Hello, dear traders. We continue now with the lecture for the counter trend line and basically this 1
is what our system will rely on. I will remove for the purpose of this lecture 2
now the instruments, so we have a wider screen. And simply, the counter trend line is the opposite 3
thing of the trend line. As you know the trend lines are lines that are coming with the direction of the 4
trend. 5
And normally, if you draw a trend line you should start from the bottom. 6
Make sure always when you are drawing trend lines to draw them exactly from the bottoms and the tops 7
of the bars. 8
So normally, we draw the trend lines this way by connecting 2 points, 2 lows and following the trend 9
directions. So as we said, we are in an up trend. 10
So, this one should be over here, and we are drawing the trend lines from below going to the side, to the up. 11
And with the Bitcoin because it is so aggressively rising recently, simply our trend lines should look 12
something like that. I will draw one more time over here and probably one more...yeah. 13
So, this is the last trend line that we are having. 14
So, the trend lines are the lines following the trend and they are showing the direction of the trend by 15
connecting at least 2 points. 16
Of course, if you have 3 this makes more sustainable the trend line. 17
And a lot of traders are saying that the original trend line is the one from the bottom but of course 18
this is for the Forex market. At crypto is totally different, specially the Bitcoin so aggressively rising 19
recently that we need to draw the trend lines this way. 20
So, these are the trend lines that are drawn with the direction of the trend. And the counter trend line 21
guys, are the lines that are going opposite. The ones that are going against the trend, OK? The ones that are 22
opposite of the trend lines. And that's why they are called counter trend lines. 23
So, I will remove now all lines that I drew and I want to stay only with the counter trend lines. So, that 24
I will keep my chart clean and empty. Every counter trend line, you draw it from the recent peak that 25
you have and a new point that was formed. 26
So, you can draw it over here. 27
When the price breaks this counter trend line, 28
guys, this is when we are entering into the market and when you have a new high you are drawing 29
a new line. 30
So, you can see here I can draw it from the this bar and you can draw it with any new top that is formed below 31
the starting point. 32
So, at this moment if I am on the market I have a new high and I draw the counter trend line when I see 33
a lower high. 34
OK? 35
And this is simply our entry point 36
when the price breaks through this counter trend line. It's very easy specially when it is so volatile and as 37
well with other cryptocurrencies. So, here you can see I can draw the counter trend line from this and this 38
top and here you see the price breaks progressively higher. And then again when I have a new high 39
I can move my line over here. 40
I can draw it first 41
with this recent lower high and then I can draw it here but no, actually this is a new higher high. 42
So, I cannot. I need to start from here and then I have this one over here. You can see how the price breaks. 43
And with the recent high we have this one over here, we can draw it first from here breaking again higher. 44
And then we can draw it from here. 45
So, one more time. 46
The counter trend line is opposite direction with the trend and you start from the newest high. 47
OK? 48
From the recent high that you have on the market and you connect it with the next lower high. 49
So, you can connect it one time from here. 50
And then you can connect it, one from here. 51
So, you can see the price breaks again and our entry moment, guys, is when the price breaks the counter trend 52
line. 53
Very simple, very easy to use, very easy to draw as well, and it works amazingly good. 54
OK, guys? Thank you for watching! I will continue straight away with the next lecture. 55
Cheers.