i want you guys to learn how to see
these chart patterns by heart i want you
to focus memorize and listen to what i'm
teaching you because in this video i'm
going to show you chart patterns that
correlate with price action and it tells
a story of where the price is going to
go
if you can only remember how these look
i'm going to give you examples of every
single one of them and i want you to
take screenshots
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis this
video is going to have a little bit of a
different format hopefully you guys like
it i'm going to be doing a 21st century
whiteboard with my ipad so it's going to
be a little bit lengthy because there is
16 chart patterns that i want to show
you guys we're going to do the bullish
and then bearish version of every single
one of these so the first one one's
gonna be a bullish flag what price does
in this scenario is have a big bullish
run up and then a small zigzagging
bearish movement which looks like this
the reason it's called a flag pattern is
because these usually lie in a channel
so it's like a little drooping sogging
flag when this happens and it breaks out
of that upper channel this is usually
your entry your take profit is always
going to be something that lands to the
left or you can previously hit the high
that it was at but your take profit area
is always going to be look left stop
loss is going to be halfway through the
channel that's your entry and your take
profit is somewhere up here depending on
what price is showing you at peak levels
to the left when these types of patterns
arise it's usually a fib level now
depending on the slope of this line
that'll show you the momentum in that
direction when it's a high momentum it
should retrace at a 382 sometimes it'll
go down to the 0.5 or 618 which is the
gold zone so when you're seeing these
types of patterns make sure you're
drawing up a fib level from here to here
now the opposite of that is going to be
a bearish flag price goes down heavily
comes back up and does one of these
numbers again this is usually in a
channel and it's basically an inverted
flag entry price after it breaks out of
that lower channel stop loss halfway
through and take profit is going to be
always
look left again depending on the
momentum of this move this will retrace
to a 382 a 0.5 or a six one eight and
the next one's gonna be the cup and
handle this one i don't use as often
because it's very rare to see nice
rounded price action in this pseudo
double bottom but what typically happens
is the price comes down makes a nice
rounded bottom rejects at a certain
level which is usually a fib level then
the price dips down a little bit to
about 50
of that range makes another rounded
bottom and then this is your entry this
is your stop loss and your take profit
is going to be wherever the price did
that that area right there i know what
that looks like guys just stop that's
the bullish one the bearish one looks
obviously opposite of that entry stop
loss and take profit now the next two
are very important and the most
difficult to identify because it has to
be in a concise range it cannot do
anything but be in this range price will
quickly come into this range and start a
very very tight consolidation it will
not break the consolidation range it
won't have any dips in and out again
this range is very very tight when it
breaks out of that range your next take
profit is previous lows look left always
for your take profit areas this is gonna
be a bigger move so your stop-loss is
going to be above that range and your
take profit area is going to be look
left if you can't get more than a two to
one on this do not take this this is
meant to be a big move so you're looking
more like five to one and the bearish
version obviously looks like that now at
the very end of this i'm going to have a
full drop of all of these patterns so
that you can take a screenshot of it
maybe print it out and have it next to
you in your trading station so you can
always have it as a reference so you can
start to learn how to read these things
and see these things like that all right
now let's look at a bullish pennant um
this is very similar to the bullish flag
except it's making higher lows so price
will go up and then start to do this
you'll have that top of that bullish
flag but instead of the other one being
parallel it's actually going to form a
wedge once it breaks out of that that's
your entry your stop loss is right there
you want to wait until the end of this
wedge and then your take profit area is
going to be again look left and a
bearish pendant looks the exact opposite
price comes up creates that wedge breaks
out and goes into the toilet double
bottoms and double tops you guys have
heard me cover this in numerous videos
so i'm going to keep it short basically
you're looking for two areas where the
price hit exactly along with an rsi
divergence so price is hitting two of
the exact same levels while the rsi is
having a lower high creating that
divergence showing you the imminent
bearish momentum same thing on a double
bottom you have two of the exact same
price and then the rsi creates a massive
low and then a higher low the next one
very very common head and shoulders
pattern um this is on a higher time
frame so you're gonna have to be looking
at like a one hour four hour or a daily
to see these big monsters this is not a
scalping formation so what you're gonna
see is price come up down make a huge
peak come down again this level right
here and this level right here are very
very close they're not always completely
flat like on a parallel plane but they
are very close to one another it could
be like a hunching person you know it
just it's not always proper posture it
could just be hunching on one of the
other side this is the important level
though as it breaks this level that's
your entry and your take profit is
obviously always look left whatever the
zone that you had a rejection that's
going to be your take profit area but
usually these are big moves and for the
inverse head and shoulders you know it
could be drooping like i said and it
could do something like this where it's
like all right now we're going to look
at falling wedges price will come down
and make this like tight wedge so it'll
do you know like it's
a slight wedge not a triangle just a
just a wedge your entry is going to be
as it breaks out of that wedge take
profit obviously somewhere up here so
it's going to be quite a decent size and
your stop-loss is going to be right
below that wedge always look left for
your take profit areas rising wedge is
again the opposite of that get a little
bit of wedginess going on and then it
breaks out to the downside these are
super good traps because the price looks
like it's creeping up and then it's like
[ __ ] you so
entry
stop loss take profit is going to be
where the price did that little thing
right there ascending and descending
triangles i've already covered in a
previous video which i did recently so
i'll link that at the end of this video
but basically this is my favorite price
action strategy because it's a perfect
example of the battle between buyers and
sellers sellers want to sell off the
specific levels so these tops are always
the same but the buyers get stronger and
stronger and stronger pushing them
closer to the sellers and then
eventually wearing them out and breaking
them through same story goes on the
short side buyers want to buy the price
back up stellars keep pushing them down
and they say
now the last one that i want to cover is
a symmetrical triangle this one is the
most difficult to read basically price
just dances in this starting to wedge
out and it's like an even battle between
buyers and sellers and it's like an arm
wrestling match whoever got tired first
that's the way that it's gonna break out
but usually what i go off of to like
instead of making it a 50 50 whether
it's gonna go up or down i like to just
look left and see from what direction
the price came in if it had like massive
highs and came into the triangle this
way then i'm looking for more on the
downside conversely if it came up into
this triangle i'm thinking it's going to
break out that way i try to stay away
from these until it's like dramatically
broken out of that in either direction
and then i'll take the trade and i'll
scalp a little bit so now is the time
that i want you to take a screenshot i
spent a lot of time making this because
i'm really really bad at graphic design
so here this is something that you can
screenshot and save and keep open while
you're trading so if you ever do come
across one of these price action chart
patterns you will know what to do
because you have your playbook right
next to you i hope you guys enjoyed this
new format of video let me know in the
comment section down below don't forget
to like the video if you actually liked
the video and if you guys want to watch
that video on ascending and descending
triangles that video is linked right
here thank you so much for watching
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will see you in the next video