 What is going on ladies and gentlemen and welcome back to another Bitcoin daily video guys today in this video? We're talking about bull flags. That's right. You know, I talk about them all the time I'm always mentioning bull flags when they're popping up in charts and this is one of the easier patterns to To trade especially for beginners when you're first starting out. You're trying to learn your patterns Bull flags is a pretty pretty easy pattern to trade and it's an easy pattern to spot So I thought that this would be a great place For a tutorial today to show you guys that you can pair up with our the momentum trading strategy that we put up for you guys This week as well. So That's crazy, right to in one a week two different trading strategies Once you start putting these things together, man, you guys are gonna start making some profits I am telling you so before we jump in please guys Make sure to subscribe to the channel hit that notification bell so that you're alerted as soon as we post our videos We try to post videos five times a week Monday through Friday With tutorials market analysis Trade setups all that fun stuff to make you guys profitable trade it right so Let's jump right in Real quick. We're just looking at this We have the the chart up on Bitcoin. You guys can see right currently it's at 19,000 for 44 and we have What looks like a bull flag, right? so Let's talk about that. Let's jump right in Let's go ahead and Launch this All right, so how to trade a bull flag, right? So bull flag and bear flags are the same thing. They're just on opposite ends and Once you know how to trade one, you know how to trade the other so We're just gonna focus on bull flags since that's what Bitcoin's been Doing lately for the past couple months so we're gonna talk about that and And you could you know, we'll touch on bear flags as well But for so the first thing is what is a bull flag pattern So a bull flag pattern is a chart pattern that occurs when a stock is in a strong uptrend, right? It is called a flag pattern because when you see it on the chart It looks like a flag on a pole and since we're in an uptrend. It's considered a bullish flag So obviously if it's going down and the trend is going down then it will be a bear flag A bullish flag pattern typically has the following features So the first thing is stock has made a strong move up on high relative volume forming the pole, right? Next is stock Consolidates near the top of the pole on lighter volume forming the flag and then last The stock breaks out of consolidation pattern on high relative volume to continue the trend, right? Hopefully that all makes sense I tried to break this down as easy as possible the stock has to move up Then it consolidates for a period near that top and then it breaks out of the consolidation pattern, right? So how to trade the bull flag pattern? I'm sure that's what everybody's here for, right? So the stock is surging up on high volume, right? Then the prices consolidate at or near the highs so You're going to enter a trade or buy when the prices break out Above the cons the consolidation pattern on high volume So you want to make sure that there's volume at the same time as a breakout, right? Then you're gonna want to place a stop order below the bottom of the consolidation pattern And then you're like always your profit targets should be at least a minimum of a two-to-one risk reward So if you're risking $50 then your first take profit should be $100 from your entry price Right, that's how you become a profitable trader Things to note when trading bull flag patterns the main thing to look for in this pattern is volume Okay volume confirms major moves and the likelihood that a breakout will be successful So if you see a breakout with no volume Usually that's gonna be a fake out and it's gonna drop right back down, right? The second thing you have to look for is a defined descending trend line that you can watch as a as the point of Breakout, right? So I'll show you that in a second Next is a bull flag patterns do have a Statistical edge if created correctly, but in the event that the setup fails you need to know where to get out So you always want to know where to get out from any trade. So this includes the bull flag pattern Next there are a couple different ways to manage this trade The most common is to place a stop below the consolidation area And then the other way is to use a 20-day moving average as a stop So if prices close below that moving average, then you would close out your position, right? Now bull flag versus bear flag a bear flag is identical to a bull flag Except the trend will be to the downside You'll have a sharp down move on high volume followed by a slight pullback before continuing on the trend The key to trading flag patterns is following the volume when volume comes in on the breakout You want to be jumping on board because this is confirmation that other traders were also waiting for the same thing and It will increase the likelihood of success Dramatically, so that's why you always want to follow the volume And then final thoughts bull flag patterns are a great setup for new traders to learn because they are easy to spot and Trade once you understand the mechanics behind them like most patterns of volume must be present on the breakout This confirms the pattern and increases the likelihood that the breakout will be successful So now let's take this into real time and Actually look at a bull flag pattern So the reason we're talking about bull flag patterns and not focusing on bear flag pattern is because we're currently in an uptrend So during an uptrend Bear flag patterns you don't trade them because you don't you don't want to trade against the trend So if you look at this pattern right here, this would have been considered a Bear flag right so it was a strong move down on high volume. Look at the volume. Look at the move Then consolidation so when consolidation happened volume slowed down and Then it would if if we were in a downtrend Then the likelihood would be that it would continue in this direction of this move, right? But because we're in an uptrend, right? We're in a bullish trend It did not play out and that's why you do not trade bear flags on an uptrend So when you're trending you always want to trade the trends you always want to trade the flags in the direction of the trend so when we're Bullish and the trend is bullish. You don't trade Bear flags because the likelihood is that it's not gonna play out as it's supposed to and it's just gonna bounce Right back up and form this v-shape recovery here, right? So As you guys can see here, we had this this drop then Consolidation and then it went back up, right? so now After this move up, right now we have consolidation again So we were consolidating again near the highs, right? So the high over here is basically 20k That's the top of this range, right? Now we're consolidating so the way that we play this is that we're waiting on a breakout here So we have the descending resistance line here Right that forms that top. So we need a break above this now this here. This is a Bull flag. This is also a pennant so A pennant these the the it's usually like a 50-50 calm which way it's gonna go But when it's put together with a bull flag now, you have a statistical edge on the direction. So Usually the probability is that it's gonna continue in the direction of the trend So because because the move was up the trend is up. We're looking for a breakout to trade up, right? So this is likely what's going to lead to the break through the all-time highs and to new highs So that's what we're currently watching and we're currently waiting for a break here out of this current bull flag That we're that we're looking at here in this consolidation. So What you're looking for here is a break basically above this right here. Let's see So we need a break pretty much above here But we also need volume on that move so it has to be a move with volume You see how we had kind of a push up, but there was really no volume here There's very very little volume. So we need volume with this And then our stop losses, you know on this trade will usually be either, you know Towards the bottom of this trend or at that 20-day moving average So that's pretty much it. I think we covered the majority of it what you guys need to know when trading bull flags You know, it's all about trading the highest probability so you always want to trade with the trend That's the first thing you're the first thing on your checklist to be trading with the trend That's why I never trade against trend And I never post trades against a trend in my trade group. I know a lot of people ask about Oh, why don't we short? Why don't we short? I don't trade against trend So that's why I don't short when we're going up when we're trending up When we were trending down the past two years before this then we were taking shorts, right? We're doing we're shorting Bitcoin and we weren't taking long trades We're only taking shorts but now because the trend has reversed and we're going back up now We're not taking shorts and we're only taking longs. So that's this currently what we're playing here We're waiting on a breakout from Bitcoin here and we're expecting that this bull flag is going to What's going to help us break through this all-time high and into new highs for 2020 and 2021? So that's pretty much it tomorrow We're going to do a full market analysis on what we're watching here And what we can expect over the weekend and the next the next few days And what trade setups we're looking for the exact trade setups that we're going to be setting up here over the weekend As we we get ready to for a breakout here soon, right? Because this is we're getting to the climax of this range So stay tuned guys appreciate you guys Watching this video for those who stayed to the end That's pretty much it y'all so appreciate you guys till tomorrow peace and love