welcome everyone this is John Sheely as director for research and development
for Iamadaytrader.com today we're going to take a look at how we can place
the trend information of the 610 tick bar to the 233 tick chart however
as always we must review our risk disclosures please review the disclaimer
very carefully trading carries a high level of risk and trading is not
suitable for all persons past performance does not guarantee future
results additionally we must include our
hypothetical disclaimer I am a day trader performs a tremendous amount of
research and back tests for our analysis please review the hypothetical
disclaimer very carefully here we're taking a look at crude oil plotted in
the 610 tick bar chart I have illustrated five exponential moving
averages we have an 8 EMA 21 EMA 34 EMA 89 EMA and the 200 EMA the EMA remember
stands for exponential moving averages now what I'm going to do today is to
demonstrate how you can analyze the price action and the trend of the 200
exponential moving average first take a look at the current price of the 200 EMA
51:41 that is the lower line of the 200 EMA a second exponential moving average
is the 89 EMA which I will discuss in greater detail in another video now
importantly notice that the slope of the 200 EMA is bullish and gradually rising
this is important because you are noticing that in the anchor chart of the
610 is in a bullish trend and prices are rising higher and higher in the next
slide we have two charts on the left side is the 233 tick bar and on the
right side is the 610 tick bar let's notice that you are seeing these
two charts on the single monitor in your computer a lot of traders are able to
have multiple monitors in which they can easily look at each chart in detail
however there are some traders who only have a single monitor such as a normal
laptop imagine if you had many more applications in your trading platform
such as the trading matrix our additional chart our other workspaces as
you can imagine the screen becomes very crowded for new traders traders are
frequently jumping back and forth trying to analyze prices and trends let me try
to easily follow the major trend of the 200 EMA in a single chart that chart
will be the 233 tick chart for today we're taking a look at just the 200 EMA
what is the first thing that is important in the chart first of course
it is the price 51.41 in this case it's the last price of the value of the 200
EMA what else is important in the general trend of prices we see that by
analyzing the slope of the moving average the 200 exponential moving
average is consistently rising to indicate a bullish trend now let's take
a look at the chart prices decline but they go to where right at the moving
average 200 EMA notice right here prices decline they barely just above the 200
EMA but as close are let's take a look at the prices here this is around 14.27
and we have a decline underneath the 200 exponential moving average but now take
a look at these same areas in the 233 tick bar chart I have plotted at the
bottom a blue dotted exponential moving average let's find the important
information as we've seen before first the price
51.41 this is the same that we saw in the 610 tick chart of the 200 EMA now let's
take a look at the chart in regards to the slope of the moving average this is
slightly dotted in the chart now notice prices are rising higher and
higher the slope of the moving average is exactly the same as we had in the
610 chart so remember we have two declines and they are just underneath
the exponential moving average in the dotted line here here here almost
touching and then this one gets underneath just a little bit and then
obviously we had a rally so in this particular case you're seeing the same
information in the 233 tick chart as we had the 610 here let me show you another
example a little earlier in time here we have a slope of the moving average this
is the 610 tick chart so what happened to this decline it gets just underneath
this average did prices rally yes they did
is this the bounce that we're always looking for yes price has got underneath
and we are able to rally and make a wonderful trade be nice if we could find
the same information in a different chart take a look at the chart now of
the 233 tick bar what do you see the prices have gone underneath bounced
around this average what is it 535 this is a 535 exponential moving
average which I'm showing you here is it is getting the exact slope it is showing
the exact price of which you can rally against this trade is in the same
direction that you're going to find in the 610 EMA so let's summarize
using the 535 EMA in a 233 tick chart only use the 535 in the
direction of the 610 anchor chart so in other words that 535 is going to be in
the same slope that you're going to find in the 610 secondly you can use the 535
EMA to enter trades based upon the price information of the 610 tick chart it's
very important we're all running notice the slope we're going to notice a
correction that touches and bounces above and below the 535 to set up a
trade just exactly as we saw in the 610 tick chart we will demonstrate in other
videos how to execute the bounce trades from the 610 anchor chart using a single
one chart the 233 tick chart finally the mastery is the key of success but so
many traders are not willing to take the time to master their trading strategy
well guess what that's what we do we are soon going to have your own room where
you can not only follow trades watch the information learn more about how to
trade and also use the strategies with great success this is John Sheely with
Iamadaytrader.com
you