Technical/Fundamental Trading Course Learning to trade like Smart Money and Build Wealth in the Stock Market
Important video that puts the tools of technical analysis together to form what a typical trend looks like. Important trading notes:
- When looking for the bottom of a stock, we look for price to make a ‘capitulation’ price has aggressively moved down, its far away from moving averages and RSI shows oversold. This is our 1st range boundary.
- We do not catch the bottom we look for a range to build and catch the 3rd range boundary (or higher low). This usually occurs between 61.8% – 78.6% retracement between the 1st and 2nd range boundary.
- We can try catch a range breakout, usually a small 3 wave structure within the larger range.
- Each trending move will have a pullback, price consolidates after making a trending move in 3 waves, price will retrace typically between 23.6 -38.2% of the entire trending move.
- Price will then make a final excess move and you can take profits, price will be far away from moving averages and in overbought condition.
- After the trending move price will form another range.