In this Webinar, Alistair takes a look at the applications of various trading techniques we can use to identify a trend.
Okay, we'll get started now. So if, if for some of you here who may be new my name is Alistair Schultz and I am the chief market analyst for ACY securities. And a part of what I do has been a lot of teaching along the way, but I have spent time on the floor of wall street and working through New York trading floors and investment funds, brokers, and most avenues of trading in the industry that are really available I'm for about 15 years now. So I have a fairly broad range of experiences including having written a book on the fundamentals of trading and educational content. So at any stage throughout this process, I'd be quite happy to be in contact with you directly. I'm always happy to help people with their trading. And if at any time you do feel outside of this webinar, of course, you're welcome to ask questions throughout while I'm going along.
But if you are wanting more than you are welcome to email me at email address, I'll put up a bit later in the evening, which is talk to Al at ACY. And of course, we'll go through a bit of things tonight to sort of get you started with looking at trends and things like that. And each week I do two different types of sessions. So there's one that I do like tonight, which is a little bit more educational focused. And then the other side is looking at what might be going on in the market on the given day where I will not really come with a plan, but more so that you can bring any chart or some trade ideas that you may have, and I can help you sort of go through them now. So to get, before we get started, there is a, a risk warning that's involved, naturally trading carries a level of risk, and you should really have a look at your own tolerance levels and what your trading experiences lie so that you can assess whether it's the right thing for you.
Now, I'm going to let you read that if you would like to read it, we do have it available on the website. And of course, if tonight you would like to record the webinar, then feel free to do so. I have no issue with that at all. Either now we'll get started onto the actual session that I have planned tonight, and it's all about trends and trends and where you might be seeing things occur. Now it may seem obvious, but a trader needs to try and understand what direction the market is moving in, and then sort of try and take advantage of that prediction. There's really only three things that you can sort of consider for a trend you're either trending up, trending down or your sideways or consolidating. So like in everything in trading, when, when you have a reduced, when you can reduce it down to a list, it seems pretty straightforward.
But the reality is it's not always so clear and it's our job as traders to interpret what we're observing at the time and sort of form an opinion about the future as well. So many traders will have their own definition of trend, and I'll try and describe a few different methods along the way for you this evening. I do have a few different approaches that I'm going to sort of go through the simple, and then I'm going to move into some other things that are a little bit left field and probably a little bit innovative as well. So we're not going to just be looking at technical stuff. We will be looking at some fundamentals and a bit of everything along the way now just get started. The very first approach is really the easiest. It's a simple approach using a single moving average.
And the idea of this is that if price is above the moving average, the market is in an uptrend and should be traded for buy trades. Only if price is below that moving average, then it's the opposite. The market's in a downturn and should only be traded for sell trades. Now, the advantage of using a method like this is that it's really simple to use, and you can follow a chart quite simply and have a look at when the trend is either initially rising above a certain line or below now, to give you an example, I'm just going to switch to a different chart here so that you can see what I'm seeing. And so I've prepared these a little bit earlier for you all. And now this is an example of what I'm talking about. It's a simple, this is an exponential moving average.
I've got up on the screen, but it really makes no difference as to what type of moving average you are. The timeframe will be dependent on it, the length of time that you use it for and where you might use the trend is the things that change. So in this instance here, I have it applied to a monthly chart of the dollar yen. And it's a little bit easier on this front to sort of give you that rough overview of the description on how we would look at it. So in this instance, the purple line here is the 50 EMA. And whenever we're following the rules that we had just before of, you know, if price is above the moving average, then we're looking for a long position. And if prices below the moving average, we're looking for a short position. So in this instance here where I've got my cursor, you'd be able to look for the opportunities below the line and look for sell opportunities.
So if you were looking at candlestick analysis or patent recognition or something along those lines, then using something like a simple moving average is a good way of identifying a direction for your trades without having to put too much thought into it. It gives you an opportunity to do it. Now, a disadvantage of using these sort of technical indicators to pick your trends are that they can sometimes not know where it's going in the middle. So for example, if you were to get a run here, then price is not in a place that you would consider in either a long or a short position in hindsight, but at the time of trading, it might make you fake out for a long or a short position. And arguably along the way, you would consider taking more trades as it went down. And when price was to reverse and go behind the scenes of another, another position, then you would move it away and close that short position and start looking for long positions on the way back up.
Now I'm going to move on to the next sort of one that we have and the next sort of approach for moving averages, where you use two of them. And so in this instance, it's about price having a faster moving average and a slow moving average. So I'll just read out some of these sort of criteria that you might consider when you're using them and what goes on with them. So if price is above the slower moving average and the faster moving average, then the markets in what you would define as being in an uptrend and you might consider taking bitrates if price is below, then it's the complete opposite. If price is below the slower moving average and the fast moving average, then the market is considered in a downtrend. Now, the difference between using a single moving average and then using a double is that when you have price in between both moving averages, you might consider not taking any trades at all, because it doesn't give a particular bias.
Now, again, I'm just going to move my chart down so that you can see what I'm talking about. And we'll have a look at a few different ones. So in this instance, here, we have two moving averages or a Juul set up and you can, you can see what I mean, when prices above both now the green one is a 10 or I fast moving average. So it considers what the daughter in the first sort of 10 candles. So between this one here and this red one here that I've got the crosshair on now is all the data it's sort of getting to make about this little bit of the moving average and on the other one, it's 50. So it's a much longer duration. We go all the way back. And we are looking at that amount of data to make the next snippet of price it's on the moving average itself.
Now, if we were to scroll this back a little bit and have a look, we'll be able to say where, and when you might not consider taking trades. So in the middle of price here where we haven't really got a defined solution, unless you were looking at candle patterns, then this area here would be somewhere where you wouldn't be wanting to look for a trade. It sort of gives you a little bit of an extra filter when you use two moving averages, as opposed to one on its own. Now, depending on what sort of trading style you're doing, or how you like to look at your charts, this might be something you're interested in. And of course the further you go back through price, it, it makes it a little bit easier to sort of say, well, you might not consider it. So here in this sort of range, you've got price in the, between your moving averages.
You've got a bouncing outside briefly and prices generally crossing over between these all too much. And you would call that a choppy sort of a network for yourself. Now, this is an area that I wouldn't consider taking trades in my own from just looking at moving averages, you would want to have something else too involved in it. So using moving averages in prices is a good way of helping you identify way you are in price. If you were struggling to sort of pick the market on your own. And sometimes it might be a case of you were looking at a shorter timeframe and you really want to move it into a different timeframe. And aren't really certain on where that trend is going in one place versus the other. Are you dealing with a major overarching trend or are you just simply dealing with a smaller calibre version of it and it's considered a minor or just the intraday sort of a trend.
Now, the next one that you can do, and I've got three moving average event. Examples. So bear with me, I'm sure you've gotten the concept of the first one and the idea of using two. Now this one is a little bit prettier and the idea is it's got a lot more rules involved and it's about sort of looking for price in certain areas and way might find a change of direction. Now, when I talk about the idea of using it, it is an approach that sort of allows you to look to sort of define the trend more. Realistically, you may not want to consider using it as your entry, but definitely for exits. It just depends on where you are in price. It's much more adept at identifying the beginning of a larger trend than it is on a smaller side. So when the, on this one, I'm just going to bring the chart down so you can see what I'm talking about before we sort of continue.
Now, here it is. Now when we are looking at having multiple moving averages then is to have something that looks a little bit like this, and you are looking for the crossover, the fanning out of position. So in this instance, here, we have all the trend lines sort of at the moving averages. Sort of switching over and then crossing back over, down this way. And eventually this long moving one, which is a 233 period moving average starts to cross over on the bottom side. And when they're all pig appended like this, and there's not much thing, then that would be the area that, that someone who was a technical analyst or using moving averages might look at that and go, I'm not going to use price in this area. Now, when it starts to fan out again, then you might consider looking at you'd wait for, until you had sort of most of these lines crossing over your longer-term moving average over this purple 2, 3, 3 1.
And then you would start looking for positions through price using your canvas sick analysis or using pattern recognition. Perhaps you're using it just as a general direction in what you're doing now, just to bring it back to the sort of rules. You've got a bit of an idea on what this actually looks like and where it might be impacting and price, where you might consider taking trades. The disadvantage of using something like this is, it is very busy. It keeps your charts with so much information going on at one time that it can be a little bit difficult to sort of make tops and tails of which ends you're going. So when you are using that sort of a strategy, though, you have, you were looking for when the lines are the mirror handing back and forth over each other. It's what you would consider price as being disorganized.
It's in a sideways pattern. It's likely consolidated if the lines are in order and you've got the slowest line at the bottom or the, at the top, depending on which side you're looking at it from, then the trend is going to be in that particular direction. So if you've got the slowest line at the top and your thoughts, one of the bottom and they're fanned out beautifully, then you likely looking for a short position, if in, which would be just like in this example here, where we've got the slowest line on the top prices, starting to fan out and put all of these in the right order. And we're now considering looking for a short trade. The other disadvantage that you have something like this is the time delay, because it takes so long for your trades to, or the moving averages to sort of move back together and get back into confluence with one another.
You tend to find that you won't get into the trades, the very beginning of a trend, and you would tend to be looking for stuff a little bit later on in the pace. Now, if you're using these on some much longer timeframes, then you might be able to just have a quick glance over it and then drop down your timeframes and not even use those anymore. You just give it, gotten it for a general idea on what direction price might be moving in. Now, when the lines are in order, if the trend is down the distance between the lines of starting to expand, then the idea is with those fans, the fanning effect is that that trend is starting to accelerate and vice versa. If it's, you know, the other side again, now, if you start seeing them sort of curve and loop in different directions, it could be that it's just the accelerating the trend.
Now, the next approach that you can consider is actually using indicators known as stop indicators and stop indicators are something that's fairly variable in, in the instance here on this picture, on the computer I'm on right now, I don't actually have the indicator available. There's one that I've custom made myself over time. And the idea is this is based off using an ATR or the average true range. And there are a variety of different stop indicators that work in a similar sort of a format. And then the idea behind them is, is simply a means of really identifying a trend and making it do sort of like a single moving average approach. But it doesn't, I D disadvantages that it does not identify those areas of consolidation very well. So if you're looking at the picture that you've gotten your charts right now, you'll see what I sort of mean it, the instance of the first red line and the red line that I've got on the screen, and you've got price below it, then that's the area you'd be looking for a short position, but the time between sort of halfway on that red line, we've had two jagged candles moved down quite quickly that a black and colour, and then you then move into this transition period where price comes sideways.
Then all of a sudden the ATR stock shows that it is now green and it means, and it goes below price, meaning that you are looking now for long positions. It still sits sideways before transitioning back to a short position. So you tend to find that in these sort of instances where you are using stock indicators, as your general approach to price, it's better to also have a backup methodology so that you can look at this and go, okay, well, I think this is an area that we might be entering and you might incorporate a trend, a moving average, or a trend line or something else to detect trends, to get the overarching picture of what's really going on in price. So in the instance, you would be looking for the short positions. If you had the moving average as a slow moving average above this sort of area in price on the chart that I've got on the screen, then each time you saw an opportunity with an ATR stop, you might, that was red.
You might look for taking short entries. And when it turns green, you'd either be closing your positions and hanging out and waiting while, or perhaps you were just going to hold onto your position and waited out for a bit. Now, in instances like this fake outs do occur when you were operating with lagging indicators, it is just a part of the game. And so there, and very much so that whenever, when you look at sort of the psychological effects of things and how it applies to economics, you sort of start to pick up a different picture along with it. But we'll get into that a little bit later. Now, the next time type two use is actually using just a plain and simple trendline. A downtrend obviously occurs when you lead the line off the top side of the channel. And when it's on the uptrend side, it means drawing the line from the bottom.
And when consolidation occurs, you can put two trend lines on top of one another. So I'm just going to put some examples on the screen for you and do them sort of manually in front of you. Now, if we were looking at pricing in this sort of an instance here, and we might go, okay, well, this is an overarching downtrend. We could probably draw a trend line. It's only a line of best fit. It is not something that is static or that is going to change. It will always change along the way, and it doesn't have to be perfect. But the idea is really that if you can draw a trend where you've got priced, sort of moving in the same direction, like, so then you would be able to look at this and go, okay, well, in this area of price, we're currently in an uptrend and we would be able to sort of look at trading that all the way up as we go along, perhaps we might look at taking entries off the bottom side for a long position or a buyer position and letting it try it its way up.
Now, if we were looking at this, that's sort of the idea of price being sideways and where I was saying, where you can put a trend line on both sides of price. Then you have areas like this where I can quite easily fit the movie, the trend line in the same place above and below, and just simply copied it. All I've done is, is grabbed this top one and I've literally dragged it down and copied it when it works. There it goes. And just they're, they're identical. There's no difference there, but you can see that prices sort of gotten in between that area. And there are things that you can do in this sort of place. You can still trade it, but you have to be aware that if price breaks out on either side of this, then you are likely not going to be looking for a position within this box anymore.
So in the mentor room, you tight run tight stop losses where you aren't having stops that are more than a few PIP outside of these bottom, the, the support line and or the resistance line. And then you simply trade your way through the range, you know, buy from the bottom, sell from the top. And then each time it reaches the opposite end. You close that position and vice versa. If it's a downtrend, or if we're looking for downtrend sort of examples, then we would consider looking for areas of price, where you are able to put an overarching downtrend across the whole thing. Now in somewhere like that, you could probably do it, but it's really more of a sideways thing. And then you end up with an acceleration of price. Now, when price moves up or down, we tend to find that the short side of price moves much faster.
So, or the sell side of price moves much faster than what the buyer side does. It takes a long time for price to rally up, but it only takes a few moments for price to go down. As we've seen recently with the global markets that are currently operating around the world, you know, instances like this, where we're now looking at the Nikai and we've had a rundown in price over a very short period of time. If we put this on a monthly chart and zoom it out a little bit, so too much, you know, the amount of distance that has taken for price to move, you know, all the rally that it's had since 2015 to effectively. Now it's managed to sort of make that same distance in a matter of months, two or three at most. So, you know, when it comes to trend lines, they are a little bit more intuitive.
You are able to put them in places that you wouldn't usually consider. They do allow it to be a little bit more free flowing. So if you are seeing a change in price or a changing in the direction of price and where it might be going, then you can use trend lines to sort of gauge where it is going to go. So I might start there and then you go from here, I'm going to move to another one. And then you keep on moving your way down each time, finding a plate line of best fit. And eventually when you come down, perhaps you are looking for the long position because you're not sure when the trends going to end, then you would be starting to look for an idea of, okay, well, when is price going to start changing that direction? And when is it going to start allowing me to start putting trend lines across the bottom?
Like so, and now you can do it that way, but it does take a little bit of experience and a fair amount of practice to get that sort of happening. But it is something that you should definitely try out if you haven't had much experience with it, trendlines can also be used in much smaller timeframes. So if we go down to a five minute chart here, then a nice way of trading with the trend is if you've gone on your larger timeframe, say maybe an hour or depending on what timeframe you are trading it, of course, if you're trading in a five minute, then I would say, have a look at a 15 minute or a 30 minute. If you're trading in an hour, I would say your longer timeframe is probably going to be a four hourly. And that's all going to be dependent on what your lifestyle is like.
But one of the ways you could do it is by running it. So we've gone. Okay, well where we're at an overarching trend, that's down right in this area of price. And then we might consider going, okay, well, every time price is short or comes up and touches this line. I'm going to take a short position, but I'm not a hundred cents where I might be exiting my trade. So once you're in, you wait for price to effect, you have price, run down, it comes back up and you've now got the first place you could actually draw between. And whenever price comes back down and touches this line, this area, this line again, you would exit. So in this instance, if you're in up here and you drew the line by this point, connecting this point and this point together, then the next step for you to do would be to let price go down.
And when it crosses here, that's where you would exit. Yes, you might run out. You're not get the final bit of distance on your price, but eventually it keeps on coming down. And then when it goes up again, you go, okay, well, I'm going to take another short position here and you try and identify an area that you could go in and then take it. So here's the next place you draw a trend line and you might go through like that. And then eventually once you've come here and you you're still in for the short position, it comes back up and you would exit at this point naturally again, it's going to get you out a little bit earlier because process is going to cross through it. Now, another way you could use this is by putting it in combination with this stuff that we have learned before.
So we could actually use a trend, a moving average sort of a system like this and going through the process of, okay, well, if prices below these lines, I'm only looking for short positions and then start applying your trend lines to way you might consider scalping your entries all the way through. And this is something that you probably ideally use on a lower timeframe. Now, now I've gone through a couple of different technical ways that you can use to identify trend. There is another method that I would like to show you all tonight. And this method is not something that I see commonplace. It's something I've kind of developed myself over the years, but I'm sure it is used quite regularly. And really, I've just got a picture here for you to have a look at, but it's not where we're going to go. So the idea of this is actually looking at global trends, as opposed to looking at the thinking about the idea of trend in price and where a trend line might lie or what the market is doing.
This is probably better applied and the way I've used it over time is actually looking at price and global trends of what might be happening within industry. So from that sort of a, a idea, it is about more about your stocks, or it could be about a index or, or a number of different things that you might consider to be trading. And one of the things that I like to do is actually go through and I brought, I've put a couple of different variations here on the screen in front of you. Now, these are some places that I go and have a look for global trends and websites. I mean, one of the ones that I like looking at is actually the Deloitte insights sort of tool box that they have, and they make a report each year about what is going on. And so it can be a marketing trend.
It might be, I don't look at fashion trends, so please don't go that way. But it is all about looking at what might be going on in the year ahead. And I'll quite often look at them each time they come out and I may even reread them. And often you will find stuff in the sort of articles and, or these sort of reports that aren't all that useful to you. I absolutely agree. But there are sometimes areas in these where it might identify a certain area of an industry or a certain area or element that you might think. Well, that's interesting because there is some level of innovation that's going to be involved in that. So if we're going to can look at that side of things, then the idea would be that, you know, in the instance here you know, there was one I saw just a moment ago, which might be in Saathi retiring baby boomers.
So if we're moving into an era where we're going to start seeing baby boomers retire, then we have to assume that, you know, at this stage, they're now moving away from the idea of being sort of taxpayers, then migrating into that sort of pensioners and welfare recipients sort of point, which is highlighted in this area of, of, of, of this thing. But it also moves to the idea of what markets are going to increase. So if we think about our elderly population now, what are they really using as part of their services? Well, naturally their medical services are increasing. We look at the idea of where they're living in their living arrangements, the idea of food and, and a whole variety of other aspects of their daily lives that might be impacted by a merger or change in trends. And that same trend, depending on where it is.
So if we were to look at Italy or Japan, or even Australia, where we have a much higher proportionate of an aging population, then we have to assume that, you know, the next generation below or even two below are likely going to be working in those industries. And there's going to be a demand for jobs in that area. So when we think about the trend, then we can start going, okay, well, we've got a bit of an idea on where we might see price moving. We might have a bit of an area where we might think about where jobs are going to be increasing. And now we have an idea of where that industry might end up being. And then within that industry, we would start looking for companies and businesses, or perhaps more on the commodity side of things as to what is going to be trending in that instance.
So using the idea of baby boomers retiring, then we can assume that aged care is going to be going up. We're going to see health insurance companies probably increase in value and cause they're going to be having a lot more people clientele that have health care that are going to be used. We're going to see a larger migration towards a re a increase in sort of health expenditure. So in these sort of industries that we can look at, we can then go, okay, well, let's have a look at some industries that might be in. And now if there is a, an aged care facility that has a large number of, of other aged care facilities across the board, or perhaps it's a management facility that deals just in aged care, then we could start looking at the idea of, well, okay, they're going to have an increase in demand and therefore their value is going to go up and therefore, then we might consider purchasing against them whether they are IPO or not, it could be a soft purchase it and the idea of some of these things that we look at, go through all of it.
So, you know, we look at the idea of personalized healthcare as being one of the biggest trends that they might be experiencing. So looking into those, those sorts of medical industries is going to be important to sort of evaluate and sort of consider where we might move to next other trends that are currently, apparently going on in 2020 are going to be the autonomous vehicles side of things, culture, and the management of being within businesses is a big thing. And how social side is things work within business and where people are feeling, especially in the millennial and the gen sort of generation where they're moving into the workforce now, and, or in millennials cases moving more into management and, and purchasing houses and things like that these days, then we need to have a look at that side of stuff. So not only does it apply to age, it also applies to the sort of culture that's going on at the time.
And sometimes that culture might involve computer technology. One of the ones that I really like looking at is this one here, the global web index, and these guys do a really, really nice report. It's easy to read. It gives you some good sort of ideas. They tell you what they think the better trends are going to be, and then enables us to sort of look forward as to where we might consider making investments in the future beyond CFDs and beyond currencies itself. It could perhaps just be directly through indexes like the NASDAQ, which is, you know, a, a hundred of the best companies, technological companies sort of in the U S so if we're going from that sort of perspective, you know, the very first one that I see here on this idea is that there's a strong demand for digital health technologies. Now, if there's a strong demand for digital health technologies that fits in with the idea of personalized health, and now it's going to be personalized digital health.
And so we're going to be looking at where we can find features that might help people's effect effectiveness in doing things online. And so they've got here, I listed things. And so the way that we sort of think about this sort of a process and move our way through it is identifying those trends that might be of value to us. And like I said before, not every single one is going to be one that we can make advantage of having privacy in a cashless future. Now, in my head, I tend to look at the idea of when I invest in things that, unless I have an inherent value interest in what is going on, I'm not going to bother sort of keeping an eye on what happens in it, in the future. So therefore it doesn't become an investment that is worth me actually attending, because think of it from a perspective of what hobbies you might have or where you might like to have those hobbies.
If you look at that sort of a hobby, you're going to keep up to date with it, you're going to think about it on a regular basis. And you're going to look at it. If you invest in it, then that's just adding to the component that is, you've got to have an idea of what you think the value of that stock is, or, or that in industry or that commodity or wherever it may be. So in that aspect, you know, we can sort of think about and control a little bit better and think about it more as opposed to investing in something that you're not interested in. So, for example, let's say I'll use my own example. I'm I, you know, I don't really care too much about bank stocks. I'm aware that bank stocks can be valuable. I'm aware that they pay good dividends, but I don't generally have an interest in what the retail or consumer bank really does.
I've got, I have a big interest in what the reserve bank does because it affects the price fluctuations in currencies. And that's where I make a fair amount of my own money. But when it comes to the actual retail side and the commercial side of banking, it doesn't, it doesn't really phase me. So just because I might have a Commonwealth or said, bank account doesn't necessarily mean I'm going to invest in that bank. It's not how I tend to think about things like that. So, you know, as we move through different things, then the idea is that you will likely find a area in, in these sort of area in these sort of reports that you might go, oh, that's interesting. Or, or I have an inherent interest in that area. And I'm going to now have a look and do a little bit more research into the industry.
When it comes to the fundamental side of looking at trends, there is a huge component about identifying what's going to be a moving market and how it's going to go and how it's going to affect for you. Now, I've always said that the idea of every single person having a different personality fits so much so to trading, it's not funny, my time working on the floor in wall street and working in New York offices and a variety of other investment funds has, has meant that the person next to me is completely different in the way they trade. So the way that I trade and trying to replicate what someone else does, doesn't always work for everyone. And then it's instead best to have a wide variety of educational opportunities to sort of go through, to decide what might work for you. So if you can expose yourself to as many different ways to trade the better it's going to be in the long run for you, because not only will you have a great understanding of trading, but you will also have a really, really in depth understanding of what works for you and what markets might be your preference for trading as well.
So from there, you know, I'm just going to have give you an idea. I mean, I really liked the global web index reports. The Deloitte reports are quite good, and this is their website. They have a digital version of it these days, which you can go through and it's just effectively, this report is just dressed up a little bit nicer for us to sort of go through and read quite easily. Now, the other one is the, I S P O S global one, which does the same thing. It's another PDF sort of a document. And they go through different things. Now, these guys tend to look at things in industry as well, which is advantageous, because if you've got to have a look at things by industry themselves, then you might find something that you're already acutely aware of, or that you already know a little bit about.
In which case it's just further building on that concept of invest in the things you understand is really the core principle of it all. Now we are starting to run short on time. I have gone through most of the things I'd like to go through with you all to NY, and I will continue to be going through things like this on a Thursday night. I believe the next session is on the psychology of trading and how it can be relevant to ourselves as traders, but also how it can impact on our lives and more specifically how it can impact markets. Now, at the moment with markets, you could have a look and you can literally feel the emotion when you look through it because of the panic or the fear that people are having. So that is something to consider when it comes to these sort of global trends as well.
That aspect kind of changes how the outlook might be in the long-term for global trends. Now, if you have any questions from tonight you should have a question and answers box available for you to type into. Now, we've got about five minutes left. So if I can't get to all your questions, or if you have questions tonight and I can't get to all of them, then I am quite happy to take your emails at this email address, which I do use in my videos as well. I'm just going to type it on the screen for you to have a look at, and I do reply to them. So you know that you are what you are most welcome to email me.
Interesting. I'm sorry. I don't know where that actually went. Okay. Okay. So if you do have any questions or you would like get in contact with me and we don't get any opportunities to go through them tonight, then feel free to send me an email at that. Of course, we have a lot of video content here at ACY as well, which I tend to do. So you are welcome to watch that as well. Some of them are tutorial. Most of them mock it updates spot. There is a lot large variety, and I will continue to be working on those and building more content for you all to have a watch of anyway. And like I said, these webinars will continue on the Thursday for education and on a Tuesday, it's bring your own chart day. So if you have a chart or a market, you would like me to have a look at, or you have a trade idea that you're thinking about, or whatever it may be, you are most welcome to bring it down.
And I will you send it to me in the question and answer box, and I will mark them off as I see it on the chart. So maybe it's just an idea. You want to get a second set of eyes on something, or you want a bit of an opinion, or you want to, you want to, you might be a technical trader and want to hear about the fundamental side, or maybe it's the complete opposite. Then that's available for you on Tuesday. Now, if anyone has any questions, feel free to start putting them in. Now I'll give you about two minutes to sort of start putting them in so that we have enough time for me to answer them. And of course, if you don't get your question answered tonight, I will endeavor to answer them. If you send me an email as well.
So I'll give you two minutes from now. If you have questions, feel free to put them in. Otherwise we will be concluding the session pretty shortly anyway. Okay. I have had a question, someone asking me more about what sort of a trader I would describe myself as, so in my time I've done a bit of both. I started out as a technical analyst back in the sort of late 2000 era and sort of what I was working on the floor floors of New York. And I have migrated my way through time into sort of a lot of fundamentals as well. The older I've gotten, the more fundamentals I've started doing. And these days I wouldn't consider myself a fundamentalist or a technical list. I consider myself a rationalist. I don't believe in the idea of being dedicated to one methodology kind of like the idea of being a builder.
And to me, to me, it's kind of like the idea of being a builder and you go to build a house and you turn up with a toolbox and you have all the tools at your disposal to build that house, but you choose to only use the hammer. That's kind of like picking only one discipline over another. So I don't consider myself to be either a fundamental or a technical I've put myself my own category of a rational and you know, will vary on what I do on a given day. That does that answer your question a little bit. Okay. I've had a bit of a question here on what sort of a trader I described myself as I don't consider myself a technical list or a fundamentalist I'm kind of in the middle of both. Now. I started off as a technical list when I was sort of in my teenage years, you know, long time ago now.
And when I was trading on the floors, sort of in my younger years and near the late sort of two thousands I would go through the aspect of being almost entirely a technical trader, including doing sort of quantitative analytics and algorithmic trading. But the, the older I've gotten, the more I've leaned into my fundamental trading. And as I've gone on, there is an advantage to using both. Now, I like to use the analogy about a builder. Now, if you were a builder going to go build a house, and you had a toolbox with all the tools at your disposal to build that house, but you decided you were only going to use the hammer. That's kind of like restricting like the same sort of thing as restricting yourself to only using one discipline in trading. So that sort of an idea is not how I do it.
And I believe there is more than one discipline. I believe there is more than fundamental and more than technical. There's also the money management aspects, which again, can be their own category of, of, of learning. So that, that's sort of how I sort of visualize or, or interpret your sort of question as to what kind of trader I am. I'm not one or the other, I'm a bit of everything in terms of the rest of it. Okay. So I can give you a bit of a, an idea on my approaches and the Tuesday sessions that I do about going through the charts in the way that I do approach them. So when I say you can bring any chart you want, I literally mean bring any chart you want, and I will mark them up and go through them from bear chart completely naked and sort of not made the chart.
And I'll go through, you know, how I approach a set up or how I approach marking up and looking at a, for a trait. And I tend to be someone like, I can show you the, you know, some of my other, other charts that I have that, you know, I leave all mine basically blank, and I like to start with them blank and then move them on in terms of timeframes, which I'm sure you'll have as a question, I tend to focus on the one hour and four hour sort of timeframes, but I always tend to move from, you know, all once a month, I might go and have look at a monthly chart and see what price is doing in the immediate range. I may even put a trend line on it, but I tend to sort of focus on, you know, I do a lot of pattern and, and candle stick analysis in my younger years. So I'm pretty good at picking out patterns these days. And so I will always go through, you know, I will start at the very beginning and I'll flick through every chart until I find something that I like the look of.
Yeah. That's, that's fine. Yeah, no, the naked child, I'm glad you like that. Yeah, no, at any time I'm on a Tuesday, you're welcome to pop in. The timeframes are important, but I, I find when it comes to timeframes, it's really dependent on what time you have available. So if you were trading in shorter timeframes, say perhaps five minute and 15 minute timeframes really restricted to how long you can actually trade for and concentrate for. It's not a matter of cannot trade that timeframe or not. It's more about the concentration levels. And I find personally that, you know, if I'm trying to do candlestick analysis and scalping and, and things along those sort of lines, then you are focusing entirely on the technical side of things, because the fundamentals are a little bit slower to, or not slow to develop their market very fast to develop, but the news impact and where you're getting in price doesn't matter as much.
So, you know, I can really only concentrate for maybe two hours at a time if I'm just focusing on reading candlesticks. Whereas, you know, with time availabilities as well, doing a one hour and a four hour fits in well with my lifestyle, I do work as an analyst at, you know, at another business during the day. So it gives me that extra time to look at the charts, have a think about it and analyze it. And it gives you just that extra little bit of time to sort of place a trade. You're not so focused on getting the perfect entry. You are a little bit less worried about that. And it reduces a lot of the noise that you see when you sort of start scaling up your timeframes. I mean, back when, you know, back in the nineties, you could really only do a daily chart because each day you'd get the prices in the newspaper and you'd get your graph paper out.
And then you'd mock the next little dot plot for where price is on that given day for the iPad, the open, the high, the low and the close. No, I don't think fundamentals is the start point. I think fundamentals is a good point to have, but the skills that you develop from technical analysis is important to compliment those fundamentals. So technical tends to be a little bit more black and white. It's much easier to sort of go up down. Yes, no buy, sell whatever it is with that sort of side of thing. It gives you those sort of key skills that you need to build on top of in reading a chart, understanding what's going on in price and all those sorts of things. When you go to fundamentals, it becomes a lot more controversial. You know, you are now, if you were to take a currency, for example, right?
And now at the moment on the chart, I've got Euro pounds. So if you were to consider Europe Pound, then you've got two. When it's on the currency, valuations to the side of things that you have to really consider, you know, instead of looking at purchasing into a, a currency as just buying fake money, you're really buying a part of that economy and the valuation of the currency. You just picture it like a stock and the country being a really, really big business. So you're now looking at the idea of, okay, well, if we just transfer the ideology that we have from looking at a stock and apply it to from the business aspects of things and apply it to the countryside of things, then when now sort of starting to look at a picture of an economy, we try and paint a picture, so to speak in your head about what the market might be doing.
And you might paint a picture about how that economy is performing, you know, what are their manufacturing staff, or where do they make their money that contributes towards their GDP? What things have they got in the way that might slow that down or increase the pace of it? What is their political stance being, or who were the leaders of that big business or slash country, if you think of it from that perspective? So it does become a little bit more diverse in the mindset, but there is, there is actually a, a, a, a theory about that side of things. So I'm just going to put this on the chart and I, I'm starting to run out of time, but I'll, I'll quickly do this. And the, the idea of, of price and, and the types of information and how we receive them can be attributed to a couple of different circles. So if you would have a picture of this circle here, this is the technical analysis circle. Then you have a, another circle that is the fundamental analysis circle, and that gets bigger, and I'm just going to change the color and set it to the back.
So you then have the, you know, the information source and the idea of restriction. So the, the technical circle is this one, the fundamental circle is the big one. And so this means that the, all the data that you're receiving is much more expanded, much more, and it's greater in depth. Whereas in this side, you're only looking at previous data points on price. So you'd, can't get anywhere near as much information out of technical analysis is what you can in fundamental analysis. And then the final circle that you can get is a much more uncomfortable one. And this is one that people go to jail for. And so the circle in the very background is the one that you get from insider trading. And so that's obviously when you've got people that have you know, gotten an idea on what's going to happen well, and truly in advance before anyone else does.
They have a shore thing. It's not, it's not trading at all. It's, it's, you know, you ha it's insider information. So from that side, you know, you have the biggest circle being the one where you have guaranteed shore lowest risk in terms of the actual trade itself, but the highest risk in terms of what's being involved and what could be the fallout of that. If you get caught doing it whilst the inner circle is being the fundamental side of things, and each circle sort of incorporates the one before it, so being sort of fundamental side without delving into the insider trading side of things really gives you that best piece of the puzzle, if you will, and being able to build on the foundations of your technical analysis does become very important.
Well, I hope that has answered your questions. I'm sure I'll see some of you on Tuesday and I'm going to have to call it a night. I do have some other things to get get to before I finish. I've got to look at my trades before problems start arising, which I'm kidding. There's no problems. But I will have to sort of have a look at those and get on my way for the rest of the evening. Now, if you do, like I said before, if you feel like sending me an email, feel free at any time. And I look forward to hearing from you all on Tuesday at 7:00 PM. All right. Have a good evening, everybody.
This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.
