YouTube Transcript:
Boot Camp Day 4: Trends

yo what's good welcome to boot camp I
believe day four now and today is going
to be another trading day Okay so
we talked about candlesticks and then we
had two talks on discipline hopefully
you guys learned something from that
hopefully you guys did your homework but
today we are going to be talking about
Trends we're just going to jump right
into it no reason for us to sit around
okay I have some notes on my phone so I
don't get lost in my own thoughts but
we'll just jump right in okay so Trends
within the market again you're probably
going to say oh my God this is recap I
know we have to cover these super basic
simple [ __ ] before do I have bed bugs
um no okay
um but before uh we actually get into
the difficult stuff like strategy and
actually executing okay
um because all of these little things
end up being like the the massive
umbrella over these small things that
you try and master you try and master
strategy you try and master execution
but you don't even know where the trends
going you can't even read a Candlestick
okay so how do you expect to perform in
the market if you don't understand these
simple things so with that being said
let's talk about Trends okay so the
first
first point that I want to talk about
why do we even care about the trend
because it dictates where the market is
going okay markets move off of momentum
okay so once once Market starts trending
okay odds are it's going to continue in
that direction okay so what even is a
trend in the first place okay
um a trend is literally it's it's almost
like
um you have a basketball on a flat
surface and you just push it right it's
going to roll and Roll and Roll and Roll
okay
um because of that momentum that's
pushing it Forward okay same thing with
Market okay when Market gets a little
push or a market structure shift it's
going to start trending okay so whoa
glitching this is why I need my PC which
is coming in like
three weeks but I ordered it and it's on
its way
um but anyways why do we care about the
TR the trend because it tells us exactly
where Market's going okay so the very
first thing that we need to understand
is how can we spot a trend within the
market and it's honestly one of the
easiest and one of the most simple
things
um taught in day trading okay so when
Market is trending higher okay we can do
this
that was terrible but
when Market is trending higher there we
go put a little cap on it
it moves in higher highs and higher lows
right
it'll look something like this just with
a bunch of little candlesticks in the
way and and we'll show real life
examples of this on charts but right
this is like a very simplified version
of a trend right this is a high this is
a low when it pushes past this High it
makes a new high that's higher than the
previous one and it makes a new low
that's higher than the previous one okay
so higher highs and higher lows right
just like that and it continues all the
way until it breaks its Trend okay
so same thing with the downtrend just
the exact opposite Okay so
for downtrends it is lower highs and
lower lows oops
that is honestly what a chart could look
like though shrink okay that was
terrible I had to do it with like my
other finger but because I don't have a
mouse yet okay so right downtrend very
similar we have a high right here then
we make a low right here let's say we
had a low here as well and we had low
right here right this low is lower than
this one this high is lower than this
one and it continues okay and it's
really easy to see these trends
what oh oops
it's really easy to well you guys got
the point
um it's really easy to see these Trends
within markets
okay
so
right if we just go to the Daily
right here
okay we see
or this is just a most more recent
breaking structure we can
um
we can highlight this one right here
okay
so right down over here
okay we have
boom
a high then a low boom what do we get a
higher high than a higher low then boom
what do we get a higher high a higher
low okay boom what do we get a higher
high a higher low
oh
boom higher high higher low higher high
higher high now lower low because we
just surpassed this so what can we
assume that Market's going to do now
that it broke structure it's probably
going to flip its direction right let me
get all these drawings off of here so it
looks better but you can see that right
once we broke structure and changed
direction of the trend we continued that
for a while right and now that we just
broke structure odds are we're going to
start trending in the opposite direction
for a little bit okay so with this
understanding what what can this help us
do Trends give us the overall idea of
where Market is going is it exactly how
we're going to execute every single time
no right we we that's not how we're just
we're not just going to go okay once the
once the high gets pushed above we're
going to enter a trade right that's how
you can get stopped out there's there's
a bunch of problems with that and we
want to optimize our entry however the
trend is Pretty much telling us what
direction to place our trades in okay
because if Market is trending in One
Direction why in the world right if
Market is trending to the upside why in
the world would you try and take a trade
to the downside if the momentum is
pushing it to the upside wouldn't you
want to ride that wave wouldn't you want
to you know be be on right it's like
um it's like if you're in a car right if
you're in a car and you don't have a gas
or a brake pedal and you want to get to
and you want to get to a certain point
okay there's two there's two roads that
you can take uphill or down Hill okay
which which car are you going to get in
the one that's going uphill or downhill
if you want to get to the end of that
road
you're probably going to want to go
downhill right because the momentum will
just take you there instantly versus if
you try and go uphill you're not going
anywhere right it's very similar with
with trading and these Trends okay you
want to be able to
follow this wave okay follow the
momentum because that's where price is
going to go either way right there's no
reason to try and catch a retracement
because one you don't know how far or
how deep that retracement is like this
right here we had a very small logo
formed here and this we had a very big
low but the but the extension is always
the same the extension always goes past
the high right we see the high get
pushed through high get pushed through
high get pushed through high get pushed
through every single time high gets
pushed through
okay
so with that being said wouldn't it make
sense for us to follow that momentum
okay so that is our goal if you can
identify a trend okay which most of you
guys should most of you guys should be
able to do that because it's a fairly
um beginner
um beginner subject all right but you
want to follow these overarching Trends
okay and when I say overarching Trends
this is where it gets kind of tricky
because people get so caught up in all
these different time frames okay they
see different Trends on a bunch of
different time frames right there's
there could be there could be a hundred
different Trend switches and changes on
the 15 minute
over the course of this weekly uptrend
that we outlined right there's probably
way more than that there's probably like
a couple thousand different Trend
switches and changes within that Weekly
up uptrend on the 15-minute time frame
and that's where people go wrong a lot
of the times they get so caught up on
these small time frames saying oh the 15
minute broke structure
but but higher time frames hold higher
power if the four hour is saying no
we're bearish we're bearish right now
it's going to go lower and lower and
lower but the 15 minute just broke
structure why do we care about what the
15 minute is saying right we want to we
want to use the 15-minute in Confluence
with the with the higher Trend so right
if the four hour if the daily if the
weekly is telling us that market is
going to go down in the 15 minutes
telling us Market's going to go up why
don't we just wait for the 15 minute to
tell us okay Market's going to go down
now
right that would make sense because then
we can follow the trend of the market
okay and then also scale down to the
shorter term time frames right because
we know that these high time frames are
going to push price in that direction
but we want an optimize entry right
that's what I was just talking about we
want to go on these lower time frames
and be able to catch the large High time
frame Trend moves but with an optimized
entry Okay so
that is why Trends are so important they
they literally help optimize your entry
and help push price in the direction
that you want price to go right going
against the trend is never smart and
this has honestly been one of my one of
my biggest struggles and issues in
trading is trading against the trend and
trading against my bias I'm very good at
being able to spot okay this is where
Market wants to go
um you know like this is I know where
Market wants to go on a high time frame
it's pretty easy to spot however when I
get onto these smaller time frames I'm
like oh wait wait a second this could be
a little liquidity sweep and then a
retracement but that's the issue right
we can't be trading off of retracements
we have to be trading off of
um we have we have to be trading off of
um
[ __ ] what we
we have to be trading off of momentum
I'm sorry I just space the [ __ ] out for
a second okay so trade with the trend
the trend is your friend I know it's I
know it's stupid but it's very very true
okay the trend is your friend and you're
probably going to say well wait tjr I
thought you trade off of liquidity
sweeps I thought you trade off of Trends
changing yes we do but on Lower time
frames right we trade off of that on
Lower time frame so if we see a
liquidity sweep and if we see like a
liquidity sweep on the 30 minute time
frame
and then a break of structure to the
downside on the five minute time frame
in the four hour and the daily are
saying bear bear bear bear that's great
that's perfect that means that we just
caught the top of a of the next leg down
okay that's why we trade the that's why
I trade the way that I do okay so now
that we understand how to read a trend
how to spot them right it's literally
just higher highs and higher lows and uh
the next trading video will will jump
into break of structure because that's
going to be huge okay I might even do
two trading videos on that because
people do seem to get confused on it
which is pretty interesting because it
is a fairly fairly simple concept to
grasp but I do want to make sure people
cover people understand it because it's
it is very very important when
understanding these markets and how they
move and how structure shifts and how
transform and how you know just markets
are moving in general okay
um so the trend is your friend trade
with the trend right obviously it's hard
for me to say at this point in the boot
camp it's hard for me to be like
yeah the downtrend it's it's hard for me
to tell you like exactly where and when
to execute because we don't have all the
pieces yet right this is just giving
an overall umbrella right find that
overall umbrella and in again we need to
start on these main overarching themes
to get to get lower and lower and lower
and more exact so we can be able to
master these small precise things within
price action but we have to understand
the basics first okay so right what what
have we learned so far we know how to
identify a trend literally higher highs
higher lows lower highs lower lows okay
there is another way that market trends
and this just reminded me of it it's
through consolidation okay there's three
different ways that Market Market moves
okay it's either through Trends or just
consolidation right look at this
within here right okay we we see a
higher high and then we see a higher low
but right like this is not a trend
when do we know that Market's trending
if it if it continued higher like this
right but no it just stayed like this
stat it was static stagnant didn't make
a move until boom right here what
happens okay we're making highs
before before this break
we were going higher and higher right
then we chop it up boom we break we
break the floor we break the low we
change Market structure and and you'll
you'll understand that when we get to
the break of structure and Market
structure portion but we break the low
and then what happens okay we have high
right here low right here high right
here boom Market structure shift
right now what are we in we're in a
downtrend okay so what can we assume
that Gold's going to do right we came
back up here
high low lower high lower low lower high
what's next
probably a lower low targeting this area
of liquidity which we will get into
eventually
right but again see how we just see how
I was able to just take a very simple
overarching subject and
literally like
this is you like this is
some of you could be trading like this
and be profitable
you don't believe me [ __ ] try it some
of you guys can trade this ideally right
we don't trade this way so we get more
optimized entries right so we can have
tighter stop losses right so we can get
higher risk reward trades
but some of you guys can trade like this
if the [ __ ] that I trade if the [ __ ]
that I teach doesn't make sense to you
you can still do the basics
okay you can still do the basics
all right so
there we go we we know how to identify a
trend okay we know that it shifts
momentum within the market it shifts
Market structure okay and and it tells
us the direction that market wants to go
okay we cannot be caught up notice how
when I identified that Trend again that
trend is is on like the 30 minute
okay but but it's following it's
following
the daily Trend right we have boom High
lower high we have a low right here and
another lower high and then boom
lower low another lower high lower low
probably in the process of forming
another lower high just to form another
lower low right the daily is telling us
lower lower lower lower lower lower
perfect so when we scale down onto onto
a smaller time frame we can say okay
where does price want to go we know on
the high time frame it wants to go down
we're on a small time frame wouldn't it
make sense for us to want to catch you
know the big massive wave and not these
little Ticky tacks to the upside right
we would want to find something that's
going down
right to continue that daily trend
right so how are we how are we going to
do that
right literally literally just finding
shorts finding shorts on a short on a
small time frame and we'll get there
we'll get to the point where we can
where we can execute we're not there yet
okay because we just started and and
hopefully you guys can be patient with
this but trust me this will benefit you
if you because I I see so many people
there's a reason why you're losing in
these markets guys there's a reason why
you're losing every [ __ ] day because
you're not taking these basic simple
very very important strategies not even
strategies just Concepts you're you're
throwing them out you're you're going
You're Going completely off of liquidity
so you break off structure must enter
there's a liquidity sweep and break if I
could go on the one minute time frame
and find a million liquidity sweeps and
breaks up breaks of structure
all throughout in here all in here
all in here
I could I could do that a million times
within this
right some of you guys are entering off
of these little Ticky tack things and
it's like no
no that isn't going to get you winning
trades that's not going to get you high
probability trades what do you think is
more high probability
taking a liquidity sweep and a breakup
structure off of purely five minute
price action off of purely a five minute
Trend and maybe like the help and the
Confluence of the hourly
or
understanding where price wants to go
long term maybe on the four hour or the
daily at least right because we're
working with intraday price action
at least nowhere that where where we're
going for the day
right because if you don't know where
price wants to go for the day you're
going to lose if you cannot understand
where price wants to go for that single
day and you are trading intraday trades
if you are if most of your trades last a
couple hours if not a couple minutes you
need to know where the where price wants
to go on the day okay and that's and
that's where understanding and knowing
the trend matters
okay you have to be able to understand
that
okay user use your Trend to your
advantage okay when looking for small
time frame trades that's what I had
written down okay let's see if I missed
anything
um where is the market going we
understand that right literally just by
reading the trend and all guys like
something something that really helped
me
when I was first learning this look
simplifies the [ __ ] out of it
where's Mark Young high low high low
higher high higher low higher high
higher low higher high higher low higher
lot right
oh we get a trend shift right high low
oops let me let me remove this
right we see high low lower high lower
low lower high lower low lower high not
a lower low
okay we push a little bit higher
continue right and when that happens
right what can we assume
it's just retracement on a higher time
frame
now what's this high low lower high
lower low okay right we're understanding
okay and then boom right what happens
High gets pushed above now what higher
higher low higher high big dive okay use
use the the line chart to your advantage
okay like if we're looking at the 15
we scale down into this
can tell you right doesn't this look a
lot simpler
to be honest some of you guys really
should be using this
right this this makes this [ __ ] so much
easier
right oh we're looking for it to hit
equilibrium let's not get caught up in
all the candlesticks okay perfect we're
we're in a premium right now now what
are we looking for
okay we're looking for a trend shift
on the five minute
okay or the 15 minute whatever you want
okay we're just waiting
for these lows to get pushed pushed down
below
right we're doing this we're chopping up
we're consolidating right now because
this was from Friday right Market just
ended it needs some volume to come in
um today because today is Sunday uh
during the Asian session or sorry yeah
during Asian session in London session
and then once New York session kicks in
we'll be able to understand where price
wants to go from there
but some of you guys could really
benefit from taking out the color of the
candlesticks okay and just identifying
right where where is Price going
super easy just to zoom out
on a high time frame and just look
where was Market going down
so so why in the world would you want to
look for longs in this
we're looking for shorts notice how
right the moves the moves higher are
always smaller than the moves lower the
moves higher are always smaller than the
moves lower
if you measure it in every single Trend
because that's how Trend works right
that's how Trends work
lower highs lower lows
the lows are always lower than the
previous ones the highs are always lower
than the previous highs the highs are
not going higher in a downtrend and same
thing with an uptrend right in an
uptrend the lows are not going lower
than the previous lows it's higher highs
and higher lows so why are we trying to
trade the opposite things
move with the momentum move with the
trend and you will be able to catch
bigger Longer higher time frame moves on
a smaller time frame
okay that is what this is all about okay
this is this was a very very simple
exercise and very simple thing but
hopefully you guys learn from this and
please do not forget it because I know I
forget it occasionally and that's when
that's when I lose trades that's when I
[ __ ] up okay and my biggest thing my
biggest recovery from
from you know like having like a losing
week my losing week was because I was
getting so caught up in the small time
frames I was not looking at the high
time frames I I was I didn't even care
where the higher time frames wanted to
go
I didn't care at all
okay
but that was my issue okay the second
that I can start understanding okay the
higher time frame wants to do this how
can I find an optimized entry
to to ride that next wave that comes
down right to ride that next boom
[ __ ] dump waterfall down
when can I get that next okay that's
that's how you can get those good
high-risk reward high quality high
probability trades okay so do not take
these early lessons lightly I know I
know you guys really want to jump right
into the strategy but trust me the
strategy is purely a step-by-step plan
on how to execute if you can't
understand this if you can't understand
what price is telling you through
candlesticks
what makes you think that you will know
when when to enter a trade
if you don't even know where the
Market's going in the first place
because the step-by-step rule all those
steps those can be applied in either
direction high or low
or going higher going lower
right I could find a trade in both
directions using that strategy on the
same [ __ ] on the same move
right it's understanding where the
market wants to go though
you have to understand where Market
wants to go okay trade with the
direction of the market because the
market isn't going to move for you right
we see people blowing on their screens
please go higher please go higher please
Bowl please Bowl
right
like the market isn't going to listen to
you it's going to do what it wants and
it's going to follow its own path Okay
so
with that being said homework for today
I literally just want you guys to go on
whatever pair you use and identify for
this upcoming trading week okay because
this is going to be posted on Monday
all right identify for this upcoming
trading week where you think price is
going to go okay make in make a
prediction okay based off of what you
know what you know currently or or just
the bare minimum that you've learned so
far from this course okay identify where
PR where you think price wants to go for
the week
okay and then after that
scale down to a lower time frame and
then identify okay right so you're going
to start off where does price want to go
for the week
okay make that prediction write it down
please Journal this
write down where you think price is
going to go choose just one or two pairs
okay it can be either be the S P 500
gold GJ gu whatever you want
okay just identify where you think price
wants to go for the week
okay and then once you do that once you
identify this is where price wants to go
for the week cool
um
once you do that scale down to the Daily
then say okay where where is Price going
to go in the next couple days because
you can make an accurate prediction on
the week but does that mean you'll
you'll be able to be accurate on these
lower time frames you know
Okay so
where does one skill in the week where
is the draw of liquidity and we'll talk
about that sooner or later okay
eventually right
we just need to cover these super simple
things first okay where does price want
to go in the week where does price want
to go in the next couple days and then
where does price want to go today where
is Price going to go today
and then if you are capable if you
already know my strategy if you already
know how to trade draft up a trade based
off of those biases and it only has to
be just one trade okay right where do
you think price is going to go for the
week perfect do you understand that bias
now where is Price going to go the next
couple days perfect do you understand
that bias okay where is Price going
currently
where's price going currently right
everything on gold says it's going to go
down but currently price is going up so
what's it giving us an opportunity to do
find an area in which we can go short
okay so we're going to look for an
opportunity
to predict to project where price wants
to go I don't even want you to draft up
a trade I don't want you to have a stop
loss I don't even want you to set up
this position thing on it I literally
just want you
to use the forecast tool drag it from
wherever price is at right now and show
where price wants to go
just like that
just like that and it's okay if price
goes a little bit higher and then
fulfills your your targets okay because
at least you knew where price wanted to
go right the execution will come later
and we'll talk about when we know when
price is going to change direction in
the market but this is a great step and
this is a great learning point okay do
this on one or two pairs right choose
whatever your favorite two pairs are or
if you only trade one pair only do it on
that one if you trade three pairs only
do it on two of them and throw the third
one out okay you only need to be focused
on one or two pairs this entire boot
boot camp what makes you think you can
understand multiple asset classes if
you're already losing on 10 of them
okay if you're losing on every single
one of them wouldn't it make sense for
you to try and slow it down to try and
simmer down right and try and focus on
just one of them first instead of trying
to study 10 or 20.
it probably would make sense
okay so that being said let's get to
work all right do your homework I I I
um advise you guys to experiment with a
line chart to help um understand
direction right because it's really easy
just to scale back
on these higher time frames and and
literally just look where is Price going
right four hour
where where is prize going it's going
[ __ ] down okay over here where is
Price going it's going [ __ ] up okay
where is pricing going it's going down
okay where is Price going it's going up
right very easy right you don't even
have to you don't even have to get all
up in your head where's the higher
higher higher low just look look where
is Market going
right it's as simple as that and we'll
get to execution later okay so with that
being said get your [ __ ] homework
done right after you watch watch this
video okay make sure you make sure you
keep trying to master your mind make
sure you keep trying to improve okay and
if you're watching this video I already
know you're trying to improve so that's
good good for you keep after it stay
strong let's get this [ __ ] all right
peace out I'll see you guys tomorrow