hi everyone this is sector welcome to a new video of the course in this video I want to explain how i read price action around the 50 simple moving average in all the tube well you know I know that you see early warnings of farm sorry any signals of warning us of how the trend might be running out of steam ok right now i'm showing you our chart of the pvp against the strong our offer for our styling frame and we can clearly see that we are in an uptrend by making higher highs and higher lows as I'm marking right now on my screen again very clear ab Trent but I was saying in the previous video fast video that not only we've got to determine whether we are in a trending market or not also we've got to that in mind whether we are in a healthy trend or not it's very easy to to see where weather chart is trending or not that it's not so easy together mine and the health of that trying to get like I say in this case clearly we are making them we are clearly in an uptrend ok we actually we're in a channel i can clearly all sir sorry we can clearly see that well we're movin with in-app an apple channel ok making like I say higher highs and higher lows swinging up and down within the channel but like I say it's not a healthy healthy aberrant and therefore is not an appt Trent you are alright personally according to my system is not a it's not an option that I want to get involved with in and i'm going to show you how to read price action around the fifty percent at the 50 simple moving average story in order to realize in offense that what perhaps we might want to let this trend pass by without taking any tried is used for my 50 simple moving average is marked in red ok so you can see most of the time and we see the idea 30 moving average above the 50-day yes yes the third 30 about the 50 and 250 above the hand red we have a small crossover but left for the shake of for the sake of from of this video let's not pay any attention to that ok i just want your prior you guys to focus on price around 50 simple moving average and as you guys know in a in a perfect training scenario i like the 30 moving average above the 50 and 250 about the hundred and $MONEY prize swinging off the area between 30 and the 50 ok what I usually call the dynamic area of support and resistance that was this is a nap Trent that means the air the area between the 30 and 50 is the area of dynamic support in a downtrend he's been 30 he's been the 50 and this in the hundred simple moving average I like price you know all the the retracement to be held by the dynamic area for assistance meaning the area between 30 and 50 simple moving average all right as you guys know as i explained on my first video are i like how I like seen prize spending most of the most of its time at bev or below depending on once again with an optional downtrend but I think at any rate I like the prize to be contained in the right in the right side of the of the 50 simple moving average in this case is really an uptrend I like price to spend Marshal's Office of most of its time at both 50 simple moving average in this case we can see that this is this is the case okay we have a few pieces again very brief Pierce's above the 50 that's alright we get 12 closes below 250 but immediately after we should again up to the outside this is also right just one quick bridge below no worries 12 closes below but immediately after once again issues about but at this time ok the app the trial begins to show some weakness again we begin to to see how the the Bulls are not totally in control of the strength every time a price retrace price retraces the the best actually show their teeth again they show the clothes and so well they're diff breach quite heavily into the 50 ok this is a serious event into the 50 alright it's gone almost all the way down to the hundreds it's not here it's not here it's certainly not like here and here where the the balls they have a quick attempt on to the 50 but is cool and really Bridget ok 44 wave brief moment there and there that immediately after the bush regain control and massive old price once again to the outside however these case this is a different case right that that's a that's quite event into the quarter bite into the 50 in 250 simple moving average it's an early warning right that these strengths might be running out of control nonetheless we have a new string up again we take out the previous the previous swing high we make a new high into the option so from a technical point of view we're stealing an operant however we see that on the next retracement we actually once again alright have quite a bite into the 50 right almost once again almost 200 we almost touch the hundred at this time it's been two following swings in a row where the dent the bite into the 50 has been quite a strong ok it's been like i always say that the 50 is like a cat ok you can Cavill a cat people want to mess to too much with a cat because finally if you you know if you tease a cat for too long they can will scratch your back well it's it's just a sea analogy I know but these it's actually a valid analogy because when duties 250 simple moving average for too long eventually it will bye-bye abided back at you ok basically the 50-year a simple moving average is like the 61 percent of supernatural Richard the 61 percent 61.8 % real natural retracement and if you drove if you draw your feeble matches for this swing again we can clearly see that the retracement this is the 61.8 percent feel energy this dear retracement actually probably goes all the way down to the seventy-six percent of energy I'm not too keen on the 72 61 watching myself in my opinion it's the retracement is too deep into the trend yes sure you have all new string to the outside but the retracement goes almost all the way back to to starting to starting point okay this is the starting point study am the place from where the swing sprung off and the retracement goes all the way back down to where it all began right i don't like that okay I like the retracement to be held by the eye area between the 38 and the 61 percent anything beyond the 61 percent means that the balls sorry the best in this case showing too much strength the boots are stealing control we're definitely making new highs of every consecutive swing but the Bears are definitely not beaten ok the the are not beat the the best still are showing quite a strength and sooner or later they will regain control of this market ok and the actual control the actual turning point comes at this final swing again not only the bare the Bulls cannot out take the previous high but moreover we want once again against the bears drive price all the way through the 50 and this time around they do knock the hundred gave it to slap the hundred simple moving average they couldn't make it here they couldn't make it there but finally we did the the Bears are once again back in the game right and actually on this limit amia take off the side of this financial retracement finally they make a new low alright you see this a lower low and a lower height at that signifies that the trend is perhaps it might it may not be over but in the indeed it's weekend indicates its its run out of steam at least for the time being in and we could see that in advance from the previous swings right the the 50-percent the 50 simple moving average has been breached for yes solo for us too long okay Lisa right this right this is certain you're right but like I say this is not all right thisis not all right and finally well you know as soon as you see that the swings are being too deep you know being too deep their toes too deep into the into the 50 simple moving average no let the earlier signals of warning like the lumber Oh Alan bells weren't enough man's that something is just not quite right ok the Bulls the boards are pushed price all the way up here gave up too much you know gave up too much territory back here to the best once against the Bulls scored the goal but the birds were not dead ok the best drop the price down almost to the beginning of the screen ok just the same here almost to the beginning of the swing that's not nice alright you don't want traces at to go all the way far down to reach their the 54 for that along again at the beginning of the swing we definitely so yeah a very nice swing up again then a retracement but the Bulls ok managed to drive price so far high so far high then with the retrace took place in the actual retraced ended the diverse couldn't quite had gained back all the all the land that gave up to the to the board's ok in fact if i draw my finger matches from the swing low to the swing high and I can see how the 61 percent people natural retracement which in my opinion is something like a last line of the hands alright was not taken ok was not bridge the boost the last line of defense is still intact alright that's alright just just as you can see here here the 50-percent Fibonacci sure they have we have a quick Pierce below and immediately after we shot the upside once again that's alright but this is not a ride anymore like I say if we if we draw a few matches back to that area right back to this area that we almost every well first of all we definitely bridge below the 61 and we almost get back to entry levels mean india be a hundred percent fibonacci retracement being mean in the beginning of the whole swing and almost 300 simple moving average all right here we have in early warnings right earley warnings that that that the strangest just one half a steaming our guy we might be running out of out of petrol here and despite the fact that at least from a technical point of view we're still in a in a picture and steelmaking higher lows and higher highs right sure we are in the technical entertainer in an uptrend from a technical point of view but that's not the question the question is how healthy is this object is a trend that its strong enough for me to risk my money at it in my opinion all the way here here and here sure it's a it's a high probability chance at the option is gonna is gonna still be strong but at this time and like i said i'm not even going to pay attention to the cross over there okay but at this time our price biting too hard into the 50 almost 200 for me I believe it would have been time at this time to not search for for a long entry anymore okay once i see these two bites too hard into the 50 it was signed it certainly warning enough for me to cancel the whole thing and stop looking for long opportunities here in fact what if i keep scrolling to the right side one you can clearly see that we are no longer in an option we are now bringing in sideways the the 50-percent 350 simple moving average had warmly enough fans have you know fifty percent the 50 simple moving average is my friend okay it tells me when to stop messing around right and and want to stop considering any possible entry because the trend is losing strength right and and this was very clear right here and here i have my my final my mind sorry my early signals of indications of of of trend weakness i had the confirmation once we made a lower low and lower high but of course finally we got the crossover hundred-person 200 simple moving average was reach the whole thing was a mess i get this was not an actress anymore in fact you can clearly see that we are now rather bouncing up and then within a sideways channel we're not trying anymore guys we're now moving sideways in that was like I say that was 65 in advance with this week with 50 simple moving average forget being breached by way too long okay not like here here or here and I tell you what guys perhaps I believe it would be a good time for you to put on your own charts search for training scenarios you know search for trending videos were the moving averages plot on your chart the way I like them too to be plotted you know all of them Parliament schoeller all of them pointing the same direction no crossover whatsoever all of them in order except Iraq cetera and you will see why yourself that's when the 50 simple moving average is bridge by out by a long way all right like here almost getting nearer and nearer to the to the hundred simple moving average you will see that yeah there are chances that you will be you will begin to move sideways rather than trending anymore again like I said it's important to follow price action around the 50-50 simple moving average ok say it seem illogical 61.8 fibonacci retracement you don't want your retraces to reach for too much the 61 fibonacci retracement it means that the retracement is getting too strong the the obverse in this cases where an option at the best are regaining his strength again they are not totally death at all ok the balls may be running out of steam they may be exhausting and in India the trends whole might be a like I say around running out of petrol ok and end this is in cases you can see now i can clearly drive down trend we are basically moving sideways the moving averages are flattening right in in and all that right where we are making lower lows lower highs etc etc and and that once again i repeat its important was signified in offense by the 50 simple moving average right or rather buy price biting too hard quite a one-up you know quite a deep end into the into the 50 you don't want that to write the 15 simple moving average it's not to be messed the run with your always remember the cat guy you can calculate a guy cattle the cat I keep on saying the the captain allergy my oh my oh my BS i know you guys probably think it's a silly analogy it's quite useful okay just keep in mind the 250 simple moving average eat it's our friend it lets us know in the fans when things might be turning against that's okay in fees where the signals that was something was beginning to smell you know not that nicely anymore and you know you can clearly see that finally well we've began to move sideways ok the apt rent is no longer ok is no longer now we're arranging and in like I say we saw that in advance here and here nearing the hundred alright alright guys that's all for this video like I say just try to pay attention to the heir to the aerodynamic area meaning the native the area between the 30 and the 50 if the area between the 1350 is holding the retracements fine you are good as soon as you begin fries reaching below the third below the 50 simple moving average we're getting too many clothes is bar closes below you know that you are something you know something is not quite right there as soon as you see price diving all the way that all the way down or almost all the way down to the hundred you see that something is not quite right okay guys keep an eye on that it's important it might save you from from entering try to get you might think that this is still an option and in fact well it was the end of an end of an average of the apt right all right okay guys that's all keep an eye on the 15-percent and fifty simple moving average it will keep you away from any losing trades alright guys that's all bye