Hey hey, what's up my friends, so welcome to the ultimate technical analysis trading course for beginners and here's a true story. When i first started the financial markets, i wasn't a technical trader. I was actually more of a fundamentals guy i was trying to emulate warren buffett to find the next stock that i can hold for the next 30 40 years and as a fundamentals person right. What i realized is that by the time the fundamentals of a stock has turned bad or sour, i would have lost a huge chunk of money already, so that kind of you know led me to find something else, and that's where i got introduced to technical analysis, Because it's more faster in that sense! So when i entered the world of technical analysis, i was overwhelmed because there's just so much information out there.

You know you've got indicators, support resistance, chart patterns, candlestick patterns, rsi, mainly pivot points. You know where. Where do you even begin, you know what should you focus on so it's after years of trial and error researching right, then i realized that less is more when it comes to trading. So this is why, in today's training, okay, i want to shortcut your learning curve.

I don't want you to go through the same. You know misery that i went through with technical analysis. So here's what you'll learn in today's training number one, why 95 of traders lose money with technical analysis and how you can avoid it number two: how to know when to buy, sell or stay out of the markets number three: how to identify the best levels to Trade, so you can find low risk and high reward trading opportunities number four: how to avoid jumping into trades too early. So you can avoid unnecessary losses.

Number five: when to take profits before the market turns against you and wipe out right all your open profits and you hate to watch. You know your your trade right. You know going to the moon after you exit the trade, then you know i'm going to share with you this one technique that you can implement right. That prevents that from happening and along the way, i'll share with you a ton of charts, examples and much much more sounds good.

Then let's get started. So my definition of technical analysis is this right. Technical analysis is using past data like chart patterns, candlestick patterns, volume, indicators, etc. To help you make a trading decision and before we dive deeper into technical analysis, which is what this training is all about.

I want you to be aware of two mistakes right that many traders make many losing traders make this mistake, number one. They add too many indicators tools right to their charts because it makes them look like a professional trader. But here's the thing: if you have a chance to look at the screens, the monitor of you know pro traders, you realize that their charts are actually quite empty. They have tools on it right, but it's not a lot.

It's usually relatively little compared to new traders who just got started in trading in the end, the moving average rsi, maybe you know make the charts - looks also complicated thinking. You know it makes them look like you know, a real trader, but that's usually no further away from the truth. Okay, so the reason why you want to add too much tools to your chart is because you will get analysis paralysis. You will get conflicting information and you will feel overwhelmed all right.

It's like you know having too many chefs to make one soup. You have too many chef, each one add their own flavor, their own spice, their own twig to the soup. The soup is gon na taste like crap and it's the same for your trading. If you add too much stuff to your charts right, you will hurt your own trading results.

Mistake number two! You don't have a framework to work with. So i know this sounds a bit fake, so let me explain so let me ask you: let's say you know you want to build a house. How would you go about doing it? Will you just you know, go out there to like, you, know a store and let me buy a toilet boat because i need i need a toilet bowl for my house. Oh here's, a sofa, let me buy a sofa.

Oh, i need a bait. Let me buy a bait and you go back home. You put your bed down here. You put your sofa, you plant a toilet somewhere beside your bed, and you know just like this.

I hope not right, because that, if that's what you're doing you will live right in a pretty done ugly house, so what most people will do is they have a blueprint? They have someone to design right the framework, the layout of their house. Maybe if it's a three-story house, the first story could be building a kitchen on the first floor, then maybe have a living room in a guest room on the first floor. So this is where you kind of play and entertain yourself and cook. Just for the first floor of the house, second floor could be where you're resting, so you have more bedrooms, maybe five to six bedrooms.

On the second floor, you have more beds, you have toilets right, so you don't have to wake up middle of the night and walk 50 meters to your toilet and stuff like that, and maybe the third floor is your home office or your main cave or whatsoever. You have all the latest technology entertainment on the third floor, and this is how you would go about you know. Building your house. You have a framework something to refer to right to help you, you know, make your purchase decision.

So you know where you know things will be, and this is the same for trading. You must have a framework okay, so so this right will be core right to today's entire training, because the framework that matters right is this. There are only four parts to it. Very simple, but i'm gon na dive deep into each and every single part number one market structure.

This right is in essence, right trying to find out what is the current market condition. So you know what to do. For example, if you know the market condition is in an uptrend, then you look for buying opportunities. If the market condition is in a downtrend, then you look for selling opportunities, so don't worry i'll dive deep into this aspect later on.

Second part, is area of value. So, just because a market is trending doesn't mean you want to blindly hit the buy button because the market could be overbought right and about to make a reversal or a pullback. So this is where you want to identify areas of value right where you can find a low risk entry to enter a trade in essence right you're, trying to find out where on the chart right, should you buy or sell the third thing entry trigger this answers? The question: when exactly do you buy yourself when exactly what is the thing right that would trigger you to get into a trade and finally, once you're once you're in a trade right, you must also plan your exits. What if the market moves in your favor? Where will you take profits? What if the market moves against you? Where will you cut your loss? So in essence, this is the framework right that we will be learning more later and for now, let's do a quick recap.

Number one technical analysis is simply using past data to help you make a trading decision. You must have a framework to work with. If not you'll be lost right, like you know blindly, you know building your home right. If you don't have a framework, you don't have a blueprint, you will get lost, you will get confused and you will, you know, have a horrible looking house right.

So if you don't want that start with a framework and the framework that i've shared with you is using market structure, identifying your area of value, defining your entry trigger and then planning your exits. So in the later section right we will dive deep into each of this component within the framework. So, let's get started now in the next section, you will learn how to use technical analysis to define the current market condition. So you know whether to be buying selling or staying out of the markets.

So let's move on. So let's talk about market structure, so market structure seeks to answer this question: what to do right? What should you do in different market conditions? Should you be looking for buying opportunities, selling opportunities or to stay out of the markets? So the way this works is that market structure it helps you to define the current market condition. So you know whether to be buying selling or staying out of the markets makes sense. So how do you identify right market structure or if you want to phrase it right? How do you identify the current market condition? Well to do it right? There are two techniques.

I want to share with you and bear in mind. There are more than two ways to do this, but i just want to share with you two useful techniques, because if i share with you too many techniques, you get overwhelmed, get confused and you give up so i'll. Just share with you two useful ones: number one candlestick chart and number two moving average. So let's have a look at this too right in more details.

So, first and foremost, let's talk about candlestick chart. What exactly is this so candlestick chart is a method of reading a price chart. So it's not the only way to read a price chart. You can use things like bar chart, renko, chart, etc, but we'll stick to candlestick chart for this.

This training and a candlestick chart it consists of individual candlestick patterns, so candlestick patterns is something that you are probably familiar with. It looks something like this: this is one candlestick pattern could have a little bit of upper shadow and lower shadow. Sometimes this could even be you know, let's say a darker color one could be like, let's say in this case, black color or even red - to signal uh lower close right - something like this. So this is what we mean by candlestick pattern.

So a candlestick chart consists of many individual candlestick patterns, so it's just like a forest consists of many individual trees, so we will talk more about candlestick patterns later on, but for now this is kind of like the macro. The big picture i want to share with you: how do you actually use candlestick chart to identify the market structure so first thing: first right identifying market structure using candlestick chart. So there are three types of market structure you want to pay attention to number. One is an uptrend, this consists of series of higher highs and higher lows, so it looks something like this price hits higher makes a pullback breaks out, higher, makes a pullback and then breaks out higher.

So when you take a step back and look at this, you can see a series of higher high higher high and higher low higher low make sense. So this is what we call an uptrend next one we have what we call a downtrend, so this is in essence the opposite. The price is heading lower over time, so down it makes a pullback heads down lower, makes a pullback heads down lower. So if you look at this big picture-wise, you see a series of lower high, lower high and lower low lower low, and finally, we have what we call a range market.

This is where the price is contained between the highs and the lows kind of like getting stuck in a box. So, let's say, price goes up, comes back down, goes up, comes back down, goes up comes back down, so you can see that it's stuck between these highs and this lows - and this is what we call a range market. So let me share with you a few chart. Examples right, so you know what we are talking about so first one here.

This is the chart of s p. 500.. Let me ask you: what is this market structure? Well, i hope you can see that this is a uptrend. Why is it an uptrend because you see a series of higher lows, higher low, higher low higher low and higher high higher high higher high higher high next one? What about this platinum? So i just want you to pay attention to this chart.

Is this in an uptrend, a downtrend or range, so one tip that i have for you is that if you are not sure, take five feet away from your computer, just walk five feet back! Look at the chart right and ask yourself: is the chart moving higher or lower, or it's going nowhere. So if you look from left to right, i'm sure you can agree that this market, which is platinum on the daily time frame, it's heading higher over time from left to right. And if you look at the more granular details, you see a series of higher low higher low, higher low higher low high low higher high higher high higher high high high. Of course, i didn't draw every higher highs and lows on this chart.

The main thing is just to pay attention to the major swing points right and see whether is it heading up higher lower or you know just start getting nowhere. What we call a range market, another example dollar against the norwegian chrono. So what we can do is go use this uh this platform using is called trading view. You can click reset a chart and just zoom in i mean zoom out a little bit and then ask yourself: hmm: is this market hitting higher or lower over time? So we can see series of lower low, sorry, lower high, lower high low high lower low lower low lower low.

We can see that this market is heading down lower it's in a downtrend and since the market, let's say it's in a downtrend. What do you want to be doing? I hope you are looking for selling opportunities. Why selling opportunities? Because this is the path of least resist resistance, because if you know a market has been heading down lower over the last few months, there's a good chance that it will continue heading down lower. So you look for selling opportunities.

Likewise, if you see a market, that's, for example, this s p 500 heating up higher over the last few months or even the last few years. Then you want to look for buying opportunities, because this market is likely to continue higher and you can see. This is why we want, first and foremost, want to define the current market condition, so we know what to do to look for buying opportunities, selling opportunities or to stay out of the markets. If it's something that we we don't want to trade, we're not comfortable with.

So have a look at another example, this one again uh uk 10-year guild. If you look at this chart, is this in an uptrend, downtrend or range. So look from left to right. You can see this market making a series of lower high, lower high, lower high and lower low lower low lower low okay.

Now, let's move on into something different: how about pound canadian now this is this in an uptrend, downtrend or range. It's a uptrend! I'm just kidding i'm just kidding right, so is it a range market right? Why is this a range market again range market is where the price is contained between the highs and the low. So it's contained between these highs over here and this lows over here. So one thing to point out is that this is not an exact level on the chart.

You should treat this as an area, so if it helps you can use tools like a rectangle tool to draw this as an area like this or maybe even another one over here. So this way you can treat this like an area on your chart, and this is another area on your chart between the highs and the lows, and this is where we call this market or we treat this market as a range market contained between the highs and The lows so one more example before we move on this one here: silver: is this in a range market or an uptrend? So if you look at the chart right as it is right now, i would say that this is in the range market. This market is contained between this highs and then this lows, but if you know zoom zuma out a little bit more, you might now say that this market could be in an uptrend right. Yes, it could be if you zoom up your chart like this, but i would argue more towards a range market, as you can see that it's still stuck between these highs and this lows over here.

So i would say that this is a range market and, of course, what i've just shared with you is using candlestick chart to define the market structure. But it's not the only way, because you can also use tools like moving average which i'll cover next. So what is moving average so moving average is an indicator that you know seems to follow the price. So if you see the price heating up over time right, your moving average will be pointing up higher.

If you see the price heading down lower, you can expect your moving average to be pointing down lower as well, and why is that? And that's because of the math behind it. So let me explain so it's nothing too complicated. It's going to be pretty simple. I promise you so the math behind moving average, or rather the idea behind it, is that moving average calculates the average price over x number of period.

So, let's say if you're looking at a daily time frame - and you have a five period moving average. What this does is that it calculates the average price over the last five days since it's a five period moving average. So let me show you how this uh works. So, let's say you're looking at the chart - and you have you know, bars like this.

This is the first candle. This is the second candle. This is the third candle. This is the fourth and let's say this is the fifth right five candles on the chart and, let's say the closing price of this five bars.

Is you know one two, three four dollars and then five dollars? So so this right, the first candle, means the price closed at one dollar. Second, candle means the price closed at two dollar. This one closed at three dollars: this candle closed at four dollars and this candle closed at five dollars. So let's say you overlay this chart with the five period moving average right.

What will the value of your moving average be? Well, it's gon na be pretty simple right. What you're gon na do is to add the total right of this closing price, so one plus two plus three plus four plus five and you divide by five, since you are calculating the average price over x number of period, our x number of period, in this Case is a five period moving average, so you take one plus two plus three plus four plus five divide by five, and if you do that, okay, your answer will be along the lines of uh divided by five equals to three dollars. How do i know that you can just pull out your calculator and you'll see that this average of this uh five candle, the average price, is three. So let's say we add one dot over here right at this price point i'll explain what this dot means shortly.

So now let's say a new candle has fall right. Price is closed higher on this six candle over here and, let's say it closed at six dollars now. What is the new five period moving average value, so what you're gon na do is you will now? Okay, take the most recent prices right over the last five candles, so one two three four five, so you take two plus three plus four plus five plus six, you divide by five and you get the value of four. Now you might be wondering hey.

We know what about this first, candle number one well, we'll ignore it, because we are calculating the five period moving average. We are just looking at the five most recent candles, so in this case right we have six candles over here. We will ignore this one, the oldest one, so this is the five most recent candles from here all the way to here. So again we just calculate the average of this total value here, two plus three plus four plus five plus six divide by five and you'll, get four dollars.

And what you'll do is, you add, let's say, draw another dot over here. So if the price keeps you know going up higher, what you can do is you realize that your dots gets higher and you connect the dots it will appear as a moving average on your chart. That's how it works. Okay, so hopefully you've got some aha moment down here, okay, so this is just some simple calculation which i've you know i shared with you earlier so now.

The key thing is this right: how do you actually use moving average to define the market structure? So, let's find out so for an uptrend. What you can do is when the price is above the 200 period moving average. You can see that the market is in an uptrend in a downtrend right. It's when the price is below the 200 period moving average.

So some of you might be wondering hey why 200 period moving average? Well, there's really nothing magical about this, but when we use 200 right it will take into consideration right 200 bars on your chart. So it will give you like a long-term guideline to whether this market is hitting higher or lower. So this is kind of a way to help you define the long-term trend and, finally, the market is in the range right when the price chops up and down the 200 period moving average. So let me just show you so, for example, euro against the usd i'll add in the moving average here.

So if you don't want, if you're wondering how to do it, i just go to indicators. You look for moving average right. You can see over here. Just click on this and the line will appear so in this case i already have it on my chart and if you look at euro against the us dollar, you can see at this market.

We can see that this market is in an uptrend. The price is above the prices above the 200 period, moving average. Now, if you look at the dollar against the south african ram, you can say that this market is in a downtrend, because the price which is here is now below the 200 period moving average. And if you look at this one over here pound against the canadian dollar, you can see that this market is in a range, because the price right you can see it is chopping up and down the moving average okay.

So we can conclude that this market is in a range and that's how you can use moving average to help you define your market structure. Okay. So let's do a quick recap. Number one market structure helps you to define the current market condition.

So you know whether to be buying selling or staying out of the markets. So, for example, if you see a market in an uptrend, what do you want to be doing? Well, you want to look for buying opportunities. That's the path of least resistance. If you see a market in a downtrend, what should you be doing? You should be looking for selling opportunities, because the market is heading down lower over time and there's a good chance.

It will continue to hit down lower. And finally, if you see the market is in a range, then you can look, you know, buy low and sell high, buy near the lows of the range and sell near the highest of the range and i'll explain how you can do all that in the later Section, but for now just understand you know what is market structure and how it can you know help you alert you right to what you should be doing at any one point in time, so market structure consists of uptrend, downtrend and range. You already know this and finally, you can use a candlestick chart or moving average to help you define market structure. So now, at this point right, you have, you know, learned market structure, but it's just the first step, because a market could be in an uptrend, but it doesn't mean you want to blindly.

You know hit the buy button because the market could be getting ready to make a pullback or even a complete reversal, and the last thing you want to do is to buy high and sell low. So this is why it pays right to be watching right for your areas of value on the chart. So you can better time your entries, and this is what we'll cover next so area of value and by the way, if you're, enjoying this training so far smash the thumbs up button if not hit subscribe. So where was i area of value, so area of value? In essence, right helps you to answer this question where to buy or sell.

So, if you recall, market structure tells you what to do. Should you be looking for buying opportunities, selling opportunities or maybe to stare off the markets totally for area of value? It tells you where, where on the chart, to buy or sell so i define area of value like this right area of value, helps you to identify areas on your chart where buying or selling pressure could step in. So let me explain this in more details, so how do you identify area of value? So again, there are many techniques that you can use, but for this training i'll share with you two support and resistance and moving average. So let me explain so what is support and resistance? So support is an area on your chart where buying pressure could step in.

So if you look at this right, let's say price goes up, comes down, goes up, comes back down, goes up comes back down now, from the looks of this right, we can say that this is an area of support, because this is where previously, the price has Bounced off once twice and now, possibly a third time over here, so this is what we call an area of support: okay, an area on your chart where buying pressure could step in and push the price higher. On the other hand, we have something called resistance. This is an area on your chart where selling pressure could step in and push the price lower. So it looks something like this.

Let's say you know: price is in a downtrend, comes up, bounce up comes back down, goes up, comes back down, goes up and we can draw this as an area of resistance. Price got rejected once twice and now maybe a third time over here. This is what we call an area of resistance is where potential selling pressure could come in and push the price lower. So this is the opposite of support, and another thing to add is that when support is broken, it could become resistance and vice versa.

So, for example, let's say market is in a range like this: okay goes up, comes down, goes up, comes down and breaks out of the range breaks out of resistance. Now, when it comes back down lower this area of resistance, this previous area of resistance right resistance resistance. Now, once it breaks out of resistance, it could now become support. This is what we call previous resistance, which now become support.

So likewise, if support is broken, it could now become resistance. So, let's say price is in a range. Then it breaks down below support and it comes back up now. Previous support support.

Support could now access resistance and it can actually uh sort of, like you know, anticipate right. The price could reverse lower from here. Okay, so this is what we mean by when support is broken, it could become resistance and vice versa. So let's have a look at some charts, so you know what i mean so first one here is platinum.

You can see the support and resistance here in action. So this is, you can see previous resistance price. Then you know hit down lower tested once and had a messy slide off price. Then came back and re-test resistance head down a bit lower re-test it hit lower then finally broke out previous resistance become support.

Then you continue up higher, pull back head up, higher, pull back and then breaks out of this resistance comes back previous resistance now becomes support. It heats up. Higher pullback heats up higher to kind of where it is right now. Another example: euro against the australian dollar.

So for this one, you can see that this market is in a downtrend series of lower lows and lower high lower high lower high lower high. So, okay, we're not talking about market structure now now we want to pay attention to the support and resistance. So if you look at this one over here, you can see over here. This previously is support.

Okay price broke below support and re-test previous support become resistant. So it's a bit far away from this area of support, but you want to bear this in mind. It's not an exact level or line on the chart. It's an area.

Okay, so this you know had a bounce over here uh a rejection at this previous support, which became resistance, then price hits down lower retests previous support, which became resistance. He's down lower comes back up, pulls back and heads back into this area of resistance to where it is right now, so you can see you know, support and resistance here in action and finally another one is a pound canadian. You can see that you see that this market is pretty much just stuck within this range between these highs, which is resistance, and this lows, which is support - and one thing to add, is that you can also you know. If you want, you, can, you know, use a tool like the rectangle tool to draw or identify your area better like this.

Personally, i like to draw it as lines, even though i treat it as an area, but for those of you who prefer to draw it as a box. This is something that you can do as well. Okay, so discuss kind of, like personal preference, just a tip to share with you. So now, let's talk about how right to draw support and resistance.

Shall we, you might be wondering hey rayner? How do you draw these areas? Man? So that's what we'll cover right now. So a few things to share number one: if the market is trending, you only want to draw the two most recent swing points. So let me explain so: let's say if the market is in an uptrend right, hit, higher pull back hit, higher, pull back hit, higher, pull back and hit higher. So at this point you have, you know a number of swing low.

You have one two one here. Two here and three, but my suggestion is to draw draw the two most recent swing low at support, meaning you just draw a support like this and then another one over here. Why do you not want to consider this one here? And it's very simple, because when the market is trending higher right, yes, it could make a pullback and where could he pull back into i'm guessing probably into one of these areas over here this or this, the market can pull back into this swing low. This lower one, but if it does right, then you would realize that this market is no longer in an uptrend, because if the price could come back all the way down here into this level here you can see that you can imagine that this uptrend is no Longer in text, maybe even in a downtrend, if, if the market is in the downtrend, then what the heck am i doing trying to buy at this level.

So this is why i only pay attention to the two most recent swing lows and don't worry i'll share with you a few chart examples later on, but that is how i would draw my support and resistance in the trending market. So likewise, if the market is, let's say, you know, heading down lower and you have numerous swing highs to reference. I would just you know, draw my resistance, possibly at this one here and at this one here and of course right. If this is a previous support, which could become resistance, i would also you know, highlight it on the chart, but in terms of swing points right, the swing highs.

This will be the two most recent swing highs that i would pay attention to. On the other hand, if you have a range market, then it's pretty simple, just draw the highs and lows of the range and adjust it right to get the most number of touches right. So i'll explain that shortly. So, let's have a look at a few charting examples, so this is euro against the japanese yen.

This is the daily timeframe, just reset okay, so you can see over here. Where should i or where should we draw our area of support now? The way i will do this is here, i would take this level here and draw one here. This is the most recent swing low and another one over here, and that's it right. This will be the two area of support i will pay attention to, but also bear in mind that this over here could be previous resistance, which becomes support.

Remember once price breaks above resistance, it could become support, so this is actually another level. That's worth right. Paying attention to - and i will draw it on the chart. So if you ask me right for this uptrend, this will be my area of support on this chart.

Why don't i draw let's say over here over here very simple: if the price can come back all the way down into this lows over here, this could be in the downtrend already. So, instead of you know wanting to buy at this support, i would rather be looking for selling opportunities at this previous area. You know where previous uh support could become resistance, so i'm gon na shift right. My dynamics right i'm no longer looking for buying opportunities, because if the market is in a downtrend, we should be looking for selling opportunities.

So this is why i just pay attention to the most recent swing points in the market. Another one dollar against the south african rate so same thing. What is the market structure if you look at this? This market is in a downtrend, so pay attention to the two most recent swing points. It will be this one here and possibly this one over here.

Okay, so this will be the two areas on the chart that i will pay attention to. This is where previous support could become resistance, and this clearly is an area of resistance, so i tested once two times three times and four times over here, so the previous example. I had three levels, this one. I have two so there's some kind of discretion over here.

It's not like an exact science where you can only have two know if the chart right makes sense if it permits right, i can have you know three potential support resistance areas on the chart. Okay and one last final example: okay, so this one dollar usd against singapore dollar. So if you look at this, you would see that is this in a downtrend, or is this in a range? So if you zoom out your charts right, you can see that this is a long term noise, it's in a downtrend, but if you zoom in a little bit like this right, you would say that huh. This is not exactly like a downtrend.

This seems like a little bit more of a range and, i would say, you're not wrong, so the way i would do this is again. I would draw right the key areas on the chart. So as of right now, which is the nearest swing, points right relative to the price right now, so if you see the price right now it's over here, the nearest major swing points on the chart is here between these highs and this lows over here. Okay, so you can see, this is how i would draw my support and resistance for this particular chart over here.

This is the highs, and this is the lows. So one thing to point out is that recall earlier: i said that i would adjust it to get as many touches as possible. So if you look at this, i can actually draw my resistance smack right. Okay, i'll see, i could draw it no this.

This is actually okay. So let's talk about this one, this lows right: i could actually draw it - maybe at this extreme point - okay at this extreme low over here, but why don't i want to do that because i mentioned earlier. I want to get the most number of touches, so if you just look back in here, if i draw this extreme point, i will neglect this low over here, and i don't want that. So let me shift it up slightly higher, so i can also take into consideration this low okay.

So i have one touch. Two touch make sense so same for here right if i were to draw it this level, i have one touch two touch and three touch compared to let's say i were to only you know, shift it up higher. The reason why i said this is fine, because if you look back here, you get a number of touches here and here as well, but for me personally, i want to take into account the most recent touches i want to get the most recent touches together. So i'm going to adjust this slightly lower and take into consideration this as well.

This one here, one touch two and three okay. So let's have a look at another example pound against the aussie. So again this one here, the way you draw your support and resistance. You can draw at this extreme high, but if you were to do that, then you would, you know, neglect quite a bit of levels.

You actually know this one, this one here you know, and so what i'll do instead is that i would prefer to adjust this slightly lower to get the most number of touch. So when i do that, i now have this over here. One touch two, three, four and five great so same for this one and the lows over here drawing this area of support. I don't want to draw it at the extreme level.

I want to adjust it, so i can get the most number of touches so i'll adjust this slightly up higher and now i have one touch two and three - and this is my area of support. Okay - and this, of course, is my area of resistance and that's how you go about drawing your support and resistance on your chart and, of course, all right. This needs practice. It's not like, you know, watch a five minute, video and you become a pro.

No, you got ta practice it and you know watch how the market reacts to your level in real time and from then on. You will get better at drawing support and resistance and, of course, right. This is only one way to draw support and resistance in the next section i'll share with you how you can use moving average right to do this uh to identify your area of value as well, okay, so moving average again. So how can you use moving average to define an area of value, so here's how so in trending markets, for example, in an uptrend, a moving average can act as an area of value.

It will look something like this. So, let's say market is in an uptrend. Higher makes a pullback another high pullback another high pullback another high. When you menu overlay with a moving average, let's say the 50 period moving average.

You would realize that the price right has bounced off the moving average. A number of times you know once twice three times and if you come back for a fourth time, okay, we can say that you know hey. This is an area of value, and this is where buying pressure could step in and push the price up higher so which moving average do we use. We have you know one to one thousand for me personally, i like to use the 50 period moving average because for 50 period moving average the trend usually tends to be a healthy trend where you can see the app and flow of the trends very clearly here You can see the pullback, it's not very shallow.

It's not very deep to me. It's just just nice right, the sweet spot. Of course you don't have to use the 50 period moving average. Some people prefer shallower pullback than they use the 20 period moving average.

Some people prefer, you know, a deeper pull rat. They use the 100 period moving average. So there are, you know, different types of moving average. You can use ultimately right.

You have to find right the type of trends that you want to trade and you might be wondering but rain. How do i know whether you know the moving average holds up? You know. Sometimes i look at different charts. You know the price just slice and dice through the moving average right doesn't respect it.

I get it so. This is why, before we use moving average as an area of value, we want to make sure that the price you know respects the moving average and we use this two tests right to confirm it. So let me explain so: let's say market is in an uptrend. It makes a pullback goes up, makes a pullback and it goes up and you overlay with a moving average.

It has to be tested at least twice. So this is one test, and this is the second test. So this way, if the market comes back for a third time all right, i know that hey, you know this market seems to be respecting this moving average. I have more confidence right to use the moving average to define my area of value having you know proven itself two times previously, so this is what i mean by you know at least two tests to confirm it.

So let me walk you through some charts, so you know what i mean so you can see over here. This is brand crude oil. Over here we have one test price tester moving average. Once then, it breaks above this swing high tested a second time breaks out.

Above this swing high and then tested here a third time, okay, so we have three tests over here. So this means, if in future, maybe for a fourth time, the price comes back to this 50 period. Moving average, i can say hey, you know. This is an area of value for this particular market, and on this timeframe i can look for buying opportunities at this 50 period, moving average, since it's acting as in it's an area of value, okay and then in this case, right yep, it did came back and You know tested uh, i would say a fourth time over here.

So now some of you might be thinking rain. Why isn't this a fourth test and that's a good question and the reason is because for me to define a test, the price must break. Above you know the swing high or the swing low, so in this case this was already already the third test, but the price when he tested here it did not break out this swing high over here. So i don't consider this a fourth test.

The price has to break out of this swing high. Only then when he breaks out of it and re-test, would i consider it a test? Okay, so that's the way i define my test dollar against the japanese yen same thing. If you look at this price tested once bounce up test, it twice, heads up higher came back a third time. We have three tests over here so again on this market and on this time frame dollar against the japanese cn eight hour time frame.

I would say that hey the 50 period moving average right is acting as an area of value. I can look for buying opportunities if the market pulls back towards the 50 period. Moving moving average seems you know it's respecting it. In this case, i tested a fourth time and then just collapse and break down aussie against the japanese yen.

So let's have a look at this and see if there's any uh test so over here we have one test: price breaks out of the swing high. Second, test price breaks out of this swing. High came back. A third test then start to chop chop chop chop.

It hits higher, but eventually i think you saw what happened right. You, oh yeah, it hits higher. So that's how you kind of define the test and uh use it to serve as an area of value and just one. Last final example: example: you can see over here the dollar against the chinese union.

You don't have to use the 50 period moving average. For this one over here, you can see that the 20 period moving average can serve as an area of value as well. So you can see one test. It's down lower second test hit down lower third test hit down lower there's another fourth one over here, and you know fifth and so on.

So one thing to point out is that when you see this chart that is uh respecting the 20 period moving average. If you look at the depth of the pullback, this one is much shallower compared to the 50 period moving average. If you look at the depth of the pullback, it's usually quite shallow, quite shallow, compared to the 50 period moving average one, like only let's say the dollar yen eight hour. You can see that the depth of the pullback is much uh deeper right.

This one. You can see much deeper, deeper and much deeper, so this right gives you more time right. If the depth of the pullback is, i would say longer in this case of the 50 period moving average, you have more time to plan your entry right compared to a 20 period, moving average, where you know you need to scramble and act fast. So this is why i prefer, using the 50 period moving average to define right, uh the area of value in trending markets.

Okay, let's do a quick recap to what you've just learned number one area of value helps you to decide where to buy or sell. You know exactly where, on a chart right, you can look for buying opportunities where, on the chart, exactly you can look for selling opportunities and to accomplish that, i share with you a couple of tools and techniques. You can use supporting resistance or moving average right to help. You identify your area of value and in fact, you can actually use both support and resistance and moving average to define your area of value.

Okay, i'll cover more later on. So that's what if you know, we've just covered so at this point right, you know, market structure right tells you. You know what to do, whether to be looking for buying opportunities, selling opportunities or to stay out of the markets. Then we have talked about area of value where to buy where to sell.

Now. The next question is: when exactly do you buy or sell? When is the right time to click the buy button when right? That's where we will, you know, talk more about it in the next section, which is called entry trigger, hey, hey, what's up my friends, so, let's you know carry on where we move on, but before we get started. I want to do a super quick recap to the topics that you have just learned. So first thing, first number one remember market structure.

What is it well in essence, right market structure tells you what to do. If the market is in an uptrend, you will look for buying opportunities. If the market is in a downtrend, you will look for selling opportunities. So so that's what we covered market structure, the first thing, so, let's say market is in an uptrend.

A series of higher highs and higher lows, then this brings us to the second section that we have covered. We talk about area of value and the reason why this is important is because, just because a market is in an uptrend doesn't mean you want to blindly hit the buy button, because the market could be getting ready to make a pullback or reversal. So this is where i introduce to you right the concept of area of value, to identify areas on your chart where buying pressure could step in to push the price higher. So, in other words, these are areas on your chart where you want to look for buying opportunities.

So in this case let's say it's an uptrend, this could be an area of value right where previous resistance could become support. So this is an area of value. This is where you want to look for buying opportunities to hop on board the trend, and now this brings us to our third section entry trigger. So once you have your market structure, once you have your area of value.

The next question is: when do you enter a trade, so this is what entry trigger is all about. It tells you, when exactly to enter a trade when exactly to buy or sell, so to do that right. Entry trigger we'll we'll learn some simple price patterns, right that you can utilize right. That tells you when to enter a trade right after your earlier market conditions are met right, namely the market structure and the area of failure.

So let's you know study this more. In that, so how do you define an entry trigger? So there are numerous ways, but i'm going to share with you two technique. Number one is what i call candlestick patterns. I didn't call it right, you know it's the people, the traders before me right.

They came up with this uh this concept and then we have the moving average break. So, let's you know, study these two techniques right that you can use to define as your entry trigger. So let me first and foremost explain what candlestick pattern is all about. So candlestick patterns is uh, something that you might be familiar with, because most charting platforms offer this uh, this type of candlestick charts.

So it has four data points: the opening price, the highest price point of the day of the candle, the lowest price point and the closing price. So i'll explain this in more details shortly. So i want you to know is that candlestick patterns can be utilized across different time frames. You can use it on the daily, the forward hourly the weekly time frame and, depending on the time frame that you're using how you can interpret it is that on the one hour time frame right, one candle will be formed every one hour if you're on the Four hour time frame, then one candle will be formed every four hours and likewise, if you're on a daily time frame, one candle will be formed every single day.

You get my point so now. This brings me to this section right. How do you read candlestick patterns? Okay, so remember, there are four data points, i'm going to explain to you step by step. So when you deal with candlestick patterns right, you will likely see one of two type of candles: either a green candle or red candle sometimes could be a black candle or a white candle.

It really, you know, depends on how you set your chart settings for, but for most charts right, you see the green or red so for green candle. It simply means that the price has closed above the opening opening price. Okay. So, in this case, right you can see the green candle this over here will be the opening price this over here will be the closing price.

What about this? Two black line over here and here very simple right - the one at the top is the highest price of the candle, and this over here is the lowest price of the candle. Now you might be wondering hey right now. What do you mean by off the candle? So this depends on the time frame that you're using candlestick pattern. So, let's say, for example, you are on the daily timeframe: let's pull it daily, okay.

So how do you interpret this on the daily time frame? Very simple? This means this is the highest price point for the day. This over here is the lowest price point for the day, and this o here is the opening price of the day, and this is the closing price of the day. So this only holds true. If you are, you know, looking at this candlestick pattern on the daily time frame.

If you change this to the weekly time frame, then this is the highest price point of the week. This is the low of the weight, it's the open of the weight, and this is the closing price of the weight. You get my point. Okay.

Now, let's have a look at the other inverse the inverse of the green pattern, which is actually. This is what we call a bearish pattern. This is where the candle has closed below the opening price. Okay, so for this one over here, the opening price will be on top open.

This is the closing. There's again is the high, and this is the low. So the way to interpret this bearish candle is the same. The only difference between a bearish and a bullish candle is their opening and closing price for bullish.

The open is below, and the close is on top right, because the the bar right has closed above the opening price. This is bullish right. This is like you know, like a sign of strength where the buyers are in control. They have pushed the price and close above their opening price, whereas this one is a bearish candle where the sellers are in control, where they actually know close right be below right, where the opening price is so.

This is what we call a bearish candle, so this is actually how you read a candlestick pattern and, to sum up what i just said, this diagram will be useful, so you can see over here. This is like a quick summary to what we've just covered. This is the opening price closing price, because this is a bullish candle. This is the high.

This is the low. Likewise, on the opposite end of the spectrum, this is a bearish candle. The opening price is here. Closing price is here, because this is a bearish candle.

This tells you that the bar has closed below the opening price. So that's why the close is below the opening price open is here closes here. This is the low of the candle, and this is the high of the candle. Actually, the low of the candle is actually here.

Okay, so another terminology to explain is sometimes you might be. You might have heard of things like body wick, so the body refers to the colored segment of the candlestick pattern, so you can see that this colored area from here all the way down to here. This is what we call the the body of the candle, and you see the two black lines sticking out. We call this the wick or upper shadow.

Since this one is uh the top of the wig, we call it upper shadow or upper wick, the one at the bottom. We call this a lower shadow or lower wick, and that's pretty much. You know how you read a candlestick pattern so now, moving on, i want to share with you uh some really useful candlestick patterns right to help you time your entry, so you know when exactly to buy or sell. So, let's move on.

So if you look at this one over here, let's first talk about the bullish reversal, candlestick patterns right it looks something like uh. There are a few variations to it. I'll explain to you two that i find useful right in your trading journey. First, one is what we call a hammer, so let me explain to you the story right behind the hammer, so the hammer again is a bullish candle.

So you know the opening price is here. Where is the low of the candle it's here? Where is the closing price? It's here? Where is the high of the candle? It's here? Okay, so let's say this is, like you know, a daily time frame candle.