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“Guys welcome to this episode on understanding are the buyers or the sellers in control. Control. I removed all indicators. So we re gonna be working on it with this just candles.
And because indicators can be manipulated. And they can fail you at times. But the candle and the patterns of the candles it can give you a lot of information on who is in control the buyers or the sellers. What i like to do is go something even a little farther and actually remove the colors of the candles.
So that way you only focus on just the patterns that s it so you don t know if as buyer s or seller s it s just that s it just i ll you that s all you see so we really have to focus on what are the candles trying to tell you so we re turning right here. We see that it came up in a hit resistance came back down and retested it. But it went up and then it felt came back down again to do another third test here right you got one two testing it again and it got above it again so technically you re saying okay well is this considered of the buyers in control or the sellers. Well.
We don t know yet this if you think about it you have to kind of mark this area until it gets above this area right here. We don t know yet okay also a good rule of thumb to kind of remember to help you out let s see have you these. 3. Wick sticking out over here people will be asking like well where will you mark these would it be on the top one.
But it d be the middle one or the bottom one with me. I the way i like to do. It is always get all three of them get all three of them marked in there that way it s it locks it all in that s how i do it okay so the market. It s sitting here in the range and then it breaks above that it s when the buyers came in and here we go it looks like the bars are doing their job.
Did a little retracement bars are going back in again. See once it broke this area. The buyers are coming in and they got a little pullback. All right so.
Now. The question is are we still in a strong trend or is this kind of reversing on us well for me i mark it right over here. Because this is the area that would have to break for me to get out of the trade. Okay would it be all the way down here.
No because this is actually just testing the market down..
There testing or kicking. People s shortstop s. This is where it would be the area that i would be paying attention to as long it stays above that i ll stay in the stock. I honestly see what happens yep there it is testing it right there wants to see oh and there it takes off again all right keeps moving little retracement.
So now since it s up here this area. I wouldn t really care much about i want to make sure it doesn t break this area. So that right now the bars will still be in control. But as soon as it breaks this lower area.
That s when i know that mark is turning around no i m still doing. It. The thing buyers are still in charge. So now this becomes my new area of watching.
So you got to give the market you just got to give them room to run if you make it too tight of a stop you re thinking you can get out at the same time. If you make it too loose. You lose a lot of money so you always bring your stop losses up. So that way you don t lose that much now technically the guy that started everything is down here.
This is where the market started running so anything above this. It s all considered bullish you can even let this thing. Come all the way down to here as long it doesn t break this line is still in the you know virus territory. But if you want to give up all that profit that s up to you i rather just keep you a little tighter.
So let s see we re still in here. Now looks like it s sitting on a range. Now okay. So this is our little range area actually lamarck range is a little bit different ranges.
I m gonna mark. It with a box so right now the mark is not telling me what it wants to do you re just sitting. There and this is where a lot of people make mistakes they ll sit there and they ll be like well do you think. This is a good time to get in because it s will they keep running up i don t know nobody really knows all you can do is wait if it breaks above the box.
The nib is a bowl..
If it breaks below that box then it s a bear so we have to kind of wait it out and see what it does so it keeps running it broke above it now breaking above it and that s it it doesn t count you have to make sure that it actually stays above it because it can come right back in let s make this a little longer here so this doesn t a close up of it. But until this one gives you the indication that s going to stay there that s when it s considered that the bars are back in so you get you get back in on that run and see where it goes. I m still doing that that line right you re still testing that line where he came out of whoops let me try that again without the other one. See the market always retest the same areas that it came out of because it wants to know if they can break through it so for me.
If i got into this trade. If it turned around and goes below it or back. In here. Again.
You kind of have to give yourself enough room to say okay well is this gonna turn right up back around or as soon as it breaks back in there you re done. But sometimes you have to break even not to lose your money so in this particular case you just don t really sure what it s going to do. But it definitely is breaking it to be already keep an eye on me you might to get out of this trade. Let s see what happens yep definitely time to get out because this particular case.
I didn t work out down here worked out great. But up here it didn t i m going to turn when the trade turns against you then it s time to get out so now we want to see how far down it goes will they violate this area mmm came right back to testing us. See the market always comes back to the same support and resistant areas. Maybe came only from support to become a resistance broke right through it so in other words.
It s not really respecting it in a sense of it s not a strong resistance. It s more a stronger support because it s using it more to stand on but when it came from underneath the neck scandal broke right through it so there s not a lot of resistance. The buyers are still in charge here all right doing its thing right through there again so they don t even respect this line either went right back on top there. But it s definitely testing this area right here to see if it can break through it now.
Which one do we mark top one or do we get off all of them. I always get all of them that way makes it easier say it even tested it right there. It s fighting that area so technically this became now the new range that it s in so i try to break through there and blow right through there again back to testing that line again. It s testing.
It whenever you get these really long wicks you got to be careful. Because what the market is doing. It s trying to find out what kind of resistance is up there okay so it s kind of giving you a heads up that it might want to go up there or this is if from here and they re just gonna start falling. So it s just gonna have to keep an eye on it to see a lot of times.
I just see when it does use long wicks that the market is gonna start falling..
But nothing is guaranteed. But it is definitely testing a lot of times people want to short the market. It is kicking them out just a you know they re there stop losses before runs. The other direction all right it s playing in this area.
It s definitely fighting in on this. This is the support that i found right here. At 7 50. And out it goes it broke right through that one and right down.
So yep. This is definitely a short stock right now so the sellers are in charge. So now. It s testing about to test this next.
One down here. So this is how you read before you jump into something like right now. It s sitting in a range. So we don t know what the market wants to do so you mark it okay you can even go up here.
If you want to but i would just go right there because this is where all the candles are sitting in getting all those candles. So it s testing up here. Again let s make this a little bit longer and now. It s telling you that it wants to go down.
So. It s bearish. The sellers are being charged of this this one came back to test that side again after it broke out soon as it broke out it tested it and down. It went and then now it s going right back in again so.
The candles is telling you where it wants to go and notice how it always goes back to there before we re had a resistant and support it always seems to get caught up in that area. These are the areas that you pay attention to because it will help you make decisions you know before you jump in it had trouble before had trouble before had trouble before almost like it s gonna have trouble again. That s the the way you read it you know not now that it just happened here. But it s like you just have to figure out if it had trouble in the past most likely will have trouble in the future.
So you re just kind of have to figure out if it s worth getting into it or wait until it breaks out now in this particular case it got there..
But it s nothing really telling me where it wants to go yet so i will just sit back and you watch because it s not really telling you this right now i can go up or it can go down. So let s see yeah. I m still playing up and down. Not exactly the safest stock being right now.
We re gonna have to wait it out so. Here guess what you re waiting for if it breaks above this area. But you look behind behind you. And you say well is there anything in that area that actually had trouble in the past.
Not really. So. This is just nothing there okay so you just wait it out oops. I get this out here.
And see what it does still sitting now sitting in another range and now you box it in and wait to see what it wants to do once the market tells you where it wants to go then you can decide to get in if it breaks above that you can get in going long if it breaks below that then you know it s when it s not worth getting in or you can short. It let s see what happens next. Oh it definitely took off it s way above that now this is the other mistake. Most people like to make they see this run and they go ahead and they buy right over here.
They say yep. I m gonna buy right now because i saw this little run well this would be the worst time to buy anything because the move was from down. Here. This is the wire started to jump in now the odds of this running higher are very slim since you missed all of this.
So now you have to wait to see if it consolidates again before you jump in or wait for it to come back down. And you know and wait for it so in this particular case. See and this is where people get in and they say i always feel when i get in the market turns against me. This is why don t ever get in up.
Here. You already missed the move just wait and see if he can catch the next move the next wave alright guys so hopefully this will help you guys out and understanding on you know who what area you in are the buyers are the sellers are in control. And i ll see you guys on ” ..
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