The Ultimate Chart Patterns Trading Course (Expert In 1 Hour)

0:00 hey hey what's up my friend so welcome to the ultimate chart patterns trading course right so who is this course for this course is for you if you're a beginner Trader or an advanced Trader right here's how it works right this course is built in a step-by-step manner right so even if you're a new Trader you can follow along this course right every step of the way and towards the end right we'll build up on what you've learned and share with you Advanced strategies and techniques right and this will be you know a useful stuff especially for those of you who have already some trading experience now it doesn't matter whether you're a stock Trader a Forex Trader or a crypto Trader because this course right it can be applied to this Market because the strategies the techniques the concepts can be applied across these different markets now I pick a lot in this course so I put a timestamp somewhere on the screen so you can refer to it if you need to and

0:45 you might think oh right now I already know some of this chat matters well guess what right I still recommend you watch it from start to finish because the way I interpret some of these patterns the way I trade it is actually quite different from what the textbooks what the other courses teach you so I recommend you go through them with me so you kind of like no rainer's version yeah so the goal for you from this course is very simple right I only have three goals number one to teach you how to use chat patterns to better time your entries and exits number two how to use chart patterns to predict Market turning point so you don't get caught on the wrong side of the move and finally number three to equip you with chart pattern strategy so you can profit in Boo and bear Market sounds good then let's get started now the first shot pattern that I want to share with you is called the double top pattern so this is in essence right

1:32 A bearish reversal chart pattern so how does this work let me explain so when you spot a double top right you will see that the market at first is in an uptrend then it makes a pullback then it re-tests the highs once again and then makes another pullback so at this point in time right the market is actually still bullish there's nothing bearish about this chart at this point in time but where things starts to get kind of suspicious is when you have this neckline over here okay and if the price breaks below this neckline we would say that the let's say imagine it breaks below the neckline will say that the double top is sort of confirmed and the market is likely to head down lower from here so let me give you an example of how this looks like on the chart so you can see over here this is a double top button it tested once called rejected down lower tested twice

2:20 got rejected down lower and at this point is where it broke below this neckline otherwise also known as an area of support so how can you trade the double top pattern so there are many ways to do it but one simple method is this right so at first let's talk about how not to trade it so I'm mistake that many Traders make is that when they see a breakdown of this neckline go shot on this Market what's the problem with this is that if you have been Trading long enough you know that the market could come down lower and then quickly reverse back up higher otherwise known as a false breakout so if you're short just because the market broke below the neckline you're going to be you know pretty disappointed quite often okay so what else can you do well a better approach right is you can actually wait for the break and retest so you know that this is an area of support

3:05 okay let the price break down lower first and then re-test this area of support So this could be uh you know a retest and giving you an entry trigger like the shooting star pattern like this okay and this right tells you that hey no sellers are stepping in right and this over here could be previous support which could turn into resistance dedicated look to enter analytics candle open stops a distance above the highs possible Target just before this recent swing low I don't want to go into the trading strategy yet because we'll cover that later on but this is just an idea to how we can possibly trade the double top chart better and by the way if you want to learn how you can actually enter a double top pattern right before the price breaks before before the price breaks below the neckline right there you know stay with me towards the end of this training because towards this trading strategy

3:51 section I'll share with you how you can actually enter your trade before the price breaks the neckline and when that happens this means that when the price reaches this neckline you're already in profit so I'll cover all that and more in a later part of this video but for now let's move on and talk about the double bottom pattern so this is the inverse is actually a bullish reversal chart pattern it looks something like this Market it's in a downtrend then it hits this low over here and makes a pullback up higher okay then it retests back the low and Bounds us up higher so at this price point at this point in time this Market is still in the downtrend there's nothing bearish about it because if you look at it the lower high the lower high the lower high it's still intact and at this point this is where you can actually also draw your neckline over here otherwise known as an area of resistance and when the price if it does

4:38 break Above This neckline this is where we see the double bottom pattern is confirmed right you can see the double bottom tested once tested twice and then this break Above This neckline is where we say the double bottom pattern is confirmed and the market could head up higher so visually it looks something like this okay so you can see over here Market is in a downtrend tested once bounce up higher making a pullback test it twice okay bounce up higher at this point this is where we say the double bottom pattern is confirmed because the price has broke out of the neckline but as you have known by now right this you shouldn't trust this breakout just because the price close above it because what could also happen is the market could just as easily reverse down lower forming a false breakout close using back below resistance so how do you trade the double bottom pattern so one way to go about it again is to actually

5:24 to wait for the break and retest let the market break out and retest this previous resistance which could become support let me retest it right so once you retest you can then look for a bullish entry trigger like a hammer or something like this okay right and to tell you that hey buyers are stepping in and about to push the price higher because that's the meaning behind the hammer right where the price at one point in time this is the opening price it traded down to towards this low only to have the buyers stepped in to push the price up higher closing right at this price point okay so this is a sign of strength and this is where buyers could possibly come in so you can look for a bullish entry trigger to go long stops a distance below this lowest possible Target could be just before this recent highs okay so again we will talk about the trading strategy entries and techniques later on but that's one way you can go about trading the double

6:10 bottom chart pattern next you have the hey shoulders knees and toes knees and toes hey shoulders knees and toes knees and toes that's what happens when you have three kids and they play nursery nursery rhymes every single day in your house right so anyway The Head and Shoulders chart pattern right is pretty much a bearish reversal chart pattern so let me explain how this works so this one over here again Market is at first in an uptrend then it makes a pullback and fire off higher then it comes back down lower re-testing these lows over here so at this point again Market is still bullish Market is forming a series of higher highs higher highs higher highs higher highs higher highs and higher lows higher lows so where things starts to take a turn right this way you notice the right shoulder being formed

6:56 price hits up higher and then starts to come down lower again so at this point when this is significant because it tells you like the buyers they have difficulty retesting this highs over here they have difficulty pushing the price up higher they have difficulty breaking out higher so this is a sign of weakness but it doesn't mean that the market is going to collapse no so at this point this way you can actually identify the neckline okay some people call it support some call it the neckline whichever and The Head and Shoulders pattern is only confirmed right when the price breaks and close below this neckline over here okay so when that happens right we will say that the head and shoulders pattern is completed and the market could possibly hit down lower so visually it looks something like this okay so let me show you so this head and

7:42 shoulders pattern is a little bit different not as symmetrical as what you've seen earlier this is the left shoulder this is the head the one that is sticking out and this is the right shoulder and what what you'll notice is that the left shoulder is a lot the duration is a lot longer compared to this right shoulder shoulder and it's still a valid Head and Shoulders pattern the reason why I share this with you is because in trading sometimes the pattern are not as symmetrical it's not as textbooky as what it might seem so sometimes the the core principles are still there they're still a left shoulder which is this one over here there's still a hit and there's still a right shoulder but it's not quite as symmetrical or textbooky right as what you might expect again just want to kind of prepare you for the real world of trading when you spot such uh chart patterns so now how can you trade the head and shoulders pattern

8:28 so one way that I don't recommend doing it right is that you know if you see the price breaks below the neckline over here you go short the problem is where you're going to set your stop loss okay so some Traders might set it no let's say above this head over here right because if the price goes all the way back up and hits this level breaking up the head of your head and shoulders pattern then of course this pattern is invalidated problem with this is that your stop loss is pretty pretty done why it's like huge all right so to even achieve a one-to-one risk reward ratio if it's gonna take a while right so a better approach or another approach that you can consider is again we talk about the break and retest method that I shared with you earlier alternatively I'm going to share with you a new one over here is what I call the first pullback so why do I call this the first pullback because at this price point notice how the price breaks below support okay so if it makes a pullback

9:15 now this is what I call the first pullback because this is the first time the market has made a pullback after this breakdown over here so let's say it makes a pullback forming like you know kind of like a like this is a bearish flag pattern again this is chart pattern that I'll share with you later on and if the price does hit down lower and break below this low this way you can go short right you go short at this price point now what's the difference between shorting at this price point and shutting earlier well the main difference is that now you can actually reference this highs to set your stop loss your stop loss is going to be more tighter right now so when you have a tighter stop loss you get a more favorable risk to reward so let's say you shot at this price point your stop loss now is somewhere over here can you see how much tighter your stop loss is right and that's one way you can go about trading The Head and Shoulders pattern okey-dokey and by the way if you're enjoying this trading so

10:01 far smash the Thumbs Up Button if not hit subscribe so the inverse Head and Shoulders pattern this is just the inverse or rather the the opposite of what I shared with you earlier so it's a bullish reversal chart pattern so it looks something like this okay so this usually when the market is in the downtrend like this okay then it makes a pullback up higher then it sticks another step down lower then it makes a pullback up higher okay so at this point again Market is still bearish there's nothing bullish about this because you can still see a series of lower lows lower lows and lower lows so where things start to take for return is pay attention to this price action over your Market hits down lower okay and this time around it wants to again continue this downtrend and to continue this downtrend it has to break below

10:47 this low but guess what it couldn't break below the low because buyers are coming in to push the price higher buyers are stepping in and this is where you notice the price action takes a turn and starts to go up higher so at this point is where you have your left shoulder this is your head and this is your right shoulder again nothing is confirmed now nothing is going to say that hey this is the reversal until the price breaks above this neckline Okay so until the price can break Above This neckline this is where we say The Head and Shoulders pattern is completed and the market could possibly head up higher and the tip to share with you is that for classical technicians right there we'll use something called the price projection to kind of determine where the head and shoulders where the inverse Head and Shoulders price could terminate

11:34 that so let me give you a quick example so let's say let's say the low of the hit over here okay let's say I'll just use this point let's say the low of this head over here okay the price is trading at 50 dollars okay and let's say the highs of this neckline over here let's say the highs of this neckline the price is trading at a hundred dollars so from 50 to 100 it's a difference of fifty dollars right so in other words the entire distance of the head and shoulders pattern from the head to the neckline is fifty dollars so when we try to determine where the market could potentially terminate at we just simply take that distance and kind of like project it up higher so in other words right 100 you plus fifty dollars because that's the distance of the head and shoulders pattern you can actually kind of say that hey no at 150 price point let's say somewhere about here this is

12:19 where 150 this is where the head and shoulders pattern could be uh completed at and that's where you could actually face selling pressure where the market could reverse from there so this is how a classical technician uh charties right they use a price projections to determine where the chart pattern could you know move till okay so an example of how the inverse Head and Shoulders pattern looks like something like this again the left shoulder this is the head and this is the right shoulder and what is this this is what we call the neckline otherwise also can be called a resistance so at this point you can see over here this Market has actually broke out of this neckline over here and actually right in this particular instances one way you can trade this is actually to actually trade the breakout why is that

13:05 because if you think about this when this Market breaks out over here why is this a tradable breakup because you can actually have or rather two things number one you can actually actually reference this low this swing low to set your stop loss you have still a pretty tight stop loss so from here to here right let's say you set your stop loss a distance below this low so somewhere here your stop loss here this is still pretty tight okay so that's one thing in your favor number two notice how this market right is actually consolidating just before this area of resistance this consolidation otherwise what I call as a build up is a sign of strength is telling you that hey you know the market it has difficulty heading down lower because imagine if the market is in a downtrend then buy right right it shouldn't be consolidating here so long by right it should actually just pretty much continue down lower breakdown below

13:51 this low continue its lower lows and lower Highs but the fact that it's actually covering at resistance the fact that it's still consolidating over here tells you one thing buyers are stepping in and could possibly push the price higher so that is again is a publisher uh I would say price action signal to that will warrant you right to actually trade the breakup out of this head and shoulders pattern and again why it's a tradable breakout unlike the earlier examples let me share with you the earlier examples if you haven't recall if you look at this one over here if you trade this breakout over here let's say you refer to the nearest swing high it's actually this one over here and your stop-loss is going to be over here pretty darn wide yeah okay now if you compare this to the stop loss that you have on this one over here can you see the difference in tightness of the pattern and as you know right the

14:36 tighter the better is the longer the market is kind of like in The Squeeze probably it will lead to a stronger breakout so in this instance right there's one way you can go about trading the inversion and shoulders pattern only if right you have this consolidation you have this built up form right at the neckline only if you have that if not you can go about trading the first pullback or the break and retest strategy which I've just shared with you earlier and don't worry too much about the strategy part because later on I'll dive deeper with you on how you can actually use chat patterns right and develop your own trading strategies I'll walk you through uh trading strategies that I use myself to trade the markets and more on that later next we have the triple top chart pattern right so this is actually a reversal chart pattern a bearish reversal pattern and it's actually a variation of The Head and Shoulders pattern that you have seen

15:21 earlier and in fact it can also be a variation of the double top pattern so let me explain how this works so again Market is in an uptrend okay then you re-test the High I mean already test the highs makes a pullback then retest The Heist once again then makes a pullback so at this point now if the market breaks below this neckline we will see that there's a double top pattern and it's confirmed if the price breaks below the neckline but what if the market re-tests the highest once again so you can see it retested once twice and over here it comes down lower if we said retested twice twice sorry and then this is the neckline you have okay so again if the price comes down lower and breaks below breaks and close below the neckline we will say that the triple top chart pattern is completed and the

16:07 market could possibly head down lower and the price projection principle that I shared with you just a few moments ago it can be applied to the double top of the triple top chart pattern as well so let's say for example this one the highest over here so let's say it's 200 okay and let's say this neckline the low of the neckline is for example 150 dollars no quiz time if the market breaks below this neckliner where could you project this pattern to terminate it to kind of like you know officially terminate it I won't say officially but where the technicians right will say that this price projection could complete that equal complete basically you take the distance from this highs to this lows you know it's 50 and you just take 150 minus 50 and it's about 100 okay so you can say that this pattern right could be complete right at this 100 price point

16:54 so 100 is where you could say that you know hey buying pressure could come in right to push the price up higher so that's what the technician the chart pattern uh technical analyst use uh this price projection method to kind of like give them a Target price yeah okay so this is the uh bearish reversal chart pattern and Visually it looks something like this so you see here Market hit up higher tested once make a pullback heads up higher tested twice makes a pullback so again at this point nothing bearish on this charm because the market has just uh still formed a series of higher lows you can see higher low higher low and here close to the previous low so again nothing bearish about this then the market heads up higher once again and comes down lower so at this point again you have the market looking

17:40 something like in the range a range in an uptrend so at this Price Point again I won't say the market is bearish because it's kind of like contained within the range and if you look at the previous existing Trend the overall Market previously is in an uptrend okay so at this price point at this point right I will actually lean more towards looking for buying opportunities but the game changer happens right when the price breaks and close below this neckline on this candle it brick and close below the neckline this is where again things have changed and I'll shift my buyers from bullish now to bearish so how can I trade the triple top chart pattern again what I don't really like to do is that I don't like to shop over here and then have my stop loss let's say for example Above This highs because again the distance of your stop loss is too pretty darn wide so all the techniques I

18:25 shared with you earlier the first pullback the break and retest yeah those are techniques that you can use to trade the triple top chart pattern so for example we can go with again for example let's say go with a break and retest Market is down lower then it comes back up and retests this previous support which could become resistant you can look for something like again a shooting star pattern like this okay this telling you that hey selling pressure is coming in and the market could possibly reverse down lower from here so this one set up right they can look for to trade the triple Top Shot pattern okay next one on the list the triple bottom shot pattern I'll go slightly faster now since I think you should probably know what to expect so this is a bullish reversal chart pattern so this is where the market at first is in a downtrend then it makes a low bounce up higher comes back down lower

19:11 retest this lows bounce up higher re-test the lows once again they thought they could break the price down lower the sellers they are they thought man this is our time it's victory whoa but guess what Market bounce up higher and then they fail to you know take the price down lower so at this point you have what we call the neckline over here and if the price breaks Above This neckline this is where we say the triple bottom pattern is a confirm and the market could possibly head up higher okay so visually it looks like this so notice how cute this is bounces one point goes up comes back down bounce your toy goes up comes back down third time point three times so three bounces one two and three so three times three attempts to drive the price down lower but the market just can't go down lower what is

19:56 that telling you that's telling you that if you can't go down lower then it probably should go up higher duh right so this is where again the market once it breaks Above This neckline it could possibly heat up higher and one thing about trading is that yes a lot of you know Traders technicians they like to use the word confirm right the Candlestick pattern is called verb the reversal is confirmed but when it comes to trading nothing is confirmed all the stars can align can be it can look as confirmed as confirmed on the chart but guess what things can still go in the opposite intended uh Direction so for example over here the market for all you know we could just break out an X candle bomb right if this bearish uh reversal Candlestick pattern right signaling the head is a false breakout and the market breaks down lower that could happen as well but they like to use the word confirm so I'm using the word confirm here with a quotation you know this

20:42 finger the signal to you they know don't fake it as 100 guarantee but take it with a kind of like a probability probabilistic mindset yeah so this is the uh okay the triple bottom chart pattern so how can you trade it so get uh numerous you can trade numerous way you can use you know the break and retest the first pullback something like this goes up then maybe it makes a pullback like this okay some type consolidation then you can kind of like identify this uh flag pattern right we'll talk about that later and if the price breaks Above This highs it can look to go along over here okay and where do you set your stopwatch your stop loss can go distance below this lows somewhere about here so from here to here would be the size of your stop loss okay so we can see that this is a pretty nice tight stop loss and if this is let's say really the uh the bottom right and if the price does break up

21:27 higher you can see that you have a pretty favorable risk to reward on this trade as well yep and that's pretty much it right for the reversal shot patterns in the next section we're going to talk about continuation chart patterns exciting stuff so let's get to it okie dokie so next up we have the cup and handle pattern this is our bullish Trend continuation chart pattern okay so this is the first one on the list and how this pattern looks like something like this Market is in an uptrend goes up higher makes a pullback goes up higher makes a pullback goes up higher and this time wrong when you see a cup and handle pattern foam you'll notice that the pullback is much longer in terms of duration compared to the earlier pullback compared to the earlier pullback this pullback the duration is

22:14 much longer so it makes a pullback and then starts to you know kind of like consolidate slightly over here so at this point right there is nothing bearish on this chart in fact the market is still bullish because you notice a series of higher highs higher highs higher highs and higher lows higher lows higher lows and what you'll notice is that for the cup and handle pattern the market will stage another rally to attempt to break out of this highs and on this first attempt it is where it has difficulty breaking out higher so this way you notice a small pullback over here where the sellers try to exit some selling pressure but at this point again uh sellers couldn't really push the price any lower it in fact it has difficulty breaking below this swing low so this tells you that the overall the market is still bullish and then at this point you can actually draw this area of resistance slasher neckline so when the

22:59 market if it does break above this area of resistance we will say that the cup and handle pattern is formed and the market is likely to continue up higher so an example is this over here so notice how this Market is in an uptrend goes up oops goes up makes a pullback goes up this time around notice the pullback the duration is much longer compared to the earlier pullback then it tried to break out of this Highs but couldn't quite accomplish yet so instead what it does is that it makes a pullback from somewhat of a consolidation and then when the price breaks above the size this is where we say the cup and handle pattern is complete and the market could possibly head higher so now the question is how do you trade the cup and handle pattern so this one is again you can trade this you know use trading the brick and retest the first pullback but another way you can trade it is that

23:46 notice how tight the consolidation is right for this cup and handle pattern and by the way in case you're wondering okay right now you know where where is the cup where is the handle man so let me explain to you so this is what we call the car the base of the cup is what we call the cup and this over here is what we call the handle where you kind of like hold the cup the handle of the cup so this is what we call a cup and handle pattern so to trade this right what you can do is that when you notice the handle is very nice and tight this is what we call a volatility contraction pattern this is what we call a build up right nice tight consolidation where the buyers and sellers they're kind of like equilibrium storing potential energy to to kind of like you know make the next move right shortly so whether the next move is going to be up higher or lower is anyone's guess but since you know that the direction of the trend is up then

24:33 you probably want to be trading right in the direction of the trend so one way to go about trading it is that if the price can break Above This highs you can look to go along right and your stop loss can go a distance below this swing low somewhere about here so your entry point somewhere here stop loss so let's call it entry e stop loss here so there's one where you can go about trading the cup and handle pattern and of course the inverse is what we call the inverted cup and handle pattern so this is a bearish trend continuation chart pattern so to illustrate this something like this Market is in a downtrend it's lower makes a pullback hits lower makes a pullback hits lower and this time around the pullback is actually longer right than the preceding earlier pullback so you can see that you can expect the pullback to be slightly longer slightly deeper as well okay and then what happens the market starts to hit down

25:19 lower try to break up the lows but not quite there yet instead it makes another pullback a time another rally up higher but you can see that the rally is pretty weak right it's so weak that it couldn't even take out this previous swing High over here and at this point you have what we call a neckline or an area of support if you want to call it and if the market comes down low and breaks below this lows of support you can expect the price to hit down lower so this is what we call a inverted carpet handle pattern so just to show you over here you can see Market makes a move down lower a slight pullback move down lower slight pullback move down lower slight pull back and move down lower and then you have a deeper pullback and this time around the pullback is much longer in duration and it starts to hit down lower it tries to

26:04 take out the lows but not quite there yet and then it forms a consolidation a build up over here okay so at this point this tells you right at this juncture it tells you the price action tells you that the bias and sellers right they're kind of like fighting a war right the bodies are trying to push the price higher but no the selling pressure is stepping in like holding the price down lower and you can see that to me that's a losing battle right for the buyers because they can't even push the price up higher to take out this previous swing guy so this to me is a sign of weakness and since you are you know the overall trend is down when the market breaks down lower there's a good chance of this Market continuing down lower so this is what we call the inverted cup and handle pattern and once again to trade this you can you know trade what we call the the uh this build up over here notice this nice tight consolidation this is significant

26:50 because if the price breaks below this low scale look to go short your stop-loss again because you have this tight consolidation you have this highs over here you can reference this highs to set your stop loss possibly somewhere about here okay imagine without this consolidation right the next logical place to set your stop loss is actually probably somewhere above this swing High which is going to be pretty large so that type console consolidation gives you a relevant place to set a stop loss a title stop loss which then offers you a more favorable risk to reward on the trade okay the next one on the list is what I call the ascending triangle Chuck pattern well I didn't call the ascending triangle chocolate and this is what people are Traders right who came before me call it and it's one of my favorite chat patterns to trick because it's a bullish Trend continuation shot pattern and I find that it's actually one of the most powerful ones to trade because the psychology the price action the meaning

27:36 behind this pattern is just so significant so let me explain how it works so for the ascending triangle pattern again Market is in an uptrend goes up higher makes a pullback goes up higher makes a pullback goes up higher it makes a pullback then it starts to go up higher again but fail to do so then makes another pullback but what's interesting is that this pullback now okay it did not take out this lows over here right in fact you make a slight pullback very head up higher once again and at this point right you have this what we call a area of resistance and sometimes we might have another smaller pullback before the price breaks out higher so when it breaks out this is what we call a ascending triangle chart better because notice how the higher lows one Higher low higher low high low you can actually connect the lows right and get what we call an ascending triangle chart pattern so this to me is a sign of

28:22 strength because it tells you that it's a story of the buyers right willing to fight to fanil for every inch right trying to push the market up higher so you can see this uh buyer is trying to push the price up higher higher higher even just in front of resistance they're still willing to buy at this higher prices so why would people want to buy in front of resistors why would they want to uh still be so uh how should I put it why are they still so strong right even just in front of resistance well probably because they expect higher prices to come so that's why you're willing to buy in front of resistance because you think that the market is likely to break out so before it breaks out you quickly get on board so this is a sign of strength okay so this is an ascending triangle chart method so also notice right the story I imagine someone who is shot this Market if you are let's say the market someone

29:07 look at this oh price that resisted sell or Price comes back into resistance sell the more time resistance is tested the stronger it is so let me shot it resistance so let's say you are shot resistance now what happens when you're shot resistance where will your stop loss be well probably your stop loss is going to be above the highest of resistance right well that's what most things but what gurus will tell you put your stop loss above resistance so imagine right when the price breaks above resistance it's going to hit this cluster of stop loss and this cluster of stop loss are in is actually you know buy stop orders when you're short the market your stop loss is in essence a buy order right to get you out of the trade so when he hits that cluster of stop loss that is strong buying pressure to push the price right further up higher so this is why I love trading the ascending triangle shop at them because the psychological of the market participants getting trapped the sign of

29:55 strength from the bias is just you know uh it's what I just love to trade and on top of it is usually what you get is a horizontal line over here which is very easy to identify compared to you know slanted diagonal chart patterns which can be a little bit more subjective when you draw those chart patterns so here's an example of how it works right so you can see over here Market is in an uptrend goes up higher makes a pullback goes up higher it makes a pullback goes up higher couldn't quite break out yet then makes a pullback then over here it attempts to break up once again and in this point it did manage to break out so sometimes the ascending triangle could have just a two higher low right higher this uh this is one Higher low right this is previous higher low so let's do sometimes it could have three sometimes even four it really depends on how the price section of the market unfolds itself but as a bare minimum usually you want to look for at least two or higher

30:41 low to classify it as an ascending triangle chart better but for me personally I like to see at least right three higher lows so it comes up once again then makes another pullback then over here so I have one two and three so that is my preference level is three high lows so how can you trade the ascending triangle chart pattern so in numerous ways that you can trade it so one example could be you can look to trade the retest the break and retest so Market breaks out comes back and re-test this previous resistance that could become support and you can look for something as simple as like a hammer Candlestick pattern like this okay so this is a hammer Candlestick pattern telling you that the buyers are stepping in right and about to push the price up higher so you can look to enter next candle open your stops can go distance below the low possible Target just before this recent swing High to capture that one upswing

31:27 of this move right so there's one option that you can do another option is that you can look to trade the breakout because notice that you have a series of higher lows coming into resistance and this gives you logical plays to set your stop loss so let's say for example uh let's say for example Market over here breaks out right you can actually reference this swing low to set your stop loss possibly somewhere about here to set your stop loss so of course if you have more higher low right into resistance you can you can actually visualize that your stop loss is going to be tighter so just follow along with me for now so let's say over here the price didn't break out so there's nothing over here let's say didn't break up and in fact it came back down lower then it goes back up higher comes back down lower and over here and finally you break out over here let's say it breaks out over here so now at this point you can actually connect the upward trend line up slightly higher and when breakout at this point okay notice that

32:13 your stop loss now can be tighter you can just reference this swing low and set your stop loss somewhere over here right so you have kind of like two obstacles right for the market to to go through to reach your stops number one it has to break below this swing low that's obstacle number one number two it has to break this upward trend line right to reach your stop loss so you can see that your stop-loss is at a very favorable location it's pretty nice and tight by the same time right it's at a logical level so this is this is now you know why I like to see uh multiple higher lows into resistance right when I trade the ascending triangle chapter usually I look for at least LS3 but yes this chart example I provided only two so deal with it all right the next one on the list is the descending triangle chart pattern basically it's a bearish trend continuation chart pattern it's just the inverse of the earlier one so mark it is in a downtrend makes a

32:58 pullback continues down lower makes a pullback tries to continue down lower but can't break below this low before the buyer step in and push the price up higher then it hits down lower again just couldn't break below the lows before the buyer step in and push the price up higher and then this time now it tries to break the lows once again and what we have over here is what we call the an area of support okay so if the price can break below this area of support this is where we say the ascending triangle pattern is complete and the market could possibly hit down lower and if you look at the price section of this pattern you know that it's just it's a sign of just you know bearish bearish bearish look at the bias right the the buying pressure you can see that it's getting weaker and first time or rather over here it pushed to this highs over here all right then subsequently you try to push but it

33:43 couldn't even break Above This Heist before it continues down lower and then this third attempt you try to push again couldn't break Above This highs before it continues down lower so you can see that the selling pressure is getting stronger and stronger each time the buyers try to you know take control but they just get squashed by the sellers okay and again imagine someone who is long right whenever price comes into support they say oh buy price come support Buy price comes into support buy where will the buyer sell their stop-loss probably just below support and even if you are long and you have a stop loss let's say to protect you to get you off the trade your stop loss is in essence like a sell order to exit your long position so you can imagine here a cluster of stop loss accumulate just below support and if the price breaks below support that cluster of sales stock orders will be triggered that will you know fuel further selling

34:30 pressure down lower and on top of it right what about breakout Traders will say oh price is breaking out let me shot this market so you can see that there's a stronger selling pressure all coming together right to help push the price down lower so this is why our descending triangle pattern is a bearish trend continuation chart pattern so it looks something like this again Market over here is in the downtrend it hits down lower makes a pullback hits down lower pullback hits down lower makes a pullback heads down lower makes a pullback notice the pullback gets weaker and weaker that's why you have a series of lower highs lower highs lower Highs coming into this area of support okay and then when the price finally breaks below this loads of support you can look to cool shot and this is where we say that the descending triangle shot pattern is completed and the market could possibly head down lower okay so

35:16 again how can you trade the descending triangle chart pattern uh numerous way you can trade earlier share with you the break and re-test you can look to trade the first pullback you know the breakout if you wish to right so there are many ways many techniques that I've explained throughout this video and all those techniques are applicable right to trading the descending triangle chart pattern okay the bullish pennant right so this is a bullish Trend continuation chart pattern and here's how it looks like so Market is in an uptrend goes up makes a pullback goes up makes a pullback goes up makes a pullback goes up but couldn't break out of the highs makes a pullback goes up couldn't even break Above This highs that makes a pullback goes up so at this point you can see that the market right the volatility of the market is actually shrinking okay so if you just connect

36:03 the lines right you probably can connect the highs and the lows together so this is kind of like a symmetrical triangle pattern but on a much smaller scale right if you draw this there's the lines at the top and then the bottom right you'll know you'll be able to connect the lower highs and the higher low so when you see this type of price section it tells you that the market the volatility of the market is getting smaller it's telling you that volatility is shrinking and as you know right volatility in the market it's never constant it moves from a period of high volatility to low volatility and vice versa so during Market periods like this this is what we call High volatility Market period where there's a expansion in price where the market is trending in One Direction This is again uh usually a larger volatility Market environment

36:48 and when you compare to this this is where the volatility of the market is smaller and as you know right when volatility is low right you would expand you would expect an expansion in volatility so this way if the market does let's say breaks above this uh this this downward trend line over here this is again uh entry trigger that you can use to get long and to write to wave up higher so this is what we call it bullish uh pennant right so the pendant is basically this portion over here so on a chart it looks something like this okay okay there you can see it better so notice Market is an uptrend it makes a pullback goes up higher makes a pullback goes up higher makes a pullback goes up higher makes a pullback goes up higher so again you can connect the lower highs and higher low so this is

37:33 the lower high you connect over here and then there's the higher low that you can connect over here so notice again the volatility of the market just getting smaller and smaller notice the range of the candles over here just getting tighter notice the range over here of the candles right getting smaller and smaller so this tells you that the volatility of the market is shrinking and we would expect volatility to pick up and one way to get on board this uh bullish pennant price pattern is when the price breaks and close Above This downward trend line you can use it as an entry trigger to go long and to Catch the Wave up higher so again your stop loss again right so let's say over here is your entry right let's see if the price breaks and close above the uh the downward trend line is your entry your stop loss right can just go a distance before below the recent swing low so let's say we use this as the for example this is the recent swing where

38:20 your stop loss can go somewhere about here okay so entry is here stop loss will be somewhere about here let's call it SL now what about Target so there are usually when you trade such Trend continuation sharp patterns it's useful to Trail your stop loss maybe you can use things like a moving average to 50 period moving average to Thriller stop loss so if you overlay with the moving average like this right you can hold that position right until the price breaks and close below your moving average so that's one way to go about writing the train up higher another technique that you can use there is what we call again the price projection method which I talked about earlier but for the bullish pattern what you can do is you calculate what is the the length of the earlier move so let's say the earlier move is from here to hear from this lows to decide so let's say to simplify let's say from this highs down to the slows the

39:05 distance it moves is let's say twenty dollars for example okay so nothing to do with the numbers on this chart just come up with an example so what you can do is then you take the uh the lows over here right and you project up by 20 as your target level to take profit so let's say for example let's say this level here is 50 okay so you take this fifty dollars plus this range over here which is twenty dollars right and your target your target profit for this particular trade if you're buying the the breakout over here is at Seventeen dollars so seventy dollars is where you look to take profit so basically you're calculating the distance of this this highs to this lows from this highs down to this lows over here and then you project it up higher right to

39:51 determine right where you can take profit yep now another variation of the bullish panel right is what we call a bull flag pattern so it's similar to the blue pattern the story behind it is similar only the difference is the price action the weight unfolds is a bit different so if you notice earlier the blue panel right you have a series of lower highs lower highs and higher lows right as the price section you know gets Tighter and Tighter but for a bull flag pattern you don't have this price action what you have instead is kind of like a two parallel lines right so this is the first parallel line and this is the second parallel line so in fact you have a series of lower highs and lower lows all right and again the volatility of the market notice how it starts to shrink so once again right to trade this right when the price breaks above the

40:37 high of the flag pattern that again could be an entry trigger for you to go along if it breaks above the high or if you want to wait for a break and close that is fine as well and to set your stop loss usually you set it the distance below the low of this flag pattern somewhere about here okay so let's say if you place a buy stop order as your entry somewhere here this is your entry and let's say your stop loss will be somewhere here right a distance below this low so this is how a bull flag pattern works and this is how you can actually look to trade it next we have the bearish panel so this again is a bearish trend continuation chart pattern Market is in the downtrend goes down lower makes a pullback goes down lower makes a pullback goes down lower makes a pullback tries to head down lower but couldn't break below the lose then hits a pullback up higher but again failing to break out of this highs then it hits down lower again couldn't take down take up this low before it makes a

41:24 slight pullback which again failed to take out this Heist and then goes down lower once again so at this point you can actually connect the highs and the lows and notice at this point the volatility of the market is shrinking as well so if the price can break below this uh this upward trend line okay let's break let's say bricks and close below it we'll say that the bearish panel right is confirmed and the market could possibly hit down lower okay so to give you an example they look something like this so Market over here you can see it makes a pullback hits down lower makes a pullback heads down lower makes a pullback haze down lower couldn't break below this low over here before you Stitch another rally try to hit down lower just couldn't break below this low before it rally then it hits

42:11 down lower once again and finally when he breaks below this upward trend line that you can you know throw this is where we say the bare pennant is uh confirmed I used confirm with you know all the code and code over here because nothing is confirmed in trading but it's just kind of a lingo that we use to say hey you know the pattern is completed but just because it's completed doesn't mean it's guaranteed to work because it could be a false breakout pattern yeah so hopefully you understand where I'm coming from yeah so again uh we'll say that the pattern is confirmed right and the market cool would possibly you know hit down lower so again you you might hear me saying things like the mind could I'll never say things like guaranteed for sure 100 no no that doesn't work in trading right we are dealing with probabilities right never certainty I think that's a quote from Martin J Prince yeah so this is the uh

42:56 bare pennant pattern and of course it's cousin right it's what we call the Bear Flag pattern which again is similar notice how the price over here uh case down lower makes a pullback hits down lower then we form this uh bare flag pattern you can see the differences that you have a parallel line instead of you know uh the diagonal line converging for the pen and pattern but in this case we actually have a parallel line so when again when the price breaks below the low of this trend line okay over here right we say that the pattern is a confirm and the market could possibly head down lower okay I know I've spoke a lot about the chart patterns and stuff like that so let's do a quick recap to the things that you've just learned right first and foremost we spoke about the bullish reversal patterns at the start we talk about the double bottom where the price just made

43:42 a retest the bottom twice over here over here failed to break down lower and we have this neckline when the price breaks Above This neckline we'll say that the double pattern double bottom pattern is completed and the price could possibly hit up higher this is the head and shoulders pattern once again this is the left shoulder this is the head this is the right shoulder and this is the neckline if the price breaks above the neckline we'll say the pattern is confirmed right and the price could head up higher and then this over here is the triple bottom pattern right notice that notice the price tested once twice three times couldn't break out lower and when it breaks Above This neckline right we say that the market could possibly head up higher from there and then we spoke about the bearish reversal chart patterns all right let me zoom in right so again this is just the inverse a double top that's the ones test it twice

44:28 couldn't go up higher then when the price breaks below this neckline right we'll see that the double top pattern is completed and it could possibly head down lower this is the Head and Shoulders pattern I do apologize this actually should be what we call the inverse Head and Shoulders pattern and this is what we call the head and shoulders pattern is the left shoulder this is the head this is the right shoulder when the price breaks below this neckline the market could possibly hit down lower and this over here is the triple top test at once that's the twice tested three times and then when it couldn't hit up higher and let's say it does break below this neckline this Market could possibly hit down lower then moving on we talk about the bullish right continuation chart patterns we talk about things like the cup and handle pattern right so you can see the cup and handle usually the pullback the duration is slightly longer then we have

45:14 this consolidation here otherwise known as the handle right and if the price breaks out of this highs the market could possibly continue higher then we have this ascending triangle pattern where we have a series of higher lows higher lows let's say it makes another one another higher low into resistance if the price breaks above resistance right we say that the ascending triangle pattern is completed and could possibly head up higher then with the blue pattern where the price breaks above let's say the downward downward trend line right we'll say that again the trend could possibly resume and hit up higher same for the blue flag pattern as well then moving on we talk about the bearish right continuation chart patterns which again is just the inverse we have the inverted heading inverted cup and handle pattern we have the descending triangle pattern we have the bare pattern and the bare flag pattern

45:59 so again this is just a quick recap to the different patterns that you have just learned and I know it's a lot right because uh you know we talk about continuation patterns reversal patterns but don't worry if all this seems overwhelming to you because in the next section I'll walk you through the strategy here how do you actually use chart patterns right and implement it in your own trading we'll talk about the precise entries the exits the risk management the target profits so on and so forth so if you are kind of like you know Whirlwind right now don't worry things will make a lot more sense right where we move on into the trading strategy section right which is coming right now okay the first trading strategy that I want to share with you is what I call the double top false break so if you recall earlier I thought about the double top chart pattern and there's a way a technique that you can actually use to enter your trade with low risk

46:45 even before the price breaks below the neckline how do you do it so let me explain more in this example so you can see that the overall market right this is the chart of New Zealand against the US dollar right the daily time frame you can see that the overall trend of this Market is in the downtrend and what's interesting is that this Market has come towards an area of value if you're not familiar with that term it simply means uh areas on the chart where buying or selling pressure could come in so this over here is an area of value why is that because it's at an area of resistance as you know right resistance is an area where selling pressure could come in to push the price lower so once I see this on the daily time frame I want to go down to a lower time frame like the eight hour time frame and look for this specific uh chart pattern so an eight hour time frame it looks something like this on the eight hour time frame you can see that this Market

47:30 respecting this area of resistance tested once come down lower test that twice hit down lower and now we're back at this area of resistance once again and if you look at the most recent price action what do you see you see that actually a all right it's still a bit too early to tell but you can actually see that half of a double top pattern is already being formed so this is the first half of the double top pattern we could get another one over here and thereby over here is the neckline right and then you know forming this double top chart pattern over here so what we're looking for is actually this second portion right to form to show us a bearish price rejection so let's see what happens so in this case the market uh pays down lower lower then it starts to Rally up higher now

48:17 over here we are back at this highs once again and now I will double top pattern is near completion because as you know a double top pattern is so called only confirm right if it breaks below this neckline over here there's the neckline that we draw right in and if the price let's say hits down lower and breaks and close below this neckline we'll say that the double top chart pattern is completed but since we have numerous factors right working in our favor is it possible to actually enter the trade before the price reaches the neckline another is is yes how do you do that because look at this over here you know the overall Market on The Daily time frame is in the downtrend you know that this is an area of resistance that I've highlighted earlier and you can see over here we have actually a entry trigger the signal that you know the sellers are stepping in and about to push the price lower What's significant about this

49:03 Candlestick pattern is what this is what we call a shooting star pattern right this tells us that you know the price I'll do a quick tutorial on the Candlestick pattern the price open over here and at one point in time you try to push the price up higher okay but when reaching near the highs the seller suddenly came in and took control and pushed the price down lower and eventually closing near the lows of the day so this is where you have this what we call a shooting star pattern so the story is that the bias right there called overwhelm at this highs over here selling pressure came into control and closed near the lows of the day over here as you can see over here near the lows of this uh candle okay so this is an entry trigger to go shot so what you can do is go shot on Nick's candle open so let's say you go shot on next candle open let's you know highlight in green over here okay let me just change this to Green let's say that is our entry point I'll just remove the gray box right since it's quite hard to see

49:49 is there a darker green maybe this darker green over here okay now what about stop loss right so usually I set my stop loss a distance away from price structure a distance away from the highs the distance away from resistance so know that this is resistance right you want to set your stop loss somewhere about here so get an objective way to do it right a quick tutorial again you can use an indicator called the average true range search for ATR click on this you come up this one over here so I like to use a 20 period ATR I like to use SMA simple moving average click ok so what you see over here is that the ATR the value right now is about 41 42 Pips over here let's make it 42 Pips so what you're going to do is to find out what is the highs of this candle over here and then you add on 42 Pips so I'm going to get my trusty calculator and I find out what is the high over here so the high of this candle shown on trading

50:35 view is about uh 0.6575 right so the high is at six six five seven and five zero point six five seven five I'm going to add 42 Pips to it so it's plus 0.0042 and that gives me a value of let's see 6617 0.6617 how do I get this value 0.0042 again it's over here there's a 20 period ATR how do I get 6575 again that's simply the high of this candle over here and you know you take six five seven five plus 42 beeps you get six six one seven so let's see where is six six one seven six six one seven will probably be let's change this to rate to Signal or stop loss 0.6617 okay so our stop losses over here

51:22 this red color line over here great now what about Target so since you are now trading right even before the double top pattern is completed you can actually be in profit even before the price breaks below the neckline so here's the thing about neckline right just as to you know why sometimes it's not uh the best time to shop the markets when the price just because the price breaks below the neckline because if you think about this logically this is actually an area of support the price would re-test the neckline and then bounce up higher and continue this uptrend that could happen so again if you want to be a little bit conservative you can actually have your target at the neckline right where people are looking to shortest Market you already take profit right so you can exit half your position right at this neckline over here okay let's just change this to Blue okay so let's see this is your first Target okay and then if you let's say you only have a secondary Target you can do different

52:09 techniques you can you know let's say for example Target this extreme swing low over here as your second target that's fine as well so let's this is our

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