Ultimate Chart Patterns Trading Course (EXPERT INSTANTLY)

[Music] [Music] hey guys welcome back to another episode in this video we're going to show you how to trade chart patterns like a pro and how we apply these exact strategies to cryptos and stocks that we invest in and trade during this video we'll also show you how you can get access to our over 100 page highly detailed pattern trading guide this massive document works in combination with this video and it's like having a cheat code if you want to show your support please hit the like button subscribe and turn on the notifications bell so that you know exactly when new videos are released so there are a ton of patterns that traders use but the ones we will be covering are the ones we find the most effective and that occur the most often so let's get right into it starting with the first which is the double top and double bottom pattern here is where we will be showing the anatomy of each pattern so first you have your moving uptrend price then makes two same highs the tops essentially make a resistance level the swing low here is what is called the neckline now what does the double top tell you from a price action standpoint price failed to make a higher high but instead made a same high which shows a loss of momentum from the uptrend meaning a loss of momentum from the buyers in the market now going the other way you first have your moving downtrend price then makes two same lows the bottoms essentially make a support level this swing high here forms the neckline now what does the double bottom tell you in terms of price action price failed to make a lower low but instead made a same low which shows a loss of momentum from the downtrend meaning a loss of momentum from the sellers in the market so this then brings us to our next question which is how do we use the double top and double bottom pattern as part of our overall strategy also right now go to the comments section below and tell us exactly what topics and questions you want us to cover as we always look at the comments to decide what to create next now these are the four core variations to using the double top and double bottom pattern let's start with the first which is the neckline break entry so you first have your double top pattern that forms neckline here because of the recent swing low now once price breaks the neckline and makes a lower low you would take a breakout entry short as the reversal and trend change is now confirmed going the other way you first have your double bottom pattern that forms neckline here because of the recent swing high now once price breaks the neckline and makes a higher high you would take a breakout entry long as the reversal and trend change is now confirmed so moving on to the second variation a double top or double bottom pattern forming at a key level now this is an entry that occurred on ethereum and one that many of our members took so you first need to identify a key level which you have through these three reversal points as price comes back down it creates a double bottom pattern at the support level so again to confirm the reversal neckline placed at the recent swing high and once price breaks through the neckline and makes a higher high your trend change from a downtrend to an uptrend is confirmed and you would then take trade entries long through the lower intraday time frames now to point something out there was another trend change confirmation you could have used which was placing a trend line like this connecting the swing highs and again waiting for the breakthrough before looking for trade entries long now going the other way again you first need to identify a key level which you have through this reversal point here giving you your resistance level as price comes back up it creates a double top pattern right at the resistance level so again to confirm the double top reversal neckline placed at the recent swing low here and once price breaks through the neckline and makes a lower low your trend change from an uptrend to a downtrend is confirmed and you would then take trade entries short through the lower intraday time frames this is also a very good example of the many different opportunities there are to enter trades some would have entered short right at this point here others would have entered short right at this point here where pattern traders wouldn't enter until the double top pattern formed and then the break of neckline here all are correct there are multiple different ways to enter trades based on your style so what does the double top or double bottom pattern at a key level tell you from a price action standpoint this kind of entry is of higher quality because you're not just trading a pattern on its own but a pattern that is also at a key level which means you also have support and resistance traders looking to enter along with pattern traders which helps create momentum for the trade and increases trade quality so moving on to the third variation a double top or double bottom pattern but instead of taking the breakout entry waiting for a pullback entry so back to the ethereum example we just covered you had your double bottom pattern neckline break but instead of taking the breakout entry there was a second long entry on the pullback to the new support level this is actually a very good level because it was formed way back here now there is a very specific way you must place your stop loss when taking breakout entries but then a very different way you must place your stop loss when taking pullback entries so moving on to the fourth variation candlestick patterns forming at a key level and then a double top or double bottom pattern inside of those candlesticks so you first look for a key level which you have through this reversal point here which gives you a level of resistance as price comes back up to this level you were waiting to see if you would get candlesticks forming at the level to show a reaction to the level of resistance which you got through this long wick candle but a reaction does not equal a trade as price can stall at this key level form the candle and still break right through don't forget that this is a very strong uptrend so what you need to do is after you have your longwick candle react to the level of resistance you need to look inside of this area on the lower time frames to see if you can get any form of price action that signals a trend change from an uptrend to a downtrend now this is a very key point before you look inside of this area you have no idea what you will find or if you will find anything at all so let's pull up a lower time frame specifically the six hour time frame and put it beside this one so on the left is the daily time frame we just looked at and on the right here is the six hour time frame of the same asset this resistance level here is the same resistance level here this area here where the candlestick formed is this same area here on the six hour time frame now the reason we are using a lower time frame is because on the main time frame where we found the initial setup price movement is too tight meaning we don't have good swings that give us good price action that signals a trend change after we had the long with candle whereas here on this lower time frame on the right we can see so much more data and see the actual swings of price so what you had on this lower time frame was a perfect double top pattern that formed right at the key level of resistance and inside of the long way candle from the higher time frame so again to confirm the reversal and the trend change neckline placed here at the swing low and once price breaks the neckline and makes a lower low your trend change is confirmed from an uptrend to a downtrend the breakout here is then when you would go to the lower intraday time frames to take trade entries short now going in the opposite direction in a downtrend this would work the same so moving on to the next pattern the triple top and triple bottom pattern so before we continue make sure you go follow our instagram account at wisetrade to stay notified about a lot of big projects we have on the way now if you are enjoying this video and want to support our team hit the like button subscribe and turn on the notifications bell so that you know exactly when new content is released now moving to the next pattern the triple top and triple bottom pattern so price is in an uptrend before it makes three same highs in a row forming the triple top pattern the swing lows here create the neckline and support level and when it breaks you would take trade entries short as the reversal is now confirmed now going the other way price is in a downtrend before it makes three same lows forming the triple bottom pattern the swing highs here create the neckline and resistance level and when it breaks you would take trade entries long as the reversal is now confirmed so using the triple top and triple bottom pattern is the same as the four variations we showed you for the double top and double bottom pattern so we won't go through it again moving to the next pattern the trend continuation pattern a bullish trend continuation pattern has your runs and pullbacks the swing highs are higher than the previous swing highs the swing lows are higher than the previous swing lows this means a bullish trend continuation pattern makes higher highs and higher lows from a price action standpoint it shows a continuation of bullish momentum from the buyers through making new higher highs and new higher lows and not a sideways market now going the other way a bearish trend continuation pattern has your runs and pullbacks the swing highs are lower than the previous swing highs the swing lows are lower than the previous swing lows this means a bearish trend continuation pattern makes lower highs and lower lows so from a priced action standpoint it shows a continuation of bearish momentum from the sellers through making new lower highs and new lower lows and not a sideways market now moving to the next pattern [Music] the trend change pattern in a bullish market there are two ways the trend change pattern can form variation one you have your moving up trend through the higher highs and higher lows before price makes a lower low giving you your trend change pattern in a bullish market now variation two you again have your moving up trend through higher highs and higher lows before price makes both a lower high and a lower low giving you your trend change pattern in a bullish market so from a price action standpoint it shows a loss of momentum from the buyers as price failed to make a new higher high and instead created a reversal pattern now going the other way in a bearish market there are two ways the trend change pattern can form variation one you have your moving downtrend through lower highs and lower lows before price makes a higher high giving you your trend change pattern in a bearish market now variation two so you have your moving downtrend again through lower highs and lower lows before price makes both a higher low and a higher high giving you your trend change pattern in a bearish market so from a price action standpoint it shows a loss of momentum from the sellers as price failed to make a lower low and instead created a reversal pattern showing a trend change from a downtrend to an uptrend so moving on the head and shoulders and inverse head and shoulders pattern so before we continue if you are enjoying this video and want to show your support please hit the like button right now [Music] so the head and shoulders pattern starts with your moving uptrend left shoulder the head at the swing high and then the right shoulder at the lower high the swing lows here make a neckline or support level from a price action standpoint it shows a loss of momentum from the buyers and the start of a trend change as a lower high has already formed now there is a higher quality head and shoulders pattern which is a head and shoulders pattern with a slanted neckline it's the same as the normal head and shoulders pattern except you already have a lower low that formed creating the slanted neckline from a price action standpoint this is a higher quality reversal pattern because price already made both a lower low and lower high which shows a fully formed trend change not just the start of a trend change now going in the opposite direction the inverse head and shoulders pattern starts with your moving downtrend left shoulder the head at the swing low and then the right shoulder at the higher low the swing highs make a neckline or resistance level so from a price action standpoint it shows a loss of momentum from the sellers and the start of a trend change as a higher low has already formed now again there is a higher quality inverse head and shoulders pattern which is an inverse head and shoulders pattern with a slanted neckline again it is the same as your normal inverse head and shoulders pattern except you already have a higher high that formed creating the slanted neckline now from a price action standpoint this is a higher quality reversal pattern because price already made both a higher high and higher low which shows a fully formed trend change not just the start of a trend change so this then brings us to our next question which is how do we use the head and shoulders pattern as part of our strategy again right now go to the comments below and let us know exactly what questions you have and topics you want us to cover next also if you are enjoying this video hit the thumbs up button to show your support [Music] now these are the three core variations to using the head and shoulders pattern let's start with the first which is the neckline break entry you first have your head and shoulders pattern that forms neckline here because of these two points and once price breaks the neckline and makes a lower low you would take a breakout entry short as the reversal and trend change is now confirmed going the other way you first have your inverse head and shoulders pattern that forms neckline here because of these two points and once price breaks the neckline and makes a higher high you would take a breakout entry long as the reversal and trend change is now confirmed so moving to the second variation a head and shoulders or inverse head and shoulders pattern followed by a neckline break but instead of taking the breakout entry waiting for a pullback entry so you first have your inverse head and shoulders pattern neckline here neckline break but instead of taking the breakout entry there was a second long entry on the pullback to the new support level now going in the opposite direction this would work the same so moving on to the third variation which is an aggressive early entry at the right shoulder of the pattern so your regular entry would be identifying the head and shoulders pattern and taking your trade entry short at the break of the neckline here but now there is a more advanced way to trade the head and shoulders which is what we call an early aggressive entry right at the right shoulder of the pattern here so let's break it down you first identify the left shoulder and then the head now here's the key the left shoulder here already makes a resistance level so you would have had it drawn in and extended out as price comes back up to this resistance level you would wait to see if you would get candlesticks forming at the level created by the left shoulder which you got through the multiple longwick candles forming at the level then at this point you would look inside of this area to look and see if you get any form of price action that signals a trend change to confirm that this right shoulder has completed so let's pull up a lower time frame specifically the four hour time frame and put it beside this one on the left is the daily time frame we just looked at and on the right is the four hour time frame of the same asset this resistance level here is this same resistance level here this area here where the candlesticks formed is this same area here on the four hour time frame now on the four hour time frame you had a perfect descending triangle pattern that formed right at the right shoulder and resistance level from the higher time frame when the pattern breaks below this reversal from an uptrend to a downtrend is now confirmed and also confirms the completion of the right shoulder from the higher time frame now after you had the break you would go to the lower intraday time frames to take trade entries short using our entry strategy and tool so before we continue don't forget that there is an over 100 page patterns trading guide that works in combination with this video and goes through every small detail including exactly where to enter and exit again if you're enjoying this video make sure to hit the thumbs up button to show your support [Music] now moving on to the next section triangles channels and wedges these patterns worked as a set because of how we use them as part of our strategy and you'll see why so let's first go through the three core patterns starting with the triangle pattern now the triangle pattern has its three variations as well so we'll start with the ascending triangle so the top side of the ascending triangle makes same highs and creates a horizontal resistance level the bottom side of the pattern makes higher lows and allows for an ascending trend line to be placed this pattern then forms in both bullish and bearish markets the bullish ascending triangle starts with an uptrend followed by the pattern formation the bearish ascending triangle starts with a downtrend followed by the pattern formation so next the descending triangle pattern the bottom side of the descending triangle makes same lows and creates a horizontal support level the top side of the pattern makes lower highs and allows for a descending trend line to be placed this pattern then forms in both bullish and bearish markets a bullish descending triangle starts with an uptrend followed by the pattern formation a bearish descending triangle starts with a downtrend followed by the pattern formation so next the symmetrical triangle pattern the top side of the symmetrical triangle makes lower highs which allows for a descending trend line to be placed above the bottom side of the pattern makes higher lows which allows for an ascending trend line to be placed below this pattern then forms in both bullish and bearish markets a bullish symmetrical triangle starts with an uptrend followed by the pattern formation the bearish symmetrical triangle starts with a downtrend followed by the pattern formation so we'll be showing you how to use these all once we get to the strategies section now before we continue this is the most important concept of this entire video when you are drawing your lines when identifying patterns treat them as approximations and as areas the reason for this is because the market is imperfect and patterns won't always form picture perfect or exactly how you want them to form if you just wait for picture perfect by the book patterns you'll miss out on 90 of the best trades because again the market is imperfect price movement is imperfect and to get good at trading you need to learn how to operate within an imperfect noisy market moving on to the next pattern which is the channel pattern now the channel pattern has three variations let's start with the first which is the ascending channel pattern so the top side of the ascending channel makes higher highs which allows for an ascending trend line to be placed the bottom side of the pattern makes higher lows which also allows for an ascending trend line to be placed the two trend lines are parallel to each other and are both in an upwards direction this pattern then forms in both bullish and bearish markets a bullish ascending channel starts with an uptrend followed by the pattern formation a bearish ascending channel starts with a downtrend followed by the pattern formation so next the descending channel pattern the top side of the descending channel makes lower highs which allows for a descending trend line to be placed the bottom side of the pattern makes lower lows which allows for a descending trend line to be placed the two trend lines are parallel to each other and are both in a downwards direction this pattern then forms in both bullish and bearish markets a bullish descending channel starts with an uptrend followed by the pattern formation a bearish descending channel starts with a downtrend followed by the pattern formation so next the horizontal channel pattern the top side of the horizontal channel makes seam highs which allows for a horizontal resistance level to be placed the bottom side of the pattern makes same lows which also allows for a horizontal support level to be placed the two levels are parallel to each other and in a horizontal direction this pattern then forms in both bullish and bearish markets a bullish horizontal channel starts with an uptrend followed by the pattern formation the bearish horizontal channel starts with a downtrend followed by the pattern formation also right now if you're enjoying this video and want to show your support please hit the like button as this goes a long way for us now moving on to the next pattern which is the wedge pattern so the wedge pattern has two variations let's start with the first which is the rising wedge pattern the top side of the rising wedge makes higher highs which allows for a rising trend line to be placed the bottom side of the pattern makes higher lows which also allows for a rising trend line to be placed now the key here is that the two trend lines are converging and are both in an upwards direction this pattern then forms in both bullish and bearish markets a bullish rising wedge starts with an uptrend followed by the pattern formation a bearish rising wedge starts with a downtrend followed by the pattern formation so next the falling wedge pattern the top side of the falling wedge makes lower highs which allows for a falling trend line to be placed the bottom side of the pattern makes lower lows which also allows for a falling trend line to be placed now the key here is that the two trend lines are converging and are both in a downwards direction this pattern then forms in both bullish and bearish markets a bullish falling wedge starts with an uptrend followed by the pattern formation a bearish falling wedge starts with a downtrend followed by the pattern formation so now that we've covered the three core patterns let's get into how to actually use the triangles channels and wedges as part of our strategy before we continue go to the comments section right now and tell us what video topics you want us to cover next also to show your support make sure you go follow us on our instagram account at wisetrade to stay notified about a lot of big projects we have on the way if you are enjoying this video please hit the like button right now as well [Music] so the foundation of using triangles channels and wedges is trading in the direction of where the pattern breaks from meaning this here can be any of the pattern variations we showed you if the pattern then breaks above trade in that direction if the pattern breaks below trade in that direction so here are all the strategy variations let's start with the first identifying a trend followed by a pattern formation and then a pattern break in the main trend direction this is a trend trading strategy this is the tesla stock you have your moving uptrend before a descending triangle pattern forms again to be clear this here could have been any of the patterns from this list but in this case we had the descending triangle pattern that formed now if price breaks above like this this would signal a trend continuation as price broke in the same direction as the larger moving uptrend as it takes bullish momentum to break the pattern and make a higher high you would then take long trades through the lower intraday time frames as the trend continuation is now confirmed let's show this again this is ethereum you had a moving uptrend before the descending channel pattern formed again it could have been any pattern from this list that formed but in this case you had a descending channel now if price breaks above like this you would then take long trades through the lower intraday time frames now going the other way in a downtrend this works the same you have your moving downtrend before a descending triangle forms again it could have been any pattern from this list but in this case you add a descending triangle once the pattern breaks below meaning it breaks in the same direction of the larger moving downtrend you would take trend continuation trades short now moving on to the next variation identifying a trend followed by a pattern formation but then a pattern break in the opposite direction of the main trend this is a reversal trading strategy so you first have your moving uptrend before an ascending triangle pattern forms again it could have been any pattern from this list but in this case you had an ascending triangle now the pattern breaks below and in the opposite direction of the main uptrend signaling a reversal and a trend change from an uptrend to a downtrend so in this case you would take trade entries short after the break below now going the other way in a downtrend this works the same you have your moving downtrend before a falling wedge pattern forms again it could have been any pattern from this list but in this case you had a falling wedge now the pattern breaks above and in the opposite direction of the main downtrend signaling a reversal and a trend change from a downtrend to an uptrend you would then take trade entries long to the lower intraday time frames now moving on to the next variation identifying a trend followed by a pattern formation followed by a break in the main trend direction but instead of taking a breakout entry waiting for a pullback entry this is a trend trading strategy and this is the microsoft stock you had your moving uptrend before an ascending triangle pattern formed again it could have been any pattern from this list but in this case you add an ascending triangle so like we previously showed you once price breaks above you could have taken a breakout entry long right away but now more secure traders would wait to see if there was a pullback that occurred which you had here through the multiple longwick candles reacting to the new support level and top side of the pattern and where the moving average also crossed which creates an area of confluence then once you had an intraday trend change you would take trade entries long using our entry strategy and tool again whether you trade the breakout or wait for the pullback both work fine it all comes down to your style of trade now breakout entries and pullback entries require you to place a stop loss at different places which is very very important to understand and we'll discuss this further later on now moving on to the next variation identifying a trend followed by a pattern formation and then a break in the opposite direction but instead of taking a reversal breakout entry waiting for a pullback entry this is a reversal trading strategy this is the coinbase stock you add your moving uptrend before the descending triangle pattern formed again it could have been any pattern from this list but in this case you would have descending triangle so like we previously showed you once price breaks below this would signal a reversal from an uptrend to a downtrend and you would take breakout entries short now more secure traders would wait to see if there was a pullback that occurred which you had here with the longwick candle forming right at the new resistance level and bottom side of the pattern and where the pattern trendline crosses giving you an area of confluence then once you had an intraday trend change you would take trade entries short using our entry strategy and tool now moving on to the next variation a pattern forming at a key level you first identified a key level through this reversal point now as price came back down you had a descending channel pattern form right at the key level again it could have been any pattern from this list but in this case you had a descending channel form once price breaks above the reversal is confirmed and you would take trade entries long now moving on to the final variation identifying a key level followed by a candlestick formation and then a pattern inside now before we continue go to the comments section right now and tell us exactly what videos you want us to create next also to show your support make sure to go follow our instagram account at wisetrade to stay notified about a lot of big projects we have on the way if you are enjoying this video please hit the like button right now to show your support so this is the microsoft stock again we covered this earlier where you had your pullback entry here but now there was a second entry using this new variation so let's list the pro traits working in your favor first you're trading with the moving uptrend next you have the momentum from the pattern break here and the long trade entries that took place here then you had your area of confluence here where the trend line new support level that recently formed and moving average and fib level all crossed as price came back down to this level you had multiple perfect long wig candles reacting to the area of confluence so after you had the candles reacting to the area of confluence you need to look inside of the candles and inside of this area to find price action that signals a trend change from a downtrend to an uptrend because even though this is a strong moving uptrend here this here is a short-term downtrend meaning price can stall at the area of confluence and then break right through triggering a larger trend change now a key note when you look inside of this area it doesn't have to be a wedge triangle or channel it can be any of the previous patterns we showed you in this video all the reversal patterns work the same so let's pull up the daily timeframe and put it beside this one the chart on the left is the microsoft weekly timeframe we just looked at and on the right is the daily time frame this key level here is this same key level here this area of confluence here and where the candlesticks formed is this same area here again we are looking for any form of price action that signals a trend change from a downtrend to an uptrend so what we had in this case here was a perfect descending triangle pattern that formed right at the area of confluence from the weekly then once price breaks above it makes the higher high the trend change is confirmed from a downtrend to an uptrend now here's a very key point notice how price didn't go straight up after the break and pulls back slightly before actually taking off upwards and this is why you need the two most important parts one to go to the lower intraday time frames to identify an actual entry point after the break using our entry strategy and tool and two understanding precision stop loss placement as there is a very specific place to put your stop loss when trading the breakout but then another very specific place to put your stop loss when trading pullbacks this is why you need the massive guide that works in combination with this video it gives you every possible pattern variation and shows you exactly where to enter and exit where to place your stop loss and a lot more detail we don't have enough time to cover all in this video without this guide you are missing out on a lot of the key info that is required to trade these patterns successfully so go to wisetrade.com and get access to the patterns trading guide right away again it's like having a cheat code now we have a very important question we need answered do you guys like the longer more detailed in-depth videos but as a result to take longer to create and release or would you rather have shorter and less detailed videos but then allows for more videos to be released faster and more often let us know in the comments right now below so if you enjoyed this video to show your support please hit the like button subscribe and turn on the notifications bell also please go follow our instagram account at wisetrade to stay notified about a lot of the big projects we have on the way so thanks for watching and i'll see you in the next episode so [Music] [Music] [Music] you

Channel: Wysetrade

Views: 1,374,252

Keywords: technical analysis, chart patterns trading, chart patterns, chart pattern analysis, stock trading, price action, candlestick patterns

Id: aRlWle9smww

Length: 38min 15sec (2295 seconds)

Published: Sat Dec 18 2021

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