trigger points are something that is very helpful when we're talking about exits when we're talking about managing trades it is a little bit of procedural analysis mixed with technical analysis so it's a bit of a hybrid unit right you have procedural analysis which is typically and the way in which you trade which triggers are actually exactly that it's the way in which we manage a trade so it is it is part procedural but it is mixed with technical so it's technical derivative and procedurally executed so it's kind of an interesting blend between the two worlds it's part of a hybrid model where you get into even more advanced knowledge not only using the way in which we appropriate our trades but combining that with the actual technicals that tell us okay our technicals can appropriate exits or entries things like that so it's kind of the step above procedural and technical analysis because it's a hybrid model really becomes the kind of almost ultimate form of trading just because it's mixing the most advanced theories right so pickles dad was in a short here so we are going to talk a bit about that and how we would manage that short to understand trigger points here so i'm not going to look too far in the past like if i did what i would find is i would find a trend that comes from say i believe it was uh here to here and eventually it gets to this point on the larger time frame i believe it's something like this on the bigger time frame so you know we're not gonna yep i know it's this point right here and uh it's it's somewhere on this one right here on the smaller time frame just as a local trend so we're not going to you know go and reinvent the wheel here we all know how to do that rather we're just going to kind of take this a step forward here so you'd have your trend like this which is great and then you'd have an even more local one which would be this candle here to uh this hourly candle right here i believe this would be an hourly that's sure what it looks like to me yeah so it is actually it's the hourly rate here which hasn't heard broken yet so i'm just doing a little bit of our trend shortcutting there just experience shows me where i can put these things and what time frames i can expect them on so just a little bit of shortcutting to see where this uh these these trends are so last time we talked about trends and did an overview on trends and and kind of how we use them interior and exterior why so this this would be considered interior trends right these uh you you're gonna get up to this weekly here and this is a bit of an exterior trend but but really this would be the local exterior trend um i'm sure there's a trend here to here and yada yada yada and then to this point here and and some some different things and this would be a local trend just just to clarify that you this this is a local trend affecting this part of the move so what we're expecting from this trend before we move on is simply just this something like this this piece of the trend right here's the whole level and that that's exactly what's been being held over time and then i'm sure there's even something a little higher here so you'd have this whole level gets hit in there and then this one right here and and so forth and so forth down actually you know this was the untested level and that's fine is now moved to this range here and and then so forth to here and here so so you know we can we can just kind of establish our very first um this would kind of be the legacy level of all of this global information here right like you have this is very local what we're looking at in terms of may 7th to may 23rd very current of course and uh some somewhat localized and and even this isn't too local more more local is going to be in these first few candles here but anyways it gives us a good balancing point to establish some of what we're going to talk about today so we're going to work through time frames here and see that we do have that's the hourly we found this on right we do have some information already that we can use with these uh these few trends that we've drawn so so we simply know that bitcoin has been moving down and uh we are looking at this trend to continue its movement down and this trend out here and eventually this trend out here if we get to that point which i'm not so certain we will so let's start by developing our other side so you know we simply have this which was a test of this guy right here funny enough this range had been tested i believe there's something else in here that was tested we're not gonna we're not gonna dive too much into that because i believe we did that in a previous session so you know next week we'd be down in in this region somewhere so this would have tested right there which gives us our whole levels in here which broke down into this range here so so we can kind of define this range as well and we're going to spend a little bit of time doing that because we do need to know what we're dealing with for trigger points so a very very first call we know range is here to something like this and this one is kind of already tested which means we're here but more likely this candle and so forth and so forth which was tested this here which is tested and you know we've we've tested this one i suppose next um where it stopped and you figure it's tested and maybe that's fine i can test a second time not too concerned about that so really what i want to do is look at the bottom of this range to uh develop what exactly we can expect from this move and this is kind of like almost like a legacy expectation here of what we would expect um you know you have this right here is a pretty untested region and uh even going back and seeing this a little further and if there's anything there uh sure would like to see it yeah and there is you've got this right here so that that's great it's tested but that's uh right there so so you're starting to define your range right like this is tested this one is not this one is not let's go to the one minute see if there's anything even more defining this is getting to be kind of the final spot where this move would hold if it holds and if it can't hold then you know this is kind of where it breaks so let's let's definitely spend a few minutes finding that okay now we're getting to the good parts here great so very clear on the chart right here this is a very very clear spot where it is so 8273 is a very very clear legacy target it's going to be our final moment in this trade if we're going to hold up this range of the move so we can kind of go back to the hourly here great level i love that level so immediately we can say okay from from this point here to here what is our let's talk about profit cap rate like this is our profit cap so this is kind of our max expectancy just like we did a profit cap up in this range down to here our profit cap was 10 last time because i believe it was 97.20 or something like that i'm just gonna use 9720. i believe that's what we had and it was all the way down to here is roughly ten percent where our profit cap was i believe it was this part of the range right here so we were talking about a 10 profit cap which it's perfect it hit um and now we're recreating that same scenario right so we're in this kind of profit cap scenario where this is going to be the max of the move if this level breaks you're you're very much going to be down in this range here so we've defined the ranges that can be a possibility here we've defined our profit cap and now we can work inwards from that right we've created these exterior moments just like levels and trends we've created these exterior moments even a profit cap here is kind of an exterior moment because it's going to have interior moments too right like an interior profit cap would be something like this like oh we could go here okay well when we lose this level then we're gonna go to this level right or or something in this range so this is like range one right here range two right here range three down here so then you kind of have your three profit cap so if you're in this trade right now say you short right now and your profit cap is here yeah you've got a pretty cool and easy two percent great and then and then maybe into this you've got a four percent and then maybe into this you've got like a full ten percent so so that's kind of immediate expectation almost think of it like scalp expectation swing expectation position expectation not saying that the longer you're in this move the more you're going to make what i'm saying is that you have three different kind of time frames that it's going to take to get there obviously one level is going to be hit it's going to have to collapse it's going to go to the next range it's going to have to collapse into its final range which is going to cause a reaction up right good we've established some profit caps on this we've developed the levels that we want to look at and maybe we need to go and relook at this top side here now that i'm looking at this on a smaller time frame we have this i believe on the four hour which which really does look like this on the one hour so working down in time frame so this was the four hour completely unencumbered which which is nice but then but then really we want to have it more specified to uh the exact moment so we have something like this right here if we go back to the four hour it's relatively the same level like you're relatively the same level there this right here which could be target one this right here which could be target short two and then possibly you have something even deeper so so something like this looks pretty uh pretty decent right here this also looks decent too this is the back side so the southern choice becomes between backside front side combination levels here on the top so then you have you know your range up top so you have your range up top you have your range below and then and then you're going to have more pseudo ranges too right like you're going to have this guy right here and that was tested there so then you're you're right here right now that's a that's a pretty decent level it's a untested range as this one here tested right to the right and that's tested there this range is tested once so you could say that once this breaks right here whatever this range is so that's what's testing right now so this range here on the higher time frame could go after this right here see then you have a few different targets above too so okay that's fine we just want to develop a few different targets on both sides to talk about trigger points really the discussion about trigger points is the piece of work that we do after we've kind of entered this trade so we're going to enter this trade with trigger points in mind and and we are going to say okay we've got our targets what do we do with our trade like this is a technical analysis part of this right like this is the uh the ta part of this i'm not sure why i had that level mark there i'm gonna leave it there i don't want to get too much into level finding and it's a common practice that i do where i mark my whole levels i'll go back into my charts remark them see which one makes the most sense that's common practice right like even here i'm looking at this and i would say oh like actually this looks really good right here this back side is tested i think yeah this front side is pretty good right here so so i'll commonly go back into my charts just as a heads up i'll go back into my charts to see what level makes sense and continue to go on okay we're going to rewind this a bit and treat this as if it was a trade that we are in okay so trigger points become the moment where we exit trades a trigger point is something where we are in a trade okay so we've executed a technical analysis portion right we've executed a technical analysis piece and we are saying okay procedurally where does it make sense to either get out of this trade or take profits in this trade right so this is the part of procedural analysis where it's kind of execution right it's it's less technical based um and more decision decision-making right so except in in trigger points it's hybrid right it's again it's kind of like the ultimate form where you're combining procedural and technical you're using what are called trigger points so let's just use um an entry point so so we're going to just say okay we entered here on this whole level and that's fine you've got a backside hold level here we'll so we'll take it back to that moment in time you've got a backside hold level here you're saying okay i want to enter here as along great the whole level helped you're going to make your uptrend right you you've got an uptrend your whole level is held this is no longer part of the move and instead you have whatever's developing in this move now right like your whole level on this side so so you've got a whole level on this side that you don't want to break below and uh you've got a trade that you've entered based on this hold back here so now you've created a trend so a trigger point is something where we run through our charts and say where do we take exits okay so you're going to have different exits right you're going to have your holds up top right so you can you know you're going to be either here or here you know depending on how much profits you're in right so so the first thing you're going to do is you're going to say okay what's my profit cap on this trade well okay let's see this hold over here this was hit so that this is not going to be respected okay so so the range is back here all broken this has been hit this has been hit here um this has been not touched so so you have this level going to be polarized gapping to this level and then even i'm going to go to an hourly chart here and say okay we're more like likely in in this piece of the range here right so below this and above our previous price so that's kind of like right here right so this looks like a good spot and if you want to take profits back side you would measure that right you would say okay i've entered here on this whole level and one of my profits to this level it is 3.8 to this level it's 4.17 yeah i think 3.8 is good i i like 3.8 here i don't i don't really feel like i need to uh push the marquee on this one most likely it's going to go up a little higher if i had to pick a level i'd pick this one personally because i'm a little greedy but you know for purposes of profits which would end up being moved to this level for purpose of profits i think i think it's it's okay to just take 3.8 here so i would take 3.75 and set up my my short for the next trade but if you wanted to get really greedy i think i think for the purpose of profits it makes sense to just take the easier exit especially when you're talking about three percent or something like that right so you're in this trade you've entered right here you've drawn your trend this is what's going to hold the move and this is where it's going to go so we can delete this one so what do your trigger points become your trigger points become either targets or areas where you exit a trade so so it you would say what's your trigger on this trade the hold of the trend right like that's the way i would uh verbally communicate it so if you guys knew trigger points i would say okay what's your trigger on this trade where's your trigger and uh you'd say okay trend and target those are my triggers okay so those are both trigger points so you would say okay i've got two trigger points two trigger targets and uh trend right what's your triggers two holds and trend oh okay two holes then i would instantly know okay you've uh profit capped this move you've profit capped it to here and to here so you've got you know two trigger points on top two two holes and your trend so what that means is you're either going to exit here and look for the re-entry without breaking this right now this is a little bit of technical analysis this isn't the definition of trigger points the definition of trigger points is where we exit trades what triggers an exit right so what could trigger an exit i guess we're stepping a little too far ahead what could trigger an exit is you go and you break this trend so you you close this trend you get out of the trade in profits because as time goes on this trend is only going to go up right so as long as you're holding this trend you can just simply stay in this trade and you're one of your trigger points you can just say okay you know what i've entered here um there's no money lost if we break trend because i simply get out for uh a neutral sum trade there's there's no no profits no losses yeah maybe i missed the trigger up top maybe it went here but i was like okay i want to exit on trend break and it came straight down and you exited here fine you can do that on trades it just becomes more of a position trade right or not a scalp scalps are more enter a whole level take an exit re-enter another whole level take an exit right but those doesn't mean they're not trigger points trigger points are simply where we exit trades so like a really really smart one is trend because this trend until it's going this move is just going to keep moving up until this trend breaks hopefully i'm right about that and presumably i should be but uh this this will at a minimum even if i'm wrong even if it breaks right here before hitting this target even if it breaks you're still in profits it's just not as much as you could make but that's the whole point about triggers is that hitting a target is always going to be maximum profits so so hitting a whole level target will be maximum profits breaking a trend again is more treated treating this thing like a position trade or treating this thing like a swing trade okay because you could theoretically hit this whole level rate here right which is exactly what you did here and then go straight up before you know slowly coming down to this and then you exited here because you broke this before moving down right so so you could again you can treat this trade in two different manners like where were your triggers while your hold is a trigger that's where you exit and your trend is a trigger so when we when we look at this we have to start combining what a profit cap looks like where the maximum possibility this trade could go not only the kind of maximum possibility where this trade go but how we want to manage the trade so we're going to go forward a few candles here we've entered our trade great target one is hit how much did we make oh we made 1.2 relatively quickly and then and then we this is this is one trigger point because it is an exit like it's triggering us to exit the trade right so it's a trigger point to get back in the trade down on the whole level right but but we have the safeguard of this trend right so we're gonna go forward a bit got re-entry on i'm assuming that maybe this was a backside on a different time frame it's fine we're not gonna we're not gonna go and get too crazy with this right you break over this is obviously polarized this is exactly what we talked about once this level gets hit this is polarized to this point which is just going to go into a higher range so let's say we didn't take this exit rate here let's say we didn't take this exit okay we're gonna work with two scenarios scenario one we did take the exit scenario two we didn't so scenario one we already made one percent and we got back in the trade so now we're looking at another 3.6 we made 1.2 we're looking at another 3.6 okay for this example i'm going to say 3.28 again i would take this level but i would be using also other trigger points then more more interior pieces of this move such as an even more aggressive trend like this to see okay i'm in this trade what you know the balance between taking 3.2 3.6 or breaking this trend so so there's also a you know an interior balance there but we're going to work with two assumptions here assumption one is that we've done two trades assumption one is that we're still in the original trade back from here so in scenario one we are still in this original trade back from here you can start making more trigger points to say okay i want to be in this trade from here to here so once this trend breaks and we're just going to make sure there's nothing a little higher on the hourly uh there's not it would really would really be this point here to here there's an another trigger point right we're in this trade and we're even higher in profits we're in this trade and we're even higher in profits one second here i'm just going to uh close up my discord for a few moments people are starting to bother me um we are in this trade here right from this point and and we can exit this trade we're still in profits in scenario one right here we're still in profits from this trade here until we break this trend and and if we wanted to keep stay in this trend even more trade even longer we could we could simply just stay and it breaks here we can trigger out right there or we could stay in the longer trade here and and do a trigger exit there again this is going to be a dictation between what are you trying to do with the trade are you trying to go for a longer trade with larger profits so i want you guys to think back to this trade back here where we said okay we've got two percent four percent 10 right this is the same thing it's it's like okay the longer this trade is going on the more you're gonna make which means you have to use less localized trigger points so a localized trigger point would be something like this extreme one right here where you're saying i want to reach this target but i will exit if i break this because again it's your trigger point because once you start to lose that move once you start to lose whatever trends are starting to bring you there you're going to go back and test lower parts of the range like that's the whole point of trigger points and trends is that once you lose a trend you start attacking the next range down right so you have a trend trend is created if trend is respected you're moving the same direction right kind of like common sense that trend is broken this trend is broken it's going to attack a lower range just by default it's going to sync back to a whole level on a higher time frame or it's going to just go after the next range if it's polarized and that trend is the last thing holding it up