Counter trend line – Free lecture from the Basic Cryptocurrency trading course


Dear traders, I continue now with the
counter trend line and actually I have one whole course called The never losing
formula – Bitcoin trading and it is based on the counter trend line which actually
gives us fantastic entry point for the trades and I will show you an example
here in this course as well. So, I will continue now with the Ethereum, because I draw lines and trend lines and I will leave the others for you as practical
activities just to practice to draw the trend lines, the counter trend lines over
the chart. So, what is the counter trend line from the name obviously you
understand that this is a line that is opposite the trend. And the trend line is the line which gives us the sign that the price continues the trend. Now if I take
this most recent high actually this is the record high that we have on the
Ethereum, I will draw the counter trend line on the opposite direction and you
can see for example if I connect it with this high over here, here I have a great
entry, guys. You see very impulsive break. What we were saying that impulsive break when we have a long candle closes on the high and the bigger part of the
candle is above the line. So, it’s the same rule when we do counter trend line.
So, if I come back here you see I have my counter trend line and if I just move it
slowly you will see that what happened is the price broke it, retested it very
same thing what I said with the support and resistance when any line is
important to the market it’s very possible that the price will retest it
and it will continue higher. Now if I go back you will see that this counter
trend line could be actually on many places, right? It could be here connecting
some of this high or I can put it here and draw it here you will see it
will give me another great entry. So, what’s the idea here? We are in an
uptrend, the price reverses, OK? But we don’t know how far it will go down, we
can use the support, we can use the trend line, but the important is that we
want to enter with the trend just when the price starts to go up again. It is
starts to follow the trend again. So, I will have this great entry at this level
over here and as you can see you would have great profits if you have entered
there. Now I can draw it here, you can draw it on so many places, guys. Obviously here another great entry and then you can go back and back and you can go much lower. In the price you will see that there are some great, great opportunities
using the counter trend line, that’s why I will leave it to you with other cryptos,
just to draw it by yourself, to see it by yourself, so when we have a recent high,
guys, just connect it with the other ones and you need minimum two and this
example here is great, because you can see that here I have one touch, two touch
and three touches nearly here which makes the counter trend line very
sustainable, very strong and it makes the counter trend line important to the
market. And as you can see here if you enter here your Stop Loss would be great
to keep it just below the trend line. But anyway, I really don’t want to give
examples over history data, because many instructors are doing that, they will
give you so many examples it’s great to enter here, it’s great to do this, it’s
great to do this. Obviously it’s very easy when you know what happened. So,
I will go back to the recent moves, the ones that we have from today, from the
last days and as we said the recent counter trend line was this one over
here. OK? Which gave this great opportunity to enter. I actually
record it with the other Ethereum trading course that I launched recently, here an
example where the price broke exactly this level, but it was because of the
trend on the lower time frame. It’s totally different system, I don’t want to
make it confusing here for you, guys. So, let’s focus on this counter trend line.
What we have when we have counter trend line, is that we have aggressive counter
trend line. This means that this is a great opportunity to enter at this price
when the price breaks the counter trend line, but we can draw more aggressive
counter trend line which will be from this top connecting this top over here.
Now you can see that if I entered here I would enter in a long position in a buy
position on much cheaper price. So, instead of entering at around 1240 I
would be entering at 1184. As I said, I don’t want to give examples over the
chart, so let’s go to the most recent movement that we have from today. I will
just zoom it a little bit even more and you see these are the last hours from
today and let me just take the line and you see from here I can draw this
counter trend line. Now if the price breaks above I can enter or if the price
just forms another lower high I can draw more aggressive counter trend
line and enter into the trade. Now this is the example strategy, guys, that I want
to show you for manual trading. So, for this strategy we will need actually
three things – one, is we follow the trend on the daily chart, let me just show you
where is it. We follow the trend on daily chart, we have series of higher highs and
higher lows and when I go to H1 chart, we are having the counter trend line and we
are looking for the more aggressive counter trend line to enter into the trade with the direction of the trend. Now obviously, if
I just zoom out a little bit you can see that this is already aggressive counter
trend line, because the counter trend line would be this one over here
connecting this record high that we have and the most recent one. But this is
nearly, nearly a support and resistance. You can see it’s very close to a
horizontal line, anyway it’s not a horizontal line, so we can consider that
this line is a counter trend line, as well and here we have this aggressive
counter trend line. So, if the price now goes lower and forms another lower high
I will have another more aggressive counter trend line and I will be able to
show you an example with this aggressive counter trend line and I will do this in
the next lecture. Cheers, guys!

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