 Well, hello, X traders and we are going to make a quick trade recap, if you will, it's I actually have it because I started writing it down on a document over here. So this is what I actually want to start out with. So I'm basically comparing Baba and Spy, but the reason I'm comparing them is because because of mainly price action and MACD. So a lot of times people will obviously take an indicator and, you know, basically go all in and start trading based on the indicator and then pay attention to nothing else. And eventually they'll run into, you know, analysts or experts or traders with a lot of experience will tell them, well, you can't base your trades solely on an indicator. And, you know, you basically come to the conclusion that, well, it's actually a combination of a bunch of stuff. And usually you'll hear the combination of price action, volume and some sort of indicator. Well, here was a perfect example. And I was looking at Baba because Baba was alerted today and I'm trying to see if I can make this a little bit bigger on screen. We're actually going to look at the chart in a little bit, but I kind of wanted to save some of the spoiler excitement by looking at the actual initial chart. So basically Baba was hitting or hit today, which is May 11th, by the way. This would seem to be resistance right here, the yellow line, which is the resistance that I had. Which is also the purple, it happens to be the purple line, which is the point of control line. So that's a resistance zone or area there. And one of my indicators on TradingView marked it as, well, as a swing, you know, as a swing point. And lo and behold, a few minutes later, and then, you know, it came back up to that resistance level and bounced off of it again, or seemed to bounce off of it again. As you can see, it wicked right there. And so we run into the, you know, the whole deal of, is this going to break through that resistance area? Or is it going to be a double top and then just, you know, melt down, basically. Which is why I had ad-written in my notes here, you know, was it going to go, keep going up? Or was it just going to melt back down under after breaking out maybe a little bit? Or just immediately, not even without, with a breakout, you know, just bounce back down. So looking at the MACD, if you can see here, the MACD is obviously trending. It's above the zero line. And the fast indicator is above the slow indicator. So because both lines were above the zero line, then we could take this as, well, yeah, it's already above the zero line. So if this price action is moving, or trending in an upward fashion, and it is above the indicator, then above the zero line, sorry, then it becomes a valid trend. You could still get this, you know, this price action happening. But if the lines are not above the zero line, which is what the MACD indicator basically requires, then it's not a momentum that is going to carry through, right? So I was basically faced with this, right? So, okay, so it hit once. It looks like it's hitting again. And actually, if you can see here, because this was a few minutes later, this is already showing the next candle to be a bullish, well, yeah, it's a green candle, right? And it seems to be wanting to break through that red horizontal line, the resistance that the indicator drew. So basically, you're sitting here and you're trying to decide, well, is this thing going to be a double bottom and head back down, you know, in which case you probably want to buy puts, or is this going to go through, you know, break out and then you want to go long. So what I did was I'm going to jump over to SPI without before coming here, because SPI was doing something similar. Look at this. It came up here and it hit this line, which was drawn again by my indicator as a new swing. And we have this previous swing resistance drawn here by the same indicator. It's just that it's in the dotted line because it's from previous session, okay? And it actually kind of overlaps with this one as well. So this whole zone here, all right, is obviously a significant zone that is being marked as, in this case, resistance. And it could become resistance if it hits once. And then it keeps trying to hit again twice and then it looks like it's heading back down, right? But look at the MACD lines in this case. In this case, only the fast one is above the zero line. The slow one is still below and that is key, because that means that this trend might not have enough momentum to actually break through, okay? So what actually happened, and this is why this is a quick video, on BABA, as you can see, we were looking at this pattern here, which is back here, all right? That's where it hit the first time. This is where it was hitting the second time and that candle actually broke above, as you can see here, quite clearly. It broke above with a very bullish candle, but it immediately ran back down, right? So that's fine. You wouldn't have taken the trade here because you're not sure if this is going to go melting all the way back down or breaking through back up, all right? But the indicator had told you that it was above the zero line and that therefore the uptrending momentum should be the valid one, okay? Otherwise, this indicator would have been below the zero line and it would have been more of a down trending or just a simple undecided, right? So I went ahead and I took the trade, right? I actually believe I took it somewhere back here because I saw, basically over here, because I saw that it was indeed trending on the MACD indicator, okay? And it did break above and then immediately came back down, right? But it didn't break my stop loss or my exit level, which is right here. You can see the trading view tool. This is the red area. This is the entry line. You can sort of see the faded green up here all the way up to here, which is where my arrow was pointing towards. So it never broke below my exit level, so I did not exit, all right? And after that, as you can clearly see, those MACD lines were still above the zero line. They stayed above the zero line the entire trading session, right? And it hit back down here. It bounced up against this level again. So this was a very strong resistance point. It came back under. It didn't go below the previous lower low or higher low, sorry. This was the previous higher low. So it came from this low to this low, which was higher to that low, which was higher to this low, which was higher. And it broke through above and it finally managed to stay above. I'm still on this trade because it was a swing trade, if you recall from the alert that was posted. So this is very clearly reinforcing the idea that the MACD indicator works as long as you combine it with the price action. It's basically telling you that the price action trend is indeed valid, all right? And what happened with SPI? Well, as you recall, only one of those lines was above. And as you can see here, right? This is the first three candles that bounce off of this level. Here they are, first three candles off of that level, all right? It tried to go back up. It failed again because remember this is not just a level. It's a zone, right? It tried, failed again. It tried a third time and it failed a third time. So basically after this, if you want to call this a local double bottom or this entire thing a triple top with that MACD line, the slow line being below the zero line for when that happened. And it started to go above the zero line, but look at how the histogram shows how that momentum really died down. This was not a very positive image, if you will, for the MACD. And I believe that's the last one I have, the last image I have. So I'm going to move over to the chart now, but this is what they ended up doing, okay? So here is the Alibaba one, right? And you can see it hit once. This is right on this candle is where I took the trade and it broke above and then it came back down and it hit that second time again, broke above, but barely closed on the entry line. And then from then on it broke through and it was able to break through this other, which was basically the upper resistance line of this whole zone right here. It's not letting me for some reason. All right, there it is. Okay, so this is after hours, right? And it does seem to have dipped below this area right here but not below the whole zone, so I'm still good on this trade and it immediately came back up. All right, so I'm waiting for this trade is going to happen. I'm going to close it out tomorrow. And let's see, let me see if this is going to let me, yep, spy one, how it ended. It actually did bounce back up, but not before or not just before melting down. This is what it looked like. Let me wait for my indicator. It just basically melted from there, right? And it did recover, but look at that. It recovered and even though it did recover, it basically recovered what it melted. So we want to make sure that you're combining your price action with something like the MACD and that's a perfect example. Don't just use the MACD because the lines are above. It doesn't mean that it's trending up because price action is moving up. It doesn't mean that it's trending up. You need at least two to confirm the price action and one of the indicators in this case, the MACD. So I hope you found this useful and implement this in your trading and I'll see you on the trading floor. Have a good one.