So my goal is that by the end of this video, you will have a concrete understanding on how to find and trade some of the most concrete and beginner-friendly strategies when it comes to trading within the stock market. And if you have watched our videos before, I Do not worry, we are not going to be talking about the usual patterns. I Won't to even mention the glorious pattern of overreactions from bad news events, nor will I mention the special bravado of over selling and over buying on the RSI No, no, no, no. In this video, we are going to be introducing even more simple patterns.

Really, Do you think that a lot of new traders don't yet know how to acknowledge these and it's so important? you have these at your solid foundation so that you can build on and start earning as quickly as possible? It takes a long time to be profitable within the stock market, but I've always found that starting with the simplest of setups and starting to have some progress there will motivate you to start going into more advanced setups and sort of broadening your skill base. But before we get into it, one of the most important parts of trading patterns is having a pattern of hitting that ravishing like button. A good a pattern folks. And of course, never forget to subscribe for more short, sweet simplified videos on how to trade the stock market.

Ok, so to start, the first pattern we're going to be starting with is the up trending channel. There are a ton of different names for this I just call it the Up Training channel. It looks like an Up Training channel. Pretty intuitive and you can think of this pattern as sort of the almond milk of the stock market.

Since it is trending, it's relatively healthier than a regular pattern of staying flat but going from support and resistance. but it can also be a bit snobby such as those who drink almond milk. They pattern that only acknowledges itself if it stays within the bottom and the top of the channel. Order for it to be considered an uptrending channel because of training is a huge elevating factor.

If something is up reading and you trade it, you have a larger margin for error. But this is a pattern where we have essentially two trend lines pointing up that essentially create a channel and allow us to buy in at the bottom and sell out at the top and a tip trader. When it comes to trading literally any set up, we focus on identifying elevating factors that boost our hogs of success. And at the end of the day, a previous pattern conformation is one of the biggest elevating factors that we can have.

Remember, we love Proof and Not promises something that can actually prove to us that it is able to reach the bottom of the channel and then is yet another elevating factor. If it shows us that it has the strength to repeat the pattern aka a pattern confirmation, then that is a huge elevating factor. We love elevating factors. The more elevating factors that we can stack, the more probability we have of having a lucrative position.

For example, at this point hither, you may have been able to identify the pattern. but it is not until we break above the directional SMA line that you are confirmed that we do indeed have a pattern. And why is that? Well, because we see three periods. One, we started near the top of the channel, two we went to the bottom, three, we went back to the top, and then finally we broke back down to the bottom.

This is where the channel was really established, but it was not until this point where we broke above our directional SMA line where we had a price Direction confirmation that it was going to be heading back in the opposite direction. But again, we focus on elevating factors here. at Zipporah do we love, love, love elevating factors. At this point, we had the elevating factor of being in a pattern, but at this point we had the extra elevating factor of breaking into an upward direction, thus confirming, confirming, confirming, confirming the direction of the previous pattern with a previous pattern confirmation.

Combining this with being a great deal in over-salt and a previous pattern of recovering from oversold and you can see why we have a high probability of running up. But anyways, we ran up back to the top of the channel and you could say but wait, why wouldn't you sell here and you could have sold there at a profit. If you're being extra cautious based on the previous established channel, the wise choice would be to either a hold until we reach the channel, hold until we reached the top of the channel or B get exited out by a strong validation point. We always hold from confirmation to validation, there's no reason to sell out before validation.

even if you hit a validation point. the validation point doesn't mean exit. What it means is evaluate if it makes sense to exit based on your other elevating and deprecating factors. If you wouldn't get into a position at your exit point, then you probably should exit right another way to look at.

This is, if you weren't already in a position when you hit a validation point, would you enter into a new position there? If you wouldn't then that means you have more deprecating factors as compared to elevating ones. But moving forward, we got another opportunity here and this entry opportunity actually highlights why it is so valuable to wait for a previous pattern, confirmation And this point. we barely missed the bottom of the channel. So if you're planning on buying in right when we hit that bottom channel, you would have missed out.

but because we are waiting for a previous kind of confirmation, we instead Buy in After seeing the price action prove to us prove to us that it is in an upward direction. So that way we could take advantage of this type of position while also being confirmed that the patterns continuing and the previous pattern confirmation. Well, that's again, this break above our red directional SMA line. This is intuitive because if we are trading off a pattern of going from the bottom of the channel to the top, doesn't it make intuitive sense to actually wait and see if it is indeed going to start hitting off.

Why would you buy in when we don't yet see signs that it's going to go up? You don't just buy something because it's been discounted. It really tears me apart deep inside to understand that so many people just love buying blindly when they stock hits support. But at the end of the day, folks, you can't do that. You need to see signs of a recovery.

One of the biggest things that I like to say is that you never know that you're in a cult until you hear the chanting. And when it comes to this next pattern, well start chanting folks. Next one is based on the market tendency to squeeze price action right before a breakout. You can call this tightening.

You can call this squeezing. You can even call this sneezing. It does not matter as long as you're able to identify it, but this happens because stocks that have a history of volatility, a history of wide fluctuations will eventually break into periods with low volatility where there's smaller fluctuations and because you can only squeeze the volatility in so much, eventually it breaks out again, causing fluctuation in price action. Trade-off of this draws more investors back in and further increases the volatility.

Thus, if you can identify this, you can buy in upon in confirmation of pattern and trade this of secret price action. Okuu is another good example. I've highlighted three different sections of volatility within Roku in different colors to make it a little bit easier to identify each sector. His first period of volatility.

Here, we had crunching of volatility here and then we had this gradual squeeze here and eventually this led to a really, really, really tight squeeze. Then we had a breakout after the squeeze because again, you can only tighten price action so much. how can you make it any tighter than it was here at the end? But you may also notice that it was at this point where we had both a confirmation of price strength over our blue as the main line and a confirmation over our directional SMA along which is the one in red. Remember, these are two huge elevating factors and a confirmation of an upper direction is also a pattern confirmation because in this context we are trading off a pattern of squeezing volatility and then running up if I was to put that in another way.

If a pattern indicates that we are going to go into an upper direction like this one does because it's being squeezed, That means that in order for us to confirm that the pattern is actually indeed going to break into an upper direction, it needs to actually show signs of doing that. And that's why we wait for a previous pattern confirmation. We just need to wait for the pattern to reaffirm and prove to us that it is going to repeat. I Like to stay, Proof not promises.

Let the price action prove to you that it's a good position. But Charlie Why is that? I Thought this was a pattern? Well, because patterns tend to repeat themselves, but they do not have to, They never have to. Do you think that a pattern will continue indefinitely? Absolutely not. So if you're looking at this from a long-term perspective, if you're buying into stocks, just because there's a pattern, that means that eventually you're going to have a bad time when that pattern breaks.

So instead what we do is we pair this pattern recognition to elevating factors. We analyze all the other factors that we've learned in terms of best trading techniques. We know that certain indications are more likely to provide price action. That's going to move in our favor.

So if we pair that with patterns and we combine them all together, we can figure out what the probability of success is and we can stack as many probabilities and our favor as possible. But you could also be more cautious with this. And this is kind of where these subjectivity comes in two different trading styles and different personalities. Because if you were really cautious, you could have gotten an even more reaffirmed position, an even higher elevating factor, an even stronger elevating factor by getting in after it passed the failed breakout.

Here, If the price action has a pattern of failing to break out somewhere, if all of a sudden, it proves to you that it can break out. hey, that's a huge elevating factor. And likewise, we saw he'd run up. But let me stop overcomplicating this with the nuances of different trading techniques and styles.

You should think of this as simply a pattern where we have a volatility squeeze, and eventually a breakout. That's really all it is, folks. When determining the value of a squeeze, all you need to do is evaluate your elevating and deprecating factors to assess whether or not the breakout is worth taking advantage of. And we have a ton of videos on this, and we have a ton of videos on this throughout the channel and we present different strategies and whatnot for doing that.

If you are having a hard time the value, volatility, and figuring out where it's actually being squeezed or tightened at 100% get that, it's very easy to get lost in the charts. To mitigate this, some people find it helpful to enable. Bollinger Bands Now this is an indicator that I have a video on and you could Youtube, search, zip Trader Bollinger Bands and watch the video. But it's really quite intuitive to see the areas where they become tighter as they get squeezed.

it's tighter as they open up. it's looser. Pretty intuitive by looking at it. It just sort of highlights it.

Okay, But anyways, let me give you one more example before we move on to the next pattern. So with /zl we squeezed and then broke out. Pretty easy to spot. Pretty simple trading pattern.

Make sure that you know what you're looking for and make sure that you're waiting for previous pattern confirmations. Okay folks, so this last pattern is actually going to be quite opposite of the previous one. Now this one is the gradual increase of volatility. So instead of squeezing now, we're increasing the volatility and we have different opportunities.

As a result, if you look at Coupe, we have pretty boring, tight volatility in this first period and then we have a gradual increase in volatility and then boom. just an insane increase of volatility. Here, we care because this means we can buy in after it gets beat down like a rabid dog and we have a lot more upside. But remember folks, we don't just buy in because something has been beaten down I've echoed this throughout all of our examples.

But you need a pattern confirmation that might mean price strength confirmation over our blue price. right? That's an A-line or a directional confirmation over our red directional SMA line. And how aggressive you are What this is going to depend on how many elevating or deprecating factors you've located. Are you at a good deal range? Do you have a lot of upward potential? In the short term and in the long term, How much directional strength do you have? How much price strength do you have there? an identifiable catalyst? What is going on? Why is it moving the way it's moving? If you can properly stack you're elevating and deprecating factors, you can figure out exactly how aggressive you should be with this position.

and you compare that with confirmation and validation. Concrete, concrete folks. concrete entry and exit points. But anyways, folks, if you'd like to learn more about elevating and deprecating factors and our best trading practices when it comes to evaluating and analyzing trades and trading techniques that will actually allow you to grow your couch slowly but steadily.

I Recommend checking out our trading tutorials, playlist, and watching the over 100 free videos that we have on Zip Trader. And we now also offer Zip Trader you which is structured step-by-step Roadmap To grow in your account gives folks a structure to actually go in learning and practicing the material while also getting the chance to work closer with me. Everything in training can be learned through trial and error. Zip Trader You is just there to expedite the process Anyways, folks I Hope that you enjoyed this video! If you have any questions whatsoever, make sure to reach out to us below or join our free Zip Trader Circle Facebook group and of course I Look forward to seeing you in the next video.