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00:00hello and welcome back in today's video we are going to talk about breakouts and the
00:07storyline in our trading strategy after learning about the types of ismr levels and how important
00:15they are let's look at why breakouts marry so much breakouts are the key to identify
00:22the storyline remember this without a breakout there is no storyline no breakout no storyline
00:30so what is a breakout
00:37a breakout happens when the price moves through one of our levels the a-shaped level and the v-shaped
00:45level these tell us where the market want to go and where the buyers and sellers are entering the
00:54market a bullish breakout means the price want to go up and the buyers are uh entering the market
01:03a bearish breakout means the price want to go down and the sellers are entering the market
01:12so how the market creates a trend okay
01:24if the price keeps breaking up it creates a bullish trend and if the market keeps breaking down it
01:35creates a bearish trend okay a bullish breakout for bullish trend bearish breakout for bearish trend
01:46now imagine uh we are in a bullish trend what changes this to a bearish trend
01:54it's when the price breaks the last higher level before touching our fresh level okay and what changes
02:06from bearish trend to bullish trend it's when the price breaks the last level high before the price
02:15is touching our fresh level by bullish breakout it changed from bearish trend to bearish trend
02:25and by uh bearish breakout we changed from bullish trend to bearish trend this is mean changing from
02:36uh bearish to bullish trend to bearish trend means the bearish storyline started and changing from
02:44bullish to bearish trend means the bearish storyline started we said before the storyline uh is identified by
02:55a breakout but what is the storyline the storyline it's the journey uh of the price takes from one fresh
03:05level to another it's begins and ends at these fresh levels there are three types of
03:14storyline a reversal storyline from bearish to bullish and we have a reversal storyline from
03:23bullish to bearish and lastly we have the continuation storyline the continuation storyline
03:31this happens between the bearish and the bullish uh storylines and keeps the trend going so let's see
03:44how the storyline moves between these fresh levels but before that let's uh explain this changing from
03:56bearish to bearish to bearish trend means the bearish storyline started and changing from bullish to bearish trend
04:10means the bearish storyline started and for the continuation storyline by keeps breaking bullish means a new
04:20bullish storyline started and by keeps breaking a bearish means the new bearish storyline started
04:32so let's see how the storyline moves between these fresh levels
04:38for example let's say the trend was bullish here when the price reaches a fresh level
04:47and we see a bearish breakout it means the trend has changed and the bearish storyline started okay
04:58when the price reaches this fresh level and we see a bearish breakout that means the bearish
05:04storyline started and it's changed from bullish to bearish storyline that's why we call it a
05:12reverse storyline from bullish to bearish storyline
05:20if another uh if another breakout if another bearish breakout happens at next fresh levels
05:29we have a continuation storyline started okay if the past one it's bearish this continuation
05:38storyline it will be bearish storyline okay
05:46now the price keeps uh moving to the next fresh level when the price reaches this uh
05:56leaving and a bullish breakout happen and a reversal storyline started the price then moves up to the
06:05next next fresh level okay when the price reaches this fresh level and we see a bullish breakout that's
06:13mean a bullish storyline started and it's changing from bearish storyline to bullish storyline the same with
06:23another uh fresh levels this is the cycle continues from bullish to bearish and back again so when the price
06:34reaches reaches this fresh level which is this fresh level and we see another bullish breakout that's mean
06:38the continuation storyline started if the past one it's a bullish storyline so this continuation
06:47storyline will be bullish okay until the price reaches another fresh level and we see another bearish
06:57breakout breakout for another uh new bearish storyline okay the same with this continuation
07:05storyline by keeping uh by uh keeps breaking uh bearish the new uh continuation bearish storyline started
07:16if the past one it's bearish this continuation storyline will be bash also until the price reaches uh the next
07:25leaves below below okay just remember this continuation storyline don't happen often but why but when they do we can take advantage
07:36of them and make more setups okay so let's uh let's see another example explaining this cycle of the storyline with another analogy
07:55so imagine an airplane without a set destination its journey it's random and decided by the
08:14airports it stopped hot okay the red horses represent uh the airports
08:21airports and the same with the green horses represent the another airports okay
08:38so let's imagine the airplane uh the airplane takes off from this airport a to this airport b
08:48okay okay when the airplane reaches airport b by rising a flag there are two flags a red flag and uh red flag and uh red flag and green flag
09:07this airport decided the next uh stop by rising a flag okay if the airport b
09:16rises rises the red flag the airport uh the airplane flies down to the airport
09:22c and if the airport c rises another red flag the airplane keeps flying down to the airport d okay
09:34but if the airport d rises the green flag the airport changes uh changes direction and flies up to the next airport
09:44the airport okay okay and uh that's how the journey uh of this uh airplane uh plays out okay so by rising the red flag the airplane keeps moving down okay and by rising the green flag the airplane will move uh up okay to the next airport
10:13so by rising the red flag the airport uh up
10:18so by rising the red flag the airport uh up when the airplane reaches this airport
10:23this airport will will decide the next destination okay by rising another red flag
10:27okay by rising another red flag for the airplane to move down okay the same with this airplane by uh
10:36the same with this airplane by uh airport by rising the red flag the airplane keeps moving down okay and if this
10:48airport eyes the green flag that's mean the uh airplane will keep moving up okay uh maybe you see this uh black
11:02airports and this black green okay if uh if the river if the airport uh above didn't uh rise the red flag that's mean
11:17this airplane will not reach this airport and will reach another airport okay the same with this airport if this
11:27airport didn't rise another red flag uh the airplane will move to another airport below and it will
11:37not reach this airplane okay
11:44as i said this is how the journey of the airplane uh plays off okay so let's mix this with uh so let's mix the
11:56the concept of the concept of the storyline with the airplane analogy okay
12:06so for the airports represent our fresh levels okay the airplane represents the airplane represent uh the price
12:19the red flag represents the price okay the red flag represent a bearish breakout okay the red flag represent a bearish
12:31breakout and the green flag represent a bullish breakout so when the airplane reaches uh airport b
12:43b it means the price has reached a fresh level okay if the airport b rises the red flag
12:57that's mean a bearish breakout has happened okay and starting affair and starting a bearish
13:06storyline by raising this uh red flag that represents a bearish breakout we said a bearish
13:13breakout for a bearish storyline okay when the price reaches this uh fresh level not represent
13:24the airport c if the airport c then arises another red flag it's mean another bearish breakout
13:33uh happened okay at this fresh living so the continuation storyline started for the past
13:42storyline okay
13:48and when the price uh so finally when the airplane reaches airport d this is the airport d and the
13:59uh the airport d uh rise the green flag that's mean the bullish breakout happen and when the
14:09bullish breakout happen the bullish storyline started and the airplane start uh and the airplane start
14:18flying up okay so uh the price we move to the next fresh leverage that uh represents our airports
14:29okay and the same with the other fresh levels that represent our airport and uh the price that
14:39represent our airplane okay so by by a friend uh by a red flag means a bearish breakout happen and a bearish
14:51storyline started okay when the airplane reaches another fresh level that presents another airport by rising
15:01another uh red flag that's made uh the continuation uh bearish storyline started in the same direction with
15:10the past one okay and the cycle of the storyline keeps plays out like a conclusion uh the price moves like
15:19an airplane going from one freshly but present airport to another with breakouts that represent flags showing us the
15:30direction understanding this cycle help us help us to know when trends changed and and when they continue
15:41so uh we identify the cycle of the storyline in this video and in the next videos as i said we will practice
15:51what we have learned today so see you in the next video and tear and take care
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