FULL Technical Analysis Day Trading Guide 2025 (ALL Levels To Pro)

By the end of this video, you're going to know a plethora of beginner to advanced technical analysis concepts, as well as applications that I've been gathering over 8 years of full-time trading. That allows me to analyze the markets and profit off of predicting price movements. So, if you're brand new to trading, you're going to have a foundation to start building your own trade ideas and predicting moves yourself. And if you're coming here and you have trading experience, okay, you're going to be able to take whatever you currently have. I'm going to show you my start-to-finish analysis process, as well as my indicator stack, the thought process that I do each day when I'm evaluating the market, as well as some tips that I've found to maintain an organized and concise workflow on TradingView, and honestly, just how to have an elite TradingView setup. Be able to set up your analysis, set up the trades, and just have a well-rounded ability to do technical analysis.

All right, so I do have chapters in this video, but I'm just going to sort of speak one-on-one with you how I would normally coach someone who's getting started in analysis. And then as I go through it, I'm going to get more and more advanced, and we're going to start tying concepts together. Okay, the goal of this is to sort of take you through my entire process, but if you're looking for something specific, you can check out the time stamps in chapters below. If you're brand new or you just want to plug in and listen, okay, I can almost guarantee you that you're going to take something productive away from watching this entire video. So, with that being said, we're going to hop into TradingView here. This is where everyone basically in the trading industry is doing their charting. This is where we're analyzing the technical elements and honestly, some fundamental elements of the market as well.

Now, the difference between technical analysis and fundamental analysis is technical analysis is us looking at data in a visual representation and using all sorts of different tools, indicators, forms of analyzing this data to predict off of the actual structures that we see in the market that's being represented by numbers. Okay, when we talk about fundamental analysis, fundamental analysis is looking at outside factors, economic conditions, news, the inner workings of a company, sort of how outside factors are sort of going to influence the price and sort of pairing those things together in some degree is what's really important to do. Technical analysis, I think a lot of people focus only on the technical element, and then a lot of people focus only on the fundamental element. Having those two things have some sort of synergy is really where you get that beautiful combination in trading. Otherwise, technical analysis by itself isn't the most productive way, I would say, if I had to choose one or the other for day trading, technical analysis, and for investing, fundamental analysis. There's different spectrums, and we're going to talk about that in a little bit. But getting back to TradingView, this is sort of where I have my main layout on TradingView.

Okay, so I have a tutorial video where I go over setting up the entire TradingView, so I'm not going to get into that detail. I'm going to put that at a card in the end screen of this video, so just stick around, and then you're going to absorb all this stuff in, you can learn how I set up all of the little nuances of my TradingView. But for now, we're just going to go into a very general overview of what I have. So this is our main chart. You can see up here we have our currency or our pair, basically the instrument that we're analyzing, and then we have our time frames here. We also have the way the data is being represented. Okay, we'll get a little bit more into that in a second. Over here, this is my watch list in management. Really simply put, this blue list that I flagged with all blue is me looking at the main cryptocurrency pairs that I want to look at on a macro view. All right, so so this is where you can basically store all of your analysis on the chart and then not have it interfere when you're placing day trades. So I organized them into speculative and then market analysis. I have all of stocks separated by sector over into this area. All you have to do is click into this box and you can click whether you're looking at stocks or crypto, and then you can just flag them. Okay, and it's going to add it to these colored flags, and you can just hit the drop-down button here, hit add section, and you can divide them up how you want.

Okay, I have a whole management process for my day trading, so when I'm taking small individual trades that we're going to get into in a little bit, that's sort of how I go about distributing all of the pairs into whatever system I'm trading, whether it's a win or loss, whether I've booked it into my journals yet, so I can sort of keep countability for myself in that regard. So that's my watch list over here. Another important element for us to sort of pay attention to is over here in this object tree. Now, something really interesting is the fact that we can take our analysis and we can group it together and hide it and store it. So, for example, if we look at a trade that I just took recently, actually this morning, this was on Solana, right? I can go in here, and you can see I have the date, which is today, in the trade. I can turn it on and off. If I go here, I can turn on all of the individual pieces of analysis that I've added onto my chart from these toolbars over here. I've clicked them onto the chart, and I can basically store them. As long as I'm saving my layout, I can always have access to these later on, and this is going to help for keeping track of the analysis that you've done, having access to all of the trading information, all the decisions that you've made in real time. That's basically as far as I'm going to dive into sort of the interface of TradingView in this video. This is mostly geared towards actually doing the analysis ourselves, so let's really dive into section one, which is the basics of reading a chart.

So, like I showed you, we have our time frame, and then we have our data representation. If I switch over to say something like a line, I'm able to see the price of the instrument in a line view. So, every 15 minutes, it's going to post another point, and then each time there's a point, it's just going to draw a line between those two points. That's how I can look at data. Now, there is some other information that is really useful. Okay, there's lots of different ways to view it, but candlesticks are sort of the most widely used way of looking at data. Okay, so in this example, you'll see we have white candles and we have black candles. Okay, this is equivalent to like say something like a green candle, and this is equivalent to something like a red candle. All right, so on a green candle, which in this case is a white candle, this is our open, this is our close, this is the high and low that the price has gone. So, if we look at it in terms of just a drawing, if you guys have learned box and whisker plots, basically this is an open, this is a close, and this is the entire range the price has moved. Okay, but there's a lot of information that can be read off of that. All we know is that over this time, this is how much the candle has increased, and this is the total range. Same thing with the black candle. In this case, these would be my red candles or my overall negative movement over a 15-minute time frame candle. So, once again, highs and lows, doesn't matter, it's always going to show the same information, but that means that the candle opened here, price started here, and ended up closing in that time increment right here.

So, when we start to look at collections of those candles, that's where we can see basically mass human psychology, institutional algorithmic trading, all sorts of different price movement that we can now look at in the form of trends in supply and demand. I want to explain how supply and demand works. Okay, so when there's an increase in demand, that means that someone holds a position here, and there's other people that are willing to spend more to acquire that position, which means that the demand will go up, and price will move up to meet that demand. This is a very simplified version of this; there's a lot to do with algorithms and liquidity, but just to understand why charts are moving, I think this is really important. Okay, so this means when the price is moving up, there's more demand than supply, so the price has to move up until it reaches a point where the supply starts to outweigh the demand, and then price will start to move in a down direction. When something is moving down, that means that there's more supply than demand, and until that changes, the price will continue to move that way. If we have prices sort of ranging sideways, this is called consolidation, and this means that there's really no trend or no supply and demand imbalance that's being fit, and we need some sort of catalyst, something to change in order for there to be a significant move in the market. But these supply and demand imbalances create trends. These groups of candles, you can look at trends. So, for example, this would be an uptrend, and this would be a downtrend. All right, so there's going to be different opportunities based on analysis to be able to buy in, quantify risk, and then be able to make a profit if it increases or decreases in value based on where we enter that trend and where we're able to sell. The key is finding analysis is going to allow us to get to those conclusions.

Okay, so for example, if we were to determine based on analysis that we want to enter the market here, if it goes below this recent low, we're going to sell, and if it goes above this recent high, we're going to also sell for a profit. And say we buy 400 units, if the price goes up to our level, we can close out for a profit. If it comes down here, we close it out for a loss. That's basically how you make money in trading. Now, the golden question is being able to quantify those parameters and be able to enter and exit at the right point, so that's what we're going to get into as far as talking about how to do this analysis and all the things that I look for. There's a million different ways to do this. Technical analysis is basically making money in the market; it's a vast, wide-open ocean. There's a million different combinations of things that you can do to make money; it's really about disciplining yourself to set up the restrictions so that you're actually following things properly. So, in order to be able to find these areas, there's a plethora of crazy tools we can use to be able to all sorts of different kind of analysis with all these different tools, and there's also a million different indicators that we can pick from that will also give us all sorts of different information. Something that I will say is that the more simple your chart is, the better. Right? A lot of people get into trading; they start adding a million different things to their chart, which can actually cause confusion. Okay, when I'm trading, I like to have one or two things on my chart and really just understand how the price action moves. That's going to be one of the biggest things for you if you're beginning, starting off by understanding how trends form and just taking a wider look and then looking a little bit closer as you go is going to be super, super critical for your success.

Okay, so I'm going to show you a lot of the tools that I use, but it's a lot of really simple, non-reactive indicators. Okay, so I'm going to explain a little bit more about that in a second. So, there's two macro ways to make money in trading, or at least what I've boiled down to, and that is either getting early in a trend and trying to play into the direction of the trend, which is called a continuation strategy, and then another way of trading is guessing where trends are going to end, trying to enter in at the end or the potential, potential end of a trend in playing a reversal. Okay, so these are the two macro ways that we're going to talk about, but this is really the main way of trading. You can either follow the trend or try to time when the trend is going to end. You play into a counter trend. So, if we look at this previous trade that I took recently, for example, we have a new trend, right? So, I'm playing a continuation off of this trend. I time my entry, so I know that I want to enter the market right around this area. You can see I entered my position. This trend continues to move, and I end up taking profit off the table at around $11,000 in profit pretty quickly. Okay, just by playing a continuation of that movement. You can see the price continues to sort of trade up to my level. We were using predictive analysis to be able to get into that market at the right time. And this, however, is an example of anticipating a reversal of a trend. So, notice in this situation, we have a trend moving up. I'm anticipating that the trend will end and start to revert down, so I take position, and the price continues to move down, continues moving down, goes towards my take-profit zone here. I'm able to lock in around $3,000 in profit, and this is once again using analysis to anticipate a trend reversal.

All right, so let's dive into section two now, which is really understanding trends and understanding support and resistance. A lot of people talk down about support and resistance. Everything can be used in conjunction. I'm going to show you undeniable proof that this is an amazing foundation for components of trading, but it shouldn't be the only thing that you consider, right? But it's a very, very important thing to understand if you want to start playing into trends, sort of understanding where you are in markets. All right, but first, let's understand the characteristics of a trend. All right, so we have uptrends, we have downtrends, and we have a lack thereof of trends. Okay, but in order to consider this an uptrend, we have to have a higher high, a higher low, a higher high followed by a higher low. Okay, so lows are getting higher, highs are getting higher. We have at least four of these. Okay, now we can anticipate a continuation of a trend. So, realistically, we can anticipate this second higher low. So, if we were to have, say, for example, price moving in a down direction like this, okay, then we have a move for, say, example, we have a higher high off of this trend move that can indicate to us this is potentially a first high in a new trend. Okay, so if we see something like that, see another high broken over this level, we can then start to anticipate different levels. Okay, and this in conjunction with other analysis is going to help us dramatically. Simply put, an uptrend is two higher highs and two higher lows, and the inverse is true for a downtrend. Okay, so if we have price movement like this, we have a lower low, lower high, lower low, and lower high. Okay, so that is the technical definition of a downtrend, and once again, if we have sideways chop like this where neither one of these levels is being significantly broken through, this is considered consolidation, and this is basically the absence of a definitive trend. Now, we could go in here and try to, you know, maybe say that this is a slight downtrend or a slight uptrend. Really, we want it to be productive, so we want to be able to go in there and make decisions off of that. It's not really about saying whether it's a trend or not; it's about actionable things we can do with the chart to make money. That's really the point of technical analysis. So, in a trend, there's a few different terms that we're going to use. Okay, so anytime we have a move in the direction of the trend, this is referred to as an impulse wave, and if we have a move against the current direction of a trend, this is called a corrective wave. Anytime we have a defined high and price comes up through here and breaks over this level, this is what we refer to in technical analysis as a break of structure. It's basically breaking the structure and continuing into the direction of the trend. So, we can also use this trend tool here to draw along the bottoms of trends. So, say, for example, this were to come down, hit off of this level, and now break below one of these higher lows, this is what we refer to as a change of character. Okay, so it's changing its character to the upside. So, we have a break of structure continuing into the trend and change of character breaking out of that current trend.

The next thing that I want to dive into is actually evaluating where we are in current trends and just a general study of how trends develop and how they usually play out. There's a natural phenomenon called Elliot wave theory, and I could spend all day talking about this, but basically it's a study of a pattern that tends to take place when trends are created and then regress back down from the direction that they're trending. There's all sorts of different rules and indicators that we can use to tell where we likely are in a trend, but this is going to be hugely important to just gain a general understanding. And the general understanding that I want you guys to take away right now is that trends typically happen in a macro five-wave structure followed by a three-step corrective wave: 1, 2, 3, 4, 5, followed by a, b, c. Okay, and there's different rules we can use to define whether or not a trend is moving in this Elliot wave structure, in which case can add to our conviction that we're going to be able to play this in the right direction. And I'm going to start showing you all of this on charts, so I just want you to understand the fundamentals of this right now. We can actually go over to patterns and then go to Elliot wave on our charts and click on the beginnings of our chart, something like this. We can start to draw out five-wave patterns. Okay, so these are a few key rules that I follow in Elliot wave. The first and biggest rule for me is that the third wave right here cannot be the shortest wave. Okay, so the way I like to do this is just take a measurement tool, and I'll always draw it along one, and I'll see if three exceeds one. If it doesn't, you can expect that if we are following Elliot wave, this trend will have to have a higher impulse. I use this a lot in trades. If, say, I'm to enter a trend right around here, this move was shorter than this move; this is leading me to believe that I'll have to see a higher move up if the other rules are being followed. The second rule that I follow is a rule called alternation, that's where we look at wave 1 and 2 and 3 and 4. If this one has complicated price action, meaning if the chart is more squiggly and this is more straight, that aligns with the rule of alternation, meaning that one has to be a simple trend and one has to be a complex trend. If both of these wave movements are simple or both are complex, this invalidates the Elliot wave theory. And the third rule is that this four-wave cannot consolidate below the high of one. Okay, and the reason for this is if this is our higher high, this is our lower low, if we get a higher high, we get a deeper push underneath this level, this is invalidating the amount of momentum the trend should normally have, which can lead us to believe that this is more of a consolidation state rather than a direct impulse or corrective state.

There's two on-chart indicators that I like to use to predict these levels. I'm going to show a lot of on-chart examples of this in a second. The first is being, so if we have a five-wave structure, it's usually followed by what's called an ABC correction. Now, this can happen in both directions, whether it's a downtrend or an up direction. This ABC correction is basically this impulse correcting down to a reversion. First thing that I like to do is anticipate and see where the potential top of our trend could be, and I can use a tool called a trend-based FIB extension. This trend-based FIB extension is going to take the golden Fibonacci ratio, which is a ratio that naturally occurs, where's a phenomenon in trading in an everyday life. We can basically use to anticipate specific levels based on natural human tendency. And so what this tool is going to do is take that golden 61.8 number, which is the golden ratio in Fibonacci. We can click from the beginning of our trend to the first impulse back down to the beginning of this trend, which in this situation is going to give us a factor of one. Then this 1618 is going to be this distance multiplied by the golden ratio, and the 2618 is also going to be this distance multiplied by the golden ratio. And what I've noticed over time is that if we have proper structure in all of these rules being followed, as well as the five-wave either hitting 1618, 2618, even 3618, say, for example, if it's touching the 2618, we have the high of three reacting nicely off of the 1618, this can often times indicate that the trend will potentially start to exhaust and reverse at this top section. We're going to go over a lot more chart examples as well as we start to get into sort of reading trends in predictive analysis, but this is something that is hugely important on the investing side and on the intraday trading side. A big example of this is we can even look back at something like the daily chart of Bitcoin in the previous cycle. All right, so if we see overall, we had a movement 1, 2, 3, 4, 5, that means that we can label out our first impulse, corrective, could it be the impulse and the corrective, but we ended up getting another high and then another corrective and then a five-wave up here. So, if we were to take that projection off of where the price started to move up from all the way up to that high of one back down to that starting level, you can see that we almost got a perfect reaction fake out off of this 1618 level. That's simply from finding the beginning of this impulse to the high before the first small correction. Notice how this price action is a lot more simple than this price action, so we have a rule of alternation. We also have this is the third wave; this is much bigger than the projected five-wave is even bigger than our one wave, and then you can see we had our a, b, c move, which brings us to our second tool that we can use to sort of anticipate different levels, and you're going to see how this is important and how it sort of plays into other charting examples here in a second. This also plays into that Fibonacci golden ratio. I can use my tool here on TradingView called a Fibonacci retracement. What this is going to allow me to do is take the beginning point and the high point of trends, be able to click at the beginning of the trend and bring it up to the highest point of our trend right here, and you can see as we scale this up, this is going to give us different multiples of this ratio, including our golden ratio, our 50 level, 38.2, 23.6, and 78.6 levels. So, if we have whatever trend that we're reading, we can put that at the high and the low of the trend and anticipate where we are likely to see regressions of this trend. So, 50 is usually an area where we will get a regression. If we're to see a continuation and a full retracement of a trend is a 61.8 level hit before a continuation. We're going to see a bunch of real-world examples of this in a second. Even if we look where this price made a move down to, if we start from the beginning of our price action and go up to this highest point, we'll see price came down almost perfectly to this 61.8 level and the 61.8 level of our overall before making another all-time high. Okay, and so this is on a large Bitcoin chart, but this works intraday on 1-minute, 5-minute, 15-minute, etc. So, understanding these concepts is really, really critical to understand how to read a trend in the direction that the market's going to go into.

Now that we understand the characteristics of a trend, let's look at actually starting to identify some of these trends on charts, how we can use these trend levels to understand where potential predictive areas could be on a chart, and sort of how everything that we've learned so far can be applied to looking at a chart. So, we can see generally price is moving over this period of time, so we can start to look and try to identify different elements of our five-wave pattern and start to identify different characteristics as well. So, anytime I'm seeing a piece of price action like this, the first thing that I want to do is use my trend tool and start identifying the lows or highs of a trend to sort of see where we're seeing these reactionary invisible lines. Okay, so you can see we're getting a clear bounce off of these areas, this area, this area, etc. So, I see a line along here, here, here; we're getting a response off of there. I'm also seeing slightly more aggressive trend also along these lows, and I can also use something called a parallel channel tool and also use this on different trends. And what this will allow me to do is click on a certain area, and it will create a parallel line, which often times will show us areas of supply and demand imbalance. So, if we have price moving between two areas, I can click along those levels, move my parallel tool up, and this can often times anticipate where we will see this current trend exhaust and start to have a reversion. So, in this situation, this looks like it could be our 1, 2, 3, 4, and then we have a move up to 5. The next thing I'm going to do is grab that trend-based FIB extension tool, and I'm going to start testing out different levels to see where we could be potentially in this trend. Okay, so I'm going to click from the low part of that trend up to the highest point, back down, create that factor of one, and then I'm going to move this along different levels and see if I'm getting responses in any of these critical levels. So, something to consider, this actually could be our one as well. So, what I'm always doing is keeping my mind open and testing out different levels to see what we could expect our highs and lows to be. I'm not really getting a great reaction off of either level. If I move my Fibonacci projection in a little bit, you can see I start to get a response from this 2618 off of this resistance area in here, and this also aligns with where the high of five was. Now, notice I have impulse, corrective, big impulse move, simple correction, this is a simple move down, complex move of two, and then we have a continuation up into five. So, any area up here where we're starting to see a break under this high of three is leading us to believe that we could potentially have an ABC selloff. Okay, and if we draw a fib from the beginning of this trend to the high of this trend and we play this out, we can see we got a reaction temporarily off of this bottom trend, which is an anticipatory level, as well as coming into the golden ratio here before having a continuation. And that was the exact point where we got the price to consolidate into and then start to make a reaction to the upside. Okay, but let's get away from Elliot wave and go back into just looking at the chart simply with trend lines to anticipate different levels. If we look at this current trend, if we allow this current trend to sort of develop

A little bit more, you see that these lows in this area are the critical support zones. So we can use this to either play as support levels where the price can bounce off of. But if the price is to break below that, it means that the sell pressure was strong enough to beat out this supply and de-balance. When this happens a lot of times, the price will break underneath it, and when it comes up to retest this, this can be the last push up it takes before taking a massive move down. I call this an underside retest. This is what we talk about on the private side of our trading team. This is a confluence that I use in my analysis when I'm entering trades a ton. We're going to see all of these concepts starting to come together now.

So if we have our 1, 2, 3, 4, 5, we have our trend running along here. Notice how we're testing at one, two. We have our five-wave correction. Price continues to test along this. Notice how we didn't get any momentum to the upside. Now it's running along this lower part of the trend, okay? And then it finally breaks underneath it. Notice as it breaks underneath it, this is the last point that, somewhere in this consolidation zone, it was a little bit uneven on the bottom, but we ended up getting a reaction off of here. We had drawn our line here, but still within that range, to my point, price comes after it breaks solidly underneath, comes up, retests it, and continues to make a larger move to the downside. We can also see this on a smaller trend sort of inside of this bigger trend.

So, in addition to being able to use these breaks, these low levels, and use them as potential last areas of retest before a beginning of a new trend, this new push underneath these consolidated lows is showing us is going back to our trend structure of higher high, higher low, higher high, and higher low again. If, if we have a failed attempt, a run along this low, a break underneath that level, and a reclaim, this means that now we're making a lower low, and this could be the first move to a downtrend where the requirement is a lower low, a lower high, another lower low. This could be the first move, which means if we get a retest, we could be entering a position at the very first pullback in the trend before continuation. This happens on both levels. So let's look at how this plays out, and wherever this ends is going to show us some pretty critical information.

So notice now how the price is sort of established a new downtrend in this direction and has given us this low, this low, and then we got some interaction here, but we also have this as the previous general area of the trend that we just broke out of. So now we can do the same thing in the opposite direction. So if we use our parallel trend tool, I can go from that low down to this low area to that high, and we can do several of these too. You can overlap them right and go off of consolidation points and just get a general vicinity of where the price could potentially respond. And then once you start to see the price action respond off of that, you can start to just erase them and get a little bit more concrete, but we're getting, getting roughly the same answer on this analysis here.

So now as price starts to come up, we have the price riding along this, breaking underneath it, now retesting the underside, which is going to be a reactive area, okay? Also, notice how if I take a Fibonacci retracement, I can now play this as an upside-down trend. Click at the beginning of this trend down to where we currently are. Now notice that we have this 61.8 golden ratio right at this magical intersection point. I call it magical, okay? Right at this intersection point where we have underside resistance, 61.8, an anticipated high move up, move down, and then a reattempt of that and a continuation. So we're anticipating where we could potentially get the next area where the supply outweighs the demand, so the price will move down to adjust that.

So say, for example, we wanted to build a position where we were to take some sort of entry point here, place a stop loss, have a take-profit zone. We could have price play into our magic zone, get a reaction, get a drop to be able to make a profit by anticipating and using a lot of these confluences. Now it's not one thing by itself; it's a bunch of different things put together. If you're enjoying this video so far, make sure you subscribe to the channel. If you want to know when I drop videos as well as hit the like button and share it with your friends, you're trying to make gains with, can help get this information out on the YouTube algorithm.

So now I want to share with you basically all the indicators that I use and put on my trading view chart and a little bit more about understanding how those indicators play into how I read charts. So let's take a situation here. We have this level being broken. We have a trend up here. Price gets funneled into these two different trends and then breaks up to the upside. So once again, we can look at this 1, 2, 3, 4, 5, a, b, and then c. All right, and I want to explain a little bit something called volume. So I just have regular volume. You can go into indicators and just search up volume. You can add that to your chart, but basically this is going to show us market participation and whether we had net purchasing or selling over a set period of time. So you'll see we have these bars underneath here, and when we get an influx of volume, so those are gray bars are buy-side volume, you can see this is where we were able to push out of that trend, and you'll see areas where we had the price significantly moving down was exactly lined up to when we saw influxes of sell-side volume.

Something that usually people get confused with is it's showing us market participation; it's not showing us the direction of the market. A lot of people think if you see buy-side volume decrease, then the price is also going to decrease; that's not how it works. You need a lot of participation but in the opposite direction in order to correct a trend, okay? And as the volume tends to fade, the market will typically continue to move in whatever direction the volume is fading in until you see an influx of the opposite colored candle in order to change the direction of that trend. Once again, a lot of people think that if you have, for example, a lot of buy-side volume, you see the price moves up, and then you continue to get buy-side volume, but the volume fades, it, the price tends to fade in the direction of whatever volume is fading into, and then you'll see as we, we see a big increase in sell-side volume, this is where we actually see the price correct. All I do over my volume here is add a 20-period moving average, and this is going to just give me a very general average of volume. So if you ever have big spikes in volume, this can indicate the beginning of a new trend as well as big sell volume indicate continuation of a downtrend.

Depending on what system I'm trading, I like to add different things to my chart. It's something that I do like to look at a 20, 50, and 200-day moving average. You'll see we have our 20, 00. When they're all stacked in one direction with this indicator, it's called the, it Foundation indicator, is going to show me a general direction of a trend, and as soon as we get those to overlap, we're confirming that we now have a confirmed change in direction of trend. Now this isn't something that we can use to anticipate trends to change, okay? This is something called a lagging indicator, so it happens after the fact. However, if we're not trying to time perfect reversals on trends, these can be critical areas where the price ends up reacting off of for continuations and can sort of show me just in general the general direction of the market as well as how overextended it is by how much these lines are separating on this indicator. You'll also see we have these gray zones here. Starts at 8:00 a.m., which is the pre-market session of the New York session and ends at 11:00. This is usually where the market will sort of cool down and pick a direction. So I like to see where the New York session starts and when it starts to cool down so I can know when to expect volatility inside of these areas.

So now I want to talk about some patterns that are used in trading. You cannot use these by themselves, but I think it is important to have some understanding of the things that I've noticed as far as the development of price action and sort of how it aligns with trade ideas. You can see we have all sorts of different patterns, right? I'm just going to show you a few actual applicable things that I've noticed, and one of the biggest ones is understanding how price action develops when it's actually going to continue to make a move. There's something I call a cup versus a v-shape. So what that means is every time we get a big move up in a trend, for example, in the price ends up selling off, if the continuation looks like an immediate drop and then it's trying to reclaim that level, that's often times what I call a v-shape, in which case we have reason to believe that this will be a short-lived move and we won't necessarily as often see a continuation up in market direction. However, if we look at something like what Bitcoin is doing right now as it's approaching all-time highs, when you see a large move up, you see a more gradual selloff, and then it, and it does a shape that looks more like a u and then reattempts this high. This is one of the main differences. They can sort of give you an area where we can expect to see a larger push up. Now that doesn't mean that it's always going to happen. So in this situation, for example, on Bitcoin, we have a selloff, but then instead of it trying to reclaim it and break it immediately, we get sort of a very slow, casual break above, testing this high again. That means that the buyers maintained interest enough for it to reclaim this sort of resistance level and then eventually broke over the high, and this is sort of something that can be used on all time frames as well, like we were looking at before with the support and resistance. If we have price action bullish moving into a move and we have symmetrical lines leading, funneling the price in, we can expect if we are to see a break to the upside, we can see a continuation of the trend. The same thing is true on the opposite side. If we have price moving down to the funnel and breaks it, we can expect to see the price continue to move down. In an ascending triangle situation, right, we have a flat level that the price can't break up through. We have price action bullish leading into it. We have higher lows each time. If we are to break above this level, we could see a continuation in a push up. Same is true with a descending triangle. We have the neckline, lower highs, a break, continuation. This is sort of explaining that u-shape versus the v-shape, sometimes referred to as a cup and handle, and these are sort of referring more to consolidation. Like I said, I don't like to dive too much into shapes, cuz by themselves they're not really going to do anything, but understanding sort of the mindset as to why that happens is realistically the more important part.

All right, so now I want to quickly talk about some smart money concepts that I've been applying to my trading and my analysis. Okay, this is where the market tends to get crazy voodoo and goes into all sorts of depth, but there are a few key simple instruments that I like to apply that we've been applying to trading, and we've been seeing crazy results with, a lot of which I'm going to share with you guys on the channel in a little bit. I want to tease this really quick with you guys, using some of these concepts that I'm going to share with you right now. We have a testing group going on where we're developing a new strategy. You can see even off of this, we got Brandon nailing a 12 risk reward trade, which basically means if you're risking $100, you'd make $1,200 in profit. We got Jeremy using some of these concepts to get funded with a prop firm in 3 days, which is insane. We got 19 risk reward trades, so if you risked $100 per trade, you make $1,900, and if you risk $1,000, it'd be $19,000. Yeah, I also got a message this morning from Andrew saying, "You guys aren't going to believe this, but another NQ massive trade, 60 risk reward and still running." We're almost done with these testings, but we're going to be sharing the findings with you guys shortly, but I wanted to go over some of the applicable smart money concepts that I have. So I'm going to show you what I have on my chart. In general, first of all, in the beginning, we're talking about breaks of structure and then changes of character. So changes of character, once again being when price breaks out of a trend and changes that character, and then when it's moving in the direction of a trend, it's called a break of structure, breaking a level in the current direction. So you can add this right onto your chart and sort of customize what you want to show with LuxAlgo smart money concepts, okay? So I like to have those on just faintly, just looking at change of characters and break of structures.

Next thing that I've been using that I've noticed is hugely beneficial in technical analysis is something that you guys may or may not be familiar with called a fair value gap. Fair value gaps are basically when we have three candles in a situation like this where we have the middle candle not being overlapped by the wicks of the other two candles. So you'll see the gap in between that area is referred to as a fair value gap. These can often be times where the price will come into have a reaction off of and then continue moving in a direction. You can see that's happened several times over my chart. So pairing this with other analysis as sort of an area where price can potentially come into and then make a continuation is something that I'd like to add to my trading, and this with a bunch of other data is what we're currently using that we're already crushing it with on the private side of our trading team that I'm going to start trading and sharing with you guys more on YouTube as well, okay? But you can also turn on this indicator right here, FVG from Stefan Salmon; it'll label out all of these marks on the chart. So if you want to apply some smart money concepts to your chart, these can be good dip buy entries and exits to add and do your own testing on. I have my own criteria and sort of specifications on my fair value gaps. So, for example, you can see I'm using all of these pieces of analysis: Elliott wave, support and resistance, our Fibonacci levels, as well as position sizing to be able to take positions, be able to anticipate really key areas, be able to have those opportunities to make money on a daily basis, okay? So you can see on this chart example, I have my Elliott wave being done here. I see that I expect four could potentially come into my low area of one. We have our 61.8 retracement here as well as running into that support and resistance level. So I took a short position here. You can see price comes down, gets me out for full profit, hits perfectly off my 127.2 level before having a reaction to the upside. And even looking at a trade that I just took today, I drew my Elliott wave. I knew that I expected to get support along this level, the high of one and the low of four. I entered my position and then was able to catch a bounce and be able to make a really nice, approximately $1,300 profit in literally about 15 minutes.

I'm basically just scratching the surface of all the things that we talk about on the private side of our trading team. As promised, if you want to dive more into setting up TradingView and going over some general analysis concepts, I'm going to put the video card here. If you want to learn how to actually start trading from the foundation as far as position sizing of running trading like a business, you can check out this video right here in my playlist. If you want to watch me trading my strategy in real time, you can go to Live Crypt Trading. You can check out the link to this playlist as well to watch more videos, okay? If you want access to all the tools that I talked about here, follow me on my Instagram in the description and comment the word "tools," and I'll have an automation send all the tools out to you via DM. But I hope this was an overall well-rounded way to get you guys on the charts, understanding how I read charts and do my analysis. Don't forget to subscribe to the channel if you want to know when I put videos out. Make sure you like the video. Let me know in the comments how you like this video, but until next time, I will see you all in the next one.