Hi, my name is raynor pleased to meet you all right. Stop stop messing around so in this section right, you will learn number one. What is technical analysis? What is market structure? What is an area of value? What is an entry trigger and, more importantly, how do you use technical analysis in your trading? So let's get started so first thing: first, what is technical analysis, so i define technical analysis as using past data to help you make your trading decisions and this past data could be things like volume, indicators, chart patterns, candlestick patterns, etc and, of course, right. Technical analysis is not the only way to trade, the markets, because you also have things like fundamental analysis sentiment analysis, but me primarily, i'm a technical trader.

So this is why, in this video, i would focus more on technical analysis, and i want to share with you the three things right that you should focus on right when you kick-start this trading career of yours, so technical analysis. All right, i would say there are three components which is very important to master. The first component here is what i call market structure. So here's the thing right when you look at the price chart.

The the first thing that comes to your mind should be no hmm. Should i be buying, should i be selling, or should i stay out of the markets? That's really the first thing that should come to your mind. You shouldn't, you know, look at the chat and say: oh, let me buy now. Oh, let me sell now.

No, you should first ask yourself. Is this the type of price section? Is this chart telling me that i should be looking for buying opportunities or selling opportunities, or maybe i should stay out completely of this market? This is the first question right that you must answer and everything else right is secondary. So the way to do that right is market structure. Helps you to answer this question.

It tells you what to do so. Market structure helps you to define the current market condition, so you know whether to be buying selling or staying out of the market. So, let's dive a little bit deeper into market structure, so market structure there are different types of market structure, but for this video i will share with you three broad categories of market structure: number one being an uptrend. If you know a stock or sorry, a market is in an uptrend, not necessarily stock can be currency, pairs, etc.

You want to look for buying opportunities, so let me explain to you what an uptrend is. So in the grand scheme of things grand scheme of things, an uptrend forms a series of higher highs and higher lows, so it looks something like this market goes up, but, as you know, market doesn't go up in one straight line. He goes up. He needs to take a breather, he needs to pause and then he makes a pull back then, once the pullback ends, you'll continue up higher breaking above this previous swing height this previous high.

If you want to call it and goes up again, it doesn't go up in one straight line. You need to take a breather pause once it pause once it rests finished and then it continues up higher breaking out above the previous swing high again and then the pattern rains repeat itself. So when you look at this, you will notice that an uptrend consists of a series of higher highs and higher low look at this high another higher high, a cluster disk as one and another higher high. If you look at the lows, it's a higher low, higher low higher low okay had to do that.

So this is what i mean by an uptrend, a series of higher highs and higher lows, and if you see a market has this market structure this currency pair has this market structure. Then what you want to do? Well, you want to look for buying opportunities because the market is in an uptrend. The path of lease resistance is higher, so this is why you want to be looking for buying opportunities. So if you see a chart that looks like this tell yourself promise me, you will only look for buying opportunities right.

You don't want to look for selling opportunities, not they can be done. They are traders who specialize in counter trend trading, but for you the beginner is much easier to be trading along the path of lease resistance trading in the direction of the trend, then against it. Okay, so uptrend look for buying opportunities. Next, one downtrend: this is just a reverse.

You want to look for selling opportunities, so downtrend right in essence, is a series of lower highs and lower low, so market hits down lower, makes a pullback heads down lower again breaking below the previous low makes a pull back heads down lower breaking the previous low. Sometimes it could consolidate and then break down lower once again breaking below the previous swing low. So, if you look at it, you will notice a series of lower high, lower high, lower high and lower low lower low lower low. So if you see a market is in a downtrend, then what you be doing, buying or selling well, the path of least resistance is towards the downside.

So promise me: when you see a chart, that's in a downtrend, you only think of selling opportunities. Okay, that's the path of least resistance, and finally, you have what we call a range market and in this market condition you can know be both a buyer or seller. So a range market looks something like this price is content between the highs and the lows. So when a market is in a range right, you can look for both buying and selling opportunity, and one thing to point out is again: how do you know a market is in range? Is where you see the the highs of the range right? The price just keep testing it right, but unable to break out higher compared to our uptrend.

The price is able to break above the previous swing high. It's able to break above the highs, but in the range it's just you know getting rejected at the highs consistently over here same for the the lows of the range it just cannot break down lower. It's just you know, contain uh above the lows of the range. So you can think like the price right, it's being trapped like in a in a big giant box, just can't get out of it.

So with that said, let's have a look at a few chart examples. So you know how this looks like, because one thing to to know is the theory is one thing, but when you look at the live charts the market, it can look completely different out of whack like one is in in uh. One is in heaven and one is on earth, so it's going to be quite different, so i want to walk through with you right when you look at the chart. So if you look at this chart new zealand against the swiss franc, this is the daily timeframe.

As you can see over here on the daily chart, what market structure is this? Well, if you notice this, this market in the grand scheme of things, is forming a series of higher highs and higher lows. Higher high higher high higher high higher high higher high and higher low higher low higher low high low high yeah low there's another minor one. Over here, okay, so yeah, so you can see that in the grand scheme of things in a big picture, if you look from left left to right, this market is heading higher, it's in a uptrend and if a currency pair, if a market is in an uptrend. What should you be doing looking for buying opportunities or selling opportunities? I'm sure you got the answer.

Okay, so let's have a look at another one dollar against canadian okay. So if you look at this again, this pair just identify the highs and lows on the chart. This is the highs, the highest, the highest highs, high, the highs, the highs and the low the low low low, low, low and low. So you look from left to right.

Where is this currency pair heading over time? It's heading down lower, so in other words, you can say that the us dollar is depreciating against the canadian dollar over. You know over the last there's a number of months over here that you see at the bottom okay, so this is in the downtrend, and one thing to also share is that when you look at a chart right, there are many swing points. What i call a swing point is the heights and lows on the chart that kind of stick out like a sore thumb, which is very obvious. Like you know, this is a swing high.

This is a swing high. I wouldn't consider this a swing high, because this isn't as obvious this isn't as in your face kind of thing. So when you want to identify the series of higher highs and higher lows on the chart, pay attention to the swing points the ones that really stick out like a sore thumb right, the minor ones. You can just pretty much ignore it, because if you try to pay attention to every single minor highs and lows on the chart, you will get confused right and lose the big picture.

So, for example, let's say you look at this over here, you might look at this. Oh it rainer. The price you know broke out of the the uh this high man. You know this looks like an uptrend, so i know it sounds silly, but you know sometimes when you get too fixated on trading in the now, you might actually think along those lines.

So just remember pay attention to the major swing points. If you're unsure and look from left to right left to right, don't just look at the last five six candle looks look from look at the big picture perspective bird eyes view that is important, okay, so dollar against the canadian. We can both agree that this is in the downtrend moving on british pound against canadian dollar. In this case, i go to the weekly timeframe - okay - and you can see over here.

What is this market condition and oh yeah before i continue dollar against the canadian daily time frame? Okay, in this current market structure, what do you want to be doing, buying or selling? I'm sure you want to look for selling opportunities, that's the path of lease resistance! Next, one pound against canadian. So if you look at this one again, what is this market structure? Well, you can see that this one's a little bit different. It's a bit different from the earlier ones. This market seems to be contained between this highs and this lows we'll talk more about this exact highs and lows: what is the terminology and how you can use them in your trading later on, but for now just pay attention that this market is kind of contained In in a box stuck between the highs and the lows - and this is what we call a range market and in a range market, you can look to buy low and sell high, buy near this low or sell near this high.

But personally for me, i like to trade trends, okay, but i still want to share with you what the range market looks like because hey some of you might go on to be. You know pro range traders in future, but for me personally, i simply like to trade trends buy in uptrend and sell in downtrend. So but nonetheless, this is what we call a range market. You can look to buy near the lows and sell near the highs, and one couple more examples: you can see it's on british pound against the us dollar.

What is this market structure so again? If you look at this, this overall seems to be in an uptrend right series of higher highs, higher highs, higher highs and higher lows, higher low higher low higher low higher low and possibly this higher low. So you can see that you know this right. If you are again too fixated in the now, you might think that, ah rainer this looks like you know, a downtrend may look rainer. This market has made a lower high and a lower low.

This market is in the downtrend. Yes, i get it right. If you look at just those few candles right, you uh, you can think that it's a downtrend, but you let's take a step back and look from left to right again. You want to make sure that you are taking a bird eyes view and not just looking at an individual tree and missing the forest.

This is a mistake that i want you to make. So if you look from left to right, you can see that this market overall is in an uptrend okay, so this will be a swing, the mixer, or rather the swing low. That is pretty much still intact. If the market right can break below this low and this low over here, then hey, then maybe you know you can see that this uptrend is getting weak right.

Maybe the trend is starting to reverse. But again i don't know take things too far out of hand, because there is where we go into more advanced technical analysis. But for now, looking at the big picture, i would say the pound against the us dollar. Looking from left to right, this market is in an uptrend and i'm looking for buying opportunities, and don't worry you know about you - know hey where to buy, how much to buy when to buy we'll cover all that stuff later on now, just focus on this market Structure and once one last final example is euro against the us dollar.

So if you look at this this market, is it in an uptrend or is it in a range? So you can see that you know this chart. I purposely picked this one up because when you deal with technical analysis there is subjectivity involved and if you say this is an up trend, some traders are going to say this in the range i wouldn't say anyone is right or wrong because it's kind of like In between the it's kind of like in between okay, so personally i'll say that this market is more towards the range right given this uh price chart that i'm looking at right now. This will be the lows of the range, and this is the high, even though this high is just tested one time, some might argue no arena. This is an up trend, no higher high higher low fine.

That's your point of view. So this is why, as a discretionary trader as a technical trader, there is always you know. Someone with an opposing view of your so and one thing to also point out is that if a chart doesn't speak up to you, if the chart right makes, you feel confused and frustrated, and you do not know what to do remember. You always have the option to stay out of the markets move on on to something else.

No one is pointing a gun at your head. Is he ready to put on a damn trick? Man? No, no one is doing that. So if it's not clear, if it's conflicting information move on onto another currency pair, does it make sense, you.