Indicators and Time Frames - Intermediate Class #4

Live from Music City, Nashville, Tennessee, this is your motivational, sensational, inspirational, educational, aspirational, international, keenly awaited, highly anticipated edition of the intermediate trading module number four, brought to you by Real Life Trading. I am your humble host, boys and girls, legends and legendettes, friends from around the world, my name is Jeremy Alexander Newsom. How are each and every one of you doing on this serendipitously stupendous point in time? Ellis is fired up. Nick says it's a good time. It is indeed. Ali says, yeah. Pam says, awesome. Warren Brofit is stoked. Love it. Ladies and gentlemen, why are we doing this? Why is it free? Why have myself and my team put in about 400 hours this month into just this program? Because our mission is to enrich lives. We do that by educating the world on how to profitably, safely and consistently trade the market. Because we love people and we want to help each and every one of you. The goal of this particular module, if you're watching this live on YouTube, watching, recording on YouTube, watching it on our website, reallifetrading.com or anywhere else you might be watching it, I want all of you and each of you and any of you to understand the strengths, different time frames and indicators. Now, the reason I'm bringing up indicators in the intermediate program is because I get asked at least once a day which moving averages to use, which indicators should I use, why should I use them, how do I use them? And I'm gonna do my absolute best to clear up a lot of thoughts, opinions and viewpoints in this particular module. It's going to be epic. A little bit about me. I'm going to run 30 miles today, completing the extremely difficult calendar club. That's going to happen. It's going to be finished. I'm locking it in. Really excited about that. Very, very happy for this to be over. An extremely happy person I am. It's a really wonderful accomplishment. I'm very proud of myself. I've never achieved anything quite this hard before. Michael says, still 30 to go. Nope. I have about 15 more miles to go, give or take today. I currently do not have any tattoos. One of my life's goals potentially is to be present. Is presently to be a mayor of one of the state's capitals here in the U.S. so Nashville mayor, maybe Atlanta. Somewhere else. Raleigh, North Carolina. Possible. We will see. Memoir says Los Angeles. Well, Los Angeles is not the capital of California. That would be Sacramento. Yeah. One other little piece of information, there's a hidden candlestick in the Real Life trading logo. Do you see it? That's another little bit of a piece. Just in case you didn't. Steve says, whoa, once you see it, you can never unsee it. Yeah, talk about creativity, man. I just love so much about this company. Steve said. Did you come up with that? Of course, yeah. Mind blown, says Edward. Yes, fantastic. Oh, I love it. And again, just to reiterate, if you want some slides, text the word Newsom to one of these phone numbers and get slides from each class along with your Real Life trading custom dashboard. This is where we are presently in this particular program. Currently we are on module four, which means there's one more module to go. Can you all imagine the energy level I'm going to have in the next class when I don't have to run five marathons? Back to back to back to back to back. I can only comprehend. I mean, they could be really energetic or I'll be really tired, I'm not sure. But module five is coming up next. This is module four, Multiple time frames and indicator usage. Here we go. Something to keep in mind. And I've mentioned this a few times, and I'll continue to mention it because I think it's a very useful part of our day, week, month, year. However we trade, whenever we trade, I think this is really, really important. Everything works, just not all the time. I fully understand the sexiness and allure of indicators, especially for newer traders. If you go to YouTube, I do have videos you can type in real life trading followed by the words RSI and you'll get videos. Real life trading macd, Real life training, Bollinger bands. You'll get some of my videos on the above three. And there's so many indicators that you can use. I get it. I think they're really, really cool. The funny thing is, if you're gonna use them, you have to use them. Most people, when they use them, they only use them sometimes. The second part is there is no magic indicator. They all work. I've seen every moving app, I've seen every indicator I think so far to date, and they all work, just not all the time. And this is what I think is going to be useful. Understanding a moving average indicator strategy and really understanding the basics and the simplicity of how to use certain moving average strategies. I've literally used every moving average possible. I like. Well, I kind of say that erroneously because that would be mathematically impossible, but you guys get the point. Moving averages between 1 and 10 are very, very fast. The only ones that I've ever used in that time frame often are 8 and 10 exponential moving averages. Since we're talking about indicators, and remember when I mentioned in previous modules that my goal is to not give you a giant load of information, just to show off and teach you all kinds of stuff. I want to give you things that actually works. I want to give you strategies that are actually useful. I'm just going to cut right through the meat. Since there's no real sales pitch in these presentations at all and they're entirely free, why worry? Well, I'm just going to get right to the point. You can pretty much use any moving average on any time frame and you will find strategies that work on any market. I'll say that again. You can pretty much use any moving average on any time frame and you will find strategies that work in any market. The goal is to continuously follow the rules and plans that you create for those moving averages. I have practiced pretty much with every number between 20 and 80. If you have two moving averages, you can play a moving average cross generally a moving average wax as a support resistance or a directional tool to help you understand direction. And this is the fun part of the bullet. Strategies will not make you money. They will give you purpose, focus, mental willpower, discipline, controlling your risk, collecting and protecting patience. That's how you make money in the market. Every strategy works just on all the time. And again to reiterate, when you have a strategy, if you do the right strategy at the wrong time, you can lose money. If you use the wrong strategy at the right time, you can lose money. Strategies are not the only thing that's going to help you money. They are a small, very small tool because you can just simply buy long whatever instrument you're playing. And that's your strategy. That's an approach. So you could buy futures, you could buy forex, you could buy options, you can buy stock. Your real objective, your real strategy is just buying that instrument. You're not really doing anything other than that. From there, you have a strategy and a plan. A plan is what you do when you do it and why you do it. And then you follow it as frequently as you possibly are allowed to and are able to. Now, if you want to see me do this, I talked about this in the last module. If you want to see me get thrown an absolute random moving average on a random stock on an entirely random time frame, you're going to want to pop over to that course I was mentioning last night, reallifetraining.com and click on the back trading marathon program. Because that's when I did a 64 exponential moving average on an 8 minute time frame on Roku. And that was because people chose it for me. I didn't even pick it. They all picked it. Everything was decided by the person. I. I randomly picked everything as absolutely random as I could. And it was a really wild, mind blowing, shocking experience. Really, really cool. So if you want to see me do that, that's where you can see me do that. There are a lot of different moving averages. These are just some of them that I went through and picked at one point in time. Smooth moving average, exponential moving average, simple moving average. The least squares moving average, the hull moving average, the Madrid moving average, the adaptive moving average, triangular moving average, Wilder's moving average, weighted moving average. That's just some of them. That's not at all. That's just a few. Steve says what model do you choose for these pictures? I know. Oh, man. Poor, poor dude. Jason says that was the last retreat. Yep, that was the last one. Lottie says copyright free. Exactly. No royalties needed. All you have to do is hide all the ladies and all the kids and the dogs so that that ginormous head doesn't scare anyone away. When we're talking about moving averages, there's tons. At some point, it's like a restaurant. You just have to pick one and then you have to stay there and then you have to practice it. And then you have to eat some appetizers and find out if the artichoke dip is really good. And then look through the menu and try to determine are you going to get the eggplant parmesan or are you going to get the baked ziti? And if you're going to get the baked ziti, are going to have chicken, shrimp, or both. What kind of sides you gonna get? Are you gonna have a dessert? Maybe a little bit of wine? What kind of wine? You gotta pick something at some point, my friends. And you do that in day to day life all the time. So it's the same with stocks, it's the same with indicators, it's the same with forex futures, cryptocurrencies, Pork bellies. You gotta pick one. Lottie says I want to use your favorite. Okay, stay tuned. Let's just go look at some examples. Type in A4. If you want to see me use some of those averages that we just talked about on random timeframes and random markets and see how they play out. All right, cool. Getting a lot of four. So here we go. For my traders that live in India, this is the Nifty 50 index and I picked a 64 hull moving average on a two hour chart. Type in a six if you feel like that's sufficiently random. 64 whole moving average on a two hour Chart. Okay, so if we're looking at this particular chart and all we did, the only thing we did was go long when the stock is above it, go short when the stock is below it. How would that have worked? Let's go practice it. So if we are long in here, we're long the whole time we're making money. Looks good. So we get stopped out here of our bullish entry and then we go bearish because we're below the moving average. And does that work well, ladies and gentlemen? Yes or no answers. Yeah, sure does. Nice little bear trend looks really good. Cool, cool. So that works well. And then we go bullish when it gets above the 64 hole moving average. Does that work out well? Yeah. Could have made some money in there. Depends. But it worked. Our pretty alright right. Then eventually breaks down below the moving average and then boom, you go bearish. Real nice bearish move there. Very pretty. But again, if you're following the moving average strategy, if you're just getting in when it crosses above and below when it bearishness below, you're getting in long right here. And you had an immediate loser. Now would you have taken that trade? I don't know, but you should have because that's the strategy. So you lose right there, you lose right there. You lose right there, you lose right there for the bulls because it's crossing above and you might have been able to take some winners, maybe snag some bear winners potentially. But then looky, looky, we're able to get in bullish here and we've never crossed the moving average. Bearish again for a little bit you probably could have won a little bit of money. So that would have worked out nicely. And then look at this. Bang. Gets below the moving average. You're shorting. Definitely made some good money there. And then again here. Maybe you win, maybe you lose. It starts to get a little choppy for a while. You get whipsawed, you get punched around, you get beat up, you get Mike Tysons right in the throat. And then at some point you catch a nice winner when it breaks above here. And if you were able to hold all of this potentially you would have made all that you just lost back then. You'd have been able to catch a bearish trade when it breaks below the moving average and you could have made some nice money. There. And then when it broke above the moving average, bullish again. You could have made some nice money on the bull train right there. It would have gotten a little weird in here. And then boom, back to being bullish. Now does that strategy work? Totally. Even in hindsight, I can see sometimes where it works, not in hindsight. We can see sometimes where it works in this environment, we get to determine how do I like it, what do I want to do with it from here? What you can do is once you've stared at the screen a little bit, once you begin to get a general idea of what it's doing, and once you've practiced it some, you can start to go, okay, now I'm going to build a plan. And a plan is comprises some rules. And your plan could be, if I get in bearish and it starts working immediately, I don't use the moving average as a pure simple stop, loss or stop component. I trail the candles. That could be a plan. So if you get embarrassed here, instead of getting out when it crosses the moving average there, maybe you got out a little bit earlier over here somewhere when it gapped up or something. Same thing over here, right. When you got embarrassed since you had this nice obvious pointed down angle. I mean, it's just yelling at you to not be bullish. It's literally going lower. Instead of getting in bullish on these breakouts and getting it really weird. You're just trailing your stop with each pivot that comes in and you're staying in the whole time. That's what is called a plan. A strategy is this is what I do and when. All right, cool. Now you implement some rules, some regulations. What do you do, when do you do it, why do you do it, where do you do it, all that kind of good stuff. Okay. I think it's a sufficient point. Let's go to a random stock on the Australian market. This is a stock called after pay. This is the Australian market. So what I did is I took a 23 weighted moving average and I use a 15 minute chart. All right, cool. So what strategy could we use here? Well, the one that jumps out to me initially is if the stock gaps down really far away from moving average, look to trade it back up into the moving average. That's the one that jumps out at me, right? Big gap down here, big gap down here. And both of those situations pulled into the moving average. What about a big gap up? Well, this was a big gap up and this was a big gap up. Both of those pulled back into the moving Average. This one, this was a gap up. Did not pull back into moving average at all. Brohemian Rhapsody says, is this a mean reversion? Looks kind of like it, doesn't it? Right? I mean, you have this gap up right here and it eventually pulls back into the moving average. So this could be some type of mean reversion strategy if you like fades or if you're kind of drawn to those or ready for this one. What if you just looked for hammer candles off of the moving average that were in the direction of the trend? What if that's all you did? We talked about hammers not too long ago. There's a hammer there, There's a hammer there, There's a hammer there. There's a hammer there. There's a hammer there. There's a hammer there. There's a hammer there that's not below the moving average or above the moving average. Sorry. There's some type of interesting hammer candle there. There's one there. Okay, now, why did we not trade this hammer that I'm pointing with the blue arrow? Why would we not trade that one? Well, again, it wasn't above the moving average. It was below the moving average. So we wouldn't have played it. It's not in the plan. It's now not part of the rules that we would have built. And will this plan work? And the answer is sure. Will it work all the time? No. What if you only played this particular stock if it was above this particular moving average on this particular time frame with a hammer and you got some type of alert or you got some type of signal or whatever, or you just pulled up the chart at the end of the day and you looked for your hammers. Do you think this could work? This exact strategy could work on any chart, any company, any currency, any time frame. The answer is yes, it absolutely could. Where you pull up a 23 weighted moving average and you simply pull into the 15 minute chart, you try to find a really good trend, you just scan through a bunch of stocks, look for a good hammer, and boom. Play that hammer. By the way, folks, I just get right there. I just gave you a strategy that you can use for the rest of your life. And it'll work sometimes. And it won't work sometimes. I have companies and people reach out to me very frequently. I can get paid absorbent fees to help people create strategies. Manha says, how do you get the 23 weight average, my friend? I hope by now you know that it was just a random. Totally just picked it out of Thin air and put it on the chart. That's the point of this entire exercise. This whole. I just picked out a thin air. It's not custom. No, man. I just. I was like, all right, what are two numbers that go together? Boom. Boom. Could it be 32? Could be 37. Could it be 69, 71, 19, 24? You just pick random numbers of thin air and go for it. Kelly says when you have too many indicators, that's where it gets confusing. Exactly. You gotta have a pretty basic plan. This is what I do and this is why. Yep. Keep it simple. All right, so this is another moving average that actually worked really well. I was back trading this one randomly one night as I was building this slide presentation for about nine minutes or so. I don't even know how to pronounce this moving average. I'm not even going to try. Crude futures. 5 minute chart 39. Alma. The good old Alma moving average. Type in a 7 if you can already see this. This does work quite well, actually. Yeah, it really does. I mean, this is beautiful. It's a beautiful moving average on a beautiful time frame. Will it work this exact way with currencies? I don't know. Will it work this way with stocks? I don't know. I haven't tried it. Could it? Yeah, probably. Will it definitely. All the time? No. Sometimes. Mm. Now, can you start blending some of the things we've learned in this particular module for free already together. And go. Yeah. I think we could have played this thing bullish. Look at this ginormous bullish candle. Where would you have entered? Any guesses? Oh, yeah, we talked about that recently. Halfway into the candle. Where is halfway into the candle? Oh, weird. Right on top of that moving average. How strange would have been a good place to pick up almost 40, 50 ticks, right? That's a little 50% retracement. What would you call this pattern up here? Any guesses? A little bit of a double top, right? Higher. High gets rejected, closes below the neckline. Retest gets below the moving average. You're going short. Picking up a large win right there. Large Larg Inc. Paul says bullish trades above, bearish below. Follow the trend. Bang. There you go, folks. You're welcome. That's the strategy. Will it work? Definitely. Will it work all the time? Nope. Look at this beautiful double bottom. Beautiful. And you could have gotten some position off of that. Why? Or how would you have known to sell? And I would theorize that you might have known to sell there because it made a new high relative to Recent resistance. I'll draw that recent resistance for you here on the red with a red line. So that red lines the previous support resistance area. So you made a new high. What are some other reasons? Bunch of white candles in a row. Yep. You had one, two, three, four white cows in a row. Number two. Number three. You were profitable. Right. That's another reason. So you're profitable on the trade. And again, you might have ended up losing on that trade. You could have lost. Small one. Small. I don't know. What about this double bottom right here? Type in, type in a 7 if you saw this one. That double bottom is what dreams are made out of. If you trade futures. You know how big of a move that is. I mean, look how gorgeous that is. Jason, look at this double bottom. Bang, bang, bang, bang. Four white candles in a row. Close about the neckline. It retests the neckline. You're getting it on that candle. Stop below that candle. Rip City, many dollars. Kelly says. I wish someone told me this years ago. Go. Save me a lot of money and time. I know, I know. There you go. You now have it. And the cool part is, Kelly, you get to go tell other people. Yeah. We're here to change the trading game. Type in a 17. If you also saw a much larger double bottom on a fractal right there. Bang, bang, bang, bang. Neckline break. Pullback retest. It's too fun. Small double bottom there that you probably would have missed. Double bottom there. That was perfect. Massive double bottom right there. Break out of the neckline. Retest the neckline. Retest the neckline. Short term retest, long term retest. Oh, come on. Trades up to previous resistance. Yes, please. Give it to me, give it to me. I'm fired up. This is great. We're doing good. Whoa. That was fast. So someone says, Jeremy, what's one of your favorites? One of my favorites randomly is the 105 EMA on a 30 minute chart. Any instrument you want to trade. This is a 105EMA on a 30 minute chart on Bitcoin. Look how well that works. I mean, wow. And it works wonders on Tesla. It works wonders on all kinds of positions. Jason says so many people used this strategy this month and made tons of money. Yeah, we killed it out there. RLT team, full disclosure just crushed it. In fact, I'll bring it over here really quick. Just this, just a fast, super fast sample pulled purely at random. See Angela, 35 Rs for the month, which is just insane. Richard, 11 Rs on the month. Scott McKay, 1.2 Rs. Carolyn, 2.1 Rs. Ariel, 5.7 R. Stephen King, 8.4 Rs. Just a perfectly random. I scrolled up or scrolled down. Sam, 5.2 R is my first month with you. Find people. I love it. Alex Hill, 64 Rs. J set, 19 Rs. That's huge. That is life changing money, man. Lottie says, are you gonna crush May, Man? There's two things I do really well and one of them is crush me. I don't know what the other one is, but. Pa says, how do you calculate the Rs? Let me send you. I'll have Jason send you an article and videos and courses and all kinds of stuff, my friend. Real easy stuff, super simple. All right, now again, you asked me. This is one of my favorite. This is, this is one of my favorite ones right here. This moving average on this time frame. Really, really classic. What is the point of all this? Why bring all this up? Why talk about all this? Don't stress about what you're missing out on because you're missing out on stuff. Always. Okay? You are definitely missing out on things. There are more money making opportunities every day in the stock market then you can take advantage of in a lifetime. Do not focus on all the shiny toys and objects out there. Stop chasing all the cool programs and indicators. You are here now, this is free. And this material can, will and should change your life. In trading, simplicity always wins. It's easier for your brain, or at least for my brain, because my brain's like the size of a peanut. It's a tiny little brain. It's powerful, alright? It's easier if you just keep it simple. Now here's the thing. I know you all know this, but every single March is kids month at my company. And I go teach kids this stuff and they pick up real fast. Therefore, if kids can learn it, you can learn it. If kids can do this, you can do this. And what you end up doing at some point is you start adding, tweaking and adjusting and you can flex when you start making your gains. Okay? That's the point. The point of all this is once you kind of have a strategy and a process in place and you start making money and you start actually growing your account, growing your portfolio, paying off debts, getting closer to retirement, getting closer to quitting, quitting your job, getting closer to buying your dream house, getting closer to traveling first class to Australia for three weeks with you and your family, whatever it is that you want to do. There is an opportunity to do it. It is possible. The money is there, it's waiting for you. We simply have to mitigate risk, follow the process, go through the steps. And start making it happen. Kelly says, what strategy are you using for the 105 EMA? Bullish above, bearish below. There you go. How easy is that, Kelly? Yep. Jason says, honestly the biggest reason trading fails for me is I start taking too many trades or trades that don't follow my plan. Yep, exactly. Exactly. Amy Blood says I was able to quit my full time job because of rlt. You go rockstar and then Amy has just become an absolute behemoth out there doing her thing, making dreams come true. It's phenomenal. John says, do you find however, lower time frames like 21 EMA works better in a 50 minute but too slow in higher time frames like the weekly. If you drop the EMA to 8 it might follow closer to that average. Can you comment? Thanks. I can comment. And it does work all the time, just not always. So if you have a fast moving average, it can work well on smaller time frames, but it can also work very well on big time frames. The big timeframes. John is just going to take you longer to take those trades because they're bigger time frames. So if you're using an 8 EMA on a monthly chart, you're going to have to wait how many months to get an updated piece of information. You know like if you're using a 21 week moving average, you're going to have to wait 21 weeks for it to really start changing, flexing and adjusting to even get created. I mean you're gonna have to wait almost a half a year for the moving average to be even built or on the screen. So yeah, the longer term timeframes I use longer term moving averages and the shorter term timeframes I generally use shorter term moving averages. By the way, thank you for everyone who got a chance to follow us on social media. I appreciate it. For those who haven't, if you want to, you still can. You all know how the process works. So here's what we want to do. Let's go practice a strategy. Megan that I know that works very well. Kelly, you game for this? John, I'll give you one. I'm going to give you a strategy and we're going to go practice it on whatever you guys want to practice it on. Use a 30 minute chart, use two moving averages. Bullish when you're above, bearish when you're below and Be flexible in the middle or avoid trading it all together. Sound good? So what do we want to do? Let's go look at some. This is bitcoin. And again, why do I keep bringing up bitcoin? Just because a lot of people don't think it follows any rules at all. Oh, it does. So again, when the moving averages cross, when you're above them, be bullish. So are you bullish over here? The answer is yes, right? You can see that you're above the averages. It kind of works a little bit some ways, some not really so much. And then you get a moving average cross right here you are below the moving averages. Could you have made some short money on bitcoin during that rollover? Yes or no? And the answer is absolutely yes. You could have. Okay. How would you have known to exit? Can you bring that up for me? How would we have known to exit this position if we were in bearish? Because we talked about this. In fact, we talked about it in the last module. How would you have known? Now, you could have waited for the moving average to cross, but that would have been dumb because you'd have lost all your money. Ah, volume. Someone was paying attention. Very well done. See that giant volume spike? Most people think this is the breakout, it's going lower. But you actually went through an actual program who's not trying to sell you a package and actually wants to teach you how to trade. Now you know the right way to do it and that's where you're exiting. Plus, it's a new low, right? Check that out. It's a brand new low. So you broke through support, you made a new low. If you're shorting, ladies and gentlemen, you sell high. And you do what? Buy low. So if you're selling high and buying low, my friends, is that a low area? Yes or no? Did you sell high and buy low? You did. So congratulations, you won on that trade. Nicely done. And then a few hours later, bang, this candle comes in. You get the moving average cross. Now you're bullish. And now you can play a nice little bullish gains, right? Big move, big resistance. Buy the pullback of old resistance, new support. And you're probably playing that one bullish a little bit over here. Are you locking in some profit? Yes or no? Yes, you are. Why are you locking in profit? Because it made a higher high. Is this starting to sink in yet? Now, did you have to sell all of it? No. You can trim and trail. How much should you sell up to? You put in your rules. Put in your plan, practice it back, trade it, find out how much it works, find out what you like, Find out how active you want to be, how aggressive you want to be. This was a span of over 3 days. Jason knows I trade bitcoin very frequently. I wonder what strategy I use to trade bitcoin with. Hmm, I wonder. I wish Jeremy would tell me. What about when this happens? Right. Moving average cross. Do you know what to do? You're down below the moving averages. Could be bearish. Get embarrassed somewhere. Is this a new low relative to the previous low? Yes, it is. Are you able to lock in some profit there? Yes, you can. Beautiful. Trade sideways, probably get trailed out. Then it crosses bullish. Could you have been bullish? Yes, you could. You'd have been bullish? Absolutely. Now, are you buying on that volume spike? Because someone was asked me earlier, our green and volume, green and red. Are you buying on that spike? No, that's you selling. That's why all the volume is there. That's not where you buy. That's all the noobs buying the breakout. But not you. You're now smart money. How cool, huh? I mean, again, it's. It's not insanely hard. And the thing is, this trend never broke down on bitcoin. Catherine says. Is that the 8 and the 10? No, ma', am, not even close. We just talked about that in the most recent slides. So bitcoin has stayed in that trend since. We're still in it. Bitcoin went from 7,500 to like 9,000 and some change minutes ago, you know, so beautiful, beautiful stuff. Okay, so that works on a random cryptocurrency that no one really understands. Let's go look at Roku. If you're above the moving averages, be bullish. If you're below them, be bearish. And if you're in the middle, you can avoid it if you want to, My friends, type in 9 into the chat pane. If you could just based on this chart, you can see where you could be bullish, where you could be bearish, and where you could decide what you want to do. All up in here, you get to make a decision. Do you do something or nothing at all? Do you do something or nothing at all? Do you do something or nothing at all? Wallets in here. Do you do something or nothing at all? It's your. Your call. And then I'll circle in green all the places that you would have been bullish, for sure. Bullish, bullish, bullish, bullish, bullish, bullish. Very, very bullish. Very, very bullish. And I'll circle the places that you'd be bearish, bearish, bearish, bearish. Okay, now at least one or two or two of the three bearish trades, but they've worked great. Catherine says, which two moving averages are these? This is the 20 exponential moving average and the 105 exponential moving average. Kelly says, will these moving averages work on a three or ten minute time frame? I'll let you guys answer, Kelly. So in the red circles, if you have been bearish, it may or may not have really worked that great. Again, in the pink circles is up to you. What if you just didn't do anything? That's fine. If you did absolutely nothing in the pink circles, you didn't lose. The green circles. There have been some trades ready to one on. There have been some trades you would lost on. There have been some trades you'd have broke even on. But there definitely, definitely could have been a few trades where you were able to win big. And here's the cool part is what I have the ability to do at this point in my career is I can pull up any chart, scan through them at any point in time, see a pattern that I like, take that pattern, make money or lose money, and then move on. For example, right here, type in a 19 if you can see that gorgeous, ridiculously perfect hammer candle pattern. And if I'm doing my scam and I'm noticing that trade setup, could I have just said, okay, there's my hammer, played that hammer, taken that trade, made some money, sold it the new high, and then had been done for the day or the week or the whatever. And the answer is sure. So I can work theoretically as much or as hard or as little as I really want to. Once I get the practice and the implementation down, I go work and do whatever I want to go do. I go, whatever you want to do, whatever your life looks like when you're phenomenally wealthy, whatever you want to achieve and accomplish, you can go do those things and then come in, look for your patterns and move on, Right? Pretty cool. Pretty sweet stuff. Is this a magical indicator? Nope. No, it is not. Not at all. These are just two moving averages on a time frame. That's it. That is it. Here's another one. This is the Japanese yen dollar. So the Japanese yen dollar. Check out these beautiful trends. So on this time frame, if it's above it, you can be bearish. Sorry, if it's below it, you're bearish. Above it, you're bullish. So are you going bullish somewhere in here? Probably. Did you lose? Almost certainly. And that's okay. Over here it's bullish. Would you have won? Absolutely. Now, do you have to stick to a 30 minute time frame? What do you think, ladies and gentlemen? You do your analysis on the 30 minute chart. Is that the only target you can, you can. Is that the only time frame you're allowed to trade? And the answer of course is no. So based on that, would you be able to then of course create some rules and some plans on what timeframes you take, how long you hold them, what charts you look at, why you get in? The answer is of course, absolutely. You have your 30 minute chart. It gives you the direction, it gives you the idea, it gives you the trend, it gives you whatever it is that you're looking for. It helps you determine what you're doing and then you can play it. I love it. What questions do you have for me so far? My dear friends? Derek says, you are the man. Thank you, sir, I really appreciate that. Catherine says that's a nice M and a nice W. Absolutely. Yep. Totally agree. So what Kathryn's mentioning is she can see those double bottoms and double top patterns in this particular time frame. And again, even those patterns, are they gonna work always? No. Can they work often? Absolutely. Nice. John says when trade lower time frames win trade, lower time frame is much faster. 30 minutes. So you are scalping. No, you're not scalping, John. Scalping. I don't like the term scalping. You're just trading quickly. If you go lower than a 30 minute chart, you're looking at a five minute chart. There's still numerous five minute candles throughout the day. So you could take a five minute trade and it might last two hours. It's definitely not a scalp. Definitely not a scalp. So the answer is no. Richie says, I notice you switch between SMA and EMA a lot in your charts. What's the reason again? You can pick whichever moving averages you want. You can use SMAs, you can use EMAs. I use both. I can use both. There's no particular reason to use either one. You just kind of have to pick. It's kinda like me saying, Richie, what do you prefer? Ford or General Motors? Jack Daniels or Evan Williams just got a pick. Megan says, what is the difference between the two? The difference is EMA stands for exponential moving average, AKA different math. That's really it. SMA stands for, you probably guessed it, simple moving average. And simple moving average is a simple average. So if you go back to Third grade. How do you take the average of something? Right? Add everything up, divide by whatever you're trying to get. So if you have a 30 SMA, you add up everything that you're trying to calculate, divide by 30. So if it's a daily chart, you're taking the last 30 days, closing prices, you divide by 30 and there you go. If it's a hundred, simple moving average, you take all the numbers, add them all together, divide by 100. Exponential just has a little bit of a different math. But again, remember, how many different moving averages are there? Thousands. Those are just two. Those are just two. So the calculation for SMA is much easier than ema. That is for sure. Yep, yep, yep. All right. Richie says he chooses Ford over General Motors. Ew, gross. John says moving averages are lagging. They are, but they're the closest things to non lagging, John, because they literally are built off price. So they will follow price. So as soon as the price gets printed, the moving averages will update to reflect it because they are calculating the price. So yeah, man, I mean, the point of this program is all moving averages, all indicators, everything is lagging. You're 100% correct. You are massively accurate and totally specifically on point. John says, I heard some traders use the D ema. Absolutely, John. In fact, there's over a thousand different moving averages and I know traders who use every single one of them. Yeah, so you're 100% right, man. So many different moving averages out there. Mark says Elliott Wave and GAN are leading. They theoretically are, but they're not indicators. Those are potential projections, just like fibs. Fibs is not a leading indicator. That's a projection that you get to create dependent and decide and determine on how you create it. John says Ishimoko is leading. So they say. I say, I disagree. It's all in the same category. It's all indicators. I know exactly how to use the cloud. I've used the cloud many times. Sometimes it works, sometimes it doesn't. MacD same thing. Russ has thoughts on View app. I like V wap. V WAP is a good moving average. It is a. Sorry. Well, it is technically moving average. I like it. It's useful. If you want on your chart, feel free to have it on your chart. There are many benefits to V wap. I have been practicing a lot with different formations and creations and calculations on the volume, weight, average price. I've seen it work so many times. I've seen it not work so many times. I've seen stocks pull back to the Volume weight average price. I've seen the stock not pull back to the volume weight average price. I've seen the volume weight average price act as a great support. I've seen it not act as a great support. I've seen act as a great resistance. I've seen it not act as great resistance. It's the same thing, man. I'm not saying it you can't make money trading a V wap. I'm just saying it's the same as everything else. John says view app anchor does it really work? Sure, it works extremely well. How often, John? Just not all the time. That's it guys. That is it. So all we have to do is then start building some plans and building some rules. When do you trade it? When do you get in? Why? And then you just do it all the time. When you see your pattern, you just do it all the time. So you remove variables. In trading we have to remove variables. That's one of the things I do when I work with a trader or an individual or a company and go through coaching with them and help them with anything. It doesn't matter if it's trading or life or business. I try to remove variables so that we can create consistency. Because if you consistently do something all the time, you will get better at it. John says so the key is money management. Yes sir. That is the key. That's the secret sauce, my friend. That's why I teach risk and money management in the beginners program class number two. Because let's be honest, if I start out the beginner's program class number one with risk management money management, nobody would listen to the rest. All the people who out there would probably drop off. I don't do this one thing. Once we know the trend of something, it becomes much easier to trade. Remember we discussed in module three Noobs love going against the trend. If you want to pick the bottoms of downtrends and the top of uptrends, why don't you do it after you made a few hundred thousand dollars from the market? That's what I like to say. I do oftentimes in my swing trading room I will try to pick the bottom of some things and I'll try to pick the bot the top of some things. And sometimes I get it right. But I've done that. I've made my few hundred thousand dollars in the stock market maybe a smidge more. I've done extremely well. So once you do really really well, then you can start doing the really wild things. You can start really Stretching yourself, flexing, doing some crazy things, learning wild strategies, doing some really weird indicators like moon phases. You can start doing anything that you want. So in the very next module I'll talk a little bit more about how trends can change and how it occurs and things of that nature. But that's all I'm gonna try to get at. Right, that's really it. So how about we do this for the next 30 minutes? How about we do some back trading? What do you guys think? 7 to 4? If you guys would like to do that. Yeah. All right, let's get it. Okay, so what we're gonna do is I'm gonna try my absolute best. Keep this as random as possible. Like normal. We will use the 20 EMA and the 105 EMA on the 30 minute chart. But on what I do not know. And when I'm not sure either. The first person type into the chat pane will get it. What are we looking at? Stocks, options, cryptos, futures, currency. What are we, what are we doing at first? Lot A says we're looking at stocks. Okay, we're gonna look at stocks. Next person type in a month for me, Alex, is January. All right, we're gonna look at January. Done. Next type in the year, this year, last year or the year before. All right, first person wrote in was 2018. So I'm pretty sure I can go back to 2018. Got it. Next, pick the stock. Netflix. Okay, here we go. Netflix, 30 minute charts. Give me a moment. Do you guys feel that's sufficiently random? All right, 2018. And what I'll do is go back a little bit farther than January, just so I really have no idea what happened. So that's going to be 17 then 12, 24. I think I can do this. Pretty sure we can go back to 2017. There we go. Alright, so I'm start here. So I haven't seen anything else forward and I'm not looking any other screens or charts on Netflix. You'll just have to trust me. Or I mean you can ask Matt or I can turn my webcam on. I don't really care. Let's pull up the 30 minute. Okay, so the red line is the 20. The purple line is the 105. What is the trend? All right, I'll zoom out, draw support resistance. And I already know where I'm gonna go. Bullish. Okay, trend is bullish. So my friend Tom, I'm gonna be taking this trade. Any guests. Remind me how will I take this trade? Anyone? Bullish? That is right. Bingo. Now I see the potential of a double top. So can I short it here, please? Am I allowed to short it? No. Now, again, at some point, can you. And again, like I mentioned, yes. As you start becoming more fluid, you start understanding a stock, you start getting its history doesn't have to be a stock. It could be a currency. It could be a crypto, it could be a futures contract, could be whatever. You can start realizing and seeing and sensing certain things and looking at chart patterns and playing it aggressively, I get it. But if you want to keep a really rigid plan, and I missed out on probably $19,000 today because I was focusing on a really rigid plan, not playing Tesla. John says, why did you not touch the wicks? I would have to disagree, John. This line is literally drawn to the wicks, and so is this one and this one. So I would have to say I did draw the wicks. Steve says, jeremy, you have Two moving averages. EMA 105 close and EMA 105. That is correct, because this one's on a larger time frame. So if you want, I can just. They're both the exact same price because they're. It's a. It's a script. So if you want, I'll just take it off just to stop confusion. So there you go. John says I'm referring to a big black candle going down. That is correct, John. So if you drew the line including the wick on that, would you get all the candles? So if you're drawing that wick, you'd have to do this, and you get one point of touch. Okay. You wouldn't get two. You get one with that angle. You literally get one. Unless you do this as the exact high. And that doesn't really make that much sense. But we'll do both. I'll draw both for you, John, just to make you happy. How about that? I aim to please. So I'll do all three just so that you smile. Okay, so we have that line, and I'll draw this line down. This is. We'll call this the John trend line right here. I'll make that blue for John. All right. Steve says, I just lulled. Yes, the good old lull. All right, perfect. So now we have three trend lines, and we're gonna look at playing it bullish. Check out how easy my job is now. I'm gonna look to go bullish down here. Why am I going bullish down there? Who can tell me? Is it a mystery? Is it a surprise? Is it a massive shock? Because that's at the moving average, that's at the support. That's the pullback. Cool. All right, So here we go. Right now, we're in the middle of the moving averages. We came up and hit some trend lines. We're hitting some trend lines. We're chilling. We're waiting. We're waiting. We're at a resistance. So let me go ahead and kind of draw some resistance pop over here. So now I'm have to draw a resistance line. So now all three of these trend lines are now void. So we've broken above all of them. So this trend is a very strong bullish trend. We're at a resistance. We have a really big bullish candle that came in right here. Would I be allowed, ladies and gentlemen, since we're already bullish, would I be allowed to buy it if it came back down there? And the answer is yes, because the trend is already bullish. Trends already bullish. We already know the trends. Bullish. We already know. We're out a little bit of resistance. I can't buy here at 212, so I'm gonna either buy on a pullback or if it does make a new high, I'm gonna buy on that pullback. Either way, I'm buying on a pullback, and I know the directions. Bullish. Secondly, if I know a lot about options, could I implement some option strategies down here? Could I do some option strategies down here that help me make money regardless of what the stock does? Maybe some credit spreads, Maybe some bullpen spreads, Maybe some foot sales? Yeah, I won't get into that right now, but let's just say I could. All right, next. Here we go. We're hanging out. We're hanging out. Nice resistance. We're pulling back. Boom. Nice gap. Gorgeous gap. Beautiful gap. Right above that resistance. Epic volume. Okay, so it seems to me like we're gonna try to get in on the pullback of that candle about halfway in the candle with a stop right there below the 20 moving average. Is that feasible? Is that possible? The answer is yes. What if we lose on the trade? We probably will. What if we win on the trade? How cool would that be? And secondly, remember, I'm still gonna be throwing down some credit spreads down here, some option strategies. So as long as I go into the green box, I'll also win down there as well. Hmm. Kelly says, but you could get assigned with credit spreads. But you could get assigned with credit spreads. You could. You're 100% correct. Yep. All right, next candle. Oh, Betsy, Tim, Mary, sugar cookies, and snapdragons man, that was close. Trevor says ham jam. I think we need to remake that song. Black Betty. Oh, Black Betty. Hammer Jam. Oh, Black Betty. Hammer Jam. Black Betty in the Hammer Jam. Man, that was so close. So we'll do one of two things. What I'll say is let's just pretend that we were not even here. Not here. So if we weren't here, we saw the first hour, or, sorry, the first 30 minutes of the market open, we're not going to do anything, right? We would just wait. If I was around the market and watching this trade, anytime I miss a trade by pennies, I always have to adjust. That's just one of the things that I do. So that means I would lower my entry probably down to here at this point. Because if we take out that lower shadow, we're most likely going to go a little bit lower. And then if I lower my entry, I'm a lower my stop. Because that's really the spot that I want to get. Is that pullback into that 50% level. Now, again, that's just saying if I was here, if I'm watching it, if I am here, and again, if I'm not, that's okay. But then you have a stop loss. Again, this would be the stop loss. And we'll just see how both play out. Because what are we doing right now? Right now, we are learning in a simulated environment. We're not spending any money. We're creating a plan. We're starting to build some rules, and we're starting to get an idea of what's going to happen. So that's pretty much it. All right, so let's just see what happens. Let's start building some plans. Okay. What continuation pattern are we starting to form? Could be a flag pattern. Looks a little bit more like a pennant pattern, though. Talked about this yesterday. Looks a little bit more like a pennant. But again, mashed potato dance. Right? We could call it whatever we want. It doesn't matter. We could call that the Jeremy Newsom is beautiful pattern. I mean, if you guys want to make me feel better about myself, we could call that. We could say that. But no one's gonna say that. Just kidding. Next candle hanging out, right? Next candle, we're still hanging out. Next candle, we're slanging out exchange. So we're consolidating. We're definitely building pressure. Steve says accumulation. Nope, wouldn't be an accumulation because it's at a top. Right. Accumulation is down here. This is a distribution. But again, mashed potato dance. Who cares? Doesn't matter. You know that it's trading sideways and then people are getting in and getting out and moving stuff around, right? So again, names are relevant. The name is irrelevante. That sounds like a cool name. Irrelevante. All right, next candle is not doing anything. Next candles are doing it. Look at the stair step pattern. Wow, this is nice. Yes, please sign me up. If we break out of this thing, man, I gotta get, I gotta get in on that. So now I would set up a little bit of a breakout trade. I like that compression. I like the consolidation. I like the sideways move. All right, so now next candle. Still nothing. Next candle, still nothing. Next candle. Still nothing. Oh my gosh. Wow, wow, wow. This is gonna be very fun team. Now again, we could gap down or we could gap up tomorrow, I don't know. But I will say this. If I was day trading this, this would be my only stock. I'll be watching the next day. Something fun is gonna happen next. All right, so this was a gap. So what this is, ladies and gentlemen, this is a gap for that day, right? This is your high wave candle. This is the open. So now I know exactly how to play this setup. Right now I set up my entry above the high wave candle. This gets. This gets canceled because now it's a new day, right? I mentioned you would have come back and you know, your day would have been over. So now this is the setup right here. So folks, very important to understand. Do we know this trades gonna work? Answer is no idea, no clue. Do we know the direction though? Yes, we do. Knowing the direction is pretty cool. John says, but why go bullish? Let's see. Does this, does this help, John? Does that help? He says yes. All right, cool. Perfect. That's why we're going bullish. So now trend is looking good. You got a high wave candle. Let's see two 1802 by two 1580. So we would calculate our our shares based on our risk unit. Let's go ahead and do that. With a $500 risk unit, how many shares would it be in 218. Oops, don't want to change that. $500 risk unit. How many shares go for it? Two. 1802 minus 215 73. That's 229. So 229. And we'll take 500. We'll divide it by 229. 500 divided by 229. We're going to come up with 218. So we could do 218. We could do 225. Somewhere in that range, if you want. If you want to do like a. Kind of like an even block number or something. But that would be our one risk unit. That's how we would know exactly how many shares to calculate. So we have a risk in place. Next candle, bang. I should almost just drop the microphone right now. Steve says, get your credit cards out, boys. Yeah. Jason said, this was not planned. Paul said, that's brilliant. No, it wasn't planned. You guys chose. I didn't do anything. All I'm doing is looking at the trade. We still don't know if it's gonna work, by the way. I mean, it's. It's kind of working a little bit now. What if it doesn't? I don't know. Let's say we want to trade this up to here. Let's say this is a target. Oh, no, let's just say this is another target on this trade. Ladies and gentlemen, that is over $500 for very little work on my part. What do you guys think? How awesome is that? Random company, random time frame, Totally random date. You guys picked it. David says, how'd you get the 218 price again? Because it was above the high wave candle. We talked about that in module one of this program. Module one. Kelly says, so even you're far away from the mean, you can still be bullish. Well, that's the trend, right, Kelly? Trend is bullish. Kelly says, yes. Well, there you go. That answers your question. John says, can we look left? There's left John. Nothing there. Civil. Says, that's over $400 an hour. Mm. That's a good rate of return. I like it. Also, free my credit spread fans. Guess all my cred spreads working out down here. Credit spreads me working out pretty good. Let's just see what happens. Let's just keep playing, huh? Not a bad exit. We could have gotten a little bit more. We could have had a partial. It gapped up the next day. Just keep playing it for a little bit. Just kind of generally see what happens. Oh, oh. I would have done it again. We would have done it again. Oh, I'm making. So I'm just doing so good right now. Look at this compression. I saw that immediately. Look at this compression team. You guys see that? I mean, you know, to be bullish, like, look at that. And look at this gap up right here. Don't you guys want to learn more about gaps? That's gonna be the next program. Next module. Type in a 7. If this is pretty good. So Again, if you want to see me do this for six hours in a row, do the back training marathon. If you want to see me do it live in class where we're taking real money trades, join me for one of the trading rooms. Morning room, afternoon room, weekly options newsletter. Do the whole thing. Yeah. Tomorrow I'll be on the microphone all day for the day trading room. So for those who are day trading with me, I'll be trading Amazon and Apple. Edward says, when's the next live back training marathon? No idea. I don't know, man. They're a lot of work for me, but we'll see. Lucian says, oh, he's talking to David. Steve says, can you do them while you run? Edward says, I'm already missing it, dude. I'm telling you, man, they are fun things to create. Kelly says, Apple is bullish, right? I don't know, Kelly. How about you join me in the morning room tomorrow and I'll show you. We'll talk through it. Paul says, off question. Which charting software do you prefer? Trend Spotter or Trading View? Oh, man. Why do I have to choose? Can I just do both? Paul? Is that. Is that possible? Paul says, absolutely. All right, let me just do both because, I mean, they're so cheap, man. I mean, trading views like $300 a year, something. Something insane like that. Trading view is like $400 a year. Transpires $300 a year. Well, charts is like $400. I mean, one good trade and I paid for all three of them. I mean, it's not expensive. I like both. I really do. I love both. Trendspider has phenomenal backtesting capabilities. So if you pick, right, if you pick a strategy that you like, you can click this strategy tester right here. So if you do use Trendspotter, you can use RLT25 and I'll save you 25% off. It makes it even cheaper. So if you find a strategy that you like and a moving average you like, you can go to the strategy tester and see how well it works. Ladies and gentlemen, type in a 9 if that is worth the money right there. I mean, I'm not trying to sell this product. It sells itself. It's easy. Okay, do you want to make money? Yes, you do. So buy some tools. Use some tools. Get together with people who help create, build, enrich lives. Do phenomenal things with phenomenal people, and money will come your way. That's how it works. Ladies and gentlemen, boys and girls, man, that was phenomenal. What questions do you all have for Me. I mean, that Netflix trade was so good. I love it. So, so nice. VJ says, can you do historical data on trendspider? That's what strategy testing is. Vijay, Amy says, are you still using the five Minute Journal? Yeah, I am. I am. The gratitude journal. Yep, I do. Trying to remember whose it is. I think it. I can't remember if it's Jen Sinceros or Brene Brown or just another one I bought, but yeah, I do. Amy, I have failed at it a lot this month, but I do use it. Steve, coming soon. More information on that soon. Lottie says, can I join the live trading room for two months? That's all the wife will budget me for the moment. Yeah, absolutely. Pop in for two months. Let's do it. Two months, man, is 60 days. Like, that's. That's sweet. So what I would say is you can't buy two months. Just do one month and then if you like it, do another month and then, you know, cancel. Then you and your wife go buy a new home, move in, get unpacked, get settled, and then re sign up again. Edward says, I've been there one month and it's worth it. Here's my boy. Blake is in the building. What's up, man? Blake's about to give me something to tell you guys. I'm confident in it. Oh, you're trying to get my wi fi password. Bull and bear. Yeah. Blamber. Yeah. Manoir says, I've been in there one day and it's worth it. Russ says, does momentum of the move impact your exit strategies? Yes, it definitely does. Definitely does. Vijay says, what is the 5 Minute Journal? VJ, type in 5 Minute Gratitude Journal into Google. You will get your answer. Yep, Five minute Gratitude Journal. Very valid question. And again, team, I love doing this. I love helping each and every one of you. This is phenomenal. Remember, we have another module coming up after this. I want you all to be a part of real life trading. If you're watching this video, please go sign up. Be a part of the community, be a part of the team. It's just a wise investment in. In both me and you. You make money, I make money, we make money together. We go help people, we donate money to charity, we build up communities. We do things, we win together. So, team, friends and family, I appreciate you all. Kelly says, what time do you start your day? Trading room, 9:00am Eastern Standard Time. Friends and family, thank you so much for being here. I will see you all later. And until next time, love life, live. Traded by.