WEBVTT 00:02.630 --> 00:10.250 In this video I want to take a look at three very basic tools and the technical analysis world you should 00:10.250 --> 00:16.310 know how to use all of these and therefore you can set up your chance because technical analysis at 00:16.310 --> 00:23.360 its core is simply marking up a chart with layer layers of interest areas he may want to buy or sell 00:23.360 --> 00:25.210 areas you want to avoid that type of thing. 00:25.310 --> 00:28.640 Using these tools allows you to do just that. 00:28.670 --> 00:30.710 I'll be taking a look at levels. 00:31.040 --> 00:35.930 I'll be taking a look at trend lines and I'll be taking a look at channels. 00:35.960 --> 00:46.070 So first of all I would describe a level as simply a price it's a level on the axis going horizontally 00:46.070 --> 00:47.240 on a chart. 00:47.240 --> 00:54.740 You can go to the menu over here click on the line tool click on the arrow for the sub menu and go to 00:54.740 --> 01:01.520 horizontal line by doing so you can then click on the chart and place a line you can place it wherever 01:01.520 --> 01:02.210 you want. 01:02.210 --> 01:05.030 You'll notice that the bubble has appeared. 01:05.030 --> 01:12.620 So if you hold down the mouse and button and scroll you can see that the price can be moved back and 01:12.620 --> 01:15.880 forth as I am doing here. 01:15.890 --> 01:22.610 You can also for example right click on this dot and then go to format and you can change the price 01:22.610 --> 01:24.190 manually. 01:24.200 --> 01:30.680 So for example if I want sixty five hundred even I just click on that and it will take it right there. 01:30.710 --> 01:38.350 I can also change the style and all of that as well I can think in the line as you see behind you I 01:38.390 --> 01:42.040 can change the color as you see behind you as well. 01:42.200 --> 01:48.140 And that allows you to customize the charts however you wish. 01:48.140 --> 01:53.600 The nice thing when you click away and click on the chart and then it becomes inactive and it will activate 01:53.600 --> 01:55.020 itself again if you hover over it. 01:55.550 --> 02:00.710 If you change time frame so let's say I want to get into the weekly chart it stays right where it was. 02:00.710 --> 02:07.280 So this is an important way to mark up the chart to give you an idea of important levels down the road 02:07.340 --> 02:14.480 they might be on higher timeframes that may be market turning areas but on a shorter timeframe you may 02:14.480 --> 02:20.540 not be thinking about the next markup would be the trend line. 02:20.580 --> 02:27.180 Again go to the line menu click on the arrow for the sub menu and then click on trend line trend lines 02:27.210 --> 02:30.370 are similar but they are diagonal in nature. 02:30.420 --> 02:37.590 So you click on the chart you hold the button down and you drag right along click it again and then 02:37.610 --> 02:39.040 there is the line again. 02:39.120 --> 02:45.690 You can format it just as you did the horizontal line and color thickness then type of thing. 02:46.450 --> 02:52.110 So you can see that this is an area where price continues to bounce from that is an uptrend line. 02:52.390 --> 02:56.200 The exact opposite is a downtrend line. 02:56.200 --> 03:01.720 So for example you can go out there and you can say that price has not been able to break above their 03:03.700 --> 03:08.940 So that's the second very important markup that you'll need on these charts. 03:09.220 --> 03:15.540 But one thing that I would do before I go on the channels this is kind of messy here so let's go and 03:15.540 --> 03:22.650 clean it up right click in the chart somewhere away from any of the drawing go to remove it and then 03:22.680 --> 03:31.690 remove all drawing tools and you have a fresh clean chart again now for channels you may notice that 03:32.050 --> 03:37.870 in a particular part of this chart we have a channel going in a channel with simply that uptrend line 03:37.900 --> 03:44.200 that I had mentioned previously but it's got a parallel uptrend line and you can see that in this area 03:44.200 --> 03:52.720 here you could have bought sold bought sold but sold Centra and there's an entire theory of trading 03:52.720 --> 03:55.840 behind channels and that's why they're so important. 03:55.840 --> 03:57.880 You can do it. 03:57.880 --> 04:10.630 One of two ways you can do it using just regular trend lines or like them or you can use the tool for 04:10.640 --> 04:20.170 parallel channels which will give you a perfect parallel channel which is really what you're looking 04:20.170 --> 04:21.420 for. 04:21.460 --> 04:25.270 Click on the sub menu in the line chart for parallel channel. 04:25.300 --> 04:35.310 It functions very much like a trend line in the sense that you drag it and then when you go to close 04:35.310 --> 04:36.230 it you drag it. 04:36.240 --> 04:44.580 In this case up and you can see that there is a purple area and of course you can format this just as 04:44.580 --> 04:47.020 you can any other drawing. 04:47.070 --> 04:55.890 So let's go ahead and make that a little bit lighter color maybe something like that would be the lines 04:56.430 --> 04:58.370 and then the middle. 04:59.590 --> 05:02.350 You can change that as well the background. 05:02.700 --> 05:04.890 You can just take that out. 05:04.980 --> 05:12.330 In this case I'm going to lighten that up to kind of a salmon color and you can see that completely 05:12.330 --> 05:18.390 changed the mental line has appeared because I did that and that opens up a whole new world of trading 05:18.390 --> 05:22.950 possibilities going back and forth between the buying and the selling. 05:22.950 --> 05:29.100 These are very important drawing tools to understand in the platform. 05:29.100 --> 05:35.430 And it will give you a leg up on marking up your charts again as I previously mentioned. 05:35.430 --> 05:37.940 These do transfer to other timeframes. 05:37.950 --> 05:44.760 So if there is an area that has been important previously it could be in the future and that's what 05:44.760 --> 05:47.190 technical analysis is all about. 05:47.190 --> 05:52.800 So stick with us and this next video will talk about support and resistance and the importance of that 05:53.760 --> 05:58.050 as it is the basic fundamentals for all things technical analysis.