Learn My Favorite Crypto Trading Pattern For Big Profits in 2018…



welcome to I love crypto today's video we're gonna be talking about my favorite trading cryptocurrency it made me a lot of money in 2017 and we're starting to see these same trade setups appear all over the charts in 2018 and that's called the falling wedge if you're new to the channel my name is Jake I'm a technical analyst I've been trading cryptocurrency since 2016 it actually allowed me to retire I live in Miami now if you're new to the channel make sure you hit subscribe and like this video so that you get future updates and I'll see you guys inside the video what I'm gonna teach you the falling wedge on a crypto currency called SNM thanks for tuning in let's take a look at my favorite trading patterns so the first thing we're gonna do is we're gonna head over to trading view calm trading view calm is a software that I would like to use for trading as you can see here I am still ranked the number one trader on trading view base basically because I had a CNBC chart 33,000 views but what we're gonna do is at the ticker top ticker box at the top we're gonna type SNM BTC SNM is a fog computing project you don't really need to know the fundamentals behind it we're just going to go over the trade analysis and in itself this is telling us to sell this was a chart that i just posted teaching about this trade that i'm gonna teach you today but i would never listen to these trading view buy sell indicators there's really no there's really no fundamentals behind that so let's take a look so i'm gonna clear this away and i'm gonna i'm gonna show you just kind of what it looks like empty so when you look at it empty if we look at it on the daily i'm just gonna show you really quick what you want to see is you want to look for previous support action so if we just pick up the horizontal trend line right here then and you click that well just it just gave us all of our tools but this this strong support line we want to see what happens when we get down here and we want to look at what patterns are forming when we get down here so let's hide this again so we've got this at price action where it's been going down pretty steadily but we want to see what happens when it gets down to this pre support action so let's zoom in here so if we zoom into this area right here so let's draw our trend lines as clean as we can so you can see that this is falling down now this is called a wedge and I and it's called the falling wedge and this is my favorite trading strategy to trade in crypto they typically perform incredibly well and we typically see some very big moves out of them well we'll just use what I've already drawn but basically what you want to do is you want to look for several points that it's hit multiple times the rules of a falling wedge are you you need at least two to three highs to make a valid wedge let me zoom in one more time so you guys can see this a little bit more oops well just zoom in on this this chart right here okay so a falling wedge is typically a bullish pattern this starts wide at the top and gets thinner as price gets into a consolidated tighter range it forms a wedge that slopes down and comes to what is known as a terminal endpoint to form the shape connect the higher highs with a line so right here so these are called reaction highs the price moves up but it continues down in this downtrend and as price moves down then we typically see what we call a falling wedge connect the low so we're gonna connect each price down on the low point as you know as well as we can and you can do this on the 4-hour you can do this on the daily you can do this on different time frames confirmation of a bullish break is when it breaks upwards and I'll go over like entry points possible re-entry points possible take profits re-entry take profits there's different ways you can you can play this pattern all right so let's zoom back out to our full chart here alright so this is the daily chart kind of messed that up a little bit but this is the daily chart so let's zoom in specifically on the falling wedge okay so as we can see on the daily chart we're using the top corner of the body and it matches up with these wicks up here and we can see that we had one one touch to touch three touch four touch five touch right here six touch there and then on the seventh touch we broke out and then on the support side we can draw this a couple different ways if you want to use the bottom corner here we had one two three four five six touches so about six touches on both sides so we were looking for either way now typically falling wedges will break upwards or be bullish so when we look at this what we typically see is we see a this this downwards pattern and then when we break out you can buy on the breakout on historical support with a nice stop-loss below but on the breakout what you want to look for is sometimes we have a inverse Head & Shoulders pattern actually form after we get the breakout so what you want to look for is you'll typically see something like this so you see this left shoulder form then you'll see the head form then you'll see a this formation when it comes back up and then it retests like down here and then back up so typically we will see that retest or typically will see the breakout and then we might see like a retest down here now you can also get this like slanted pattern like this you see it like a head and shoulders on kind of a slant where it comes back and retests the the upper resistance line like this so that's that's where you can get another entry you can take profit as you as you move up lots of different ways you can play this but what you want to look for is if you actually caught the bottom on a falling wedge pattern then what you want to do is you want to start to use other tools to see where you might take profits so you can use your fib retracement tool so from the top down this will give you a good idea of pasa where you're going so we might see a break up to this two three six level before we might you know consolidate back down you can also use if we zoom in on the thirty minute here I'm going to show you a little bit a little bit zoomed in here let's get rid of this Head & Shoulders pattern alright so we saw the bottom here right right in through here so what you can also do is you can also draw a fib retracement onto this to maybe see where you can re-enter here so we had this breakout upwards you can see this 0.5 fib has been pretty strong but we might see another pattern come back down where it may be retest the 786 or maybe we've got a hundred percent retrace you can see the confluence here the strong support the hundred-percent retrace and the touch of the trendline so we might come all the way back down and test this 740 like I said we come up come up and retest it and then we break out now let's look at a couple of under other indicators to give us a little bit more of a confirmation of what we're looking at so when we look at the daily and we zoom out now what we can see really well here is two things we've got a rising RSI as price goes down so price moves down move down move down move down I mean this is a big price move down 30 33 percent move down but RSI is climbing this means that momentum is building for a strong reversal rally now what we also have is we've got an RSI divergence but we also have something called a swing low failure now a swing low failure is typically where price moves down but the RSI doesn't match that move down in price that's called a swing low failure and this is very important to note because as price moves down you want to see the RSI move with it this is a divergence meaning that there's a strong possibility of a bullish reversal so for this trade I would take profits at some of these safer levels where it looks like there's a lot of liquidity there's a lot of different ways you can figure this out you can figure it out with the VP VR the variable range of the volume profile I just like to look for these hard supports and resistance levels where we saw tweezer tops so a good take profit here you know 15% scalp trade or a little swing trade there 55% here this was a VIP trade we bought on the breakout at 800 we broke out of that you know long term trend line I expect there's a lot more to come the next couple of months but this is this is known as a falling wedge reversal pattern they are typically bullish sometimes it can be bearish but with the RSI rising with the confirmation of the breakout with the daily candle closing above the breakout trend I'm bullish on SNM I think this is a great trade hopefully you guys learned some learn how to trade a falling wedge on this video if you don't mind make sure you like make sure you subscribe I will post this chart in the comments below and I will also pin it as a comment if you don't mind head over to trading view make sure you give it a like make sure you drop a comment if you've got any questions if you want to learn a little bit more about the falling wedge or confirmations on falling wedges let me know appreciate you guys watching and I'll see you guys on the next video are we are we recording yeah okay cool hey thanks for watching appreciate it make sure you subscribe if you want to keep watching other videos click here appreciate it see you guys on the next video you

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