hi everybody Alex du Plooy from Expert4x and in this short video I want to
introduce you to the concept of bull and bear charts now very early in our career
we realized that turning points in the market happen on a different basis
whether the price is moving up or whether it's moving down now when the
price is moving are the lows of the candles are more important to identify
turning points and when it's moving down the highs of the candles are more
important to determine turning points so what we did is we created our own charts
we created line charts that are based on the low of a candle and we and we
created Bay charts based on the highs of the candle and we would only take cells
based on Barre charts and we would only take buys based on bull charts
now why did you do that I hear you ask now I'm gonna show you exactly how this
works how we set the charts up and this is how it gets traded and by the way
this is a millionaire secret it gives you a huge advantage in the market huge
future all right so so how you how do you set a bull chart up bull chart is
remember using the lows of the candles to make decisions to trade upwards and
the bear charts are making the highs of the candles to trade down with okay so
so what we do is we we do a moving average and I'm using the moving average
of four and it's based on the low of the candle the simple low of the candle so
so this chart has a moving average based on the low of the candles so they these
are hourly charts but you can apply to any charts you wish and these ones are
also for mas but they are applied to the high of the candles so what we do is we
trade trendline violations and trendline violations as you know are the best ways
of candying of catching long candles and while
as along kinda a long candle is a very fast move in the direction that you
wanted to go and that's a very good way of doing double in a day trades and
things like that so if you want to catch long candles use
trend line violation this principle is discussed in detail in a very very old
trading course written by Barry Thornton called the long candle course he shows
you how to catch long candles in this particular course anyway so so now we
have two charts here we have one based on the lows and one based on the highs
and as I say we we trade trendline violations you can't do this with lots
of things even indicators allow you to set the indicator on a high and the
indicator on a low and what we used to do is really to sell signals from the
high based indicators and we only took buy signals from the low that the
indicators based on the lows and let's just show you what their colleges okay
so yes a trendline violation and if we just tied it up a little bit
so true how chained line violation is works issue just draw a trend line over
the turning points lahmacun and win the price violates that tuning point you can
then trade you're going to other trade immediately when it violates all you can
wait for the close of Kendall II in this case I've waited for the close of a
candle but you can trade immediately so what you would then do is you'd go boom
boom and you trade and there's the close of the candle and you'd be entering a
sell at seven 207 now if you used the bear charts that you do your selling now
that's what you should be doing is you draw the same trend line over the new
chart line that we've created and there is the violation of that trend line and
the close is right there so at what price can you now get in so now instead
of getting in at seven two zero seven we're getting at at seven 233 now same
trade but you have made a what's a 28 perp advantage on this particular trade
and you have caught the longer this the long candle you have caught the long
candle whereas this one didn't catch the long candle so can you see the advantage
and why we did this it gave us a huge advantage in the market bear charts and
bull shots are easy to construct I have told you how to do that and you trade
them you only trade sells on the bear charts and buys on the bull shots now to
give you a similar example here's a by transaction and you would not use the
bay charts to do buy transactions why not because look years the trendline
there's the violation there's the clothes and you would be buying at 45
but because she's using the bull charts your trend line violation happens a lot
earlier there's the clothes of the candle and
you getting in at 80 32 so another 13 perp advantage now if you do this on all
your trades those 13 perp advantages and 20 per bird bounty
build up to huge numbers over there take 30 or 50 trays so that's the way we
traded and we basically paid all the spreads and things like that
because we had this huge advantage over the market now as I said this was an
introduction and I hope you found this trading concept interesting you must
probably not see it anywhere if anywhere at all
it is a millionaire secret and hopefully you can take advantage of it so for me I
exploit cheerio thanks for watching this video
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you