Home Trading Strategies How To Buy High And Sell Higher (My Secret Technique)

How To Buy High And Sell Higher (My Secret Technique)

How To Buy High And Sell Higher (My Secret Technique)

hey hey what’s up my friend so here’s the thing right many traders think that to make money in the markets you need to buy low and sell high well that’s true but it’s not the only way to make money because you can also buy high and sell higher and that’s what you’ll discover in today’s video right specifically we will talk about the secret to buying high and selling higher with low risk then we also discuss right the reason why most traders buy high and lose money and how you can avoid it and also we’ll talk about the one thing the one thing that I always look for before I buy it high prices if this one thing isn’t present I almost always will skip the tree so all this and more in today’s video but first right if this is the first time you’re watching this video or you are regularly watching my videos hit the thumbs up button and subscribe to my youtube channel the link is all below just click subscribe this way whenever I publish a new video you’ll always be updated and you’ll never miss a thing right sounds good then let’s get started now the first thing is that a mistake right that traders make whenever they buy hi is this let me share this with you okay so you look at this chart this is the chat of Bitcoin and traders they look at this chart and they say oh man Bitcoin it’s so bullish right you know I need to get on bought this move right because you know if I don’t if I don’t buy now all right I will miss the move up higher right so I need to get on this trade right now look at how bullish the market is look at a strong bullish momentum right a large range candles I need to be buying right now so that’s what a lot of traders will do did they buy at this high price at around 80 $200 level and after they entered the trade the bitrate then they think to themselves okay maybe I need a stoploss way should I put my stop-loss hmm okay so so they look at a chutney they would know right traders we are not done right they were not intuitively they need to set their stops right at a logical level and they they know that since this is an app an uptrend their stop-loss should go below the previous swing low so ideally right somewhere about here below this previous swing low over here so somewhere here and then limiting to themself but if I were to set my stops at $4,800 my stop-loss is – while it’s gonna be from here to here this is gonna be my stop loss and they can’t swallow that kind of loss okay are you with me so where would they put their stop-loss well since they can’t accommodate such a huge stop-loss they would just randomly put a stop loss to feel a safer in their mind so they put their stop-loss somewhere here or maybe somewhere here right so at least they have a stop loss all right so if the market goes against them right they they can you know contain the damage and that’s what happened right the market more often than not it goes against them they get spiked out on the trade okay you can see over here they get spiked out of the trade and then the market continues to rally anything they will say oh the market is rigged right why does this always happen to me right the market is unfair brokers out against me but no it’s they are the ones right who are rigging the game against themself okay so first and foremost right the biggest mistake that traders make is that they are chasing the markets when the market is bullish when it’s high they just want to buy the fear of missing out and after they bind then they wonder where should I put my stop loss and by the time they realize that a logical place to put their stop loss is too far away so they put a random stop loss on your chart and it gets topped up on the reversal before the market continues higher so this is the mystic right that I want you to avoid right yes you can buy high but you don’t just want to buy high at any random point in your chart because when the pullback comes more often than not you will get stopped out okay so this is a mistake that many traders make right don’t buy high for the sake of buying high okay don’t chase the markets in fact what you should do instead right is this let me share with you right now okay don’t make this mistake don’t chase the market what you wanna do is again wait for a build up to form so what is a built up so a built up is essentially a tight consolidation on your chart let me just no draw it out illustrate to you so build up looks something like this or blessing the market is in a range then this is what I call a build up a nice tight consolidation a build up can occur and the highs of resistance it can occur after the prices broken up there are different variations to it right but the key spec writer I want you to pay attention to is that a buildup is a nice tight consolidation I’ll explain why I look for a build-up later on but another variation of a build ups it can be in the form of a flag pattern can be ascending triangle or descending triangle so a flag pattern will look something like this okay so let’s say the market it breaks out of the range and a flag pattern right will be at forming a build up right usually in a build up the range of the candles are relatively small you notice the range of the candles is nice and tight right the tighter it is the better we don’t see does that work no a strong reversal move lower with a large momentum can no there’s not what I call a built up a build up is usually nice and tight which I will share with you a few examples later on so another example is a flag pattern this is a bullish flag or it can also be in a form with of a descending triangle like this okay ascending triangle so you can see that at this point of a series of higher lows coming into this area of resistance so this is another variation of a bill up because notice that the range of the candle seal getting tighter and tighter and descending triangle is just the opposite of this over here so now the question is why why wait for a bill up okay number one because it improves your winning rate so if you look at this right a build up okay you can see that over here is a nice tight consolidation and if you analyze the price section of this right what is the market telling you well number one you know that the price is at resistance and it resistance right traditionally what should happen is that sellers should come in and push the price lower but the fact that the price is forming a build up a resistance is telling you one of two things number one the selling pressure is not strong that is why the price can still stay in resistance or number two buying pressure is coming in that’s why they are willing to buy at this higher prices or I’m willing to buy this higher prices right whether it’s number one or number two it doesn’t matter what matters is that this is a sign of strength and there’s a good chance that if the price breaks out of the highs the market would continue higher why is that also remember prices at resistance traders who go shop and where would they look to put their stop-loss but the highs above the hikes so in the price trades above this highs this cluster of stop-loss is in essence right actually by stop others anyone see triggered right you would have a more so-called fewer fuel to push the price higher so this is why I look for a build-up whenever I treat a breakout or whenever I look to buy high and the second thing is that it would increase or rather you will have higher are multiples on your trade so I’ll show it share this with you right right now so you can see the point I’m trying to bring it across so if you look at this over here okay so a buildup you can see at this point there is a build up here at Bitcoin so notice the price are making a series of higher lows into this area of resistance and notice it in the right most age right this is where the price really got really tight right notice the range of the candles here are really nice and tight compare that to the previous trade and you’ve seen earlier where cheetahs traders are chasing the market let me just illustrate back up to the pointing here where traders they are chasing the market notice the difference in price section notice notice the volatility of the market one is market is hugely volatile large body candles strong momentum whereas on the other one with a built up market volatility is low range of the candles is small and you want low-volatility environment to be to be trading breakouts to be buying higher this point yeah you’re also buying high because you’re buying near the heights of resistance you want to be trading this type of particular trading setup number one again it’s a sign of strength buyers are willing to come in and about to push the price higher number two it’s important your stop-loss right is now an illogical level you can just set your stops all right let’s say for example you can connect the trendline over here something like that you can set your stop loss maybe just a distance below this swing low possibly somewhere about here there on the 3700 melt $3,700 level can you see the the difference is stop-loss this one will be let’s say you buy it 4200 stop-loss at 3700 that’s about a $500 stop-loss compared to this one over here where you saw earlier where you’re chasing the market let’s see for example over here right let’s see you buy the break out of this heist okay and your stop-loss now let’s say you said it right referencing this low let’s say it’s at six thousand dollars level you buy it eighty four hundred six thousand dollars stop-loss there’s a stop loss of two thousand four hundred dollars level okay so you can see they when you buy with volatility of the market is is huge your stop-loss alright a logical stop-loss will require you to have a minimum of about 2400 level 2004 Adonis whereas the one with a built up right this one over here by the breaker of designs you can set your stop loss right it just distance below this low somewhere here your stop-loss is just about $500 for this one with a build up okay so now what’s the implication of this so we recall earlier I say that when you treat breakups with a build up when you trade up with a build up right your are multiple is more favorable to you because if you think about this right when you buy it this uh this area over here for every five hundred dollars then the price move in your favor that’s a profit of one arm in other words a one to one risk reward ratio if the market moves let’s say five thousand dollars in your favor that’s a risk reward ratio of one to ten on the other hand if you would you be buying when volatility has really expand right where your stops is large you can see that let’s say the market mix a five thousand dollar move that is a risk we will reach off you know slightly more than a one to two ratio ratio compared to this one which is a one to ten risk reward ratio can you see how much more you need the market to move in your favor before you earn a one to one risk reward ratio can you see this right and this is the difference between trading with a build up and just blindly chasing the markets okay this is this is important okay trading we’ve built up the money improves your winning rhythm number two it improves your are multiple on your train it’s clearly based on this example over here so let me share with you another example of a bill up okay so you can see over here this is another one so you can see that brand crude oil this point this is another build up over here range of the candles getting nice and tight in fact if you look analyzed this closely there’s a series of higher lows coming into this highs as well so this is somewhat of a ascending triangle again this is a nice tight build up right and you want to be buying the break up of the highs and if you compare this time of you know built up it’s much better than just chasing the markets blindly where you don’t have a reference point where you can set your stop loss on where the reference point is too far away okay so this is very important lesson and just one more final example you share with you it’s this one here look at in this chart the pound yet okay so at this point let me ask you will you want to be shot in this market we’re gonna be selling in this loss you can sell low and cover lower but at this point based on this chat do you wanna be selling at this low price well I hope you say no no why is that think about this right okay back to the concepts that we have you know shared earlier if you’re gonna be selling right now okay let’s say you sell over here where is the logical place to put your stop-loss well you know that this is in a downtrend and technically in a downtrend it makes a series of lower highs and lower lows so if you wanna set your stops it should at least go above the previous swing low and the previous swing low is this level over here okay so you would one set your stop-loss just above the previous swing low usually give it some buffer so let’s say somewhere here so you can see that this is your stop loss and this is where you are going to short so in total this is basically the size of your stop-loss and as you’ve seen earlier the larger your stop-loss the more the market has to move in your favour before you earn a one to one risk reward ratio do you want to do that so what do I suggest again remember rhiness it wait for a build up to fall okay so there are different ways this could happen so let me just you know share with you a few hypothetical example number one one could happen is this market let’s say it start to form a build up maybe forms like a flag pattern a bear flag pattern right the market trades up higher small range Kendal’s like this and then it continues to break down the lows over here right breaks down the world so at this point can you see the difference now if the market breaks down lower you can go Shawn and now reference this highs as your stop-loss right this is still this is now the previous swing high which is the logical place we said your stop loss and your stop loss now it’s much tighter this offers you a more favorable restoring one on your tree right the market doesn’t it need to move a lot right for you to end a one-to-one reason what ratio okay so this is what I mean by waiting for a build up to fall right where you can actually have a logical structure level and your chat to send your stop loss and your stop loss usually be pretty tight nice and tight okay so this is for the pound yet okay so this is what I mean right by improves your winning rate and you earn a higher are multiple on your tree and also right improve your winning rate back to the pound yen example let’s say you saw this price action structure where you know you can have somewhat of a Bear Flag over here okay nice tight range candle and the market rates lower what is this telling you all the it’s telling it the market right the buyers are unable to push the price up higher okay selling sellers are willing to sell in this lower prices to contain this lower prices and the market doesn’t have the strength to really higher so this is clearly a sign of weakness bias they’re unable to push the price higher okay so when you wait for build up to form right it’s really so-called confirming to you that you know sellers are still in control and you want to be looking to shut the market on the break down plus you have a favorable location to set your stop loss by referencing this highs over here okay let’s talk about exits right so now you know how to buy high and sell higher and you know what we know sell low and cover and lower so how do you exit your tree so usually when you are buying high and selling higher right the market has already spoken by is telling that it’s either in an uptrend or downtrend so if it’s let’s say it’s a let’s say in a downtrend in this example right you want to be able to write the move for all it’s worth so how do you do it so back to this one here I can see that this is the the pound yen chart you can see that now right now market is in a series of lower highs and lower lows so one very simple training to trill your stop-loss is based on market structure so you know that in a downtrend it tends to make lower highs and lower lows so at this point you can see that the market this is the previous swing high so what you can do is set your stop loss right above this previous swing height okay and let the market continue to you know work for you so when he retrace comes back down lower now you can reference this swing high to set your stop loss we can just set it a distance above it like here and if you continue down lower now you have another level to set your stop loss right above this recent swing high which is somewhere over here so this is what I mean by market structure letting the market move letting it show its hand right and then using it those reference points to set your stop loss so this is the first technique the other technique that you can use this is the moving average so moving average in a trending market are in excess the dynamic support resistance so you can see over here the 20 ma on the pound Ian right it tends to I guess the dynamic resistance where the price tends to no bounce off bounds off and it’s a good chance if it comes back and test for the time it could bounce off from it again so let’s see the moving average comes down lower market comes up higher okay at this point right you can use this moving average to set your stop-loss I possibly just giving it a distance a buffer away from it possibly somewhere about here this is where you can set your stop loss in reference to the 20-period moving average so these two techniques right what it does is to help you write the move down lower right the trend down lower when you’re looking to buy high and sell higher so you look back to the other example the one hand I think was a Bitcoin okay where the price was really high where is it here okay so you can see that over here Bitcoin again use the same concept you can use moving average you can use structure so you see it over here when the price broke out let’s say you bought a breakout over here or you buy the breakout over here that doesn’t matter okay depending on where you got in your entry you can reference the previous swing low to send your stop-loss so it this is previous swing look to set your stop loss okay let me just go through the whole chart right this is the previous swing low to set your stop-loss the previous swing low to set your stop-loss the previous swing low to set your stop loss and you might have gotten stopped up on your trailing stop loss and this disjunction where the price breaking close below the previous swing low of course depending how much buffer you give below it so that’s one approach the other approach you can use is the 20ma as well all right at this point the market clearly breaking close below to 20ma and you probably would have you know gotten out out of the trade as well a winning trade no doubt okay so this are you know basically the few things that I want to share with you when it comes to you know buying high and selling higher so let’s do a quick recap okay number one don’t chase break houses Illustrated earlier if you chase breakouts okay number one you would have a logical place to set their stop-loss you might know where’s the logical place to set your stop loss but you know the that once you really enter the trade right the logical place to set your stop loss would cause you to lose too much money and you probably would even you know adhere to their level so don’t chase break out instead trait breakouts with a build up right if you gotta buy high and sell higher let them let the build up form for us to give you a reference level where you can set a stop loss and finally right if you wanna you know write in a move for all it’s worth right especially when you’re really buying high when the trend is really in tech right you want to trill your stop-loss to write in a trend a couple of techniques you can use is the moving average and the market structure sounds good okay so so we that’s it I have come the end towards the end of this video if you enjoyed it hit the thumbs up button and hit that subscribe button below this way you know you’ll always be updated whenever I publish a new video feedback comment let me know below and I will do my best to help I’ll talk to you soon you


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