This content is a beginner's tutorial on using TradingView for technical analysis, focusing on identifying trading opportunities through indicators, chart patterns, and backtesting strategies to improve investment decision-making.
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hello there Kasha how are you today
thank you I'm fine how are you I'm very
good I'm very excited you're taking the
time to do this so before we jump in and
start playing with trading View and
trading and everything else
methodologies have you ever traded before
before
no no have you used
to be afraid but excited okay have you
used technical analysis before
no not too much
so you've used it a little bit not
Financial you know not Financial analyze
and have you used trading view before no
no so we're going in cold but you have a
background you are analytical have you
no no well this this will be exciting
let's see what we do lunch card blush
white page I don't have no Financial
background and I'm so exciting to be
here and try because I want to win more
money I won't learn this is my dream
well this is a
this will be exciting and it is an
exciting time as well for the markets
because I do believe we are facing a
time of disruption with some very good
opportunities to be had but at the same
time we also need to
have the tools uh to be successful in
the market so let's jump in I'm going to
ask you one thing first can you share
your screen with me I think you have I
will pop it up actually you're already
sharing great so for the interest of the
audience it's important for us to show
full screen so I'm going to turn our
images off I just want people to see
that you are real
and real right we are now in a live
chart so the first thing we're going to
do is well I see you already have Kasha
up there on the right corner we're going
to add some assets to your list
so you have a portfolio the first thing
people should do is have a watch list so
let's pick things that when it comes to investing
investing
I believe it's very important to have
Focus so you look at fewer names all the
time and so let's add a few things let's
add Tesla let's add
Bitcoin so what you do is just hit add symbol
symbol
and what you can do here is you can write
write
BTC usdt
well there
comes up automatically BTC USD and I
like to add bitstamp so
so
it's down with the green button about
eight or ten down yep that one
pop that in so that's your first symbol
next one is Tesla so go to the top again
right Tesla
but you have to change where you're looking
looking
uh so just hit the all button for all assets
assets
okay and hit a plus sign beside the top one
one
yes that one
and let's add as well Nvidia also right
let's also add Google
perfect and let's go um
um
that should be enough of the actors I
just had two more cryptos that said
e-r-e-u-m yeah bit standpoint is about
six down will work for there
Perfect all right so now we have some
assets to look at we can we can add more
later if we want all right let's close
out of this window now we have our
portfolio and what I always stress is
very important to
really understand how these things move
so now on this chart you're going to see
a number of different things it might
look like double dutch but you have your
tools down the left hand side to be able
to draw and add symbols and on the
bottom you have your time frame but also
at the top you have your time frame
and somehow we're in the Solana chart
can you pick Bitcoin for example on the
top on the right hand side yep
pop that and go to the four hour chart
on the very top of the middle you'll see 4H
for h mean four hours four hours yes and
this is one minutes 15 minutes 30 at the
time yes exactly so as first of all I
like four hours because it's a good time
frame by which to understand
where things are going over you know a
10 to 12 week period And if you're in
the stock market it's typically two
little periods will represent one time
now the next thing we're going to do is
going to play with some different
settings so right now I think we're in candles
candles
so for Simplicity go to the very top
you'll see where there are symbols like
candles yes go to the right and we just
pick the straight line
that line
that gives us a better handle on where
we're going
for now what I mean what's this line
mean that's just the price action okay
we'll look at candles later but right
now we'll just look at Price action now
I want this is kind of a difficult thing
to explain to do and I don't know if
you're on a Windows machine or a Mac
but if
you're on a Mac window Windows okay
um on Windows can you uh I should know
how to do this on Windows I've used it
in so long but on a Mac you can use two
fingers on the mouse and you can scroll in
in
to get a longer View
yeah you did it there okay good can you zoom
zoom
in to compress the time and out the time yeah
yeah
like this
we need longer let's go to the bottom
and let's hit
uh the 6m the six month time frame on
the very bottom of the chart down okay
here okay I got it so what what does
this tell you over the last six months
we're going back to October
2022 to today from uh from October it's
like November ago it'll be up next go
really down next is take the same line
and in
February uh February before February is
like January go a little bit up and stay
in the same similar line and let's go
much more higher than in October next in
March go down and next it it's much more
higher even than in February it's good
this is amazing this is
technical analysis you've done that so
you just described exactly the price
action of of where this whole thing is
going and now we're going to look at
some more different features so let's
pick let's pick a different asset let's
go to Google on the right hand side the
fourth one down yeah
yeah
and if if you zoom if you could zoom out
a little bit longer maybe hit the one
perfect
okay let's go out to five years actually
I want to see if we can
identify a pattern okay now sometimes
what I like to do is draw lines and this
will sound like a children's drawing
program but it's very very important to
do so if you look at the chart at the
bottom here you'll see a I don't know
exactly what time frame it is but it's
it's basically the dip that happened in
March 2020
so and then you look to where the price
is today so this is a thing that I like
to do is just draw lines so on the very
top left hand corner you'll see a line
with two little
circles at the end
yes click that
and then
okay and then take it to the point of
you should be able to drop it at the
very where the price goes down to about
53 dollars
oh Okay click area
okay now drag it all the way up
to where it's about ninety dollars but
over to the right down down to
2023 uh where we are in January yes exactly
exactly
so connection to the bottom there perfect
perfect
right there that's good enough so what
you see here and we're always trying to
find ways to identify
how Trends happen and how people trade
based off of certain little lines you'll
see that this is like an ascending line
for Google
based on the past and it might sound
like it makes it right now but we'll see
let's go and try and draw another line
let's go to ethereum foreign
how the money grow up it's like 45
degree but developed a big mountain of
money yeah but sometimes there are
things that happen in the markets that
are like Black Swan events so that dip
that we chose on Google in Mar March
2020 you know what that was uh that was
our friend c19 that scared the markets
but then immediately things bounced up again
again
here let's go to a three-month chart no
no hang on a second let's go to a
one-year chart hit the one y at the
bottom of the chart okay
okay
okay now I want you to draw another line
but you decide where to draw it I want
you to draw a line where there is
support for the price
starting in June 2022 June
yeah yeah you need to pick the tool
and go all the way to the price today
where it is a one eight one four
well you actually yeah you can you can
draw the support there as well that's
perfect okay drop it there
so when you see a chart like this and
again this might sound really really
basic but what I always like to do is
find out where the floor is
this is the floor so the odds are very
small of price falling through this
yellow line
for you and that means you know a lot of
people will say oh well
ethereum could go to whatever level but
I do believe this ascending line here
which starts at about a thousand dollars
goes up to twelve hundred dollars is the
ascending floor
so you can assume if the price does fall
to that area
it's a very good probability of an entry
to an asset so what I like to do right
now here we're going to go to the right
hand side go to
1208.99 but on the column of numbers on
the right
yep and hit the right Mouse button
you should be able to create an alert
there it is ADD alert for
eth1202.04 just click that
now now what happens is when you're
looking at many assets and we're going
to do this in great detail for many many
different assets but
when you have all your alerts out there
sometimes things will fall into your spiderweb
spiderweb
that's kind of my trap and I set traps
all the time one of the very important
things in investing is to be very patient
patient
wait don't ever Rush wait for things to
fall into your traps so what we're doing
with basic lines is identifying where
these support levels are now the
opposite is also true for identifying
where the roof is for different types of
assets so let's go to Nvidia that's the
click this guy
and let's zoom out let's go five years
and then zoom in
okay I want you to add something because
this is because this is a very volatile
stock and I actually own this one and
I know your husband might as well
so I want you to add on the very top you
should have a button called indicators
it's the it's like a bar chart with the
line on top yeah
click that and then put in the 50 click
the fourth one down 50 100 200 day SMA
okay okay
now within that though I want you to go
to where it is listed on the top left
corner hover over the 50 100 200.
yeah it hit the Cog
I want you to turn off the 100 just hit
the tick beside it yes
this here okay off okay because what is
very important is the 50 and 200 but
that's a quick way of pulling them up
now in ta they have this weird thing
where if the short term line will tell
me this two this one is 50 day and the
other one's 200 day which is the short
term line the green yes perfect
yes this is my intuition but I had some
question it's it's in for me it's
important to understand we have the
three line the blue green and red and
what's exactly this because I am new
person here and I never doing this
analyze what this colors mean I I read
here and it's 50 to 100 200 days and um
um
is ma similar what's this mean 50 days
it's a simple moving average so it
averages the price over 200 days for
example for the
and the reason this is so important
is if you look at the time period
between say July 2019 and
and
early 2022.
what do you notice about the price which
uh here into blue yes go up and and this
is go like uh I don't know how much but
it's from the 40 here in the line 22.99
go to
340. yeah
222. I want you to focus on the Middle
look at the way the Blue Line bounces
off the red line not once not twice
three times
in fact four times this is what people
see as a kind of a medium term support
that's why it's always important to have
your 200-day moving average because it
shows you where things where support can
be but we'll talk more about risk later
if the price falls through that line
typically that's a bad sign it means
you're breaking through support
something bad is happening
so that's exactly what happened in early
q1 2022 it broke through the 200-day but
then it went through it again and then
it went through it again down as well
now the other thing that I want to show
you here a little trick and we're
starting with the real Basics so I'm
going to get a lot more sophisticated
real fast
is when the short term line crosses
through the long term line when the 50
crosses through the 200 that's a bad sign
sign
show me an area where that happened and
what happened afterwards to the blue price
in my opinion this is the it's like March
March
March 2022 here in this line perfect and
it's blue line here yes it's the price
yeah but did the price go up or down
after the short term line crosses the red
red
a girl down yes remember that little
trick now the other thing that's very
funny is the opposite of that show me an
area on this chart where the green
crosses the red and tell me what the
price does
uh green across the red here
uh it's the January 23 is we're talking
about this correct it's good yep and
um this is Monday
uh and go up the price go up exactly so
this one this one it's very very nice
from 146 to
uh to 270. exactly this is what they
call a golden cross and the other one is
a death cross so we're going to do
another trick and it's very very helpful
to annotate uh make notes on the charts
so on the left hand side
you'll see a smiley face
uh yes I hit the little tiny little yes
the little yeah that one beside it
and make me
across actually you can use actually get
the death cross down there I didn't know
get the skull place the skull on the
you can drop it anywhere and then you
can move it around afterwards too so
it's here yeah now drag it down exactly
yeah you can drag it closer across so
you remember
is bring it right down to where the
green crosses the red yeah
okay now that I want you to get one that
is like
a gold a piece of gold emoticon or a
cross or
a religious symbol or something you
probably find it under the hearts yeah
yeah
see if there's a cross there's a purple cross
cross
drag that to the Golden Cross area but I
want you to find a second one too
yeah that one
and put that in the area of the Golden Cross
it's here yep
okay now find me another one find me
another Golden Cross let me go to the
it will be
September 2019
or no or or uh here that's September
we have two terminology Golden Cross and
that cross yes yes exactly
it sounds really really strange to
do these things but I want to show you
how they work and how they signify price
action and a lot of people say that
technical analysis is like astrology it
doesn't really work but the truth is it
does work but as we go deeper you'll see
exactly how it works okay we'll do a
quick recap what we've done so far we
created a portfolio we added some
indicators to basic moving averages we
made notes on our charts and we were
able to identify crossovers
Etc and we have uh we did some line
drawing for support and resistance
levels actually tell me let's draw a
line as to what you believe is
resistance for NVIDIA here
how high do you think the price could go
I think here like
can you can you draw can you can you
create an alert for me
yeah yeah alert for NVIDIA
and we'll do that again at that level
and then do a second thing
I want you to add a line for the price
hit the plus again
and then draw a horizontal line at 327.31
327.31
so that's you know when we do these
charts where sometimes the support level
is an ascending Channel sometimes this
the resistance level is ascending but
sometimes it's a hard stop as well
so that is uh where we are so far do you
have any questions before we start
talking about what we can do with more
advanced Tools in a second
I am so excited I I learned so much new
and when I see the
Google for example and this Nvidia for
example uh it's totally different uh and
what's mean and I want doing the stock
market it's nice to be in little bit
here little bit here and Tesla and and
Google and everywhere little bit or just
focus in one company yeah it's a Well my
style is [Music]
[Music]
so what I did at a young age is I read
every book from every expert investor
and I profiled every expert out there
and tried to understand
what's in common between some of the
best investors one of the things that I
got away from that was a high conviction
in fewer names if you own a little piece
of 60 stocks your result which it'll
follow the market but if you can
identify winners and get in early let's
go let's go to Tesla for example
click the Tesla chart in the top left
and then go to five years actually this
is five I think we're in five years now
I want to teach you another little trick
it's called the ruler so you can measure
returns so on the left hand side you'll
see a little ruler
of your chart
click this and go down to a
approximately May June 2019.
and then try to go to the very top of
the chart which is where the price is
about 415.
okay so perfect excellent
Now read for me the percentage number
there in the blue box
1492 comma 38 percent okay so that's
what they call 15x
15x
so the price went up 15 times it
actually went up more than that but we
didn't catch the quite the bottom of it
but how long did that take to make
15x the money it's also a box from
from
June 19 2019 to
October 2021 it's like two years
exactly it's so you have up there you'll
see another term you see 118 bars and if
you look to the very top of the chart
you'll see W for week that is 118 weeks
so it's a little over two years or 826 days
days
and this is a very important tool to be
able to measure
what assets can do in a short window of time
time
if there's not many assets that you can
be in that make such a crazy return in
such a short time you know the average
stock market return is you know eight to
twelve percent depending on the year uh
on average
um what's me this this average it's very
safe and comfortably and win for us
money because we have 1
492 percent in the uh 118 bars yes
exactly and this this is the type of
returns you need if you want to change
your lives
yes I also feel very very safe the model
uh because I I don't understand but I I
try to learn faster I feel very safe
because I have the green line with
xiaomi then it's good time for
investment or I need to take money leg
well typically after a big run like this
it's always good to take
some money off the table
you know okay because you because tell
me then what happened to Tesla it went
up 15 times so if you invested a hundred
dollars now you have one thousand five
hundred dollars
but what happened after it hit that top
go down yeah how far did it go
to 100.
yep exactly it actually fell
in in no in February though I've got
here in December 2022 go down to 112.
yeah exactly and this is important thing
because we are on a weekly chart and
sometimes the price what you see in the
blue line is deceptive because it shows
you what the price has done on average
for that week
not what it does minute to minute now I
want you to open up the candle indicator
and I want to show you something
now you said the bottom was what a
hundred and twenty yeah 150 yep hit
Hollow candles
all right now and then turn the chart to
the Daily hit the D instead of the w
at the top
okay boom
oh wow what's this candlest mean yeah
but but you see actually if you go back
this is where the price goes during the day
day
wow great if you look at uh like one
very drastic dip and what I like to do
is I like to buy drastic dips if I can
but go to the date it should be around
um you see a big red thin line
sometime I can't see the time um
um
hang on a second try to get this yeah it
was I guess was February 2022
big red line down
like the price fell from 280
to 240. yes yeah you're right there so
what the candle shows you is
where the price goes in the day because
the stock market's only open from 9 30
to 4 o'clock Eastern time and this is
the price action during the day so
wouldn't it be great to pick that bottom
and then the next day within actually
within two or three weeks it's up at 380 again
again
so so just in three or four weeks you
can see actually the intraday price
extra week price and if we go to the
Daily candle and go back to March 2020 two
two
you'll see
March you have to scroll back a little bit
bit
or you can hit actually you can hit the
plus sign yeah hit the minus sign there
that that one yep hit it again
there's our March and there you see the
Crazy Action of how the price fell and
how it grew and even if you go to the
minute chart you'll see even more
dramatic action on that time so hit the
one minute
on the top yep
now hit the at the very bottom you'll
see beside the times your little
calendar box
that one yet and you can hit open that up
up
and then on the bottom right hand corner
actually we might need to turn off the
moving day averages so go up to the 50
at the very top left corner
and hit the I so we're going to keep it
on but just hit the I
now then the chart Auto adjusts as to
what's going on now that we know how
candles work how price lines work now
we're going to go back to the four hour
and then we're going to add some new indicators
indicators
so we're going to go back to add indicators
indicators
yeah just hit that one not this one
beside it
okay now we're going to go to invite
only Scripts
that's it all right these are some of
the tools we can look at other ones in
the future but I'm just going to focus on
on
three today
I want you to click on
i a mean reversion first
okay
and then we'll go to Confluence model
click that once at the top number three down
down
and then we're going to go to
the Ia Trend model second one from the bottom
perfect and then we close that box
now what we have is two mean reversions
so you'll see an X beside one of them
pick the one at the bottom click on it
and it will turn that off
yeah there should be a little x to the right
right
perfect so I want you to hit the I on
the Confluence model and on the trend
model at the top
yeah when you scroll over each you'll
see a little eyeball to the right
just hit that and it'll
make it invisible and same thing for the
conference model scroll over hit the I
and it disappears
okay now we're going to do is we're
going to go back to the regular line
chart at the very top in the middle
we're not going to go for bar for the
bar as we're just going to go the
regular blue line
Perfect all right now everything is
simpler now I'm going to show you a
little trick
let's let's grab the middle of the line
for the meaner version drag it to the
middle of the screen you see where the
text is from meaner version is the time
to the line right above it
yes uh yeah grab that up
yeah perfect all right now this is
probably one of the most important
things and the simplest things in
trading so one of the things that I
always say is everything mean reverts
so the mean is kind of The Middle
and at the top you've got the Red Bar
and that means okay you're getting you know
know
one standard deviation away from normal
the top of the red bar is kind of two
standard deviations Etc and same thing
for the bottom
when you start going into the bottom green
green
things are very very oversold when you
get into the top red things are overbought
overbought
and everything comes back down to
gravity imagine
gravity line being in the middle between
the red and the green
that's the first thing so what happens
and you can see there's two red dots
what does that tell you regarding the price
the price go up
here and will it stay up or will it come
really okay find me two green dots that
are outside the green bar
and uh yes may before June two times
it's outside the green line okay so what
happens when things are outside the
green line what will the price do after that
that
um when it's outside go go up
and yeah okay so now I'm gonna ask you
to turn on the
50 200 day moving average again
okay now we've got more information here
so what I always like to do is find
things that are all telling you the same
thing so look at the red line the red
line is a 200-day moving average
half the time the price is above half
the time the price is below just
approximately here
look at how that corresponds to the mean reversion
reversion
okay so you've got red dots and if you
drew a line between the Red Dot above
the Red Band and the price and how far
it is away from the 200-day moving average
average
what does that tell you tell me then the price
it's uh it's far away from average
far away from 200-day moving average
so this this is how a symbol this really
is is when you think okay the average
price is say uh in this case 300
price goes up to 400 especially if it's
a big vertical
uh deviation from the mean in the bottom
this tells you it's going to come back
down and this is just how things are in
80 to 90 percent of situations same
thing when you have a Green Dot at the
bottom the price will go back up unless
unless the stock is a broken company
so if we look at some of the banks
lately they just go down and keep on
going down so that's why we want to be
in companies that are unique
that have a moat that have no
competition and will continue to grow
and make profit as the future goes
that's most important so now we're going
to go to the meaner version and we're
going to add something to it this next
thing is my dream in the 90s nice to
spend weekends calculating like eight to
ten hours a day just calculating what we
call a back test so on the mean
reversion click on that line
and we're going to hit the Cog
yes and then we're going to see in the
middle it says show back test
we're going to say true and we're going
to say true
now what you can do here it has a lot of
default settings
then we can leave them all as default
but scroll down
to the very bottom
I want to show you something very
important imagine you have initial
Capital it could be a hundred thousand
dollars or a hundred dollars or whatever
you can determine
when you test based on this indicator
and how much you buy so the settings I
like to use
um well let's let's drag this meaner
version table to the side and I want to
show you how we play with it and how we
dial it in
this is going to be very very important
so if you drag the grab the top of that
table you should be able to pull it over
and we can actually change numbers and
watch the impact on the back test
drag it to the right yeah that's that
works all the way to the right
perfect right there now see the table at
the bottom that is the the mean back
test for the mean reversion back test
and the amount of profit we make with
the amount of Trades we buy something 34
times we sell it 23 times and our win
rate is 73.91 and the return on
investments 54.1 if that is if we only
buy when we see a Green Dot and we only
sell when we see a red dot
okay okay we're going to change a few
things first of all on the exit type I
want you to drop that down to lifo lifo
lifo
now watch the percentages
it's much more yeah all of a sudden 100
which is quite stunning and let's take
the entry type so what I like to do one
of my methods
I call it double tap in double tap out
so I like to make two buys and two cells
because you may not pick the perfect
bottom but you may get close so we'll go
imagine you're going to invest
a hundred thousand dollars or a hundred
dollars in Tesla
we will pick
how we allocate that so I do the entry
type I do 30 for the first buy so change
that percentage of current capital
okay
and then on the lifo change that to 30
as well and watch the ROI the ROI went
um went from 75 to 180 percent
you just click anywhere on the black
field and it'll change the percentage oh
then we lost all right let's go back
let's open up that table again because I
want to I want to show you more things
that we can play with
now scroll this to the right so we can
watch the numbers change as we change settings
perfect now on the trading Style
now my style is aggressive but let's try
different ones let's try
um watch the numbers as well at the
bottom hit aggressive first and see if
we make more profit or less profit
okay
less less so which one would you pick
or actually do the drop down again and
change it to very conservative for example
Godless I will be take aggression very
good very good now nothing else now
we're going to go to noise suppression
noise suppression if you imagine all the
green dots all the red dots we make it
so we see less of them so I like to
sometimes use zero so turn noise
more higher again so less signals
sometimes gives you more opportunity now
we'll hit OK and we'll leave this for now
now
we're going to do one other thing too
watch the back test go to the top and
change it to one hour instead of four hours
one hour left we have less Roi
more but it's not as good as four hours
oh wow go down yeah so the the basic
moral of the story here the more time
you have to determine signal
the more accurate your prediction can be
for hours is better much better yeah
minute to minute you don't know what's
going to happen things go like this
but over four hour periods you've got a
much better feel for where things are going
going
all right we're going to add the trend
all right now we're going to do the same
thing again we're going to play with it
a little bit now what this means is
typically when you see orange you don't
want to be in because that means the
trend is going down the price is going
down and these are basically
two exponential moving averages that
have been optimized after we test them
for 45
000 times across hundreds of different
assets to find the optimal time at which
to buy and sell so if you look here tell
me a time when the trend is is turning
blue I.E you would buy and what the
because the price go up and next is the
orange but I will be stay in the April
and next the price here
here [Music]
[Music]
here here go down in the air 22.
good okay we're gonna we're going to go
into some settings and I go to the trend
okay
now I can see the trend is on tight
first of all let's turn on the back test
in the middle again make it true
uh go to show back test
all right now let's scroll the Box again
to the right so we can see the back test
you're getting really good at this
it's amazing the products all right
always show us then it's time to sell
yes to get out
great okay now tell me about the ROI and
are they good
otherwise 92 percent
on the
I think it's okay the wind is 62 not good
good
I think you have possibility to win more
I don't know but I think like this yes
you do and the way the way I like to
work is I like 80 chance of winning
and we'll talk more about the
combination of adding 80 chance of one
indicator 80 chance another 80 chance on
another if you've got three things that
say you have an 80 chance of winning you
have actually more than 95 chance of
winning when all three say the same
thing at the same time that is the
secret behind this solution so let's now
optimize it because I am not happy with
62.9 I want 80
make me 80 how do you do that I think I
[Music]
initial capital is the same
I need to change the
entry type
now this is
go try tightness first yeah
try that
okay we got four options okay
okay now that's minus
yes 54 is that good
no no
exactly now remember every asset is different
different
every asset moves differently that's why
I'm teaching you to have different
settings for different assets and you
have a table so of your settings for
your Google your settings for your Tesla
Etc let's try loose see if we can get it better
that is exactly okay let's go then the
exactly eight is what we want so very
tight is what we want for this asset on
the four hour time frame very important
all right now we work on the ROI and the profit
profit
so scroll down to the bottom
and go down to the entry type
percentage let's change these
percentages let's make the exit type lifo
lifo
that means so what lifo and FIFA means I
forgot to mention before
if you put a hundred dollars into Tesla
and then it hits a cell the first time
you put the first hundred in you sell that
that
but sometimes it's like a in a casino
you've been to a casino you know what
letter ride means
yes okay that's like lifo
your lasting is your first out your
first in stays you let that ride
okay let's change the the godlife let's
change we we have the ROI does that
change the ROI let's try it again let's
now let's change these numbers uh let's
do the 30 again like double tap in
double tap out and we'll pull up an
example of where that'll happen let's
make that 30. you can see the ROI change
and the pro oh do you see that the
profit doubled as you went from ten to
fifteen percent yes yes yes
uh go back up 245 okay
okay 50. it's good and when we do it go
higher you keep you've got to keep
testing all the time go up 20. for a
half a million dollars right there
25 25 788 000.
000.
so one thousand I love it this yes great
but again what this is doing is assuming
how much you put in based on the amount
okay go to the exit type remember as well
well
sometimes people forget and a lot of
people have lost a lot of money they've
made it
but they never took the profit
so imagine you made 1.2 million
and then the stock goes to zero
if you don't sell me when I win I need
to take the profit when I when I put a
for exam ten thousand dollars or one
hundred thousand dollars and I win one
million and still I have one million one
hundred this means that there's one
million I need to take and doing
something investment and 100 000 stay
and no what I what I first of all my
rule is always take the initial Capital
off the table just like a casino you
sound like you've been to a casino
before have you yes yes okay what's your
favorite game at the casino
roulette imagine imagine you you go to
the ruler table with a hundred dollars
and then you you win and they give you
do you ever take some of that 1600 and
put in your back pocket or you let the
whole amount ride again
uh to be honest I play more [Laughter]
[Laughter]
that's bad that's dangerous so risk
management is very very important so if
you if you put in a hundred thousand
Tesla you make 1.2 million you need to
take that money off the table okay
and then you buy real estate with it or something
something
okay so we have that we change the
change the FIFA exit type to lifo right now
now
and let's match this to 30.
see if we make any more profit okay
okay
and it should calculate
for you how much the difference is okay
so with that
let's leave those settings as they are
the other thing that I didn't mention
the first time we looked at an indicator
was to pick the time frame
so if we change the start date of this
model to say January 1st 2020. so hit
and then see your profit is now less
you're no longer making 1.2 million
you're only making nine hundred thousand
it's not bad but when you look at how
you do in the market it's also important
what time frame and this is a back test
this tests how the system would perform
based on the actual indicator and the
price action of the time it doesn't
predict what will happen in the future
very important okay we're going to add
one final indicator
we're going to go to the conference
model and we're going to turn that on
and we're going to dial that in
if you click off that it'll disappear
okay turn the eye on
if you click off that it'll disappear
okay turn the eye on
for the Confluence model
now let's zoom out I'm having a hard
time so what we're going to do is click
off and it's hard to see the buy and
sell signals because the tables are so
big yeah what you can do actually with
the bottom one me and reversion we come
back to later but if you go down to
Miner version and hit the two little
arrows pointing together on the on the
right hand side yes right there oh uh up
high above yeah and the two arrows
pointed together yes
collapse the pane click that okay now
when we want to open the mean version
again we just expand the pane to the two brackets
brackets
now we see all of the stuff here
that we need let's turn off the 5200 day
and you could have many many indicators
open at the same time like I always have
10 or 15 on mine but here what we're
going to do is we are looking back now
you can see here certain settings let's
go to five years hit five years at the bottom
thank you
okay now you're gonna see a little green
flag that says bye
yes what does that mean
this means buy because it's a good price
and we go high okay uh tell me what else
you see above the flag
you see the colors change from Orange to
Blue from Orange to Blue yes and go high
because go from uh 100 1 108 go to 207
what's mean double the price
what's the most important thing here is
this Confluence model creates buy and
sell signals
now when you have a Buy Signal
and a trend reversal signal at the same
time if they both tell you the same
thing at the same time
that means your probability of winning
will be very very high let's look
actually at the confidence model
you can see here the wind percentage is
how much
let's move this table to somewhere else
where we can see it let's move to the
top of the screen so go to the Cog on
and go to table text table position
uh middle and on the vertical sign drop
all right now we'll move it to table
position middle move it to the top
and the one to the left of that yeah
yeah
okay now hit okay
we're going to come back to this in a
minute okay now we can see you can move
these tables anywhere you want
but I always advise always keep them
open always watch them
all right now we're making 100 win we've
only done two Buys in one cells and
remember we can't do a cell until we buy
so that is why that is so critical now
we're going to go
to the four hour chart okay so at the
now now we're going to see different
signals here
um now we'll scroll in I want you to
or compress the time so I want to see
no that's fine let's find the way it is
let's play with this area for now and
we'll dig into a couple of things one
you've got
the trend 81 win rate when it flitches
color you got the confluence
which is 100 win rate but the ROI it's
okay let's go and adjust this now we're
on the four hour let's go to the
now
scroll down change the we'll we'll move
the box to the right so we can see
again and change the entry type to 30 30
or go all the way up and as you do that
watch the numbers are they getting
better or worse okay wait okay they got
better so change do entry entry first
always do entry first exit second
entry here okay uh no up not the entry
fee that's for fees if you have a
brokerage that uses uh that charges you
one percent or two percent for every sale
sale
you can enter that there so it can it
can adjust your profit down remember if
you're trading actively and you're
incurring a lot of fees it's not not a
good thing so watch the ROI
yes okay much better
go higher again
wow okay
no it's it's tapping out so like the 30
35s seems to be optimal there
uh for you and then lifo go down to the
lifo exit type change those percentages
okay sometimes it doesn't have as big
and well it doesn't see the eye spinning
when it's calculating five years of data
it takes time for for it to spin so when
you change it once like go back to 30
for example
click off it
see the eye spinning there it calculated
already let's go back up on this black
okay your bias
this is an area where if you are very bullish
bullish
you can click bullish or bearish on the
market and this will have an impact as
well so if you click bullish watch your
but this this is because
when you when you have a stock
where the direction is up so for example
Tesla for the next
five to eight years I believe it's going
to go up same with company second video
therefore you can use the bullish
no way yeah so it doesn't pay to be
bearish on things
that are going up and then
zero yeah but let's leave it at neutral
for now because I want to show you one
other thing as to how this works with
the other indicators so let's click off
of this
okay open up mean reversion at the bottom
bottom
maybe the two the the two brackets
sideways on the right hand side
next one oh yeah okay now move this up a
little bit
so what we've done so far is we started
adding up all the indicators and tuning
them in to make them work
so on the bottom in the middle of the
chart I want you to hit the little minus
button so click on it you should see
them there there it is minus minus minus
keep clicking that
all right now
I want you to talk to me about what you
[Music]
outside the red
button and I see also the Green Dot
under the green button and it's time to
buy and it's time to sell yeah yeah
let's go a little bit to the left more
if we can take the chart back to 2000
yeah does that go anymore yeah it does okay
okay all right now
all right now I want you to show me
I want you to show me the first buy opportunity where all
the first buy opportunity where all three indicators tell you to do the same
three indicators tell you to do the same thing that means you have meaner version
thing that means you have meaner version in the green band or under it
in the green band or under it you have the confidence model saying a
you have the confidence model saying a buy flag and you have the trend turning
buy flag and you have the trend turning where is your first buy sign for all
where is your first buy sign for all three
three first is in the 2021 May after May it's
first is in the 2021 May after May it's May beautiful to buy
May beautiful to buy and we have two times because we have
and we have two times because we have the green and this we have Green Dot
the green and this we have Green Dot under the green
under the green green and here where is the below we
green and here where is the below we have also uh information
have also uh information and to buy but we have also the two
and to buy but we have also the two times information to sell when is the
times information to sell when is the red button and this is in November 21
red button and this is in November 21 yep yeah and this is what I call the
yep yeah and this is what I call the double tap and it might be a bad word
double tap and it might be a bad word but
but um it's like shooting twice so this is
um it's like shooting twice so this is why I like to sometimes you know you
why I like to sometimes you know you have a hundred dollars to spend you go
have a hundred dollars to spend you go in for 30 you go in with 30. so you
in for 30 you go in with 30. so you still have a little bit left but that's
still have a little bit left but that's the two buys here and then the two cells
the two buys here and then the two cells at the top now that what you're always
at the top now that what you're always looking for if you have the trend
looking for if you have the trend the confidence by flag and the meaner
the confidence by flag and the meaner version all telling you the same thing
version all telling you the same thing your probability of winning is extremely
your probability of winning is extremely high so we have mean 86 percent you've
high so we have mean 86 percent you've got your Trend 82 percent and your
got your Trend 82 percent and your confidence is 100
confidence is 100 so basically if you do this
so basically if you do this the odds of you are very high now I want
the odds of you are very high now I want you to calculate for me one thing what
you to calculate for me one thing what is the time between the buy and the
is the time between the buy and the first cell on Tesla
first cell on Tesla take out the ruler and counter
go to the buy flag of the ruler and then go to the cell flag approximately nine
go to the cell flag approximately nine months to a year I think
months to a year I think yeah but my two May to November 21 uh
yeah but my two May to November 21 uh yes it's the bars is 246.
yes it's the bars is 246. yeah it's the days we need to look for
yeah it's the days we need to look for it it's exactly half a year it's exactly
it it's exactly half a year it's exactly six months
okay now let's so now we know when to buy when to sell if you have
buy when to sell if you have a sell signal again but no buy you
a sell signal again but no buy you technically don't you're not in the
technically don't you're not in the position so on the next Buy Signal you
position so on the next Buy Signal you get the trend
get the trend you get the
you get the meaner version but you don't get the
meaner version but you don't get the confidence
confidence okay and that means you don't enter
okay and that means you don't enter click the one hour chart at the top
everything will recalculate and here you see much more activity much more cells
see much more activity much more cells on the way up much more buys on the way
on the way up much more buys on the way down and vice versa now let's pick a
down and vice versa now let's pick a different asset let's go to Nvidia and
different asset let's go to Nvidia and see what that says
see what that says or pick Bitcoin
or pick Bitcoin Nvidia I think is a good
this is an interesting one because here
here you know the asset is going to do really
you know the asset is going to do really well so you flick I want you on the
well so you flick I want you on the conference model to flick on the bullish
conference model to flick on the bullish flag
flag so go into the conference model hit the
so go into the conference model hit the Cog
Cog it is fantastic to tell when to sell
it is fantastic to tell when to sell I feel very sad in this model
never feel safe we should always have a good
feel safe we should always have a good eye as to what's happening in the
eye as to what's happening in the outside world as well I always say keep
outside world as well I always say keep your head out the window understand
your head out the window understand the macroeconomic climate what the
the macroeconomic climate what the companies are doing and everything else
companies are doing and everything else so here you can see how the results
so here you can see how the results change dramatically as well based on
change dramatically as well based on changing that position
changing that position and if we are at a certain situation if
and if we are at a certain situation if if for example
if for example um Nvidia hits an all-time high click
um Nvidia hits an all-time high click the five year on Nvidia at the bottom
okay it's a bit busy but you can see the
it's a bit busy but you can see the all-time high is 327.
all-time high is 327. now what would you do
now what would you do if you had the model and Nvidia hit 327
if you had the model and Nvidia hit 327 what setting would you have on the
what setting would you have on the Confluence model
Confluence model like you can see if you scroll to the
like you can see if you scroll to the chart to the right you'll see the self
chart to the right you'll see the self lag at the very top
lag at the very top so
so or what you can yeah it's it's kind of
or what you can yeah it's it's kind of hidden under the table
hidden under the table which you can see it determined the time
which you can see it determined the time yeah you can compress that together
yeah you can compress that together there's the first red triangle behind
there's the first red triangle behind this text and the second red triangle
this text and the second red triangle behind the text as well
behind the text as well which is
which is huge down
huge down and uh yeah tell us the orange and the
and uh yeah tell us the orange and the red flag that we need to sell
red flag that we need to sell pick another asset go to bitcoin
um and and we're just looking at you know introductory class here you could
know introductory class here you could call it
call it um what can you tell from from this
um what can you tell from from this chart let's go to the four hour again
now we hit the auto button on the bottom right corner
right corner so it'll reset the chart
so it'll reset the chart okay tell me
okay tell me did you see a Buy Signal confirmed
did you see a Buy Signal confirmed yes by signal it is here in the position
yes by signal it is here in the position of
of 10 March where is the date 10 March 23
10 March where is the date 10 March 23 and it's the price go up up and down up
and it's the price go up up and down up and down a little bit too much but still
and down a little bit too much but still going up what's mean we don't sell we
going up what's mean we don't sell we just wait yes exactly now let's go to
just wait yes exactly now let's go to the settings in the conference model as
the settings in the conference model as well
I want to teach you how to turn off all that text settings because it blocks up
that text settings because it blocks up the whole screen
the whole screen which I don't like
which I don't like um but I'm going to go to the indicator
um but I'm going to go to the indicator support I'm going to show you one thing
support I'm going to show you one thing um before you can get a lot of
um before you can get a lot of documentation on all these tools so I'm
documentation on all these tools so I'm going to share my screen for one second
going to share my screen for one second if I may
if I may if I figured how
if I figured how there we are so here we are within the
there we are so here we are within the uh
uh documentation
documentation and the user guides
and the user guides start here the idss user guide
start here the idss user guide and frequently asked questions
and frequently asked questions so I'm going to pull up this PDF here I
so I'm going to pull up this PDF here I hope it's still showing
hope it's still showing and you'll see a lot of documentation
and you'll see a lot of documentation the piece we're looking for is how
to get rid of the Clutter okay so here you click on the gear item in the top
you click on the gear item in the top right of your trading View
right of your trading View hit chart settings
hit chart settings and then you go to the status line tab
and then you go to the status line tab okay
okay yeah
yeah and we're next at the status line tab
and we're next at the status line tab okay
and then you uncheck indicator arguments and uncheck indicator values
so on the status line well I'm showing you on mine so I'll do that again you
you on mine so I'll do that again you hit the Cog
hit the Cog you got your status line and here's the
you got your status line and here's the arguments
arguments and you can see all the text that comes
and you can see all the text that comes out
out and I like that off
and I like that off and that way your screen is uncluttered
and that way your screen is uncluttered so you pull yours up again to make sure
so you pull yours up again to make sure yours is working
oh you got it great see how clean your screen is now
see how clean your screen is now yes
yes and it's uh much easier to see
and it's uh much easier to see now we'll do one last thing
now we'll do one last thing let's turn on the five minute chart
let's turn on the five minute chart on bitcoin
on bitcoin yeah 15 minutes
yeah 15 minutes all right and it hit the minus sign in
all right and it hit the minus sign in the middle of the screen
there should be otherwise sorry it's at the bottom for you guys
the bottom for you guys yeah hit the minus so we can see more
yeah hit the minus so we can see more action
action more more more more more
oh wow yeah so this is an example of and and go more as well is you know if
and and go more as well is you know if some people they like to have a lot of
some people they like to have a lot of fun you can have a lot of activity what
fun you can have a lot of activity what I recommend is
I recommend is the most important thing is trading is a
the most important thing is trading is a Bloodsport it's you against another
Bloodsport it's you against another professional always remember that
professional always remember that but what you can do with these tools you
but what you can do with these tools you have an edge but you have to practice
have an edge but you have to practice practice practice first
practice practice first so you can simulate trading it's called
so you can simulate trading it's called paper trading get a spreadsheet or a
paper trading get a spreadsheet or a piece of paper and pen and say okay I
piece of paper and pen and say okay I buy on first green signal the first time
buy on first green signal the first time I see all my three things
I see all my three things all pointing in the same direction I
all pointing in the same direction I dial in all my settings to make sure my
dial in all my settings to make sure my win percentage is above 80 percent for
win percentage is above 80 percent for all three
all three and allocate the capital to optimize the
and allocate the capital to optimize the ROI and then you pick and you play you
ROI and then you pick and you play you say okay I buy we'll say Bitcoin at 26
say okay I buy we'll say Bitcoin at 26 541 and I sell it
541 and I sell it at when the trend turns at twenty eight
at when the trend turns at twenty eight thousand six hundred then I buy again I
thousand six hundred then I buy again I twenty eight thousand three hundred and
twenty eight thousand three hundred and I sell it up and down up and down and
I sell it up and down up and down and practice and practice so you can
practice and practice so you can practice in a short frequency time frame
practice in a short frequency time frame and you want to be able to win 90 of the
and you want to be able to win 90 of the time
time that's the secret once you win 90 of the
that's the secret once you win 90 of the time and your rate just really
time and your rate just really trade for real
trade for real or work with your partner to determine
or work with your partner to determine hey I'm thinking about this trend I've
hey I'm thinking about this trend I've been watching this chart for
been watching this chart for a week now and history over the last
a week now and history over the last five years it's done this every time
five years it's done this every time these things happen
these things happen and then you trade you enter but always
and then you trade you enter but always remember to take profits as well just
remember to take profits as well just like in the casino take your money off
like in the casino take your money off the table
the table that is today's story any quick
that is today's story any quick questions from you
questions from you I I am so excited to win but not only we
I I am so excited to win but not only we to learn how to do in the safe and
to learn how to do in the safe and probably investment but remember always
probably investment but remember always respect the markets let me give you one
respect the markets let me give you one last test turn on the Bitcoin four hour
last test turn on the Bitcoin four hour chart and find me a death course
chart and find me a death course that's your homework
that's your homework you gotta hit Auto in the top bottom
you gotta hit Auto in the top bottom right corner
right corner so everything resets nicely we don't
so everything resets nicely we don't need the meaner version so you can hide
need the meaner version so you can hide the main reversion panel at the bottom
you can minimize it too on the the two little arrows yep
little arrows yep and this is what I mean by practice
and this is what I mean by practice let's turn on our 5200 day moving
let's turn on our 5200 day moving average
okay find me a death cross
find me a death cross here here in the right side here here
here here in the right side here here here
here well no just go out
well no just go out should I go more back in time
should I go more back in time yeah
yeah you can also scroll a chart to the left
oh yes I got it what's the date that's it yes
what's the date that's it yes add a skull add a skull to that chart
perfect very good
very good excellent by the way I think uh the
excellent by the way I think uh the you're seeing a lot of buy signals
you're seeing a lot of buy signals because you're in bullish mode
because you're in bullish mode but when you see a death cross
but when you see a death cross you're in bearish mode so let's flip
you're in bearish mode so let's flip that let's go to the Confluence model
that let's go to the Confluence model just hit the exactly and that bias
just hit the exactly and that bias should be bearish
should be bearish not bullish when you see the death cross
not bullish when you see the death cross these are little things you'll you'll
these are little things you'll you'll you'll see and understand and then the
you'll see and understand and then the system will help you get you out of your
system will help you get you out of your position until the trend turns again and
position until the trend turns again and then the next time you see a golden
then the next time you see a golden cross
cross what do you flip
what do you flip you flip your bias yes bye bye bye
you flip your bias yes bye bye bye definitely exactly
definitely exactly that is the lesson for today
that is the lesson for today I hope you enjoyed it I wish that in
I hope you enjoyed it I wish that in life we had the same simulation to know
life we had the same simulation to know where we have the dead crossed and we go
where we have the dead crossed and we go from a difficult situation
from a difficult situation that's a wrap thank you so much for the
that's a wrap thank you so much for the time today and uh let's Circle back in a
time today and uh let's Circle back in a week or so
week or so let me know if you were able to choose
let me know if you were able to choose other assets
other assets identify any patterns and if you did any
identify any patterns and if you did any paper trading on the five minute or the
paper trading on the five minute or the 15 minute but always watch the back test
15 minute but always watch the back test and find out exactly what's working
and find out exactly what's working what's not
what's not okay okay I will be very careful with my
okay okay I will be very careful with my investment thanks to you and thank you
investment thanks to you and thank you so much for supporting me I have many
so much for supporting me I have many nulls here in the paper and I promise to
nulls here in the paper and I promise to win win very safe
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