WEBVTT 00:06.060 --> 00:09.160 OK in this lecture We'll dive into a lot of examples. 00:09.210 --> 00:14.370 So you can understand clearly how to use the exponential moving averages and how you can master this 00:14.370 --> 00:16.840 technique in a very short period of time. 00:17.770 --> 00:23.080 I know many traders and investors using moving averages but only a few of them master how to use it 00:23.080 --> 00:24.570 properly. 00:24.620 --> 00:30.630 That's why I want you to watch this video very closely and take note on everything you learn here. 00:31.730 --> 00:32.280 OK. 00:32.370 --> 00:38.410 Now let's take the first example to better understand how the moving average crossover strategy works. 00:38.640 --> 00:43.440 As you can see on the screen the blue line is the nine day exponential moving average. 00:43.530 --> 00:49.230 The red line is the 20 day EMEA and the orange line is that EMJ 50. 00:49.230 --> 00:51.540 Now let's take a look at point A. 00:51.740 --> 00:58.250 When the Blue Line or the EMJ nine crossed below the red line where the EMJ 20 and both lines started 00:58.250 --> 00:59.840 sloping down. 00:59.840 --> 01:01.810 This was a downtrend signal. 01:02.090 --> 01:07.270 As you can see on the chart the price started dropping after the blue line crossed below the red line. 01:08.410 --> 01:10.470 And now I want you to take note of this. 01:10.630 --> 01:17.260 When the price drops below the Orange Line or the EMJ 50 We know that the downtrend signal is much stronger 01:17.560 --> 01:21.490 and there's a high chance that the price will drop even further. 01:21.550 --> 01:29.200 You see if you bought Tron or T-Rex at 750 Satoshi without a profitable strategy in mind you might have 01:29.200 --> 01:32.130 lost half of your money in less than two months. 01:32.320 --> 01:37.690 And when the EMJ nine crossed above the EMJ twenty both line started sloping up. 01:37.690 --> 01:44.240 We have an uptrend signal here at Point B Similarly when the price broke up through that EMJ 50 and 01:44.240 --> 01:49.350 it continued to stay above this line the uptrend signal was considered much stronger. 01:49.610 --> 01:56.350 As you can see the price of this coin skyrocketed by over 200 percent in just one and a half months. 01:58.930 --> 02:00.770 Now let's take another example. 02:01.090 --> 02:05.590 As you can see on the chart the blue line crossed below the red line at point day. 02:05.710 --> 02:08.230 And both lines were sloping down. 02:08.230 --> 02:11.170 This tells us that this was a downtrend signal. 02:11.170 --> 02:16.600 The price was going to go down and when the price dropped below the Orange Line we know that this was 02:16.600 --> 02:19.020 a strong downtrend. 02:19.050 --> 02:23.270 You see the price dropped by over 50 percent in about two months. 02:23.310 --> 02:28.770 This strategy tells us exactly when we need to sell our investments to protect our money before the 02:28.770 --> 02:29.810 price drops. 02:30.770 --> 02:38.330 And if you can master this technique you can easily buy low when the trend reverses the EMEA 9 crossed 02:38.330 --> 02:42.860 above the EMJ 20 a point B both line started sloping up. 02:42.890 --> 02:48.700 We know that the trend had reversed in the uptrend signal got stronger when the price stayed above that 02:48.700 --> 02:49.700 EMJ 50 02:53.150 --> 02:53.720 OK. 02:53.740 --> 02:55.220 Let's take another example. 02:56.170 --> 03:00.410 As you can see the EMEA 9 crossed above that IIM-A 28 point day. 03:00.550 --> 03:02.220 Both lines were sloping up. 03:02.320 --> 03:04.550 The price was above the IIM-A 50. 03:04.750 --> 03:10.690 So we know that there is a strong uptrend signal the trend reversed when the blue line crossed below 03:10.690 --> 03:15.880 the red line at point B and the downtrend signal was stronger when the price dropped below the orange 03:15.880 --> 03:16.470 line. 03:17.360 --> 03:20.020 Now I want you to take a quick note here. 03:20.030 --> 03:25.070 This strategy works perfectly well with the support and resistance strategy you've learned in the previous 03:25.070 --> 03:26.400 module. 03:26.480 --> 03:30.590 You see we have a support level here at around 900 Santoshi. 03:30.710 --> 03:36.650 It helped push the price up many times and when the price broke down through the support level we might 03:36.650 --> 03:42.000 guess that the trend would reverse when the price fell below the support level again. 03:42.110 --> 03:48.120 We knew that there would be a downtrend and the price was going to drop further the old support level 03:48.120 --> 03:52.740 now became a new resistance level that prevented the price from rising up again. 03:52.740 --> 03:56.720 So in this case we could confirm that this was a downtrend. 03:57.740 --> 04:03.900 The EMEA nine crossed above the EMJ 28 points C and both lines were sloping up. 04:03.920 --> 04:09.000 This means that trended reversed and it was time to buy back the coin at a lower price. 04:09.200 --> 04:12.270 And when the price goes up we'll make an easy profit. 04:15.050 --> 04:15.620 OK. 04:15.820 --> 04:17.820 Let's have a look at another example. 04:18.250 --> 04:19.450 Looking at point A. 04:19.540 --> 04:21.370 We have a downtrend signal here. 04:21.460 --> 04:28.570 When the blue line cross below the red line and then the price fell below that EMJ nine EMJ 20 and DMA 04:28.570 --> 04:29.470 50. 04:29.560 --> 04:33.160 So we could consider this a strong downtrend. 04:33.340 --> 04:37.240 The trend reversed when the blue line crossed above the red line a point B. 04:37.500 --> 04:43.930 But this was a weak uptrend because the price failed to break up through the EMJ 50 as you can see on 04:43.930 --> 04:44.640 the chart. 04:44.710 --> 04:47.930 The price fell below the orange line many times. 04:47.980 --> 04:54.040 So in cases like this from my trading experience I knew that the trend would likely reverse soon. 04:54.980 --> 04:56.640 OK here's a quick note. 04:56.710 --> 05:01.150 When you make a trade besides identifying the uptrend signal that you've learned. 05:01.150 --> 05:06.850 I want you to keep three more important things in mind for the uptrend signaled to be stronger in this 05:06.850 --> 05:09.010 case your risk will be lower. 05:09.010 --> 05:16.360 First we want the blue line or the EMEA nine to be above the red line or the EMEA 20 and second. 05:16.480 --> 05:22.870 These two lines should be above the EMEA 50 as well and the uptrend signal will be much stronger when 05:22.870 --> 05:25.380 prices are above these moving averages. 05:26.510 --> 05:33.380 As you can see on the chart the blue and red lines were below that EMEA 50 in cases like this that EMEA 05:33.380 --> 05:38.570 50 can act as a dynamic resistance that can prevent the price from going up. 05:38.570 --> 05:46.530 So to eliminate the circumstance we want the EMEA 9 and EMJ 20 to be above the EMEA 50. 05:46.730 --> 05:50.360 It was even worse when the price dropped below these moving averages. 05:50.360 --> 05:53.730 So we could guess that the price was going to drop soon. 05:53.900 --> 06:00.170 The trend reversed when the EMEA 9 crossed below that EMJ twenty a point C as you may notice the blue 06:00.170 --> 06:05.400 line was below the red line and these lines were below the orange line as well. 06:05.420 --> 06:08.740 So we could consider this a stronger downtrend signal. 06:09.780 --> 06:14.420 The trend reversed when the blue line crossed above the red line here a point D. 06:14.460 --> 06:18.470 We also had a support level here at around sixty five hundred dollars. 06:18.600 --> 06:24.960 So we could easily predict that the price was going to go up soon again for the sake of your money safety. 06:25.020 --> 06:29.890 You'll want to avoid some cases that the EMJ acts as a dynamic resistance. 06:29.940 --> 06:35.370 So in this example we would enter the trade when the price already broke above the EMJ 50 06:38.290 --> 06:38.790 OK. 06:38.860 --> 06:40.160 Another example. 06:40.630 --> 06:45.340 Now we have the EMEA 9 crossing below that EMJ twenty eight point day. 06:45.340 --> 06:49.440 The orange line was above the red and blue lines and the price fell below. 06:49.450 --> 06:51.410 All of these moving averages. 06:51.640 --> 06:55.480 So we could predict that this was a strong downtrend. 06:55.560 --> 07:02.130 The price dropped by over 35 percent from 11000 Satoshi to about 7000 Satoshi. 07:02.220 --> 07:07.860 We had a resistance level here at around ten thousand five hundred Santoshi and a support level at around 07:07.860 --> 07:09.830 7000 Santoshi. 07:09.960 --> 07:16.460 So we could easily predict that when the price fell to the 7000 mark it would likely go back up again. 07:16.590 --> 07:22.470 As you can see the trend reversed when the blue line crossed above the red line at point B. 07:22.950 --> 07:28.110 And because there was a resistance at ten thousand five hundred Santoshi what I would do in this case 07:28.260 --> 07:34.080 is to sell my coins at around ten thousand two hundred Santoshi or three percent below that resistance 07:34.080 --> 07:39.420 level the price started to drop when it failed to break up through the resistance zone. 07:39.420 --> 07:42.360 So we could guess that the trend would reverse soon. 07:43.020 --> 07:49.050 We also have a support level here at about 9000 Santoshi that helped push the price back up many times 07:49.820 --> 07:52.850 but the price already fell below that support level. 07:52.860 --> 07:58.530 So in this case we can predict that the price will likely drop to the 7000 mark again and then bounce 07:58.530 --> 08:00.590 back up. 08:00.600 --> 08:07.320 So what we want to do now is to wait until the price it's the 7000 mark and bounces back up then we'll 08:07.320 --> 08:10.700 buy the coin at a low price for sweet profits. 08:13.380 --> 08:15.910 OK let's have a look at another example. 08:15.930 --> 08:18.810 Now let's analyze this chart quickly. 08:19.230 --> 08:20.260 Looking at point. 08:20.400 --> 08:22.320 We had a downtrend signal here. 08:22.590 --> 08:27.140 The trend reversed when the blue line crossed above the red line at point B. 08:27.180 --> 08:31.080 We had a resistance level here at around forty nine hundred Satoshi. 08:31.260 --> 08:35.770 As you can see the resistance level stopped the price from rising up many times. 08:35.910 --> 08:39.140 So we could guess that the trend would likely reverse soon. 08:39.300 --> 08:45.510 The price started to drop when the EMJ nine crossed below that EMH 20 a point C when the price fell 08:45.510 --> 08:53.730 below that EMJ 50 and DMA 50 was above the blue and red lines we could consider this a strong downtrend. 08:53.750 --> 08:59.000 We have another resistance and support level here so we can easily predict that the price will likely 08:59.000 --> 09:02.480 bounce between the support and resistance lines. 09:02.480 --> 09:08.160 In this example what I want to do is to wait until the price hits the support level at around 40 100 09:08.210 --> 09:15.140 Santoshi and bounces back then I'll buy the going back at a low price for an easy profit 09:18.280 --> 09:18.800 Okay. 09:18.880 --> 09:24.760 Another example we had an uptrend signal when the blue line crossed above the red line at point day. 09:24.970 --> 09:31.660 The uptrend signal was stronger when EMJ 9 was above the EMJ 20 and both lines were above the EMJ 50 09:32.080 --> 09:33.210 and the price was above. 09:33.220 --> 09:40.500 All of these moving averages as you can see on the chart the price of a theory went up by about 25 percent 09:40.830 --> 09:45.900 from $660 to over $800 per coin. 09:45.910 --> 09:50.700 The trend reversed when the EMEA 9 crossed below the EMJ 28 point B. 09:50.860 --> 09:57.080 The downtrend signal was stronger when the price dropped below that EMJ 50 the price went back up again 09:57.080 --> 10:00.260 when the blue line crossed above the red line at point C. 10:00.350 --> 10:04.830 But this time the Orange Line was above the blue and red lines. 10:04.880 --> 10:10.970 This was a weak uptrend signal because the IIM-A 50 could act as a dynamic resistance that prevented 10:10.970 --> 10:12.930 the price from rising up. 10:12.950 --> 10:18.450 In this case you should avoid making a trade and wait for another signal. 10:18.620 --> 10:23.690 The trend reversed again when the EMJ 9 crossed below that EMJ 28 a point D. 10:23.900 --> 10:28.240 As you can see we have a support level here at $695. 10:28.310 --> 10:38.060 So in this case we can guess that the price will drop to $695 and then bounce back up OK. 10:38.060 --> 10:45.740 The last example we had a downtrend signal here a point but that EMJ 50 was below the blue and red lines 10:46.040 --> 10:51.880 so we could consider this a weak downtrend signal that IIM-A 50 could act as a dynamic support. 10:51.890 --> 10:54.550 That stopped the price from falling down. 10:54.620 --> 11:00.800 We had another downtrend signal one that EMJ nine crossed below that EMH 20 again but this time the 11:00.800 --> 11:06.760 EMJ 50 was above the blue and red lines so we could confirm that this was a valid downtrend. 11:07.810 --> 11:14.410 As you can see on the chart we had a support level here at about $144 so you could easily predict that 11:14.410 --> 11:17.530 the previous downtrend would end soon. 11:17.590 --> 11:22.840 The price was going to drop and hit the support level a few times and then bounced back up. 11:22.840 --> 11:28.650 The blue line also crossed above the red line at point C so we could predict that the trend had reversed. 11:29.570 --> 11:35.330 The turn signal was stronger when the price went above all of the moving averages and that EMJ 9 and 11:35.330 --> 11:39.340 EMJ 20 were above the IIM-A 50. 11:39.360 --> 11:44.370 The trend reversed when the blue line crossed below the red line a point D and the downtrend signal 11:44.370 --> 11:49.120 was stronger when the price dropped below that EMJ 50. 11:49.130 --> 11:53.600 So now you've already mastered how to use the exponential moving averages. 11:53.600 --> 11:59.390 I want to let you know that this simple technique is very powerful as you make a ton of money by just 11:59.390 --> 12:05.900 trading the signals by when there's an uptrend signal and sell when there's a downtrend signal. 12:05.900 --> 12:07.160 Easy right. 12:07.160 --> 12:13.100 And when the downtrend ends it's time to buy back your coin at a much lower price and make a sweet and 12:13.130 --> 12:16.770 easy profit in the next lecture. 12:16.770 --> 12:21.750 I'll teach you the second technique that you can use to determine market trends and the most important 12:21.750 --> 12:26.390 thing is that technique works perfectly well with what you've learned so far. 12:26.640 --> 12:28.790 So see you in the next video.