Hello and welcome back. This is part two of module thing. And we will continue with our series on technical analysis focusing on indicators. We will start looking at the relative strength index, also called RSI. Now this is a momentum oscillator that compares the gains that is your bullish candles and losses the bearish candles over a specified period to ascertain the speed at which price is changing. The RSI period by default is calculated with 14 periods but I personally prefer much first two periods and use when calculating doors I some traders prefer nine or 10 periods and that is probably up to you.

I personally prefer the forcing forced a two period RSI the RSI oscillates between zero and 100 with values above 50 suggesting bullish momentum and values below 50. Suggesting bearish momentum depending on the RSI period that is between 70 and 95 are considered to be overbought, whereas values between 50 to five are considered oversold. And I'm placing that in, say, quotation marks or thesis. And the reason is that your RSI is above 70 and 95. It doesn't really mean overbought, it actually means there's a lot of momentum and your prices not necessarily coming down as yet. Same with a value below 50 Yo, that just means there's some bearish momentum and it's likely that will continue.

If you use a force of stupid or solid ID. I'm looking at those 95 values for the upper body racket and five for the lower bracket and that actually gives you a better area to maybe exit your long trades at all because you're short trades and the popular way to trade orders onto your RSI extremes. So that's as I mentioned, looking at those extreme values of lower favour high 95 if you're using a slower RS IP with like 14 periods, I have above 70 below 50 and as we've mentioned with the ABV and MSI looking at all these other visions, one of my personal favorites I love using RSI the divergence and I feel that's a very accurate way to measure the markets. And then also RSI levels that is treating the RSI oscillator like a chart drawing support and resistance levels. Let's look at an example forests on the chart.

So I'm just gonna add our bungee band, as well as our volume. And I'm gonna add relative strength index, if you go to the bottom of the chart here, by default, as mentioned set to 14 periods, I'm gonna change that to, I'm going to change that up the barrier of default of 70 to 95, lower barrier of five and in that live for a bit and not coming to the background, maybe to the green line at the top, sort of line, grid line at the bottom as well to go much better. Okay. So First way to trade Rs. RSI is to use what we call RSI extremes. So it simply means in Erie touching these upper limits, we might look for a reversal to occur to see this vertical line that we can add.

So let's have a look. so here we can see we are entering into an area of much bearish momentum that's look at us picturing green candles. That's why we have bought this level, we moving up and they were starting to leave the area meaning we're probably coming to an end of this bullish momentum. So if it trade that does or its extremes that's what we will be looking for. I personally use this in conjunction with the bollinger bands, as opposed to bands just explained to you but I do so those saw the tube on just squeezes. We saw earlier example that we use.

So we actually squeeze a squeezing moving down, moving back into the orange area and then I'll usually wait for that next next extreme which is the plot on the RSI to do X my trade going back into the bunker coming back in as we get into that area over, over over sold area I close my trade around Yeah, which is a good place to exit. Similarly with this side maybe just squeeze break out, come back to the retest. And now I'm waiting for that oversold over bought area extremely able to be reached. So I'd probably stay my trade all the way around. up to about a year. The See, but I usually wait for price action confirmation as well.

So as long as we are about the orders are 95 days, which is extremely well in this instance the way I've seen it, I look for confirmation of price reversal V, so I'd probably probably closer on V or V. So that would be a very decent profit. And that is how I use RSI extremes. Looking at RSI divergence, just get the trend line or it's either vergence it's it's present everywhere and very very popular. So they can see the bottom there is a bottom up at the same one of the bottom bottom. So we have we call hidden bullish divergence. So we have your bottoms not aligning.

In other words the lows we have a higher low The RSI and lower low on the price. But that is actually a divergence, a British divergence and soon after we can see that price is taking off moving upwards and you'd see divergence actually all over the place. So yes, some bearish divergence is top around here and there and yeah, we seen negative divergence. Let's see price, higher highs, lower highs. So that is bearish divergence. it see if we have more examples here.

Actually lots of examples. I mean, I tried this frequently. This is one of my favorite, favorite ways to trade from this knowledge sample. Because that's my way. Okay. Again, bottoms are the lining looking at up with continuation.

So again, divergence lower low ILO moving upwards. So yeah, divergence very good way to trade RSI. Something I want to show you guys is actually very nice are found and just remove that moving average it's a very nice that agents indicator about vergence The nice thing about trading view all the indicators, especially the Public Library's customers is something called the RSI divergence version five. Just calculating debugger. It loads I'm just gonna change the inputs to two periods and there we go. So it actually gives you your hidden or regular divergence.

So red would mean there is a hidden bearish divergence present or green would mean this hidden bullish divergence presence. It's not as accurate as identifying it yourself. But it's still it still works. I think this one but it's showing us is that hidden bullish divergence over a year, you can see the so you can see have a higher high on a higher low on the price and a lower low on the indicator. So that is a hidden bullish divergence, meaning price you can look for price to continue on in the direction it's moving, so that it actually picks up that one so it picks up most of the divergences, so very nice indicator issue a bit lazy to identify those divergences yourself. momentum indicators the A dx, the average direction index, it is a momentum indicator that measures the strength of the trend by factoring in the following over a specified by default 14 number of periods.

It takes the size of up moves which is the current on means minus the promise of previous high size of dammuz which is the current level minus the previous previous low and then it calculates an EMI based on the EMI based on the difference and dividing it by the average true range, which is discussed later in this module. And because it uses an absolute value approach, it will quantify the strength of a trend irrespective of its direction. And unlike its subcomponents to the positive index in negative direction index, which is Yo, yo, I'll try and show you those two indicators as well. And so the IDs are usually accompanied by a second line called the ad x R, which is which is the x rating and which is basically the RSI of the A dx on with speed which ad x is changing. And the idea here is that if the A dx R is above the A dx, a trend is present and expanded in the range of 20 to 2040 plus usually indicates a strong trend.

So let's have a look at that ad x. I'm going to remove the Ballinger shift necessary just to get what we have. So I'm surprised that we do not have both in AD x This ad x plus divergence as I showed you can do four E's, directional moves and some a bigger directional movement. I think that's, you know, some school duration. Look at those inputs at x 14 period ID x. Okay, so this includes the the difficulty read unfortunately, like those lines a bit bigger it's a bit difficult to interpret but I believe that the orange line is at Exelon is the blue line is the positive directional index in the red is the negative directional index. But it's not a very good example actually, I'd like to look at another indicator.

That's the problem with some of these public library indicators a bit difficult to interpret. Because that one maybe maybe a bit better. CT some more ideas are Unfortunately, most trading platforms and usually doing two to two ad x at x or Okay, so let's just use the one that they do have Yes. And so unfortunately did not have to add x all which are actually like this. It's actually very quick way to identify whether we are training or not, but At least this one includes those two components to the i plus di minus. So that's the positive direction index and the negative direction index norm of the A dx.

So make it bigger as well. I'm going to close RSI always added back. So black line that is so as mentioned, and we are ranging in this area, you can probably see that and you can see that to be expanding moving from 20 free down to about 18. So I'm not retraining Yeah, we do see strong trending markets. up from here, we see expense 2050s moving up all the way to very strong trend in 49. So extremely strong trend every year.

And the thing with the red line being the negative selection index and the green line being done Because the selection index just shows which side which stream is currently stronger. So obviously you have your short, your short training strongly in your release train being a weekend, it's a positive direction index. And here we have a cross over and we see some more strength on our positive direction index, which is the green line. So that is a dx x useful just to maybe help determine whether you're trending in our strong trend is so as mentioned, we are looking for those values of at least above, above 24 to 80 X for training market. Another momentum indicator the stochastic oscillator is a popular indicator that measures the speed or momentum of price. This is done by measuring the Claire's relative to The high minus low range over a set number of periods.

As a rule, momentum should start to taper down near the end of a trend. And the two lines that indicate the used are calculus follow. So that is your classic line that is your current place minus the lowest low of by default for the last 14 year periods, divided by the highest high of the last 14 periods minus the lowest low of the last year, 14 periods of times 100, just to get it to a decimal. And you'll signalize three periods simple moving average of that stochastic line. And now to try to suggest that you would ideally want to wait for the stochastic line to cross below the overbought and again that's that. That 8080 7080 level with the signal line crossing below the suggested line, for short position and for a long position.

Waiting for this to classic line cross above the oversold level with the signal line crossing up. Let me explain to you what I mean with that. So, adding the gastic in so much difficulty finding indicators with a background a okay. So this is your stochastic your stochastic line would be believe this get this right here. Yes. So the blue line is your stochastic line and the red line would be your signal line.

And those dashed lines represent your overbought area and your oversold area. Have a as mentioned, don't see it as overbought or oversold. And because it's a momentum indicator, in other words when this indicator is above that, that level that threshold, we are looking at momentum bullish momentum because obviously we're looking at bullish momentum. Now what I mentioned with waiting, I say that when you're trying to second guessed it, you'd ideally want to wait for the suggested line to cross below the upper overbought or upper parameter of the signal line crossing below the suggested line other words, so you wait for that blue line to cross below back below the this ID label over here. And and that line is I think, around around the year would be a better area to maybe look for a small short, I personally prefer do it In the fight pullbacks a pullback using the trend using the stochastic instead of trying to find longer short areas, counter trend, so I'd rather if we identify this as a bullish trend, so it's to say as one of those indicates back proving everything they just add a very straightforward 200 moving average.

So for instance, this is a very strong downtrend. Now I do identify selling or because we do not want to go long in a downtrend, we want to go short in downtrend, so in a downtrend, you would be looking for areas to go short. So I'd rather use the stochastic to look for areas to get in a nice pullback. So in other words, you can see that momentum is going up up day we are actually losing some momentum and it's actually coming back down, back up and back down again. So you're gonna use this to try and identify areas to to short a market again. They may be the SIR it's very useful identifying pull backs, and then actually really finding good interest with dreads aren't uses the gastic.

I'm more than happy with using the RSI but this is stochastic and this is how you can potentially use it. And some people also use it to identify divergence, divergence always with also a good way to to identify whether or not a way to actually use this actually to look at breakouts. So you can see that vergence indicators consolidating and we have a breakout there will be always a bit lagging but still you are able to maybe catch some of that move. Example of divergence just trying to find something not that easy using the is a top is a top is a top is a top tier divergence. Price moving up. So higher highs and price lower highs on the gastic indicator meaning we are looking at bearish divergence.

Price moving down so yeah, if you want to use it, maybe use it for divergence. Okay, finally, the intermodal cloud so also known as Inky, inky mocha can go higher, which is loosely translated from Japanese As one glance equilibrium chart is a comprehensive integrated, that allows users to quickly at a glance, ascertain trend support and resistance as well as momentum. What most people actually don't realize is that the chart is actually only one part of the macro system. So most people are trading mocha actually only think of the chart. But there are also other aspects of the mocha system. And as developed by I don't have two guys named me and do I think it's maybe on the next lap on the next slide, but also he also developed wave theory.

So that helps you understand market structure that may be ties in slightly with heat waves of often theory, price theory, which helps you to measure your price targets a from those wave structures, as well as number theory and helping you to understand market timing and within those waves or within structures. So, just to start off with a brief summary of the various components that make up the ichimoku cloud. So this is now the part that most people that are familiar with the ET moko, usually known. So this is the thinking thing is calculated by averaging the highest or the lowest low for the last period for the last nine periods, which is referred to as the turning line. The kitchen scene calculated by averaging the highest and the lowest low for the last 26 periods, or support a standard line or baseline at the Chico span and basically just the lightest housing price plotted 26 periods back and also called the lagging line, sinker span a calculated by averaging the thing can sing and the kitchen same thing.

Both 26 periods into the future in that form sort of the leading edge. And that goes with the single single spend be calculated by averaging the highest high and the lowest low for the last 52 periods and also plotted 26 periods into the future. So those two things are spent anything to spend deforms part of the cloud. And just before we actually go to the sample, and I just quickly want to show you how to get a mocha on your chart yesterday and cleanse the body oranger moving average and gonna hide old drawings that you made. So the nice thing about it America it's all all inclusive, comprehensive trading system so if you worker out You go looks extremely confusing at first glance, but it's actually extremely simple as I will soon explain. I usually customize some of these lines make something more visible or at least visible etc.

But I'm going to explain to know how to trade the motor system and how to actually use it the way it was developed to quickly ascertain what is going on in the market at one glance. Okay. So your auto components as the chart so first we have your price which is indicated by your candles so that would be your lightest price. And as you can see, I change the colors here. Think insane. That is that little dark blue was the purple line.

Each insane Ah, I believe I actually have this ink I've made I've done this incorrectly. So forgive me, the purple line is actually kitchen sin and the blue line at foster line stinking sin. And so yeah, that is supposed to be the blue line and kitchen scene is this purple line. So forget that arrow, that arrow must be pointing over here. And that arrow must be pointing at that light blue line. Then you have sync a span a, which is this part of a Cloud Sync or span B, which is this bottom part of a cloud.

And that forms a cloud to this big thing over here that is a cloud. And in leading edge, because these moving average lines are projected into the future, as you can see, there is your closing price and this is actually in the future. So it's projected forward, it's shifted horizontally 26 periods forward, and that is the leading edge of the cloud and They almost forgot about Chico span so that is your current closing price which is that level. Just put it 26 periods back. There you go. So that is Chico span kitchen scene.

Think insane. Get that era kitchen scene is that one. I think incentives sculptured with the nine period moving average show that to be quicker with the line and in your kitchen scene is the 26 period one so that would be the slower one over a year. So in an uptrend so this is an uptrend and one of the ways we actually can identify this is because we're above it now if we were past it came as a cloud. We are not trained few below the cloud. We are in a downtrend of coming out of a downtrend so that's the May 1 thing that we look for when we looking at the market short is what trend are we are we above it's out in uptrend or below down in a downtrend.

So in an uptrend like this, the first level of support would be your thinking scene. So As you can see this light blue line over here, it's acting as your first level of support, you can see support support. The second table supports kitchen same is this purple line. So that will be your second level support. Your 50 of support is in Crispin A, which is the top part of the cloud. So if your profits are single spent, I would be the green line below it, it would be a red line.

So if you're below the chart, that would be your first level support. And that would be your second deals, but it profits out. And this would be your first deal support. And then also that I mean, the bottom cloud, the fifth layer of support is Chico span, the clouds projected 26 periods back above the cloud. So your last level of the things is this little Chico span line still being above the cloud. So you'd see brigly that price, you need respect stinking thing, but most of the time thinking of getting seen over And then something that comes in for the cloud and bounces from the cloud.

So, just as a way to identify support and resistance, so in a downtrend that is switched upside down with your first level of resistance being taken same kitchen same thing has been a single span be in Chiku span below span right. Now, how to read the chart, sir, it may explain to you one are we above or below the cloud in other words, where's our train are we above or below without in this instance we're above the cloud train is up to is the leading edge of the cloud red or green also steep visit. So this leading edge as you can see this price that's leading edge is that is that green or red in other words is that thing pointing down or up and also how steep is this leading edge is moving like with a steep angle going up or flat that will also give you an indication of momentum and spring strength free is thinking seen above or below kitchen scene so they were thinking seen the light blue line, and they will have kitchen seen that purple line.

If it's above thinking says above kinson be moving up. So that is just another indication of where trend is moving. If thing consents above kitchen sink, we are an uptrend. So so far, you can see everything is integrated into a strong uptrend for his Chiku span above or below the cloud and price. So that would be close projected back to this experience, that is you could spin up or spin way above price and the cloud. So everything over here is indicating to with a very strong police training.

That's the basis. We have. The thing can sink, kitchen sink cross over. But before we get to that, those four points 1234 as the basis of the One clones in moko analysis to tell you what is happening. And if you're about the cloud, it means we are moving in an uptrend blurted out downtrend. If we are in the cloud, if we were to look a bit back in your in the cloud, it means we are arranging.

So it's not really going to be in the cloud. We're not going anywhere. And you do not want to try itself the market if you're in the cloud. So let's just look at some of the other aspects of reading the Kimo cloud. I want to show you that if you're in this instance, let's just take this example. Over here.

You can see we are actually coming out of the cloud or via some other words, we're starting to go into a bullish trend downtrend via price prices breaking below. kitchens, same thing insane We actually had your 2000 sim crossing over kitchen sink at this point of year which is the early signal to show you that we are reversing or actually starting to go into a downtrend. So that would be an early signal but you'd like to wait before actually entering into trades for that breakout out of the cloud you get one to get out of the cloud. So maybe as a break out, and as you can see, forget that for now. I'll explain that later. We have price being respecting the thing consent encourage insane yes breaks fruit thing can see the blue light blue line moves back up into teaching, which is your second level free resistance.

But gets rejected surprise moves down lower. And as you can see, bounces back. Want some support around the kitchen. See and again, they have some resistance Down bounces on think insane moving up area crossing. Look at that we have crossing early signal River. So here we have instancing crossing getting sent to the upside.

So that's an early bullish signal, not yet bullish on the cloud as early bullish signal. So we can start looking at long positions at this point, price goes up. It's a cloud bounces back, find resistance in the cloud now completely in the cloud. It's just no it's actually going to consolidate. So Cloud acting as resistance. Don't try to while you're in the cloud, still looking for either long or short pinion which side of the cloud we actually breaking out.

Can see be following it out this stage. We have a breakout below the cloud. But at this stage we still have think consing above kitchen scenes and not really a sell signal. Also we have if you project your clothes to Experience back. You've probably noticed that you have you have teaching saying that the cloud is Project 26 protecting tangled in price so you don't really want to do anything away. Now we move back into Cloud, continue to consolidate not doing anything finding resistance against kitchen saying the purple line, bam and we have a breakout.

So we have a breakout so do we want to go long? Wait, so where is Chico span? Now we have to go back to this experience. This is what I was trying to indicate the year is this kitchen scene, completely entangled in price. In other words, not ready for a trade. You want kitchen sin free of price and you actually want to feel the cloud so humans like this one a buffet loud and above price.

So still getting tangled so do not like your long trade. And as you can see soon after price reverses Break straight through. agency think insane max. Luton at the bottom here, find some resistance against kitchen sin was back up consolidates in the cloud in the area of first breakout out of the cloud, we still have kitchens. Still. We still have Chico span and in the clouds and not yet ready for actual long trade.

And here finally at this point, this big candle obeah. You can see projecting our close back to the day we have Chiku span, it's above the clouds above price and that would be your first clear long entry signal. Also you have the think unseen above kitchen scene. So that would be a nice long entry. And at this point, if you do project the cloud forward as you'd usually see it see that rather flats and price hasn't really The train hasn't really developed as yet but very soon you see train to develop and we go into a very nice long train. So if you're in that position that would be a good place to be and a good place to make places stop to maybe not give away too much profit is slightly below the kitchen sink line.

If you are long open above it if you are short. I've also noticed and you won't hear this anywhere else, I suppose I've picked this up from my own experience. If you in a position for over a year, you see across over the cloud above you right above you cross over you that usually means you do a pullback. So be moving in a downward downtrend. Strong, very strange. And all of a sudden above you we see that cross of the cloud that that means at this point round about you can expect a pullback and that is exactly what we got.

At this point of the year. You can see again Right above the twist, little pullback. So this is something I've picked up. So if you see a twist right below you or above you, you know that you're at a point for a possible pullback. And that is how you read the kuhmo Cloud. Next up is eating local price theory.

Now I know it seems very mathematical, but it's actually very simple. Now, the application of thinking about the price theory is very useful in helping to calculate possible price targets. And the price targets are actually built on the chemical way theory which defines the various way from nations being an eye wave of the way, which is just another way to look at to eye waves or in waves with any wave which is just pre if I wave I wave if I wave or I wave as V wave or say in wave of an eye wave. So that is just talking about wave theory. I'm not gonna go into committed to wave theory because I will go into a gateway theory and the next part of module 10. So it also buys group size when it comes to number two, which we will discussed next.

And the important thing to remember is that so before I get into this, let me just quickly explain to you the basis of the market price. So, the pictures you have on the left here actually represent your, your market wave structure. So, that's price said it's about prices moving, pulling back that's correction and making a new new leg and let's maybe just quickly go to the chart so that I can show you what I mean. Okay, so here's an example. That goodness, now my drawings are coming back religions really want to remove them at this point but for your sakes I will. So there is a way is correction they Dini have another our wave the day or the depending on how you measure.

So this is what I mean with wave structures. This is not the wave, wave wave. Okay, so as you can see it's waves in West market moves in waves. I've covered this and I will cover this again in malko. Integrated wave theory, market moves in waves, that is called an in wave that's our that is called v The way you get the drift. So just that's what I mean.

We're just going back to the slides quickly. So what I'm trying to determine Yes, I'm trying to show you how you can calculate possible price price targets using these price theory methods. Now, going back to the job, so we are getting this message down we will be here, here we have support as you can see, we're moving back up and again is massive rejection of that area through the label. So what you would like to know at this point, let's say we were to go short so that is the frick fractal. Wonderful, it has some text in us. Sure I can.

Why don't you she's trying to figure this out. Now. Just quickly see if I can add some. Whenever you listen to something, you can find it anyway. I'm trying to say so this is going to be the wave called. So that's a, b, c, d, but we do not know we these must stop.

So So at this point we will be here so we'd not know with this, we want to press pause, we want to know how low can we go. And I'm going to show you using emotive price theory how you can use the theory to determine how low you will actually go. So this example the examples I'm showing use yours for a bullish wave formation, but you can just invert that negating your bearish formation. So there are four possible price dollars in T being the smallest target, in in in VPN This, there's four different calculations and I'm explaining each one every year. And before I try and explain all the math of Treisman seeking medical placements, etc. I'm just going to demonstrate it and demonstrate it to you on the job.

So, there we have it set Nick green. So, the shortest calculation method, the shortest calculation method, if it is measuring from C to A and then projecting it always from C to D. So, let's try that quickly. So, A, B, C, D, the shortest one would be to measure which is square. It was scary from day to day. from day to day and immersion is from day to day. So using the empty calculation which is a short story, I'm saying that I'm at least going to touch that level was actually concerned and the support level at the bottom Yeah, so that would not be a bad place to take profit my opinion.

That's why I actually do say as you can see, first of all, that should be calculated from smallest to largest or better actually. So empty being the smallest is the one I just showed you guys now. So that would be a very nice targets are measuring from the top of a to the top of B and then projecting it from the top of B down to calculate my D target. Now, the second target is in calculation measured at B and in project from C to D. So that's a bit different to Mt and because of individual unused ATC, are you using ADB? So let's go back to collation. So we'll be saying, instead of measuring it to the top of C, we're measuring to the bottom of the, and projecting it from the down, as you can see, still a valid target.

There you go. That's actually this is probably more realistically the talk that we will aim for at this point. So I believe that this was a very good in calculation example. To use and this is very recent, this is a recent example from the Euro, the Euro USD. So this is not cherry picked or anything. Now if we go to the V calculation, we measuring the C with the C CB length and projecting from B to D, and then you get Which is the longest one, which is from A to B in particular from B to D that sort of missed out on it.

For instance, just show you that if we were to measure from the, to their bottom, and try to project that down, which you can see the way out of this area, so start from the start. So just get this back on screen slide. Start from the smallest target in Guelph with your largest target in seaweed, African sights of possible of possible support and resistance. So in this instance, you can see that we actually did have some other previous support at this stage. So looking at this example, I'm just going to measure that because well, let's start with the smaller one from the there upwards you can see is the first target of the day. But we probably actually can get our extended target by looking at one of the other calculations such as the interpolations moving from a to b and projecting it from C upwards.

There we go perfect, you can see perfect target. So this is the in calculation target. So this is Nikita predicted our target using the in calculation like that. So, just to remember that B and C those two should always be fractals and we did discuss fractals. So at this point you should know what a fractal is fractal is very simply high with two levels on each side and or a low with two islands on each side. That's your fractals.

So, that is the MOCA price theory and that is how you can determine price targets. Very awesome in my opinion. It can local number theory Now Koshi Hassan, that is the name of the sound of the mouth and I couldn't remember. And I don't think you'd blame me. And he says you have spent four and a half years just a number theory. And at the end of the study settled upon three basis numbers, which underlines the basis of demography.

And these three numbers are 917 and 26. And if you go back and you look at those calculations of the various chemo components, like you're thinking, same kitchen scene, etc, you'd see that they use these numbers, nine things the same 26 in same instance. The other numbers he identified are in series those cliffie 3342 60 570-613-9172 and D 57. And for comparison, I've also included some of the Fibonacci numbers and you probably notice how often those are used and some of the other indicators that we will cover in fee of module 10. Another application of these numbers to financial markets are akin to finished theory. But based on my own observation and back testing, it does appear to be at least some validity to using those numbers.

And to apply these numbers to the markets, you basically start at the last fractal, or swing point and count each bar candle marking the key mocha numbers. Now the first thing is that magic 10 phones and price targets should occur around these numbers to have some degree of accuracy. Okay, so let's test that theory. If we go back to our Euro USD chart is the latest theory you use the chart these little blue lines can you know why? Let's try it in mocha fury. So what's the first number for a mocha nine right 917 26.

So there's a fractal. You can see high low, low, low low, let's count These candles 123456789 so basically emotive fury that wave should technically in round nine. Oh, if you continue this counting, say 1-234-567-8910 1112 1314 1516 17 nothing two inches 1819 2021 to 2324 25 look what happens the 26 year annex down move and that is the base of chemo. chemo number three completely weird I don't understand what actually works, but it does appear when you start counting from fractals looking at it conducting local numbers you do get weird stuff happening is not a fractal 123456789 BAM you're at the top, bottom to top nine candles. Amazing. Let's try something else.

This is seafood counters from that area round 1-234-567-8910 1112 1314 1516 17 right before we actually turn. So again 17 coming to play is a fractal. As you can see high low, low, low low. So 1234 or 5678 910 1112 1314 1516 Okay, not really anything too interesting over here but we do actually see that we have new fractals forming. So it's always better to calculate from your latest fractal. So that would be your latest fractal.

123456789 And we had a turn up. Yeah, again, fractal 123456789. We reached the top of the first leg so 1-234-567-8910 1112 1314 1517 which stock so you can decide yourself how to apply that but he came up with number theory, definitely something to look into. I personally at least find it very interesting. That concludes part two of module thing. Thank you very much.

If you have any questions, feel free to mail them to me at info at Fx automate.com.