The Weekly Stochastic RSI Bull Flag Pattern - 1 Big Trick to Spot It (Aug 20 2024)

Summary

In this exclusive bonus video, the speaker discusses the potential of a weekly stochastic RSI cross for Bitcoin, an event anticipated for months that could rival the 'two-month gravestone doji.' They provide insights on trading a bull flag pattern to maximize profits while minimizing risk, sharing a valuable tip for the stochastic RSI applicable throughout one's trading life. The speaker also hints at more exclusive content for email subscribers, emphasizing the importance of whitelisting their emails to receive future bonus videos.

Takeaways

• 📈 The speaker is discussing a potential weekly stochastic RSI cross, a significant event that could impact the cryptocurrency market.
• 📊 The stochastic RSI has been range-bound for about 175 days, a period that Bitcoin often favors before making a significant move.
• 🔄 The market can be trending upwards, downwards, or range-bound, and Bitcoin has a history of prolonged moves around the 200-day mark.
• 📉 Bitcoin's stochastic RSI has shown prolonged bullishness, which is typically followed by a period of bearishness as the market reverts to the mean.
• 🚫 The speaker warns against trading within chart patterns before they confirm, emphasizing the importance of waiting for a breakout or confirmation candle to minimize risk.
• 📊 A bull flag pattern is described, characterized by a significant bullish move (flag pole) followed by a consolidation into a specific formation with parallel resistance and support lines.
• ⏳ The importance of timing is highlighted, with the speaker noting that the confirmation of the stochastic RSI cross only matters at a specific time (Sunday 11:59 p.m. UTC).
• 📌 The speaker suggests that the current market setup, including the bull flag and the potential stochastic RSI cross, could lead to a new all-time high for Bitcoin.
• 🔑 A 'secret tip' is mentioned regarding the stochastic RSI, indicating that understanding prolonged periods of bullishness or bearishness can be valuable for future trading decisions.
• 💌 The speaker encourages viewers to whitelist their email to receive exclusive bonus videos, promising more content in the coming months.
• 🤝 The video concludes with a reminder to stay informed and make decisions based on facts, rather than speculation or emotion.

Q & A

What is the significance of the weekly stochastic RSI cross mentioned in the video?

The weekly stochastic RSI cross is significant because it indicates a potential market shift. It's a rare event that happens a few times a year and is associated with the most bullish market entries, suggesting that it could be a pivotal moment for Bitcoin's price action.

What is the 'two-month gravestone doy' referred to in the script?

The 'two-month gravestone doy' is a term used to describe a particular bearish chart pattern that occurs on a higher time frame, specifically a two-month time frame, which is seen as a significant resistance level for Bitcoin's price.

Why is the bull flag pattern important for traders according to the video?

The bull flag pattern is important because it typically follows a parabolic rise in the market, indicating a consolidation period. It is seen as a continuation pattern that suggests the market may continue to trend upwards after the consolidation, making it a key indicator for traders looking to maximize profits and minimize risk.

What does the speaker suggest about trading inside chart patterns?

The speaker advises against trading inside any chart pattern before it has confirmed, as there is no chart pattern that is 100% reliable. Instead, traders should wait for a breakout or a confirmation candle to minimize risk and maximize reward.

What is the role of the trend line in the analysis presented in the video?

The trend line plays a crucial role as it represents a long-term support or resistance level. When a trend line is broken, it often signifies a significant change in momentum, which can lead to a strong move in the direction of the breakout.

Why is the duration of Bitcoin's range-bound period important?

The duration of Bitcoin's range-bound period is important because it often precedes a significant market move. Bitcoin tends to have prolonged moves around the 200-day mark, and the current period of about 175 days is close to this historical pattern, suggesting an imminent trend change.

What is the 'pivot high' and 'pivot low' mentioned in the video?

The 'pivot high' and 'pivot low' refer to the highest and lowest points in a market's recent price action that act as potential support and resistance levels. They are used to identify the structure of the market and can be key indicators for future price movements.

Why is the speaker encouraging viewers to whitelist their email?

The speaker is encouraging viewers to whitelist their email to ensure they receive exclusive bonus videos that are sent out. These videos contain valuable insights and updates that are not publicly available, and whitelisting ensures they are not missed.

What is the significance of the stochastic RSI being overextended at the 100 level?

The stochastic RSI being overextended at the 100 level indicates prolonged bullishness. This condition often precedes a reversion to the mean, suggesting a potential price correction or a period of bearishness as the market seeks to balance the previous overextension.

What does the speaker mean by 'everything reverts back to the mean' in the context of the stochastic RSI?

The phrase 'everything reverts back to the mean' refers to the statistical concept that after a period of extreme values, whether high or low, the values tend to move back towards the average or mean. In the context of the stochastic RSI, it suggests that after a prolonged period of bullishness, the market will likely experience a period of bearishness to balance out the previous trend.

Outlines

00:00

📈 Anticipating a Potential Weekly Stochastic RSI Cross

The speaker introduces an exclusive bonus video for the email list, focusing on the anticipation of a weekly stochastic RSI cross that has been awaited for months. This event could challenge the two-month gravestone doji pattern. The video will also cover an update on a 'bull flag' pattern and provide trading tips to maximize profits and minimize risks. A special emphasis is placed on the importance of whitelisting the email to receive future bonus content. The speaker hints at an increase in exclusive videos in the coming months and starts the discussion with the stochastic RSI, noting Bitcoin's range-bound behavior for approximately 175 days, a pattern it often follows before making significant moves.

05:03

📊 Understanding Bull Flags and Trading Strategies

This paragraph delves into the concept of a 'bull flag', a chart pattern that often follows a parabolic rise in the market. The speaker explains the structure of a bull flag, characterized by a flagpole indicating extreme bullishness, followed by a consolidation into a specific formation with parallel lines. The importance of not trading within the chart pattern is stressed, with advice to wait for a breakout or confirmation candle to minimize risk. The discussion includes the significance of watching for a breakout on the weekly time frame and the potential implications of a new pivot high, suggesting a possible upward trend.

10:05

🚀 Preparing for a Breakout with Stochastic RSI Cross

The final paragraph emphasizes the importance of the upcoming stochastic RSI cross, which the speaker has been highlighting for months as a critical event for Bitcoin's potential to reach new all-time highs. The speaker discusses the rarity and significance of such crosses, which typically indicate a strong bullish entry into the market. The paragraph also touches on the importance of waiting for confirmation on the charts before making any trading decisions, and the need to stay informed with more bonus videos to come. The speaker encourages viewers to engage with the content and to keep an open mind to various market scenarios while focusing on facts and patterns.

Keywords

💡Stochastic RSI

Stochastic RSI is a technical analysis indicator that compares a currency's closing price to its price range over a certain period. It is used to determine overbought or oversold conditions in the market. In the video, the speaker discusses the potential for a weekly stochastic RSI cross, which is a significant event that could signal a major market movement. The speaker has been monitoring this indicator for months, indicating its importance in predicting Bitcoin's price action.

💡Bull Flag

A bull flag is a continuation chart pattern that appears in an uptrend and signals a pause before the continuation of the uptrend. It is formed by a strong upward move (the flagpole) followed by a parallel channel (the flag). The speaker in the video provides an update on the bull flag, explaining how to trade it to maximize profits and minimize risks. The bull flag is seen as a sign of a potential upward movement in Bitcoin's price.

💡Range Bound

Range bound refers to a market condition where the price of an asset moves within a specific price range, showing little to no trend. The speaker mentions that Bitcoin has been range bound for about 175 days, which is a significant period for the cryptocurrency. This context is important as it sets the stage for the potential breakout that the speaker anticipates.

💡Parabolic

Parabolic describes a market trend that sharply rises or falls, resembling a parabola in shape. In the video, the speaker refers to Bitcoin's past parabolic moves, indicating periods of significant price increases. These moves are important as they often precede or follow important technical events like the stochastic RSI cross discussed.

💡Breakout

A breakout in trading refers to the price of a security breaking above a resistance level or below a support level after a period of consolidation. The speaker discusses waiting for a breakout as a strategy to confirm the direction of a trend, particularly in the context of the bull flag pattern. This is a key concept in the video as it relates to the timing of trades based on chart patterns.

💡Confirmation Candle

A confirmation candle is a price pattern that validates a breakout or trend continuation. It typically involves a candlestick closing in a particular direction after a breakout, indicating that the breakout is likely to be sustained. The speaker emphasizes the importance of waiting for a confirmation candle to minimize risk and increase the probability of a successful trade.

💡Trend Line

A trend line is a straight line that connects a series of price points on a chart to show the direction of the trend. In the video, the speaker mentions a long-term trend line that, when broken, can signal a significant change in the market momentum. This concept is crucial for understanding potential entry and exit points in the market.

💡Resistance Zone

The resistance zone in trading is a price level at which an asset's price tends to stop rising and start falling. It is often a result of selling by the market participants. The speaker refers to the resistance zone in the context of the bull flag pattern, explaining how the price consistently meets resistance at the top of the flag, which is a key feature of this pattern.

💡Support Level

A support level is a price level where an asset's price tends to find stability and stop falling. It is an area where the price is likely to see a reaction or bounce. In the video, the speaker discusses the support level at the bottom of the bull flag channel, indicating where the price finds a 'floor' and is likely to bounce back up.

💡False Signal

A false signal in technical analysis occurs when a pattern or indicator suggests a particular market movement that does not materialize. The speaker mentions two false signals in the stochastic RSI, which led to a continuation of the range-bound movement rather than a breakout. Understanding false signals is important for traders to manage expectations and risk.

Highlights

Introduction to an exclusive bonus video for the email list subscribers.

Discussion on the potential weekly stochastic RSI cross that has been anticipated for months.

Opinion on the significance of the stochastic RSI cross in comparison to the two-month gravestone doji pattern.

Update on the bull flag formation and its potential impact on trading strategies.

Tips on trading the bull flag to maximize profits and minimize risks.

A big trick with the weekly stochastic RSI applicable for lifelong use.

Emphasis on whitelisting the email to receive exclusive bonus videos.

Bitcoin's range-bound behavior and its typical duration of 100 to 200 days.

Analysis of Bitcoin's stochastic RSI history and its tendency for prolonged bullish or bearish periods.

Explanation of the concept of 'reversion to the mean' in the context of stochastic RSI.

Identification of false signals in the stochastic RSI and their impact on market behavior.

Structural analysis of Bitcoin's pivot points leading up to a potential cross.

Importance of observing the stochastic RSI cross at the exact UTC time for accurate market prediction.

Description of the bull flag formation and its characteristics in market trends.

Advice against trading inside chart patterns before confirmation of market direction.

Strategy for trading the bull flag by waiting for a breakout and confirmation to minimize risk.

Discussion on the potential of the stochastic RSI cross to challenge the two-month gravestone doji and its implications for Bitcoin's all-time high.

Encouragement for viewers to stay informed with upcoming bonus videos and the importance of email whitelisting.

Transcripts

welcome to an exclusive bonus video

exclusive to you on our email list we've

got a lot to cover in this video I want

to cover my opinion of this weekly

stochastic RSI cross that is a

potentially about to happen something

that we have been waiting months and

months for something that could

potentially battle the twomon gravestone

dogee it could finally be upon us I want

to give my opinion on that also we have

what's called a bull flag for me I want

to give you the update of the bull flag

and how to trade that bull flag to

maximize your money and some tricks to

minimize your risk I also want to give

you one big trick with the weekly

stochastic RSI something that you can

use the rest of your life all of this

jam-packed value into one video I do a

lot of these bonus videos for free to

everyone on our email list just to show

love make sure you whitelist my email if

you don't whitelist my email address

you're never going to get these videos

and I'll give you a little inside tip

I'm going to be pumping out more

exclusive bonus videos this the rest of

this month and next month so you better

whitelist the email you do not want to

miss these bonus videos so if you're not

sure how to Whit list it just do a quick

Google and you're good now let's get

into it I want to do the bull flag I

want to do the weekly stochastic RI and

then a little trade tip on the bull flag

and a little secret tip on here so let's

start with the stochastic RSI the star

of the show the thing that we've been

waiting months and months for so let's

do a little update on where we are and

where we have been so basically

bitcoin's been range bound right range

bound for about

175 days keep in mind the market can be

a trending Market or a range bond market

there's only two kinds of markets you

can Trend either upwards or Trend

downwards and range bound is just going

sideways one of the things that to keep

in mind with the range bound is how long

Bitcoin loves that 100 to 200ish days

keep in mind this move here was a little

bit more than 200 days this move here

was a tiny bit more than 200 days this

was about 100 days and we're at 175 so

Bitcoin really loves to make prolonged

moves right around that kind of 200ish

Mark days and and we're really really

close to that so what has happened is

Bitcoin went pretty parabolic in our

stochastic RSI prolonged bullishness for

an extended period of time case in point

take a look back here in September 202

three one year ago we had a huge

stochastic ride cross it was after we

had been range Bound for about 200 days

sound familiar we had a stochastic r eye

cross and we went parabolic when we went

to parabolic we went all the way up in

our stochastic RSI and topped out at 100

and stayed there for an extended period

of time a prolonged bullish case here

and then we ended up going down down in

breaching the 20 for a tiny bit of time

and then we went right back to being

absolutely prolonged overextended

bullish now what typically happens with

that is you see a period everything

reverts back to the mean so if we spent

way too long being bullish and we didn't

really have time to cool off and we did

it again on the next one and we stayed

bullish for too long we needed time to

really cool off everything reverts back

to the mean case in point look at any

time that we had a prolonged time of

bearishness in the stochastic RSI it was

right after a ridiculous amount of

bullishness and not enough time below

the 20 and way too long up at the 100

that's why we had this period here

everything reverts back to the average

so this is a huge tip that you can use

the rest of your life when you're in a

situation where it's like wow we've been

prolonged bullish for so long we're

going to have a period of bearishness

under that 20 Level so what we've had

prior is prolonged bullishness no time

to really cool off and really reset what

we were doing we had this period here

just below the 20 but really moments

below the 20 and then back up so what we

had seen back here in May is we had a

cross up so may we had a cross up and it

turned out to be a fake out a false a

false positive right so we ended up

going from our base down here about 50

56,000 and we rallied back up to our

resistance Zone with that fake out and

then we crossed back down and we simply

went from our resistance Zone back down

to our base and then we had another fake

out cross and we simply went back to our

resistance Zone we just been bouncing

along in this channel nothing too

exciting but again Bitcoin loves these

moves of you know 150 to 200 days of

really pulling the trigger in making a

large move so we are gearing up right

now for a another cross the good thing I

liked about this fake out that we had

just had is it actually made a new pivot

higher high this was our prior high in

June this was our new high in July as

well as our pivot bottom so far right

this was our pivot low and this is

potentially our pivot higher low with a

potential cross so that's something to

keep in mind just structurally you want

to see that going into this cross now

here's what we want to look for right

you want to look for on Sunday evening

11:59 p.m. UTC time what this looks like

this could look different later today it

could look different tomorrow it could

look different the next day none of

those days matter at all it only matters

what this looks like on Sunday 11:59

p.m. UTC time that's it everything in

between now and then is pretty much

irrelevant so stay levelheaded this

could switch back up it could switch

back down back up down multiple times in

the same day and you are are relaxing

okay now let's get to the bull flag the

bull flag is really interesting because

we have this huge flag pole here right

now what a bull flag is is basically you

have this flag pole the flag pole will

be an incredibly bullish point where the

market goes parabolic right when it goes

parabolic it creates this almost like a

flag pull it's straight up once you have

this extreme bullishness enter the

market usually there's a consolidation

period but it consolidates into a

specific formation case in point a bull

flag so what we're going to do here just

to keep it simple we'll go ahead and

hide this we'll go ahead and delete this

and delete this now what you want to see

on a bull flag is you want to see

parallel lines right so you come from up

here to down here you can see that we

have this channel here where you

essentially have a high a lower high a

lower high and a lower high multiple

touch points with consecutive lower

highs now at the bottom of our Channel

and by the way this acts as resistance

so every time it gets into said Zone

there's resistance resistance at this

touch Point resistance here resistance

here and resistance here all while

creating continuous lower highs now at

the bottom of our Channel it access

support right what you see Happening

Here is multiple touch points here and

you want to see the lines relatively

parallel in a textbook bull flag you

want to see multiple touch points and

you want to see the bottom of our

Channel act as support and the top of

our Channel act as resistance now what

you never want to do is trade inside of

any chart pattern right no matter what

chart pattern you're being told is on

the chart and it's going to be be so

bullish or so bearish it doesn't matter

what they say you do not trade in any

chart pattern known to man there's no

chart pattern in the history of chart

patterns where you make a trade inside

of the chart pattern before the chart

pattern actually happened meaning what

you want to do if you're like hey this

is a bull flag well some people will say

I'm just going to blindly buy because I

think bull flags are bullish it says

bull right in the name well what you

never want to do is trade inside because

nothing is 100% there's no chart pattern

that starts to play out where 100% of

the time it does the same thing it

doesn't happen the majority of the time

these break to the upside I said

majority I didn't say 100% there's no

such thing as 100% so if you were to

make a trade in here thinking it's going

to be bullish and then this thing breaks

down you're in

right so what you want to do instead is

you wait for a

breakout now when you some Traders will

wait for a breakout so this thing starts

cracking and it starts going up and we

have a breakout and they're like you

know what I'm entering my trade here you

could do that but it does add more risk

doing it that way and here's why more

experienced traders that want to

minimize risk will wait for a

confirmation

so we're looking at the weekly time

frame right depending on what time frame

you're looking at you wait for a

breakout or a break through right it's

any candle that breaks above here and

you wait for the closing of that candle

once that closes that's called the

breakout candle you can trade on the

breakout but more risk other Traders

will minimize the risk and wait for a

confirmation candle that's the following

candle that closes if that closes with

this this line as

support that is when you enter the trade

that will minimize the risk even more

and maximize your reward to the upside

with a more higher probability that this

thing's going up right it's less likely

that this thing has a breakout candle

and then a confirmation candle and then

collapses to the downside although that

could happen but it's relatively rare So

Traders will wait for that break through

or breakout candle same same thing

breakthrough breakout and then

confirmation candle is that second one

right it's that candle that actually

closes keep in mind so that's how to

trade this right when you pair all of

this together you say okay we're in a

bull flag and we're getting ready for a

stochastic I Cross isn't this thing like

100% nothing's 100% at the same time we

do have this trend line which we talked

about in the YouTube channel we also

talked about how when you break a

long-term trend line these things are uh

pretty good when you break it there's a

lot of momentum on in our on our side

and pushing prices upward all of these

things are true we just need to wait for

actual confirmations in the charts so we

can go based on facts right now we're

still inside of a bull flag and we still

haven't had this cross and we still

haven't had this break through all of

those things are true at the moment

there's no definitive yes or no or

bullish or bearish there's just the

facts that we have stated right here so

what are we really looking for with this

crossup well this crossup as I've been

mentioning for months now this is the

only thing that could battle the

two-month gravestone doy the two-month

gravestone dogee is obviously on a much

higher time frame a two month as opposed

to a one week but these crosses only

happen once in a while you know a couple

times a year you can get a stochastic ey

cross and those happen to be when the

most bullishness enters the market we

happen to be coming off of not one but

two false signals both of which

continued our move inside of this bull

flag and continued this range-bound move

that Bitcoin loves to do especially

after a parabolic move so all of these

things are lining up on the charts and

this could be bitcoin's chance to make a

new all-time high as I mentioned months

ago Bitcoin will not make a new all-time

high and will not have a chance to

unless it has a weekly stochastic II

cross that's something I said months and

months and months ago and we could be on

the cusp of that now there are some

bearish charts that we've got to discuss

and we have to keep an open mind for

what's to happen but we're going to

continue to look further into the facts

so that you have more knowledge on your

side I'm going to be making more bonus

videos this month and next month make

sure you whitelist our email address so

that you can actually get these bonus

videos put a comment throw a like on

them and I'll see you right here in the

next bonus video

peace and love to the fellow underdogs