MASTER

VOLATILI
TY
75INDEX
I
NTRODUCTI
ON
Beforey outrade,
onemustknow
thatyoumust
l
ear nallaspects
oftrading.
Beforet r
ading
volati
li
ty75
i
ndex, youmust
beat raderand
hav ehad
general i
dea
abouthowt he
mar ketfunction
becauset hereisnov astdif
fer
encebet weent r
adinginthegeneralfor
exmarketandsy ntheticor
volati
l
ity75i ndex.I
trequir
essamet echnicalandanalyticunder
standi
ngs.I
nthisbook, Iwillbe
tal
kingmor eonv ol
ati
lit
y75indexandspeci fi
ct echni
quesandtricksi
nbecomingasuccessf ul
andpr ofi
tablevix75trader
.Therei
snodi fferencebetweent r
adi
ngcur r
encypai
rsandv i
x75or
volati
l
ityindextradi
ng.Theyallcutacrosst hesamest rategi
esonlywit
hsli
ghtdiff
erenceand
technique.

Asthenamei mplies,
Volat
il
it
yisabi narypairwhi
chhasmanymov ementsi
nit
smar ket
.
Tr
adingthi
spaircanbepr ofi
tabl
ewi thi
nfewsecondsandatthesametimewipeyouraccount
wi
thinfewseconds.I nt
hiscase,thet r
aderneedsanut
mostexperi
enceandknowledgeneeded
i
ntradi
ngvolati
l
ity75index.

Let’
sproceedtoourLessons.Byreadi
ngthisbookwearemor ef
ocusandcent
eredonvolat
il
it
y
75index.Wewouldanalyzesomegener al
knowledgebackgr
oundofsomespeci
fickeyl
essons
you’
llneedbef
oreputt
ingyourstr
ategi
estouse.
1.CANDLESTI
CKSANALYSI
S
Oncey ouenteranycount ry,youareobligedtodoexact l
ywhatt hecount r
yy oufi
ndy oursel
f
i
ndoes.Candl est
icksar ejustli
kethelanguageoft hemarket.I
magi neyoufindyour selfina
placey oudon’tunderstandt helanguaget heyarespeaking,howwi l
l y
ouf i
tin?I
t’
st hesame
thingthetradingmar ket,t
hecandl est
ickswi l
ltel
lyouwhati sgoingoni nthemarketsoy ou
woul dhaveideaaboutev erymov eont hemar ket.Ther
ear elot
sofcandl esti
ckstypesand
pat t
erns.Howev er,sincewear especificall
yonv ix
75,Iwill
explainspecif
iccandlest hat
wor kspecifi
call
yonv ix75.

Let
’sbr
ief
lyl
ookatwhatconsi
stofacandl
eingener
al.

Acandl
econsi
stofabody
,ahi
gh,
alowandawi
ck.Ref
ert
othepi
ctur
ebel
ow

I
notherchar
ts,
thebul
li
shcandl
esarecol
oredwhit
ewhil
ethebear
ishcandl
esarecol
ored
bybl
ack.Thecol
ordoesnotmatt
er,
theyar
ejustpr
efer
encesi
nvari
ati
onstotr
aders.

TakeNotet
hattheOpenoftheBul
l
ishcandl
eisthecl
oseoft
hebeari
shcandl
eandthe
cl
oseofabull
i
shcandlei
stheopenofabeari
shcandl
e.Thi
siswhatImean,f
orbul
l
ish
candl
es,
thepri
ceopensbel
owandclosesabove.

Forbeari
shcandl
es,
thepr
iceopensabov
eandcl
osesbel
ow,
youcanr
eferbackt
othe
pi
cture.

Thewi
cksr
esul
tsasaf
orm ofr
eject
ionwher
epr
icear
eli
kel
ytor
ever
se.

Nowl
et’
sgett
ocer
tai
ncandl
esdoeswor
konv
ix75.

ENGULFI
NGCANDLES

Ther
ear
etwoengul
fi
ngcandl
eswewi
l
lbel
ooki
ngat
.

BULLI
SHENGULFI
NCANDLE

Thisi
sacandl
ethatconnot
est
heprevi
ouscandl
e.Thatmeansitengul
fst
heprevi
ous
candl
e,t
hecl
oseofthebull
i
shcandl
ecl
osesabovetheprev
iousbeari
shcandl
e.Ref
ertot
he
pi
cbel
ow

Nowl ookatt
heBul l
ishcandl
e,youcanseeithast ot
all
y
engul
fedthebeari
shcandl
e,i
thasclosedaboveit,
itisasignthatt
hebull
sorbuy ersare
l
ikel
ytocomei nt
othemarketany
timesoon.Wewi llfur
therl
ookathowtoi mplementthis
candl
etypesoncewegettosupportandresi
stancelevel
s.Howdowespotabul l
ish
engul
fi
ngcandle?

1.Thepr
evi
ouscandl
emustbebear
ish

2.Thebul
l
ishcandl
emustengul
fthepr
evi
ouscandl
e

BEARI
SHENGULFI
NGCANDLES

Thisi
stheopposi
teofbul
li
shengulf
ingcandles.Thi
siswherethecl
oseoft
hebear
ish
candl
eclosesbel
owthatofthepr
eviouscandle(bul
l
ishcandl
e).

Howdowespotbear
ishengul
fi
ngcandl
e?

1.Thepr
evi
ouscandl
emustbebul
l
ish

2.Thebear
ishcandl
emustengul
fthatoft
hepr
evi
ouscandl
e.
 Beari
shengul
fi
ngcandleshowssi gnsofmar ketr ev
ersalswher
emar ketisl
ikel
ytor ev
erse.
I
tdoesnotmeant hatanyt
imethereisabullishengul f
ingcandl
eorbearishengulf
ingcandle,
marketwoul
dreverse,t
her
earev antagepoint satwhichthesemarketswouldreverseonce
wespotthem whi
chwi l
lbeournextt opi
ctol ookat.

PRI
CEREJECTI
ONCANDLES

1.HAMMER

2.HANGI
NGMAN

Thesear
ethr
eecandl
est
haty
ouseewhent
her
eisr
eject
ion.

HAMMER

Hammeri s
madeupofal ongwi ckandashor tbody.Bynowwehav elearntandknownt hebodyand
wicksofacandle.Ther esultofthi
scandlei
sbecausepr icehasbeenrejectedorpushedup
that’
swhywehav et helongwi ck.I
tmeanst hebuyersaretry
ingtocomei nt hat’
swhyy ou
canseethatthewi ckisbelowandt hebodyi sabove.Hammeroccur sinadownt rend.We
will
soonlookatv antagepointsinhowtoent ertr
adeswiththiscandl
espr i
cer ej
ecti
ons.

HANGI
NGMAN
 Hangi
ngmani
sbasi
cal
l
ythesameashammer
.The
onl
ydi
ff
erencei
sthat
,

1.Hammeroccur
sinadownt
rend

2.Hangi
ngmanoccur
sinanupt
rend

I
tssimil
ari
tyi
sthattheybot
hperfor
m samef
unct
ion.Hammeri
sforabul
l
ishr
ever
sal
and
hangi
ngmani sforabeari
shrev
ersal
.

NOW,
thequest
ionweal
lask,
whatst
rat
egycanIuset
otr
adev
olat
il
it
y75i
ndex,
ther
ear
efew
ef
fecti
veworkingstr
ategyIwoul
dliketoshare,
Inrealt
ermsitworksin90%ofmar ket
.We
wouldelabor
ateindetai
ls5prof
it
ablestr
ategi
esfortr
adingv
olat
il
ity75index.Theyi
ncl
ude,

1.SUPPORTANDRESI
STANCE

2.TRENDLI
NES

3.RETESTLEVELSANDENTRI
ES

4.SI
MPLECHARTPATTERNS

5.FI
BONACCIRETRACEMENTTOOLS

Allthi
sst rategi
eswor kindependentl
yonthei rownandcanbet radedindependentl
y,
thereforey ouasthetraderistopickoneandmast eritorharmonizeallanduset hem
togethersi ncethemar ketmovesinv ar
iat
ion.Themostbeaut i
fulthi
ngisthatyouwillseeal
l
thi
sst rategiescomet oplayalongonepointort heother.Letusbr i
efl
ydiscusshowt o
effecti
velyut i
li
zethi
sst r
ategi
clessonsonv ix75.

SUPPORTANDRESI
STANCELEVELS.

WEBUYONASUPPORTANDSELLONARESI
STANCE.
Mostatt imeswehearpeopl esaypr i
ceisatsupplyordemand, Thesesupplyanddemandar e
basicall
ysupportandresist
anceLev el
s.Thebeautif
ulthi
ngwi thsuppor tandresist
ance
especiall
ywi t
hvix75isthatitworksevenont he1mi ntf,
sowi ththaty oucanevenanal yze
vix75on1mi ntfusi
ngsuppor tandresi
stanceunli
keforexindicest hatyouwouldhav etodraw
them onhi ghert
imeframelikeh4upwar d.Nowi maginethis,
bui l
dingthathasnopi l
lars,
how
wouldt hatbuil
dingst
and?Itwi l
ldef
ini
tel
ycoll
apse,becauset hatiswhati shol
dingthebui l
ding
together.Let’
sgetstr
aightt
oi t
.

Aresi
stanceorasuppor
tismadeupoft
wopoi
ntst
hatar
ecommonl
yseenont
wopoi
ntsoft
he
market
.
SupportandResi
stancear
ethemostcommonl
yt r
adedstr
ategi
esint
hemarketbot
hwith
i
ndicesandvolat
il
it
y,i
tal
wayssuppor
tandr
esi
stancewit
hlit
tl
ecandl
est
ickknowl
edgeand
appli
cati
on.

Howdoweconnectsuppor
tandr
esi
stance,
wedosobyl
ooki
ngf
oracommonhi
ghanda
commonl
ow.

Inthepi cturebel
ow, youcouldnoti
cet hattheyar
etwocommonpoi ntst
hathasbeenmar ked
andj oinedtogether.Soindrawingar esi
stanceyoulookforapointwher
epricehasrall
iedupt o
createapoi ntAt hencomesdownandgoesbackup, onceit
’si
nlinewit
hpointAmar ketis
l
ikelytof all
,whenitcomest ovix75,supportandresi
stanceworksabout90%,sotr
ader swill
most lysellatpointBbecauseitisinlinewithpoi
ntAandi tmayf al
l
.RememberweSELLona
RESI
STANCENOTBUY.

Taket
hepi
ctur
eabov
e,Vi
x75M15Tf
.

Let
’st
akepoi
ntt
her
edboxandpoi
ntAandgr
eenboxaspoi
ntB

Pri
ceral
li
edupt ocreateapoi ntthat’sPointAt heredshortsquarebox, t
henrall
ieddownand
wentupagaint ocreatepoi ntB(thegr eenshortbox)tomeett hef i
rstpoi ntandthencamedown.
Whatwewi ll
doi stoi mmedi atelySELLonPoi ntBbecauset hepsy chol ogybehindisthatwhen
i
tgetstothatpoint,itwillsel
l.Thisisonesecr etabout75Iam di sclosing, Af
teraresi
stanceA
hasbeenini
tiated(
redr ectangle),secondt ouchesnor mal
lyhold,thet hirdtouchisnotadvisabl
e
toent
erinasi tmightbr eakthesuppor torresi
stance.Athi
rdlikeapoi ntC.

Iwi
l
lexpl
aint
hatwi
thapi
ctur
ebel
ow
Nowl ookatt
hethirdtouchofit,itcoul
dn’tholdforlonger,nowcompar et
hefi
rstt
ouchorpoint
,
thesecondorpoi
nt,andt hethir
dt ouchyoucoul dseethesecondt ouchhel
ditmorethanthe
thi
rdone,sofort
het hi
rdone, i
nsteadofsel l
ingimmedi at
ely,y
ouwai tf
oracandl
esuchas
BEARISHENGULFI NGCANDLEt otelly
out hatitwi
llsel
l,t
henf ort
hatyouscal
pthesellal
i
ttl
e
becauseitmi
ghtnothol dlonger.

Nowlookattheyel
lowregi
onshadedy el
low,
youcoul
dseebear
ishengul
fingcandl
esonthe
r
esi
stance,
soy ouscal
ptheli
tt
lesel
lfor15minor30minut
esbecauseit
’sonat hi
rdt
ouchand
i
tmightbreakeasi
l
y.Nowseeaf
tert
het
hir
dtouchy
oucoul
dseet
hatpr
icebr
okei
tandf
urt
her
wentup.

Nowthatwehav
eunder
stoodhowr
esi
stancewor
ksonv
ix75,
let
’sseehowi
twor
ksonsuppor
t
aswel
l.

DRAWI
NGSUPPORT

Justaswesawhowwedr awresi
stance,
wei
mpl
ementt
hesamescenar
ioi
ndrawi
ngsuppor
t.
Wedr awsuppor
tbyconnect
ingtwoLowsPoi
ntAandBthatar
eonsameli
ne.

Vi
ewt
hepi
cbel
ow

Priceral
li
eddowntomakepointA(yel
lowr ectangl
e)andwentupandcamedownt omeetpoint
B(redrect
angl
e).Youcoul
dseethatpriceimmedi at
elyshotorbought
.Wearecur
rent
lyon
Vix75M15t f
.Sowhatwedoont hesecondt ouchisyoucanBUYi mmedi
atel
ypri
cegetst
her
e,
you’l
lBUYandputaSt opl
ossbelowther esi
stancealit
tl
efarther
.

Nowl
et’
sanal
yzet
hechar
tbel
ow
BeforeIcont i
nuelookatthechar tandseetel
lyour
sel
fwhatyouseeont hethir
dtouch(bl
ue
box).Youcoul dseepricecouldn’
tholdonthethir
dtouch,
itbrokeandwentdown.That’sthe
secret.Forthethi
rdtouchesinsteadofsell
i
ngorbuy i
ngatthesupportorr
esist
ancethi
rdlevel
s
waitforBULLI SHorBEARI SHENGULFI NGCANDLESandscal pt hef
or15or30mi nutesand
cl
osey ourt
rades.

Nowl et
’sseeabitmoreofthehammerandt hehangi
ngman.Wheny ouspotahammerora
hangi
ngmanonasuppor torresi
stance,
itt
ellsyout
hatpri
cehasbeenrej
ect
edonthatzone
andthatlevel
andpri
ceiseit
herli
kelytorev
erse.Nowlet
’slookatt
hepicbel
ow
NowIdi dsaythathammermeansmar keti
sl i
kelyt
oBUYespeci allyont hesuppor t
,Nowlet’
s
l
ookatt hechar tabove,seewhathappenedont hesupportwherethel ongrectangleboxis,t
hat
wasahammer ,itwasreject
edonthesuppor t,nowwatchwhathappenedaf t
ert herej
ect
ion,a
strongengulfi
ngcandl ethenaft
erwhichmar ketwentup, nowwat chtheent r
ylev el
,wher
eive
drawnt hethi
nhor izont
alli
ne,t
hat’
swher eyouexecutet hetr
ade,andputaSLbel owthe
resist
ance.Soweseet heconcept,i
mmedi atelyyouenteredwewer esooninpr ofit
.

Somewoul dhaveboughti
mmediatel
yatthesuppor
tatthesuppor
t,t
hedif
fer
enceisthatt
hey
arebuyingbecausetheyknowmarketwouldmoveupal i
tt
leandyouarebuyi
ngbecauseyou
arereadingandlooki
ngatwhati
sactual
lygoingon,
it’
smoreliket
hemarketi
scommuni cat
ing
withthetrader
.

ABOUTSUPPORTANDRESI
STANCEONHI
GHERTI
MEFRAMES.

Don’tt
radeonahi
ghert
imef
ramesuchasH1andH4i
fyouhav
easmal
lequi
tywi
thv
olat
il
it
y
75index.

Thisisther eason,
Let’ssayyou’r
etradi
ngh1timef rameonsuppor tOncethecandlesgettothe
supportlevelthenyouwanttobuy ,whathappensist hatwit
htheh1t i
meframepricesarel
ikel
y
tobreakt hesupportorresi
stanceandcauseal i
tt
lef akeoutbefor
eitcomesbackorr ever
ses,i
f
youareont hesmallerti
meframe, y
ougetanear l
ierconfir
mationifi
twil
lactual
l
ybuy .

HOW TOTRADEWI
THSUPPORTANDRESI
STANCEVI
X75

Let
’sl
ookathowt
ohar
moni
zesuppor
tandr
esi
stancewi
thhi
gherandsmal
l
ert
imef
ramesuch
asusi
ngH1andH4andusi
ngent
ri
essuchasM15andM5t
imef
rames.

Wheny ouopeny ourchar

t,t
hethi
ngy oudois,Fi
rstofall
Drawwhat everyoucurr
entl
yseeon
thehi
gherti
mef rame,ify
ou’r
eseeingasupportont heh1orH4t i
mef rameitmeansthatyou
shoul
dbelookingf ormoreBUYsrathert
hansell
ing.sowhathappensisthatyouwil
lbelooki
ng
formoresupportlevel
sonthem15andm5t imef r
amest otr
iggeryourbuyopport
unit
ies.

Thi
sisv
ix75H1t
imef
r ober21st2019
ameonOct

NowwhenIopenedmyt r
ade,thefi
rstt
hingIsawwast haton21stOctoberwewer ecur r
ent
lyon
asupport
,soIdrewtheli
netoconnecttomysuppor t,donotpayat t
enti
ont ot
her estofthe
st
candl
esthathasoccur
redbecauseon21 Oct ober,t
hatwaswhatwashappeni ngont heh1
ti
mef r
ame,sonowhowdoIent ermytrades?Iknowt hatifI
’
m onsuppor tIwi
llBUY, soIwil
l
swit
chtothem15orm5t i
mef rameandt henIwil
ll
ookf orsupportar
easwhereIcanBUY.

Wat
cht
hepi
ctur
ebel
ow
Nowt hi
sisthem15t i
mef r
ameofwhatwashappeni ngon21stOct ober,remembery ouast he
tr
adershouldbemor ei nterestedinbuyingt hansell
ingbecausegener al
lyont hehigherti
me
fr
amewear eonasuppor tlevel,nowwat cht helev
elsoft hem15, thesuppor tlev
els,thatis
whatIwill
belookingfor ,Iwillbelooki
ngt obuymor eafterithasreachedmysuppor tlev
el
becausewear emor einterestedi nbuy
ingt hanselli
ng.Soany t
imepr i
ceget stothesuppor t,y
ou
BUY.Remembert hesecondt ouchandt hir
dt ouchandt hetricksIhighli
ghted,thesecondt ouch
normall
yholdswhilethet hirdtouchisli
kelyt obreakit.Remember !

LETUSWATCHANOTHEREXAMPLEWI
THARESI
STANCE

ober18thIopenedmyv
OnOct ix75t
radi
ngchar
tandIwant
edt
oanal
yzet
rade,
soaf
tergoi
ng
thr
oughthemar ket,Isawaresi
stance,
sowhatyoudoistoconnectasseeninthepi
ctur
e
above,Nowsoaf terdoingt
hisr
ememberifpri
ceisonaresi
stance,weSELL.NowIwillmov
eto
mysmal l
ert i
meframeM5orM15, nowlet
’sl
ookatthechar
tbelowforM5andM15and
October18th.

Looki ngatthepict
ureabove,youwoul dnoti
cethatthemarkethasrespectedalmostallt
he
resistancelev
elsandt heni
tSOLD.Youcoul dseehowt hemar ketwasfall
i
ngatt heresi
stance
l
ev el.Soinbri
efafteryousawt hatpr
iceiscurr
entl
ymov i
ngunderar esi
stance,youwill
make
useofal ltheresi
stancelev
elsbecausethepsychologybehi
ndi ti
sthati
twi l
lsel
lsincei
t’sona
resistance.

ASUPPORTTURNSI
NTOARESI
STANCEANDARESI
STANCETURNSI
NTOASUPPORTAFTER
BEI
NGBROKEN.

Let
’sanal
yzet
hechar
tbel
owcar
eful
l
y
Let
’smakeconcr
eteanal
ysi
s.

Number1-wat
cht
her
edr
ect
angul
arbox,
fir
stofal
li
twasasuppor
tri
ght
?

Number2-nowwat ch,whenitgotbrokenandcamedown, watcht hegreenl

i
neandgreen
r
ectangul
arbox,t
hatoldsupportnowbecameanewr esi
stance,soy oucoul
dseethatwhen
r
icegotther
e,i
trever
sedandsol dbecauseitnowser
vedasar esistance.

Number3-nowwatchtheoval
,pr
icebr
okethr
oughther
esistance,t
heoldresi
stancehasnow
becomeanewsupportlev
elsowhenpri
cegetst
othatl
evel,
andi tbouncesup.Hopeweare
fol
lowi
ngcl
osi
ng.

Afterpri
cebreaksthr
ougharesi
stanceandgoesup,andst
artmovi
ngupbackt
othat
resist
ance,
youwi l
lBUYbecausetheresi
stancei
snowasupport
Letsf
ocusonthischartabov
e,nowseewhathappenedi ni
ti
all
y,i
twasaresi
stance,thenafter
pri
cebroket
hroughandwentup, i
tcamedownt othatsupportwhi
chwasapr evi
ousr esi
stance
sowebuyf r
om there.Hopewegetthewhol
egist?Sotheresist
ancewhenitgotbrokenitnow
becameasuppor t
.

Let
sseeanot
herchar
t

Seet
hei
magebel
ow
Nowwatchthesupport(
yell
owrect
angle),i
twasasuppor tthenpr i
cebrokethough,wentdown
andcamebackup,nowwat cht
heredbox, itbecameanewr esistanceoftheoldsupportso
pri
ceFel
lsoweSELL.Sowecansel lst
raightwayf rom t
hereorl ookforpri
cereject
ioncandl
es
suchashangi
ngmanf ol
lowedbyabearishengul f
ingcandlet henweSELL.Soy ouwoul dnoti
ce
thatt
heol
dsupporthasnowbecomeanewr esist
ance.

I
nanutshel
l
,

1.WHENASUPPORTI
SBROKEN,
THATSUPPORTBECOMESANEW RESI
STANCEWHEN
PRI
CEBROKESI
TANDSTARTMOVI
NGUP

2.WHENARESI
STANCEI
SBROKEN,
THATRESI
STANCEBECOMESANEW SUPPORT
WHENPRI
CESTARTMOVI
NGBACKTOTHATRESISTANCE

SUMMARYOFSUPPORTANDRESI
STANCELEVELS
1.BUYONASUPPORTANDSELLONARESI
STANCE

2.SUPPORTANDRESISTANCEWORKSPERFECTLYONM5, M15ANDH1.USEH4ANDH1
FOROVERALLTRENDOFMARKET.HOWEVER,M15ISRECOMMENDEDASMORE
SUPPORTANDRESISTANCEAREASARESPOTTED.

3.I
FMARKETI SONASUPPORTORMOVINGABOVESUPPORTONAHI GHERTI
ME
FRAMELIKEH1,MAKEUSEOFTHESUPPORT(
BUYOPPORTUNI
TIES)ONTHESMALER
TIMEFRAMELIKEM5ANDM15.

4.I
FMARKETISONARESISTANCEORMOVI
NGBELOW ARESI
STANCEONAHI GHER
TI
MEFRAMELIKEH1,
MAKEUSEOFTHERESI
STANCE(SELLOPPORTUNI
TIES)ONTHE
SMALLERTI
MEFRAME.

5.SUPPORTANDRESI
STANCEWORKSPERFECTLYONM15,
WEUSEH1TOSPOTTHE
SUPPORTORRESI
STANCEZONESANDUSEM5ORM15FORQUICKERENTRI
ES

Wi
tht
hisy
ouhav
ethepot
ent
ial
ofmaki
ngmor
eaccur
ateandsuccessf
ult
rades.

TRENDLI
NES

Trendli
nesareal
soonepower f
ulstr
ategi
cwayoft radi
ngwithvolat
il
it
y75index.I
t’
sthesame
scenar
ioofsuppor
tandresi
stance.Theonlydi
ffer
enceissupportandresi
stancemoves
hori
zontal
l
yorweplotthem hor
izont
all
ywhileTRENDLINESmov eorar epl
otteddi
agonal
ly.Thi
s
i
soneact i
vewaytotr
adewithv i
x75becausevix75issaidt
obeat r
endymarket.

Let’
slookathowt oplott
rendl
ines.I
ntheexplanat
ionIdi
dmenti
onthaty
oupl
ott
rendli
nes
whent hemarketi
strendi
ngthusmov i
ngdiagonall
ysoyoulookf
ort
wocommonpointsonthat
tr
endingmarket.

Let
’sl
ookatt
hei
magebel
ow
Thiswasamar ketthatwasmov i
ngup, i
twasmov ingupwhi leret
raci
ng,soPri
cer
alli
edupand
thencamebackbuti tcouldn’tmeett hesamepointwithorinl i
newiththesamefi
rstpoi
nt,
now
thatbecomestwopoi nts,
sowhathappensi sthatyouconnectt hefir
stpoi
ntandt
hesecond
pointandthenext
endt hetrendl i
ne, sowhathappensi sthatifi
tmov esupandcomesdownt o
meeti tf
orthet
hir
dt i
mei tislikel
yt omov ebackup.Sof ortrendli
ne,youneedatl
easttwo
pointstobeabl
etoexecut eyourt radeont hethethir
dpoi nt
.

Nowl
et’
slookatt
hei
mageabov
e.

Let’
st aket hef ir
stpoi nt,pr
icecamedownt heret ocreatepointA( bluebox),Thenitrall
iedup
andcamedown, butitcoul dn’tcomeatt hesamepoi ntaspoi ntA, soweconnectpoi ntpoint
A(bluebox)t opoi ntB( r
edbox)t henwewai tforpricetomov eupandcomedownt obei nl
ine
withpointAandBj ustast hepi ctureshowst hegr eenboxaspoi ntC, t
henoncepr iceget sto
pointCAwet riggerourbuy ,orwai tforourrejectioncandle,andy oucanseeahammercandl e
ont heliner ej
ect edgi vi
ngy out heconf ir
mat i
oni tsmov i
ngup.Sooncei thi
tsforthet hi
r dti
me
all
y ouwi l
l doi stoBUYbecauset hepsy chologyi sthatitwil
lmov eup.Nowwhenwewer e
l
ooki ngatsuppor tandr esi
st ance,wesai dthatf orsupportandr esistancethesecondt ouches
orpr i
ceorpoi nthol ds,butf ortrendlines,weneedt hethir
dpr i
ceorpoi ntt
obeabl etoexecut e
thet r
adet hat’sy ouwi llneedt wopoi ntsortouchest obeablet ot akethetradeeit
hersel lorbuy

LET’
STAKEANOTHEREXAMPLE

Thi
sti
mel
et’
suseanuppert
rendl
i
neal
so
Sousi ngt hesamei deaoft
hel owertr
endline,weusethesamei deatoconnectt
ot heupper
trendline.Soafterpri
cehit
sthet hi
rdtouchweSELL.Remembert hi
sisnotli
kesupportand
resist
ancewhenwecanbuyorsel l
ont hesecondtouch.Fortr
endli
nes,y
ouneedt hefi
rstand
thesecondpoi ntinabletotri
ggeryoursellorbuyonthethir
dtouch.

SUMMARY

Foruppert
rendl
i
ne,
weSELLont
het
hir
dtouch

Forl
owert
rendl
i
ne,
weBUYont
het
hir
dtouch

Iti
snotgoodt odrawlongertr
endlinesont i
mef r
amessuchasm5andm15aspr i
cewillbe
abl
et openet
rateandbreakthem easil
y.Iti
salwaysgoodtoexecuteyourt
radeonat hir
dl i
ne
aft
ertheTHIRDTOUCHt hat’
saft
erspot t
ingyourfi
rstandsecondzonesonthetrendl
ine.
t
h
Anythi
ngonthe4 t ouchonsmal l
ert i
mef r
ameofat r
endli
neisli
kel
ytobreak.

I
tisgoodtodrawthelongert
imefr
amesort
radeonthe4tht
ouchift
hedirect
ionoft
hecur
rent
t
rendissuperst
rongorhasastr
ongmomentum ofcont
inui
ngthatt
rend.

TRENDLI
NESWORKSONALLFRAMES, USEH1UPWARDFORGENERALOUTLOOKANDM5OR
M15FORQUICKERENTRI
ESASIEXPLAINEDI
NHOW TODOWITHSUPPORTAND
RESI
STANCE

RETESTLEVELSANDENTRI
ES

Ret
estconfir
mst hedi
recti
onofabreakouttomovet
otheopposi
tedi
rect
ionaf
tert
hatsuppor
t
andresi
stanceortr
endlinehasbeenbrokenout
.

Nowl
et’
slookathowt
hisr
etestent
ri
eswor
k.

Ret
esthappensonl
yift
her
ehasbeenabr
eakoutofasuppor
torar
esi
stance.Nowl
et’
s
di
scusswi
tht
hei
magebel
ow.

Thismar kethasbeenmov i
nginsuppor tandr esi
stancezonessol et’
spayat tent
iontothe
breakout .Nowaf t
eritbrokeoutf r
om t hesuppor tzone,l
et’
slookcar ef
ull
ywhathappenedaf t
er
i
tgotbr okenf r
om t hesupportlevel.Afteritgotbrokenfrom t
hesuppor tzoneandcamedowni t
reversedandwentupagai nbackt othebr okensuppor t
.Thatiswhati scall
edt heRETEST.Itis
testi
ngt hatzonet ofur
therconf i
rmt hatthesuppor thasbeenbr okenandi tsreal
lymov i
ngdown.
Soaf terittestedthatzone, i
twasr ejectedandsol d,youcouldseet hatwasabear i
shengulf
ing
candleandf urtherwentdownt osel l
.Soy ouwi l
lonlySELLafterithasretestedthatzoneand
hasbeenr ejected.

Sampl
e2
Pricebr okether esistancethenr eversedbackt otestt
hatr esi
stance, y
oucouldseet herej
ected
candl ewiththewi cktell
ingyout her etestwassuccessfulandpr i
cei sgoi
ngt oshootupandwe
canseecl earl
yitwentupaf terther etest.It
heref
orewoul dalwayssuggestt hat,
aftera
breakout ,t
her eshouldbear etestbef oreenter
ingthemar ketortakinganytrade.Enteri
ngthe
mar ketaggr essivelyi
snotadv i
sed, alway swai
tfortheoppor t
uniti
est ocome.Thati showthe
mar ketwor ks.Alway swai tfortherightoppor t
unit
iesotherthanforcingthem.Immedi atel
yit
gotr eject
ed, wequi cklyBUY.

SI
MPLECHARTPATTERNS

Therearelot
sofchar
tpatt
ernsi
nthemarket
,howeverwewi
l
lbespeci
fi
cal
l
ylooki
ngatchar
t
patt
ernsthatwor
kspeci
fi
call
yonvol
ati
l
ity75i
ndex.

1.Headandashoul
derPat
ter
n

2.Doubl
eTop(
M pat
ter
n)andDoubl
eBot
tom(
W pat
ter
n)

3.Tr
ippl
eTopandTr
ippl
eBot
tom

4.Tr
iangl
es

Wewi
l
lel
abor
ateeachoft
hem speci
fi
cal
l
yanddet
ail
ed.

HEADANDSHOULDERSPATTERN

Takethehumanbodyf orexample.Pi
ctur
etheheadofahumanwithi
tsshoul
der
s,youwil
l
noti
cethattheheadofahumanbodyi sabovetheshoul
derandt
heshoul
dersar
einthesame
l
inewitheachotherev
enifitst
il
ted.Nowlet
’sseethepi
ctur
ebel
ow.
 Lookingatt
hepatter
nabove,wehaveourheadand
shoul
der
spatt
ern,
theRI
GHTSHOULDERandt heLEFTSHOULDER, looki
ngatt
heimagebelow
i
showwear enamingi
tornamed.Thel
eftshoulderandri
ghtshoul
der.

Let’
staket hi
sscenar i
o.Pr i
cemov edfrom asuppor tuptocreateapoi ntAandt henmov ed
downt othesuppor tandr al
li
edupagai ntopoi ntA,andbrokether esistancetocr eateapointB
andcamedownont hatsamesuppor t,thenitwentupt ocreat
eapoi ntCandmov edandthen
ral
li
edbackupt othesuppor t,t
hisisapat t
erntell
ingusthatmarketi sl i
kel
yt obreakt he
supportandmov eddown.Thecommonsuppor tonwhichthepricesr everseiscal l
eda
NECKLINE.Wheny outakey ourhumanbody ,t
het woshoulder
sar econnect edt ot heneck.So
wear eusingthesamescenar io.Unli
kecurrencypairsthatwesellonl yafterbreakout, wecan
sel
limmedi atel
yont herightshoulderwheni tcomest ov i
x75orwai ttilli
tbreakst heneckli
neto
giv
ey ourealconf i
rmati
onsoft hetrend.

Let
’st
akear
eal
char
tanal
ysi
stodev
iset
heexpl
anat
ion

Onesmar
tanal
yti
csi
sthatheadandshoul
der
swor
kver
ywel
lonM1andM5
Nowl ooki
ngatt hischartyYoucoul dnot i
cet hepat
ternandt hebr eakout ,nowwat chtheentry
l
ev el
,whereIhav emar kettheshortyellowline,bel
owt heneckline, whenpr i
cebr eaksthe
channel,i
tmustcl osebelowt henecklineandi tmustbebear ish,rightafteritbreaksitand
cl
osesbear ishbel owtheneckl i
ne,youwi llSELL.Unli
kecurrencypai r
s,afterthebreakout ,
it
needstor etestbackt otheneckline,butinmostcasesofv olati
lit
y75, i
tdoesnotr etest,af
teri
t
breaksallyoudoi stosellandtakey ourprof i
thasdesired.

Let
’st
akeanot
herexampl
e
Thisi
salsoheadandshoulderbutani nver
sef or
m, whenImeani nver
sef or
m, Imeani t
’supside
downunliket
hefir
stone.Sowesawpr i
cebreaki
ngt hr
oughtheneckli
ne,immedi atel
yitbreaks
fr
om theneckl
inewecanBUY.Wi thheadandshoul der
s,becauseiti
sseenmost lyonm5and
m15,youhardl
yseer et
estunl
ikewheni tsseenonceawhi leonhigherti
mef rameswhi chin
somecasesmi ghtneedali
ttl
ebitofretest
.Therefore,
immediatelyi
tbreakfrom theneckline,
yousell
orbuydependingonhowi thasbeenf ormed.

DOUBLETOPSANDBOTTOMS(
THEM andW SHAPEPATTERN)

DOUBLETOP

Bynowaf
terget
ti
ngt
othi
spoi
ntwehav
eani
deaofhowsuppor
tandr
esi
stancewor
ks.

DoubleTopmeanst wotheref
oreinthisscenari
owesi mpl
ylookupoft woresist
ancepoi
ntsso
wesimpl ySELLonthesecondpoint.Inthispat
tern,
wearelookingfortwocommonandcl ose
resi
stancethatar
eonthesamepoi ntinlineoralmosti
nli
ne.Itdoesn’tnecessar
il
ymeansit
shouldalwaysbeaperf
ectstr
aightline.

EXPLANATION-Li kewesaidbefore,double
topismadeupt woCLOSEr esi
stanceandI ’
m gladwecanspotr esist
ancenow.Takenot eof
theter
m used.Twor esistancethatar ecl
osetoeachother.Wheny ouspotthispatt
ernandy ou
seeitf
alli
ng,wehavet obeawar et hati
twil
lsell
massivel
yandbr eaktheneckli
ne.Nowwecan
entert
histradesint
woway s,
Firstofallwecanselli
mmedi at
elyont hesecondtopafterithas
beenreject
ed.Wecanal sosellafteritbr
eakstheneckl
ineandjustal i
tt
leorminorret
est.As
youcanseei tsli
keM.

Let
’st
akeachar
ttoexpl
ainf
urt
her
,

Wi
tht
hischar
t,Iwi
l
luseasmal
l
erchar
tforabet
teranal
ysi
s
Sonowl et
’slookatthechartabove,theredresi
stancewespot
tedabove,youcoul
dseehow
pr
icebrokerall
ieddownafterfor
mi ngtheM shapewi t
hali
tt
ler
etestIhav
ei ndi
cat
edshaded
whit
e.SoIcoul dent
erthi
stradeint woway s.

1.IcansellonceIspotar
eject
edcandl
eandabear
ishengul
fi
ngcandl
eont
hesecond
resi
stance.

2.Icanal
sosel
laf
teri
tbr
eakst
heneckl
i
nei
mmedi
atel
yorwai
tfori
ttor
etestal
i
ttl
e.

DOUBLEBOTTOM (
THEW SHAPE)

Doubl
ebott
om isj
ustthei
nver
seofdoubletop.Theonl
ydi
ff
erencei
sthi
sisaW shape.Apar
t
fr
om t
hat
,theyper
for
mt hesamefunct
ion.

Nowwi
tht
his,
youl
ookf
ort
wocl
osesuppor
tar
east
otr
iggerabuy
.
Nowlet’
slookatthechartcar
eful
l
y,aft
erspotti
ngtherej
ect
edcandlefoll
owedbyabull
i
sh
engul
fi
ngcandle,
Iwil
limmediatel
yBUYont hesecondpoi
ntofthesup[or
tORwecanwai tf
or
pri
cetogettot
heneckl i
ne,br
eakitandcloseabovetheneckl
i
nef orustoent
erourBUY
i
mmedi at
ely
.

Let
’sl
ookatt
hisi
mageal
so
Byl
ooki
ngatt
hechar
tabov
e,wecoul
dexpl
ainwhatact
ual
l
yhappenedusi
ngt
hesamescenar
io.

YouBUYi
mmedi
atel
yont
hesecondsuppor
torwai
tforpr
icet
obr
eakt
heneckl
i
ne.

SUMMARY

I
ndoubletopsandbott
oms,i
t’
sgoodt ot
radeinal
lfr
ames,iti
salway
sclearonh1timefr
ame,
fort
imefr
amesl i
keM5andM15,mostatt i
mepr i
cedoesnotgettot
hesecondtouchsoit
’s
goodtoexecut
ethetr
adeaf
teri
tbreakst
het r
endli
ne.

I
naddit
iont
othis,watchorf
orf akeout
sont heneckl
ine,
now,tot
hecompl et
etheM patt
ern,i
t
mustbr
eaktheneckli
neandmov eupwardbutonceitget
stotheneckl
ine,
themarketbehaves
i
nsuchawayt hati
twi l
lber
ejectedandmovedown, it
’sasi
mplefakeout,
itr
etr
acesalit
tl
eand
f
urt
hermoveupwar d

TRI
PPLETOPANDTRI
PPLEBOTTOM

Justli
kewesawdoubl emeans2sowel ookedfort
wocommonr esistance.Inthi
scase,wear
e
deal
ingwi tht
ri
plet
ops.Tri
pleaswegenerall
yknowmeans3t her
eforeinthiscase,weare
l
ookingf or3commonr esi
stancepoi
ntsofpri
ce.Meanst
hatwearelookingf or3touchesona
resi
stance.
Lookingatthei mageabov ewehadt hreet ouchesont heresi
stancethatpricetouched,sowe
waitforthebreakoutont hesupportlev el
af terthetoucht
hirdont heresi
stance.Iti
snotgood
totr
adeont hethi
rdresistanceorsellont hatpoi nt
,rememberwhenwewer ediscussingon
supportandr esi
stance,Ididsayit
’sgoodt ot r
adeont he2ndtouch,Sooncewespott hiski
ndof
patt
ern,wewai tforpri
cet obreakthesuppor tandRETEST, beforewesell.Inthi
sPat t
ernofthe
tr
ipl
et op,t
heRETESTi sveryimportant.

Let
’sanal
yzet
hechar
tbel
ow

Lookingatt hechartabov e,wehad3commont ouchesont heresi

stancel
ev elt
ell
ingusthat
wasat ri
pletoptherefor
et her
emi ghtbeabr eakoutont hesupport.Rememberi t’
snotgoodt o
sellonthet hi
rdtouch.Youal wayssellafterbr
eakoutoft heneckli
neandr etest,
wecanseea
clearretestontheyellowboxaf t
ert hebreakout.Aft
erthatr et
estandweseeapi nbarcandle
reject
ionandacandl esuchasabear i
shengulfi
ngcandle, weselli
mmedi ately
.Wecoul dsee
howpr i
cerall
ieddownaf terther
et estandwasr ej
ected.
TRI
PPLEBOTTOM

Justli
kewesawdoublemeans2sowel ookedfortcommonsupportareas.I
nthiscase,wear
e
deal
ingwitht
ri
plebot
toms.Tr
ipl
easwegener al
l
yknowmeans3t her
eforeinthi
scase,weare
l
ookingfor3commonsupportspoi
ntsofpr
ice.Meansthatwear
elooki
ngf or3touchesona
support
.

Lookingatt
hispi
ctur
e,wecoul
dseet
hat
,wi
tht
ri
plebot
toms,
wear
eexpect
ingabr
eakout
above.

Let
’st
akear
eal
char
tandanal
yze.

Lookatthechar
tbel
ow,wehad3touchesonthesupportandwecoul
dseeafterthebr
eakout
,
pri
ceret
estedbef
orei
tfi
nal
l
ywentup.Aftert
heret
est,
weBUYandpl aceourorder.
WHATMAKESABREAKOUTVALI
D?

1.Ifi
t’
sabr eaksoutaboveorar esi
stance,thecandlemustbebulli
shandmustcl
osea
l
itt
lefart
herabovetheresi
stance.Afterthecl
ose,leti
tret
estonbackonthatr
esi
stance
andrejectedonthatl
evelt
hatwi l
lconfir
mt hebreakoutresi
stance.

2.I
fit’
sabr eaksoutbeloworasuppor t,
thecandlemustbebearishandmustcloseali
tt
le
f
artherbelowt hesupport.Af
tert
heclose,
letitr
etestonbackonthatsuppor
tandget
r
ejectedont hatlev
elthatwil
lconfi
rmthebreakoutofthesupport
.

TRI
ANGLES

Ther
eaediff
erentf
ormsoftri
angl
estr
adedinthegener
almar
ket
.Howev
erwewi
l
lbel
ooki
ngat
twospeci
fi
ctri
angl
esthatwor
konv ol
ati
l
ity75i
ndex.

1.DESCENDI
NGTRI
ANGL

Descendingt
ri
anglesaret
ri
angl
est
hathasasuppor
tpoi
ntsofcandl
esconnect
edt
oat
rendl
i
ne
t
ocr eat
epatt
ern.Let’
sseethei
magebel
ow

Looki
ngattheimageabove,Iguesswehaveanideaofhowi tl
ooksnow,nowweknowhowt o
drawsupportl
ine,
sowelookforsever
alpoint
sortouchesofasupportt
henwelookfor
commont ouchesofanuppertr
endli
nethatiscl
osetothesupportf
orustoj
ointhi
sli
nest
oget
ourpat
ter
n.
Let’
sanaly
zethechartabove,wehadasuppor
tandatrendl
i
neaswesawi nthechar
t,Now
aft
erspott
ingthi
spoint
s,itdoesdoesnotmat
tert
henumberoft
ouches.Wearemore
i
nterest
edinthebreakoutandnextmove.

Anotheri mportantthi
ngt oalsonotei
sthis, wearesay ingthepat t
erniscalledadescendi ng
tri
angleandany t
hingdescendingmeansgoi ngdown, t
hereforethepatter
ni scommuni cationto
usthatt herewoul dbeabr eakoutbelowandnotabov esowewi llbel
ookingf ormor e
breakout sonthesuppor tlevel
.Aft
erabreakoutoft hesuppor t,t
hepatternneedsar et
estof
thesuppor tlevelaft
erthebreakout.Remembert hisisapat ternandthereforearetestis
needed.Af teraretesthasbeenmadeandr eject
ed,wecanpl aceourSELL.Ther ear esit
uations
wheret hepr i
cewi l
lbreakaboveforabuy, Iwouldl i
ket ourgey ounottoexecut esucht r
adeas
abuyi ncaseofsuchoccur r
ence.Wearemor ei
nterestedinthebreakoutbel owf oraSELL.

ASCENDI
NGTRAI
NGLE

Descendi
ngt ri
anglesaretr
ianglesthatalsohasaconnectedresi
stanceandal owertrendli
ne.
Getthedi
fference.Ascendi
ngt riangl
ehasaRESISTANCEandal owert rendli
newhil
ea
Descendi
ngt ri
anglehasaSUPPORTandanuppert rendli
ne.Let’
smov eonwi t
hascending
t
ri
angle.I
nt hi
spat ter
n,weconnectt hepoint
sofaresist
anceandat r
endl i
nethatar
eal socl
ose
t
oeachot her.Let’
swat cht
hei magebel ow
Looki
ngatt
hei
mageabov
ewecoul
dnot
eithasal
owert
rendl
i
neandar
esi
stance.

Let
’sanal
yzeachar
t

Looki
ngatt
hepat
ter
n,y
oucoul
dseet
hebl
ueboxasourr
esi
stancezonesandt
hel
owert
rend
l
i
newi
thourpoi
ntsorzones(
redbox)
.

Let’
sseehowt ot r
adet hisafterconnecti
ngthepat ternorspot t
ingthem.Remembert he
numberoft ouchesdoesnotmat t
er.Wear ei
nterestedi nthebreakouttomakeanent ry.Asthe
namesounds, ascendingwhi chmeanssomet hingwhi chmov esup, t
heref
oreweareint
erested
i
nabr eakoutabov eforaBUY.Ther eforeaft
ersever al t
ouchesandt her
eisabreakout,
wewai t
foraret
estbackt other esi
stancelineandgetr ej
ectedbyapi nbar ,
thenweplaceourBUYor der,
JustasIstat edabove, i
nsomeoccur rencesitmaybr eakbelowi nst
eadofabovehowev erIwil
l
urgeyoutol ookformor ebreakout saboveratherthanbel ow.

Tr
adi
ngChartPat
ter
nsareal
soeffect
iveandv
isi
bleontheM5andM15t
imef
rame.Al
way
s
wai
tforabr
eakoutandaret
estbefor
emakinganentr
y.

FI
BONACCIRETRACEMENTTOOL

Themar keti sful

l ofupsanddownscommonl yknownasr etr
acement s.Ret racement sare
boundt ohappenandi t’swhatdi f
ferent
iateanemot i
onal t
raderandapat ientt r
ader .Wheny ou
seeamar ketmov i
ng,themar ketdoesnotmov einthesamedi recti
on.Itfluctuatesandmov es
withretr
acement sbecausei tismadeupofbot hbullsandbear s.(Sell
ersandbuy ers.
)Thisisa
forextem.Theybuy ersint hemar ketarecal ledbear swhi l
ethesel l
ersar ecal l
edbear s.Mov i
ng
ont otheFi bonacci tool,weuseFi bonaccitool af
terazonesuchasasuppor tandr esist
ance
hasbeencr eatedandt henpr i
cebouncesoft hatzone.Youwoul dnot i
cet hat,any ti
mepr i
ce
getst oasuppor torar esistancezoneandi tbounces, itgoesordownal i
ttlebefor econti
nuing
thetrend.Fi bonacci i
smadeupofsomei mpor tantnumber s,thesenumberser veassuppor t
andr esi
stancear easwher epr i
ceturnstor ever seaftergetti
ngtot hosepoi nts.Thenumber sare
23.6,38.2,50. 0and61. 8.Wewi l
llookatthespeci fi
cnumber sthatwor konv i
x75whi chisthe
Fibonacci 50.0and61. 8.Nowi tactuall
yhel psy outoent eratradewheny ouar elatebecause
youknowt hati nthemar ketr et
racement sar eboundt ohappen.

Howt
oaddFi
bonacci
tool
.

1.Sel
ecttheiconwher
eyouhav
eyourt
ool
s,wher
ewenor
mal
l
ysel
ectt
hel
i
nest
omar
kup
ourchart
s.

2.Sel
ectt
he+si
gnandl
ookf
orFi
bonacci
ret
racementandsel
ecti
t.

Let
’sanal
yzeachar
ttosi
mpl
i
fyt
his
Lookingatt hechar tabov e,wecanseet hatpr i
cewasonar esi
stancelev el.Nowwhathappens
i
st hatafterpri
cehi tsther esi
stanceandr alli
esdown, i
tisli
kelytoreversebackbef oreit
continuesthet r
endsowhaty ouwi l
li
st hat,immedi atel
yy ouseei trev
ersi ngbackorr et
raci
ng,
takey ourFibonacci retr
acementt oolanddr awf rom wher ethepricetouchesont heresi
stance
andst art
edf al
li
ng, andconnecti ttowher epr i
cest artedr ev
ersing,nowwat chthelongblueline,
thatwaswher epricer eversedfrom t
her esistancezone, sowhatwedoi s, wedrawthe
Fibonacci f
rom ther esistancetothezonet hepr icer eversed.

TakeNot
e-Youdr
awf
rom upt
odownandnotdownt
oup.

Aft
erdrawingyourFibonaccil
evel
,wewai tforpr
icetotouchtwooft hemosti
mport
ant
Fi
bonaccil
evels,
fib61.8and50.0afterwhichwel ookforpinbarfr
om anyoft
hetwozonesto
getrej
ect
ed.Lookingatthechartabove,youwouldnoticethatther
ewasapinbaronlev
el61.
8
andgotrej
ectedafterwhichpri
cereversedfrom t
hatzoneandmov ebackdown.

Let
’sanal
yzeanot
herchar
t
Lookingatt hesuppor tl
evel
,wesawt hepr icegoingupf rom thesupportlevelaf
tergoingup,we
couldnoticei tret
racedandst artedfall
ing,sowet akeourFibonaccilev
el anddrawf r
om the
supportlevel towher ethepri
cest art
edr eversi
ng.Nowwecoul dseeapi nbaront hefib50.0
l
evelandpr icer eversedbackt ocontinuemov i
ngup.WeuseFi bonacciwhenthegener altr
end
ofthemar keti sstrongandal ongt hemov ement ,i
tr et
racesinandoutal ongthemov ement ,i
ts
besttouset heFibonacci l
evel,mostatt i
meswesaybadent ryisnotgood.Yesi t
’snot,however
theFibonacci toolisgoodf ortheent r
yoft heselateent r
ies.

Nowt
aket
hedi
ff
erencebet
weent
het
wo

Whendr
awingFibonaccionuppert
rend,
youdrawfr
om t
hesuppor
ttot
hepoi
ntofr
ever
sal
(
downtothetop-suppor
ttothepoi
ntofrev
ersal
)

Whendr
awingFibonaccionalowert
rend,y
oudrawfr
om t
her
esi
stancet
othepoi
ntofr
ever
sal
(
Toptodown-Resi
stancetot
hepointofrev
ersal
).

PI
NBARS

ThePi
nbari
sav
eryi
mpor
tantcandl
ethatusesl
otsofpr
icet
oconf
ir
mther
ever
sal
oft
rend.

Ther
ear
etwopi
nbar
s.

Bul
l
ishpi
nbar
sandbear
ishpi
nbar
s
Let
’sr
efert
oachar
t

Bull
i
shandbearishpi
nbarsar
estr
ongrev
ersalcandl
es.I
tismadeupofashortbodywit
h
l
ongerwicks.Whenyouseeabul
l
ishpi
nbaronasuppor t
,itmeanspr
icei
sli
kel
ytorever
seand
BUYsowhathappensisthaty
oucoul
dbuyafteryouseeabull
ishpi
nbarrej
ect
edonthe
suppor
t.

Bul l
ishpinbarshappensoroccursonasuppor
tlevel
orl
owertrendl
ineandtheysi
gnif
ythat
priceislikelyt
orever
seforabuywhenwespotit.Soimmediat
elyweseesuchcandleonthe
suppor tlevelwebuy.However
,thi
stwocandl
escansometimesoccurei
theronthesuppor
tor
resistancelevelbutt
hebothperf
ormthesamefuncti
ontel
l
ingusthatmarketi
sli
kel
ytorever
se.
Looki
ngattheimageabove,wecoul
dseeabul l
i
shpinbaronthesuppor
tli
ne,
weknowthat
whenwear eonasupportl
ine,wewouldbuy
,howevert
hebull
ishpi
nbarwouldgi
veusanext
ra
confi
rmat
ionthatpr
icewouldact
ual
lybuysoimmediat
elyweputupourBUYorder
.

Let
’sr
efert
oanot
herchar
t

Thisi
sal
soatr
endli
ne,wecouldalsoseesev
eral
pinbarsrej
ectedont
hetrendli
neconfi
rming
thatt
hemar
ketorpr
icei
sactual
lypushi
ngupsoaftersuchcandle,
wecaneasil
yplaceourbuy
order
.

BEARI
SHPI
NBARS

Thi
sar
eal
sopi
nbar
sthathappenont
her
esi
stancel
i
neandi
ndi
cat
est
hatpr
icei
sli
kel
ytof
all
.
Taki
ngt
heimageabove,y
oucoul
dseeabear
ishpi
nbarontheresist
ance,sowecoul
d
i
mmediat
elySELLoncewespott
hecandl
eonther
esi
stancet
ell
inguspricewoul
dfal
l
.

Sampl
e2

Wecoul
dal
soseeabear
ishpi
nbaront
heupperr
esi
stancel
i
nei
ndi
cat
ingpr
icewoul
dfal
l
.

Rememberpinbar
smayoccurbothonasupportoraresi
stance,oncey
ouspott
hiscandl
eson
thesuppor
torr
esi
stance,
onemustknowt
hatreversal
isl
ikelyt
ooccur.
I
MPORTANTTI
PSONVI
X75I
NDEX

1.RETESTi
sal
way
sandv
erynecessar
yinCHARTPATTERNSBREAKOUTS

2.Thi
rdt
ouchesonResi
stanceandsuppor
tli
nesar
eli
kel
ytobr
eak.

3.Secondt
ouchesonar
esi
stanceandasuppor
thol
dver
yof
ten.

4.Duri
ngconsoli
dati
onsiti
salwaysgoodtoent
erthemarketaf
terbr
eakout
swit
houtany
ret
est.Af
teraconsol
idat
ionbr
eakout,t
hemarketmoveswithmassiv
epips

5.I
tisgoodtotr
adesupportandr
esi
stanceonM15becauset
herewi
ll
bemor eoft
his
l
evel
sinthemarketwhi
leyouuset
imef r
amesl
ikeh1andh4fort
heupperhandoft
he
posi
ti
onofthemarket
.

6.Char
tpat
ter
nsar
evi
sibl
yseenonM5andM15

7.Whenev
ert
her
ear
epi
nbar
sonasuppor
torr
esi
stance,
mar
ketusual
l
yrev
erses.

8.Duri
ngweekends,
manipul
ati
onsalway
shappenandi
t’
sadv
isabl
etoonl
yexecut
ea
tr
adewhenthemarkethasaclear
erdi
rect
ion.

9.Mostoften,anyt
imepr
iceget
suntoazone,
itconsol
i
dat
esf
orawhilebefor
eitmov
es,
t
hisactuall
yisal
soanimport
antt
ipt
hatpri
cewouldmovef
rom t
hatsupportor
r
esist
ancezone.

10.Don’
tfor
cet
rades.Lett
heoppor
tuni
ti
escomet
oexecut
ethet
rade.

SUMMARY

Onemaysaywhi chstrategyworksver
ywell
onv i
x75index,
Itookmyt imet oexpl
ainfi
ve
powerfulst
rat
egi
esthatshowsupal ongt
hemarket.Amongt hestr
ategiesshownwi t
hthei
r
techni
quesaseachoft hestr
ategi
esworki
ndependentl
yontheirown,at r
adermaychooseto;

1.Tr
adesuppor
tandr
esi
stanceonl
y

2.Anot
hert
radermi
ghtal
sochooset
otr
adeonl
ychannel
breakout
s

3.Ot
her
smayal
sochooset
otr
adet
ri
angl
esandr
etestl
evel
sonl
y…et
c

Butsincethemar ketdoesnotmovei nonl

ysupportandresist
anceonlyortr
iangl
esonl
yor
breakoutsonly
,itisgoodtolear
nallandharmonizethem becauseatonepointort
heotherwe
wouldcomeacr osseachofthestr
ategyexpl
ained,howeveronemayal sost
icktoonestr
ategy
andper f
ectit
.

Iwi
shthi
sbookhasimpactedgr
eat
lyonyourknowl
edgeandimpor
tantt
ipsi
ntr
adi
ngv
ix75and
maki
nganyreaderapr
ofi
tabl
etr
aderaf
terr
eadingt
hisbook.
Tel
egr
am Channel
-ht
tps:
//t
.me/
joi
nchat
/AAAAAFKbg1zYpPcORT2PEQ

Admi
n’
stel
egr
am name/
Wri
ter-ht
tps:
//t
.me/
Adj
ei_
vix
75