00:14

[Music]
00:17
hey guys welcome back to another episode
00:20
in this video we're going to show you
00:21
how to trade chart patterns like a pro
00:24
and how we apply these exact strategies
00:27
to cryptos and stocks that we invest in
00:30
and trade
00:33
during this video we'll also show you
00:35
how you can get access to our over 100
00:38
page highly detailed pattern trading
00:41
guide this massive document works in
00:43
combination with this video and it's
00:45
like having a cheat code
00:48
if you want to show your support please
00:49
hit the like button
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subscribe
00:52
and turn on the notifications bell so
00:54
that you know exactly when new videos
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are released
00:58
so there are a ton of patterns that
01:00
traders use but the ones we will be
01:02
covering are the ones we find the most
01:04
effective and that occur the most often
01:10
so let's get right into it starting with
01:12
the first which is
01:14
the double top and double bottom pattern
01:23
here is where we will be showing the
01:24
anatomy of each pattern
01:28
so first you have your moving uptrend
01:31
price then makes two same highs
01:34
the tops essentially make a resistance
01:36
level the swing low here is what is
01:39
called the neckline
01:41
now what does the double top tell you
01:43
from a price action standpoint
01:46
price failed to make a higher high but
01:49
instead made a same high which shows a
01:51
loss of momentum from the uptrend
01:53
meaning a loss of momentum from the
01:55
buyers in the market
01:58
now going the other way
02:02
you first have your moving downtrend
02:04
price then makes two same lows
02:06
the bottoms essentially make a support
02:09
level
02:10
this swing high here forms the neckline
02:14
now what does the double bottom tell you
02:16
in terms of price action
02:19
price failed to make a lower low but
02:21
instead made a same low which shows a
02:23
loss of momentum from the downtrend
02:26
meaning a loss of momentum from the
02:28
sellers in the market
02:30
so this then brings us to our next
02:32
question which is how do we use the
02:35
double top and double bottom pattern as
02:37
part of our overall strategy
02:40
also right now go to the comments
02:41
section below and tell us exactly what
02:44
topics and questions you want us to
02:45
cover as we always look at the comments
02:47
to decide what to create next
02:53
now these are the four core variations
02:56
to using the double top and double
02:58
bottom pattern
02:59
let's start with the first which is the
03:01
neckline break entry
03:07
so you first have your double top
03:09
pattern that forms neckline here because
03:11
of the recent swing low now once price
03:14
breaks the neckline and makes a lower
03:16
low you would take a breakout entry
03:18
short as the reversal and trend change
03:20
is now confirmed
03:23
going the other way
03:25
you first have your double bottom
03:27
pattern that forms
03:28
neckline here because of the recent
03:30
swing high now once price breaks the
03:33
neckline and makes a higher high you
03:35
would take a breakout entry long as the
03:37
reversal and trend change is now
03:38
confirmed
03:40
so moving on to the second variation
03:43
a double top or double bottom pattern
03:45
forming at a key level
03:48
now this is an entry that occurred on
03:50
ethereum and one that many of our
03:52
members took
03:54
so you first need to identify a key
03:56
level which you have through these three
03:58
reversal points
03:59
as price comes back down it creates a
04:02
double bottom pattern at the support
04:04
level
04:04
so again to confirm the reversal
04:07
neckline placed at the recent swing high
04:09
and once price breaks through the
04:11
neckline and makes a higher high your
04:13
trend change from a downtrend to an
04:15
uptrend is confirmed and you would then
04:17
take trade entries long through the
04:19
lower intraday time frames
04:20
now to point something out there was
04:22
another trend change confirmation you
04:24
could have used which was placing a
04:25
trend line like this connecting the
04:27
swing highs and again waiting for the
04:29
breakthrough before looking for trade
04:31
entries long
04:33
now going the other way
04:36
again you first need to identify a key
04:39
level which you have through this
04:40
reversal point here
04:42
giving you your resistance level
04:44
as price comes back up it creates a
04:47
double top pattern right at the
04:48
resistance level
04:50
so again to confirm the double top
04:52
reversal neckline placed at the recent
04:54
swing low here and once price breaks
04:56
through the neckline and makes a lower
04:58
low your trend change from an uptrend to
05:00
a downtrend is confirmed and you would
05:02
then take trade entries short through
05:04
the lower intraday time frames
05:06
this is also a very good example of the
05:09
many different opportunities there are
05:11
to enter trades
05:12
some would have entered short right at
05:14
this point here
05:15
others would have entered short right at
05:17
this point here
05:18
where pattern traders wouldn't enter
05:20
until the double top pattern formed and
05:22
then the break of neckline here
05:24
all are correct there are multiple
05:26
different ways to enter trades based on
05:29
your style so what does the double top
05:31
or double bottom pattern at a key level
05:34
tell you from a price action standpoint
05:37
this kind of entry is of higher quality
05:39
because you're not just trading a
05:41
pattern on its own but a pattern that is
05:43
also at a key level which means you also
05:47
have support and resistance traders
05:48
looking to enter along with pattern
05:50
traders which helps create momentum for
05:53
the trade and increases trade quality
05:57
so moving on to the third variation
06:00
a double top or double bottom pattern
06:02
but instead of taking the breakout entry
06:04
waiting for a pullback entry
06:07
so back to the ethereum example we just
06:09
covered you had your double bottom
06:11
pattern
06:12
neckline break
06:14
but instead of taking the breakout entry
06:16
there was a second long entry on the
06:19
pullback to the new support level this
06:21
is actually a very good level because it
06:23
was formed way back here
06:26
now there is a very specific way you
06:29
must place your stop loss when taking
06:31
breakout entries but then a very
06:33
different way you must place your stop
06:35
loss when taking pullback entries
06:38
so moving on to the fourth variation
06:41
candlestick patterns forming at a key
06:43
level and then a double top or double
06:45
bottom pattern inside of those
06:47
candlesticks
06:49
so you first look for a key level which
06:51
you have through this reversal point
06:53
here which gives you a level of
06:55
resistance
06:56
as price comes back up to this level you
06:58
were waiting to see if you would get
07:00
candlesticks forming at the level to
07:02
show a reaction to the level of
07:04
resistance which you got through this
07:06
long wick candle but a reaction does not
07:09
equal a trade as price can stall at this
07:11
key level form the candle and still
07:13
break right through don't forget that
07:15
this is a very strong uptrend
07:17
so what you need to do is after you have
07:20
your longwick candle react to the level
07:22
of resistance you need to look inside of
07:25
this area on the lower time frames to
07:27
see if you can get any form of price
07:29
action that signals a trend change from
07:32
an uptrend to a downtrend now this is a
07:34
very key point before you look inside of
07:37
this area you have no idea what you will
07:40
find or if you will find anything at all
07:42
so let's pull up a lower time frame
07:44
specifically the six hour time frame and
07:46
put it beside this one
07:49
so on the left is the daily time frame
07:51
we just looked at and on the right here
07:53
is the six hour time frame of the same
07:56
asset this resistance level here is the
07:59
same resistance level here this area
08:01
here where the candlestick formed is
08:03
this same area here on the six hour time
08:06
frame now the reason we are using a
08:08
lower time frame is because on the main
08:10
time frame where we found the initial
08:12
setup price movement is too tight
08:14
meaning we don't have good swings that
08:16
give us good price action that signals a
08:18
trend change after we had the long with
08:20
candle whereas here on this lower time
08:22
frame on the right we can see so much
08:24
more data and see the actual swings of
08:27
price
08:28
so what you had on this lower time frame
08:30
was a perfect double top pattern that
08:32
formed right at the key level of
08:34
resistance
08:35
and inside of the long way candle from
08:38
the higher time frame so again to
08:41
confirm the reversal and the trend
08:43
change
08:43
neckline placed here at the swing low
08:45
and once price breaks the neckline and
08:47
makes a lower low your trend change is
08:49
confirmed from an uptrend to a downtrend
08:52
the breakout here is then when you would
08:55
go to the lower intraday time frames to
08:57
take trade entries short
08:59
now going in the opposite direction in a
09:01
downtrend this would work the same
09:04
so moving on to the next pattern
09:09
the triple top and triple bottom pattern
09:20
so before we continue make sure you go
09:22
follow our instagram account at
09:24
wisetrade to stay notified about a lot
09:26
of big projects we have on the way
09:30
now if you are enjoying this video and
09:32
want to support our team hit the like
09:34
button
09:35
subscribe and turn on the notifications
09:37
bell so that you know exactly when new
09:39
content is released
09:42
now moving to the next pattern the
09:44
triple top and triple bottom pattern
09:47
so price is in an uptrend before it
09:50
makes three same highs in a row
09:52
forming the triple top pattern
09:55
the swing lows here create the neckline
09:57
and support level
09:59
and when it breaks you would take trade
10:01
entries short as the reversal is now
10:03
confirmed
10:05
now going the other way
10:09
price is in a downtrend before it makes
10:11
three same lows forming the triple
10:14
bottom pattern
10:15
the swing highs here create the neckline
10:18
and resistance level and when it breaks
10:21
you would take trade entries long as the
10:22
reversal is now confirmed
10:25
so using the triple top and triple
10:27
bottom pattern is the same as the four
10:30
variations we showed you for the double
10:32
top and double bottom pattern so we
10:33
won't go through it again
10:36
moving to the next pattern
10:39
the trend continuation pattern
10:49
a bullish trend continuation pattern has
10:52
your runs
10:54
and pullbacks
10:56
the swing highs are higher than the
10:59
previous swing highs the swing lows are
11:02
higher than the previous swing lows
11:04
this means a bullish trend continuation
11:06
pattern makes higher highs and higher
11:09
lows
11:10
from a price action standpoint it shows
11:12
a continuation of bullish momentum from
11:15
the buyers through making new higher
11:17
highs and new higher lows and not a
11:20
sideways market
11:22
now going the other way
11:26
a bearish trend continuation pattern has
11:29
your runs
11:32
and pullbacks
11:34
the swing highs are lower than the
11:36
previous swing highs
11:38
the swing lows are lower than the
11:40
previous swing lows
11:42
this means a bearish trend continuation
11:45
pattern makes lower highs and lower lows
11:48
so from a priced action standpoint it
11:50
shows a continuation of bearish momentum
11:53
from the sellers through making new
11:56
lower highs and new lower lows and not a
11:59
sideways market
12:01
now moving to the next pattern
12:02
[Music]
12:06
the trend change pattern
12:17
in a bullish market there are two ways
12:19
the trend change pattern can form
12:21
variation one
12:23
you have your moving up trend through
12:25
the higher highs and higher lows
12:27
before price makes a lower low giving
12:30
you your trend change pattern in a
12:32
bullish market
12:33
now variation
12:36
two you again have your moving up trend
12:40
through higher highs and higher lows
12:42
before price makes both a lower high and
12:46
a lower low giving you your trend change
12:48
pattern in a bullish market
12:51
so from a price action standpoint it
12:53
shows a loss of momentum from the buyers
12:56
as price failed to make a new higher
12:58
high and instead created a reversal
13:00
pattern
13:03
now going the other way
13:06
in a bearish market there are two ways
13:08
the trend change pattern can form
13:10
variation one
13:12
you have your moving downtrend through
13:14
lower highs and lower lows
13:17
before price makes a higher high giving
13:19
you your trend change pattern in a
13:21
bearish market
13:23
now variation two
13:27
so you have your moving downtrend again
13:30
through lower highs and lower lows
13:32
before price makes both
13:34
a higher low
13:36
and a higher high giving you your trend
13:39
change pattern in a bearish market
13:42
so from a price action standpoint it
13:44
shows a loss of momentum from the
13:46
sellers as price failed to make a lower
13:48
low and instead created a reversal
13:51
pattern showing a trend change from a
13:53
downtrend to an uptrend
13:57
so moving on
14:03
the head and shoulders and inverse head
14:05
and shoulders pattern
14:17
so before we continue if you are
14:19
enjoying this video and want to show
14:20
your support please hit the like button
14:23
right now
14:24
[Music]
14:29
so the head and shoulders pattern starts
14:31
with your moving uptrend
14:33
left shoulder
14:34
the head at the swing high and then the
14:36
right shoulder at the lower high
14:39
the swing lows here make a neckline or
14:41
support level
14:43
from a price action standpoint it shows
14:45
a loss of momentum from the buyers and
14:47
the start of a trend change as a lower
14:49
high has already formed
14:52
now there is a higher quality head and
14:55
shoulders pattern
14:57
which is a head and shoulders pattern
14:59
with a slanted neckline
15:01
it's the same as the normal head and
15:03
shoulders pattern except you already
15:05
have a lower low that formed creating
15:07
the slanted neckline
15:09
from a price action standpoint this is a
15:12
higher quality reversal pattern because
15:14
price already made both a lower low and
15:17
lower high which shows a fully formed
15:20
trend change not just the start of a
15:22
trend change
15:23
now going in the opposite direction
15:28
the inverse head and shoulders pattern
15:31
starts with your moving downtrend
15:33
left shoulder the head at the swing low
15:36
and then the right shoulder at the
15:37
higher low
15:38
the swing highs make a neckline or
15:40
resistance level
15:42
so from a price action standpoint it
15:44
shows a loss of momentum from the
15:46
sellers and the start of a trend change
15:48
as a higher low has already formed
15:52
now again there is a higher quality
15:53
inverse head and shoulders pattern
15:56
which is an inverse head and shoulders
15:58
pattern with a slanted neckline again it
16:01
is the same as your normal inverse head
16:02
and shoulders pattern except you already
16:04
have a higher high that formed creating
16:06
the slanted neckline now from a price
16:09
action standpoint this is a higher
16:11
quality reversal pattern because price
16:13
already made both a higher high and
16:16
higher low which shows a fully formed
16:18
trend change not just the start of a
16:20
trend change so this then brings us to
16:23
our next question which is
16:25
how do we use the head and shoulders
16:27
pattern as part of our strategy
16:30
again right now go to the comments below
16:32
and let us know exactly what questions
16:35
you have and topics you want us to cover
16:37
next
16:41
also if you are enjoying this video hit
16:43
the thumbs up button to show your
16:45
support
16:45
[Music]
16:49
now these are the three core variations
16:51
to using the head and shoulders pattern
16:53
let's start with the first which is the
16:55
neckline break entry
16:59
you first have your head and shoulders
17:00
pattern that forms neckline here because
17:03
of these two points and once price
17:05
breaks the neckline and makes a lower
17:07
low you would take a breakout entry
17:09
short as the reversal and trend change
17:11
is now confirmed
17:13
going the other way
17:16
you first have your inverse head and
17:18
shoulders pattern that forms neckline
17:20
here because of these two points and
17:22
once price breaks the neckline and makes
17:24
a higher high you would take a breakout
17:27
entry long as the reversal and trend
17:29
change is now confirmed
17:31
so moving to the second variation a head
17:33
and shoulders or inverse head and
17:35
shoulders pattern followed by a neckline
17:37
break but instead of taking the breakout
17:39
entry waiting for a pullback entry
17:43
so you first have your inverse head and
17:45
shoulders pattern
17:47
neckline here
17:48
neckline break but instead of taking the
17:50
breakout entry there was a second long
17:53
entry on the pullback to the new support
17:56
level
17:57
now going in the opposite direction this
17:59
would work the same
18:01
so moving on to the third variation
18:03
which is an aggressive early entry at
18:06
the right shoulder of the pattern
18:10
so your regular entry would be
18:12
identifying the head and shoulders
18:14
pattern and taking your trade entry
18:16
short at the break of the neckline here
18:18
but now there is a more advanced way to
18:21
trade the head and shoulders which is
18:22
what we call an early aggressive entry
18:25
right at the right shoulder of the
18:27
pattern here so let's break it down
18:30
you first identify the left shoulder and
18:32
then the head now here's the key the
18:34
left shoulder here already makes a
18:36
resistance level so you would have had
18:38
it drawn in and extended out
18:40
as price comes back up to this
18:42
resistance level you would wait to see
18:44
if you would get candlesticks forming at
18:46
the level created by the left shoulder
18:48
which you got through the multiple
18:50
longwick candles forming at the level
18:52
then at this point you would look inside
18:55
of this area to look and see if you get
18:57
any form of price action that signals a
19:00
trend change to confirm that this right
19:02
shoulder has completed so let's pull up
19:04
a lower time frame specifically the four
19:06
hour time frame and put it beside this
19:08
one
19:10
on the left is the daily time frame we
19:12
just looked at and on the right is the
19:14
four hour time frame of the same asset
19:17
this resistance level here
19:19
is this same resistance level here
19:21
this area here where the candlesticks
19:23
formed is this same area here on the
19:25
four hour time frame
19:27
now on the four hour time frame you had
19:29
a perfect descending triangle pattern
19:31
that formed right at the right shoulder
19:33
and resistance level from the higher
19:35
time frame when the pattern breaks below
19:38
this reversal from an uptrend to a
19:40
downtrend is now confirmed and also
19:42
confirms the completion of the right
19:45
shoulder from the higher time frame
19:47
now after you had the break you would go
19:49
to the lower intraday time frames to
19:51
take trade entries short using our entry
19:53
strategy and tool
19:55
so before we continue don't forget that
19:57
there is an over 100 page patterns
20:00
trading guide that works in combination
20:02
with this video and goes through every
20:04
small detail including exactly where to
20:07
enter and exit
20:08
again if you're enjoying this video make
20:10
sure to hit the thumbs up button to show
20:12
your support
20:13
[Music]
20:15
now moving on to the next section
20:20
triangles channels and wedges
20:23
these patterns worked as a set because
20:25
of how we use them as part of our
20:27
strategy and you'll see
20:32
why so let's first go through the three
20:35
core patterns starting with the triangle
20:37
pattern
20:38
now the triangle pattern has its three
20:41
variations as well so we'll start with
20:43
the ascending triangle
20:45
so the top side of the ascending
20:47
triangle makes same highs and creates a
20:50
horizontal resistance level the bottom
20:53
side of the pattern makes higher lows
20:55
and allows for an ascending trend line
20:57
to be placed
20:58
this pattern then forms in both bullish
21:01
and bearish markets
21:03
the bullish ascending triangle starts
21:05
with an uptrend followed by the pattern
21:07
formation
21:08
the bearish ascending triangle starts
21:11
with a downtrend followed by the pattern
21:13
formation
21:14
so next
21:16
the descending triangle pattern
21:19
the bottom side of the descending
21:21
triangle makes same lows and creates a
21:23
horizontal support level the top side of
21:26
the pattern makes lower highs and allows
21:29
for a descending trend line to be placed
21:31
this pattern then forms in both bullish
21:34
and bearish markets
21:36
a bullish descending triangle starts
21:38
with an uptrend followed by the pattern
21:40
formation
21:42
a bearish descending triangle starts
21:44
with a downtrend followed by the pattern
21:47
formation
21:48
so next
21:50
the symmetrical triangle pattern
21:53
the top side of the symmetrical triangle
21:56
makes lower highs which allows for a
21:58
descending trend line to be placed above
22:00
the bottom side of the pattern makes
22:02
higher lows which allows for an
22:04
ascending trend line to be placed below
22:06
this pattern then forms in both bullish
22:09
and bearish markets
22:10
a bullish symmetrical triangle starts
22:13
with an uptrend followed by the pattern
22:15
formation
22:17
the bearish symmetrical triangle starts
22:19
with a downtrend followed by the pattern
22:21
formation so we'll be showing you how to
22:24
use these all once we get to the
22:25
strategies section now before we
22:27
continue this is the most important
22:29
concept of this entire video
22:32
when you are drawing your lines when
22:34
identifying patterns treat them as
22:36
approximations and as areas
22:39
the reason for this is because the
22:41
market is imperfect and patterns won't
22:43
always form picture perfect or exactly
22:46
how you want them to form
22:48
if you just wait for picture perfect by
22:50
the book patterns you'll miss out on 90
22:53
of the best trades because again the
22:56
market is imperfect price movement is
22:58
imperfect and to get good at trading you
23:01
need to learn how to operate within an
23:03
imperfect noisy market
23:06
moving on to the next pattern which is
23:08
the channel pattern now the channel
23:11
pattern has three variations let's start
23:13
with the first which is the ascending
23:15
channel pattern
23:17
so the top side of the ascending channel
23:20
makes higher highs which allows for an
23:22
ascending trend line to be placed the
23:24
bottom side of the pattern makes higher
23:26
lows which also allows for an ascending
23:29
trend line to be placed the two trend
23:32
lines are parallel to each other and are
23:34
both in an upwards direction
23:36
this pattern then forms in both bullish
23:39
and bearish markets
23:41
a bullish ascending channel starts with
23:43
an uptrend followed by the pattern
23:45
formation
23:46
a bearish ascending channel starts with
23:49
a downtrend followed by the pattern
23:50
formation
23:52
so next
23:53
the descending channel pattern
23:56
the top side of the descending channel
23:59
makes lower highs which allows for a
24:01
descending trend line to be placed the
24:03
bottom side of the pattern makes lower
24:06
lows which allows for a descending trend
24:09
line to be placed the two trend lines
24:11
are parallel to each other and are both
24:14
in a downwards direction this pattern
24:16
then forms in both bullish and bearish
24:19
markets
24:20
a bullish descending channel starts with
24:22
an uptrend followed by the pattern
24:24
formation
24:26
a bearish descending channel starts with
24:28
a downtrend followed by the pattern
24:30
formation so next
24:32
the horizontal channel pattern
24:35
the top side of the horizontal channel
24:38
makes seam highs which allows for a
24:40
horizontal resistance level to be placed
24:43
the bottom side of the pattern makes
24:45
same lows which also allows for a
24:47
horizontal support level to be placed
24:50
the two levels are parallel to each
24:52
other and in a horizontal direction this
24:55
pattern then forms in both bullish and
24:57
bearish markets a bullish horizontal
25:00
channel starts with an uptrend followed
25:02
by the pattern formation
25:04
the bearish horizontal channel starts
25:06
with a downtrend followed by the pattern
25:08
formation
25:10
also right now if you're enjoying this
25:11
video and want to show your support
25:13
please hit the like button as this goes
25:15
a long way for us
25:16
now moving on to the next pattern which
25:18
is the wedge pattern so the wedge
25:21
pattern has two variations let's start
25:23
with the first which is the rising wedge
25:25
pattern
25:26
the top side of the rising wedge makes
25:29
higher highs which allows for a rising
25:31
trend line to be placed the bottom side
25:34
of the pattern makes higher lows which
25:36
also allows for a rising trend line to
25:38
be placed now the key here is that the
25:41
two trend lines are converging and are
25:43
both in an upwards direction this
25:46
pattern then forms in both bullish and
25:48
bearish markets a bullish rising wedge
25:51
starts with an uptrend followed by the
25:53
pattern formation
25:55
a bearish rising wedge starts with a
25:57
downtrend followed by the pattern
25:59
formation
26:00
so next
26:02
the falling wedge pattern
26:04
the top side of the falling wedge makes
26:07
lower highs which allows for a falling
26:09
trend line to be placed the bottom side
26:12
of the pattern makes lower lows which
26:14
also allows for a falling trend line to
26:16
be placed now the key here is that the
26:19
two trend lines are converging and are
26:21
both in a downwards direction
26:24
this pattern then forms in both bullish
26:27
and bearish markets a bullish falling
26:29
wedge starts with an uptrend followed by
26:32
the pattern formation
26:34
a bearish falling wedge starts with a
26:36
downtrend followed by the pattern
26:38
formation
26:39
so now that we've covered the three core
26:41
patterns let's get into how to actually
26:44
use the triangles channels and wedges as
26:46
part of our strategy
26:49
before we continue go to the comments
26:51
section right now and tell us what video
26:53
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26:57
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27:04
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27:07
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27:09
hit the like button right now as well
27:11
[Music]
27:18
so the foundation of using triangles
27:20
channels and wedges is trading in the
27:23
direction of where the pattern breaks
27:25
from meaning
27:27
this here can be any of the pattern
27:30
variations we showed you if the pattern
27:32
then breaks above trade in that
27:35
direction if the pattern breaks below
27:38
trade in that direction
27:40
so here are all the strategy variations
27:43
let's start with the first
27:45
identifying a trend followed by a
27:47
pattern formation and then a pattern
27:49
break in the main trend direction
27:53
this is a trend trading strategy this is
27:56
the tesla stock
27:57
you have your moving uptrend before a
28:00
descending triangle pattern forms
28:02
again to be clear this here could have
28:04
been any of the patterns from this list
28:07
but in this case we had the descending
28:09
triangle pattern that formed
28:12
now if price breaks above like this this
28:14
would signal a trend continuation as
28:17
price broke in the same direction as the
28:19
larger moving uptrend as it takes
28:21
bullish momentum to break the pattern
28:24
and make a higher high you would then
28:26
take long trades through the lower
28:28
intraday time frames as the trend
28:29
continuation is now confirmed let's show
28:32
this again
28:35
this is ethereum you had a moving
28:37
uptrend before the descending channel
28:39
pattern formed
28:41
again it could have been any pattern
28:43
from this list that formed but in this
28:44
case you had a descending channel
28:47
now if price breaks above like this you
28:50
would then take long trades through the
28:52
lower intraday time frames now going the
28:55
other way in a downtrend this works the
28:57
same you have your moving downtrend
28:59
before a descending triangle forms again
29:02
it could have been any pattern from this
29:04
list but in this case you add a
29:06
descending triangle once the pattern
29:08
breaks below meaning it breaks in the
29:10
same direction of the larger moving
29:12
downtrend you would take trend
29:14
continuation trades short
29:16
now moving on to the next variation
29:19
identifying a trend followed by a
29:21
pattern formation but then a pattern
29:23
break in the opposite direction of the
29:25
main trend
29:27
this is a reversal trading strategy so
29:30
you first have your moving uptrend
29:32
before an ascending triangle pattern
29:35
forms again it could have been any
29:37
pattern from this list but in this case
29:39
you had an ascending triangle
29:42
now the pattern breaks below and in the
29:44
opposite direction of the main uptrend
29:47
signaling a reversal and a trend change
29:50
from an uptrend to a downtrend so in
29:53
this case you would take trade entries
29:55
short after the break below
29:57
now going the other way in a downtrend
30:00
this works the same
30:01
you have your moving downtrend before a
30:04
falling wedge pattern forms again it
30:06
could have been any pattern from this
30:08
list but in this case you had a falling
30:11
wedge
30:12
now the pattern breaks above and in the
30:14
opposite direction of the main downtrend
30:17
signaling a reversal and a trend change
30:20
from a downtrend to an uptrend you would
30:22
then take trade entries long to the
30:25
lower intraday time frames now moving on
30:27
to the next variation
30:29
identifying a trend followed by a
30:32
pattern formation followed by a break in
30:34
the main trend direction but instead of
30:36
taking a breakout entry waiting for a
30:38
pullback entry
30:42
this is a trend trading strategy and
30:44
this is the microsoft stock you had your
30:46
moving uptrend before an ascending
30:48
triangle pattern formed
30:50
again it could have been any pattern
30:52
from this list but in this case you add
30:54
an ascending triangle
30:56
so like we previously showed you once
30:58
price breaks above you could have taken
31:00
a breakout entry long right away but now
31:03
more secure traders would wait to see if
31:06
there was a pullback that occurred which
31:08
you had here through the multiple
31:09
longwick candles reacting to the new
31:12
support level and top side of the
31:14
pattern and where the moving average
31:16
also crossed which creates an area of
31:19
confluence
31:20
then once you had an intraday trend
31:22
change you would take trade entries long
31:24
using our entry strategy and tool again
31:27
whether you trade the breakout or wait
31:29
for the pullback both work fine it all
31:31
comes down to your style of trade now
31:34
breakout entries and pullback entries
31:36
require you to place a stop loss at
31:39
different places which is very very
31:41
important to understand and we'll
31:43
discuss this further later on
31:45
now moving on to the next variation
31:47
identifying a trend followed by a
31:49
pattern formation and then a break in
31:52
the opposite direction but instead of
31:53
taking a reversal breakout entry waiting
31:56
for a pullback entry
31:58
this is a reversal trading strategy this
32:01
is the coinbase stock you add your
32:03
moving uptrend before the descending
32:06
triangle pattern formed again it could
32:08
have been any pattern from this list but
32:10
in this case you would have descending
32:12
triangle
32:13
so like we previously showed you once
32:15
price breaks below this would signal a
32:17
reversal from an uptrend to a downtrend
32:20
and you would take breakout entries
32:22
short now more secure traders would wait
32:24
to see if there was a pullback that
32:26
occurred which you had here with the
32:28
longwick candle forming right at the new
32:31
resistance level and bottom side of the
32:33
pattern and where the pattern trendline
32:35
crosses giving you an area of confluence
32:38
then once you had an intraday trend
32:39
change you would take trade entries
32:41
short using our entry strategy and tool
32:44
now moving on to the next variation a
32:46
pattern forming at a key level
32:50
you first identified a key level through
32:52
this reversal point now as price came
32:55
back down you had a descending channel
32:57
pattern form right at the key level
32:59
again it could have been any pattern
33:01
from this list but in this case you had
33:03
a descending channel form
33:05
once price breaks above the reversal is
33:08
confirmed and you would take trade
33:09
entries long
33:10
now moving on to the final variation
33:13
identifying a key level followed by a
33:15
candlestick formation and then a pattern
33:18
inside
33:20
now before we continue go to the
33:21
comments section right now and tell us
33:23
exactly what videos you want us to
33:25
create next
33:28
also to show your support make sure to
33:30
go follow our instagram account at
33:32
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33:34
of big projects we have on the way
33:37
if you are enjoying this video please
33:38
hit the like button right now to show
33:41
your support
33:46
so this is the microsoft stock again we
33:48
covered this earlier where you had your
33:50
pullback entry here but now there was a
33:53
second entry using this new variation so
33:56
let's list the pro traits working in
33:58
your favor
33:59
first you're trading with the moving
34:01
uptrend
34:03
next you have the momentum from the
34:05
pattern break here and the long trade
34:08
entries that took place here
34:10
then you had your area of confluence
34:12
here where the trend line
34:14
new support level that recently formed
34:16
and moving average
34:18
and fib level all crossed
34:22
as price came back down to this level
34:24
you had multiple perfect long wig
34:26
candles reacting to the area of
34:29
confluence
34:30
so after you had the candles reacting to
34:32
the area of confluence you need to look
34:34
inside of the candles and inside of this
34:37
area to find price action that signals a
34:40
trend change from a downtrend to an
34:42
uptrend because even though this is a
34:44
strong moving uptrend here this here is
34:46
a short-term downtrend meaning price can
34:49
stall at the area of confluence and then
34:51
break right through triggering a larger
34:53
trend change
34:54
now a key note when you look inside of
34:56
this area it doesn't have to be a wedge
34:59
triangle or channel it can be any of the
35:01
previous patterns we showed you in this
35:03
video all the reversal patterns work the
35:05
same so let's pull up the daily
35:07
timeframe and put it beside this one
35:10
the chart on the left is the microsoft
35:12
weekly timeframe we just looked at and
35:14
on the right is the daily time frame
35:16
this key level here is this same key
35:19
level here this area of confluence here
35:22
and where the candlesticks formed is
35:23
this same area here again we are looking
35:26
for any form of price action that
35:27
signals a trend change from a downtrend
35:30
to an uptrend so what we had in this
35:32
case here was a perfect descending
35:34
triangle pattern that formed right at
35:37
the area of confluence from the weekly
35:39
then once price breaks above it makes
35:41
the higher high the trend change is
35:43
confirmed from a downtrend to an uptrend
35:46
now here's a very key point notice how
35:49
price didn't go straight up after the
35:51
break and pulls back slightly before
35:54
actually taking off upwards and this is
35:56
why you need the two most important
35:58
parts
35:59
one to go to the lower intraday time
36:02
frames to identify an actual entry point
36:05
after the break using our entry strategy
36:07
and tool
36:08
and two understanding precision stop
36:11
loss placement as there is a very
36:12
specific place to put your stop loss
36:14
when trading the breakout but then
36:16
another very specific place to put your
36:18
stop loss when trading pullbacks
36:21
this is why you need the massive guide
36:23
that works in combination with this
36:25
video it gives you every possible
36:27
pattern variation and shows you exactly
36:30
where to enter and exit where to place
36:32
your stop loss and a lot more detail we
36:34
don't have enough time to cover all in
36:36
this video without this guide you are
36:38
missing out on a lot of the key info
36:40
that is required to trade these patterns
36:43
successfully so go to wisetrade.com and
36:45
get access to the patterns trading guide
36:48
right away again it's like having a
36:49
cheat code
36:51
now we have a very important question we
36:53
need answered do you guys like the
36:55
longer more detailed in-depth videos but
36:58
as a result to take longer to create and
37:00
release
37:01
or would you rather have shorter and
37:03
less detailed videos but then allows for
37:06
more videos to be released faster and
37:08
more often let us know in the comments
37:10
right now below
37:14
so if you enjoyed this video to show
37:16
your support please hit the like button
37:18
subscribe and turn on the notifications
37:21
bell
37:22
also please go follow our instagram
37:24
account at wisetrade to stay notified
37:27
about a lot of the big projects we have
37:29
on the way
37:30
so thanks for watching and i'll see you
37:32
in the next episode
37:40
so
37:45
[Music]
38:00
[Music]
38:09
[Music]
38:14
you