📈 FREE CHARTING PLATFORM: https://www.tradingview.com/chart?offer_id=10&aff_id=7016
💰 FREE COURSE: https://wysetrade.com/

✅ Best Crypto Broker 1: https://coinbase-consumer.sjv.io/09WbjR
✅ Best Crypto Broker 2: https://kraken.pxf.io/nXGaEA

In this video we show you the wysetrade advanced fibonacci retracement trading strategy. Fibonacci is used by many traders but is often used incorrectly. We combine all concepts from our past videos SO MAKE SURE YOU WATCH ALL OUR VIDEOS TO GET CAUGHT UP!

---

Transcript

0:02 [Music]

0:14 hey guys welcome back to another episode

0:17 in this video we will be showing you the

0:19 number one trading strategy that

0:21 combines fibonacci with price action

0:24 this will be the most important trading

0:27 video you will ever watch as we'll be

0:29 covering concepts you won't find

0:31 anywhere else online whether you trade

0:33 stocks options cryptos or currencies

0:36 this price action video is essential for

0:39 all traders of all asset classes we're

0:42 also going to go through the massive

0:43 bitcoin and crypto trade our members and

0:46 us gained on using this exact strategy

0:49 so that you can do it yourself

0:51 now if you want us to release more

0:53 videos more often please click the like

0:55 button subscribe and turn on the

0:57 notifications bell so that you know

0:59 exactly when we release new content

1:02 now here's a quick breakdown of what we

1:04 will be covering in this video

1:06 [Music]

1:10 so let's get right into it

1:19 [Music]

1:43 a topic we get asked to cover almost

1:45 daily is how to use fibonacci in trading

1:49 as you already know we always read the

1:51 comments to decide what topics to cover

1:53 next so right now go to the comments

1:55 section and tell us exactly what topic

1:57 you want us to cover next

2:00 when we say fibonacci we are referring

2:03 to the fibonacci tool and fibonacci

2:05 levels so why is the fibonacci tool and

2:08 fibonacci levels important to use and

2:11 understand

2:14 the fibonacci tool provides you with

2:16 trade entry opportunities at areas of

2:19 value during a moving trend as fibonacci

2:23 levels can act as a form of key support

2:26 and resistance and as you should know by

2:28 now support and resistance levels are

2:30 areas where price has a high chance of

2:33 reacting to or reversing from all which

2:35 again create high quality trade entry

2:38 opportunities for you

2:43 let's now access the fibonacci tool

2:49 to access the fibonacci retracement tool

2:51 click this button here on the left

2:55 scroll down

2:57 and click fib retracement right here

3:00 now to use it click on the chart

3:02 drag the tool upwards

3:05 and then click again

3:06 to lock it in

3:08 then to the right your fibonacci

3:10 retracement levels will appear

3:12 now these levels are important because

3:14 they are the most widely used fib levels

3:16 by traders and represent areas of value

3:19 within a moving trend

3:21 so let's go through how to apply the

3:23 fibonacci tool right on the charts

3:29 let's say you're analyzing this current

3:31 moving up trend

3:33 you have your run pull back run pull

3:36 back run

3:37 as you already know an uptrend makes

3:40 higher highs and higher lows

3:42 so if you are analyzing this run here

3:44 and want to apply the fib tool to find

3:46 areas of value to enter trays long at

3:49 here's how it works

3:51 you grab your fib tool click where the

3:53 swing low is at the bottom of the wick

3:55 drag the tool to the top of the moving

3:57 trend and where the swing high is you

3:59 will then see the fib level percentages

4:01 appear to the right

4:03 if price were to pull back to the 50

4:06 level this would represent a pullback of

4:08 50 percent from the recent swing high

4:11 here and if price were to pull back to

4:13 the 61.8 level this would represent a

4:16 pullback of 61.8 percent from the recent

4:19 swing high here

4:21 so let's show this in the opposite

4:22 direction and in a downtrend

4:28 you have your run pull back run pull

4:31 back run

4:33 as you already know a downtrend makes

4:35 lower highs and lower lows

4:38 so if you are analyzing this run here

4:40 and want to apply the fib tool to find

4:42 areas of value to enter trades short at

4:45 here's how it works you grab your fib

4:47 tool click where the swing high is at

4:49 the top of the wick drag the tool to the

4:51 bottom of the moving trend and where the

4:53 swing low is you will then see the fib

4:56 level percentages appear here to the

4:58 right

5:00 if price were to pull back to the 50

5:02 level this would represent a pullback of

5:05 50

5:06 from the recent swing low here

5:08 and if price were to pull back to the

5:10 61.8 percent level this would represent

5:13 a pullback of 61.8 percent from the

5:16 recent swing low here

5:21 now how do average traders traditionally

5:24 use fibonacci to enter trades

5:28 so in an uptrend when price pulls back

5:31 to these fib levels traders will enter

5:33 trades long when price hits these fib

5:35 retracement levels because fibonacci

5:38 levels act as a form of support in an

5:40 uptrend and again support levels are

5:42 areas where price can potentially bounce

5:45 and reverse from

5:48 going the other way in a downtrend when

5:50 price pulls back to these fib levels

5:52 traders will enter trades short when

5:54 price hits these fibonacci retracement

5:56 levels because fibonacci levels act as a

5:58 form of resistance in a downtrend and

6:01 again resistance levels are areas where

6:04 price can potentially bounce and reverse

6:05 from

6:08 now let's get into the psychology of

6:10 fibonacci and why fibonacci levels work

6:15 so the first reason fibonacci levels

6:17 work is because of herd mentality or

6:20 what can be deemed a self-fulfilling

6:22 prophecy a lot of traders subscribe to

6:25 these fib levels in order to identify

6:27 trade opportunities to be more specific

6:30 the school of fibonacci traders who look

6:32 to take action at fib levels adds

6:34 additional confluence to areas you are

6:37 already watching for trade opportunities

6:40 and we'll dive deeper into this in the

6:42 next section

6:43 and the second reason fibonacci levels

6:45 work is because fibonacci levels

6:48 actually represent areas of value during

6:52 a moving trend or more specifically

6:55 you're getting in at a better price

6:57 relative to where price has already been

7:16 [Music]

7:29 [Music]

7:34 so how do we use fibonacci as part of

7:37 our trading

7:41 first let's go through the exact fib

7:43 levels we use and the quality of the

7:46 different fibonacci levels

7:51 first the 50

7:53 or 0.5 fib level

7:56 this is a great quality fib level as it

7:59 represents a deep pullback during a

8:01 moving trend

8:02 as a quick note even though we say level

8:05 you should treat it as an area like all

8:10 things second the area between 50 fib

8:15 and 61.8 fib

8:18 this is again a great quality fib area

8:21 as it represents a deep pullback during

8:23 a moving trend

8:27 and third the 61.8 percent or 0.618 fib

8:32 level

8:33 this is the best and highest quality fib

8:36 level because it represents a very deep

8:39 pullback and best area of value during a

8:42 moving trend

8:44 [Music]

8:50 now there is a problem that lies with

8:53 using fibonacci levels the traditional

8:56 way

8:58 when price pulls back to a fib level a

9:01 trader subscribes to using they will

9:03 enter a trade instantly once price hits

9:06 the fibonacci level as they expect price

9:09 to reverse

9:10 now the problem with using fib this way

9:13 is that you're assuming that price will

9:15 reverse solely because it is at a fib

9:18 level and not take into account the

9:20 multitude of other moving parts within a

9:22 noisy and imperfect market

9:25 fibonacci levels do indeed work as

9:27 support and resistance levels but

9:29 fibonacci levels on their own isn't

9:31 enough

9:33 so this then leads us back to the main

9:35 question we get asked which is

9:37 how do we use fibonacci as part of our

9:40 trading process where it actually helps

9:43 here is the exact formula we use

9:46 we combine fibonacci levels with key

9:50 levels of support and resistance or

9:53 areas of confluence two increase trade

9:57 quality now this is a stacked statement

9:59 so let's break it down starting with

10:01 combining fibonacci levels with

10:04 key levels of support and resistance to

10:07 increase trade quality

10:12 first let's quickly recap what key

10:15 levels of support and resistance is key

10:18 levels of support and resistance are

10:20 levels where price has reacted to

10:22 bounced from or reversed from in the

10:25 past

10:26 this matters because if price reacted to

10:29 these levels in the past there is a

10:31 chance that price will react to them

10:33 again in the future meaning possible

10:36 trade opportunities arise at these

10:38 levels

10:40 now back to the first way we use

10:41 fibonacci which is combining fibonacci

10:44 levels with key levels of support and

10:47 resistance to increase trade quality

10:50 so let's do this right on the charts but

10:52 from our perspective at every step

10:54 you had your key level of resistance

10:56 here so you would have had it drawn in

10:58 and extended out in case price reacted

11:01 to it again in the future

11:04 after price broke out this key

11:06 resistance level then becomes new

11:08 support which means if price approaches

11:10 this level there are possible trade

11:13 opportunities long

11:15 so how do we increase the trade quality

11:17 of this trade opportunity this is where

11:20 the fib tool comes into play

11:22 with the fib tool click at the swing low

11:25 here

11:25 drag it up to the recent swing high

11:28 and look at that the trade opportunity

11:30 you identified is also right at the 61.8

11:34 percent fib retracement level which is a

11:36 very high quality fib level as it

11:39 represents a very deep pullback within

11:41 the moving trend and a great area of

11:43 value to get in at

11:45 so the combination of a key support

11:48 level with a key fib level increases the

11:50 quality of the trade opportunity instead

11:53 of taking a trade with only a support

11:55 level

11:56 now as price approached this level of

11:58 support you had no idea whether there

12:00 would be a reaction to the level or not

12:03 you needed to wait for price action

12:05 through candlestick formations at the

12:07 area to show that prices indeed reacting

12:10 to the level this time around

12:12 so when price reached the level you had

12:15 exactly that which was a candle with a

12:17 long wick sticking out which shows a

12:19 reaction to the level and confirms the

12:22 trade opportunity long

12:24 so let's build on this and move on to

12:26 the next way we use fibonacci which is

12:30 combining fibonacci levels with areas of

12:33 confluence to increase trade quality

12:41 so first areas of confluence are areas

12:44 where multiple schools of traders are

12:46 stacked and looking to take action which

12:49 presents trade opportunities

12:52 these trade opportunities at these areas

12:54 of confluence where many schools of

12:56 traders are stacked have a higher

12:58 probability of going in your favor due

13:01 to many traders taking action at the

13:03 same time which creates momentum for the

13:06 trade

13:08 this here is where the short trade

13:09 opportunity occurred as it is an area of

13:12 confluence and access point so let's

13:14 break it down

13:15 first you would have identified this as

13:17 a clear moving downtrend as price is

13:19 making lower highs and lower lows so you

13:21 want to trade with the moving downtrend

13:25 you add your key level of resistance

13:26 here because of this reversal point

13:30 you have your trend line here and

13:32 because it crosses with the resistance

13:33 level it makes it an area of confluence

13:37 you then have your moving average here

13:40 notice how it intersects perfectly at

13:42 the access point and area of confluence

13:46 so to increase the quality of the trade

13:48 we grab the fib tool click at the swing

13:50 high here drag it down to the recent

13:52 swing low

13:54 and look at that the trade opportunity

13:55 you identified at the area of confluence

13:58 is also at the 50

14:00 fib retracement level

14:03 so when price reached the level you had

14:05 multiple longwood candles sticking out

14:08 and failing to break through which shows

14:10 a reaction to the area of confluence and

14:12 confirms the trade opportunity short so

14:16 why is this a high quality short trade

14:19 at this area of confluence

14:21 you had support and resistance traders

14:23 looking to enter short you had trend

14:25 line traders looking to enter short

14:27 moving average traders looking to enter

14:29 short trend traders looking to enter

14:32 short candlestick and price action

14:34 traders looking to enter short

14:36 confluence traders looking to enter

14:38 short and then also you had fibonacci

14:41 traders looking to enter short

14:43 all these schools of traders stacked at

14:45 the area of confluence looking to take

14:47 action and in this case take action and

14:50 enter short trades increases the chances

14:52 of the trade going in your favor which

14:54 means it is a high quality short trade

14:56 entry

15:03 before we get into the strategies

15:06 section there is one topic and

15:08 foundational trading ideology you must

15:11 learn first it is the concept of trade

15:15 quality without fully understanding

15:17 trade quality your trading journey ends

15:20 here and you will always be at a huge

15:22 disadvantage

15:23 this is the most important training

15:25 lesson you will ever learn

15:38 [Music]

15:50 [Music]

16:12 so before we continue

16:14 at our office

16:18 stored on our servers

16:22 we have a series of advanced high

16:24 quality trading videos already completed

16:28 ready to be uploaded to youtube

16:31 now the only way we'll release them is

16:33 if enough of you do the following

16:37 first

16:38 hit the thumbs up button on this video

16:41 second hit the subscribe button

16:44 third hit the notifications bell

16:47 fourth leave a comment below with

16:50 exactly what video topics you want us to

16:52 cover

16:54 and five the most important one

16:56 go follow our instagram page which is

17:00 wise trade

17:01 the link is also in the description

17:03 below this video

17:05 [Music]

17:26 all right let's get back into it

17:35 so what is trade quality exactly

17:40 any attributes and factors that

17:42 influence the chances of success of a

17:45 trade opportunity you have identified

17:48 meaning you shouldn't look at trading as

17:50 taking right or wrong trades but you

17:52 should look at trading as taking low

17:54 quality trades versus high quality

17:56 trades

17:57 so how do we increase the quality of a

17:59 trade

18:02 simple the more you learn and understand

18:05 about price action the more high quality

18:07 traits you can identify

18:10 the more high quality traits means the

18:12 higher the probability it will go in

18:14 your favor but more importantly go in

18:16 your favor with true momentum and

18:19 distance so that you can actually make a

18:21 good return on the trade

18:26 so here it is the most important part

18:29 we're now going to go through a list of

18:32 high quality traits the more you have

18:34 from this list within a trading

18:36 opportunity you have identified the

18:38 higher the trade quality every example

18:41 in this video will be coming back to

18:43 reference this list

18:46 first

18:47 trend trading

18:49 are you trading with the moving trend

18:51 in an uptrend you would want to look for

18:54 long trade entries to move with the flow

18:56 of the upwards market pressure

18:59 in a downtrend you want to look for

19:01 short trade entries to move with the

19:03 flow of the moving downwards market

19:06 pressure

19:08 next break breakout momentum

19:11 are you trading with heavy breakout

19:13 momentum

19:14 so what you do is you identify a key

19:16 level of support or resistance where

19:19 price tried multiple times to break

19:21 through and failed

19:24 then price finally broke through the

19:26 level showing the heavy bullish momentum

19:28 and heavy buying presence that entered

19:31 the market so from a price action

19:33 perspective for price to be able to

19:35 break such a key level that held

19:37 multiple times there needed to be heavy

19:40 momentum that entered the market so what

19:42 you want to do is trade with the heavy

19:44 bullish momentum and buying presents so

19:47 that you can ride the wave

19:50 next a fresh trend versus trend

19:52 exhaustion

19:54 are you getting into a trade at the

19:56 start of a reversal and a fresh trend

19:59 where price has legs and room to move

20:01 fresh trends and fresh reversals are

20:04 powerful because you can capture a

20:05 larger portion of the move as you are

20:08 getting in early and at the start

20:10 in contrast when you enter trades after

20:12 the trend has already moved

20:14 significantly the trend might suffer

20:16 from trend exhaustion and if enough

20:18 people start taking profit it can

20:20 trigger a larger reversal

20:24 next using the higher time frames

20:27 things you find on the higher time

20:29 frames hold more weight when we say

20:31 higher time frames we are referring to

20:34 the monthly and weekly time frame

20:35 specifically so what exactly is things

20:38 you find

20:40 it can be key levels price movement

20:42 price patterns or any form of price

20:44 action that is visible on the higher

20:47 time frames that influences your

20:49 directional bias

20:50 price action takes longer to form on the

20:53 higher time frames but as a result it

20:55 gives you a more accurate depiction of

20:57 where price is headed and of what the

20:59 market is actually

21:00 doing next

21:02 multi-time frame usage and time frame

21:05 confluence

21:07 do you have time frame confluence

21:09 meaning using multiple time frames that

21:11 give you the same directional bias we'll

21:13 cover this in an upcoming video

21:16 next divergence

21:19 remember in our previous video

21:21 divergences can be very effective

21:24 engaging possible reversals of price and

21:27 reversals of the trend so here is a

21:30 chart we showed you in our last video

21:32 showing the different qualities and

21:33 types of divergences we look for again

21:36 reference our last video on rsi where we

21:38 cover divergences in depth

21:42 next

21:43 fibonacci retracement levels

21:46 are you at a fib level and if so which

21:48 fib level

21:49 are you combining fibonacci levels with

21:52 key levels of support and resistance

21:54 with areas of confluence

21:57 next

21:58 trend lines

22:00 do you have a trend line that also lines

22:02 up with where your trade entry is

22:07 do you have a trendline break that

22:08 signals a trend change

22:11 next

22:12 moving averages

22:14 does the moving average line up

22:15 perfectly with your trade opportunity in

22:17 area of confluence

22:19 which moving average is it certain

22:21 moving averages work better for specific

22:23 time

22:24 frames next

22:27 areas of confluence

22:29 are you at an area of confluence

22:32 and if so how many traits are stacked at

22:34 the area of confluence the more that are

22:36 stacked together at the access point

22:38 means the higher the quality of the area

22:40 of confluence

22:42 next

22:42 candlestick patterns

22:45 do you have a candlestick pattern

22:47 forming and if so what kind

22:50 do you have multiple candlestick

22:51 patterns stacked together

22:53 is the candlestick pattern forming at a

22:55 key level

22:56 is there price action inside of the

22:58 candlestick on the lower time frame

23:02 next

23:03 chart patterns

23:05 do you have chart patterns forming do

23:07 you have patterns that show a trend

23:09 continuation do you have patterns that

23:11 show a trend reversal now chart patterns

23:14 is a very very in-depth topic that we'll

23:16 cover in a future video

23:18 now a final branch trait that is very

23:21 important

23:22 support and resistance quality traits

23:26 so not all levels of support and

23:28 resistance are the same meaning you need

23:31 to also gauge the quality of an sr level

23:35 the higher the quality of the support or

23:37 resistance level the higher the

23:39 probability that price will actually

23:41 react to the level of support or

23:43 resistance this is very key

23:47 now here are the key traits to look for

23:49 when gauging the quality of an sr level

23:53 first found on the higher time frames

23:57 sr levels found on the higher time

23:59 frames specifically the monthly and

24:01 weekly are the most key levels

24:04 found on means actually visible on the

24:07 higher time frames

24:09 second extreme swing highs or lows

24:13 meaning the highest and lowest points

24:15 prices reached in recent time

24:19 third

24:20 multiple reactions bounces or reversals

24:23 from the level

24:26 and fourth recently formed

24:28 meaning it was created very close to the

24:31 left of where price currently is

24:35 so to recap the more traits from this

24:37 list stacked together on a trade

24:39 opportunity you are looking at makes it

24:41 a very high quality trade

24:44 there are still a lot of other trade

24:46 quality traits and concepts we haven't

24:49 discussed yet which we will introduce in

24:51 future videos

24:53 so now that you understand the premise

24:55 of trait quality and fibonacci let's

24:57 combine this all together and move into

25:00 the strategies section

25:09 [Music]

25:18 [Music]

25:25 [Music]

25:32 now there are multiple parts to the

25:34 strategy but the core of it is a trend

25:37 trading strategy

25:40 so we're going to start simple with

25:42 combining fibonacci with key levels of

25:45 support and resistance using only one

25:47 time frame

25:53 now every example we go through we will

25:55 do it through the process of identifying

25:58 and listing high quality traits

26:01 this here is where the trade qualities

26:03 list and counter will appear

26:06 this here is where the trade opportunity

26:08 presented itself so let's go to the high

26:11 quality trades that this trade

26:12 opportunity had

26:14 this is the one hour time frame

26:17 now the first high quality trade you had

26:19 was a key level so you had it drawn in

26:21 and extend it out

26:23 now what quality traits does this key

26:25 level have

26:26 multiple reactions through these three

26:28 reversals and recently formed because

26:31 the level was created close by directly

26:34 to the left

26:42 the second high quality trait you had

26:44 was heavy bullish momentum so this key

26:47 resistance level previously held three

26:49 times before price finally broke through

26:52 it showing the heavy bullish momentum

26:55 and buying presents which is required

26:57 for price to be able to break through

26:59 such a key level

27:01 this then means you want to trade with

27:03 this heavy bullish momentum and heavy

27:06 buying presence

27:13 and this is where the trade opportunity

27:15 long presented itself

27:18 with the fib tool click at the swing low

27:20 here

27:21 drag it up to the recent swing high

27:23 and notice how the key level is also

27:27 right at the 61.8 percent fib

27:29 retracement level which is a very high

27:32 quality fib level

27:40 these candles with the wicks sticking

27:42 out right at the level shows a reaction

27:44 to the level which then confirms the

27:47 trade opportunity long

27:54 all these traits listed make this a high

27:57 quality long trade opportunity

27:59 so this was just starting simple let's

28:01 now take it up a notch and move into

28:04 combining fibonacci with areas of

28:07 confluence

28:14 in this example we're going to go even

28:16 deeper and explain what should have been

28:18 going through your mind at every step of

28:20 the trade

28:23 this here is where the trade opportunity

28:25 long presented itself so let's break it

28:27 down

28:28 you first identified that this was a

28:30 clear uptrend through the higher highs

28:32 and higher lows so you want to trade

28:34 with the moving uptrend

28:39 this is a high quality trade

28:42 next you should have identified your key

28:44 level of resistance turned to support

28:47 this is a very high quality level

28:49 because price reacted to it multiple

28:51 times and was recently formed

28:57 another high quality trait

29:01 you then would have identified that you

29:03 had heavy bullish momentum because price

29:06 broke through this very key level of

29:08 resistance that previously held multiple

29:10 times

29:11 and again for price to break such a key

29:13 level you needed heavy bullish momentum

29:15 and buying presence

29:18 and knowing this you want to trade with

29:20 this bullish momentum

29:24 another high quality trait

29:29 as price started pulling back you would

29:30 have identified your possible trade

29:33 opportunity long at the key level of

29:35 support

29:37 next you had your moving average that

29:39 crossed perfectly with the key level and

29:42 trade opportunity

29:47 another high quality trait

29:50 next you would have identified that a

29:53 trend line crossed perfectly with your

29:55 key level and moving average

30:00 another high quality trade

30:04 then you would have checked to see if

30:06 you were at a fib level as well

30:09 click at the swing low drag it up to the

30:11 recent swing high

30:14 and perfect the 50 fib retracement level

30:17 also lines up right at the area

30:22 another high quality trade

30:26 now the fact that the key level trend

30:28 line moving average and 50

30:31 fib level all intersected perfectly

30:34 makes this an area of confluence

30:37 or an area where multiple schools of

30:39 traders cross and are looking to take

30:41 action

30:42 another high quality trade

30:48 now look at all the high quality traits

30:50 that are stacked in this trade

30:52 opportunity

30:53 these are very high quality trades which

30:55 means they have a very high chance of

30:57 success

31:00 so this part is very important even

31:03 after all the high quality traits we

31:05 have identified as price pulled back and

31:07 approached this area you had no idea

31:10 whether there would be a reaction to the

31:12 area or not you needed to wait for price

31:14 action through candlesticks forming at

31:16 the area of confluence to show that

31:18 price and the market is indeed reacting

31:22 to the area of confluence this time

31:24 around

31:25 and that is exactly what you got

31:27 you had these candles with the wicks

31:29 sticking out right at the area of

31:31 confluence which shows a reaction to the

31:34 area

31:41 now even after you had candlesticks form

31:43 and react to the area of confluence you

31:45 don't instantly enter a trade long you

31:48 need the final two steps which is

31:51 one the trend change confirmation

31:53 pattern and two our key entry and exit

31:56 strategy and entry tool

31:59 we'll cover this as we progress through

32:00 the video

32:03 so let's show this again

32:07 so this is the weibo stock

32:09 many of our members took this exact

32:12 trade because of how picture-perfect it

32:14 was

32:15 this year is where the trade opportunity

32:16 long occurred so let's break it down

32:19 first we identified that this was a

32:21 clear moving uptrend as price was making

32:23 higher highs and higher lows so you want

32:26 to trade with the moving trend this was

32:28 your first high quality trade

32:31 you then had your key level of

32:33 resistance turned to support another

32:36 high quality trade

32:39 you then had your trend line that

32:40 crossed perfectly with the key level

32:43 another high quality trade

32:46 you then had your moving average that

32:48 also crossed with the key level and the

32:50 trend line

32:51 another high quality trade

32:55 with the fib tool you click at the

32:56 recent swing low here drag it to the

32:58 recent swing high

33:01 and notice how the 61.8 percent fib

33:04 level also lines up with your trade

33:06 opportunity another high quality trade

33:11 now the trend line key level moving

33:14 average and fib level all lining up

33:16 perfectly gives you an area of

33:18 confluence

33:21 as price pulled back to the level you

33:23 had a ton of candles that tried over and

33:26 over and over again to push lower but

33:28 failed this all shows a clear reaction

33:30 to the area of confluence

33:34 you then need the final two steps again

33:38 so let's do this one more time

33:42 this is the air canada stock trade our

33:44 members took the entry occurred right

33:46 here so let's break it down

33:49 first you identified the uptrend so you

33:52 want to trade with the trend

33:56 next you identify the key level here

34:00 the moving average then lined up with

34:03 your key level and is where the trade

34:05 opportunity presented itself

34:09 the trend line also perfectly crosses

34:12 with your key level and moving average

34:17 with the fib tool click at the swing low

34:19 here drag it to the recent swing high

34:22 the 61.8 percent fib area lines up

34:25 perfectly

34:28 this thing gave you an area of

34:30 confluence making this a high quality

34:32 long trade opportunity

34:36 as price pulled back to the area you add

34:38 a perfect along with candle right at the

34:40 area of confluence which shows a

34:42 reaction to the level

34:45 now this leads us perfectly into our

34:47 next topic so after you had the

34:50 candlestick react to your area of

34:51 confluence you don't enter a trade long

34:54 instantly and blindly you need the trend

34:56 change confirmation pattern so let's get

34:58 right into it

35:10 now before we continue if you're

35:12 enjoying this video and want us to

35:13 release more videos more often please

35:15 hit the thumbs up button

35:17 and in the comments below tell us what

35:19 videos you want us to cover next and any

35:21 questions you have

35:23 also go give our instagram page a follow

35:30 is where the trade opportunity long

35:32 occurred

35:33 you first identified a clear uptrend so

35:36 you want to trade with the trend

35:40 next you had your key level of

35:41 resistance turned to support

35:46 next you had heavy bullish momentum

35:48 because price broke the key level that

35:50 previously held multiple times

35:55 then the moving average crossed with

35:57 your key level and where the trade

35:58 opportunity long presented itself

36:03 with the fib tool

36:04 swing low to swing high

36:07 and you have the 50 to 61.8 percent fib

36:11 zone that lines up with your trade

36:13 opportunity area

36:16 this then gave you an area of confluence

36:20 when price pulled back to this area you

36:22 had a long wick candle right at the

36:24 level which shows a reaction to the area

36:26 of confluence

36:29 at this point you still don't jump into

36:32 a long trade instantly this then leads

36:34 us to the next step required which is

36:36 the trend change confirmation pattern

36:39 now why exactly do you need a trend

36:41 change confirmation pattern what we are

36:43 going to explain right now is very

36:45 important to understand

36:47 your big picture trend is indeed an

36:49 uptrend and bullish

36:51 but your immediate trend is a downtrend

36:54 and bearish

36:55 meaning there is a conflict in your

36:58 directional bias

36:59 or to be more specific

37:01 the larger trend is telling you to trade

37:03 long while the short-term trend is

37:06 telling you to trade short the two

37:08 trends are telling you to trade in two

37:10 different directions

37:11 so what can happen is price can stall at

37:14 your area of confluence

37:16 react to it and then break through and

37:18 continue down and trigger a larger trend

37:21 change this happens when not enough

37:23 buyers step in at the area of confluence

37:27 don't forget that this here is a current

37:29 moving downtrend which can continue on

37:32 in its directional path

37:34 so how do we get around this problem

37:37 you need this short-term downtrend to

37:40 turn from bearish to bullish so that

37:42 this short-term trend matches the

37:45 direction of the big picture trend

37:48 now to do this you need to look for a

37:50 trend change pattern inside of this

37:53 downtrend that shows a change from a

37:55 downtrend to an uptrend or from bearish

37:57 to bullish or to be more specific to

38:00 signal that the short-term downtrend is

38:02 over and that the larger uptrend can

38:04 continue or to be even more specific to

38:06 confirm that enough buyers actually

38:08 stepped in at the area of confluence now

38:11 there are many trend change confirmation

38:13 patterns we use but to keep it simple

38:15 for now what you do is you place a trend

38:18 line onto the immediate trend like this

38:21 and if you have a trendline break

38:24 this signals a trend change from a

38:26 downtrend to an uptrend a change from

38:28 bearish to bullish and shows that the

38:30 short term downtrend is over and that

38:31 the larger uptrend can continue

38:34 if price doesn't break the trend line

38:36 and continues down there's no trade

38:38 because not enough buyers stepped in at

38:40 the area and it's clear the sellers are

38:43 in control

38:44 so after you had that trend change

38:47 confirmation breakout all things are a

38:49 go this is when you need the final step

38:51 of the formula which is to go to the

38:53 lower intraday time frames and use our

38:56 key entry and exit strategy and entry

38:59 tool

39:01 so this leads us to our next topic what

39:03 if you cannot place a trendline onto the

39:06 immediate trend

39:08 this is why you need to know how to use

39:10 multi time frames knowing how to use

39:12 multi-time frames is what separates the

39:14 amateurs from the pros

39:22 so before we continue

39:25 every day we get asked the same two

39:27 questions

39:28 how do we design and edit our youtube

39:30 videos

39:32 how did we grow our youtube channel so

39:34 fast

39:35 if you want to learn how to do this all

39:37 yourself step by step head on over to

39:39 our website at wisetrade.com

39:42 the link is also in the description

39:44 below

39:48 so let's start from the top again except

39:51 now we'll be combining the usage of

39:53 multi-time frames this is the eight hour

39:55 time frame and this is where the trade

39:57 opportunity long occurred

40:00 first you identified the key level here

40:05 next you had heavy bullish momentum

40:08 because price broke the key level that

40:10 previously held multiple times

40:14 then the moving average crossed which is

40:16 where the trade opportunity long

40:17 presented itself

40:20 with the fib tool swing low to swing

40:22 high

40:25 and the fib zone lines up

40:29 this then gave you your area of

40:31 confluence

40:34 when price pulled back to the area you

40:36 had a long wick candle with the wick

40:38 sticking out showing a reaction to the

40:40 area of confluence

40:44 so in the last section what we would do

40:46 is we would put a trend line onto the

40:49 immediate trend and wait for a break to

40:51 occur before looking for a trade entry

40:53 long now the issue with doing this on

40:55 the current trend is that price movement

40:58 is too tight meaning you cannot clearly

41:00 see the swings of price and cannot see

41:02 the swing highs and swing lows so if you

41:04 attempted to place a trendline up close

41:07 and tight to the trend like this you

41:09 will often be faked out by false

41:11 breakouts this is a very important point

41:14 price movement won't always be suitable

41:16 for you to place a trendline hence why

41:18 you need to know all the trend change

41:20 patterns which we will cover in a future

41:22 video but now for this particular case

41:24 how do we get around this problem of not

41:27 being able to place a trendline and

41:28 here's what you need to do we need to

41:31 use a lower time frame where we can look

41:33 inside of this downtrend and be able to

41:35 see the swings and price movement of

41:38 this trend and then be able to look for

41:40 price action that shows a trend change

41:43 from a downtrend to an uptrend to

41:45 confirm that the downtrend is over and

41:46 that the larger uptrend can continue so

41:48 let's pull up the lower time frame

41:50 specifically the four hour time frame

41:52 and put it beside this one

41:55 so the chart on the left is the eight

41:57 hour time frame we just looked at

41:59 meaning every candlestick represents

42:01 eight hours of time the chart on the

42:03 right is the same asset but is the one

42:05 hour time frame meaning every

42:07 candlestick represents one hour of time

42:10 here's the key level on the eight hour

42:12 time frame and here is the same key

42:13 level on the one hour

42:15 here's the eight hour pullback downtrend

42:18 where we tried to place the trend line

42:19 but couldn't and here is the same

42:21 pullback downtrend on the one hour time

42:23 frame here is the area of confluence we

42:26 previously identified and where the long

42:28 trade opportunity occurred and here is

42:30 the same area on the one hour time frame

42:34 now on the eight hour time frame we

42:35 previously looked at notice how you

42:37 couldn't see the swings of price whereas

42:39 on the one hour time frame you can

42:41 clearly see the swing highs and swing

42:43 lows and movements of price

42:46 again we are looking on the one hour

42:48 time frame in this downtrend for price

42:50 action that signals a trend change from

42:52 a downtrend to an uptrend and here it is

42:55 on the one hour time frame we can easily

42:58 place a trendline connecting these swing

43:00 highs because again on this time frame

43:02 we can actually see the swing highs and

43:04 swing lows

43:05 and once you had the trend line break

43:07 this was your trend change confirmation

43:09 the one hour time frame turned from

43:12 bearish to bullish and matches the eight

43:14 hour time frame big picture bullish

43:16 directional bias

43:24 so one more point as to why a trend

43:27 change confirmation pattern and using

43:29 multi-time frames is important

43:31 you could have easily had a long wick

43:32 candle form and stall at the area of

43:36 confluence on the eight hour time frame

43:38 here but then on the lower time frame

43:40 price could have done this instead

43:42 run

43:43 pull back run

43:45 pull back and instead of breaking out

43:47 and through the trend line started

43:49 another run and continued on triggering

43:52 a larger trend change so after you have

43:55 your trend change confirmation breakout

43:57 this is when you need the final step of

43:59 the formula which is to go to the lower

44:01 intraday time frames and use our key

44:03 entry and exit strategy and entry tool

44:07 so now the part you've all been waiting

44:09 for the massive bitcoin and crypto trade

44:12 our members and us took using this exact

44:16 strategy

44:21 [Music]

44:42 so

44:48 [Music]

45:04 this trade used everything we have shown

45:06 you in this video and also some more

45:09 advanced concepts

45:11 so let's break this down step by step

45:15 this is the bitcoin monthly time frame

45:17 meaning every candlestick represents one

45:19 month of time as we previously discussed

45:21 things you find on the higher time

45:23 frames such as the monthly and weekly

45:25 hold more weight

45:29 this is a very very key point because

45:32 the monthly is slower moving and things

45:35 take longer to form as a result it gives

45:38 you a very accurate depiction of where

45:40 the market is headed and of what the

45:42 market is actually doing

45:44 now you don't trade on the monthly

45:46 timeframe you only use it as guidance

45:48 for trade entries you take on the lower

45:50 time frames

45:51 [Music]

45:54 so there were three high quality traits

45:57 that gave us our clear bullish

45:59 directional bias even before we brought

46:02 in other time frames

46:04 first your key monthly resistance level

46:07 turn to support

46:14 price then broke through this very key

46:16 monthly resistance level that held two

46:18 times

46:25 next price was in a clear downtrend

46:27 before price made a higher high which

46:30 shows a clear trend change pattern and a

46:32 clear moving

46:40 uptrend even before we go down in time

46:43 frames everything we just covered tells

46:46 you one simple thing look for long

46:48 trades

46:49 now this is a very important point this

46:52 is what price action is in a nutshell we

46:54 were reacting to what we saw the market

46:57 doing not guessing where the market

46:59 would go next

47:00 this wasn't even on our radar until we

47:03 saw the breakout momentum and heavy

47:05 bullish presence that entered the market

47:07 which is then when it entered our watch

47:10 list

47:11 as retail traders you don't have the

47:13 power to move the market you are just

47:15 reacting to what you see and entering

47:18 trades in the direction of where the

47:20 herd and crowd is headed that's it

47:23 so let's pull up the weekly time frame

47:25 so that we can see this in more detail

47:28 so the chart on the left is the bitcoin

47:30 monthly time frame we just looked at and

47:32 the chart on the right is the bitcoin

47:34 weekly time frame meaning each

47:36 candlestick represents one week of time

47:38 this was the monthly key level and this

47:40 is the same key level but on the weekly

47:42 timeframe here was where the breakout

47:44 occurred on the monthly

47:46 here is the same breakout area on the

47:48 weekly so let's go through the high

47:50 quality traits on the weekly time frame

47:52 full screen

47:55 this is where the trade opportunity long

47:57 occurred which was at the key monthly

48:00 level and now also the key weekly level

48:03 again things you find on the higher time

48:05 frames hold more weight

48:07 so first you add your very key weekly

48:10 level

48:13 next this level that held three times

48:16 previously finally broke through which

48:18 shows how much bullish momentum and

48:20 buying presence had entered the market

48:25 next we are also in a clear moving

48:27 uptrend through the higher highs and

48:29 higher lows

48:32 we then had the moving average that

48:34 crossed perfectly with the key level and

48:37 is where the trade opportunity long

48:38 presented itself

48:42 next with the fib tool click at the

48:43 swing low drag it to the swing high

48:46 and notice how the 61.8

48:49 fib area also lines up with our trade

48:52 opportunity

48:55 this then gave you your area of

48:56 confluence

48:59 remember that this is a level that is

49:01 visible

49:02 on the monthly and weekly meaning there

49:04 is a very high chance that price will

49:06 react to the level when price finally

49:09 hit the area of confluence you had

49:10 candles with the wicks sticking out

49:12 right at the level which shows a

49:14 reaction to the area of confluence

49:18 so as we previously discussed we would

49:20 usually try to place a trend line onto

49:22 the immediate trend and wait for a break

49:25 to confirm the trend change now the

49:27 issue with trying to put a trendline on

49:29 this current trend is that price

49:30 movement is too tight and we cannot

49:32 clearly see the swing highs and lows so

49:34 if we were to put a trend line up close

49:36 and tight like this it'll result in fake

49:38 and false breakouts so again to get

49:40 around this problem

49:42 we need to use a lower time frame to

49:45 look inside of this pullback where we

49:47 can actually see the swing highs and

49:49 lows of price and then be able to look

49:51 for price action that shows a trend

49:53 change from a downtrend to an uptrend so

49:56 let's pull up the daily time frame and

49:57 put it beside this one

50:00 the chart on the left is the bitcoin

50:01 weekly time frame we just looked at

50:04 and the chart on the right is the

50:05 bitcoin daily time frame here is the

50:08 very key monthly and weekly level and

50:10 here is the same key level on the daily

50:13 here is the pullback area on the weekly

50:16 here's the same pullback area on the

50:17 daily

50:18 here is the weekly time frame area of

50:20 confluence here's the same area of

50:22 confluence on the daily

50:25 now on the weekly time frame notice that

50:27 you couldn't see the swings of price

50:29 whereas on the daily time frame you can

50:31 clearly see the swing highs and lows and

50:33 movements of price

50:35 so again we are looking for price action

50:37 that signals a trend change from a

50:39 downtrend to an uptrend and we got this

50:41 trend change pattern in two forms

50:44 the first is the trendline break

50:46 on the daily time frame we can easily

50:48 place a trend line onto the immediate

50:50 trend like this and then once you had

50:52 that trend line break this was your

50:54 first trend change confirmation

50:56 now secondly you also had a higher high

50:59 which is another trend change pattern

51:02 run

51:03 pull back run

51:04 pull back run

51:06 but notice how this run here failed to

51:08 make a lower low but instead made a same

51:10 low or a double bottom which shows a

51:13 loss of momentum and this all occurred

51:16 at the weekly and monthly level

51:18 clear lower highs before price finally

51:21 broke through the trend line they made a

51:22 higher high which is again another trend

51:25 change pattern

51:32 so after you had your trend change

51:34 confirmation breakout all things are a

51:36 go this is again when you need the final

51:39 step of the formula which is to go to

51:41 the lower intraday time frames and use

51:43 our key entry and exit strategy and

51:46 entry tool

51:47 this was a very high quality a plus

51:50 trade almost picture perfect

51:52 now there were many different ways our

51:54 members entered on this trade some

51:56 directly through bitcoin as we showed

51:58 and some through positively correlated

52:00 assets

52:02 so now what exactly is the entry and

52:05 exit strategy and entry tool

52:07 meaning exactly where to enter trades

52:10 exactly where to exit

52:11 exactly where to put your stop loss

52:14 exactly where to put your profit target

52:16 how to manage an open winning position

52:18 to maximize profits and minimize risk

52:20 and all the other high quality traits to

52:23 look for within a trade opportunity

52:26 and a ton of other content that won't be

52:28 available on our channel as it is too

52:30 dense if you want to learn this all head

52:32 on over to our website at wisetrade.com

52:38 so in the comments right now tell us

52:40 exactly what topics you want us to cover

52:43 next and any questions you have again if

52:46 you want us to continue to release more

52:48 videos on youtube here's how you can

52:50 show your support

52:52 hit the like button

52:54 subscribe

52:56 turn on the notifications bell and more

52:59 importantly go follow our instagram page

53:01 as we'll be posting more content over

53:02 there

53:05 now

53:05 we also have a great selection of

53:07 trading art that shows you the exact

53:10 chart patterns and candlestick patterns

53:12 we use

53:13 if you want access to these pieces also

53:15 head on over to our website so thanks

53:18 for watching and i'll see you in the

53:19 next episode

53:25 [Music]

53:54 you