WEBVTT 00:02.950 --> 00:07.600 And this video will talk about star placements and signs of momentum loss. 00:08.230 --> 00:18.670 So if you're in a trade, you need to know where it is you want to get out, where things could prove 00:18.670 --> 00:25.460 you wrong or for that matter, where the market is moving against you even when you are in profit. 00:25.480 --> 00:29.860 So let's take a couple really simple ways to look at the market. 00:31.660 --> 00:39.010 Let's go ahead and put the volume indicator on that will give us an idea of momentum. 00:42.980 --> 00:50.390 Like this candlestick here, for example, huge volume shot to the upside, so clearly, if you're going 00:50.390 --> 00:56.870 to take a trade based upon that right here at the bottom of this candlestick is a good stop loss. 00:59.320 --> 01:00.670 We rallied quite a bit. 01:01.920 --> 01:06.340 You can see that there is some support there that could be your next stop loss. 01:07.050 --> 01:12.480 So once the trade moves in your way, if it breaks back down, then you got out with a small gain. 01:13.780 --> 01:15.580 Some traders will. 01:16.980 --> 01:23.970 I do something very simple once the trade moves in their way or in their direction, you see this high 01:23.970 --> 01:26.100 here, that stop loss. 01:26.460 --> 01:33.870 Once we break that high, then you move your stop loss closer to that and so on or on the downside, 01:34.020 --> 01:41.600 if you're short up here, maybe based upon this very bearish candlestick, we fell, we pulled back. 01:41.610 --> 01:47.760 And then as we cleared this low confirming switch in trend, they'll put their stop there. 01:48.310 --> 01:49.320 We pulled back. 01:49.710 --> 01:52.830 They put their stop there after we broke down. 01:53.820 --> 01:55.950 That's a very common way. 01:56.610 --> 01:58.830 Of course, you need a trend for that to happen. 01:59.820 --> 02:03.420 But there are some other things to pay attention to that are quite. 02:06.650 --> 02:13.760 So on the way down, this massive candlestick here in Manassero, that broke the whole thing down. 02:14.090 --> 02:20.000 So if you are short, you know, maybe you were short because of this trend line break there, that 02:20.000 --> 02:21.290 was another reason or so. 02:21.770 --> 02:25.380 Well, if you're short and you see this massive candlestick on massive volume. 02:25.970 --> 02:31.940 Well, you know that if it gets broken to the upside, something's changed material materially and the 02:31.940 --> 02:32.420 market. 02:34.610 --> 02:42.670 So there hasn't been a whole lot to do over the last couple of weeks in this Minera U.S. dollar pair. 02:43.610 --> 02:49.910 Because there really hasn't been a huge volume spike, if you will, or anything that's changed the 02:49.910 --> 02:54.460 attitude of the market, yes, it's drifted higher, but pretty weak and low volume. 02:55.340 --> 02:57.070 So that's one way you could look at it. 02:58.310 --> 02:59.450 There are. 03:01.640 --> 03:06.200 Also, other ways people will do it, like with Fibonacci retracement. 03:07.330 --> 03:13.180 You know, notice how the thirty eight point two is basically the same thing as the top of that candlestick, 03:13.190 --> 03:15.100 so that's one thing to keep in mind. 03:16.620 --> 03:18.240 You can also. 03:19.970 --> 03:21.740 Use moving averages. 03:22.670 --> 03:25.700 So an indicator that you could put in there, see and Emma. 03:25.730 --> 03:32.840 Now this is a daily so let's go ahead and make this I mean, at the very least, you don't want it to 03:32.840 --> 03:33.620 be a 20. 03:34.010 --> 03:37.310 And realistically, you probably want it to be a 50. 03:37.880 --> 03:39.890 So it puts your stop right around the same place. 03:40.040 --> 03:43.900 And you'll find that sometimes in all kind of lined up at the same area. 03:44.030 --> 03:47.450 So I have a ripple chart polledo. 03:50.190 --> 03:50.730 And. 03:54.600 --> 04:02.220 There are quite a few different ways to look at volume and the trend. 04:03.120 --> 04:09.630 So, for example, if you are already long of ripple at this point. 04:11.140 --> 04:12.490 Remember our trend line? 04:14.020 --> 04:16.630 This was a nice run. 04:17.530 --> 04:24.320 From the 16th of March, all the way to the 10th of April on the 30 minute chart. 04:25.060 --> 04:31.480 So quite frankly, there was no reason to be short of REPL any time during this. 04:31.490 --> 04:37.930 Now, that doesn't necessarily mean that you want to be long the entire time. 04:37.930 --> 04:41.070 If you're daydreaming, if you're investing, totally different story. 04:41.620 --> 04:46.060 But notice, every time we pull back, and especially when we pulled back close to the trend line, 04:46.540 --> 04:48.790 there's where your stops need to be placed. 04:49.870 --> 04:56.580 You need to find a place that the market has to do serious work to take you out. 04:58.690 --> 05:04.930 You don't put stop loss is based upon your account size, meaning like, you know, I'm only going to 05:04.930 --> 05:09.010 risk X amount of dollars, but I'm going to put a big position on. 05:09.010 --> 05:10.030 That's not how it works. 05:10.030 --> 05:16.570 You need to do some money management, figure out your maximum loss to start with, and then you move 05:16.570 --> 05:20.080 your stocks accordingly to what the market tells you. 05:20.950 --> 05:22.260 In the next video. 05:22.270 --> 05:29.620 I'll take a look at a couple of very useful and thankfully obvious patterns because it gets other people 05:29.620 --> 05:32.200 involved, the double top and the double bottom.