Trade Every 8 Minutes with this Candlestick Pattern | 70% Accuracy Rate
Understanding the Bear Elephant Bar
In this section, the speaker introduces the concept of the bear elephant bar and its significance in trading.
The Market's Language
- The market has a limited language to communicate with traders.
- There are 13 letters in the market's alphabet, 10 of which are color-based letters.
- The market can only throw out these 10 bars repeatedly.
Importance of Bear Elephant Bar
- Out of all the 10 bars that the market repeats over and over again, there is one bar that matters most in a bear market - the bear elephant bar.
- The bear elephant bar has a 70% occurrence rate in a bear market.
- This high occurrence rate makes it an essential tool for traders to master.
Significance of Bear Elephant Bar
- Knowing each one of these ten bars and what statistically happens after each bar forms is crucial for trading mastery.
- Traders who understand how to use this bar have a significant advantage in trading during a bear market.
Statistics on Bear Elephant Bar
In this section, the speaker provides more statistics about the bear elephant bar and explains why it is so important for traders to understand.
Occurrence Rate
- The bare elephant bar has a 70% occurrence rate in a bear market.
- Out of all other red bars, you will see this particular red bar seven times out of every ten times.
Trading Mastery
- Understanding how to use this particular red bar is crucial for trading mastery during a bear market.
- Traders who know how to use it have an advantage over those who don't.
Reliable Events
- Making your living from markets comes from finding reliable events that happen very often.
- The high occurrence rate of the bare elephant bar makes it an excellent opportunity for traders looking for reliable events.
Winning Tactic
In this section, the speaker talks about a winning tactic that traders can use when the bear elephant bar occurs.
High Accuracy Rate
- The speaker has a tactic with close to 98-99% accuracy rate.
- This tactic is nearly 100% accurate whenever the occurrence happens.
Low Occurrence Rate
- The problem with this tactic is that it only happens every four years during a presidential election year.
- Traders need something with a much higher occurrence rate to make a living from markets.
Importance of Bear Elephant Bar
- The high occurrence rate of the bear elephant bar makes it an excellent opportunity for traders looking for reliable events.
- Understanding how to use this particular red bar is crucial for trading mastery during a bear market.
The Bare Elephant Bar
In this section, the speaker discusses the significance of the bare elephant bar in trading and its occurrence rate.
Occurrence Rate and Follow-Through Rate
- The bare elephant bar occurs every eight minutes with a 70% occurrence rate.
- It has an 82% follow-through rate, meaning that after this bar, 82% of the time, there will be more red bars to come.
- Betting on this bar can result in profits 8.2 times out of every 10 trades.
Understanding Follow-Through Rate
In this section, the speaker explains what a follow-through rate is and how it relates to identifying bear elephant bars.
Identifying Bear Elephant Bars
- A true bear elephant bar has a body that makes up the vast majority of the bar from high to low.
- This signifies powerful selling by sellers in the market.
- After identifying a bear elephant bar, there should be an 82% chance of more downside or red bars to come.
Two Elephants in the Market
In this section, the speaker discusses two elephants in the market and their significance.
Two Elephants in the Market
- There are always two elephants in the market: a green elephant (buyers) and a red elephant (sellers).
- A true bear elephant bar signifies powerful selling by sellers in the market.
Understanding the Elephant Bar
In this section, Oliver Velez explains how to identify which elephant is in control of the market by measuring green bars versus red bars. He also discusses how to play the Elephant Bar and when to take profits.
Identifying Which Elephant is in Control
- The loudest elephant has more weight in the market.
- If red bars on average are longer than green bars on average, then the bear elephant is in control of the market.
- If green bars on average are taller than red bars on average, then the green elephant is in control of the market.
Playing the Elephant Bar
- Play Elephant Bars if they're near a moving average (e.g., 200 or 20).
- Don't play an Elephant Bar that's far away from everything.
- Let your first protection start where you got into your trade.
- Find the next solid bar and put your protection above that stop.
- Take profits when you drop away.
Using Color Changes and Graduation Ladder
In this section, Oliver Velez explains how to use color changes and graduation ladder to maximize profit opportunities.
Using Color Changes
- Pay attention to Bear color changes and Elephant Bars.
- Don't pay attention to bottoming tail bars or buy things.
- Use color changes as a signal for entry or adding onto a position.
Graduation Ladder
- As you go up the graduation ladder, you get more opportunities for profit.
- Start with $50,000 and add onto positions as you gain experience.
Protecting Your Money and Betting with Moving Averages
In this section, Oliver Velez emphasizes two important concepts: protecting your money and betting with moving averages.
Protecting Your Money
- Losing one bar is the most important thing to avoid.
- Take profits when you drop away.
Betting with Moving Averages
- Let the 20 period moving average tell you which way to bet your money.
- If the 20 is rising, bet your money up. If it's declining, bet your money down.
- Pay attention to Elephant Bars and Bear color changes.
Introduction
The speaker introduces the concept of trading and explains that it is not for everyone. He highlights the benefits of trading, especially in light of recent events, and challenges listeners to ask themselves if they have what it takes to be successful.
Is Trading Right for You?
- Trading is not for everyone.
- Recent events have highlighted the benefits of trading.
- Listeners should ask themselves if trading resonates with them.
Do You Have What It Takes?
- Following simple rules is key to success in trading.
- Most people do not have what it takes to be successful traders.
- The speaker is willing to invest in those who he believes can succeed.
Can You Follow Simple Rules?
The speaker emphasizes the importance of following simple rules in order to be a successful trader.
Key Rules
- Do not lose more than one bar.
- Trade with the 20 period moving average, not against it.
- Buy near the 20 period moving average and take profits away from it.
- Avoid big bars and only lose one bar when a trade does not work out.
Investing in Your Success
The speaker offers to invest his own money in those who he believes can succeed as traders.
Investment Offer
- The speaker will set up listeners in their own business as traders.
- He will invest his own money and provide mentorship and support every day.
- If after a certain period of time, the investment does not work out, there is no risk to the listener.