Course Content
Technical/Fundamental Trading Course Learning to trade like Smart Money and Build Wealth in the Stock Market
About Lesson

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.