when they see a breakdown of this neckline, go shot on this. Market What's the problem with this is that if you have been Trading long enough, you know that the market could come down lower and then quickly reverse back up higher otherwise known as a false breakout.

So if you're short just because the market broke below the neckline, you're going to be. you know, pretty disappointed quite often. Okay, so what else can you do? Well, a better approach right is you can actually wait for the break and retest so you know that this is an area of support. Okay, let the price break down lower first and then re-test this area of support.

So This could be uh, you know, a retest and giving you an entry trigger like the shooting star pattern like this. Okay, and this right tells you that hey, no sellers are stepping in right and this over here could be previous support which could turn into resistance. Dedicated Look to Enter Analytics Candle open stops a distance above the highs possible. Target Just before this recent swing low I Don't want to go into the trading strategy yet because we'll cover that later on, but this is just an idea to how we can possibly trade the double top chart better.

And by the way, if you want to learn how you can actually enter a double top pattern right before the price breaks before before the price breaks below the neckline right there, you know, stay with me towards the end of this training, because towards this trading strategy section I'll share with you how you can actually enter your trade before the price breaks the neckline. and when that happens, this means that when the price reaches this neckline, you're already in profit. So I'll cover all that and more in a later part of this video. But for now, let's move on and talk about the double bottom pattern.

So this is the inverse is actually a bullish reversal chart pattern. It looks something like this: Market it's in a downtrend, then it hits this low over here and makes a pullback up higher. Okay, then it retests back the low and Bounds us up higher. So at this price point, at this point in time, this Market is still in the downtrend.

There's nothing bearish about it because if you look at it, the lower high, the lower high, the lower high, it's still intact. And at this point, this is where you can actually also draw your neckline over here otherwise known as an area of resistance and when the price if it does break. Above This Neckline This is where we see the double bottom pattern is confirmed right. You can see the double bottom tested once, tested twice, and then this break.

Above This Neckline is where we say the double bottom pattern is confirmed and the market could head up higher. So visually it looks something like this. Okay, so you can see over here. Market is in a downtrend tested once.

bounce up higher, making a pullback, test it twice. Okay, bounce up higher. At this point. this is where we say the double bottom pattern is confirmed because the price has broke out of the neckline.

But as you have known by now right this you shouldn't trust this breakout just because the price close above it. Because what could also happen is the market could just as easily reverse down lower forming a false breakout close using back below resistance. So how do you trade the double bottom pattern? So one way to go about it again is to actually to wait for the break and retest. let the market break out and retest this previous resistance which could become support.

Let me retest it right? So once you retest, you can then look for a bullish entry trigger like a hammer or something like this. Okay, right and to tell you that hey, buyers are stepping in and about to push the price higher because that's the meaning behind the hammer. Right where the price. At one point in time, this is the opening price it traded down to towards this low only to have the buyers stepped in to push the price up higher.

Closing right at this price point. Okay, so this is a sign of strength and this is where buyers could possibly come in. So you can look for a bullish entry trigger to go long stops a distance below this lowest possible Target could be just before this recent highs. Okay, so again, we will talk about the trading strategy entries and techniques later on, but that's one way you can go about trading the double bottom chart pattern.

Next, you have the hey shoulders, knees and toes, knees and toes. Hey shoulders, knees and toes, knees and toes. That's what happens when you have three kids and they play nursery nursery rhymes every single day in your house, right? So anyway, The Head and Shoulders chart pattern right is pretty much a bearish reversal chart pattern. So let me explain how this works.

So this one over here again. Market is at first in an uptrend, then it makes a pullback and fire off higher. Then it comes back down lower. Re-testing these lows over here.

So at this point again, Market is still bullish. Market is forming a series of higher highs, higher highs, higher highs, higher highs, higher highs and higher lows, higher lows. So where things starts to take a turn right. this way, you notice the right shoulder being formed.

Price hits up higher and then starts to come down lower again. So at this point, when this is significant because it tells you, like the buyers, they have difficulty retesting this highs over here. They have difficulty pushing the price up higher. They have difficulty breaking out higher.

So this is a sign of weakness, But it doesn't mean that the market is going to collapse. No. So at this point, this way, you can actually identify the neckline. Okay, some people call it support, some call it the neckline, whichever.

and The Head and Shoulders pattern is only confirmed right when the price breaks and close below this neckline over here. Okay, so when that happens, right, we will say that the head and shoulders pattern is completed and the market could possibly hit down lower. So visually, it looks something like this. Okay, so let me show you so.

this head and shoulders pattern is a little bit different. Not as symmetrical as what you've seen earlier. This is the left shoulder. This is the head, the one that is sticking out, and this is the right shoulder.

And what? What you'll notice is that the left shoulder is a lot, The duration is a lot longer compared to this right shoulder shoulder, and it's still a valid Head and Shoulders pattern. The reason why I share this with you is because in trading, sometimes the pattern are not as symmetrical. It's not as textbooky as what it might seem. So sometimes the the core principles are still there.

They're still a left shoulder. which is this one. Over here, there's still a hit, and there's still a right shoulder. but it's not quite as symmetrical or textbooky right as what you might expect.

Again, just want to kind of prepare you for the real world of trading when you spot such, uh, chart patterns. So now how can you trade the head and shoulders pattern? So one way that I don't recommend doing it right is that you know if you see the price breaks below the neckline, over here you go short. The problem is where you're going to set your stop loss. Okay, so some Traders might set it.

No. let's say above this, head over here right? because if the price goes all the way back up and hits this level breaking up the head of your head and shoulders pattern, then of course this pattern is invalidated. Problem with this is that your stop loss is pretty pretty done. Why? It's like huge all right.

So to even achieve a one-to-one risk reward ratio if it's gonna take a while right? So a better approach or another approach that you can consider is again, we talk about the break and retest method that I shared with you earlier. Alternatively I'm going to share with you a new one. Over here is what I call the first pullback. So why do I call this the first pullback? Because at this price point, notice how the price breaks below support.

Okay, so if it makes a pullback now this is what I call the first pullback Because this is the first time the market has made a pullback after this breakdown over here. So let's say it makes a pullback forming like you know, kind of like a like this is a bearish flag pattern. Again, this is chart pattern that I'll share with you later on and if the price does hit down lower and break below this low. This way you can go short, right? You go short at this price point.

Now what's the difference between shorting at this price point and shutting earlier? Well, the main difference is that now you can actually reference this highs to set your stop loss. Your stop loss is going to be more tighter right now. So when you have a tighter stop loss, you get a more favorable risk to reward. So let's say you shot at this price point.

your stop loss now is somewhere over here. Can you see how much tighter your stop loss is right? And that's one way you can go about trading The Head and Shoulders pattern? Okey-dokey And by the way, if you're enjoying this trading so far, smash the Thumbs Up Button. if not, hit, subscribe. So the inverse Head and Shoulders pattern.

This is just the inverse or rather the the opposite of what I shared with you earlier. So it's a bullish reversal chart pattern. so it looks something like this. Okay, so this usually when the market is in the downtrend like this.

Okay, then it makes a pullback up higher, then it sticks another step down lower. then it makes a pullback up higher. Okay, so at this point again, Market is still bearish. There's nothing bullish about this because you can still see a series of lower lows, lower lows, and lower lows.

So where things start to take for return is pay attention to this price action over your Market hits down lower. Okay, and this time around it wants to again continue this downtrend. And to continue this downtrend, it has to break below this low. But guess what? it couldn't break below the low because buyers are coming in to push the price higher.

Buyers are stepping in and this is where you notice the price action takes a turn and starts to go up higher. So at this point is where you have your left shoulder, this is your head and this is your right shoulder. Again, nothing is confirmed. Now nothing is going to say that hey, this is the reversal until the price breaks above this neckline.

Okay So until the price can break Above This neckline. This is where we Say The Head and Shoulders pattern is completed and the market could possibly head up higher. And the tip to share with you is that for classical technicians right there, we'll use something called the price projection to kind of determine where the head and shoulders where the inverse Head and Shoulders price could terminate that. So let me give you a quick example.

So let's say let's say the low of the hit over here. Okay, let's say I'll just use this point. Let's say the low of this. Head over here.

Okay, the price is trading at 50 dollars. Okay, and let's say the highs of this neckline over here. Let's say the highs of this neckline. The price is trading at a hundred dollars.

So from 50 to 100, it's a difference of fifty dollars, right? So in other words, the entire distance of the head and shoulders pattern from the head to the neckline is fifty dollars. So when we try to determine where the market could potentially terminate at, we just simply take that distance and kind of like project it up higher. So in other words, right, 100 you plus fifty dollars because that's the distance of the head and shoulders pattern. You can actually kind of say that hey no at 150 price point, let's say somewhere about here, this is where 150 This is where the head and shoulders pattern could be, uh, completed at.

and that's where you could actually face selling pressure, where the market could reverse from there. So this is how a classical technician uh, charties right. They use a price projections to determine where the chart pattern could you know move till. Okay, so an example of how the inverse Head and Shoulders pattern looks like something like this.

Again, the left shoulder. this is the head and this is the right shoulder. And what is this? This is what we call the neckline otherwise also can be called a resistance. So at this point you can see over here this Market has actually broke out of this neckline over here.

and actually right in this particular instances, one way you can trade, this is actually to actually trade the breakout. Why is that? Because if you think about this when this Market breaks out over here, why is this a tradable breakup? Because you can actually have or rather, two things. Number one, you can actually actually reference this low. This swing low to set your stop loss.

You have still a pretty tight stop loss. So from here to here, right? let's say you set your stop loss a distance below this low. So somewhere here your stop loss here, this is still pretty tight. Okay, so that's one thing in your favor.

Number two, Notice how this market right is actually consolidating just before this area of resistance. This consolidation otherwise what I call as a build up is a sign of strength is telling you that hey, you know the market. It has difficulty heading down lower because imagine if the market is in a downtrend, then buy right right? It shouldn't be consolidating here so long. By right, it should actually just pretty much continue down lower.

Breakdown below this low: Continue its lower lows and lower Highs But the fact that it's actually covering at resistance, the fact that it's still consolidating over here tells you one thing. buyers are stepping in and could possibly push the price higher. So that is again, is a publisher. Uh I would say price action signal to that will warrant you right to actually trade the breakup out of this head and shoulders pattern and again why it's a tradable breakout.

Unlike the earlier examples, let me share with you the earlier examples. if you haven't recall, if you look at this one over here, if you trade this breakout over here, let's say you refer to the nearest swing high. It's actually this one over here and your stop-loss is going to be over here pretty darn wide. Yeah, okay.

now if you compare this to the stop loss that you have on this one over here, can you see the difference in tightness of the pattern? And as you know, right, the tighter the better is, the longer the market is kind of like in The Squeeze Probably it will lead to a stronger breakout. So in this instance right there's one way you can go about trading the inversion and shoulders pattern only. If right, you have this consolidation. You have this built up form right at the neckline only if you have that.

If not, you can go about trading the first pullback or the break and retest strategy which I've just shared with you earlier. And don't worry too much about the strategy part because later on I'll dive deeper with you on how you can actually use chat patterns right and develop your own trading strategies. I'll walk you through uh, trading strategies that I use myself to trade the markets and more on that later. Next, we have the triple top chart pattern, right? So this is actually a reversal chart pattern.

A bearish reversal pattern. And it's actually a variation of The Head and Shoulders pattern that you have seen earlier. And in fact, it can also be a variation of the double top pattern. So let me explain how this works.

So again, Market is in an uptrend. Okay, then you re-test the High I mean, already test the highs, makes a pullback, then retest The Heist once again, then makes a pullback. So at this point, now, if the market breaks below this neckline, we will see that there's a double top pattern and it's confirmed if the price breaks below the neckline. But what if the market re-tests the highest once again so you can see it retested once, twice and over Here it comes down lower.

if we said retested twice twice sorry And then this is the neckline you have. Okay, so again, if the price comes down lower and breaks below, breaks and close below the neckline, we will say that the triple top chart pattern is completed and the market could possibly head down lower. And the price projection principle that I shared with you just a few moments ago it can be applied to the double top of the triple top chart pattern as well. So let's say for example, this one the highest over here.

So let's say it's 200. Okay and let's say this neckline, the low of the neckline is for example, 150 dollars. no quiz time If the market breaks below this neckliner, where could you project this pattern to terminate it to kind of like you know, officially terminate it I Won't say officially but where the technicians right will say that this price projection could complete that equal complete. Basically you take the distance from this highs to this lows you know it's 50 and you just take 150 minus 50 and it's about 100.

Okay so you can say that this pattern right could be complete right at this 100 price point. So 100 is where you could say that you know, hey, buying pressure could come in right to push the price up higher. So that's what the technician the chart pattern uh technical analyst use uh this price projection method to kind of like give them a Target price. Yeah, okay so this is the uh Bearish reversal chart pattern and Visually it looks something like this.

So you see here Market hit up higher tested once, make a pullback, heads up higher, tested twice, makes a pullback. So again at this point nothing bearish on this charm because the market has just uh, still formed a series of higher lows. You can see higher low, higher low and here close to the previous low. So again, nothing bearish about this.

Then the market heads up higher once again and comes down lower. So at this point again you have the market looking something like in the range a range in an uptrend. So at this Price Point again I won't say the market is bearish because it's kind of like contained within the range and if you look at the previous existing Trend the overall Market previously is in an uptrend. Okay so at this price point at this point right I will actually lean more towards looking for buying opportunities.

But the game changer happens right when the price breaks and close below this neckline. On this candle it brick and close below the neckline. This is where again things have changed and I'll shift my buyers from bullish now to bearish. So how can I trade the triple top chart pattern again? What I don't really like to do is that I don't like to shop over here and then have my stop loss.

Let's say for example, Above This highs because again, the distance of your stop loss is too pretty darn wide. So all the techniques I shared with you earlier, the first pullback, the break and retest. Yeah, those are techniques that you can use to trade the triple top chart pattern. So for example, we can go with again.

for example, let's say go with a break and retest Market is down lower. then it comes back up and retests this previous support which could become resistant. You can look for something like again, a shooting star pattern like this. Okay, this telling you that hey, selling pressure is coming in and the market could possibly reverse down lower from here.

So this one set up right they can look for to trade the triple Top Shot pattern. Okay next one on the list, the triple bottom shot pattern. I'll go slightly faster now since I think you should probably know what to expect. So this is a bullish reversal chart pattern.

So this is where the market at first is in a downtrend. then it makes a low bounce up higher, comes back down lower. Retest this lows bounce up higher. Re-test the lows.

Once again, they thought they could break the price down lower. The sellers they are. They thought, man, this is our time, it's victory. Whoa.

But guess what? Market bounce up higher and then they fail to. You know, take the price down lower. So at this point you have what we call the neckline over here. and if the price breaks Above This neckline.

this is where we say the triple bottom pattern is a confirm and the market could possibly head up higher. Okay so visually it looks like this. so notice how cute this is. Bounces One point goes up, comes back down.

Bounce your toy goes up, comes back down. Third time Point: Three times. So three bounces, one two, and three. So three times three attempts to drive the price down lower, but the market just can't go down lower.

What is that telling you? That's telling you that if you can't go down lower then it probably should go up higher. Duh, right? So this is where again the market. once it breaks Above This neckline it could possibly heat up higher. And one thing about trading is that yes a lot of you know Traders technicians.

They like to use the word confirm right? The Candlestick pattern is called verb. The reversal is confirmed. but when it comes to trading, nothing is confirmed. All the stars can align can be it can look as confirmed as confirmed on the chart.

but guess what, things can still go in the opposite intended. Uh Direction So for example, over here the market for all you know we could just break out an X candle bomb right if this bearish uh reversal Candlestick pattern right signaling the head is a false breakout and the market breaks down lower. That could happen as well. but they like to use the word confirm So I'm using the word confirm here with a quotation.

You know this finger the signal to you they know don't fake it as 100 guarantee but take it with a kind of like a probability probabilistic mindset. Yeah, so this is the uh, okay, the triple bottom chart pattern. So how can you trade it so get uh, numerous? You can trade numerous way you can use. you know, the break and retest the first pullback.

Something like this goes up, Then maybe it makes a pullback like this. Okay, some type consolidation then you can kind of like identify this uh flag pattern right? We'll talk about that later and if the price breaks Above This highs it can look to go along over here. Okay, and where do you set your stopwatch? Your stop loss can go distance below this lows somewhere about here. so from here to here would be the size of your stop loss.

Okay, so we can see that this is a pretty nice tight stop loss. and if this is, let's say really the uh, the bottom right? And if the price does break up higher, you can see that you have a pretty favorable risk to reward on this trade as well. Yep, and that's pretty much it right for the reversal shot patterns. In the next section, we're going to talk about continuation chart patterns.

Exciting stuff, so let's get to it. Okie Dokie! So next up we have the cup and handle pattern. This is our Bullish Trend continuation chart pattern. Okay, so this is the first one on the list and how this pattern looks like something like this Market is in an uptrend, goes up higher, makes a pullback, goes up higher, makes a pullback, goes up higher, and this time wrong.

When you see a cup and handle pattern foam, you'll notice that the pullback is much longer in terms of duration compared to the earlier pullback. Compared to the earlier pullback, this pullback, the duration is much longer. so it makes a pullback and then starts to, you know, kind of like consolidate slightly over here. So at this point, right there is nothing bearish on this chart.

In fact, the market is still bullish because you notice a series of higher highs, higher highs, higher highs and higher lows, higher lows, higher lows. And what you'll notice is that for the cup and handle pattern, the market will stage another rally to attempt to break out of this highs. And on this first attempt, it is where it has difficulty breaking out higher. So this way you notice a small pullback over here where the sellers try to exit some selling pressure.

But at this point, again, uh, sellers couldn't really push the price any lower. It in fact, it has difficulty breaking below this swing low. So this tells you that the overall the market is still bullish and then at this point you can actually draw this area of resistance slasher neckline. So when the market if it does break above this area of resistance, we will say that the cup and handle pattern is formed and the market is likely to continue up higher.

So an example is this over here. So notice how this Market is in an uptrend goes up. oops, goes up. Makes a pullback goes up this time around.

Notice the pullback. the duration is much longer compared to the earlier pullback. Then it tried to break out of this Highs but couldn't quite accomplish yet. So instead what it does is that it makes a pullback from somewhat of a consolidation and then when the price breaks above the size, this is where we say the cup and handle pattern is complete and the market could possibly head higher.

So now the question is, how do you trade the cup and handle pattern? So this one is again, you can trade this. You know, use trading the brick and retest the first pullback. But another way you can trade it is that notice how tight the consolidation is right for this cup and handle pattern. And by the way, in case you're wondering, okay, right now you know where.

Where is the cup? Where is the handle man? So let me explain to you. so this is what we call the car. The base of the cup is what we call the cup and this over here is what we call the handle where you kind of like hold the cup the handle of the cup. So this is what we call a cup and handle pattern.

So to trade this right, what you can do is that when you notice the handle is very nice and tight. This is what we call a volatility contraction pattern. This is what we call a build up right? Nice tight consolidation where the buyers and sellers they're kind of like equilibrium storing potential energy to to kind of like you know, make the next move right shortly. So whether the next move is going to be up higher or lower is anyone's guess.

But since you know that the direction of the trend is up then you probably want to be trading right in the direction of the trend. So one way to go about trading it is that if the price can break Above This highs you can look to go along right and your stop loss can go a distance below this. Swing low somewhere about here. so your entry point somewhere here.

Stop loss. So let's call it entry E Stop loss here. So there's one where you can go about trading the cup and handle pattern. and of course the inverse is what we call the inverted cup and handle pattern.

So this is a bearish trend continuation chart pattern. So to illustrate this, something like this: Market is in a downtrend. it's lower, makes a pullback, hits lower, makes a pullback hits lower, and this time around, the pullback is actually longer right than the preceding earlier pullback. So you can see that you can expect the pullback to be slightly longer, slightly deeper as well.

Okay, and then what happens, The market starts to hit down lower, try to break up the lows, but not quite there. Yet instead it makes another pullback a time, another rally up higher. But you can see that the rally is pretty weak, right? It's so weak that it couldn't even take out this previous swing. High Over here, and at this point you have what we call a neckline or an area of support if you want to call it.

And if the market comes down low and breaks below this lows of support, you can expect the price to hit down lower. So this is what we call a inverted carpet handle pattern. So just to show you over here, you can see: Market makes a move down lower, a slight pullback, move down lower, slight pullback, move down lower, slight pull back, and move down lower. and then you have a deeper pullback, and this time around, the pullback is much longer in duration and it starts to hit down lower.

It tries to take out the lows but not quite there yet and then it forms a consolidation. a build up over here. Okay, so at this point this tells you right at this juncture, it tells you the price action tells you that the bias and sellers right. They're kind of like fighting a war, right? The bodies are trying to push the price higher.

But no, the selling pressure is stepping in like holding the price down lower. And you can see that. To me that's a losing battle right for the buyers because they can't even push the price up higher to take out this previous swing guy. So this to me is a sign of weakness And since you are, you know the overall trend is down.

When the market breaks down lower, there's a good chance of this Market continuing down lower. So this is what we call the inverted cup and handle pattern. and once again to trade this you can you know trade what we call the the uh, this build up over here. Notice this nice tight consolidation.

This is significant because if the price breaks below this low scale, look to go short your stop-loss again. because you have this tight consolidation, you have this highs over here. You can reference this highs to set your stop loss possibly somewhere about here. Okay, imagine without this consolidation right? the next logical place to set your stop loss is actually probably somewhere above this swing.

High which is going to be pretty large, so that type console consolidation gives you a relevant place to set a stop loss a title stop loss, which then offers you a more favorable risk to reward on the trade. Okay, the next one on the list is what I call the ascending triangle Chuck pattern. Well, I didn't call the ascending triangle chocolate and this is what people are Traders right? who came before me? call it and it's one of my favorite chat patterns to trick because it's a bullish Trend continuation shot pattern and I find that it's actually one of the most powerful ones to trade because the psychology, the price, action, the meaning behind this pattern is just so significant. So let me explain how it works.

So for the ascending triangle pattern again, Market is in an uptrend, goes up higher, makes a pullback, goes up higher, makes a pullback, goes up higher, it makes a pullback, then it starts to go up higher again but fail to do so, then makes another pullback. But what's interesting is that this pullback now. okay, it did not take out this lows over here, right? In fact, you make a slight pullback. very head up higher once again.

And at this point, right? you have this what we call a area of resistance and sometimes we might have another smaller pullback before the price breaks out higher. So when it breaks out, this is what we call A ascending triangle chart better. because notice how the higher lows one Higher low, higher low high low. you can actually connect the lows right and get what we call an ascending triangle chart pattern.

So this to me is a sign of strength because it tells you that it's a story of the buyers right, willing to fight to fanil for every inch right, trying to push the market up higher so you can see this. uh, buyer is trying to push the price up higher higher higher. Even just in front of resistance, They're still willing to buy at this higher prices. So why would people want to buy in front of resistors? Why would they want to, uh, still be so? uh, how should I put it? Why are they still so strong, right? Even just in front of resistance? Well, probably because they expect higher prices to come.

So that's why you're willing to buy in front of resistance because you think that the market is likely to break out. so before it breaks out, you quickly get on board. So this is a sign of strength. Okay, so this is an ascending triangle chart method, so also notice right the story.

I Imagine someone who is shot this. Market If you are, let's say the market. Someone look at this oh price that resisted sell or Price comes back into resistance sell. the more time resistance is tested, the stronger it is.

So let me shot it resistance. So let's say you are shot resistance. Now what happens when you're shot resistance? Where will your stop loss be? Well, probably your stop loss is going to be above the highest of resistance right? Well that's what most things but what gurus will tell you put your stop loss above resistance. So imagine right when the price breaks above resistance, it's going to hit this cluster of stop loss.

And this cluster of stop loss are in is actually you know, buy stop orders when you're short the market. Your stop loss is in essence a buy order right to get you out of the trade. So when he hits that cluster of stop loss that is strong buying pressure to push the price right further up higher. So this is why I Love trading the ascending triangle shop at them because the psychological of the market participants getting trapped, the sign of strength from the bias is just you know.

Uh, it's what I Just love to trade and on top of it is usually what you get is a horizontal line over here which is very easy to identify compared to you know, slanted diagonal chart patterns which can be a little bit more subjective when you draw those chart patterns. So here's an example of how it works right? So you can see over here: Market is in an uptrend goes up higher, makes a pullback goes up higher it makes a pullback goes up higher, couldn't quite break out yet, then makes a pullback, then over here it attempts to break up once again and in this point it did manage to break out. So sometimes the ascending triangle could have just a two higher low right higher. This uh, this is one Higher low right? This is previous higher low so let's do.

Sometimes it could have three, sometimes even four. It really depends on how the price section of the market unfolds itself, but as a bare minimum, usually you want to look for at least two or higher low to classify it as an ascending triangle chart better. but for me personally I like to see at least right three higher lows. so it comes up once again, then makes another pullback.

then over here. so I have one, two and three so that is my preference. Level is three high lows. So how can you trade the ascending triangle chart pattern so in numerous ways that you can trade it? So one example could be you can look to trade the retest, the break and retest.

so Market breaks out, comes back and re-test this previous resistance that could become support and you can look for something as simple as like a hammer Candlestick pattern like this. Okay, so this is a hammer Candlestick pattern telling you that the buyers are stepping in right and about to push the price up higher so you can look to enter next candle open, Your stops can go distance below the low possible. Target Just before this recent swing High To capture that one upswing of this move right? so there's one option that you can do. Another option is that you can look to trade the breakout because notice that you have a series of higher lows coming into resistance and this gives you logical plays to set your stop loss.

So let's say for example, uh, let's say for example Market over here breaks out right. You can actually reference this swing low to set your stop loss possibly somewhere about here to set your stop loss. So of course if you have more higher low right into resistance you can, you can actually visualize that your stop loss is going to be tighter. So just follow along with me for now.

So let's say over here, the price didn't break out so there's nothing over here. Let's say didn't break up and in fact it came back down lower, then it goes back up higher, comes back down lower and over here, and finally you break out over here. Let's say it breaks out over here. So now at this point you can actually connect the upward trend line up slightly higher and when breakout at this point, okay, notice that your stop loss now can be tighter.

You can just reference this, swing low and set your stop loss somewhere over here, right? So you have kind of like two obstacles right for the market to to go through to reach your stops. Number one, it has to break below this swing low. That's obstacle number one. Number two: It has to break this upward trend line right to reach your stop loss.

so you can see that your stop-loss is at a very favorable location. It's pretty nice and tight by the same time, right? It's at a logical level, So this is. this is now you know why. I Like to see, uh, multiple higher lows into resistance right when I trade the ascending triangle chapter usually I look for at least LS3.

But yes, this chart example I provided only two, so deal with it all right. The next one on the list is the descending triangle chart pattern. Basically, it's a bearish trend continuation chart pattern. It's just the inverse of the earlier one, so mark it is in a downtrend, makes a pullback, continues down lower, makes a pullback, continues down lower, makes a pullback, tries to continue down lower, but can't break below this low before the buyer step in and push the price up higher.

Then it hits down lower again. Just couldn't break below the lows before the buyer step in and push the price up higher. And then this time now it tries to break the lows once again and what we have over here is what we call the an area of support. Okay, so if the price can break below this area of support, this is where we say the ascending triangle pattern is complete and the market could possibly hit down lower.

And if you look at the price section of this pattern you know that it's just it's a sign of just you know. Bearish bearish bearish. Look at the bias right? The the buying pressure, you can see that it's getting weaker and first time or rather over here it pushed to this highs over here all right. Then subsequently you try to push but it couldn't even break Above This Heist before it continues down lower.

and then this third attempt you try to push again couldn't break Above This highs before it continues down lower. So you can see that the selling pressure is getting stronger and stronger each time the buyers try to. You know take control but they just get squashed by the sellers. Okay and again.

Imagine someone who is long, right? Whenever price comes into support they say oh, buy price come support Buy price comes into support Buy. Where will the buyer sell their stop-loss Probably just below support. And even if you are long and you have a stop loss, let's say to protect you, to get you off the trade, your stop loss is in essence like a sell order to exit your long position. So you can imagine here a cluster of stop loss accumulate just below support.

And if the price breaks below support. that cluster of sales stock orders will be triggered. That will you know fuel further selling pressure down lower and on top of it, right? What about breakout? Traders will say oh, price is breaking out. Let me shot this market so you can see that there's a stronger selling pressure all coming together right to help push the price down lower.

So this is why our descending triangle pattern is a bearish trend continuation chart pattern. So it looks something like this again. Market Over here is in the downtrend. it hits down lower, makes a pullback, hits down lower, pullback hits down lower, makes a pullback, heads down lower.

makes a pullback notice the pullback gets weaker and weaker. That's why you have a series of lower highs, lower highs lower. Highs Coming into this area of support. Okay, and then when the price finally breaks below this loads of support.

you can look to Cool Shot and this is where we say that the descending triangle shot pattern is completed and the market could possibly head down lower. Okay, so again, how can you trade the descending triangle chart pattern? Uh, numerous way you can trade earlier, share with you the break and re-test You can look to trade the first pullback. You know the breakout if you wish to, right? So there are many ways, many techniques that I've explained throughout this video and all those techniques are applicable right to trading. the descending triangle chart pattern.

Okay, the bullish pennant, right? So this is a bullish Trend continuation chart pattern. And here's how it looks like. so Market is in an uptrend goes up, makes a pullback goes up, makes a pullback goes up. Makes a pullback goes up, but couldn't break out of the highs.

Makes a pullback goes up. couldn't even break Above This Highs That makes a pullback goes up. So at this point, you can see that, the market, right, the volatility of the market is actually shrinking. Okay, so if you just connect the lines right, you probably can connect the highs and the lows together.

So this is kind of like a symmetrical triangle pattern, but on a much smaller scale. right? If you draw this, there's the lines at the top and then the bottom right. You'll know you'll be able to connect the lower highs and the higher low. So when you see this type of price section, it tells you that the market, the volatility of the market is getting smaller.

It's telling you that volatility is shrinking. And as you know right, volatility in the market, it's never constant. It moves from a period of high volatility to low volatility and vice versa. So during Market periods like this, this is what we call High volatility Market period where there's a expansion in price, where the market is trending in One Direction This is again, uh, usually a larger volatility Market environment.

And when you compare to this, this is where the volatility of the market is smaller. And as you know, right when volatility is low, right you would expand. You would expect an expansion in volatility. So this way if the market does, let's say breaks above this.

Uh, this this downward trend line over here. This is again, uh, entry trigger that you can use to get long and to write to wave up higher. So this is what we call it bullish. Uh, pennant, right? So the pendant is basically this portion over here.

so on a chart it looks something like this. Okay, okay there you can see it better. So notice Market is an uptrend it makes a pullback, goes up higher, makes a pullback goes up higher, makes a pullback goes up higher, makes a pullback goes up higher. So again, you can connect the lower highs and higher low.

So this is the lower high you connect over here and then there's the higher low that you can connect over here. So notice again, the volatility of the market just getting smaller and smaller. Notice the range of the candles over here just getting tighter. Notice the range over here of the candles right getting smaller and smaller.

So this tells you that the volatility of the market is shrinking and we would expect volatility to pick up and one way to get on board this. uh, bullish pennant price pattern is when the price breaks and close Above This downward trend line. you can use it as an entry trigger to go long and to Catch the Wave up higher. So again, your stop loss again right? So let's say over here is your entry right? Let's see if the price breaks and close above the uh, the downward trend line is your entry your stop loss right? Can just go a distance before below the recent swing low.

So let's say we use this as the for example. This is the recent swing where your stop loss can go somewhere about here. Okay, so entry is here. Stop loss will be somewhere about here.

Let's call it SL Now what about Target So there are usually when you trade such: Trend Continuation sharp patterns. It's useful to Trail your stop loss. Maybe you can use things like a moving average to 50 period moving average to Thriller stop loss. So if you overlay with the moving average like this right, you can hold that position right until the price breaks and close below your moving average.

So that's one way to go about writing the train up higher. Another technique that you can use there is what we call again the price projection method which I talked about earlier. but for the bullish pattern. what you can do is you calculate what is the the length of the earlier move.

So let's say the earlier move is from here to hear from this lows to decide. So let's say to simplify let's say from this highs down to the slows the distance it moves is let's say twenty dollars for example. Okay so nothing to do with the numbers on this chart just come up with an example. So what you can do is then you take the uh the lows over here right and you project up by 20 as your target level to take profit.

So let's say for example let's say this level here is 50. Okay so you take this fifty dollars plus this range over here which is twenty dollars right and your target your target profit for this particular trade. If you're buying the the breakout over here is at Seventeen dollars. So seventy dollars is where you look to take profit.

So basically you're calculating the distance of this this highs to this lows from this highs down to this lows over here and then you project it up higher right to determine right where you can take profit. Yep now another variation of the bullish panel right is what we call a bull flag pattern so it's similar to the blue pattern. The story behind it is similar. Only the difference is the price action.

The weight unfolds is a bit different so if you notice earlier the blue panel right you have a series of lower highs, lower highs and higher lows right as the price section you know gets Tighter and Tighter. But for a bull flag pattern, you don't have this price action. What you have instead is kind of like a two parallel lines, right? So this is the first parallel line and this is the second parallel line. So in fact you have a series of lower highs and lower lows.

all right and again, the volatility of the market notice how it starts to shrink. so once again right to trade this right when the price breaks above the high of the flag pattern. That again could be an entry trigger for you to go along if it breaks above the high, or if you want to wait for a break and close. That is fine as well.

And to set your stop loss, Usually you set it the distance below the low of this flag pattern somewhere about here. Okay so let's say if you place a buy stop order as your entry somewhere Here this is your entry and let's say your stop loss will be somewhere here, right? A distance below this low. So this is how a bull flag pattern works and this is how you can actually look to trade it. Next we have the bearish panel so this again is a bearish trend.

Continuation chart pattern Market is in. the downtrend goes down lower, makes a pullback, goes down lower, makes a pullback goes down lower, makes a pullback, tries to head down lower but couldn't break below the lose, then hits a pullback up higher but again failing to break out of this highs, Then it hits down lower again. couldn't take down, take up this low before it makes a slight pullback which again failed to take out this Heist and then goes down lower once again. So at this point you can actually connect the highs and the lows and notice at this point the volatility of the market is shrinking as well.

So if the price can break below this, uh, this upward trend line. okay, let's break, let's say bricks and close below it. We'll say that the bearish panel right is confirmed and the market could possibly hit down lower. Okay so to give you an example, they look something like this.

So Market over here you can see it makes a pullback, hits down lower, makes a pullback, heads down lower, makes a pullback haze down lower. couldn't break below this low over here before you Stitch another rally try to hit down lower, just couldn't break below this low before it rally. Then it hits down lower once again and finally when he breaks below this upward trend line that you can you know throw. This is where we say the bare pennant is uh confirmed I used Confirm with you know all the code and code over here because nothing is confirmed in trading.

but it's just kind of a lingo that we use to say hey, you know the pattern is completed but just because it's completed doesn't mean it's guaranteed to work because it could be a false breakout pattern. Yeah, so hopefully you understand where I'm coming from. Yeah, so again, uh we'll say that the pattern is confirmed right and the market cool would possibly you know hit down lower. So again you you might hear me saying things like the mind could I'll never say things like guaranteed for sure 100 No, no, that doesn't work in trading right? We are dealing with probabilities, right? Never certainty.

I think that's a quote from Martin J Prince Yeah so this is the uh bare pennant pattern and of course it's cousin, right? It's what we call the Bear Flag pattern which again is similar. Notice how the price over here, uh, case down lower makes a pullback, hits down lower. Then we form this uh, bare flag pattern. You can see the differences that you have a parallel line instead of.

you know, uh, the diagonal line converging for the pen and pattern. But in this case we actually have a parallel line. So when again, when the price breaks below the low of this trend line. okay over here right we say that the pattern is a confirm and the market could possibly head down lower.

Okay, I know I've spoke a lot about the chart patterns and stuff like that. so let's do a quick recap to the things that you've just learned right? First and foremost we spoke about the bullish reversal patterns. At the start, we talk about the double bottom where the price just made a retest the bottom twice. Over here over here failed to break down lower and we have this neckline when the price breaks.

Above This Neckline We'll say that the double pattern double bottom pattern is completed and the price could possibly hit up higher. This is the head and shoulders pattern. Once again, this is the left shoulder. This is the head.

This is the right shoulder and this is the neckline. If the price breaks above the neckline, we'll say the pattern is confirmed right and the price could head up higher. And then this over here is the triple bottom pattern, right? Notice that notice the price tested once, twice, three times couldn't break out lower and when it breaks Above This neckline, right? We say that the market could possibly head up higher from there. And then we spoke about the bearish reversal chart patterns.

All right, let me zoom in right. So again, this is just the inverse. a double top. that's the ones.

Test it twice. couldn't go up higher. Then when the price breaks below this neckline right, we'll see that the double top pattern is completed and it could possibly head down lower. This is the Head and Shoulders pattern.

I. Do apologize. This actually should be what we call the inverse Head and Shoulders pattern and this is what we call the head and shoulders pattern is the left shoulder. This is the head.

This is the right shoulder. When the price breaks below this neckline, the market could possibly hit down lower and this over here is the triple top test at once. That's the twice tested three times and then when it couldn't hit up higher and let's say it does break below this neckline, this Market could possibly hit down lower. Then moving on we talk about the bullish right continuation chart patterns.

We talk about things like the cup and handle pattern right so you can see the cup and handle, usually the pullback. the duration is slightly longer. Then we have this consolidation here otherwise known as the handle right And if the price breaks out of this highs, the market could possibly continue higher. Then we have this ascending triangle pattern where we have a series of higher lows higher lows.

Let's say it makes another one another higher low into resistance. If the price breaks above resistance right, we say that the ascending triangle pattern is completed and could possibly head up higher. Then with the blue pattern where the price breaks above, let's say the downward downward trend line right. We'll say that again, the trend could possibly resume and hit up higher.

Same for the blue flag pattern as well. Then moving on we talk about the bearish right continuation chart patterns which again is just the inverse. We have the inverted heading, inverted cup and handle pattern. We have the descending triangle pattern.

We have the bare pattern and the bare flag pattern. So again, this is just a quick recap to the different patterns that you have just learned. and I know it's a lot, right? Because uh, you know we talk about continuation patterns, reversal patterns. But don't worry if all this seems overwhelming to you.

because in the next section, I'll walk you through the strategy here. How do you actually use chart patterns right and implement it in your own trading? We'll talk about the precise entries, the exits, the risk management, the target profits, so on, and so forth. So if you are kind of like you know Whirlwind right now, don't worry, things will make a lot more sense. Right where we move on into the trading strategy section right which is coming right now.

Okay, the first trading strategy that I want to share with you is what I call the double Top false Break. So if you recall earlier, I Thought about the double top chart pattern and there's a way a technique that you can actually use to enter your trade with low risk even before the price breaks below the neckline. How do you do it? So let me explain more in this example so you can see that. the overall market right? This is the chart of New Zealand against the US dollar right? the daily time frame.

You can see that the overall trend of this Market is in the downtrend. And what's interesting is that this Market has come towards an area of value. If you're not familiar with that term, it simply means uh. areas on the chart where buying or selling pressure could come in.

So this over here is an area of value. Why is that? Because it's at an area of resistance As you know right? Resistance is an area where selling pressure could come in to push the price lower. So once I see this on the daily time frame I want to go down to a lower time frame like the eight hour time frame and look for this specific Uh chart pattern. So an eight hour time frame? It looks something like this.

On the eight hour time frame, you can see that this Market respecting this area of resistance tested once, come down lower, test that, twice, hit down lower, and now we're back at this area of resistance once again. And if you look at the most recent price action, what do you see, you see that actually A All right. It's still a bit too early to tell, but you can actually see that half of a double top pattern is already being formed. So this is the first half of the double top pattern.

We could get another one over here, and thereby over Here is the neckline right and then you know forming this double top chart pattern over here. So what we're looking for is actually this second portion right to form to show us a bearish price rejection. So let's see what happens. So in this case the market uh pays down lower lower then it starts to Rally up higher.

Now over here we are back at this highs once again and now I will double top pattern is near completion because as you know a double top pattern is so called. only confirm right if it breaks below this neckline. Over here there's the neckline that we draw right in and if the price let's say hits down lower and breaks and close below this neckline, we'll say that the double top chart pattern is completed. but since we have numerous factors right working in our favor, is it possible to actually enter the trade before the price reaches the neckline? Another is is yes, how do you do that? Because look at this over here you know the overall Market on The Daily time frame is in the downtrend.

You know that this is an area of resistance that I've highlighted earlier and you can see over here we have actually a entry trigger the signal that you know the sellers are stepping in and about to push the price lower. What's significant about this Candlestick pattern is what this is what we call a shooting star pattern right? This tells us that you know the price. I'll do a quick tutorial on the Candlestick pattern. the price open over here and at one point in time you try to push the price up higher.

Okay, but when reaching near the highs, the seller suddenly came in and took control and pushed the price down lower and eventually closing near the lows of the day. So this is where you have this what we call a shooting star pattern. So the story is that the bias right there called overwhelm at this highs over here. selling pressure came into control and closed near the lows of the day over here.

As you can see over here near the lows of this uh candle. Okay, so this is an entry trigger to go shot. So what you can do is go shot on Nick's candle open. So let's say you go shot on next candle open.

let's you know. Highlight in green over here. Okay, let me just change this to Green Let's say that is our entry point. I'll just remove the gray box right since it's quite hard to see.

Is there a darker green? Maybe this darker green over here? Okay, now what about stop loss right? So usually I set my stop loss a distance away from price structure, A distance away from the highs, The distance away from resistance. So know that this is resistance, right? You want to set your stop loss somewhere about here, so get an objective way to do it right. A quick tutorial Again, you can use an indicator called the average True Range search for ATR Click on this. you come up this one over here.

so I like to use a 20 period ATR I Like to use SMA Simple moving average click Ok, so what you see over here is that the ATR The value right now is about 41 42 Pips Over here, let's make it 42 Pips So what you're going to do is to find out what is the highs of this candle over here and then you add on 42 Pips So I'm going to get my trusty calculator and I find out what is the high over here. So the high of this candle shown on trading view is about uh, 0.6575 right? So the high is at six Six Five Seven and five Zero Point Six Five Seven five I'm going to add 42 Pips to it so it's plus 0.0042 and that gives me a value of let's see: 6617 0.6617 How do I get this value 0.0042 Again, it's over here. there's a 20 period ATR How do I get 6575 Again, that's simply the high of this candle over here and you know you take six Five Seven Five plus 42 Beeps You get six Six One seven. So let's see where is Six Six One Seven Six Six One Seven will probably be.

Let's change this to rate to Signal or stop loss 0.6617 Okay, so our stop losses over here. This red color line over here. great. Now what about Target So since you are now trading right even before the double top pattern is completed, you can actually be in profit even before the price breaks below the neckline.

So here's the thing about neckline right. Just as to you know why sometimes it's not, uh, the best time to shop the markets when the price just because the price breaks below the neckline. Because if you think about this logically, this is actually an area of support, the price would re-test the neckline and then bounce up higher and continue this uptrend. That could happen.

So again, if you want to be a little bit conservative, you can actually have your target at the neckline right where people are looking to shortest. Market You already take profit right? So you can exit half your position ri