So if you've been day trading for any amount of time, you've
definitely heard the phrase double bottom and double top.
When there is an area of support and the price has bounced off of it,
it tends to come down and test it again and bounce off of it.
Same with the level of resistance the price will touch it and then
come back up to retest it.
The issue with double tops and double bottoms is you don't know if
it's going to be a triple top or not show in this video, I'm going to
show you exactly how to trade a double top and know that it is
actually going to reject off of that second retest.
Welcome back to the channel, everybody.
My name is already and this is the moving averages, shall we discuss
everything day trading to keep you profitable on a consistent basis.
This strategy is ridiculously simple so it does not require an 18
minute video.
So this is going to be explained to you in the next 5 minutes.
I've got two coffees cuz I've had 3 hours of sleep.
So let's get into the charts.
All right, we are looking at us-30 on a 15-minute time frame.
You do not want to do this on a lower time frame like the one minute
or the 5 minute because you want to look at key levels of support and
resistance and on those lower time frames, those are not he levels of
support and resistance.
They are kind of just he's really weak levels, the higher the time
frame, the more significant the level.
So when looking at support and resistance levels, basically, you're
just drawing a horizontal line across multiple intersecting points.
You're only taking into account, the big rejection
Areas where the price saw a lot of resistance or a lot of support and
bounce off of that.
And it's that simple looking back here from today back to April 16th
on us-30, I've got three lines and that's it.
Now what you're going to want to do is add some indicators to your
chart to give you a visual representation of what's actually going on
with the momentum, this is strictly momentum trading.
The first indicator that you're going to want to have up on the screen
is the RSI typing RSI to the indicators tab.
It is the relative strength index post are next to.
It should be one of your favorites.
It looks like this or his mind as if you'd like yours to look like
this ad the RSI and click on the little settings, wheel change the
artist's eye color to yellow in accordance with the color theme of the
channel, change the upper band and the lower band 250 and leave it as
a solid line and leave the standard input as 14.
I like to have three moving averages up there, smooth, moving,
averages the 21, 250 and the 200 just so I can get
Their idea of what the prices doing it for trending up or trending
down.
So now that we've got that set up, we look at our levels, we see these
key levels of support and key levels of resistance.
So we saw the price come down here to $33,762 reject off of it.
And then came back down to test again, and how do you know if the
price is actually going to stop here or continue down?
You wait for rejection off of that level.
And then, once that rejection has happened with this big, huge green
candle.
You look at the RSI you clearly see here, we had a level and a level.
This is completely flat and parallel.
However, looking at the RSI we saw a low Point here and a higher low
here, creating a Divergent, meaning that instead of them being on the
same level, one is higher or lower.
It's easy to tell you take your little trendline tool and you see that
that is not level yet.
These two are
Level meaning that the momentum has diminished and we should see a
pump to the upside.
So once you saw this rejection candle, you're comfortable taking a
long position.
How do we do that, wherever you enter in on this candle, you set your
entry price and a stop loss below the bottom of the WIC and you're
looking for about a 1/2 to risk reward ratio.
That's it right here.
You got 200 points off of this one rejection, one more example and
that's it like we have a level here.
We're waiting for the price to come back up and test this Zone.
It did it again, we got a rejection, we see it perfectly horizontal,
it's on the same exact level so we take a look at our RSI and we see
this high and this one's actually lower drawing a trend line across
that.
You can see it is not horizontal meaning that that should go on the
downside.
You place, your short position with a stop loss above the Wicks and
you're looking for a 1 to 2 and again you got like another hundred
forty points off of this one move and again, it only works on higher
time frame.
These are long-term tree
The reason is on higher time frames.
You have a clear indication of actual support and resistance levels.
So if you guys are still watching this video, that means that you like
the video to be like the video, just smashed the big thumbs up button
right down there, but essentially, if you guys are getting onto your
charts and marking up support and resistance levels do this and then
keep an eye out for injections off of those levels than take a glance
at your RSI and know that you can get in on your long or short
position.
Now, the long-term trading isn't your style and you want a good
scalping video.
Check out this video on scalping right here.
And if you guys enjoy the way I teach, and you want to see more videos
like this, consider subscribing to the channel, by clicking this
button right here.
Hope I was able to help you guys out.
Thank you so much for watching and we will see you in the next video.