Technical Analysis is Hard (until you see this)
Summary
TLDRThis script offers an in-depth beginner's guide to technical analysis for trading stocks and cryptocurrencies. It covers essential terminology, the importance of choosing legitimate exchanges, and how to use tools like candlestick charts, trend lines, support and resistance lines, and various patterns to make informed trading decisions. The guide also discusses RSI, moving averages, and the significance of trading volume and market cap, emphasizing the importance of a disciplined approach to taking profits and managing risk.
Takeaways
- 📈 The importance of technical analysis in making informed trading decisions is emphasized, with the creator offering a beginner's guide to this field.
- 📚 Essential terminology for understanding and applying technical analysis is introduced to aid in the learning process.
- 💻 The necessity of choosing a reliable exchange for trading is highlighted, with a personal recommendation for Webull due to its user-friendly interface and incentives.
- 🧙♂️ Technical analysis is positioned as a supplementary tool for investors, not a fortune-telling device, and its limitations are acknowledged.
- 🏨 An analogy is used to explain technical analysis, comparing it to using an aggregator website to research hotels, simplifying complex data into a digestible format.
- 📊 Candlestick charts are introduced as a method to interpret price changes, with color coding to represent gains or losses and wicks indicating volatility.
- 📉 The significance of trend lines in identifying the general direction of price movement over time is discussed, with examples of how they can inform trading strategy.
- 🔢 Support and resistance lines are explained as horizontal indicators on price charts that denote investor behavior and potential turning points in price trends.
- 💼 Trading formations, such as wedges and flags, are identified as patterns that can suggest future price direction and potential entry or exit points for trades.
- 📊 The Relative Strength Index (RSI) is introduced as an oscillator to determine overbought or oversold conditions, aiding in the timing of buy or sell decisions.
- 🌟 Moving averages are presented as a means to smooth out price data and identify longer-term trends, with the choice of averaging period impacting sensitivity to market fluctuations.
Q & A
What is the main purpose of the video script?
-The main purpose of the video script is to provide a beginner's guide to technical analysis, focusing on important terminology, tools, and strategies for trading stocks and cryptocurrencies.
Why is it important to choose the right exchange for trading cryptos?
-It is important to choose the right exchange to avoid scams and high fees, which can significantly impact the profitability of trading activities.
What is the significance of candlestick charts in technical analysis?
-Candlestick charts are significant in technical analysis as they provide a visual representation of price movements, including the opening, closing, high, and low prices for a given time period, which can indicate market sentiment and potential trading opportunities.
What does the color of a candle in a candlestick chart represent?
-In a candlestick chart, a red candle indicates that the asset closed at a loss for the period, while a green candle indicates that the price went up.
Why are the 'wicks' on a candlestick important in technical analysis?
-The 'wicks' or shadows on a candlestick are important because they show the highest and lowest prices for the period, which can indicate volatility and potential support or resistance levels.
What is a trend line and how is it used in technical analysis?
-A trend line is a line drawn on a price chart to represent the general direction of price movement over a period. It is used to identify potential support and resistance levels and to project future price movements based on historical trends.
What are support and resistance lines, and how do they help in technical analysis?
-Support and resistance lines are horizontal lines on a price chart that indicate the price levels at which an asset's price is likely to find buying or selling pressure, respectively. They help traders identify potential entry and exit points for trades.
What is the significance of formations in technical analysis?
-Formations are patterns in price movements that can help traders predict the direction of future price movements and potential price targets, providing insights into potential trading opportunities.
What is the Relative Strength Index (RSI) and how is it used in technical analysis?
-The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. It is used to identify overbought or oversold conditions in the market, which can signal potential trend reversals or continuations.
What is a moving average and how does it help in technical analysis?
-A moving average is an average of prices over a specified period, which smooths out price data to show longer-term trends. It helps traders identify the overall trend direction and potential entry or exit points for trades.
Why is it important to consider trading volume when analyzing trends?
-Trading volume is important because it indicates the strength of a trend. Higher trading volume suggests that a trend is more likely to be sustained, while lower volume may indicate a weaker trend that could reverse.
What is a trailing stop loss and how does it benefit traders?
-A trailing stop loss is a tool that automatically adjusts the stop loss level as the market moves in a favorable direction, locking in profits and allowing for potential further gains without manual intervention.
How can the Market Cap be used in technical analysis?
-Market Cap, calculated by multiplying the current price of a stock or crypto with its total supply, can indicate the stability and potential impact of large volume trades on the price. Larger market cap assets tend to be more stable and less influenced by individual trades.
Outlines
📈 Introduction to Technical Analysis for Beginners
The speaker introduces the importance of technical analysis in trading, emphasizing the need for a beginner's guide to navigate the complex world of trading platforms and terminology. They mention the goal of creating the best beginner's guide to technical analysis available online, starting with essential terms and concepts. The speaker also highlights the importance of choosing a reliable exchange and briefly mentions Webull as a preferred platform due to its user-friendly interface and incentives for new users. The guide aims to demystify technical analysis and equip viewers with the tools to make informed trading decisions.
🔍 Understanding Candlestick Charts and Market Volatility
This paragraph delves into the intricacies of candlestick charts, a fundamental tool in technical analysis for visualizing price movements. The speaker explains the significance of candle colors, with red indicating a closing loss and green signifying a price increase. They also discuss the importance of 'wicks' or shadows, which represent the highest and lowest prices within a given time frame, and how these can signal market volatility and potential trend reversals. The speaker uses humor to underscore the importance of not overlooking these details, and they provide insights into how to interpret various candlestick patterns to make informed trading decisions.
📊 Utilizing Trend Lines and Support/Resistance for Trading Strategies
The speaker introduces trend lines as a method for identifying the general direction of price movement, which can be manually drawn or generated by AI on trading platforms. They explain how trend lines can provide a broader perspective on market trends over different time frames. The paragraph then transitions to discussing support and resistance lines, which are horizontal lines indicating price levels where buying or selling pressure is expected to be strongest. The speaker provides examples of how these lines can be used to anticipate market movements and the importance of recognizing when these levels may change, leading to potential trading opportunities.
🚀 Recognizing Chart Formations and Trading Patterns
This section focuses on chart formations, which are patterns in price movement that can indicate future price direction and potential stop levels. The speaker warns against the common mistake of entering a trade at the moment of a breakout, instead advocating for patience and waiting for a 'confirmation bounce.' They provide examples of various patterns such as wedge, pennant, flag, cup and handle, and head and shoulders formations, explaining their significance in technical analysis. The speaker also cautions that while formations can be insightful, they are not infallible and should be part of a broader analysis strategy.
⚖️ Analyzing Trading Volume, Market Cap, and RSI for Market Insights
The speaker discusses the importance of trading volume as an indicator of trend strength, explaining that higher volume suggests greater market confidence in a particular direction. They also introduce the concept of market capitalization and its impact on price stability, particularly in large-cap assets. The paragraph then introduces the Relative Strength Index (RSI), an oscillator that measures the speed and change of price movements to indicate overbought or oversold conditions. The speaker provides a basic understanding of how to interpret RSI readings and their potential implications for trading decisions.
📉 Moving Averages and Profit-taking Strategies
In this paragraph, the speaker explains the concept of moving averages as a tool for smoothing out price data to identify longer-term trends. They discuss different time frames for calculating moving averages and how these can be used to signal potential buy or sell opportunities. The speaker also emphasizes the importance of knowing when to take profits, suggesting that it is always correct to do so, no matter how small, and to rely on a trading plan rather than emotions. They conclude by encouraging viewers to revisit the material and consider further educational resources for a deeper understanding of technical analysis.
🎯 Using Formations and EMAs for Price Target Identification
The final paragraph provides a practical example of using a double bottom or 'W-formation' to identify entry points and price targets for trades. The speaker describes the process of measuring the formation and using the 'neckline' as a reference point for setting targets. They also introduce the Exponential Moving Average (EMA) as an additional indicator for anticipating short-term support or resistance levels. The speaker wraps up by summarizing the tools covered in the guide and encouraging viewers to engage with additional resources and consider joining a Patreon community for more in-depth content and trade signals.
Mindmap
Keywords
💡Technical Analysis
💡Exchanges
💡Candlestick Chart
💡Trend Lines
💡Support and Resistance
💡Patterns
💡Leverage
💡Trailing Stop Loss
💡Relative Strength Index (RSI)
💡Moving Average
💡Profit Taking
Highlights
Introduction to the importance of understanding technical analysis for making informed investment decisions.
The necessity of learning specific terminology for entering and exiting trading positions.
The importance of choosing a reliable and cost-effective exchange for trading cryptocurrencies.
A comparison of manual data collection to using aggregator websites for investment analysis.
The role of technical analysis as a supplementary tool for investors.
Explanation of candlestick charts as a method for analyzing price changes and market volatility.
The significance of candle colors and wicks in interpreting market trends and potential buying or selling opportunities.
The limitations of technical analysis in predicting global events and the importance of investor sentiment.
Introduction to trend lines for identifying general price movement direction over time.
The concept of support and resistance lines in determining entry and exit points for trades.
The use of formations in price movement to predict potential market direction and price levels.
The potential pitfalls of entering trades at the moment of a breakout without waiting for confirmation.
Different types of chart patterns such as wedge, pennant, flag, cup and handle, and head and shoulders formations.
The importance of evaluating trading volume and market cap for assessing the strength of a trend.
Introduction to the Relative Strength Index (RSI) as an oscillator for determining overbought or oversold conditions.
Explanation of moving averages and their use in forecasting price changes and identifying trends.
The value of taking profits at any point and the importance of sticking to a trading plan over emotions.
Using formations and indicators like EMAs to determine price targets and exit points for trades.
Recommendation to revisit the material after a month for reinforcement and additional resources for further learning.
Transcripts
can mean the difference between buying here
and buying here.
And that's why I've decided to create the
best darn beginner's guide to Technical analysis
on the Internet.
Starting with some very important terminology
either to enter or exit positions.
Don't worry if you're feeling lost already,
we will break everything down even more.
These terms will help you with the learning process
for the remainder of this video.
Now let's go ahead and get you set up.
The first thing you need to is
It's important to take your time on this
because there's a lot of scam exchanges
and exchanges that simply charge way too much in fees.
For trading cryptos, I'm personally a
I'm a big fan of Webull as they have a really easy-to-use interface
and some free stocks for signing up.
I will have all the options linked in the description of this video.
After you've created your account,
- I don't understand why would you buy a policy?
- It's just the cost of a cup of coffee an hour.
- I've seen people make millions trading, but I've
also seen people lose everything.
Technical analysis is just an additional tool in your
tool belt that you can use to become
a more well rounded investor.
a fortune teller, and
So what are we doing when we talk about our
own technical analysis?
Picture this, you're planning a vacation to Italy
with your family, but you need to get a hotel.
Before you go, you could manually call some hotels
in Milan and ask about their services,
their schedule, and how close they are to a Wine and Cheese shop.
It takes you about two weeks to complete this exercise,
and at that point you have about ten hotels on a spreadsheet
with all this data that you've collected.
You have great information, but most won't go through all of this effort.
Instead, you probably would look at an
aggregator website that allows you to compare customer feedback,
average booking prices and, of course,
the distance to your local cheese shop
for the most popular hotels.
This allows you to get a pretty good idea
of what you're getting yourself into
without ever having to crack open the
operations manual of ten different hotels.
Well, it's important that we have a
You have to ensure it's not a scam anyways.
Past a certain point, we need to learn about
how investors are trading that asset,
What's the price action, and what can it tell us?
Can this help us invest?
This will help us determine
Technical analysis measures price movements, uses indicators,
and offers suggestions as to potential opportunities
to buy or sell cryptos and stocks.
This usually is more useful for
who want to ensure that they find the best possible entry prices
for the assets that they're looking to invest in.
Now, to keep things simple, this is a beginner's guide.
Now, I've selected a few of the most accessible ways
that you can start doing your own technical analysis
and learn to create a more proactive strategy
for crypto and stock trading.
And before we dive deep, I also need to let you know about my
Patreon linked in the description.
There you'll find a massive private investor community,
daily crypto trade signals, free coaching, and alerts
whenever I buy or sell assets all for as little as $10 a month,
and there's a reason that we have nearly 10,000 satisfied members.
The first indicator that I want to talk about is
It's one of the most popular ways of looking at how prices change.
This tells us a lot more about the supply and demand
for an asset than a simple line graph ever could.
Candles can be set to show price changes per minute,
per hour or per day, and this is beneficial depending on
how frequently you trade.
So let's look at the colors first.
A red candle tells us, for that day,
the asset closed at a loss
and you guessed it,
a green candle tells us that the price went up.
What's more important to look at here is
If the candle is red, then the closing price
is the bottom end of the candle,
with the opening price at the top.
The opposite is true for green candles,
the bottom is the opening price
and the top is the closing price.
Many new traders will forget to look at the wicks,
and this is important. Don't forget the Wick.
That sounds dirty for some reason.
- That's what she said [Laughs]
The wicks tell us what the highest and lowest
prices were for the day or whatever time interval
your candles are set to.
Very often the wick extends past
what a candle's opening and closing prices are.
So, as a rule of thumb, we say the larger the wicks,
the more volatile the market.
But we can dig deeper still, because
First, the red candles:
a long wick at the bottom of a red candle
can tell us that within the day
or whatever time period you're looking at,
prices fell to what many investors
consider to be the cheapest price.
And so they bought back in at that price,
driving the price back up.
Some investors see this as an indication that
the price will begin to move up
in the next day or the next trading period.
But remember that a long wick means high volatility,
and that trend could easily reverse.
Now, if you see a short wick at the bottom
of a red candle, proceed with caution.
This tends to mean that traders will continue to sell the asset.
But again, this is not always certain.
Now, for green candles, a green candle means that
during the set time period, the asset's price went up.
A long wick at the top of a green candle
tells us that at some point within the day
the price significantly exceeded the closing price,
meaning that traders might have considered that to be the top
and then decided to take profits at that top price,
that is, sell their crypto or stock.
Long wicks show us that the market is volatile and
could indicate that the price may fall from there.
A short wick at the top of a green candle, on other hand,
is common when the price is at all time highs.
Now, some say this is a good time to sell
if you're looking for an exit in that position.
If you are looking for an opportunity to buy
and you only had the candlestick chart to look at,
a good time to do so, according to technical analysis,
would be on a red candlestick with
a long wick at the bottom and a short one at the top.
Now let's pump the brakes here for a second because
you'll notice on this chart for ADA price movements,
there are some red candles that fit the description
of a buying opportunity only for the price to fall
well past that just a few days later.
And spoiler alert: the tools that we're going to discuss today
can't account for which way investor sentiment is
going to go in the response to headlines and other global events.
There isn't a candlestick that can predict
a global pandemic or election results, unfortunately,
and if you find a fortune-telling candlestick, keep it to yourself,
but DM it to me,
but keep it yourself.
and one way of making
an informed decision, despite that volatility is by using trend lines.
This is the practice of finding the
overarching movement in price,
Many exchanges will have charts that automatically
show you trend lines generated by AI.
But if you want to DIY a trend line,
by choosing a period of time that you want to measure,
starting at the bottom of the candlestick for that day, week, or hour,
and then drawing a line connecting it to the
bottom of other candlesticks.
Once you have enough points, you can project
your trend line in the future to help you determine
if the price will move upwards or downwards
if that trend continues.
Trend lines can help us take a step back and
If we look at that same price chart for Cardano ADA,
except zoomed out, where each candle represents one week,
we can see the trend now tells a completely different story.
If we were looking at the performance of Cardano
just in the last few days, our trend line would be
clearly pointing downwards.
However, looking at the last few months,
the bottoms of most of the severe candles
have been showing a general uptrend.
This indicates that ADA could be a good long hold crypto.
However, with this, you may have to sit
through some heartwrenching price swings on your way up.
And again, none of this is science.
Because of this, it's good to compare multiple trend lines,
looking at long term trend lines,
covering about six months to a year,
and then compare that with short term trend lines.
This will help you find better entry and exit points
in the assets that you're interested in.
So far, I've talked about ways that you can interpret
common price charts for your own technical analysis.
So next, let's talk about support
and resistance lines and how to derive and interpret them
for your very own strategy.
Well, support and resistance lines are horizontal lines that
you can draw on to your price chart.
Support shows the lowest price at which
investors are willing to buy that asset.
This signals when buyers show the most
demand for an asset.
When you see an asset continually
bouncing off a specific price, this is support.
Let's say you're trying to forecast prices for the next month.
You might look at the lowest price point
from the previous month and label this your support level.
This way, if and when your stock or crypto dips
to below that price point the following month,
you can anticipate that
an upwards trend may be coming.
Resistance, on the other hand, shows the highest
price at which investors will usually stop buying
and instead begin selling that asset.
This can signal that there are more buyers
than sellers in the market at that specific
price, meaning that the asset will have a
harder time passing through this price point.
In your analysis, you might see that
support and resistance lines don't really
change from period to period.
and this could lead to what we call
Trading Sideways, where the price doesn't change a whole lot
over a period of time.
Now, what you want to look out for are
Take, for example, our ADA chart from last month
notice how from September 15 to October 18,
there was a steady decline in the resistance line,
meaning that investors were finding lower
and lower prices too expensive to buy.
We saw the resistance line drop from $2.6 down to
$2.3 and then continue to dip around $2.1.
So at least for this short period that we're measuring
the price at which there was an oversupply of ADA,
This might lead an analyst to believe
that there would be a steep correction coming in this asset.
Next, we talk about formations.
Formations are patterns in the price movement
of an asset on its chart.
Formations are amazing
because this is what allow us to identify
the most likely direction an asset is headed to,
as well as the most likely price it will stop at,
after breaking through that formation.
In the same image, you will see
a yellow circle and a green circle.
The yellow circle is the moment this asset
broke out of the formation.
Most traders, get a listen here,
most traders will make the mistake
of entering a long or buy position
at the moment of breakout.
This is a huge but very common mistake new traders make.
They assume that since it broke out of the formation,
this verifies the formation that
they drew, verifies that it's accurate
and verifies that the asset will go directly
to their price target, but it's an extremely important
practice to be patient here
for the confirmation bounce.
An example of this is the green circle
the price bounces off of our previous resistance line,
confirming that this resistance no longer
has the same effect.
The confirmation bounce should be the best
moment to enter in your trade.
If it bounces to the upside,
you would enter a long position.
If it breaks through to the downside,
you would enter a short position.
Breaking through a pattern just like the trend lines
we just discussed is called a continuation pattern,
so let's briefly cover a few popular
patterns that you may see referenced.
The pattern that we just looked at
could be referred to as a wedge pattern.
If trend lines had connected in that pattern,
it would be called a Pennant pattern.
Flag patterns are two parallel trend lines
that can head upwards, downwards or sideways.
A cup and handle pattern is when the
price increase has paused.
The bowl shape is then followed by what
looks like a Pennant chart pattern,
and this may indicate a further breakout in price.
A head and shoulders trend following an increase in
price may indicate the price will decrease.
A reverse head and shoulders trend
following a decrease in price
may indicate that the price will increase.
Now it's important to note that humans love
finding patterns in literally anything,
and there are a million chart patterns
that can mean different things,
but this doesn't mean you should expect
the result to always come true.
Again, this just helps paint a more clear picture,
Now that you know when to enter a trade,
let's talk about when you should exit a trade because
this may be even more important
than when you enter a trade.
And this answer may vary because it depends
on whether or not you are trading futures
with leverage or trading spot without leverage.
Leverage is simply borrowing money
to use in a trade to help increase your potential return.
Let's say you've entered a trade with $100.
When trading with leverage, you may borrow funds
against that $100 with 10X leverage,
your $100 acts as if it's $1,000.
So mathematically, when the asset you're trading goes up
1%, you will actually be 10% in profit.
However, it's not all good and rosy because
if the trade goes down 1%, you will be at a 10% loss.
If you lose too much, you will be liquidated completely,
meaning you lose all the funds
that you entered into the trade and you
don't want to be in that position.
So this, of course, is very high risk and not for beginners.
Here you still have the risk of losing money,
but liquidation is not a concern like it is with leverage.
When trading with leverage, typically, you want to
close your trade the moment you
hit your target or just before.
This will prevent you from being hit with recurring leverage fees.
When you're trading with spot, you don't have to
worry so much about rushing out of the trade.
So if a trade has surpassed your target, you can simply
hold longer and set up a trailing stop loss.
Now, a trailing stop loss is a stop loss
tool you can use that will follow the price
of an asset by a dollar amount of your choice and then
close your trade at the maximum amount of
profits possible, completely on autopilot.
Typically, you wouldn't set up a trailing stop loss
until your price target is already hit,
and you just want to try and make a little bit more profit.
Now, speaking of hit, if you appreciate my efforts
in putting together this free course, just
please consider hitting the subscribe button.
It's totally free, and you can always change your mind later.
Now, spotting trends isn't enough on its own.
You also need to evaluate the strength of a trend because
So one indicator that we can look at is trading volume.
This is the total dollar amount traded of an asset.
Now it's pretty simple to do this,
so it should be a regular part of your technical analysis.
The higher the trading volume, the stronger the trend.
And this makes sense if you think about it because
a trend with 10 million in volume behind it
means much more than a trend with
1 million in volume behind it.
So it's always good to take a look at the
24 hours trading volume on days where the
price moved downwards and then
compare this to the trading volume on days
where the price moves upwards.
If you see higher volumes on positive days,
this can tell us that there's a long term potential
for the asset to continue trending upwards.
This also helps us evaluate
how the market will react to a sharp drop in price.
If the trading volume during one dip
is larger than another more severe dip later on,
we might determine that the drop in price
does not signify a stronger downwards trend.
Something else to take into consideration is Market Cap,
which you get by multiplying the current price
of your crypto or stock with the
total supply of the crypto or stock.
Big cap coins and stocks tend to be
more stable because large volume trades
have less of an impact on their prices.
It's hard to move a big shift.
Now let's move on to a more technical indicator
of price movement and one that
I use quite regularly.
This is the Relative Strength Index
or RSI indicator for short.
The RSI of a certain crypto
or stock usually is pretty easy to access.
It's usually displayed just underneath price charts
for the purpose of directly comparing price trends
with the RSI.
It's displayed as a number between 0 and 100,
and this number changes continuously
based on trading activity,
typically relative to the average gains
and losses over a 14 day period.
This kind of graph is called an oscillator
because the readings always show a number between 0 and 100.
So let's break down how this works.
In basic situations without drastic market moving events,
RSI indicates whether a crypto or
any kind of security is overbought or oversold.
A reading above 70 would tell us that it's overbought
and can signal that a price correction may happen.
A prolonged RSI above 70
can be interpreted as some kind of bubble
and that the coming correction could create dramatic losses
to the people who are invested in that asset.
Now, readings under 30 indicate
that the security is oversold.
In other words, the asset may be undervalued,
meaning it could be a good opportunity.
You've probably seen videos where certain
cryptos or stocks are proclaimed to be undervalued.
The RSI indicator was likely one of the tools
used to come to that conclusion.
And now you can use that, at the water cooler at work,
you can be like, hey, you know I think that this stock is undervalued.
You know, you just check the RSI.
It can be that easy.
So there's actually a whole book
written about the Relative Strength Index.
If you want to fully understand it, I'll have this book
linked in the description of this video.
Now we need to talk about the moving average.
You can calculate this by taking the price ratings of your
crypto or stock from the last X number of days.
The standard is 20, but you can reduce it to about 5,
if your trading strategy requires it.
So this works by adding up the prices
each day, of your stock
or asset or crypto, and then dividing that sum
by the total number of days in the period.
It's just the average price.
What this gives you is a price figure that's
less impacted by wild market swings,
allowing you to focus on price performance as it changes
over longer periods of time.
If you want to use a shorter window for your average,
like five days, just know that your moving average could be
far more affected by temporary price swings
than longer averages are affected.
I like using moving averages to
forecast price changes in a similar way
to how the RSI indicator triggers Buy and Sell alerts.
When the price of an asset falls below your moving average.
Some investors take this to mean a
downward trend is imminent and you can interpret
crypto or stock prices above your moving average
to mean an upwards trend is more likely to happen.
Now, understanding when to take profits
can sometimes be tricky, but there's a solid
rule you can remember
and I think everyone should follow this.
It's never wrong to take profits
even if it's 1% even if it's half a percent.
and tell you it could just keep on going up.
Trust your plan, not your emotions.
Please, you will make more money in the long run.
So far we have gone over trend lines.
Now let's cover how we can use these formations
to find a price target so then we know
when to safely exit a trade.
In this example, I will show you a
double bottom formation or a W-formation.
We'll call it a booty formation ??
I don't know.
In this formation you wait until we
break the resistance called the neckline.
We then wait for the confirmation bounce.
This is revealed to us after the breakout.
The price action uses the neckline as support.
We measure the target by measuring the
bottom of the W formation to the neckline,
then dragging the measurement to the top of the neckline.
We can also use indicators to tell us
if we're unlikely to hit the exact target.
Indicators I like to use are EMAs,
which stands for Exponential Moving Average.
My settings are at 21, 90, 200 and 600.
This indicator will tell you when the price is
likely to hit short term support or resistance levels.
And there you have it.
Some of the useful tools that you
can use to get started in your own
technical analysis of your favorite stocks and cryptos.
I would recommend setting a reminder on your calendar
to rewatch this video in about a month from now
just to ensure that everything locks in.
And again, if you'd like even more content and buy alerts,
daily crypto trade signals and weekly coaching,
make sure to check out my Patreon,
linked in the description below.
You will not regret it.
Also from here, I highly recommend you watch my
free crypto for Beginners
or free stocks for beginners courses.
I will have these clickable on screen here.
And with that, I want to thank you so much for watching,
Посмотреть больше похожих видео
Crypto Trading Guide: Beginner to Pro Journey
Can We Expect Outperformance in Engineering Sector? | MKLH | Raju Ranjan | Definedge | 21-May-2024
Master Support & Resistance Levels (ALL YOU NEED TO KNOW)
StockPro | BREAKOUT STOCKS FROM BREAKOUT SECTOR AND MY TRADING STYLE
Go From a Complete Beginner To a Pro Forex Trader In 11 Minutes Only || Forex Trading For Beginners
BUYING??? (BTC SOL ETH NVDA TSLA...)
5.0 / 5 (0 votes)