 what's going on guys video lesson number two what do you do after the pump is over so um and how do you know when the pump is over so this is one of the most important things in trading for intermediate level traders i would say a lot of the times right people are able to determine when a breakout is happening and they're able to trade these explosive moves to the upside with decent comfort and um you know it really all just comes down to the ability to identify the trend right right now obviously we we had a lot of triangle breakouts that occurred here and that's you know pretty simple because once you get your pump and it's holding you can see a lot of bullish price action on the order books it's generally pretty easy to get in for a long and get some profit right on leverage or not you know um but basically you know we haven't seen really many large pullbacks on the way up here you can kind of see that uh overall it kind of just kept flagging and then breaking out some more flagging a little bit break out some more flag again and then break out some more right so it's been a relatively easy trend to trade from december to january and i think with uh how the markets are moving now after january is over things got a little bit harder so i wanted to talk about you know sort of when to let go of the pump right um like when to determine uh when it's time to just stop trading for a little bit now that you've made some profits so here we're looking at the daily chart okay so the daily chart is one of the most important charts for knowing when the trend is over and knowing when to stop going long and so is the weekly chart so basically you're going to need to use these two charts combined to really figure out when it's time to take a step back you know uh you've made some good profits like five six figures let's say just from trading this pump right um you need to know when to let go so you don't give any of that market money back to the markets and that is what this video lesson is all about so um let's just start with the weekly chart uh so you can see i have this blue line set here um that's going to be the seven EMA so the seven day moving average or seven period moving average uh so in this case it's the moving average of the last seven weeks um you know from where it is currently at so basically you know here you can see that we had a extension of 100 above the ten dollar mark right so the EMA was at ten dollars price was able to reach 20 so that's around 100 um on a two billion dollar asset uh it was around four or five billion actually during the time that it was up here so you can kind of uh measure overextensions based off of market cap um so for an asset that's relatively new um and it is uh being pumped for the first time essentially uh these you can give a little bit more room to when it comes to determining your overextension level so uh generally i would give like 50 or 60 percent before i would take profit and let go of uh believing that this pump is going to continue but here since it's never been pumped before and um we're coming off of a one-year long bear market the pumps are going to be a little bit harder but 100 above the seven EMA on the weekly chart is absolutely just insane in terms of like the amount of overextension that's occurring there so you know you can kind of keep your threshold uh around you know 60 60 to 70 percent for these smaller tokens that are around like one to three billion market cap um another general rule of thumb is to look at the daily chart so this is kind of how you zoom in right um you can see for the past about maybe that's around 30 days um almost actually it's 25 days we have not had many green days uh it's been a lot of choppy price action so um as if you were to have just used the overextension method and followed it with discipline um you could have just backed out taking your profits and chilled and waited for the price to come back to this EMA line before determining what you're going to do next so if you have the patience and conviction to wait 20 days without trading again after taking you know 30 to 100 grand profit uh for the last two weeks before then my friend you are starting to understand how to trade crypto but if you're not able to do that and you're not able to wait and you're constantly looking for trade oh I need to trade I need to trade I need to trade I had some guys DMing me saying like hey man why aren't you alerting trades like I pay for this group like why aren't you alerting trades um to see that's the thing about trading is you really gotta time it in crypto um you can see most of my trades they're generally um pretty large and when I do start trading we start hitting multiple wins at a time but um until we see those opportunities we're not going to make moves and try to attempt to beat the market when it's uh in this range right here um so you can see like it's just really not a great range to try to um make profits so you can see like this range right here is just this is not where you want to trade uh at all that's complete chop and that is how you burn your bleed your profits out um you want to trade ranges like this where it's just going to a chad candle every other day so this is the moment you want to trade and once things are over you're gonna have to take your money and sit back relax for a little bit and wait for things to chop out you could go you know as far as until next month that's the whole thing here so you're really gonna have to keep an eye out I would set some alerts but uh generally you know the weekly chart is what you want to use for if there's an overextension but here you can see that uh there's also for the daily the overextension requirements uh in terms of percentage are a little bit lower so you can see 20 versus 14 that's about um you know 20% potentially 30% of an overextension so the daily chart candle overextension requirements are a little bit lower but you can see that uh when it happened over here um the high was around 13 44 and the EMA was around nine dollars so um that's around like a 40 to 50 percent overextension so like for the daily chart it's generally around like 30 to 40 percent but since we're trading explosive asset like apt that hasn't worked before you're gonna even want to give it a little bit more room I'd say like 20 to 30 percent on top of your um original requirements um so yeah I mean that's pretty much how you milk the market right so you basically just need to have the uh perspicacity to see the breakout coming off of a bottom on a token that just hit the market that has a lot of hype a lot of highs around it so you wait for it to hit that bottom um well especially post IPO right so post IPO there's generally like a dump on overhyped coins because people are buying it early they need to get screwed first and then it's gonna come down then the real pump's gonna happen so um for me it was more about seeing the bottom out on sold because a chart like this is a lot easier to read on a bottom out uh relative to BTC so you know when when you see major dumps like this you generally just go long because the price is too cheap and the chart looks too good um and then you know when that bottom out occurred it's actually when this market started going up at the exact same time so that uh and then the fact that apt was you know a asset that was a l1 competitor to soul at a time where sam vape and free had just gotten locked up it was kind of primed to have the narrative there but um yeah I mean even that I'd say we chop around here for a little bit potentially dump down to like 11s or 12s at the lowest and then probably see some upside continuation on this token but uh other than that yeah um we could have waited you know we could have saved 26 days of downside chop like imagine if you're losing like just a grand or two a day that's a lot of money just because you're trading a chop not getting good uh a good spot to risk your money essentially that's all I've got for now if you liked what I have uh have to say here uh join us in the crypto chat at CryptoTraders.com if you're looking to trade stocks and options uh sign up for Xtrade.net so this concept applies to any type of trading um in penny stocks too you know mid cap stops stocks with catalysts they'll also have moves like this it's not only crypto tokens uh any two billion dollar asset coin can can go up um 700% and I'm just kidding that is generally a crypto thing but that can definitely happen in biotech and uh specific industries in in the stock market seen so I'd say these charting techniques are applicable to any format of trading as long as it's uh assets that are around you know 500 million to 5 billion um basically mid cap explosive momentum trades and yeah that's all I've got so join us at Xtrades.net CryptoTraders.com hit the like and subscribe button um you know support our channel support what we're doing here we're 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