Trading For Dummies: Technical Analysis (Day 5)

Ajouté : 2026-05-27

[00:00:00]Boom. So, welcome to day five of the Trading for Dummies boot camp. Today, we're going to go over the most important thing when it comes to trading, and that is technical analysis.

[00:00:09]I'm going to give you guys a deep dive of everything you need to know to even know what technical analysis even means.

[00:00:15]I'm going to show you guys what it looks like on charts now that you guys know what candlesticks are, cuz you should have watched yesterday's boot camp video. If you haven't, go back and watch that so you understand candlesticks, cuz technical analysis will not make any any sense if you don't understand candlesticks. But this entire video, I'm going to go super in-depth on what you need to understand with technical analysis and how us as traders use it to actually make money on the charts. So, let's get into it. All right, so now it's time to master technical analysis as a whole. We've went over charts, we've went over candlesticks, we went over time frames, we went over all these different things, but now it's time to kind of put it all together to understand market structure, to understand technical analysis holistically. Remember I told you guys the two main types of analysis is fundamental analysis which is news and technical analysis which is kind of what we've been going over the past uh few sessions or so. There's three main things you need to understand when it comes to the market and how price moves.

[00:01:09]So there's bullish market structure which simply means that we're creating higher highs and higher lows. What does that mean? So we know price never just goes straight up. If you think that price just always goes straight up, you're completely wrong. Price just never goes straight up and price just never goes straight down. What it does is it'll go up and down a little bit, up, down a little bit, up, down a little bit, up, down a little bit. That is bullish market structure. It's creating higher highs and higher lows. All that simply means is that this high is higher than this high. Meaning that this high created in higher high. Then the high after it created another higher high. So it's creating higher highs and it's also creating higher lows. which simply means that this low is higher than this low.

[00:01:55]Then this low is higher than this low.

[00:01:57]So it's creating higher highs and higher lows. That is bullish market structure.

[00:02:02]Meaning the market is going up. And then you'll see vice versa when the market is overall going down. It'll go down a lot, up a little bit, down a little bit, down a lot, up a little bit, sorry, down a lot, up a little bit. And in this trend to the downside, you'll see we create a high here and then another high right here, but this high is lower than the previous high. Same thing with the lows.

[00:02:26]So this low right here and this low.

[00:02:29]This low is lower than this low, meaning it's creating lower lows and lower highs. So that's something you need to understand. And when you're looking at the charts, you need to realize that the market is always going to create higher highs and higher lows if it's trending.

[00:02:45]That means if it's bullish, the market is trending to the upside. If it's bearish, the market is trending to the downside. But then there's also something called consolidating markets.

[00:02:53]That just means that there's no clear direction of where the market is actually going right now. So it could be going up, down a little bit, up, down a lot, up a lot, down a lot, up a little bit, down a lot. like it could just be consolidating, meaning that it's just trending in a a range. It's just staying kind of in one type of range. It doesn't have there's no clear winner. Like buyers aren't clearly winning and sellers aren't clearly winning. So the market's just staying really within a range. That's a consolidating market.

[00:03:21]Now, the reason you need to understand this is because certain trading strategies, especially ones we're about to go over in a second, certain trading strategies work better in trending markets, and that could be bullish trending or bearish trending markets.

[00:03:33]And then some strategies work better on consolidating markets. And then vice versa. There's a lot of strategies that don't work very well with consolidating markets or consolidating market structure, but they work amazing with like trending markets like a bullish market structure or a bearish market structure. And then there's obviously the flip side of it. So you need to understand these things and know what type of market we're in. Whether we're in a bullish market creating bullish market structure or a bearish market creating bearish market structure, lower lows, lower highs, higher highs, higher lows. You need to understand all that.

[00:04:03]that when you're looking at the charts, you know exactly what you should be looking for. Cuz there's one tip that I'll give you, and we'll dive a little bit deeper into it later on. But you always want to trade in the direction that the market is going. You never want to try and guess cuz the market's going up. You never want to try and guess and be like, "This is the top. I'm just going to sell cuz it just has to go down now." You never want to do that. That is never the way of trading. You have to trade in the direction that the market is going. We talked before about trading sessions about the fact that we don't control the market. you opening up a buy with $10 million. If you had $10 million and you open up a buy, you're not moving the market. You can't control where the market goes. It's the hedge funds. It is the algorithms. It is the banks that have billions and billions of dollars.

[00:04:46]So, for you to win in trading, you have to trade and be on their side. You can't try and go against them. You have to trade in their direction. So, that's why we need to clearly identify, are we creating bullish market structure or bearish market structure? So, we can know to look for either buys or sells or if we're consolidating, how can we play this game? How can we still win in these consolidating markets? Now, I showed you guys some drawing examples of uh different markets. But, if we just go on a chart here, we can actually see it live in person. Now, if you didn't know, inside of my inner circle, you actually get to see how I implement all of this information inside of the markets every single day. You get to come and trade live with me every day. You have the opportunity to copy every single trade that I take in real time. You have the ability to ask me any questions because I will coach you one-on-one. Now, if that's interesting for you, I'll leave a link for my inner circle in the description of this video to help you get started implementing all of this information. So, if we're here right now, we're on the 4-hour time frame. It doesn't really matter what time frame you're on. You can kind of just see it happening. And I'm just going to mark off some highs. I'm going to mark off some lows, right? So, we have a high here that was created. And then we have a low created right here. And then we see another high created right here. And we see a note another low created right here. We see a high created here.

[00:06:02]Another low here. What do you see? What is the pattern? You see this high and this high. This one is lower. And then we had another low. Meaning we're creating lower highs. And then also what are we doing at the same time? This low is lower than this low. And then this low is lower than this low. Meaning we're also creating lower lows. And then what do you see on the chart here? We are overall trending to the downside.

[00:06:30]This is showing us that we're in a downtrend or a bearish market. Now, you'll see throughout this bearish market, you'll see times like this where price kind of just ranged. It didn't really have a clear direction. It was trending to the downside a little bit, but it was really just ranging. You see it went up, down, up, down, up, down.

[00:06:47]Like, it's just ranging, right? This is an example of a consolidating market. We can see multiple different examples of that here as well. We can see in this instance, right, price didn't have a clear direction. Price was kind of just chilling inside of this range this entire time. It was just consolidating inside of this range the entire time.

[00:07:06]And then if we zoom out, we can see in this analogy, we're creating a low, then a higher low, then a higher low, while also at the same time creating a high, a higher high, and a higher high than that. We can see all these different examples where price is clearly in a uptrend here and then it flips and we can actually look at it vice versa because after we had price going in an uptrend, we see now it flipped and price started going in a downtrend. If we draw it out exactly how we did on the drawing, right? Price went down up down up down up down up. This is creating bearish market structure. Same thing with here. Price went up. Now, you can see obviously this is like um it can get a little bit choppy when you're looking at it, but if we look at the overall highs and the overall lows, meaning we don't have to pay attention to all these different little small highs and all these different uh small lows. Now, you can, but it can get a lot more confusing if you just look at the main highs and the main lows, meaning price was continuously going up and then it started going down. Then price continuously was going up and then it started going down. Then price continuously was going up and then it started going down. If you look at that, you can clearly see that we are creating higher highs while also creating higher lows. And this is telling us that we should be looking for buys because the market is overall in an uptrend. Now, it doesn't matter what time frame you're looking at. As I mentioned, if you go to the hourly time frame, you can still see the same exact thing. You can see here we're clearly trending to the downside.

[00:08:40]Um here we had a little period of trending to the upside. So you can see it no matter what time frame you're on.

[00:08:46]Um you just need to be able to look at it and to see the bigger picture and know overall, okay, are we trending upwards or are we trending downwards?

[00:08:54]That way you know which side of the market you should be on. One of the biggest things you need to understand about technical analysis is that it is simply predicting what price will do based off what has previously done.

[00:09:05]Teleico analysis is literally all about just looking at patterns, finding patterns, and waiting for those patterns to repeat themselves. We went over the candlestick patterns. We went over, okay, most of the time when you see a dogey candlestick, price is about to reverse. Or most of the time you see a bullish engulfing, we're about to start going up. These are all just patterns.

[00:09:23]And patterns are are the basis of technical analysis. One of the biggest patterns that you're going to see and notice in technical analysis is something called support and resistance.

[00:09:35]It's the foundation of almost every single strategy. We're about to hop into strategies in a second here, but it's the foundation of almost every single strategy that you see in this video that you would have seen on every other YouTube video. It is the it is like the backbone of technical analysis overall and a lot of people overcomplicate it, but it's very very very very simple. All support or resistance is is simply places where price previously got to and either the market thought it was too expensive or they thought it was too cheap and the market went in the opposite direction. Meaning let's imagine this red box right here is a support zone. Support is always below where price is at. A good analogy that I use to remember it uh the difference between resistance and support is support is a floor. support. Just think of something supporting price up. And then resistance, think of resistance as a roof. Think of you trying to break through a roof, but it keeps resisting.

[00:10:31]That's the same thing. So, let's imagine this yellow line is price. Price will tap into support zones and it will start going up. Same thing vice versa with resistance zones. Price will tap into resistance zones and start going down.

[00:10:44]Now, why does this happen? Yes, use the analogy of right now cuz I'm on Ethereum chart. It doesn't matter what chart you're on. Support and resistance is essentially the foundation of it and can be used for it. It is literally the strategy that I have used from the start of my trading that has made me the millions of dollars that I've been able to make with trading across all different industries. But the reason being is like I said with uh the analogy or the example that we're going to use for now is Ethereum. Imagine the price of Ethereum down here at this red box is $1,000, right? And imagine the price of it there up here at this red box is $2,000. I told you guys before when we talked about trading sessions that we don't move the markets. The big banks do. The big private equity and hedge funds do, right? So when they find something is too expensive or too cheap, they will buy it up. For example, this is Ethereum. The yellow line, the price of this is Ethereum. Every single time Ethereum gets to $1,000, it's super super cheap. So everybody buys it and when everybody buys it, it makes the price go up. You can think on a regular scale. Imagine right now iPhones are what? A thousand bucks? I don't know how much they are. Let's say they're a,000 bucks. If you went to Walmart tomorrow or Target tomorrow and an Apple iPhone was $200 instead of $1,000, you would buy it up because you know the the actual fair value for that is $1,000.

[00:12:08]And then same thing when it comes to, let's say in this same exact example, if a phone was $2,000 or it was selling for $2,000 and you had an iPhone and you only bought it for $1,000 when everybody else was buying for $2,000, you'll probably sell it at $2,000 and so would everybody else and that would cause the price of it to go down. So, bringing a bit this back to our Ethereum trade here. Every single time price gets to like $1,000, and this is all example numbers, but every time Ethereum gets to $1,000, everybody thinks it's super cheap, so they buy it. When everybody buys it, it makes price go up. When Ethereum gets to $2,000, everybody thinks, "Dang, that's mad expensive. I'm just going to sell all my Ethereum."

[00:12:48]When everybody sells all their Ethereum, that causes price to go down. And it just keeps doing this. Keeps doing this.

[00:12:55]right now. It'll be times when, okay, really like $1,000 is not that cheap anymore. So, everybody won't sell at $1,000 and it'll break through that.

[00:13:06]That is called a breakout. And that's a breakout of a support zone or a breakout of a resistance zone. But right now, let's let's go back just for a second.

[00:13:14]So, the way we're able to use these support or resistance zones, we're able to see, okay, at $1,000, right? Most of the time when it gets to this price, it starts going up. So, me as a trader, as soon as it gets to $1,000, I can look for certain patterns, whether it's candlestick patterns or different market structure patterns that tell me, okay, this it's it's at $1,000 and then I saw this candlestick pattern. I should probably enter a buy because it looks like it might reverse. For example, if it touches $1,000, which is a support zone, and I see a dogey candlestick, and I know it's been trending down to the $1,000, and I see a dogey candlestick, which means indecision, and that price is about to reverse, I can enter for a buy, and then that buy would allow me to make money as it goes up. Same thing vice versa with sells. That's how we as traders trade support or resistance.

[00:14:02]we're able to identify the areas where price has previously reacted to or previously sold off of or bought off up off of and then we're able to position oursel to wait for extra confirmation to enter into a trade. What I don't want you to do though, and I find a lot of new traders doing this, is they'll have their support and their resistance zones drawn up and as soon as it taps into, let's say, a support zone, they'll enter for a buy because they just assume it's going to go up. I mentioned to you guys before with candlestick patterns, the same thing with support or resistance, it's not a 100%. It doesn't mean just because it's bounced off of here the past 20 times, it doesn't mean that this time it's going to bounce off of there still. It could break through and have a breakout. That's another type of uh strategy that we'll talk about a little bit later on. But um nonetheless, that's why we wait for extra confirmation. And that's why later on in this video, I'm going to go over what confirmation I look for for my uh support and resistance strategy. But that essentially is support and resistance.

[00:15:00]Now, I mentioned we do have breakouts, right? We'll have breakouts where price will break above, let's say, a previous resistance zone. Let's say in this analogy, it buys up, breaks out of it.

[00:15:10]Now, you could either take a breakout, but you also have to realize that support or resistance zones when they're broken out of, they'll always or almost always get retested. Meaning, it broke out of this resistance zone. It'll price will come back down to retest that previous resistance zone in this analogy, and it'll treat that previous resistance zone as now a support zone, and it'll buy off of it. Same thing with the support zone. When it breaks out of it, it'll break out of it. It'll break that support zone and then it'll come back up to retest that previous support zone and it'll treat that support zone as a resistance zone and sell off of it.

[00:15:51]This is called a break and retest. This is another one of the strategies that has printed me money. This is one of my favorite strategies to trade, which is that break and retest off of a support and resistance zone. So once you understand that concept of what support and resistance is and then understanding and realizing that when it breaks out of it, there's also a play that you could take after it comes and retests it and it flips it. That's a very valuable skill to know. Now, obviously, this is all drawings and this is all not fake, but this is just drawings, but we can see it here live on the charts. I don't have anything currently drawn up on the charts, but if we just zoom out and look, right, what I'm going to do, I'm just going to draw boxes around certain areas, and you we're just going to see how price reacted to it when it got to that same price point. Because remember, candlesticks is simply telling us where price has been and the story of it. So, we see here price got to this area, right? Let's zoom in and look at this.

[00:16:44]Price bought up here and then it sold down very heavily. What we're looking for with support or resistance zones is we're looking for price to buy up to an area and then sell off very hard or sell down into an area and buy off very hard.

[00:16:56]In this example, we see price bought up to an area. Then it sold off very hard.

[00:17:01]What happens if we drag this across?

[00:17:03]This is that same area. We're just using this box tool to mark off the area. If we drag this across, what happens when it taps into that same area? Price was all the way down here. It bought up back into that same area. And what did it do?

[00:17:16]It sold off. We can look on the bottom right here. Price was selling down heavy. As you see, price was selling down very heavy. It got here, then it started buying up very heavy. This is the lowest point it went. If we drag this across, what happens? Price respected this support zone here. It respected it here. It respected it here as well. And then you'll see here what happened. Price broke through. It came back up into that previous support zone as the break and retest and then what did it do? It sold off. This is what you're going to see. You're going to see this pattern happen time and time again.

[00:17:53]We have this zone right here. Price bought up very quickly, sold off very quickly. If we drag this across, what happened when price tapped back into it?

[00:18:01]It sold off again. We can see up here, price bought up into this area right here. It sold off heavily. What happened when price got back into the same general area? It sold off again. There's something you have to understand though.

[00:18:17]This is a perfect example. Price doesn't always stop exactly at where it stopped at before. That's why when I'm drawing my support or resistance zones, and I'm going to show you in a second how we how I draw them. I use boxes. You'll see a lot of traders come on here and they'll use lines like they'll draw their lines like this and use that. But a lot of times price well almost all every single time price never just stops exactly at the same point that it stopped at before. Sometimes it'll stop a little bit before it. Sometimes it'll go a little bit above it and then it'll react. For this analogy right here or this example right here, if I had just used a line and drew off right here, right? Instead of having this box, we would have seen price bought up here, sold down, and then what happened? It never tapped that line again. So, we would have never even known that we could have entered a cell at this point.

[00:19:05]So, that's why I use boxes when I'm drawing off my zones. Now, how do I actually mark off my zones personally?

[00:19:12]So, um this is how I mark off my zones and how I kind of know what a zone is versus just using a line or just drawing a box any type of way like this or something. Um there has to be consistency with it. So, how I like to do it is okay, I see price sold down into an area and then it started going up. What I'll do is the lowest wick in that drop to the downside, I'll start my box there and then I'll drag it to the highest body before it started going up.

[00:19:42]The highest body of the candlestick. So in this analogy, you see it sold all the way down here. So that's the highest wick and then the lowest body is on this candlestick. So I drag it until it gets to that candlestick. And then what I do is I just drag it across and I just wait for price to react to it at that point.

[00:19:59]And as you see, it reacted to it here, here, here. Then what happened? Broke through it, came back to retest it, and sold through it. That is essentially how I draw my zones. And I can draw this uh multiple times here. You see price bought up into this area. We'll take my box out here. I'll draw it from the highest wick to the lowest body since I'm drawing a resistance zone right now.

[00:20:21]And then all I'm doing is dragging it across. And I'm simply just waiting for price to tap back into that area. What happened? price came tapped back into that area and sold off. This could have been a nice selling opportunity off this resistance area. Now, you're going to see multiple different examples of this.

[00:20:39]You're going to see it all over. You're going to see these break and retest happen. You just need to get good at seeing and spotting these actual resistance in these support zones. And like I mentioned to you, the main thing we're looking for is big rejections away from areas. You don't want to get distracted with things like this, right?

[00:20:58]Where price got up here, it bought up into this area, it got here, and then sold off a little bit.

[00:21:05]That's not a good support or resistance zone for me. I want to see big rejections. So, for example, this is a big rejection. Price got down here, then it rejected heavily off of here. So, then I would drag my zone across and I'd wait to see if price tapped into here again. I'm not sure if it did. Oh, it didn't. See, perfect example. It just broke through it. I mean, it bought off of here just a little bit right here for a little bit. You could have made some money here or right here when it uh bought off of it again. But the main setup I probably would have taken is when price sold and broke through my previous support zone and then what did it come do? Broke through it, came back up to retest it and then sold off. I would have taken that break and retest.

[00:21:47]But as I mentioned, you're going to see this example happen so many different times. You just need to get good at spotting these support in these resistance zones. So, what I would do as good practice is I would zoom out my charts. And keep in mind, I like to draw my support or resistance zones on higher time frames like a 4 hour time frame or a 1 hour time frame. I don't really draw it on like one minute time frames or five minute time frames. Reason being, and this is something you have to understand, the lower the time frame, the more price lies because, and you remember my analogy where I showed you we have a daily candlestick, but that has 24hourly candlesticks in it. It has however many one minute candlesticks inside of it.

[00:22:26]That can show you a lot of noise, right?

[00:22:28]But a 4hour time frame support or resistance zone is really going to show you the real zones. It's going to show you the strong zones. That's not saying that a one minute support or resistance zone would not work or it won't be respected. It's just I would always trust a 4hour time frame support or resistance zone or support or resistance zone drawn on the 4hour time frame. I would trust that over one that was drawn on the one minute time frame or the 5minut time frame or the 15-inut time frame. I'll always lean towards the hourly or the 4hour time frame when I'm drawing my support or resistance zones that I'm looking for trades off of. So I'd recommend the same for you as new traders. So, like I was saying, a simple way of getting good at drawing support and resistance zones is just to zoom out on your chart here um on the 4hour time frame and just look to see where price pivoted at, right? Take out your drawing tool if you want to and just look where price pivoted at. Okay, price pivot here, it pivoted here, it pivoted here, pivoted here. We have all these different big pivot points, right?

[00:23:28]And then once you mark them all off very simply like this and then you can zoom in a little bit, right? Zoom in a little bit and then get good at drawing your zones. So you draw it from the highest wick to the lowest body, right? Just like this. And you'll see this example.

[00:23:44]Price sold down, came back up, retested it, right? So you would zoom in, get good at drawing your boxes. The highest wick to the highest body, drag it across. As you see, that would have tapped into it. We could have sold on this trade to the downside. Could mark off this one as well. I think we marked off this one as well. But this is essentially how I suggest for people to get good at finding support or resistance zones. Now, you can get a lot more intricate and a lot more detailed.

[00:24:12]Um once you become a little bit more comfortable with finding these zones where you don't have to look for the complete obvious ones like the ones that I marked off, you can start paying attention to okay um we had this zone right here where price bought up to and sold off very heavily. I could have taken this trade or I could have taken the trade right here where it got back into that same area. Right? But as a new trader, I do suggest for you to get good at marking off the obvious support or resistance zones before you start trying to go and find every single support or resistance zone. Because what I don't want you to do, um, and this is something that I fell victim to in the beginning is I had 300 billion support and resistance zones on my chart. I was marking off literally everything. And when I marked off everything, I did not know what action to take because I literally would have zones at every single part of my chart. And that was a complete mess. Um, so you don't want to do that. You want to just focus on um the obvious support or resistance zones and then focus on getting the support or resistance zones that you're looking for on that specific day. Well, we'll get into what that looks like um in a little bit from now when we start going over my different strategies. But as I mentioned, support and resistance is literally the foundation of trading.

[00:25:26]It's the foundation of technical analysis. It's something that you really need to master regardless of what strategy you're going to trade.