 What's up guys? This is Alex from Xtrades. It's been a while since I made a video and I'm actually excited to share this with y'all. I spent a couple days making some solid slides. We're going to be going over some technical analysis today. Kind of just back to the basics right? We're going to go over trend lines and basically how those play into wedges and triangles which are pretty much just basic trading patterns. I think they're essential. They show us continuation and they also show us reversals and just kind of give you an overall idea on sentiment. So let's go ahead and get into our first slide. So our first slide today we're going to be going over uptrend lines for the next couple of minutes. So uptrends are showing us. They're showing us a series of higher lows and higher highs as you can see. All right we got one test, got another higher low, another higher low and so on so forth. So basically the higher lows are holding up in a line and an upward slant showing bullish momentum. It's another basic gist of what an uptrend line is. Price needs at least three tests and touches on the line to validate the trend. So we got one, two, three and we have a valid trend right here. Now to find a trade on an uptrend line what will we do? So let's say we have an uptrend line with let's say already two tests right? We have our first test, second test. Let's pretend that this area is not here yet. So we already have two tests. Price comes up and once price returns for the third test we're going to be looking for a trade right there. So we'll be looking to go long right here. When price comes back down and hits the trend line we maybe look for like a like a reversal candle kind of to show us that you know buyers are starting to push up the wick a little bit and that we have confirmed pretty much confirmation on our bias to upside. So we can go long on the third confirmed test touch at the line. I put that bolt in because we would wait for our two tests and then once it comes back we go long off the third line and we can catch some upside. Now there's another trade you can do. You can go short when price breaks the line. So you know after our third test you know buyers kind of run out of control here comes back to the line breaks down we can go short right here. Once you you want to have a confirmed candle outside the trend line though. So if you even wanted to wait till it comes back up and rejects off the back end kind of like a back test play you could do that too. You could go short up here off the line and then have some follow through to the downside. Now for downtrend lines same gist just a little bit different. I think people through downtrends it's kind of scary because everybody has you know that uptrend bias. Everybody's you know hoping for the market to go up but these simple lines can help you kind of get over that fear of the market going down because you'll have something to work off right. You'll know where it's going. So for downtrend lines price is showing as a series of lower highs and lower lows right. We're going down steadily slowly making lower highs and prices also making lower lows and to identify it you see that the lower highs are rejecting off the line and the downward slope showing bearish momentum and if you are newer and you don't know what bullish and bearish are bullish is pretty much our sentiment word for upside bearish our sentiment name for downside and same thing with uptrend lines price needs three tests and touches on the line to validate the trend and I'll go ahead and touch on that here so you have one test two three four and if we're trying to find a trade off a downtrend line obviously if you're trying to trade off the third test you'd be going short because once you already have your test one test two and you're waiting for price to return for test three your test three is what's going to validate the downtrend so you're going to want to go short there and also you can go long when price breaks out so this is a perfect example on fcx so excuse me my throat and now excuse me I'm a little under the weather today so so we have test one test two test three test four price comes out back left for a fifth test but you can see we got a buyer's candle coming in right here you can tell that buyers are starting to push up a little bit here and once price breaks out of the downtrend we could go along right here and same thing how we covered with the uptrend line you can wait for it to come back to the line do a back test and you can enter off of there or I mean if you have your confirmed candle outside of the trend you can go ahead and enter on the first candle just don't be surprised if you enter on the first candle it might come back down test the line back test then go up so similar to what you saw with the uptrend line you saw if we went back you know it it broke the uptrend line came back up to the line whipped off of it and now it's coming back down so now just because you know we broke out of a downtrend doesn't always mean that that's a confirmed trade right um still need to have a stop loss so here's a good example of why even good setups can fail so we got three confirmed tests on the line right just like we need two one two three we got a nice bullish candle breaking out you know right when you see that somebody's getting my rush to buy you got a little bit of an increasing volume over here it attempts to break out twice and it attempts one back test on the line so broke out came back try to break out again came back back tests right here and eventually fails so overall this breakout failed and highlights why you should have a plan and a stop loss just in case and this gave us everything that we needed you know to go ahead and take a long once a broke out but you got your three tests broke out bullish candle attempts again got a back test you could try to enter off there and still still breaks down so if you wanted to keep your stop loss I like a support area like right here about 64 even just an example but I just want to show you guys you know not everything you know is all good and flying unicorns and trading just because you get a setup and it looks good doesn't always mean that it's going to play out so now let's get into wedge patterns so uptrends play I'm sorry uptrends and downtrends both directly play into wedge patterns and triangle patterns so these next slides are going to show us why all right wedge patterns bullish and bearish we're going to go over all of them so we got a falling wedge that we're going to be covering which is a bullish pattern we have a broadening slash falling wedge which is also bullish we have a rising wedge which is bearish we have a broadening rising wedge which is also bearish and for our first pattern here we have a falling wedge so a falling wedge is a bullish reversal pattern especially for this specific setup you can see that you know we went into some consolidation for let's see since early 2021 all the way to September so that's about nine months of consolidation some may even say that this could be a continuation pattern because of the overall trend prior right and then it consolidates and then it's going into continuation it really just depends I guess it could play a role with the timeframes and but overall falling wedge can be a reversal pattern or it can be a continuation pattern depending where the trend is up so price consolidates downward into a tight range while making lower highs and lower lows which is exactly what we have here and you can see how just like our uptrend and downtrend lines we have three tests on each so that kind of validates our pattern so for falling wedges buyers step in and sellers eventually get exhausted in the downtrend after seeing lower lows starting to flatten out and create a bottom so you can see lower highs lower lows and then right here is where we start to see the trend kind of flatten out right we don't have a test on the bottom line we actually see it going towards more at the middle so that's essentially flattening out and buyers are starting to step up and sellers are also starting to get exhausted your entry for this trade is right at the upper trend line breakup so just as easy as that but you know just like you saw in our downtrend fail breakout example you would still want to have a stop loss maybe you'd have it right here at your pivot low or if you wanted maybe under you know somewhere nearby it's really just depends on your risk tolerance obviously you'd want to wait for confirmation also so it'd be after this weekly candle closes so after your first one so your entry would have been on the second candle right here and this is a falling wedge bullish pattern all right and this is a broadening falling wedge also a bullish pattern this would be considered a bullish reversal pattern this specific example but it can also be a continuation pattern depending where the overall trend of that so if this were going in an uptrend and it made the broadening falling wedge and then continued up while still holding the original trend that would be a continuation pattern in this example we have a pretty decent amount of selling for a while we're in a clear downtrend um there's no prior trend we are holding up so and these are also known as a megaphone pattern you might have heard that term before as well so basically a broadening falling wedge you have price expanding downward into a wide range while making lower highs and lower lows so you saw in our falling regular falling wedge price consolidates into a tight price range well this is going wide so you still have your three tests on each line right you got test one test two test three test one test two test three on each side buyer step in and sellers eventually get exhausted as they see lower lows starting to flatten out create a bottom so similar to what you saw um on the falling wedge minus the consolidation so you can see right here in the middle we start to flatten out a little bit the lower lows aren't going any lower put in almost like a higher low right here and that's where buyers are going to start stepping in and then we see falls through with the breakout and your entry could be when it breaks out over here or you can wait for it to back test if you wanted to be early and you don't want to wait for the back test you'd enter on your first confirmed candle closed outside the downtrend line all right now we're getting into our first bearish pattern which is a rising wedge so this example is a bearish reversal pattern um this is taking a direct reversal can also be a continuation pattern depending where the trend is so if we were going in a downtrend and then it starts to rise up and form the same consolidation as this and then falls more that would be a continuation it'd be kind of um i don't know if you guys ever seen a bear flag but similar to that but in this case this is a clear reversal trend we were in an uptrend right and then we finally break down so for rising wedges price consolidates upward into a tight range while making higher lows and higher highs and just like all our others just like our regular trend lines we have three tests on each side one two three one two three even got a fourth right here sellers step in and buyers eventually get exhausted in the uptrend after seeing the higher highs starting to flatten and top up so we could see higher highs are getting smaller with each test kind of flattens out right here buyers especially get exhausted right around here start to break down towards the line and your entry it would be right at this first confirmed close outside of the line so um you could even maybe wait until it attempts to bounce and gets closer to the line just like the back test we saw in the uptrend um you know the uptrend breakdown came back up tested wicked off of it and then came down you could do that you could always enter off the back test if like i said before you just want to be early you know you could enter on your first confirmed close candle outside the trend all right now our second bearish pattern we got a broadening rising wedge in this example it's also a bearish reversal pattern can also be a continuation pattern depending where the overall trend is that just like the others in this case it's a clear reversal we're always in the uptrend and stuff eventually changes um buyers get exhausted yada yada yada and we break down um if you were already in a downtrend and then it makes the broadening rising wedge and then breaks down some more there'd be a continuation pattern for a bearish trend that already exists but in this case we're in an uptrend so this is a reversal so if you guys can remember that um they can be a reversal pattern or they can be a continuation pattern just always check your trend um not that it really matters because you're going to be taking an entry anyways um you can just come back to this video or even a simple google search probably you could remember where to enter correctly so this is also known as a megathon pattern price expands upward into a ride range making higher lows and higher highs so similar to our regular rising wedge except we're expanding we're not consolidating into a tight range we're just expanding and just like all the others you got one two three tests one two three tests that verifies our wedge sell or step in and buyers eventually get exhausted as they see the higher high starting to flatten the top out so you can see this would be the area where buyers are starting no more higher highs stuff's flattening out you can clearly tell that you know it's probably about the breakdown but still i would i would still wait to enter on the trend break i know it got a little goofy right here so we attempted to break down it failed try to come back within the trend and then just totally failed um obviously this probably shook a lot of people out but overall you know your broadening rising wedge still played out and had a pretty steep flush and you know always make your own price target so you can use these pivot lows on one of these so if you enter down here you can exit around here get exit around here you know just find your regular support and resistance make a good target and don't get greedy and just like i said before your entry would have been right here but you can see how broke down came back up blah blah blah all right now we're gonna get into triangle patterns all right triangle patterns bullish and bearish so we have a sent an ascending triangle which is bullish we have a descending triangle which is bearish in the examples i'm about to show you by the way and we have a symmetrical triangle which is bullish or bearish and i just want to throw this out there this ascending triangle and this descending trial triangle can also end up being a bearish pattern so triangle patterns are actually bilateral they can break in either way but as long as you know you're sticking to um what i'm about to show you you don't have to worry about guessing or anything so in this specific setup this is on else in so this is a bullish continuation pattern can also be considered bilateral and what i mean by that is if this support or i'm sorry this resistance was in the way and it rejected off and broke the trend this would have ended up being a bearish pattern so any any bullish pattern can still go the other way but these triangles specifically are considered bilateral but i mean if you as long as you're you know paying attention to your entries you won't have to guess if it's going to go up or down you just wait for confirmation you'd wait for this resistance to get broke and you'd enter up here so you don't have to guess or you don't have to wait for it to break down or see what it does so an ascending triangle price is making an uptrend right we have our one test two tests three tests and we also have flat top resistance so eventually sellers get exhausted at the resistance line causing a blow-off top breakout and a rush to buy and as you can see on this first breakout candle insane volume total rush to buy of FOMO starts kicking in and you can see that this this setup was beautiful and i'm pretty sure it even had a catalyst to go with it so i had good news plus volume plus the setup you know it's a it's a no-brainer you could have entered right here held for a couple days and you would have been good and like i was saying earlier because this pattern is bilateral it's recommended to wait for confirmation of direction you don't want to be stuck in the wrong side so you don't want to enter off your third test for this for this setup because what if it just i mean what if you i'm not saying that it's always going to happen but what if you entered right here and i just totally broke the trend i mean you don't want that you'd rather just wait for the confirmed setup so you'd rather wait for this candle to break you know you could enter on day two or you could enter near the close you know you could get shares or you could get you know time on your contracts on your call contracts and you could just sit on them for a couple days and you know deep down in your heart and while you're sleeping and you could sleep good because you know you have a solid setup and you waited all right and similar to the last pattern we just saw the ascending this is a descending so this is doing the opposite this is a bearish continuation pattern can also be considered bilateral same thing um i've seen plenty of these where they have the downtrend line we have a flat bottom support and we break to the upside but i mean as long as you're waiting for confirmation where you see this bubble right here you don't have to worry about that so descending triangle's price is forming a downtrend and also has flat bottom support just like you see right here we have solid support multiple balances you got your three tests on your downtrend line validating it so with this eventually buyers get exhausted at the support line um you can see right here there's really not that much buyers volume and then eventually they get exhausted at the support line cause a breakdown and a rush to sell and that's when everybody panics so on this um since you want to be waiting for confirmation um there you go one second i'm sorry i'm getting my laptop on the charger here all right all good all right since you want to wait for confirmation um for this setup you'd wait for your first candle to have the closing price under the support so as soon as you get your first candle which is right here where you see the green bubble right here so it would have been your entry to go short or you could get puts whatever you want to do and like i was saying earlier because this pattern and all other triangles they're bilateral they can break in either direction um um this is your bare biased descending triangle even though that it can break upside since you have your confirmed candle closed under the support you know that this is a bare bias trade so you can honestly safely probably go short or buy puts um obviously still have your stop loss still know what you're doing you know manage risk accordingly but you technically once you have that closing price under here you waited you know for that confirmed setup and it's the same thing i said earlier you don't want to be stuck on the wrong side so wait for confirmation and this is a symmetrical triangle this is also a bilateral pattern so it can break either way and that'll depend on the direction of the breakout so if we break down the uptrend it's obviously gonna be a bare pattern you can go short buy puts i actually bought puts on this pl pltr wedge um as soon as i saw this first weekly candle close i think we entered about right here and just swung it for a couple of days i think i made like 46 percent or something so all i had to do was wait you know um i would have done the same thing if it broke upside it so if it broke out of this upper trend line i would have bought calls it's on the first weekly candle close outside so i would have done the same thing on either side and that's the cool thing about this wedge as well or i'm sorry this triangle um as long as you get that confirmation so it's a good setup so essentially for a symmetrical wedge price consolidates into a tight range while making lower highs and lower lows horizontally across the y axis so with all the other wedges you know you're kind of going up and you have the resistance in the way for a blow off top the other one you have flat bottom support downtrend and it's going but this one's going horizontal across your y axis so you can kind of see how it's got equal equal lengths on the trend line um you still got your three tests on each side so one two three one two three and you want to wait for confirmation of direction same thing as the other ones so in the setup you know we entered on the first one week candle close so we entered on the second but we entered as soon as we saw this one close and then monday i believe i think i opened up right here on the second one i'm pretty sure that was the last slide though guys i think we went over all the examples yep yep yep i hope you guys enjoyed that um i know it's kind of for more beginners and you know people are kind of just getting into technical analysis but i think it's essential to know these patterns and you know there's so many more but i really just wanted to tie into simple uptrend lines and downtrend lines and tie them into wedges and triangles because they play a direct role and the simplicity of them you know having the one two three tests and touches on each line that plays into how a wedge forms and um you want to have every edge that you can get you know you you want to be ahead of the market you want to know you want to see what other people are seeing you want to see what the algorithms and computers and market makers are seeing and you want to follow their coattails so thank you so much for watching um i hope you guys have a great weekend i know we had a shortened week um this friday was a little stressful right we had you know just outstanding volume and just crazy downside um i know the computers had a ball selling off but um hopefully you guys you know didn't go too crazy you know if you had some losses kept them small if you had some wins you know kept them relatively just not getting greedy you know we have a full week next week so that'll be great and i really hope that you guys can implement these patterns into your trading so and if you ever need anything anything at all if you need to go over these again um we can go over live examples in my dms um we could do whatever you want so it looks like we went over about 15 slides today i really hope it covered everything for you and uh my name is alexander underscore 96 on x trades discord if you need anything just uh dm me add me as a friend holler at me in the main chats whatever you gotta do all right guys thank you so much