[00:02] higher highs and higher lows, forming a channel-like pattern. Can you tell me if the price will break out to the upside or the
[00:20] overall picture. If we look at what the price has been doing previously, sharply through this bearish impulse and is now rising within a wedge-shaped channel. If we can identify that this rise
[00:36] is just a retracement of this bearish movement and not a trend reversal, we could enter at the end of the retracement to capture the next impulsive move. To do this, we'll show you our strategy in four simple
[00:52] our strategy in four simple steps. Step one: Determine the major trend. We must identify long-term trends, as this will be our main trend. During uptrends,
[01:06] we'll look for buying opportunities, and during downtrends, we'll look for selling opportunities. If the price is range-bound, we'll avoid trading during these times. To determine the trend, we'll use two exponential moving averages. The
[01:22] yellow one shows the 100-period exponential moving average, and the blue one shows the 200-period exponential moving average. These moving averages will help us identify the
[01:36] trend. In an uptrend, we'll see that the 100-period EMA is above the 200- period EMA, and both moving averages have period EMA, and both moving averages have an
[01:52] downtrend, we'll see that the 100-period EMA is below the 200-period EMA, and both moving averages have a downward slope. Once we identify the major trend, we must observe the
[02:06] price action of the most recent candlesticks. When the price is trending, the price action follows a zigzag pattern. This means that in an uptrend, we'll observe large upward impulse moves and
[02:22] smaller downward pullbacks, while in a downtrend, the price action shows large downward impulse moves and smaller upward pullbacks. downward impulse moves and smaller upward pullbacks. With this strategy, our
[02:35] goal is to enter at the end of the pullbacks to capture the next impulsive move. To do this, we need to look for channel or wedge-type chart patterns that form during the
[02:53] chart pattern. The structure of the pullbacks can be...  There are two types: the first is a strong pullback, and the second is a
[03:08] common and consist of a rapid movement driven by large candlesticks, making them difficult to trade due to their abrupt movement. Then we have weak pullbacks, where the price moves, forming a
[03:23] consolidation pattern with a gentle slope. These pullbacks are quite common and less abrupt, making them easier to detect and trade. They are also known as a flag or wedge pattern. During
[03:38] a trend pullback, we should look for the price to consolidate into these patterns, as this shows that the trend is strong while the opposing force is weak, forming these
[03:51] patterns. So, we should observe the period EMA, forming a consolidation pattern.
[04:03] moving averages, it often returns to them, as moving averages act as dynamic support in an uptrend and dynamic resistance in downtrends. We should only trade where
[04:17] we observe the price reaching the 100-period EMA. Notice how the 100-period EMA...  It is located above the 200-period EMA, indicating that we are entering a possible upward trend. So we will look for
[04:33] buying opportunities when the price approaches the 100-period EMA and draw a continuous line connecting the swing highs of the price. Similarly, we will draw another continuous line connecting the swing lows of the
[04:47] price. In this way, we will obtain the type of chart pattern, which in this case is a wedge consolidation pattern. Okay, once we draw the upper limits, let's Okay, once we draw the upper limits, let's
[05:03] support us with a like because this way we can continue sharing more content. Download various trading files for free on our website and join our Telegram community; we are already more than
[05:17] Telegram community; we are already more than 4,000 strong. Step three: entry trigger. As you can see, all these chart patterns have something in common: the price consolidates, reaches two key levels, and finally breaks out in one direction.
[05:33] Most traders usually wait for a breakout in either direction, so once they see the price cross either of the two limits, they immediately enter in the direction of the breakout. But it
[05:47] turns out that  It was a false breakout since the price reversed, resulting in a losing trade. I'm going to show you how you can prevent this from happening so you have a higher probability of the price moving
[06:00] in the direction you anticipated. Our entry trigger for the strategy occurs when the price breaks the pattern with an impulse candle. An impulse candle is a candle with a large body and short wicks
[06:14] compared to its predecessors. An impulse candle can also be formed by three consecutive candles in the same direction. For example, if we are in an uptrend previously
[06:29] identified by moving averages and we observe this consolidation pattern, we will enter a buy position when we see that the close of the bullish candle is above the upper boundary of the pattern and that this candle has a
[06:42] large body. This indicates that the price is currently under strong pressure in favor of the main trend. Remember that this strategy identifies explosive movements where our
[06:55] goal is to capture the next impulsive move. To do this, let's move on to impulsive move. To do this, let's move on to
[07:07] Trading is an activity that always involves risks. So, to minimize losses and protect gains, it is important to develop a risk management strategy.  For this strategy, we'll use
[07:22] dynamic management. We'll add the 20-period EMA to the chart. In a buy trade, we'll initially place the stock loss at the 20-period EMA, below the upper boundary of the pattern, and position
[07:37] the Tech Prophet at twice the stop-loss distance. Once the price moves in our favor and reaches the target, we'll close only half the position and move the stop-loss to break-even. This way, we've already
[07:51] secured profits with half the position, while the second half will be risk-free. We'll remain in the trade with the second half until the price closes below the 20-
[08:05] period EMA. This way, you'll obtain greater profits by following the upward momentum. Remember, it's all about probabilities, so wait patiently. Good setups, good trading.