Bearish Measured Move Chart Pattern Video Lecture | Chart Pattern Trading: Learn the Fundamentals - Business Basics

good afternoon everyone this is
Christian with perfect stock alert calm
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please refer a friend or I'll hit you in
the face with a brick what I can't I
can't say that today we're gonna be
looking at the bearish measured move and
this is a continuation signal as well as
a reversal signal typically you're going
to see the reversal phase in the first
leg down you're gonna have a
consolidation period and then a
continuation of the previous trend down
this is the same thing as you're bullish
measured move it's just flipped upside
down so is it bearish measured moving it
would be bearish because it has a
negative slope basically what you have
is the first downtrend the first leg of
the move you won't know you're an
embarrassment ill you actually get the
breakout at this point we'll walk you
through that your first leg that down
sigh typically has good volume behind it
the consolidation period on this
particular chart trended counter trend
like it was trying to reverse back to
the upside here this doesn't have to
actually form this particular fashion it
could be many many different formations
it could be more flat like this
horizontal and it could be a coil or a
symmetrical triangle kind of thing many
different methods you could form on on
the sideways movement let me clean that
up okay during the consolidation phase
after you've had the first down leg on
strong volume the consolidation phase
typically has a very weak volume volume
will dry up that's normal
until you start to have the breakout you
should see an increase on volume as
these searches sell-off on the second
leg not as a not as important on the
second leg as it is the first the first
notch everybody socks off this one
counter trends moves up in one second
what happens people just kind of throw
in the towel and let it happen
the secondary leg or the
second part of the or third part the
second leg is typically as long as the
first one you can measure that by points
or percentage some guys will analyze it
and see if it would started at 21 and
fell down to 14 they'll take the
distance there then measure that out
from here on down to the bottom and get
their map that way others will do it
from percentage it doesn't really matter
which way you you're more comfortable
with just expect the third part of the
measure move the the second down leg to
be equal to the first these particular
patterns typically form here in several
months one of the easiest ways to trade
them is to track them with your trend
line your trend lines are going to be
drawn in clean that up a bit
you're gonna need at least two points to
draw a trend line on of course you're
basically buying yourself a couple of
time high points that are bouncing off
of a resistance line that's something
you can use to if you get a bounce let's
say you were to do this number if your
knowledge may be the same but let's just
say that when it then this number you
could start using those bounces to short
you want to be shorter you're not going
long because you are in a downtrend you
know at the low point here getting a
lower okay you no longer want to trade
that from the long side which you could
use it from a short side within that
particular price Channel another way
would be watch the counter trend when
the counter trend move starts to retrace
some of the previous down leg watch for
the breakout where price falls below
this line and closes blood why don't
like I did right there when that happens
you've got another opportunity to go
short sometimes you'll get a kick back
up and test that previous support series
I can answer resistance that can be
another opportunity to go short and then
you just return to the previous strategy
of buy opportunities where you punch
bumps up against a resistance line and
you'd be short there and cover their
short their cover their sort and so on
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