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00:00Hello everyone, today's video is all about breakouts.
00:06Let's make this simple and easy to understand.
00:09Let's get started with the types of breakouts.
00:13There are two main types of breakouts, bullish breakouts and bearish breakouts.
00:18Each type has two categories, external and internal breakouts.
00:23A-shap that created before the price.
00:32Bullish internal breakout.
00:35It's when the price didn't break the last A-shap that created before the price touched our fresh level but it breaks A-shap that created after the price.
00:46Bearish external breakout.
00:49It's when the price breaks the last v-shape that created before the price touched our
00:55fresh level.
00:57Internal breakout.
00:59It's when the price didn't break the last v-shape that created before the price touched
01:04our fresh level, but it breaks the v-shape that created after the price touched our fresh
01:10level.
01:12Here are some rules to understand the breakout.
01:15A real breakout happens with the body of the condom, not just the wig.
01:20The valid breakout must happen with the body of the condom.
01:26Only external breakouts indicate a change in direction from bullish to bearish or continue
01:31the current direction.
01:34If you see an external breakout after the price reaches our fresh level, that a confirmation
01:41that we have changed the trend from bearish to bullish or from bullish to bearish.
01:48Okay.
01:49Breaking on a-shape a-shape level is good, but breaking to a-shape levels is even better.
02:00When the price breaks to a-shape a-shape levels, it makes our breakout more valid.
02:09And it's a good confirmation that we have changed from bearish to bullish trend.
02:15Only breakouts from fresh levels are considered valid.
02:18Fresh levels are important for strong breakouts.
02:24We only take a breakout as a valid if it comes from fresh levels.
02:29If it doesn't, we cannot take it as a valid breakout.
02:35And the same with the bearish breakout.
02:39Breaking on a-shape a-shape a-shape levels is good, but breaking to a-shape a-shape a-shape
02:43a-shape levels is even better.
02:45When the price breaks to a-shape a-shape a-shape levels, it makes our bearish breakout more valid.
02:52And it's a good confirmation that we have changed from bullish trend to bearish trend.
02:58The breakouts from fresh levels are considered valid.
03:02Fresh levels are important for strong breakouts.
03:07We only take a bearish breakout that comes from a fresh level.
03:12If it doesn't, we cannot take it as a very bearish breakout.
03:19Now, let's see how we use these rules to identify the bearish and the bullish breakout.
03:28Let's start with this example.
03:31In this example, we are in a bearish trend, all right?
03:36Now, what happens when the price breaks this A-shape level?
03:40Are we changed from bearish to bullish trend or are we still in a bearish trend?
03:47We're still in a bearish trend because this internal bullish breakout cannot change the direction.
03:53Okay?
03:54Now, what happens when the price reaches this A-shape level?
03:55Okay?
03:56When the price reaches our fresh level and we get this bullish internal breakout, now we
04:03changed from bearish to bullish trend or we are in a bearish trend.
04:09We are still in a bearish trend because the bullish internal breakout cannot change the direction.
04:15Okay?
04:16Now, what happens when the price reaches this A-shape that created before the price touched
04:26our fresh level?
04:27Now, we can say we changed from bearish to bullish trend, right?
04:34So, let's move to the next example.
04:36In this example, we are in a bearish trend, right?
04:42What happens when the price reaches our fresh levels and touched multiple times?
04:49There is just one thing.
04:52It doesn't matter how many times the price touched our fresh level.
04:57We only care about the first touch that left behind the A-shape level.
05:06Okay?
05:07Now, what happens when the price breaks this A-shape level?
05:11Are we changed from bearish to bullish trend or are we still in a bearish trend?
05:18We are still in a bearish trend because the internal breakout cannot change the direction.
05:24Okay?
05:25But, by this breakout, now we can say we changed from bearish to bullish trend.
05:33Okay?
05:34Now, what happens when the price breaks this V-shape level?
05:39Are we changed from bullish to bearish trend or are we still in a bearish trend?
05:46We said before, the internal bearish breakout cannot change the direction.
05:51Okay?
05:52Only the external breakout change the direction.
05:57In this example, we are in a bearish trend.
06:04After this bullish breakout, should we take it as a valid breakout or not?
06:12It's not a valid breakout because it didn't come from any fresh levels.
06:17Okay?
06:18But, after the price reaches our fresh level.
06:22And, we have two breakout.
06:25Okay?
06:26And, the price breaks to A-shape levels.
06:30Now, we can say we changed from bearish to bullish trend.
06:36Okay?
06:37Because, when the price breaks to A-shape levels, it's a good confirmation that we have changed
06:44from bearish to bullish trend.
06:46Okay?
06:47Now, what happens when the price breaks this V-shape level?
06:51It's an external bearish breakout.
06:52It's an external bearish breakout.
06:54We changed from bullish to bearish or we still in a bullish trend.
06:58The external breakout that didn't come from any fresh level, we cannot take it as a valid
07:06breakout.
07:07So, we are still in a bullish trend.
07:09Okay?
07:10This is another example.
07:12We are in a bearish trend.
07:15Right?
07:16And, the price reaches our fresh level.
07:19What happens when the price breaks our last A-shape that created before the price touched
07:25our fresh level?
07:26Are we changed from bearish to bullish trend or are we still in a bearish trend?
07:32We are still in a bearish trend because the breakout that happens with the weak of the
07:41candle cannot take it as a valid breakout.
07:44Okay?
07:45The same with this breakout with the weak of the candle.
07:48We cannot take it as a valid breakout.
07:51But, when the price breaks this A-shape level with the body of the candle, now we can
07:58say we changed from bearish to bullish trend and we can take it as a valid breakout.
08:07Okay?
08:08The same happened with the bearish breakout.
08:13Now, we are in a bullish trend.
08:16Alright?
08:17What happens when the price reaches our fresh level and we have this bearish external breakout?
08:24Now, we changed from bullish to bearish trend.
08:28Okay?
08:29And, by this second breakout, we can say now we are creating the bearish trend.
08:39Okay?
08:40Now, what happens when the price breaks this A-shape level by an external bullish breakout?
08:46Are we changed from bearish to bullish trend or are we still in a bearish trend?
08:51We said before, the breakout that didn't come from any fresh level, we cannot take it as
08:57a valid breakout.
08:58So, we are still in a bearish trend.
09:00This is another example.
09:04We are in a bullish trend, right?
09:07And, the price reaches our fresh level and touches multiple times.
09:12We only care about the first touch on our fresh level and the last V-shape that created before
09:24the first touch.
09:25Okay?
09:26What happens when the price breaks this V-shape?
09:29Are we changed from bullish to bearish or are we still in a bullish trend?
09:34We are still in a bullish trend because this is an internal breakout.
09:39But, when the price breaks this V-shape that created before the price touched our fresh
09:46level, now we changed from bullish to bearish trend.
09:50Okay?
09:51This is another example.
09:54We are in a bullish trend.
09:56And, the price reaches our fresh level and we have this bearish internal breakout.
10:02Nothing happened with this bearish internal breakout because the internal breakout cannot change
10:07the direction.
10:08But, when the price breaks this less V-shape that created before the price touched our
10:13fresh level, now we can say we changed from bullish to bearish trend.
10:18Okay?
10:19This is another example.
10:21We are in a bullish trend, right?
10:23What happens when the price breaks this V-shape?
10:28Buy an external bearish breakout.
10:30We changed from bullish to bearish or we are still in a bullish trend.
10:35We are still in a bullish trend because the breakout that didn't come from any fresh level,
10:40we cannot take it as a valid breakout.
10:42Because it didn't come from any fresh level.
10:58But, what happens when the price breaks this fresh level and we have our bearish external
11:05breakout?
11:06Now we changed from bullish to bearish trend.
11:11Okay?
11:12It's so simple, guys.
11:14Just, you need to practice this to understand it more.
11:18Okay?
11:19So, for the homework, we will be based on this empty example.
11:26I will send you the details later in the group.
11:29And, after we finish the concept of the breakouts, we will move on the storyline in the next video.
11:35After that, we will practice everything we have learned together in the chart and see some real examples.
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