hello everyone it's Dale here and in this video  I'd like to teach you a skill how to read and  



evaluate any chart in just a couple of seconds  because if you look at any chart then it really  

consists of just three things or three patterns  the price is either in a rotation like for example  

in here or the market is trending like for example  in here or there is a swift rejection of either  

higher or lower prices like for example in here  those are three patterns that every chart you look  

at and it doesn't really matter what time frame  or what trading instrument you use every chart  

consists just of those three patterns nothing else  and if you learn how to recognize this then it  

will give you a huge Edge in your trading so let's  go over a couple of patterns here and let me do a  

drawings here so right here there's a rejection  of higher prices right so that's the rejection  

we also have a rejection in here and also smaller  rejection in here and smaller rejection in here  

now let me highlight the rotations rotation  is in here then there's a rotation in here  

also little rotation within this trend and  rotation in here also I missed this one and  

that should be about it now what remains are the  trends so we have a trend here here here and here  

and in here and as you can see at this point we  named each part of the chart and we needed just  

three patterns rotation Trend and rejection so  this is how if you look at any chart this is  

how we can break it down to those very easy to  see patterns now some of them appear very often  

some of them are rare if we talk about rotations  like for example in here then rotations appear  

70 to 8 % of all the time if you look at any time  frame any trading instrument then it will really  

be like this 70 or 80% of all the time of all the  charts they'll be in a rotation right the rest is  

the trend which is like at 20 to 30% of the time  and the most rare of them all are the rejections  
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which are very rare and happen just now and then  and they don't really take up that much time now  

every one of these patterns have some meaning  when there's a rotation which is most common  

then the price is telling us that the market is in  equilibrium that means that the sellers and buyers  

found a fair price right this is area with a fair  price both buyers and sellers are content with the  

price being in here and they are content with the  buying and selling in this area at least for the  

time being now another thing that is important to  note about rotations is that in rotations heavy  

volumes are very very often traded let me show  you with the volume profile volume profile shows  

us the volumes and The Wider the volume profile is  the heavier volumes are traded in that zone which  

I selected with the volume profile as you can see  in rotations heavy volumes are often the heaviest  

right also for example in here and the reason is  that the big trading institutions are very often  

accumulating their trading positions in other  words they're entering their trading positions  

there and the reason why they do it in rotations  is that in a rotation they can do that they can  

accumulate their trading positions without being  noticed and those guys have simply huge trading  

Capital which they need to allocate and for that  reason they need time so they do it in a rotation  

where they are unnoticed and also where they  have liquidity right because there is equilibrium  

there's enough buyers and enough sellers so that's  why in rotations heavy volumes are often traded  

and remember this because this is a very very  important thing now another important thing here  

is that the longer the rotation then usually the  stronger the trend that comes after the rotation  

right so the longer the rotation the longer it is  the stronger and longer the trend so keep that in  

mind because this is also pretty important piece  of uh information now talking about the trends  

Trends don't occur as often as the rotations and  what they are telling us is that one side of the  

market is way more aggressive than the other one  in here it's sellers sellers in this downtrend are  

way more aggressive than the buyers and that's why  the price goes steeply downwards right sellers are  

aggressively pushing the price downwards and they  are doing doing so with market sell orders now  

what remains is the rejection for example this one  this is a pretty strong rejection of higher prices  

and in here in this example this is telling  us that buyers were pushing the price upwards  

aggressively then sellers started to jump in and  pushed the price downwards right so this is a  

strong rejection and it marks very very important  point in the market because this is a place which  

was defended right this is the place which was  defended and it was defended very aggressively  

here right so this is definitely an important  place for all Market participants everyone  

who's trading this chart right now knows about  this rejection and they're making their trading  

decisions around it right and that's why this  also could work as a strong resistance Zone in the  

future now what I would like to do is give you a  couple of more examples of those three patterns so  

it is a bit more easier for you to identify them  so let's move the chart a bit by the way I haven't  

mentioned this we are looking at euro dollar  30 minute chart and sometimes uh there are more  

ways how you can look at it actually like in this  case for example you can look at the big picture  
and say that for example this was a huge downtrend  right or you can break it down into smaller pieces  

and say that that was a rotation rotation rotation  rotation and downtrend downtrend downtrend both  

ways are correct it only depends of how detailed  you want to be with this now as I was saying  

uh you can do this with any time frame and any  trading instrument so let me switch over to the es  

this is 5 minute chart of the es on a faster time  frames those are sometimes a bit more volatile the  

mood is changing bit faster because it's fast time  frame so in those cases sometimes it's harder to  

identify those patterns because they change little  bit too often but you can still do it here it only  

sometimes bit more difficult so if you look here  then we can look at this part as a rotation then  

there was also a huge rotation in here and the  rest were Trends and rejections so those were

Trends and those were rejections and now the  market is trending here let me do one more  

example let's go to chart of gold U this is a  daily chart and as you can see it is way easier  

to read it's way more calmer because the market  sentiment doesn't change that quick as with the  

fast time frame in here we see a very very long  rotation before that and after that Trend and  

before this trend there was also a rotation  all right so with a higher time frames it's  

usually easier to read this and recognize those  patterns now let's go to the next very important  

point of this video and the thing is why this is  helpful how can you use this in your trading what  

you can do and what I do is as well is you can  build your trading strategy around those three  

patterns for example when the market is rotating  you can trade from the extremes of the rotation  

toward the center of the rotation that means  in this case shorts from the higher border  

of the rotation Longs from the bottom border of  the rotation and the ideal take profit would be  

the center of the rotation so when you identify a  rotation you can trade like this but what you also  

need to do is you need to keep in mind that after  a rotation there will be a trend so the longer  

the rotation the more Vigilant you should be and  you should expect a trend like here and when the  

market starts trending you need to apply another  trading strategy it could be breakout a lot of  

people trade breakouts or what I prefer to do is I  prefer to jump in that Trend when the market makes  

a pullback right so for example here is a pullback  and this is the place from which you go long  

another pullback another possibility for a long  trade right wait for those pullbacks where the  

market gives you a little discount and jump jump  in that trade and write the trend and at the same  

time keeping in mind that the longer the rotation  before the trend the bigger probability that the  

trend will be strong and that it will be longer  now what remains is the rejection let's go back  

to the es for example and when you see a rejection  like this one this is a strong rejection of lower  

prices then this tells you that that this was an  important Zone in the past that strong buyers were  

defending this zone right so this whole Zone was  a support and strong buyers were defending it so  

it is also likely that when the price comes back  to this support Zone there will be a reaction from  

there it could either bounce of that support which  could give you a nice trading opportunity to go  

long from the support or another scenario is it  shoots past the support and this would give you  

an information that sellers are very very strong  and determined that they were able to push through  

this strong support and what you can do with this  kind of information is that you know that sellers  

are strong so you want to join the winning party  and you want to start trading short because you  

got a clear signal that sellers are are dominating  the market and that they pushed through a very  

strong support so those are the three patterns  which you can use to read any charts in just  

couple of seconds it is very very useful skill to  develop at first identifying those patterns could  

take some time and it will take some practice  before you perfect it but it is not really too  

difficult and I highly recommend learning how  to recognize those patterns and use them in your  

trading so I hope you guys liked the video don't  forget to hit the Subscribe button so you don't  

miss out on any of my new released videos and  if You' like to learn more about the way that I  

trade and about specific trading strategies then  I recommend visiting my website which is Trader  

dd.com and if you go here where it says trading  course and tools then it will take you to a page  

where you can browse my trading education and  custom made Trading in tools and if you really  

want to level up your trading game and want to  be in contact with me and other Pro traders in  

a live trading room every day then check out  this page here which is the funded Trader  

Academy page there's a video where I'll explain  everything all right so that's about that thanks  

for watching the video and I'll be looking forward  to seeing next time and until then Happy Trading