Dumb Money Concepts - How To Determine Trend — Transcript

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1. 0:02now with dumb money Concepts you only
2. 0:04need to know one thing and it's how
3. 0:07price reacts to the levels of the candle
4. 0:12bodies that's pretty much it there's
5. 0:14some more nuances to it dumb money
6. 0:16Concepts it is so dumb that you only
7. 0:19need to know the one thing and your
8. 0:20grandma could do it of course smart
9. 0:21money concepts are much too complicated
10. 0:24and they make it more difficult to trade
11. 0:26than you need to trade the idea of Dum
12. 0:29money concept really stemmed from all of
13. 0:32the concepts that already exist in the
14. 0:34market but we're simplifying it so it's
15. 0:36much easier for you to trade okay and
16. 0:38the only thing that really matters to
17. 0:40the algorithms and the hedge funds and
18. 0:42the big players in the market is what
19. 0:45are these significant levels how does
20. 0:48the price react to them and then the
21. 0:49algorithms come and step in based off of
22. 0:51what happens so for an example we have a
23. 0:55simple swing low here right and the
24. 0:58price closes Beyond it all we do is we
25. 1:01retest that level before continuing to
26. 1:03the downside this is something that
27. 1:05you've heard many times before but we're
28. 1:07going to make it a little bit more
29. 1:08simpler as we go along with dumb money
30. 1:11Concepts all you need to know is what
31. 1:14happens next because that's how we're
32. 1:15going to take our trades okay we can
33. 1:18start analyzing dumb money Concepts
34. 1:20pretty easily let's start a little bit
35. 1:23sooner and say there are levels at the
36. 1:26candle bodies all everywhere I'm going
37. 1:28to put some levels everywhere and these
38. 1:32levels exist for all time frames and
39. 1:36they're always going to exist and we're
40. 1:38going to watch and see how price reacts
41. 1:40to them as price continues through a
42. 1:43trend so how we determined our Trend
43. 1:46reversal here we were going in uptrend
44. 1:49how we determined the trend reversal was
45. 1:52we first of all we attempted to make a
46. 1:55low here and we failed to make that low
47. 1:58and all of these levels that I've just
48. 1:59drawn failed to close Beyond which means
49. 2:03that the price is then going to go to
50. 2:05the other direction we can only do two
51. 2:07things we can either go up or down and
52. 2:10we are now retesting every level that we
53. 2:13were creating on the down move so here's
54. 2:16a level they front run it just barely
55. 2:18right this is a zone that we' then want
56. 2:20to be entering in on if we did want to
57. 2:23get short and continue to the downside
58. 2:25we then close a couple more candles our
59. 2:28trend is still to the downside probably
60. 2:30on the higher time frame right so we
61. 2:31don't necessarily want to accept that
62. 2:35these candles are closing to the upside
63. 2:37making the trend positive after we see
64. 2:40continuation again to the downside
65. 2:42there's that retest once again and then
66. 2:44breaks of these levels and then we see
67. 2:46more continuation and as we continue to
68. 2:49see breaks of those levels we know that
69. 2:52the trend is continuing and that's all
70. 2:53we need to be following along for right
71. 2:55now in the case that the trend starts to
72. 2:58break back up in this area
73. 3:00that's when we want to start to question
74. 3:02potentially that Trend might be going
75. 3:04somewhere else but what you can do is
76. 3:07you can look at the higher time frames
77. 3:09and we can determine where are these
78. 3:12candles closing and once again this is
79. 3:14where things are going to really start
80. 3:15to make sense is that candle closed
81. 3:18really bearishly so that was simply a
82. 3:21retest of this Zone as we go down to the
83. 3:24lower time frame we can prove that this
84. 3:27was not a reversal but rather a retest
85. 3:30on the higher time frame before
86. 3:32continuing to the downside and that is
87. 3:34all we need to start for dumb money
88. 3:36Concepts guys is Trend continuation and
89. 3:41making sure that we are closing those
90. 3:43candle bodies Beyond new levels so that
91. 3:46we can continue that Trend now in the
92. 3:49case that this trend ends and we're
93. 3:51still seeing that those higher time
94. 3:52frames are quite strong so we're going
95. 3:54to be looking for levels to enter short
96. 3:57once again as this continues to downside
97. 4:00so this does not matter too much yet
98. 4:02until we see the higher time frame
99. 4:04closes to the other direction that's
100. 4:06everything for our first lesson guys