Unlock the Secrets of Cryptocurrency Trading: Beginner’s Ultimate Course

The world of cryptocurrency trading can seem complicated and overwhelming, especially to beginners. That’s why The Ultimate Cryptocurrency Trading Course for Beginners was created, to simplify the learning process and help aspiring traders navigate this exciting market. This course is designed to provide a comprehensive overview of cryptocurrency trading, from the basics to advanced strategies.

– Covers all aspects of cryptocurrency trading, from understanding blockchain technology to analyzing market trends and making informed trades.

– Includes exclusive tips and tricks from experienced traders, as well as hands-on exercises to help students apply what they’ve learned.

– Offers flexible online learning options, including interactive video lessons, quizzes, and live trading sessions with expert mentors.

This is two hours of unreal value and insight into crypto trading from a professional trader if you’re getting into crypto and you need to know how to trade from start to finish how pros read the markets how to place orders how to know when and why to trade how to get in

And out of your crypto trades for profit and just a practical step-by-step guide of how to increase your chances of making money with crypto trading this is it hey guys james here this is a unit by unit course to get you from beginner to confident trader all of the resources

Links extra information extra videos and the timestamps for each unit are listed in the description for you definitely look in there to learn more i really hope you get a lot of value out of this video so i’m going to get started with just telling you what the course is going to

Give you at the end of this video this is what you’re going to know we’re going to start with cryptocurrency basics for beginners now if you already know this and you want to skip through the beginning parts then that is up to you go and check the description for all the

Time stamps but we’re going to go through actually what cryptocurrencies are why you would want to trade them then what is a stable coin that’s really important we’re going to go through the best crypto news and education sites so that you can actually go and do your own research

Also what are the best crypto trading venues for each and every user because we are all different then i’m going to go through and compare centralized versus decentralized exchanges why use one over the other what the pros and cons we’re going to go through some crypto trading strategies so if you want

To know actually how to go ahead and implement some strategies to try and get some money when trading crypto then we’re going to go over that that will be for beginners but that will link with a unit later on in the course which is going to go over specifically how to

Actually put orders in where to put orders in and why we would do that if you are new then i’m going to go over all the crypto order types as well so what is the order book what are market and limit orders why do we use these

When we’re trading then we’re going to go over technical analysis for crypto that is a really big unit it is chocked full of information really great information so i definitely recommend looking at that one after technical analysis we’re going to go through and trade so you’re going to see me go

Through some sample trades why i chose that trade where i put my stop loss where i put my take profit and then just a recap of the course in general before we get into the course and all the units though just a quick self introduction if

You don’t know who i am and you haven’t watched the channel used to work on the london stock exchange for over five years got a few certificates and this is not financial advice i’m not your financial advisor this video is not financial advice please just take it for education and information all trading

Involves risk and a significant risk of loss so just keep that in mind okay let’s get into it the first unit is crypto basics what are cryptocurrencies what are blockchains what are the different types of blockchain what are the different types of crypto and how can we use tokenomics to actually go and

Research cryptocurrencies what are cryptos they’re just tokenized assets that represent value not really much more than that not all cryptos are created equal though there are better coins better blockchains more useful blockchains and there are poor blockchains and low quality blockchains as well in terms of barriers to entry

Especially for us retail investors there are very low barriers you can sign up with an exchange get trading straight away with very low fees so that’s definitely a positive for trading crypto over something like forex or even stocks 24 7 trading as well there are different types of blockchain and cryptos that we

Can trade you have blockchains that really focus on being a currency which is just a ledger of transactions that’s all it is so the main example there is bitcoin litecoin is a fork of bitcoin and actually dogecoin i think is a fork of litecoin so it’s a fork of a fork but

Essentially these block chains do one thing only and that is keep a ledger of people transacting now stable coins are a little bit different they are definitely used as a currency but they’re not usually their own blockchain they’re usually built on a different type of blockchain known as a smart

Contracts blockchain so the main one there is ethereum this blockchain is different to bitcoin whereas bitcoin is simply a ledger of transactions ethereum allows people to actually enter into contracts on the blockchain which means you can have a lot more uses on that blockchain you can actually issue

Different types of tokens on ethereum so you might want to go and trade let’s say uni swap which is a token that’s actually an ethereum based token these are known as erc20 tokens so it’s good to know the differences because when you’re investing in cryptocurrencies you’ve really got to know what you’re

Investing in are you investing in a main blockchain are you investing in a different type of token so these are the main smart contracts blockchains right now they are very different to the currency type blockchains now these are the types of cryptocurrency what do you

Want to trade what do you want to invest in where do you want to focus your resources do you want to trade currency tokens really here this is like trading gold or something like that where there’s not much value apart from the value that people actually think it’s

Worth but then you have different types of tokens like exchange tokens so a lot of exchanges like binance and kucoin will have their own tokens so you can trade those different type of value proposition you also have protocol tokens injective protocol is a good one so that code actually does something

Specific and they have their own token it’s going to be a very different investment proposition than something like a currency token d5 tokens are really popular utility tokens could have many different uses on a blockchain and can be very important over time you even have stock tokens which is a way of

Trading the value of a stock but with a cryptocurrency definitely some positives of doing that overall and then you have nfts which are totally different so all of the cryptocurrencies that you’ll trade will be known as fungible tokens the same as fiat currency if i gave you

A dollar and someone else gave you a dollar those dollars are the same you can swap them around and give them back to someone else and they are all the same or otherwise known as fungible non-fungible tokens are completely different they are like art there’s only one picasso and painting of each certain

Type there is only one unique piece of art that a person makes and so that is non-fungible it cannot be swapped around and that is what nfts do as well nfts are a completely different value proposition and investment as well it’s like investing in art and fts can be

Used for a lot of different things though and then we come to coins and scams obviously there are a lot of these and you want to steer clear of those all right so what is tokenomics tokenomics obviously is a mix of tokens and economics we can look at the value

Of a cryptocurrency the supply of it which is super important if it has an unlimited supply is that going to affect the investment over the long term if it has a very limited supply then if a lot of people want to buy it the price might

Rock it up the volume in terms of the trade daily weekly monthly how much is the project worth so each cryptocurrency is a piece of a wider investment so bitcoin has a certain amount of coins and you add all those up and then that gives you the market cap also who holds

That crypto that’s also super important because cryptos are really here for investors to invest but also for projects and companies to raise money who’s invested in it that’s obviously important to know burning tokens is also super important if a company burns tokens it literally takes them out of

Circulation and if you have the same demand and fewer coins then the price should appreciate and then we come to one of the main reasons of a cryptocurrency especially these days is icos and ido’s or basically initial coin offerings initial dex offerings essentially just a way for the project

To issue cryptocurrencies to earn money and investments so they can build their project let’s go over to coingecko.com which is a very popular site uh for the cryptocurrency space and we can do some really easy to economics right now let’s look at bitcoin here’s the price 55 290

Right now so cryptocurrencies are valued in dollars because everyone knows what dollars are and they can easily compare it to other investments it’s the world’s reserve currency everything is valued in dollars so it makes sense so this is the price of one cryptocurrency right here

Then we have the one hour 24 hour and seven day change in terms of the percentage price changes 24 hour volume this is all of the trading volume in bitcoin over the last day made up of all the different exchanges that do trade bitcoin it’s given as a us dollar value

So 72 billion dollars worth of bitcoin was traded over the last 24 hours then we have the market capitalization which is a very easy calculation to do you take the price of each coin and you times it by the amount of coins in existence and that gives you the total

Value of those coins in the case of bitcoin this is a trillion dollars more or less let’s click into bitcoin and we can do some more tokenomics we can come and have a look at the market cap rank super important we can also go and look

At the website if you want to know more about the project every site will have docs and you can go and read those also on the right hand side you have the tokenomics again and really important when looking at cryptocurrencies is the circulating supply and the max supply so

Right now we can see that bitcoin is nearing the limit of its supply once there are 21 million coins that have been made that’s it there will be no more and so we’re getting very close to that it’s going to be a good few years for making this video until we reach

That supply cap but one of the main reasons that bitcoin is where it is is because of a limited supply and a high demand meaning a high price that is really very basic tokenomics though so you can really quickly compare projects very quickly but if you want to

Go deep then you have to go to the projects website and have a look at their docs so you can see all this information can be found in the project docs that will be on the project’s website as an example solana right here we can see the token supply distribution

This means we can see who is holding it seed sale 16 founding sale 13 so founding sale is very early investors if this is very high are those founding investors going to sell out and the price goes up maybe they’ll lock in some profits so when are

They actually going to sell a lot of the time founders will actually have a time limit so maybe they’ll have to hold on for two years but once that expires are they gonna dump all their coins on the market that could obviously put pressure on the price so it’s very good to know

These things you also have how much the team has so the team itself that developed it has 13 and then the community has 40 so you can compare these distributions from one project to the next let’s recap unit one though cryptos are tokenized assets that’s all they are they represent value

And they are a digital representation of that there are many types of blockchain and tokens for different use nfts are unique and not fungible cryptos are fungible each and every token each and every project is very different the tokenomics are different so we have to know them before we start getting

Invested before we get into unit 2 here are the best crypto news sites and info sites and how to do your own research i’ve listed them here you can go and look at them i think these are really great and full of information and will definitely give you a lot of very good

Knowledge about cryptocurrencies let’s get into the basics of trading cryptos then and if you’re getting value this far make sure you are subscribed and also like this video but i’m gonna go through what a currency pair is so when we’re trading cryptos we have to

Trade in a currency pair also what is a stable coin super important for beginners to really understand what these are a base versus a quote currency really important when you’re trading and then trading currency pairs in general okay so what is a currency pair when you trade cryptocurrencies when you trade

Currencies in general when you trade forex you have to trade in a pair if you want to buy something you of course have to sell something in return now when you go into a shop you’ve got all the prices there already and the thing you’re giving the shopkeeper is a fiat currency

Usually let’s say us dollars when you’re buying a currency though you have to give them a different currency it’s exactly like swapping your money at a money exchange when you’re on holiday so we are exchanging two currencies and this is how you will see them right here

So we’ve got btc slash usdt what does that mean well each crypto has a ticker so btc is bitcoin and then slash usdt usdt is called us dollar tether it’s a very popular cryptocurrency and a very useful crypto i’ll get into what a stable coin is and us dollar tether in a

Second this is how we read a currency pair you have btc against us dollar tether eth is ethereum so ethereum against us dollar tether so you know this trading pair is ethereum and u.s dollar tether and then you have other currency pairs like bitcoin ethereum so

If you just want to trade them directly you can trade bitcoin and ethereum this is how it will look we need to get into stable coins though because these are the entry into the crypto space and also used to trade against every other crypto so a stable coin is a crypto version of

A fiat currency it is always a crypto version of a real asset so it doesn’t have to be a fiat currency there are other stable coins that are backed by other very stable real assets maybe like gold but it is definitely backed by a real world asset and that’s why it’s

Called stable coin its price is pegged to that real world asset so let’s take us dollar tether which is right here also us dollar coin which is this one and then binance us dollar all three of these are pegged to the us dollar meaning their value is the exact same

Value of the us dollar they do this through various different mechanisms but you know that if you are holding binance us dollar usdt or usdc right here that that will be worth one us dollar from now going forward so it’s a really important asset for a lot of people if

You want to come out of a cryptocurrency you think it’s too risky you can come actually into a very solid real world asset without having to take your money out and you just put that in the stablecoin so now we know that we trade currency pairs we can look at the base

Versus the quote currency so this is really important to know when you are trading here is how it will look the base currency is the main currency that you’re buying so if you want to go ahead and trade bitcoin you can see down here that bitcoin will be on the left hand

Side that’s the base currency the quote currency is the currency that you’re selling or using to buy the base currency so the base currency you are using in this case we can see btc it’s definitely bitcoin and the quote currency tells us how much we need to

Buy one unit of the base currency and i’ll show you the quote right here so we’ve got bitcoin that’s btc so we know that that is the currency that we’re trading we can look at the quote currency which is us dollar tether so that is the quote we then have 50 000.

What does that mean it tells us that it takes 50 000 usdt which is the quote currency to buy one btc which is the base currency this will obviously change depending on the exchange rate between the two currencies once more we have btc against us dollar tether now at 55 000

So it now takes more us dollar tether to buy one bitcoin this can also be shown to you in a percentage move on a day you’ll see this a lot of times let’s go back to coingecko right here and we can come up go back to the home page you can

See this right here you’ll get a percentage change on the day and this is a percentage change against us dollar teva so we’ll go back to our quotes and we can see that bitcoin has appreciated against the u.s dollar by five percent today this percentage move will always

Be how the base currency is valued so it takes more us dollar tether now to buy bitcoin because bitcoin has appreciated five percent against the quote currency also really important to know when you’re trading is that not every currency pair is supported so let’s say you have a really small altcoin that’s

Like a micro cap it’s not going to be traded against bitcoin directly so i’ve got an example here of mana which is the central land it is an altcoin against cardano which is another altcoin it doesn’t have a market at least on binance so if you want to sell one for

The other you just can’t do it you’re going to have to first trade mana into us tether and then trade ada against u.s dollar tether so you have to use a third currency to actually trade that this is sometimes known as a cross trade where you use a third large currency to trade

Two smaller currencies that don’t have a direct exchange this is why stable coins and us dollar tether in particular are so important they really do help liquidity in cryptocurrencies all of the big cryptocurrencies though do have direct trading pairs and this is how you can trade one currency against another so i

Have an example here let’s say you took a thousand dollars and you invested 500 each 500 in bitcoin and 500 in ethereum they’re the top two cryptos and they both go up in value both have gone up so we’re super happy but you can see here bitcoin actually went up 20

So our 500 times 1.2 is 600 ethereum though only went up 10 so 500 this four is supposed to be a dollar five hundred dollars times 1.1 is 550 now if you would have just put all of that money in bitcoin you would have made twelve hundred dollars because you

Would have gone up twenty percent a thousand dollars in bitcoin and ethereum you only made 150 so actually you would have been better to just put all of your money in bitcoin and none of it in ethereum bitcoin went up more than ethereum and so you can see investing becomes pretty complex and

We’re not going to go into diversification here and the benefits that that gives you they might go up and down at different times and they might have different investors and so diversification is very key in my opinion but just to show you how actually trading in one or a different

Cryptocurrency can definitely change your investment outlook this is what we call currency pair trading which one of these cryptos do you think will outperform the other crypto you can actually bet on one crypto versus another this is not just an investment in one coin but you can think well which

One of bitcoin or ethereum over the next six months is going to outperform then you want to put all your money in that coin if you’ve done research and you think ethereum is going to outperform bitcoin over the next six months then what’s the point of being in bitcoin put

All of your money in ethereum and it will outperform you will get a higher rate of return when you buy cryptos with fiat currencies so if you’ve got us dollar or pound sterling and you’re just putting money in then you are actually betting against those currencies pound

Sterling and us dollar if you’re selling those to buy cryptos you’re betting against fiat currencies and you’re placing your bets into cryptocurrencies that’s what you’re doing whenever you sell a crypto to buy one other then you’re actually betting against the one you’re selling this is the most basic

Strategy when it comes to uh currency investing and with cryptos the currency you’re selling you’re betting against and the currency you’re buying you are thinking that that one will at least outperform the one that you’re selling so let’s just recap on unit two then currencies only trade in pairs you need

To sell one to buy another stable coins are absolutely vital for the cryptocurrency industry and for trading we can analyze the quote and base currency to tell us more about how that currency pair in particular is trading and you can bet on one currency versus another unit 3 is the best crypto trading

Platforms really important that you know the difference between them the pros and cons of each if you are getting value out the video make sure you are subscribed if you aren’t already also everything in this video is listed in the description for you so everything you need will be in there definitely

Check it out what are the best trading platforms what are the best trading apps what do they offer us and what are the fees of each let’s start with etoro i’ve used etoro before now etoro offers many different things not just crypto trading you can trade stocks you can trade cfds

You can trade commodities and they have something that etoro called copy trading which is where you can essentially invest in someone else and you can copy their trades that might be something that you want it is definitely the best all-in-one solution in my opinion you don’t have any trading fees here but

They take some money out of the spread i’ll explain what the spread is later on in the video but you should be paying maybe 0.25 or 0.3 something like that depending on how big the spread is you can even be paying as low as 0.1 so i think overall their fees are competitive

You won’t be paying any fees on top they’ll take those out when you trade and you can do staking on etoro etoro also has etoro x and etoro wallet they are specific crypto trading platforms and they are very good in my opinion you do need kyc though so you’re gonna have

To give them your id documents to go and trade with etoro overall though a very good system we also have kraken which is a dedicated crypto exchange you have kraken and kraken pro in my opinion kraken pro is really great for pros a lot of information there pretty much

Everything i would want when trading you get some good staking products not support for every crypto when staking but the ones they do support have very good rates of return they have very decent coin support overall if you’re in america you might want to check this one

Out the fees are very low 0.26 or below depending how much you trade you do need to give them your id documents coming onto crypto.com this one is a little bit different they focus more on their smartphone application which i think is very good they want you to use crypto to

Buy and sell things so they actually give credit cards as well if you have a lot of cryptocurrency you’ll get super good rates on credit cards cash back on purchases so it actually lets you try and spend your cryptos in the real world which is definitely something the other

Exchanges don’t do it is very cro focused cro is crypto.com cryptocurrency you need to hold a lot of that on account you get huge discounts off your fees and you get a lot of bonuses as well definitely good for some people this one we also have coinbase which is

A dedicated crypto exchange they’ll be making their product offering bigger as time goes on though you have coinbase which is the easy option on your phone and then you have coinbase pro as well which is slightly more advanced however saying that this is for beginners only

You have very poor support when it comes to staking you also have very poor coin support overall and the fees are astronomical you’ll be paying two to three percent on coinbase and on coinbase pro half percent which isn’t that great coinbase for me is for first

Timers if you want to buy bitcoin and ethereum with a fiat currency then just use coinbase but if you want to do anything more than that i would suggest other platforms we also have kucoin which is one that i really like as a platform it’s a dedicated crypto

Exchange it is an alt exchange so if you can’t find an altcoin on another exchange you might want to look at coin the thing with kucoin it’s not that beginner friendly it’s not great at actually using fiat currencies like us dollar to go ahead and buy a cryptocurrency and you can’t withdraw

Fiat currencies from the system into your bank it’s just not something they support this is a crypto exchange and so it has extremely low fees but you do need to be an intermediate to advanced user and have other exchanges as well that you can actually transfer the

Cryptos back to if you want to take some money off the table there’s no kyc on kucoin you can set up an account and start trading with cryptos you don’t need kyc huge benefit of this exchange and if you are a us citizen and you’re banned from other exchanges you might

Want to have a look at kucoin binance though is really the king of crypto exchanges i would recommend every crypto trader to have binance they’re just simply the biggest and baddest crypto exchange they have a vast amount of products you have trading you have a decentralized exchange you have

Derivatives on here as well pretty much everything that you could ever want binance has it has amazing staking support as well for coins has amazing coin support has the lowest fees i’ve seen at 0.075 it has the highest liquidity as well that’s for binance finance us is a little bit different the

Product offering is different and you don’t have as many coins if you’re in the us you’re just going to have to deal with that but binance is the number one pick for me i would suggest that you go with binance at least having that as an account with some others as well here

Are my thoughts on exchanges so you can go and have a look at them all of these exchanges are listed in the description you can go and have a look and see which one is best for you i think all of these are great for different people so let’s

Recap unit three just pick the best platform for you if you want to actually trade cryptos don’t use coinbase it’s just not that great for that later on in the video i’m going to get really specific with technical analysis and how to input trades coinbase isn’t going to

Help you with that i would suggest binance kucoin or kraken if you want the pro tools unit 4 is centralized versus decentralized exchanges and you may have heard of both of these what are the pros and cons of both should you use a decentralized exchange what are the

Benefits of dexes what are liquidity pools and which one should you choose let’s get into what is a dex well a dex is a decentralized exchange meaning that it’s essentially just a bit of code and that’s it when you have a centralized exchange then that is actually a company

That provides exchange services and liquidity it provides you all the systems for people to go and trade with each other a decentralized exchange is just a bit of code on a blockchain it has no central operator and you’re on your own 100 on a decentralized exchange you don’t

Actually trade with someone else but you swap tokens it’s a really different type of trading but you do have very low fees you can see you can pay around 0.05 percent so the fees are very low and that’s because it’s literally just a computer program so i’ve got two

Examples here you can see uni swap up here and you can see pancake swap here essentially doing the same thing but they’re on different blockchains uni swap is on ethereum pancake swap is on binance smart chain swapping is super different to trading i’ll get on to that

In a second but essentially when you swap you’re just using the blockchain and the decentralized exchange to go into an existing pool of assets and use your currencies to swap for the currencies inside the pool very different from a centralized trading exchange where the exchange actually just matches buyer and seller directly

And you trade together one of the biggest decks is though and the biggest blockchains for dex is well you have ethereum which is a smart contracts blockchain you need a smart contract blockchain for a decentralized exchange and swapping because you need smart contracts in there so ethereum has

Uniswap by far the biggest finance smart chain has pancake swap by far the biggest on finance smart chain then you have solana cardinal and polka dot they have some dexes growing on there a lot smaller than ethereum based dexes though what are swaps then you can see right

Here this is a swap you can swap one token for another in a completely decentralized way the fees are way way lower so that’s definitely an advantage of a dex you have to use a crypto wallet though this is not a company that is providing you a service it’s simply a

Computer protocol and you need a crypto wallet and coins in a wallet to actually go ahead and swap and the way that you swap is through a liquidity pool so people put all of their coins in and then you can swap in and out of that

Pool this is pancake swap right here so you can see i’m actually exchanging binance coin into cake tokens and i’m using a liquidity pool to do that liquidity pool is a massive collection of tokens so you have other people and these are called lps or liquidity providers and they provide their tokens

Or just literally give their tokens into the pool to provide liquidity for other people that want to swap the reason they do that is because they earn fees liquidity providers or lps earn trading fees and this is great so you can actually earn fees yourself if you have

Some coins you can put them in the pool and you can earn some exchange fees which is really great most liquidity pools will use an automated market maker system or an amm back in the day in the stock market market makers were actual people who did all that thing with their

Hands and bought and sold and actually facilitated trade between a buyer and a seller to big organizations now that is done on the blockchain by a computer system the amm will match a buyer and seller and will get a decent price for them both with the swap what are the

Pros and cons of this well dexes are really decentralized so no one owns them also they’re very low cost you have massive access to really small alt coins which you may want to go ahead and trade they also offer staking and rewards so like i said put your coins in a

Liquidity pool and you’ll earn trading fees that is a way to increase the income that you get from your cryptos there are also staking rewards as well to increase liquidity so you get paid for that you earn commission instead of paying it obviously you pay it when you

Trade there are security concerns for dexes though a lot of security concerns especially smaller dexes there have been a lot of rug pools millions of dollars stolen so that’s definitely a downside of the dex you might just want to stick to the top one or two dexes and they are

Way too slow for day trading we cannot use a decks for day trading we get no charts we get no order book we get no technical analysis and they require a cryptocurrency wallet to go ahead and use them here is the pros and cons of a dex versus a centralized exchange you

Can read these but essentially a dex is very very low cost you get access to small coins you get yield farming so you can actually earn more you can earn commission by putting your coins in but it is very blockchain and very crypto a centralized exchange is just like

Trading on the stock market or anything else you have an actual company who is there providing you a product you get ultra fast trading you get all the pro trading tools you get great charts you get a lot of liquidity which is super important when you’re trading a lot of

Money there are some downsides but centralized exchanges are an absolute must if you are a trader so what’s the recap dexes offer swaps and yield farming that’s the positive they only run on smart contract blockchains they have pros and cons in terms of they’re slow and they’re also not great for day

Trading and they also have security concerns if you go for the less well-known dexes we’re gonna have to use a centralized exchange to day trade and swing trade our cryptocurrencies unit five and we’re getting into the good stuff if you haven’t done already check the description for everything i’m

Mentioning in this video do like the video and subscribe if you haven’t done already crypto trading strategies this is what you want to know so what are trading strategies what are the best trading strategies what type of investor are you are you short medium or long

Term or are you a mix of these and what is dollar cost averaging super important to know now this links with unit eight everything i’m going to talk about from now on is really a build up to the end of the video where we’re going to be

Trading we’re going to be going through trades but you have to know everything first to build up to what we’re actually going to do you need to know the basics so we’re going to get into it right now first i’m going to come on to swing

Trading super popular a lot of people do this with stocks forex and cryptocurrencies swing trading is short and medium term only this isn’t a long term strategy you open trades for maybe a couple of days maybe a couple of weeks but with swing trading you’re looking maybe a few days

Maybe a couple of weeks depending on the trade you use both technical and fundamental analysis for your trading but we certainly rely on technical analysis for when we’re getting in and out of our trades and what you want to do with swing trading is just capture a

Percentage of a price move so you want to anticipate a move in the price either up or down and then place your trade so that you get at least a percentage of that and make your money one of the benefits of swing trading is that it

Requires less time you don’t need to be researching you can use some technical analysis here to just get right in and start trading you can definitely make some short-term profits and with swing trading what i’d be using is the one-day chart if that doesn’t make sense it will

Do it later on in the video we’re going to be using a one-day chart for swing trading downsides of swing trading could miss out on the longer term trends you know if you just invested in bitcoin five years ago you’d be up a lot now and you wouldn’t have had to have done

Anything with swing trading so that’s definitely a downside of swing trading and with swing trading you can be stopped out a lot with short-term movements so you actually may be right about a trade but in the short term the price could just move up in the wrong

Direction stop you out of the trade so you make a loss but you’re right about the trade so that’s just part of trading one of the downsides of swing trading thanks to investopedia for this image though i’m going to use this to describe what swing trading is now we can see we

Can use a chart we can use some analysis and some chart patterns to go ahead and swing trade if you think this looks crazy i’m going to explain exactly how to do it later on in the video we can see a small cup and handle pattern right

Here and we also have a consolidation period right here these things are what swing traders use to trade you can get into a trade around here you can ride that that is a swing and then you can put some stop losses in place and basically get out so a swing in the

Market you’ve taken a percentage of that move and then got out of your trade and made your money i’m going to be showing you swing trading and also breakout trading later on in the video what is breakout trading breakout trading is slightly shorter term than swing trading

But it can be for the same amount of time it really depends on you as a trader you open trades for maybe even a few hours to a couple of days and you mainly use technical analysis but you need also to know what’s going on in the

Markets and what types of news may move the markets as well we can use specific chart setups for this and i’m going to show you exactly how i trade and how you would go ahead and do a breakout trade later on in the video we want to capture

A breakout in the price now what is a breakout well there are specific things we look for that show us whether there is going to be a breakout or not and that’s how you trade it requires way less time because you’re really just looking at potential breakouts and

You’re putting your trades in definitely short-term profits with this one we can use either the one-day chart or maybe the eight-hour or four-hour chart depending on who you are as a trader you could miss out on longer term profits once more and again short-term swings can

Stop you out of your trades making a losing trade but it may actually go in that direction that happens quite a lot with breakout trading so something to be aware of thanks again to investopedia for this one but this is essentially a breakout so what happens is trade in an

Asset let’s call it bitcoin we’ll actually uh go and consolidate like this and we use these lines and i’ll talk about that later this is actually what we call a wedge pattern and it is possibly going to have a breakout from that pattern eventually so this is what

Breakout trading is trying to spot areas of consolidation that could then lead into a breakout place your trade get that move and the volatility in the price and maybe take advantage of it we can see right here this is the area of consolidation that we want to look for

Breakout traders will look for this to place their trades and essentially try and make some money when the price breaks out of that bracket another strategy is called scalping ultra short term i’m talking intraday trades you may be looking at a five minute chart trading 10 20 30 times a

Day even there are computer systems that scalp as well you may open trades for a few minutes to a few hours certainly not overnight and not a few days only rely on technical analysis and nothing else you trade off tiny movements in the price now this requires a lot of time a

Lot of effort you have to be watching the screen at all times but you get hundreds of trading opportunities per day definitely so if you want to trade a lot look at scalping there are a lot of opportunities to trade with scalping that long-term investing just doesn’t give you essentially what you’re doing

With scalping is actually trying to trade off other people’s orders if a huge buyer comes into the market over a very short period of time the price may move up a tiny amount let’s say a quarter of a percent in forex it’s going to be much smaller but in

Cryptocurrencies it might be a quarter of a percent maybe 0.1 as a scalper you’re trying to anticipate that get in off the back of their order and try and basically buy some crypto before they finish their buy and then sell it to them as well it definitely requires more funds it’s very difficult

And time consuming to implement but this is what a scalping setup would look like i have a 5 day and 8 day and a 13 day moving average on here and you can see all of these swings so we have one swing right here now remember this is intraday

This is a 15 minute chart so every candlestick right here is 15 minutes if you don’t know what candlesticks are if you don’t know what this chart is don’t worry all of this is going to be explained as we go through the video you can see though this is an area where we

Could trade we could try and ride this up and then sell up here we can also ride this movement as well now these lines here are a very simple way to try and anticipate movements in the price we also have a movement of the price here

And we also have a movement of the price here these are ultra short-term intraday price movements that a trader can take advantage of and you can just make your profits like this now one of the downsides is that it can move against you very quickly but that is scalping

Then we come on to a completely different strategy called dollar cost averaging this is not a day trading strategy it’s not a short-term strategy it’s a long-term investment strategy now you are purely price agnostic this means you don’t care what the price is you don’t care how the price is moving short

Term just put in money at regular intervals you really trade off fundamental analysis essentially meaning go and research a project go and look at the tokenomics and look at the fundamentals is it a good project does it have good people does it have a good future

Yes it does i want to invest in that project over the long term this is investment not trading and you don’t have to deal with fomo or fear of missing out because you’re in for the long term it actually requires little time really what you have to do is

Research a cryptocurrency or other cryptocurrencies that you want to invest in once you’ve done that all you have to do is just go and set up your dollar cost averaging setup and it’s really simple you don’t have to trade the markets not interested in the short term

Whatsoever and it relies on the premise that markets go up over time low cost low that should be a w low cost low stress one of the big benefits of dollar cost averaging is the mentality of it you don’t have to worry about missing out you don’t have to worry about buying

In dips you’re just going to drip feed investments over the long term mathematically speaking there is no mathematical advantage to dollar cost averaging compared to lump sum investing however that’s not really the whole story so i’m going to show you some differences here and of course if you

Dollar cost average and you build up large positions in cryptocurrencies you could face significant losses if you go heavy into a crypto over the long term and you’re not keeping up with the crypto and the fundamental analysis that price could drop a lot and then you’re in a loss because you’re not trading

Daily you can’t really save that loss because you’re not looking at the markets as a daily trader but here is what dollar cost averaging would look like all you do is choose how much you want to invest and then you split that up over a time scale so i’ve just done

It once a month here so let’s say you’ve got two and a half thousand dollars to invest in bitcoin so you start in may now rather than putting two and a half thousand dollars in you put five hundred dollars in the price of bitcoin in may is forty nine thousand so you’ve got

Five hundred dollars worth of bitcoin and each bitcoin was worth forty nine thousand dollars now in june you had another 500 july august september you add 500 each month we can see the price of bitcoin each month changes 49 here a little bit more expensive more expensive

Then a bit cheaper and then a little bit more expensive what’s great about dollar cost averaging is that you can not worry about getting in at the wrong time you can just buy some at cheaper prices buy some at more expensive prices but it doesn’t matter because your average price is decent

This is how dca or dollar cost averaging compared to lump sum though let’s say our dollar cost averaged into bitcoin over five months my investment overall two and a half thousand dollars would buy me 0.05 of a bitcoin now in september that would be hundred and worth dollars i’ve definitely made some profit

Here because the bitcoin price has gone up for me and i bought some cheaper i bought some at 49 i bought some at 49.8 it’s all under this so i’m up on my trade if you would have just gone ahead though and invested in may lump sum two

And a half thousand in may then you would have actually got a much better price because the price of bitcoin has gone up you would have actually bought 0.051 so you would have got slightly more bitcoin in may because you were investing more money at the lower price

And so actually the lump sum would have made you more money by september lump sums beaten out dca in this occasion but let’s say you put two and a half thousand in in july when the price is very high well you put two and a half thousand dollars in at a really high

Price 50 100 and so you just didn’t get as many bitcoin you actually got .049 bitcoin and the price now in september you’re only making four bucks profit on that trade so this can basically show you the difference with dollar cost averaging versus lump sum if you get in early and

At a low price lump sum is better but if you haven’t dollar cost average is great and if you don’t have a lump sum to invest right now if you’re a young guy who just wants to build up and accumulate then dollar cost averaging for an investment really is the only way

To go so let’s recap training strategies you can trade short term and you trade off short-term price movements it requires skill and knowledge short-term trading is a full-time job i did it as a full-time job so i know it takes a lot of time a lot of effort and you have to

Look at the market all day long you can be a long-time investor which is a completely different strategy you can use dca but these are not exclusive of each other you can dollar cost average and also have some money aside for the short term to take advantage of

Short-term opportunities also see unit 8 for this we’re going to be getting into some really specific details of technical analysis so this very simple and basic overview is going to stand you in good stead for the more complex stuff in unit 8. so if you haven’t done already make sure

To subscribe to the channel also check the description for everything i’m talking about in this video tons more information and resources in the video description let’s get on to order types what is an order book what is the bid offer or if you’re american it’s called

The bid ask what is the spread and why is it important and how do we use market limit and stop orders to actually go ahead and trade we’re gonna get into all of that right now so let’s look at the order book and this is something that

Beginners will look at and just think no i’m not not interested in this i’m gonna use the easy convert feature i don’t want to see this it’s too complex but let’s break it down piece by piece and actually see what’s going on here so this is the order book or very simply

Just the open market in a cryptocurrency pair this currency pair that the order book comes from is bitcoin against us dollar tether so what we can see here essentially is buyers and sellers and they’re opening their orders to us we can see their orders or at least we can

See the orders that they want to make public when it comes to trading there are a lot of orders that aren’t public when i used to trade we used to get really big orders and then actually only show some of that order to the market you don’t want to open your hand you

Don’t want to tell everyone that you’ve got like 10 billion dollars worth of stock to sell because obviously the market is going to go down because they know you’re a seller they’re not going to pay up so you only show a small amount of your trade now for small

Retail investors if you’re trading a thousand bucks 100 bucks 20 000 bucks it’s not going to matter however knowing what the order book is and looking at orders is super important so this is really how it works these are sellers right here you can see all these

Red orders right here these are sellers these are people and traders in the market that have gone out and told everyone else hey i’m a seller and this is my price and this is how much i want to sell conversely on the bottom end in green these are buyers these are people that

Are out there saying i want to buy bitcoin and i’m willing to pay this amount for an amount of bitcoin that’s all an order book is it’s a group of sellers at high prices and buyers at low prices why well sellers want to sell for the highest price possible obviously and

Buyers want to buy for the lowest price possible when sellers and buyers are very far away from each other you can see they’re physically far away from each other right here they’re just not going to trade and so their order stays on the system and it’s not traded when a

Buyer and seller meet at a price then they will trade here is the best bid this means this is the highest bidder so the person who is willing to pay the most for bitcoin obviously is the one that buys it before everyone else and we can see that the best buyer right here

Is willing to pay fifty eight thousand five hundred and forty eight point six eight us dollars per bitcoin now when you’re broking or trading you don’t wanna keep quoting the whole price all the time because it would be ridiculous you have people ringing you up all day

Saying what’s the price you don’t want to say hey it’s 58 548 so what we do just take the last four digits and we’ll say that the price is 48.68 okay so the trader will know okay so it’s trading at 58.5 48.68 now with cryptocurrencies it’s a little bit different because the

Actual the big number can change a lot i mean it can change five ten percent in a day so this might go to 59 it might go to 58.6 so it’s a little bit more difficult with cryptos but for this example i’ll say the best beard is 48.68

The next bit down is 48.64 and then the next bit down is 45.85 these other bids have got no chance of trading right now unless the market moves on the other side this is the best offer of cryptocurrency or the lowest seller he’s trading at 48.69

So we have the best bidder 4868 and the best seller 4869. how do we know what price bitcoin is right now well it takes the last trade the last trade you can see in the middle here 48.69 so actually the last trade was a buyer who paid for this seller’s bitcoin

Right here at 48.69 that is the last trade on the ticker 48.69 if you want to know what these are we’ve got the price of bitcoin valued in us dollar tether right here you can see price usdt this is the amount of bitcoin so what this is

Is saying on this order book at this price at 48.69 i’ve got sellers of 1.43 bitcoin so 1.43 bitcoin is on offer is on sale at 48.69 and you can see the total value in us dollar tether 83 757 bucks so that’s it that is all that

Information is it’s prices and levels of buyers and sellers let’s get on to the spread then the spread is the difference between the best bid and the best offer we know what the best bid is it’s 48.68 we know what the best offer is it’s 48.69 spread is the difference between the

Highest bid and the lowest offer spreads are really important when trading traders want the lowest spreads possible because once you buy something on the offer then obviously you’re going to be in a loss straight away if i buy at 48.69 and i sell straight away i can

Take 48.68 so i’m actually going to lose that 0.01 straight away it prevents people from making free money when you’re a trader though you want a very tight spread this spread in particular is as tight as it gets 68 to 69 there’s nothing in there so very very tight

Spread for bitcoin on this day tight spreads are good for traders we want tight spreads we want a tight market liquid market very tight spreads it means that we can trade often and not have to worry about the price moving a long way to actually make up the spread

Let’s say the spread was a 10 difference if you bought on the offer the price would have to move up 10 just for you to break even so a tight spread is favored by traders overall let’s get on to a market order then what is a market order if you want to buy

Some bitcoin then we can go ahead and place a market order a market order is when you choose the amount that you trade the amount of bitcoin that you want to buy but you do not choose the price that you pay you have no say whatsoever and how

Much you are paying so where are we going to buy one bitcoin if we want to buy a bitcoin and we’re having a market order so we know we want to buy one bitcoin but we can’t choose the price that we pay then what do we have to pay

Where are we going to pay it’s here of course these are sellers telling us that they want to sell bitcoin at 48.69 and they have 1.43 bitcoin on sale if we’re buying one bitcoin we can go to them and buy their bitcoin at 48.69 everyone’s happy you’ve got your bitcoin

The sellers have told you their price and you’ve taken it there’s a few downsides to market orders though firstly the pros you can trade quickly there’s a seller right there telling you hey i’ve got bitcoin to sell you want to buy it here’s the price you can buy it

Straight away it’s easy to use it’s the easiest order type you can very simply put in a market order but the downside is that you can easily pay too much for your crypto maybe you want to buy bitcoin but maybe you’re going to wait a little bit for a seller to come in

Because you actually might want to buy it a little bit cheaper well you can’t do that with a market order and you’re always on the wrong side of the spread we know what the spread is now if you’re buying with a market order you’re always going to be paying up for other people’s

Offers and this is obviously higher than these bidders right here this is the best bid he’s paying a little bit less if sellers come in but as a buyer you’re paying here you’re paying a little bit more for your bitcoin let’s see the order book live then and

Let’s see how we put a market order on this is the live trading screen for bitcoin us dollar we can see the base currency and the quote currency right here we can see the difference in the prices and all the movements we can see the chart right here and we can see the

Order book the order book right now is going crazy this is how all the books look the market and the prices are changing all of the time let’s put in a market order we can come up and we are a buyer of bitcoin remember that means we

Have to sell us dollar tether let’s go to a market order right here and you’ll see the price cannot choose it just says market whatever the price is on this order book at the time that we pressed by that is the order we are getting but we can choose the amount of bitcoin

Let’s buy 0.05 of a bitcoin and you can see we can just press buy here we cannot choose the price we don’t know what we’re getting but we know it’s going to be roughly 55 362 looks to be going around 62 12 62 13 62 10 right now so

You can be pretty sure as long as you’re not buying too much you’ll get that trade but what happens look it’s now 85 so if you just press this at the wrong time could actually get kind of a bad trade so that’s the downside of a market

Order but very simply buy market amount press buy and you’re done let’s come to limit orders then choosing the amount we trade and the price that we trade at huge advantage here remember where are we going to buy one bitcoin we are a buyer now and we’re going to

Choose the price that we pay where are we going to put that order right here we’re a buyer we can put the order in as a bidder as a buyer and lower price so instead of paying other people’s prices we now choose the price

That we pay and we can put it at a lower price than these sellers what we’re essentially saying is i don’t want to pay your price i’m gonna wait for sellers to come in so that i get a better deal for my bitcoin what are the

Pros and cons of limit orders well we can choose our price we can join the best bidder or even we can just come somewhere down here and just say you know what i’m gonna wait for the market to jump around i think i can get some

Cheaper bitcoin so i’m going to pay 4092 instead of 48.68 the thing is though we can’t guarantee that we trade we don’t know if sellers are going to come in we don’t know if we’re going to get any bitcoin we have to wait for sellers to

Come in and agree to sell us bitcoin at our price so that is a downside you’re not guaranteed to trade however with limit orders you’re usually known as something called a maker and so you may benefit from very slightly lower fees overall which is definitely a positive

But you can see we’re not buying straight away and paying this we’re putting an order in down around this level let’s come back to the binance trading page and put in a limit order so we’re a buyer we’re going to go to limit now we can put in our price and our

Amount look we can change the price right here you can actually click on this right here let’s just click on this order you can see it changes up here so i’ll click on a bid that is a little bit below the market changes press on another one change it again really good

Little pro tip there or we can choose 55 300. 55 300 is below the current price you see it’s trading at 390 right now so we’re not going to trade immediately but our order will be placed on this order book and it will actually be way down

Here away from this order book but you can see we can choose the price that we pay we can choose the amount that we buy and then we know exactly what our order is before it goes through because the system can just times the amount by the price per bitcoin that we’re trading

Also important to note that 55 300 we always quote in one whole bitcoin or one whole asset so it’s not 55 300 for half a bitcoin it’s 55 300 for one bitcoin and then you are only trading 0.05 and so you can see it does that calculation

For you once you press buy you will not trade straight away we cannot trade straight away because our price that we want to buy at is lower than sellers are willing to trade at so what happens it comes down here it will go in your open orders you’ll see it it’s there the

System knows it’s there and if the price and sellers come in and are willing to sell at that price then you will go ahead and trade next we come to stock market orders with the stock market order you choose the amount that you trade but you don’t

Choose the price that you pay or get for cryptocurrency the price isn’t guaranteed remember the word here market is the giveaway market means we do not choose the price but with a stock market order we can actually choose the price when the order is placed in the market

So it’s a slightly different way now some strategies will need this order for maybe their stop losses or maybe to buy on breakouts so you can see it’s good for fast trading and it gives you a slightly different way of trading so with a stock market order you’re telling

The system that if the price gets to a certain level enter a market order for you to either buy or sell if the price gets to 57 500 sell my bitcoin with a market order you can see the price right now is 58 209 why would you want to sell at 57 500.

Well look if the price is going down which is here you can just say look the price is going down i’m losing loads of money i need to get out of this position and stop losing more money if the price gets down to a certain level where i’m

Happy to take that risk if it actually gets down there then put a market order in and sell my bitcoin straight away and stop any further losses you can see if the price gets down here to 57.5 the system will input for you a market order and just sell out your bitcoin using

What we know about market and limit orders a stop limit order then is an order where you can choose the amount and the price that you trade traders will use stock limit orders to add on to a winning trade a specific price level so a stop limit order can actually be

Placed in different areas and it tells the system if the price gets to a certain level then you want to go ahead and put a limit order in so again the same example let’s say the price gets down to 57 500 so we’re making a loss

You can say sell my bitcoin with a limit order not a market order remember a market order we’re not guaranteed a price we’re going to get the best price in the market at that time with a limit order we’re guaranteed to trade at 57 500 and if there is no

Liquidity at that price we may not get our whole order traded let’s come on to our stop loss order then which is just a version of a stop limit order but it stops your losses so this is important for day trading to mitigate risk you’ll hear people talking about stop loss

Orders it’s simply an order that you put in and says if the price gets to this level then sell my bitcoin with a limit order a stop loss order must be below the current price that’s why it’s called a stop loss you’re stopping further losses so if the price gets to 57 500

Sell my bitcoin with either a limit or a market order but a stop loss is saying i’m gonna stop any further losses and you can use a limit or a market doesn’t really matter but it’s the same price level people just call it a stop loss when they’re actually coming out of a

Trade for a loss it’s important to know though because when you’re mitigating your risk when trading we’ll always use something called a stop loss as a backup to know how much our position at risk is conversely a take profit order is a stop limit order but that makes you money so

We can trade a position in profit and this is really important for day trading to automate our trading again when we’re putting in orders later on in the video we’re going to be using a stop loss and a take profit they’re both the same order they’re a stop market order we

Just call them different things when we’re talking about losses and when we’re talking about gains if the price gets you 65 000 sell my bitcoin with a market or a limit order and you can see it will come up right here this is known as a take profit because we’re actually

Getting out of the trade with a profit to show you how to input stop limit orders or stock market orders let’s come back to binance it’s just over here stop limit we can come in now stop and limit stop is the price that you want to tell

The system to trade at so let’s say we want to take some profits at a higher price the current price of bitcoin is to 60. so we’re going to say at 59 000 i want to enter an order and my limit price is 59 000. what you’re

Telling the system is when the price of bitcoin gets to 59 enter a limit order for me and i’m only willing to sell at 59 so 58 999 not going to sell any bitcoin i’m actually a buyer right here just going to switch over to sell to make it easier for you

So stop limit 50 900 and my limit order is 59.000 when the price gets to 59 put in a limit order for me at 59. now what you can also do is put your limit in at 58. so what you’re saying is when the price gets to 59 basically just dump my

Bitcoin and i’m willing to take 58 so you’re probably gonna just deal straight away unless you’re dealing trillions of dollars worth but that is a way to put in a uh actually a take profit order in this case the price is above now if you

Wanted to put in a stop loss what you would do is say if the price gets to 48 000 that is way below the current price please put in a limit order for me at 48 000. you can also change this maybe your limit is 47

000 maybe your limit is 50 000. now if the order is 50 000 then obviously you’re not going to trade if the price is at 48 and you want to sell at 50 then you’re not going to be trading but that limit order will be in there for you so

You can play around with this stop limit order you can do it on the buy side as well just tell the system what is the trigger for the order this is the trigger price 59 000 is the trigger price this is the order 59. you can put in the amount either buy or

Sell put your take profit and your stop losses in so let’s recap unit 6 then we have many trading options you can make or take prices if you put in limit orders you make liquidity make prices you are a maker and if you enter market orders then you take liquidity from the

Book makers do get slightly lower trading fees on most trading exchanges than takers and stop orders can limit our risk and they can also trade us out in winning positions as well we can use all of these orders at different times as needed this is probably the most important unit

Of this whole course technical analysis it’s a really big unit we’re going to get into some really complex things but i’m trying to explain them as simply as possible and we’re going to take all of the information that we’ve got so far plus all of the technical analysis techniques

And then use them to go ahead and trade in unit 8. in unit 7 we’re going to be looking at chart patterns what is a trend how to spot a trend super important right support and resistance again when you’re trading you have to know these things we’re going to look at

How to use candlestick charts and indicators to time our trades all of this information is what professional traders will use every single day when they are trading in and out of an asset there’s so much information in this unit it’s all linked in the description for you you need to check the description

All of the resources that i talk about will be in there for you so you can go ahead and learn more let’s get into it what is technical analysis ta or technical analysis uses trading data to analyze and predict price patterns that’s obviously important if we can

Predict the pattern of a price we can have a higher percentage win rate for our trades it gives us data points to compare and contrast which again tries to increase our chances of winning trades we can use chart patterns price data trading volume and mathematical equations otherwise known as indicators

To furnish ourselves with more information it allows us to follow a systematic strategy that can be improved and iterated upon over time if you do not follow a consistent strategy and you’re using different strategies all the time how are you ever going to improve it it cannot predict the future though

Technical analysis cannot predict the future and it is often wrong an event will happen something will happen a politician in america will say something that the markets don’t like technical analysis goes out the window which is why some people love it and some people hate it at the very basic level though

We need to understand candlestick charts candlestick charts give us data rich trading analysis they show us time and price details that’s really important and it’s something that line charts don’t give you let’s go ahead and analyze a candlestick then what exactly is a candlestick well each candle is a

Period in time so each candle is representative and it can be anything you want it can be one minute 10 minutes one day even one week but it tells us the open close high and low for the time period of the candlestick there’s two areas to the candlestick we have the

Colored in part which is the body and then we have the lines coming up and down which are called the wick so we have the open right here this is the opening price this is where the candle starts getting colored in and then we have the closing price right here now

Obviously green for up and red for down so we know that this candlestick this period in time is a green or an upward move this is the open this is the close we know that it is an upward move because of the color of the candlestick

So we know that this is the open we then also have the high during the trading period and the low during the trading period so really important basically this is the open then what happened is that sellers came in and drove the price down all the way to here

Then in the same time period buyers came in and pushed the price all the way up to this level and then sellers came in once more and at the end of the time period that is where the price was and so that is the close it was above the

Open and so we give it a green color it’s exactly the opposite for a bearish candle we know this is the open because it’s a red candle stick so it’s colored in here the open this is the close during the time period buyers push the price up to here sellers pushed it down

To here but actually it closed around here we can use the colored in part or the body and the wick to tell us a lot about a period of time and what traders are doing you might have heard of candlestick patterns there are many patterns with candlesticks and they tell

Us something about the trade this is a hammer pattern because it looks a little bit like a hammer well this is a bullish pattern in this scenario anyway what happened essentially is that sellers pushed the price all the way down here buyers came in though pushed the price

Up and actually at the end of the session the price and the closing price was higher than the entry price or the opening price during the session sellers came in buyers pushed the price up though is this going to happen tomorrow or in the next period in the next

Candlestick it may do and if it does that means we can use this to enter into some trades where’s the high the close the open and the low this is the open of course it’s a green candlestick so we know that the start of the body is the

Lower line where is the close that is this portion it’s a green candlestick so we know that the price rose during the time whereas the low on this candlestick it’s right here and of course the high there’s no wick at the top so during this time period the higher is actually

The close how do we trade this tomorrow then well if buyers during this time period are pushing the price up that could continue into the next session maybe tomorrow if this is a five minute chart then it will be in the next five minutes and you can see that you can

Read this candlestick chart to say actually if these buyers are coming in now it may carry on into the next session i can buy and try and get a rising price shooting star this is a bearish pattern complete opposite of a hammer it’s a bearish pattern it shows you that buyers

Drove the price high during the session but sellers won and the price fell lower and closed lower will this continue tomorrow if it does then sellers are winning and they will push the price down where’s the open close high and low this is obviously the open because it’s

A red candlestick so we know the higher line is the open this is the close right here the end of the body we have the high right here of the session and we have the low is this tiny little bit here this is a bearish sign because

Buyers drove the price up sellers came in drove it right down and even lower to a red candlestick bullish engulfing pattern super important this one and we use it all the time to go into trades this is a bullish pattern it’s a bullish candlestick it shows that the bullish or

Up move actually engulfed the previous down move and this is something that traders will use all the time it represents a strong reversal in the trend for the candlestick previously let’s zoom in right on here then so what is it we can see that this is the previous candlestick a downward

Move we know it’s red so it’s down but what happened in the next candlestick is that the momentum changed significantly sellers came in and pushed the price down here not only did buyers come in and push the price up it engulfed the entire previous move to the downside

That’s very bullish it means that there’s a strong difference and a strong reversal of that trade to the upside conversely we also have a bearish engulfing when a move to the upside and a greens candlestick is completely engulfed by a red candlestick when you’re trading candlesticks always look

Out for bullish and bearish engulfings because it will represent a strong reversal in a trend and this will obviously impact the way that we trade let’s come back to the binance chart then and let’s have a look at some candlesticks now we can see this is a huge bullish engulfing right here you

Had a downtrend huge bearish engulfings right here bearish huge bearish sell-off but then this session look at this session what a great session if you’d have got him right here this is a huge bullish engulfing way way up now what you’d say is well if this session was up

Then buyers are coming in and they’re having to pay ever higher prices because there aren’t enough sellers maybe that will continue and if you’d have gone in long right here then after a couple of days of sideways trade you would have made a huge amount of money on this

Upswing bullish engulfing right here again this is a bullish engulfing it does engulf the previous candlestick so you can look for these again a huge bullish engulfing right here a big down move and then a massive up move as well so you can see these both on the bullish

And bearish sides but they do represent a strong reversal in a trend so let’s look at candlestick charts then they give us price data for a time period traders use these all the time to anticipate future moves and they show us possibly bullish and bearish ways of

Trading we can use them to anticipate and form possible entry points for our trades coming onto chart patterns then sharp patterns are used in conjunction with candlesticks they give a longer term analysis of market movements they can be bullish and bearish and they are used with day trading and swing trading and

We know what those are now this is a classic chart pattern it’s called a double top so this is a bearish pattern actually because what it shows you is that buyers keep coming in but they keep getting battered and swatted away and what that means is that sellers are

Around and the price actually may fall down buyers are unable to push the price higher so we can see the momentum of the chart right here going up we can see at this point though buyers run out of steam buyers are trying to push the price up but sellers are coming in and

The price does not move upwards right here so the price moves back down but then the price moves up again this just means that buyers are coming in again buying some cryptocurrency so we’re pushing the price up again once more sellers come in so the move is rejected

There’s obviously a lot of sellers in this market and what that could mean is that the sellers are here and the price will fall off so this is known as a double top which is a bearish pattern double bottom is the complete opposite it’s a bullish sign sellers are coming

In but the price meets support at this level sellers can’t push the price any lower because there are too many buyers buying up and so what happens is you get a small run up sellers come in once more and again at this same price buyers are

Mopping up at this price and so it can’t be pushed lower anymore and so what that may mean is that there are more buyers than sellers and so you may get an upward move in the price and this one is great ascending triangle it’s a really great setup and one you

Should watch for let’s try and analyze this one what is going to happen here this is different from the double bottom and double top as it takes place over a longer time period but you can see support right here and resistance right here you can definitely see this pattern

Playing out first thing we need to do what is the trend where is it going you can definitely see that this is an uptrend the support and the lowest price is actually increasing the highest price though is standing around this level so when the price does come up to here

Sellers come in push the price lower so we can see these moves here this is an upward move then you get the sell-off upward move then you get the sell-off upward move but what you can see is that the downward moves are moving up in price over time then we get another

Upward move here and the downward move is even smaller you can see how the price is really going into this wedge or the end of the triangle it’s telling us that the price is becoming ever more constricted buyers are not willing to pay above this price but they’re having

To buy crypto at ever higher levels they can’t get crypto down here anymore they’re having to pay around this level so you’re getting this wedge pattern and this is used with breakout trading when this happens when this consolidation happens you may just get a breakout because the supply is obviously

Constricting there are fewer and fewer sellers and so buyers have to pay ever higher prices and what might happen is just a whoosh out of the triangle a massive breakout and that’s what we want to trade charts never trade in a straight line it’s just not going to

Happen but they trend and it’s our job to try and anticipate this highs and lows are important we can see these consolidation is important consolidation of price you can see the price range is narrowing super important as a trader to try and anticipate this higher highs and higher lows is bullish i’m

Going to get on to that in a second but you have higher lows the lows are ever going higher and that is a bullish sign this is going to proceed a breakout for sure let’s get on to chart patterns though before we get on to trends chart

Patterns show us if buyers or sellers are winning we can use these to anticipate the future patterns are elusive though and very hard to spot patterns are short-term they don’t tell us about longer term trends they don’t always work either so if you’re looking at patterns that might work sometimes

But it’s very one-off trends are something that you might want to look at more trends are more easily identifiable so let’s come on to trends chart trends can help us spot a possible trade definitely we can’t trade from patterns all the time it’s just not possible but

Trends will guide us more often and if we can find not force but if we can find the trend then we can ride that trend for a profit so what we look for is consolidation of price i’ll explain that in a second higher highs higher lows that’s a trend

Lower highs lower lows that’s a trend that’s bearish means the price is selling off consolidation is key let’s come to the ascending wedge that we just saw this is a great example of higher lows let’s say this is the bitcoin chart well look here this is a low this is a

Low in the price before they move up but this is also a low it’s higher than the previous low so we call it a higher low higher low higher low higher low this is obviously an upward trend the lows are ever increasing there is less and less bitcoin around and

Buyers even at low levels have to pay ever higher prices so if this is a trend then we can expect that the trend continues and it might even break out of this trend when the supply truly dries up meaning a huge spike in the price out

Of the trend and if we can trade anywhere around here we can ride that move in a swing and make a profit the exact opposite is a lower high or a lower low so this is the sending wedge again it’s a triangle and we can see the

Descending wedge right here you have a high but then you also have a high that is lower than the previous high lower high lower high and then we have even a lower high down here these highs that we’ve spotted are going lower and lower meaning this isn’t

A downtrend sellers in the market are getting ever lower prices for their bitcoin meaning there are fewer buyers around price goes down this is a trend we can trade that trend thanks to forex trading 200.com for this little image here it just shows you exactly higher highs right here higher

Highs and higher lows this is obviously an uptrend charts do not trade in a straight line but an uptrend is higher highs and higher lows reversal in a downtrend the highs are lower and the lows are lower definitely a downtrend always trade with the trend don’t go against the trend

Especially when you’re a beginner the trend is our friend what is consolidation then because nothing just goes up and down all the time consolidation you can see right here it is just an area where the chart moves sideways and actually consolidation is something that traders will look for because consolidation sometimes precedes

A breakout here is a consolidation it’s moving up and down but it’s in a very tight range so the price isn’t actually moving up or down but every day just sort of moving around so these are consolidation periods professional traders will look at these periods to enter into some trades trying to

Anticipate consolidation uptrend and then consolidation once more consolidation is our friend like i said it gives us a strong area of trade where traders have been before it’s really important that when you’re trading you can try and find areas where a lot of trade happened before because if a lot

Of trade happened at a certain level that means there are a lot of traders with skin in the game at that price and so different orders may come in at those price levels consolidation is where buyers and sellers are at equilibrium and this can’t last forever and so you

Get breakout traders who trade consolidation hoping for that breakout let’s come to the bitcoin chart and try and see a trend on the chart so when you’re looking at the chart what are you going to try and spot this is a one day chart this is bitcoin from a while back

So we can actually see here it looks like bitcoin is in a downtrend at this point so let’s draw something on the chart right here so this is a high you can see this high and this is a low right here then coming we have another

Low and we have another high now this high is lower than the previous height then we have another low down here that low is lower than the previous low we have a high this is lower than the previous high then we have another high and another

Low sort of around the same level as the previous low but definitely these highs are coming down this is a downtrend absolutely in a downtrend right now let’s just see what happens here we can see that this would be probably a consolidation right here it seems like

The price isn’t moving as violently and there is definitely a consolidation in the price the price level isn’t changing too much you’ve got some updates some down days but nothing really too much definitely a consolidation what happens when there’s a consolidation well there could definitely be a breakout from that

Consolidation now we have to try and understand whether it’s to the upside or the downside but after a consolidation usually a breakout occurs and that’s what happened and this one was actually to the downside what you could have done then is really watched for this consolidation put in some price levels around here

Gone short then when the breakout occurred you would have made a positive trade you would have sold at this level bought back at lower level made money on a short trade on that occasion this is a cherry pick chart of course just to show you what trends are and what breakouts

And consolidation are because it’s going to feed into actually putting in orders and trades later on in the video let’s just recap what trends are though you have an uptrend with higher highs and higher lows a downtrend with lower highs and lower lows and consolidation which

Is a range-bound move in the price that will eventually have a breakout of that range and it’s our job to know which way that’s going and to place our trades let’s come on to support and resistance another way of looking at trends and areas in the chart that we need to place

Our trades at support and resistance are significant price levels of trade support is a price where a downtrend is suspected to stop and meet support from buyers resistance is a price where an uptrend is suspected to stop and meet resistance from sellers a breakthrough occurs when resistance or support is

Broken and then you have to go and look at the next level of support or resistance so let’s look at resistance and support you can see the zones here charts do not trade perfectly so you have to look for areas but we can definitely see this area is resistance

You can see buyers are coming in the price is going up but it always meets sellers around this level and so that would be known as an area of resistance conversely we can definitely see these support zones right here this is a zone where sellers are coming in but buyers

Are definitely coming in and preventing the price from going any lower so buyers at this level they’re just saying i’m happy to buy cryptocurrency at this level and it’s not going to go any lower and so sellers aren’t going to push the price down any further the thing about

Support and resistance though is that they’re just simply significant levels of the price where it trades resistance can actually come support so kind of a difficult concept to get your head around but they’re just areas where the trade might consolidate for a little while resistance can definitely be there

But if price breaks through resistance resistance can actually become support that’s vice versa for a downtrend as well so kind of difficult to get your head around but let’s go through it so we look at support and resistance right here and we can see that you may think

This is resistance right because the price went all the way up here and it met resistance and the price came down you might think that this is also a point of resistance as well and even this one down here you might think these are points of resistance the price can’t

Go up any higher that is resistance well yes technically it is resistance but when you’re trading these outlier prices are actually not that useful and don’t give us really much information overall this is because on this specific chart the bitcoin price was hitting new all-time highs so it’s really difficult

To actually find an area of resistance and then compare that to other points previously in the chart so let’s zoom in on this chart and you’ll see that i actually see the resistance right here the reason why i’ve drawn the line right here is because there’s much more data

At this level so i’m not going to just draw a line but i’m going to draw an area now when i draw on the chart i do use lines because it’s easier to draw a line and it’s simpler to look at but when you’re thinking about resistance

Definitely just don’t think of one price specifically it’s definitely an area of prices you might want to put it one percent either side it’s up to you this is an area of resistance and the reason i’ve chosen this is because you can see one two three four five days of trade

Around here then the price was forced down buyers come back in and one two three four five six seven eight we’ll disregard these and we have nine right here that’s nine days of trade at this level buyers are obviously coming in this is an uptrend it’s an obvious uptrend but buyers are meeting

Resistance at this price that’s obvious because they’ve tried time and time again one two three to push it higher sellers are coming in at this price this is an area of resistance and then you can see when you do get a breakthrough of resistance actually it might then

Just break out to the upside this is the area of support that i can see right here why well there’s different areas right here let’s go at this one first you can see sellers came in and pushed this price down and this is where it met support from buyers who came in stopped

The price falling price went up again what you can see though is that this area is also an area of support now what you can’t really see here is that the wick of the candle we know what that is now actually came down to around this level so that’s definitely support there

Then you can see some trading around this level again about five or six days worth that’s a lot of data that we can use and then right here you can see that in this previous up move the chart did consolidate around this level again meeting some resistance so resistance

Was here turning into support here it can be really complex to do this it’s definitely not perfect people have different opinions about this but that’s just the guide on support and resistance and how to try and find those levels let’s come on to spotting this trend

Then in this chart take away the support and the resistance can you spot the trend well definitely an uptrend here but let’s just put this one on here is this an uptrend now well we have a low then we have a higher low that’s an uptrend then we have this right here

Which isn’t a higher low so i would say coming in from an uptrend looks like bitcoin at this point is going through a slight consolidation phase you’re having higher highs right here these three are higher highs then you have a higher low and then not a higher low so it could

Actually be going into a consolidation we had a big price move here but it’s not moving up past this one so you could say that it’s probably still in an uptrend but certainly it’s going into an area of consolidation right here let’s just recap though on support and resistance significant price levels that

Trade bounces away from or meets support and resistance at that level they’re definitely price levels to watch out for as we can use these to trade before i get into indicators which is really important i want to come on to this slide right here which i’m going to show

You again when we actually start trading there’s really three steps to a trade identify the trend then identify the price action which is support resistance then make your entry with candlesticks i’m going to go through this when we’re trading it’s a one two three step process identify the

Trend best not to trade against the trend the trend is your friend you need to trade with the trend because otherwise you’re going against the market you’ve just got a smaller percentage chance of winning then after you know what the trend is identify the shorter term price action where are the

Main areas that we can enter into trades from where’s the support where’s the resistance that tells us where we need to put our stop loss our take profit and other areas then when you’ve got that make the entry with candlesticks what is the candlestick telling us is the daily

Trade going to go in our favor does it look bearish really really important and i’ll get onto this slide later on in the video let’s come to indicators so indicators are used by a lot of people you may have heard certain things like the moving average of the price the rsi things like

That all these things are are mathematical models and equations that attempt to give us context in the price action of an asset what does that actually mean well it just gives us more information it tells us how it’s trading now compared to how it traded in the

Past so we can try and attempt to know where it will go in the future indicators definitely are used by traders and they identify trends and actually really more importantly changes in trends and they attempt to simplify the process of trading and trading the trend changes they definitely cannot

Predict the future though some people love them trade off them some people don’t some people are somewhere in the middle first one moving averages really simple it’s just an average of the prices over a given period and then it smooths out those prices a simple moving average is the arithmetic mean of prices

Over a given time period so we hear a lot of people say what’s the 20-day moving average what’s the 50-day moving average what’s the 100 or 200-day moving average that simply means it takes the closing price of each day and then puts it as an average to smooth

Out the price you can actually see this gray line right here this is the 200-day moving average really simply this tells us that the current price is way above the 200-day moving average telling us that the price has over the shorter term broken out and is in a very positive

Territory or in a bullish run compared to what it was over the last average 200 days an ema or an exponential moving average is a weighted moving average of the prices and it gives more weight to more recent prices some people like sma some people prefer ema they’re also used

Differently depending on the different equation and technical analysis that you’re using let’s come to the relative strength index otherwise known as the rsi this blocks the relative strength of a price compared to previous prices so it’s a momentum indicator it’s telling us how big is the move how strong is the

Move at this price compared to what it was before usually with rsi anything around about 70 is considered overbought this means that it’s expensive and you might not want to be buying in at that price anything below 30 is known as oversold possibly cheap compared to previous

Prices and so you might want to be getting in if you want to go long and you think you’re in an uptrend this cannot predict how the price will change in the future though but let’s come back to binance and see how we can put some technical analysis on the charts with

Rsi so if you are using binance again if you want to use binance you haven’t got an account check the description you can click that link go through and sign up for an account with binance though we can come up to the indicators panel just very simply search rsi right here it’s

Going to give us the relative strength index plotted that there for us so really simply what we can do is just say look now this is 70 right here so this is the line at 70. these areas you would say are overbought or just a little bit expensive so we can actually

Put these areas up right here this area where the chart is really overboard at 80. that corresponds to this area right here this area at 17 above 70 that corresponds to this breakout right here these are obviously not areas where you want to be trading if you’re going long

Because you’re paying way up for your bitcoin if you are happy that the chart isn’t an overall uptrend though then you may want to be accumulating some bitcoin right here so down at these levels where it actually looks to be sold off a bit that just happens to correspond with these

Areas where the price is selling off if you’re a long-term hodler and you think the price is going up then you’re getting some cheaper bitcoin there so that’s very very simply a way to use the rsi it’s not the only way to use the rsi

But just to show you on an actual chart where the rsi can be overbought or oversold and how that corresponds with the actual prices of an asset next up is the average true range otherwise known as atr and we’re going to use this indicator to set our stop loss super

Important when we’re trading we’re going to use this and we don’t have to do any calculations we can just take the atr use it set our stop loss very simple quick and easy atr is a measure of the daily price volatility of any asset that is tracking could be stocks could be

Commodities in this case it’s going to be bitcoin it tells us the true amount the price could move in a given day so what this does is actually tell you how volatile a price is so let’s say you have a bitcoin what is the most that can move in one

Day we don’t know that we would have to go through and plot all of that and do complex calculations but the atr gives us that so you know how much is bitcoin gonna move in a day can it move one percent in a day can it move five

Percent can it move twenty percent well it might move five percent but what is the average percent that it’s gonna move this is really important really because we can say if bitcoin moves two percent on average in a day i don’t wanna set a stop loss at like one percent because it

Moves two percent a day so what is the largest probable move for a one-day price move based on previous data we have to know the volatility of the thing that we’re trading if we don’t know how volatile it is i.e if we don’t know how much in percentage terms it moves each

Day how on earth are we going to try and trade how are we going to set a stop loss how are we going to know what price to get in that how are we going to know when we actually take profit we have to know data and so average free range is

Going to give us that data let’s recap unit 7 then technical analysis is used to spot trends and trading opportunities absolutely it really gives us the nitty gritty once we’ve done our fundamental research once we’ve done our project research how are we going to trade how

Are we going to enter how do we know the trend how do we know that we’re timing our entry how do we know what price to trade at how do we know how much risk that we need to take we use technical analysis and indicators to make this

Process more simple and to give us a repeatable strategy for trading let’s get into unit 8 then which is going ahead and trading in the market and putting through these trades but if you’ve got this far i would really appreciate if you would subscribe if you haven’t already there’s lots more coming

Also i want to highlight some resources right now that you might want to use when you’re trading first is trading view link in description but if you have binance kraken or kucoin so if you’re using one of those exchanges you’ll actually get trading view for free let’s

Go to binance right here this is trading view you can see chart by trading view so if you are a trader on binance or the other exchanges that use trading view you can get trading view for free with your exchange account i think that’s super good value trading view has a lot

More to it though that you might want to go ahead and use trading view but you can check it out links in description also token metrics essentially what tokenmetrics does is put every single bit of technical analysis on earth over every single cryptocurrency and then just simplifies it and gives you

Scores and ratings to make your process of choosing cryptocurrencies easier i use token metrics i have an account with token metrics and it’s how i really just simplify my trading and choose different cryptocurrencies based on different ratings tokenmetrics uses ai chart analysis they also have example portfolios they have buy and sell

Signals price predictions ratings and rankings portfolio tracking and everything else you can get a a trial for 199 at the moment again just use that link in the description if you want to go through and see how token metrics can help you so here it is unit eight

Let’s trade or let’s go through some trading examples and see exactly how we do it we use everything that we’ve learned so far we can go through and trade all right so remember this slide i think uh in the previous unit this is super important so trends

Price action entry this is the three step process that you will do when you go through and trade you have to do it the same every time first identify the trend which way is the trend is it an uptrend is it a downtrend that’s the simplest easiest thing you have to do

First as a beginner you might just want to trade with the trend there are opportunities short term where you could actually trade uh maybe falls in the price during an uptrend people do that it’s more risky and as a beginner you might just want to forgo that and just

Trade with the trend and see where you get after we identify that trend what is the price action of bitcoin or other crypto we have to ask where are the main areas of trade where are the areas where we can get in at sell stop loss sales

Take profit and really try and know our risk to reward ratio before we start next the entry we have to use those candlestick charts to time and get our entry right if the candlestick chart is telling us something contrary we might not want to

Get in so that is the third part of the equation here is one two three identify the trend use technical analysis confirm our entry and our exit i also want to remind you about some earlier units remember we went over swing trading and what that is we’re going to be using

That right now short term or medium medium-term trades using technical analysis mostly with some fundamental analysis as well we could miss out on some longer profits but we are going to be actively trading here you know what dollar cost averaging is you know what investing is we’re going to be trying to

Make some shorter term profits through swing trading and through breakout trading short-term trades seeing where prices are consolidating maybe we can make some short-term profits on top of our investment account right so we’re back in finance and we’re going to be trading we’re going to be using the

Technical analysis tools on trading view on finance now you can see the chart right here base currency quote currency bitcoin against us dollar teva you can see the price 55 5 and then the change on the day we can see a one day chart here so you can see i’m clicking on the

One day so each candlestick is one day in time you can change this to four hour one week if you want i’m swing trading right now breakout trading so i’m going to be trading the one day chart that’s good for me we’ve got the order book

Right here and we can put in our orders on the right hand side i’m just going to go through and make this chart larger so we can see what we’re doing right now and we can place our orders and see what levels we need to be at i’m going to be

Using this bitcoin chart and some of the previous trade to show you how trading works so let’s go back to the slides so this is the previous bitcoin us dollar chart and i’ve got it up on binance right here one thing we don’t have which

You can see at the bottom is atr we know what atr is average true range go back to binance go to our indicators right here and you can just type in atr average true range and we’re going to click on that and then we have that indicator right here for us first thing

We do just make sure that everything is right in the top left hand corner we’ve got the right market one day and any other analysis that you want i’ve got the 200-day moving average here as a line in white let’s first identify the trend definitely an uptrend no doubt

About that we are in an uptrend the price is above the 200 day the price is moving up so we’re definitely in an uptrend now what i can see right here is an area of resistance so we got the trend and now we’re into price action where’s the price action we are

Definitely on resistance right here and actually there is some support down here as well let’s make this a little bit bigger where is the price action definitely a bullish trend price broke out once sellers came in and pushed it down and found a lot of support so we

Had that uptrend you can see the resistance right here one two this isn’t but this is so that’s three not really here but four definitely so four days out of what seven are trying this resistance line we also have this resistance here what happened previously we had one two days of

Resistance at this level then a breakthrough sellers came in we have another week right at this level trying to test this resistance and you can see the support right here so we had one two three four days testing this support and the price couldn’t break through in

Fact sellers came in dumped the price right here found support at this level we can actually look right at this candlestick sellers came in during this time period price actually went up on the day super bullish more consolidation testing this support i would hazard a guess that we’re probably going to

Continue this uptrend why look at this candlestick super bullish and this is a crazy candlestick the candlestick confirms bullishness remember we talked about bullish engulfings we have an uptrend we have testing of support here we have a down day and then a huge bullish engulfing that is just a super

Bullish sign overall that’s basically testing that support level so this could be a breakout we’re gonna go in right now but we have to do this process so remember we have the support and resistance firstly you can enter either when you want to so if you’ve seen this

And you think i’m going to go in right now you can do that or you can wait until the next candlestick starts that could be the next day if you’re trading the one day so maybe this happened the next morning you might want to look and say this was a bullish engulfing pattern

I’m going to go in right now so it could be the start of the next day or just when you wake up your time obviously crypto’s trade 24 7 so difficult for that entry but a lot of people go in at the start of the next candlestick then

We need to place out stop loss where is our stop loss like i said remember the atr the average true range how much can this price move in one day well the atr right now you can see down here i’m going to get to the calculation but once

We have that calculation we also need to put in a take profit so you have your entry level your stop loss and your take profit and we have calculations for all of this so let’s get into it entry calculations firstly the open of our position you can see this right here is

33437 this is our entry position that was the price at the start of that candlestick so our entry position otherwise known as our open 33 437 we need to put a stop loss in though what is our stop loss super easy to do go and

Put the atr on the chart i’ll show you right here this is the atr you saw me put it on go to technical indicators type in atr put it on the chart make sure it’s a big line and the atr is around three thousand three hundred and

Go back to the slide you can see the atr on this was three thousand four hundred and thirteen so that means that your stop loss your entry at thirty three four three seven your stop loss is three thousand four hundred and thirteen below that price this is the price of bitcoin

By the way so one bitcoin is thirty three four three seven our stop loss will use the atr three four one three why would you place your stop loss using the atr the ati is the most it can move in a day usually you don’t want to place your

Stop-loss too tight because if you do you may be stopped out because it is normal for the price to trade in a range within a day and if your stop-loss is too close in normal trading you might get stopped out even though you may have a winning trade that’s why we use the

Atr and place it slightly below the maximum volatile move in the price so that’s why we do that i’ll take profit 40 000. why is it 40 000 we’re up near the swing high that is the previous high the swing high that is where we’re going to take our profits so the risk

Calculations entry price minus atr equals stop loss like i said what’s your entry price 33437 what is the atr three four one three that is our stop loss our stop loss is 30.024 remember you put that stock market order in there for your stop loss don’t worry i’m going to do this on

Binance then what we need to know is how much we’re risking super important as well so the atr divided by our entry price gives us our risk it basically tells us how much we’re going to lose if we get stopped out you can see this calculation here entry price minus atr 3 3024

1 3 which is 80 r divided by entry price equals 0.1 otherwise known as 10 percent i’ve put 0.1 in red here because that’s how much we would lose if the trade went against us and i put 10 in green because we’re risking 10 of our portfolio now

We’re spot trading here meaning you’re just paying in cash we’re not trading futures or anything we’re not getting into that but if we place the stop loss 3413 away from our entry we’ll lose 10 and i’m happy risking 10 in my position for this trade if i lose

I’ll lose 10 percent let’s see on the chart this is our entry in blue our entry three three four three seven you can see the atr right here atr is three four one three that’s our stop loss our entry minus atr we’re at a level of 30.024 you might

Want to just say 30 000 to make it easy next what’s our take profit here’s our take profit we’re gonna have a take profit near the latest swing high we’re in an uptrend we want to ride the uptrend we don’t want to put a crazy take profit in though because this is

Where the price met resistance before and support and resistance it may meet resistance again so place your take profit slightly below the latest swing high because up there’s going to be a lot of traders a lot of sellers selling into that resistance so don’t be greedy

Sell it a little bit below we’re going to sell it at 40 000 because that is a nice round price you may even want to set it at like 39 950 just so it’s not a round price that people may sell into you can see right here this is our

Potential loss it’s a 10 potential loss if you’re trading cash if we lose we’re gonna lose 10 of our portfolio if we win you can see our profit calculations right here profit calculations take profit price divided by entry price so that’s 40 000 divided by three three four three seven

That calculation comes out one point one nine otherwise known as nineteen rounded up to twenty percent we have a two to one ratio on this trade that is a good ratio really good ratio that means you can actually be wrong 50 of the time and still make loads of money if you win

Every time in a two to one ratio you’re going to be making money this is a great risk reward ratio trade but you may say well what is that profit and loss you’re just picking numbers out of the air yes and no we’re using support and resistance for these levels it’s all

That we can go off the support and resistance that we found at these levels there’s support down here we can see that there’s also resistance here and that’s what we want to break out and then the next resistance is the big swing high that we’re trying to trade

Off it’s all that we have these are the numbers the support and the resistance the trends that we have to go off back in binance and i’ll show you exactly how to put these orders in firstly for the buy our entry we have to place a limit

Order so the limit was uh 33 437 so we come here 33437 how much you want to trade is up to you if you want to trade big boy bucks and like 10 bitcoin a trade probably not best 0.05 bitcoin okay that works out we’re trading 1600 bucks place that

Limit order place that buy or just go ahead and do a market order but you might get a worse trade next up put your stop loss in remember that’s a stop loss order come back to the chart right here go over to sell because you’ll be a seller for this specific order stop

Limit right here thirty thousand more or less thirty thousand thirty thousand you’re telling the system that if the price gets down to 30 000 sell out okay you stopped out of your trade trades over make sure you put the same amount as you went long for so exactly the same

If you’re trading 0.05 of a bitcoin trade that .05 of a bitcoin you see the total is 1500 so yeah we would have lost a couple hundred bucks if the trade moves against us then put in another sale order remember a take profit is simply a stop limit sell order above

Our trade because this is a take profit come back to the order check the system how much is our take profit our take profit is forty thousand forty thousand then put the limit as forty thousand same amount of bitcoin press that cell two thousand dollars you’d get again if

You’re trading 1600 bucks you would have made 400 bucks really good trade and that is how you put it in the system all of your orders that aren’t executed or haven’t gone through yet will be down in your open orders you can view them cancel them and if

They have gone through they’ll be in your order history let’s go back to these risk calculations absolutely everything in here has been input on to finance let’s go back to binance see how this trade went remember we’re in around this level stop loss down here want to take profit around forty thousand here’s

The next stage trading wouldn’t have got up there so thirty eight thousand five hundred that was intraday didn’t finish there but didn’t quite meet our take profit again we’re getting a big break out here and there you go bang we got that 40 000 here we would have been traded out 40

000 near that previous swing high and we would have lost out on money now this is one of the downsides i would say of putting in a definitive stop loss and take profits is you know you’re going to lose out on longer term profits possibly but the more lacks and loose you are

With these orders and the amount that you’re trading it’s more risk so it’s up to you but we would have missed out on this and also this but we would have made very decent money and then you can go again with a different trade later on

You can let your profits run you don’t have to put a take profit in there you can actually just raise your stop loss level to make it so that you will make money out of the trade and you know you won’t lose because your stop-loss level

Can now raise up so if you don’t want to put a take profit in there you don’t have to you can run your winners if you want but this is just to show you and you can make that choice as you want next example what is the trend we’re in an uptrend

That is obvious the 200-day moving average we’re way above it we’re obviously in an uptrend so we know the trend right now what is the price action this is a bullish trend we know that price broke out once you can see that here sellers came in price found lots of

Support moved up sellers came in again right here this is right for a breakout because we can see what is known as a small mini consolidation right here after the big move see this day is a huge move this day is a huge move so we

Just traded this one we just traded this move right here we went in here and then we sold out around here then we have another huge move up to the upside again you might have wanted to trade this but i’m doing this after this pullback we have a huge bullish engulfing right here

Absolutely huge and you might have wanted to go in at that point as well let’s say you didn’t for whatever reason because it had a sell-off right here then you had the big sort of recovery day kind of volatile you might want to stay out of that market but then we have

Consolidation like i said consolidation is key let’s see where the support is support’s here right we can see that we have one two days of support right here after a big move up you’d expect sellers to be coming in right huge move up sellers are coming in yeah they did but

They found huge support right here there’s definitely buyers in at this price around 44 000. price went up came down definitely found support here again sellers pushed it down this is definitely an area of support where is the resistance definitely here we can see the price was coming up and kind of

Found a little bit resistance here but also here one two days of resistance absolutely definitely resistance right there let’s move in on this can you see the candlestick chart like we said classic hammer candlestick right here it’s not absolutely perfect like we saw in those diagrams real charts never are

You can see a huge down move seller’s trying to push it down moving up right here definitely a hammer that’s a bullish move telling us that buyers are pushing it up and for this session it finished green we have the support we have the resistance we have

The trend and we have the candlestick pattern telling us that we could be in bullish territory let’s come here to trade remember we enter at the start of the next candle we place our stop loss one atr from the price that we get in that and we place our take profit near

The last swing height these are the entry calculations on this trade open at 48.80 so you can see that right here next up we need to see the atr for the stop loss 4 000 so our entry level 48 800. the atr is 4 000 so that gives you

44 880 for our stop loss and then our take profit we could say around 57 000 near the latest swing high so remember risk calculations entry price minus atr equals 44 800. so that is our stop loss just so happens to be really near levels of support as well which is super

Great so remember we have support here and support here really great that our stop loss is at or just a little bit below that to give us some breathing room just in case it comes down and then moves back up our at-risk position 4 000 divided by 48.80 is 0.08 otherwise known

As 8 that is our at-risk position because we use the level of support and the atr you’re risking eight percent here thousand dollar trade you’ll be risking 80 bucks profit calculations our take profit divided by entry price 1.17 otherwise known as 17 a two to one ratio yet again this is our

Take profit here is our area of loss here is our area of profit i like this ratio it’s a two to one profit ratio let’s go back to the real binance chart and see how this trade did remember so we’ve got our hammer here we’ve got a

Reversal here how did this trade do did it come and test our stop-loss rip right here around 44 we can see that it never even got anywhere near and yet we got out took our profit on that trade that was another profitable trade for us on this one this

Is our third example in this chart and this one’s a little bit different so sometimes trades don’t go our way but we put our stop loss our take profit see where we end up where’s the trend definitely in an uptrend we are still having higher highs higher highs higher

Lows you can see right here an area of consolidation though moving through to the price section we’re definitely still in a bullish trend we have higher highs and higher lows there is a mini consolidation right here though and so with consolidation we could be primed for a breakout we also have a

Bullish engulfing on the candlestick as you can see this candlestick then we have the bullish engulfing right here it looks to me like buyers are testing this price one two three four days five days six seven days i want to go in here another price and you have to look at

Fundamentals in the market in general 60 000 it’s such a psychological barrier for a price but at this time we’re in an uptrend resistance resistance at 60 consolidation resistance at 60 it’s going to break out right we’re in an uptrend resistance for a week at a price the price is consolidating getting

Narrower and narrower we’re in for a breakout either up or down but we’re in for a breakout we’re going to go into this trade so once more where is the support and where is the resistance right here around these levels you can definitely see support definitely see resistance and we’re getting this

Testing of this price right here total mini consolidation so we enter at the start of the next candle we place our stop loss one atr away and we take our profit near the last swing high problem is though there is no swing high this is basically

An all-time high let’s go to the binance chart and you can see it right here we’re basically an all-time high right here the all-time high was 61 000 then it got set up sold off right there where do we put our take profit there’s no

Level that we can go off we just have to kind of wing it here we’re in breakout territory we really can’t have any other level that we place to actually find a take profit so we’re going to have to kind of take an average of what we usually make

So let’s say we open at 58142 on this next candlestick the atr right now is at 3 000. so 58142 minus 1 atr is 55 142. where is our take profit absolutely no idea whatsoever we have no other data at this price level and so we’re just going

To have to put a number on there but we can work out our risk calculations so we’re entering at 58142 180r down at 55 142 that red line on the chart is a little bit below where it should be should be around about here 55 142 then we have our take profit we

Don’t know where to put this now if our stop loss is five percent away from our entry that is what 180r away is 3 000 divided by 58142.05 which is 5 what is our profit well we’re in an uptrend let’s say 15 right because our other trades we were making good money

Like 17 16 we’re gonna try and make a three to one ratio on this trade because we’re taking not much risk at all which is five percent risk so let’s just try and go for a three to one ratio 15 this is our stop loss this is our take

Profit up at 67 000. back on the chart we can see how this goes so we entered around 55 around here so we can see it moved up really great but it didn’t get to our take profit it only reached 63. now we would have been in profit here we

Could have taken our profits here but we’re getting a little bit risky we’re saying no i know the market better i’m a good trader i made two profits in a row so i’m just gonna let the position run and i’m gonna go with it but we can see

Boom i mean we would have been stopped out after this move up here to 63 just had a huge sell-off remember our stop-loss was at 55 that level it’s just gone we would have got stopped out so this is a losing trade it shows you how precarious trading is and those take

Profit levels are now what you could have done up here is raised your stop loss above your entry and just said i’m going to let this trade run because my stop-loss is above my entry so i’m guaranteed not to lose money you can put your stock market order in there

So you can come through like we did before put your stock market in there and actually change the order when the order’s in come down to your open orders change that order move the price up to around about your entry so you’re at risk positions basically zero and you’re

Running that position definitely could do that but if you didn’t do that and the position ran then yeah you would have gone up a little bit and then boom stopped out of your trade so what can we learn from these three trading examples where we identify the trend

Only trade with the trend when starting out find the price action and chart patterns plus the indicators then find the candlesticks for our entry point make sure you enter your trade and manage your risk with the formula that we saw atr for your stop loss and then

Look at a level to get out you don’t have to use these specific indicators there are many other indicators that other traders like using and will use over the ones i’ve used but this is really to give you a simple overview of how we put together technical analysis

And entry points plus some risk management if you want to go ahead and trade all of the best exchanges that i use in the description click on those links to go through and sign up and start trading also if you want some of the best analysis tools and tools to

Help you with your trading and the information those links are in the description training view is really good token metrics has literally every ratio under the sun and then just gives you a very simple way of analyzing cryptos overall crypto is unpredictable and it’s super high risk so definitely keep that

In mind technical analysis is not perfect always holding quality projects over the long term may be better for you these charts were cherry picked to just show you examples of the strategies that we’re using in this video please subscribe like and share this video if you think anyone else could get value

From it and i am not your financial advisor so please do not take this video as financial advice trading involves significant risk thank you so much for watching this very long video i hope you got a ton of value out of it and i’ll see in the next one

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