Psychology of Trends || How to Trade Gaps || Episode - 3 || Booming Bulls - YouTube

Hello guys welcome back to another

Psychological video which is the third of this series

In which I told you the 39 habits

That I’ll explain few chapters of the book which I like the most

So let’s start Without wasting any time, let's get back to the topic

Chapter number 7

Moving averages can quantify trends and create signals for entry

Exit and trailing stop

Sir Steve Burns says

That he prefers Moving Average

And chart patterns

That what he has written in the book

We can also discuss that

It's our choice If we like trade line, then we can use that too

But what he wants to say

Moving average is something that is mathematics

There are math’s while making a moving average That’s why

he prefers to buy a share

A good share

Whenever in the daily time frame something takes support on 20 moving average

Or takes support at 50 moving average

Or takes support at 200 moving average

Whenever it takes to support

Put stop loss below the moving average

And let the price move

When market moves

Then this moving average

This not means 200

Let see 20 moving average

and assume it as trailing stop We can capture the trend

So what he wanted to say in short is

As when the price is coming

A good value stock

If it takes support at 200 moving average And starts moving upwards

Then put a stop loss at 200 and entry in that

Now it’s moving upwards

So we can trail that by 20 moving average

Until it gives you profit

So he wants to say

That moving average…. All of the best traders he knows

All differences they knows in this world All of them

Are using moving average in some or the other ways

Clearly said Trading is not a holy grail

But it gives a lot of mathematical edges

And tray to learn more and more about

Moving Averages And if you ask me personally also

Moving average is my favorite indicators

For support registers and pullbacks

Then here is written that there is a lot more to learn about moving average But I wouldn’t go into details

Because I have written another book So he sells his book about 101 moving average

I have purchased that also And read that also

That also have good knowledge Let's go

we are done with the 7th point Let’s move to the 8th point

Good Point Bull markets

Bull markets have no long term resistance

Bear markets have no long term support Means Lots of time

Lots of time what happen

Market breakout in the bull market

It breaks all-time i Take pull back

And then comes again people think it’s making a double top Now where it goes in up

Market breaks out

Now it feels that the market has already goes this much up

Now it will not go more

Again people start doing short And again market breakout

And while doing like this Short sells condition gets worse So little short-covering

He got totally Its total loss for short sellers

That's why the bull market

Which approximately goes for 1.5 years, 2 years, 3 year

They have no long term resistance

In a strong bull market, you should try to Buy

Should go on with some buy

In a long term bear market

Which goes approximately for 1year or 2 year

In that who buy again And again when dib What happens with those people?

The support breaks and the market dropped

Again support breaks and market dropped

can't say That how much the fall market will face No one knows

when the markets bottom will come

So this many time with those who are buying dib for long term It happens so wrong with them They also get

Start getting fear of money wastage When you see wastage of your money

They also think about what I am doing And how much money I am wasting

They exit the stock Then

new holders come in And then they make the bottom

And the market will go in a range

Then it called the Accumulation distribution range

Then after distribution, its downtrend After Accumulation its uptrend starts

So he wants to say Don’t get bearish in a bullish market And don’t get bullish in

in a bearish market In the long term time frame

Now

let’s talk about 9th

The larger the market gap He is talking about the gap

The greater the odds of continuation of a trend

I will tell you in simple words Gap and go

Gap and crap Exhaustion gap

He talked about three things Gap and go means

Sometimes when a bullish market gives the bullish gap

If one rumor has flowed which is right till some point

If there is a gap, it will be filled

But people don't know this that when this gap will be filled Maybe it will fill after one year

Maybe it will fill after two year Maybe it will fill after 4 days

But Mostly what people think is if it’s a gap

and the market comes down They start thinking the gap will be filled today only No

In maximum time if gap comes towards the trend

Very good breakout gap comes

So market If the market

on that day or after 3-4days

holds the loss of the day

The High probability of market is going up now

And that time you have to put a stop loss below the gap and take an entry

So what you can do You can wait for end of the day

You can wait for 3-4 days You can see what will be happening

If the market is a gap up and go This means the market gap does not fill that day

Although it’s written in the book That is the first-hour gap will be filled If it has to

If this happens Then it is known as gap and crap

It is of no use to you Your stop loss hit

So if it is gap up and goes

Or gap down and go

Then the market will not fill that gap It will take hold

Full day It will hold

The best way can be Market open, Went up Then pull back

Here buy again

Sometimes it will not take pull back That’s why you have to make your own strategy

After that, he had written that Many times market after going up

Gap up opens And market immediately fills the gap

It is known as the exhaustion gap One quality of exhaustion gap is that

It is of very high volume Because it is ending

So if you see an overstretch uptrend Or overstretch downtrend And then a gap

The gap fills immediately And it contains high volumes

So then we call it the exhaustion gap Means trend is exhausted Here you can take the reverse position

He wrote clearly here

It’s a little tricky to trade gap

But if you found a profitable way to trade Then very nice

You can get a very nice swing trade

It can be very profitable to trade gaps

Alright These are the three points of today’s video

I hope you enjoy to listen it got something to learn about related to the market

through this series

And this is a very good book That’s why I wanted to make this series for you

So if enjoyed So Please like the video Let me know if you like the series

Like it & Do you want more such series in future?

Tell me in the comments guys ok

Or if you are a new trader So definitely first do paper trading by paper trading

take experience and then do real trading for real trading

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open your account using that link and do trading

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