Do This Before You Place Your Next Trade -- with David Moadel
before you cross the street always look to the left what does that
have to do with trading and investing i'm going to tell you momentarily
because it's a rule that i think could save you a lot of
problems in the markets my name is david modell this is looking
at the markets i do offer coaching for traders
and investors if you're interested in the coaching you can email me
at david modell gmail.com if you want some help putting together
a trading or investing plan because you really should have one otherwise you
don't necessarily know what you're doing or
where you're going so let's go over to the screen here
and i'm going to show you a few i'll show you four different examples it
won't take up much of your time and this could save you a lot of trouble
and make you more profitable in the long term
so we're looking at today we're going to look at daily
candlestick charts where each candlestick represents one day
of price action each of these candles okay
but everything i'm saying today could also
possibly be applied to other time frames one minute candles two minutes five
minute one hour candles whatever they are alright so
as i said at the beginning of this video before you cross the street look to the
left yeah you want to look to the right also
but i'm just saying for this video before you cross the street look to the
left how long does it take you to look to the left before you cross the
street it only takes a second or two or maybe a maybe five
seconds or something like that to look to the left and since it only takes a
few seconds it could save your life and so it's
worth it right but people don't always do it
and they don't always do it in the markets and they can really
get hurt so let's say you see well this is the british pound against the
u.s dollar okay and you see it going up and going up day
after day these are all daily candles so day after day it's
going up and you're you're getting kind of excited about it
you're thinking this is bullish this is a positive thing
the momentum is upwards and you're thinking about buying here
you see it reached this level and then the second day it's at the same level
having a little bit of trouble maybe getting past this level here but
you want to buy it before you cross the street before you
take that trade look to the left what do you see
ah not just once but twice i see that this tried
to get up above that level look at that two candles in a row couldn't do it
and then happened again two candles in a row
couldn't do it fell back down again and so here's a third attempt here is
one here's the second one what do you think
might happen well you wouldn't have known what might
happen if you hadn't looked to the left you could even take a ruler and draw a
line here a horizontal line and that's a
resistance line and if you look back you'd see that this
is hard resistance
so before you take that trade before you think oh it's going up
i'm getting excited i'm anticipating bullish price action
before you cross that street look to the left
make sure that there's no hard strong repeated resistance
or even if there's just one resistance that could be enough to make you think
hmm let me wait for maybe some more
confirmation or maybe you don't even need confirmation
but maybe you just want to stay out of it okay before you cross that street
look to the left look at that bullish looking price action here
this is rcl royal caribbean the stock you saw one two three four five green
candles in a row with a gap up in there sounds bullish right sounds
exciting you think about thinking about buying
here before you cross the street look to the left
look at all these candles that just couldn't get
up above that level you could draw a line here if you wanted to
a resistance line okay so that might get you to think twice
because one two three four candles almost in a row not quite consecutive
but pretty close and then it got rejected here before you
cross that street look to the left how about over here raytheon
technologies rtx stock right what do you see do you see
it i mean sure this looks very bullish
right taken off like a rocket big gap up but you have two candles in a
row can't seem to get past that spot might
make you think twice look to the left my friend what do you
see rejected hard at that same level you
could draw a line here if you wanted to resistance
hmm how about over here what do you see well you might think this is bullish
price action it's going up look to the left got rejected here
rejected here rejected here rejected here
even if you don't count all these even even if you just count a few of them
still this shows that the buyers are having real trouble at this level
multiple times alright this is tlt by the way
the the bond etf so if you're thinking maybe i shouldn't
buy here you'd be right because look what
happened afterwards i'm not saying this happens every time this does not work
100 of the time this does not work perfectly
okay but it might cause you to think twice
just like if you're about to cross the street just take a few seconds to look
to the left before you cross it could save a lot of
trouble so before you get in the habit okay
before you buy look to the left make sure that this isn't
a hard resistance level all right i'm not saying you can never
buy at a resistance level i'm just thinking this might cause you
to think twice about it and maybe recalculate and reassess
something to think about only takes a few seconds could save you
a lot of problems having a trading or investing plan well
that'll save you a lot of trouble as well most likely
so if you want coaching if you want some help you can email me
for the coaching at david modell gmail.com i hope this helps you when
you're trading i really do all right so i want to thank
you for watching and listening i will talk to you again
soon
so
you