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How to Trade Breakouts - Simple and Effective Entry Tactics for Performance

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We have a slight gap down here. So you

can manage risk really tightly actually

and we immediately rally through and

really penetrate the prior days bar.

This is the best possible situation

where we have immediate strength off the

open. Rally strongly through that low

and managing risk at the stop you're

automatically up a bunch of risk

multiples if you manage risk at this low

of the day. So again thinking about the

negative if you you buy this as it

breaks through this and we reverse down

and break this low. That's where you

would exit with your stop loss. but

instead here you have an early entry

point up the right hand side of a base

and you have immediate profit here to

weather any of the pullbacks up the

right hand side. So that is a really

good example of an oops reversal. This

is how you accumulate versus lows where

the stock has pushed up off the low of a

base. It's formed 1 2 3 four or five

days of tightness and it keeps

respecting a key level. This could be

right above a moving average as well.

There's often confluence there. But the

key thing is that this range keeps

respecting a key level in the market.

And that is the bottom of the the range

and you can enter as it keeps confirming

up off that level. Basically, and I'll

define what tight and logical means.

We're looking to enter at a spot where

we can manage risk tightly as well as

logically. Meaning that the percentage

stop is pretty small. And we're managing

risk and placing our stop loss at a

logical place based on market structure,

based on a moving average. Basically, if

the stock hits our stop, it's a logical

spot that defines that the entry tactic

that we're using or the setup we're

using has failed. Entry tactics can't be

used in isolation. They have to be in a

strong stock. They have to be in an

overall mature setup like a base, like a

gapper, whatever it is. That's really

when they work best. You want to stack

the odds in your favor. And a big part

of that is looking for confluences.

Consolidation pivots are basically key

pivots and ranges that form up the right

hand side of a mature base. You've got

traditional base pivot up here. These

pivots are smaller in nature. These

ranges are going to be smaller than the

overall base, but they're clear lines of

resistance up the right hand side. And

your stop loss is either going to be set

at the low of the day as we break

through or at the previous higher low.

So that's how you can think about

[Music]

it. So let's go ahead and get started.

Welcome to the next Trader Handbook

webinar. Super excited to have you guys

here. This is going to be an excellent

one. uh we've already done three that

kind of lay that foundation. We've tal

talked about key principles, common

trading problems, really kind of our

philosophy that everything is built

upon. Uh then we provided kind of a

foundation with regards to technical

analysis, how we interpret charts and

the last two webinars or the last

webinar we dove deep into setups and

edges, gave the specifics ones we use as

well as just kind of provided a

framework to think about how you look at

setups and edges so you can apply it to

your own personal style of trading.

Because again, we're using our style as

an example, but uh the frameworks that

we're presenting can apply to mean

reversion trading. They can apply to day

trading. Whatever your style is, um

you'll be able to apply the concepts

that we're talking about uh to the to

yours specifically. Uh today, we're

going to dive deeper into the entry side

of trading, uh focusing on entry tactics

and trade execution. This is going to be

excellent one. It's the most slides

we've had, so make sure you stick around

till the end. We've also got some

giveaways and surprises in there for

you. And we're going to cover a lot

today. So, make sure you stick around.

And if you do enjoy this, please go

ahead and leave a like on the video.

Really helps us out. And if you're not

already subscribed, uh definitely go

ahead and do that. And before we get

into it, um if you're not already a part

of the Trader Handbook weight list, uh

please go ahead and register. We'll be

giving away a lot of additional

exclusive bonuses such as educational

articles. I'll be sending one later

today on a specific entry tactic that

we'll be talking about in today's

webinar. Uh so if you're not already a

part of that, definitely join right

here. Uh here's a quick preview of what

you get. We've already sent model book

chapter preview, a bunch of other

educational articles that dive a little

bit deeper into what we talk about in

the webinars. Um and if you sign up,

don't don't uh don't feel like you're

missing out because you'll be sent these

ones that we've already sent out um

after you sign up. So uh definitely go

ahead and register here. Again, this is

completely free. uh you can just scan

this QR code right here and uh join this

list. And you know, I'm really looking

forward to uh continuing to send out

educational articles. Again, I'll be

sending out one later today to everybody

who registers and joins this list. Uh

we'll also be giving away a lot of

stuff, including a trade analytics log

later on. Uh so you don't want to miss

that. So go ahead and join uh this

weight list, especially if you're

watching uh this

recording. All right, let's dive deep

into chapter 5. Uh the the subject of

today's webinar covers uh what we cover

in the Trader Handbook, chapter 5, entry

tactics and trade execution. Getting

really into the nitty-gritty about how

we actually enter orders after we've

identified a promising stock based on

edges and setups. This is kind of the

last layer to actually entering a

position. And I wanted to start out with

this quote that I think puts everything

in perspective, right? because we're

going to be focusing on a zoomed in view

today about how you actually enter and

manage orders and all that. Uh but

without the larger context, the setup,

the edges, the market context, which

we'll get into into a dedicated webinar,

the entry tactic is just the last piece

that in isolation is not effective. So

everything has to come together. And

we'll talk about context uh quite a bit

in today's uh webinar, but the quote is

from Sunzu. Strategy without tactics is

the slowest route to victory. tactics

without strategy is the noise before

defeat. So, a lot about what we're

talking today uh about is, you know,

specific patterns, short-term patterns,

but you can always find those patterns.

And the reason that they're effective

when they are is because they're used in

conjunction with a promising stock, you

know, a strong showing a lot of edges in

a overall larger context that's

constructive, showing accumulation, and

has a strong setup. So, we always want

to think about edges, setup, and then

entry tactics is kind of the last piece

to the puzzle. So, here's the agenda for

today. You can see we've got a lot to

cover, and this is going to be a really,

really good one, guys. Uh, first getting

getting into king components of entry

tactic. Uh, then talking a little bit

about risk management, although we'll

expand on that quite a bit in the next

webinar, which is completely dedicated

to stop losses, setting them, all that.

So, stay tuned for that. Um, but we

talked a little bit about tight and

logical stops here. Uh then pairing

entry tactics with setups, which ones we

use with which setup that we talked

about in the previous webinar. Uh we'll

talk about the key level reclaim entry

tactic, the consolidation pivot/range

breakout entry tactic, the four ways to

trade ranges. Uh then we'll talk about

key level pullbacks, oops reversals,

opening range breakouts, intraday base

breakouts, high volume close pivots, uh

volume support, and then overall the

trade execution process, how we think

about, you know, getting ready to

actually enter an order. So this is

going to be really, really good.

Hopefully you guys are uh are really

interested in this. So, let's go ahead

and dive right in. All right, so what is

an entry tactic? Uh like I said before,

entry tactics are the final layer.

They're the last piece of the puzzle

after identifying a strong stock with

edges and setups. Uh they basically

allow us to control risk tightly and

position size adequately by helping

traders enter positions with precise

stop levels and risk control. Uh like I

said, they enable proper position

sizing, allow us to actually, you know,

turn the needle when a trade moves in

our favor and well-timed entries allow

us to put on enough size uh while

managing risk to actually make a

difference in our accounts and that's

what leads to performance at the end of

the day. Uh then entry tactics are

execution focused. There's a clear buy

point called the pivot point. Uh there's

a clear level to manage risk. I know a

lot of you guys, you know, have have a

question where do you place stop-

losses? um you know this today will

answer that question with every entry

tactic. We'll talk about exactly where

we place a stop-loss and different

variations as well depending on the

situation. So like I said the entry

tactic is the last piece of the puzzle.

First comes the edges. How we get a

stock on our radar, how we identify high

potential. Next comes the overall setup.

This could be a base. This could be a

gapper. Whatever the larger pattern that

you like to trade and you've studied

historically and is effective overall

and shows up again and again in the

biggest winners, that is the larger

setup. Then the entry tactic is the

specific buy point. This the smaller

pattern. And in this case, we've got an

example of a consolidation pivot. The

smaller pattern that completes the setup

and allows us to manage risk tightly at

a higher low at the low of the day uh at

a moving average. Uh this is the last

piece of the puzzle after we've

identified a strong stock with edges and

it is basically exhibiting a larger

pattern called the setup. This is the

last piece of the puzzle that allows us

to actually enter and jump on a trend

and you know participate in a strong

move. So let's get into the key

components of entry tactic. Like I said

um basically there's two different

parts. There's the pivot point, the

actual entry area and then there's where

where you place a stop. And both of

these um work together to define the

risk we take on a particular uh trade.

So if you think about this, this is your

buy point. This is your cost. And then

the the difference, the distance between

your cost basis and your stop defines

the potential risk that you have. And

then this dollar risk multiplied by your

position size is your overall risk on

that position. So this amount, this

distance is something that we can set.

We can choose where we enter. We can

choose where we place our stop and we

can also choose our position sizing. And

that is what allows us to specifically

define our risk. And we'll get into this

like I said quite a bit in uh in the

next webinar and really get into the

math behind it as

well. But one thing I want to emphasize

uh just in this webinar before before we

before we continue um just turn up your

volume a little bit. It's been a

consistent comment. There we go. That

should be a little bit bigger. Um, all

right, cool. So, before we get into it,

uh, I just want to emphasize this

concept of tight and logical stop-

losses. And this is something I learned

from Ross Haber. Uh, he preaches this

over and over. It's it's a fantastic way

to think about it. Um, basically, and

I'll define what tight and logical

means, we're looking to enter at a spot

where we can manage risk tightly as well

as logically, meaning that the

percentage stop is pretty small. And

we're managing risk and placing our

stop-loss at a logical place based on

market structure, market structure,

based on a moving average. U basically,

if the stock hit hits our stop, uh, it's

a logical spot that defines that the

entry tactic that we're using or the

setup we're using has failed. And I

think this is a great quote from William

O'Neal just stressing the importance of

uh placing stop losses. Uh buying a

stock without knowing when or why you

should sell it is like buying a car with

no breaks or being in a boat with no

life life preservers or taking flying

lessons that teach you how to take off

but not how to land. And every single

market wizard, William O'Neal included,

just stresses the importance over and

over of managing risk, managing risk.

and the entry tactics buying right what

we're presenting in this webinar is

really how we are able to manage risk in

real time set our risk all of that so

this is a really really important quote

all right so getting a little bit deeper

into tight and logical stop-loss just to

put it into perspective before we dive

into the entry tactics um tight and

logical basically means that entry

tactics must allow for a tight and

logical stop logical means a violation

would signal the setup/entry tactic has

failed so if we enter here and we break

below the stop that means that this

higher low has been violated. This pivot

breakout has failed. Um and you know

we've seen a reversal down. However it

breaks uh that would basically signal um

that it has failed. Uh logical basically

means that uh a violation would oh yeah

sorry I already I reported that part. Uh

tight the stop tight basically means

that the stop will limit losses to just

a few percent. And if you can't set such

a stop I think this is really important.

There isn't a setup. Wait and be

patient. You want your decision- making

process to have the least amount of

layers. So, if a stock and you know

that, you know, you're interested in

the$150 buy point or something like

that. Um, and that stock gets above 50

and after that you're starting to look

into where do I place my stock? Where do

I place my how much is my risk? How much

should I be buying? What is my position

size? You're already detect you've

detached yourself from the process,

right? like you you've added five layers

of decision- making for you to press

that buy button. So all of that, you

know, the sequence of making, you know,

whatever leads to pressing that buy

button, position sizing, entry tactic,

where your stop loss should be, is it a

good stock or a bad stock, that should

all be moved offline. That should not be

real time, right? Uh that should be done

when the market is mostly closed. That's

that's how that's how I found a lot of

success is to not, you know, put myself

in a position to make those decisions

while the ticks are moving up and down.

It creates a lot of chaos and it creates

a lot of uh bad decisions basically. So

we'll speak to that in terms of how you

position size in future webinars, but I

think you know the your preparation has

to be offline not real time essentially.

Richard uh we can continue. Sorry about

that, guys. Uh I don't know why Zoom

failed us, but uh we're back. All right,

I'll restart the slide. So, what does

tight and logical stop-loss mean? Uh

again, entry tactics must be must be

tight and logical for it to be a valid

entry tactic. Logical means that a

violation would signal that the setup/

entry tactic has failed. Again, if we

enter through this pivot point and we

start to move up, then reverse down. I'm

sure all of you guys watching this have

experienced that at some point. And we

violate the stop. That basically tells

us that this entry has been invalidated.

We've undercut the higher low where we

place our stop and we have to wait for

the next setup, the next entry tactic uh

to potentially revisit the stock. Uh

tight means that this distance is just a

few percent. And this is important

because it allows us to um you know not

lose too much when we do experience a

stop, which we experience stops all the

time. You know about 50% or even more.

Um, you know, many of the market wizards

have about 40% win rates. So, six out of

10 times they're they're experiencing

losses just like this. And keeping those

six out of 10 times small is the key to

performance over the over the long over

the long term. So, that's what's so so

important. So, that's what technological

stop- losses. And again, we'll dive

deeper into that uh in the next webinar.

All right. And I think this is a really

good metaphor that the last time we did

this with the ultimate trading guide, a

lot of people really this it seemed like

this resonated with a lot of people. Um,

stop-losses are simply the cost of doing

business in the market. They're

essential for longevity to be able to do

this for decades. They help, you know,

get you out of bad markets and

corrections like the one we're

experiencing currently. And again,

they're simply the cost of doing

business. And what I want you to think

about is every trade you take is like a

ferry ride. I'm in Seattle. We we take

fairies all the time to different

islands and and all that. It's awesome.

Um and your stop loss is basically your

ticket fair to ride that trade to jump

on that chip. And sometimes you even get

to keep it. You you get this the trade

works for you and and you get your money

back. Um and you actually get to decide

how much your stop is. You get to decide

how much you're willing to pay to try

that trade. And we define that amount by

our entry tactic, by the distance

between our cost basis and our

stop-loss. So all in all, don't fear

stops. Thank them. They protect you.

Allow they allow you to keep trading for

decades and experience that compounding

over time. And any experienced trader

will tell you that the number one rule

is to cut losses short and have, you

know, let your winners run, cut your

losses short. You've that heard that a

million times, but there's a reason

that's repeated over and over again.

It's because it's one of the core truths

of trading is unless you cut your losers

loser short uh you're going to

experience bad losses that set you back

weeks, months, even years sometimes. So

this is really really important and you

know we can't predict the outcome of

trade but we can decide how much to pay

to try it again. We can decide how much

our ticket is going to cost, how much

our stop loss is. We can define that

risk very concretely and entry tactics

allow us to define our stop clearly at

the low of the day, the higher low, the

key level, whatever it is. But I think

what's really important is that your

stop loss, just think of it as a ticket

and you can set how much that ticket

costs to actually try that trade. Uh

Ryan, anything you want to add on kind

of this way of thinking about things or

just how you think about stop- losses

and their importance in in general? I

think they should be respected as a

trader. um you we we let our ego egos um

get get in the way and we when we plan

out a stop and it hits you just have to

take that uh learn from it and move to

the next trade. What's bad or what you

know a lot of new traders and phase one

and phase two traders put themselves in

is they don't respect you know they

don't respect the plan that they put

forth and that's really what hurts them

in the long run right when you're taking

a swing trade and a position trade with

a uh 4 to 8% stop-loss and or in that

range depending on your style when that

hits you have to take the loss and you

have to move on. And that's just the

reality of trading. There's no absolutes

uh and there's no I would say guarantees

that any particular setup, any

particular edge will work, you know,

more uh 100% of the time. So recent

example of a trader that I spoke to uh

is they they purchased Tesla right

around the $400, you know, level and

that was a major support in in their

opinion. They planned that trade out and

it broke their stop loss and now it's

down, you know, 40% from $400. And that

trader is still holding on to it because

he he he took a swing trade or a

position trade at a level of support or

a key level that he determined on the

charts, but then he failed to respect

his stop-loss. That results in huge draw

downs in your your account. And that's

really the difference between a

consistent trader takes losses

consistently when a stock comes in and

hits their stock or takes you know

profits consistently. That's what that's

what we spoke about in the first two

webinars in the consistency phase. So

that's really what se separates the two

type of traders that we always speak

about the boom and bust and the

consistency

uh consistent trader right. So yes,

you're going to have losses. You have

to, you know, you're you're going to

lose you're going to have more losing

trades than winning trades in your

trading uh journey. But what will happen

is your winners will be far greater in

terms of percentages. So taking those

small losses along the way will be very

very easy. Uh it should be very very

easy to do, right? If you look at the

long um the the the long term, and I

really like another analogy that that

Yen in the chat said, uh if you get on

the wrong train, get off at the next

station, the longer you stay, the more

expensive the return trip will be.

Exactly. And and losses work

geometrically against you. Um you know,

you've all seen those charts where if

you lose 10%, it's about 11% to get back

to break even, but getting losing much

more than that, you know, losing 50%

requires a double to get back to break

even. So, we want to keep it as tight as

possible. Um, you know, I like to keep

it, you know, around three 3 to 4%. Um,

Ry, I know you keep it even tighter than

that with with your entries. And again,

we'll we'll get into stop losses and

really specifics uh in the next webinar.

Uh, but yeah, and also one thing I say

is, you know, corrections in the market

are built to turn a swing trader into an

investor and an investor into a

long-term investor, right? So, that's a

mechanism of not respecting your stop

losses. you have to respect them. If you

if you planned uh and you and you follow

your plan consistently, you'll be a

better trader because of it. And if you

continue to ignore them, then you just

become a bag holder in stocks and now

you're part of companies that are down

80 90 uh% from their highs and you you

know they will come back. Maybe they

will come back in three to four years,

but you're now detached from your

objective of being a swinger position

trader. Let's keep going. Yeah. So

diving into the meat of today's webinar,

let let's talk about entry tactics

finally. So I think the big highle thing

that we want to talk about here is

context and confluence. We've talked

about how context is so important. Entry

tactics can't be used in isolation. They

have to be in a strong stock. They have

to be in an overall mature setup like a

base, like a gapper, whatever it is. Um

that's that's really when they work

best. You want to stack the odds in your

favor. And a big part of that is looking

for confluences. Here in the diagram

here, we've got example of a base after

a strong uptrend. We've got a moving

average here, a representation of moving

average. And this entry right here

coincides with a reclaim of the moving

average as well as this pivot here. And

this is the type of thing we want to be

looking for or on a pullback by, you

know, pulling into the moving average as

well as this prior pivot. Whenever

there's stuff like that in the market,

more participants are going to support

the stock and buy the stock at that

level. And that's what allows us to

increase our probabilities and gain

confidence in the setup. Uh and one

thing that I do want to emphasize here

is today, especially as we get into um

some of the gapper setups and entry

tactics, um we will be talking a little

bit about some intraday setups. But I

think I and I want to be really clear

here. Unless a stock is set up on a

daily and weekly chart, there's no point

in looking for an entry tactic or entry

on an intraday time frame. You can

always find entries on an entry time

frame, but the ones that actually work

are because the stock is set up and

under accumulation uh and set up on the

daily and weekly charts. So, don't lose,

you know, don't don't look at the trees

and and not see the forest uh whatever

that saying is, you know, focus on the

overall the context and make sure that

the stock is set up on all time frames

if you're going to be looking at

intraday. I think too many beginning

traders, you know, say, "Oh, I I can

manage risk tightly on the five minute,

but the stock has to be set up on a

daily. It has to be set up on a weekly

chart for a stock to actually make a

meaningful move. So, that's really,

really important. Um, all right. So,

let's get into it. So, we talked about

three main setups in the previous

webinar. If you haven't yet, uh, check

the link in the description. Uh, we'll

we'll be posting the playlist uh, to the

previous webinars. U,, but, you know,

there's three main setups we talked

about. The gapper, base breakout, and

launchpad. Each has their own associated

entry tactics. There's some crossover

because you can use a range breakout

after a base breakout. You can use a

range breakout after a gap. Uh but you

know, in general, these are kind of the

entry tactics we'll be talking about

related to a gapper and these are the

ones related to the launchpad. So this

is kind of how how everything's

interchange. So for base breakouts and

launch pads, they're both kind of

overall base patterns that are forming

up. We look for key level reclaims,

consolidation pivots/range breakouts,

key level pullbacks, as well as oops

reversals. Then for gappers, we're

looking for on day one opening range

breakouts and intraday basis. We've got

a bonus tactic there that you'll have to

stick around uh to see what it is. And

then, you know, after day one, and day

one is the day of the gap for everybody.

Um after day one, there's other entry

tactics that we can use like volume

support, high volume close uh pivot, as

well as a range breakout after uh day

one of of of the gap. Um and I want to

be clear, we're going to talk about some

intraday setups on day one, but to have

success with a gapper setup, you don't

need to trade day one. You know, often,

you know, you can kind of see the cards

uh at the poker table uh before you

decide to enter by waiting for day one,

screening for day one, and then looking

for an entry tactic that we talk about

right here after the fact. Um huge gaps

on big volume are often the start of

longerterm trends. So, don't feel like

you need to rush and and get into day

one if you know that's scary for you or

you don't feel like you can manage risk.

you can always use these other entry

tactics that we'll focus on uh to enter

after that day one um move. So this is

kind of kind of just setting the overall

context and we'll start with talking

about these right here. So before we get

into that um just on the very short term

we're going to be talking about ranges

which can be 3 to 4 days or as short as

2 days. These are just some priming

short-term patterns that we talked about

in the technical analys foundations um

that you know are useful to know because

they clear say set clear pivots that

we'll discuss later on. So we've got the

inside bar where all the price action is

contained within the previous bar. This

high is a breakout of this consolidation

on a very short-term basis. Then we've

got the upside reversal and this could

be where it opens here, pushes under the

low the previous day and and closes

strong or like here which is actually an

oops reversal. we open below the low and

uh you know close strongly and then

follow through through the high is

another potential pivot point. And then

here the last short-term pattern that

kind of primes a mature setup is this

positive expectation breaker where we

have a very negative close and we gap up

and close strongly and these highs can

be that pivot point. So these just kind

of set pivots within the context of the

entry tactics we'll talk about today.

And you'll see these all over the charts

right before a stock makes a strong

momentum move. So that's why we want to

uh you know present these and keep these

in mind as we go through the examples

today. All right, but let's get into the

first entry tactic that we'll be

discussing and that is a key level

reclaim. And a key level could be a

prior base pivot. It could be, you know,

a key low like with this example or it

could be a moving average. There's some

uh dynamic at work here where there's

basically a key level that a lot of

market participants are watching.

Whether that's the 50 SMA, whether

that's the 200 SMA where, like we said,

there's a prior swing low, that's very

obvious. We're looking for a clear

potential support level that gets

undercut and then gets reclaimed. That's

what we're looking for here. And you've

got an entry as it reclaims the key

level and your stop would be under the

higher low um right before that reclaim.

And here's the basically the same

example with a moving average where we

reclaim it. This is the entry point and

then your stop would right be right

under the higher low right there. So

here's an example with Uber back last

year. We have a prior base low where

everybody thinks this is the key level.

Uh and the stock is bottom. It starts to

move up, gets rejected down, moves down

again. It's respected once. So you're

seeing prior respect for this level

here, here, and here. And then what

happens? We lose it. Everybody who used

this low as a stop got shaken out. And

you know, we push lower and it looks

like we're going to test the 200 day

moving average. What happens though? We

get a positive expectation breaker where

instead of following through from this

bar, we gap up and hold and then we

start rallying back through that level.

And that is the entry point and your

stop would be right under this low or

even the low as it pushes through. We

get a gap up and a strong trend and

finally a breakout here. So this often

happens actually right before the stock

is ready to move up the right hand side

of the overall base. This is a really

good example of a base pivot or actually

a base low uh that gets reclaimed and

then we're off to the races and enter.

So, this is kind of a key level reclaim

and we've got an example here with a

moving average. This is Reddit where

we're in a consolidation in a base. The

50 SMA is above the stock. We see it be

rejected once and we actually pop

through it, retest it, and then close

strong. This is the 50 SMA reclaim right

here. And we're off to the races. And we

know that Reddit did tremendously well

uh from this buy point. We also get a

reclaim of the 21 EMA here, but that's a

little bit more advanced. Uh and in

general for bases, a 50

SMA 50 SMA reclaim is a little bit more

significant. Uh so that's an example

with a moving average. And this allows

you to manage risk right at this low or

at this higher low as well after it pops

through. I like this one here because I

like my stocks a little bit tighter. And

to me, if we pop through the 50 SMA,

retest it, and then close strong, it

should not violate this low and close

below the moving average again, and it

should just be off to the races as it

did. The best stocks just go after a

successful entry tactic. And that's

something that you really want to look

for. Um, let's see. Ry, anything you

want to add about a key level reclaim,

both with a a level or a moving average?

I think uh the the key moving average

the the 50-day is one that's used by a

lot of traders and there's a lot of eyes

on that moving average. So it's a key

level just like the 200 day when we go

into a deeper correction. A lot of the

eyes from an index perspective go to the

200. These are important levels in the

market. There are a lot of traders and a

lot of folks watching these. So when

they are reclaimed, it creates instant

momentum to the upside or at least a a

level for you to consistently watch. Uh

the example, you know, that I see on

with the Reddit uh if you go back uh to

that is if I draw on here, they're going

to see it, right? Yep. Yeah, I was going

to point that out. This is kind of your

horizontal resistance area, right? If we

were to there's confluence look at yeah

so stands you know always looking for

that you know the stock is in a

downtrend now it's going sideways and

now it's built this horizontal

resistance area and then that's a

confluence of the 50-day as well. Now

you have two factors going at once. One

is the stock is having a tough time to

go through this particular level on the

chart. Second is that the 50-day has now

flattened which means for the last 50

days the stock has now consolidated and

built out a sideways base. Right? Uh

those two things and what happens

essentially is when we pop through that

50 is that multiple styles or multiple

folks that are looking at technical

analysis in a different way. Plus just

the 50-day being a key level in the

market for a stock that is super liquid,

right? and a younger company. It's also

again showing relative strength, right?

It's outperforming the markets within

this consolidation. All these factors

when they come into play and it breaks

that the the really key part to that is

what Richard said. There's no reason for

this stock to come back and violate this

low. That that is what an entry tactic

is. It gives you an entry, but you know

your stop loss. If this stock were to

come the next day, let's just say

hypothetically none of this happened,

right? Uh up here and next day just came

in and broke that at least you know

exactly where you're going to get

stopped out, right? And if that

happened, you take that loss and you

move on to the next uh setup and look

for that formation to form again. Over a

span of trades, regardless of what the

name is on the stock, Reddit, Meta,

Uber, doesn't matter. this type of

formation will play out and not every

formation let's say if that one out of

you know three out of 10 fail like that

if the rest of them work you you're just

going to have asymmetry in terms of your

performance in the markets. The key here

is a lot of traders struggle with the

fact that what makes this, you know,

entry point really, really good right

here is the fact that you know your stop

loss and you know that the stock should

not if it's a leader and it's about to

run, it should not violate this area.

That's the most important. And one thing

I want to add because I saw a question,

you know, why are why this reclaim

versus this reclaim? And that's a really

good question. The reason being is going

into this level, we've already expended

some energy moving up off the base low.

Not too much, but you know, you've

already run quite a bit as you're

approaching this horizontal line of

confluence as well as the declining and

pretty sharply declining 50 SMA here or

relatively sharply declining here. And

you know, you could try this and your

stop would be at the low and the next

day you get taken out and that's just a

stop stop hit. So this this entry is a

little bit better. This entry isn't

terrible, but you get out with a small

loss. And that's trading sometimes. And

I really like how after it failed, what

did we do? We pulled in on lower volume

into the 21 21 EMA were supported, had

an upside reversal. Remember the the

priming patterns that I talked about,

and then the next day, we get the the

better entry tactic. So even this one,

even if you tried it and failed, you

don't want to be discouraged and you

want to keep an eye on the stock because

it actually set up even better right

here as we're talking about with the 50

SMA reclaim. So I think this is a really

good example where again the entry

tactic in the stop would be the low of

the day because if it violates that, it

looks like another failed breakout right

here. So this this is a great example

with Reddit and definitely one to to

study. Uh Ryan, any any last bits you

want to add on a key level reclaim?

No. All right, cool. The next one is

going to be a buy on strength. Uh, and

it's a consolidation pivot/ range

breakout. And consolidation pivots are

basically key pivots and ranges that

form up the right hand side of a mature

base. You've got the traditional base

pivot up here. These pivots are smaller

in nature. These ranges are going to be

smaller than the overall base, but

they're clear lines of resistance up the

right hand side. And your stop loss is

either going to be set at the low of the

day as we break through or at the

previous higher low. So that's how you

can think about it. And you can see how

we get a range breakout pull back into

the range and then rebre out. This

happens quite a bit as well as sometimes

this next one is a pull into a moving

average. Um and again moving average

reclaims might be confluence with this

first uh consolidation pivot breakout.

So let's get into some examples. Uh this

is shop way back uh when it was a recent

IPO. Uh it's in an overall basing

pattern. It's a recent IPO. That's

that's one edge to look for. It's been

showing relative strength. So again,

that's how we get the stock on our

radar. We're not just looking at this

entry tactic in isolation. We're looking

for edges, and then we're looking for an

overall setup, and then we're looking

for a tight area. And this is the

consolidation pivot right here. You can

see we moved off the base low, went

tight for about four bars, five bars.

This high becomes the clear line of

resistance. And we get a clear breakout

pickup in volume as we push higher. This

is before the base pivot. So that's why

this is called a consolidation pivot

breakout and we actually consolidate

right on the base pivot and then keep

going and this one I think doubled or

tripled from this point over the next

year and then and then I think even more

so um you know over the next 5 years or

so of course as we know and one thing I

want to be clear here is in addition to

the relative strength you've got

tightness at the bottom of the space

you've got this positive expectation

breaker there's signs of accumulation

within the space and that's what I'm

always looking for before I'm looking

for an entry before I'm looking to use

an entry tactic. I'm looking for signs

of accumulation, tightness at the bottom

of bases, strong moves. You've got this

subtle gap here, which Stan Weinstein

always looks for up the right hand side

of the base. And then we go quiet and

tight on a decline in volume. Again, a

winning characteristic that we talked

about in the previous webinar as the one

one before that. And this this range is

only about 3 4% and we get a clear

breakout on a pickup in volume. And this

is the entry point right here. Um, this

is Ross Ross Haber's breadandbut setup.

Um, and this is one I use quite a bit as

well. This is kind of my preferred uh

entry point for a promising leader. U

and it's really really effective and

shows up again and again if you study

winners. There's always a consolidation

pivot breakout up the right hand side of

a base. Here's an another example with

RKLB from the previous year. So again,

we're showing stuff from like 2017.

We're showing stuff from last year. This

appears over and over again if you go

back and study previous winners. Uh

these are a little bit more subtle and

this is why we're doing this webinar to

help you spot them. And here we've got a

larger basing pattern. I don't show the

horizontal line uh the the pivot right

here. This but this is resistance and

this is overall a base. And you've got

many consolidations within this base.

And then the consolidation pivots

actually are very subtle here where

you've got just two days of tightness,

three days of tightness, three days of

tightness right here. And the pivot is

this key resistance level where you've

got the high of the range. And this is

RMV down below. This is just

highlighting that tightness for you. And

whenever RMV goes to zero, I look for a

tight area right here, right near the

highs. That's my consolidation pivot buy

point. And you can buy here. Expansion,

contraction, expansion, contraction,

expansion. Uh so these range breakouts

are allowing you to buy when a stock is

coiled within an overall setup and

participate on the momentum moves

higher. That gives us immediate profits,

allows us to jump on a trend. If you're

a swing trader, you're selling into

strength. And if you're a position

trader, you know, you're riding along

for the ride and and trying to hold uh

as a stock uh keeps trending above the

moving averages. But consolidation piv

pivots whether they're um you know 5

days, 4 days here or I wanted to show

this example because you've got just two

days, 3 days, 3 days here, they can be

pretty pretty tight. Um and you know the

tighter the better. You've got inside

days, upside reversals, tight closes

within them. That's what makes the best

consolidation pivot breakouts. We've got

another example. This is Nvidia back in

2021. I believe you've got two bases

here. One here, one here basically

stacked on top of it. And let me

actually zoom in here so you can show

show it a little bit clearly. Let's

focus on this base for the time being.

We've got a pullback below the moving

averages. We've got a very negative day.

The expectation after this bar is fall

through to the downside. What do we get?

We get a positive expectation breaker. I

I'm telling you, if you study bases,

these positive expectation breakers

happen all the time at the bottom of

bases as well as up the right hand side.

We get a move up into the moving

averages. We get rejected. This is

classic. we form an overall uh mini base

within this overall base and then we get

two days around three days of tightness

where these highs line up and this is

your consolidation pivot again a pretty

subtle one uh but this is your

consolidation pivot it lines up with a

reclaim of the 21 EMA you're buying

through this high saying your stop at

the low of the day very tight or even

the low of this prior day which lines up

with the 200 day moving average uh still

within a few percent and then we move up

expansion contraction again you're

buying this outside day through these

highs adding to your position or

building it up, expand a little bit, go

tight again for two days on a decline in

volume, very low volume during these

tight areas, and then we expand again on

big volume. And you could buy again

through here, fill out your position

even before the base breakout. Going

into this next base, we get another

pullback below the 21 EMA, another

pullback below the 50 SMA. Again, we

respect the 200 SMA. We get a nice big

reversal up off lows and these highs

line up to form the next consolidation

pivot off these lows. We get a break

through that expansion higher, another

consolidation right here. This is the

pivot through these highs. So again,

that's how I'm sping these. I'm looking

for ranges. I'm looking for where highs

line up and that's where I'm drawing

these lines. And you're buying the

breakouts through that um before the

overall base pivot and then you're off

to the races. And Nvidia had a nice I

think 50% 40% move uh from this base

breakout. Um, so that's a little bit

about the range breakout. Ry, uh, I know

you don't you might you kind of add to

your position on these, but anything you

want to add? Um, maybe maybe talk about

looking for relative strength phase and

then the the first contraction. That

might be a useful uh, bit of advice for

everybody. Yeah, so like we spoke about

in in previous webinars, for for me

it's, you know, as the pattern builds

out, I want to be I want to have it on

my radar. the more I learn how a stock

trades uh the more I can focus in on it

and essentially for me like some

somewhere around here would be you know

the stock is outperforming the markets

clearly so the relative strength line is

above its 21-day average uh and it's

outperforming the markets over a span of

21 days right uh we've built out a base

and a consolidation uh one of the things

I'm looking for right around this area

is tightness and price action which you

know now with RM MV it makes it a lot

easier to spot on the charts uh on a

relative basis right so we have relative

tightness we have a stock outperforming

the next thing is the theme you know the

semi-theme uh in the markets has always

you know over the past couple years been

the primary leader uh so and nothing

really gets better than this the stock

is super liquid right it trades really

well I can buy a lot of this stock and

you know not influence price or worry

about if this doesn't work out what

happens and then the most important part

is when I am getting involved my stop

loss should be known and I try to

operate within the 3 4% range uh cuz I

am a momentum trader primarily a swing

trader I want a stock to move up after I

buy it and I don't feel the need to you

know sit here and start to be an

investor all of a sudden because that's

not my objective or my goal when I'm

trading the markets. So you know uh the

RMV the relative strength phase uh where

it's outperforming the theme in the

markets when you put those things

together and then you start tracking

that hey let's say the market here was

in a correction right and I expected

Nvidia to have a deeper base it doesn't

that right off the bat you start

tracking you know base depth uh why is

it not moving much lower uh you know

compared to the markets why is it

starting to outperform it's you know the

primary leader in the market as well.

And I know that I can have a definitive

stop-loss right here and have very

minimal risk with very large position

sizing to hopefully, you know, not all

of them work out this way where they all

just, you know, place a trade and then

they never look back. They frustrate you

a little bit more. You know, often times

you're you're likely getting stopped out

more. Uh you're, you know, in terms of

number of trades that are winning or

losing, you'll likely have more losing

trades in the market than winning, but

your winners will do this instead. So

that's, you know, the the elements that

I'm looking at when I'm looking at, you

know, tight consolidation areas. RMV is

something I think, you know, everybody

should look at. If you're trading tight

price action, tight formations, it

allows you to define risk really, really

well. It's telling you that the stock is

now tightened up. The best thing is when

it tightens up and it has, you know, uh,

dry up in volume where Nvidia didn't

have, you know, that big of a dry up. It

was just that one day where it moved

down and the volume was low. But if it

had this was a shallower dry up, you I

would have even more conviction. Um,

couple of more examples like this come

to mind. You know, Tesla has done this

many many times where it goes sideways,

sideways, sideways. Roku uh, you know,

before couple years uh, earlier right

around that 100 level. it just

consolidated with tightness and then it

just blew that level and never looked

back uh for a couple of months as well.

So a lot of this happens um in the

markets again and again but you want to

look at different confluences

uh of you know is it outperforming is it

uh part of a leadership group is the RMV

near that zero confirming you know

databased tightness that you take all

those and then you make a trade uh on

the stock. Perfect. Yeah. And even

though volume wasn't super below the

average, it was declining considerably

since this move up. And this is just

super tight price action, you know,

within 2 3%. And RMV, again, we've done

we've done webinars completely on this

indicator. You can search that um if

you'd like, but when this goes to zero,

it's showing that price is tight just

like this. What what do we see at the

right hand side here? Again, tight price

action when we've got this really tight

range here. Tight price action when

we've got this tight range here. So,

it's showing that subtle tight areas

that market wizards look for, but newer

traders still haven't quite trained

their eye for. So, it's just a helpful

indicator to identify objective relative

tightness. All right, so we've talked a

lot about consolidation pivots and

ranges and and and buying them, but how

do we actually trade ranges? And I

wanted to go through kind of four

different frameworks that you can use to

trade those ranges/tight areas. So

something like this, something like

here, something like here where you've

got a clear range for at least two,

three, ideally four or five days, just

like this. So think about when I show

this, think about placing that range up

the right hand side of a base. So this

is what we're talking about when we're

talking about trading a range. So let's

get into it. first and and we'll go

through in detail each of these. You can

accumulate versus lows where you're kind

of buying versus the low of that range.

And again, this could be like a daily

chart uh where it shows this this

happens over the course of many days

where each time it's pulling into the

same overall level, gets supported, it's

being accumulated. You can buy versus

that low, set your stop loss right under

those lows. Uh so, you know, if it

violates that um you know, over time on

a closing basis, you're out with a small

loss. uh but you've got a great cost

basis. If it does break out of that

range, next we've got buying tightness,

anticipation as it looks to be breaking

out of that range and sets up a higher

low, then you could enter saying your

stop right under that higher low or even

the low of that range. That would be a

great way to again get a really good

cost basis with a very tight stop. The

third way is kind of my favorite, an

undercut rally where there's a mature

range of a few days. Then we get maybe a

gap down in the market or just a big

shakeout below below that range and we

rally back through that level. It's kind

of like that key level reclaim but on a

much smaller time frame and you can

enter versus as we reclaim that level

and even add on as we actually break out

through that range. Then lastly, we've

got the standard range breakout. This is

probably what you guys are most familiar

with uh where just we break out through

key highs and we enter here saying our

stop at the higher low or the low of the

range. And you can even add at the next

you know slight higher low and re-break

out confirming the breakout of the

range. So those are at very high level

are uh the the four ways to u trade a

range. So again this is um this is how

you accumulate versus lows where the

stock has pushed up off the low of a

base. It's formed one 2 3 four or five

days of tightness and it keeps

respecting a key level. And this could

be you know a whole number. Ry I know

you want to talk about that a little

bit. Um, this could be right above a

moving average as well. There's often

confluence there. But the key thing is

that this range keeps respecting a key

level in the market and that is the

bottom of the the range and you can

enter as it keeps confirming up off that

level off that level setting your stop

and buying as close to that level as

possible. So, if you're right, no harm

done. You're you're down very very

minimal amount. And if you're if you're

right and we break out from that range,

you've got a really good cost basis uh

managing risk versus that that level

right here and you're off to the races

if we keep moving higher. Uh Rod, do you

want to talk about kind of how you buy

because I know you like to buy this way

versus level quite a bit?

Yeah, I I pick a level. I mean I the way

I look at the markets is I if I if I'm

looking at Reddit for example which was

a trade last year or ALAB I pick you

know if if it's a clear level on the

charts let's say 60 on Reddit right or

when it's coming in it's respecting you

know the 55 area quite a bit so that

makes it easy for me to track if we say

this is you know 55 and this is 60 um

and the stock on the down days in the

market is continuously, you know,

holding this 55 level, it allows me to

accumulate that stock, you know, within

that 1 to 3% range. If it's away from

that 55, I can continue to, you know,

buy it here, rallies, comes back in, buy

it again, right? But if it violates that

level in, you know, that 55 level, then

I'll be out while keeping my risk in

that 1 to 3% range. Now, why would I buy

a stock that is pulling back and not

breaking out? That's a common question.

So as a base builds out, what happens is

if a let's say the market itself is

pulling in quite a bit, but the stock

continues to respect the level, which

let's say is 55 in this case, that's

relative strength versus a particular

level that I'm interested in. And as

long as I can operate within that 1 to

3% or 3 to 4% uh stop-loss range or

risk, then I can, you know, continue to

accumulate the stock. uh and what what I

call that is relative strength versus a

level. What happens is the relative

strength line will continue to rise to

the upside while the stock continues to

respect that 55 hypothetical level that

we're speaking of and the market's

pulling back in. So the RS line is

rising. The stock wants to outperform

the markets. there is market pressure

that continues to you know uh push it

back right into that level and it

continues to respect and hold that level

and not break it. When all those

elements combined, you know, uh take

take place, uh what happens is, you

know, you could define your risk really,

really well. Eventually, what happens is

that topside pivot, which is let's say

at 60 becomes your secondary or your

third or your final buy point, right?

And when the market pressure lifts uh

and the market's fine, the relative

strength line will also go up. And what

you would ideally want the stock to do

is also rip to the upside while breaking

your secondary or your tertiary uh entry

area on the top side. So I hope that

makes sense. You know, I I love doing

this. When you track bases and your

bigger bases on the daily charts or the

weekly charts, it's the same thing.

You'll see the structure, you know,

structure of a base will always tend to

respect some sort of whole number in the

markets be a 30, 40, 50. And that could

be a really easy way for, you know,

Nvidia is holding 100 or uh Google is

holding that or uh CH, you know, when it

was in that uptrend held that 30 area

for about uh you know, $18. It held

$17.50 throughout its whole base. that

allowed you to, you know, track the

stock really easily. But most

importantly define your risk and also

your stop loss. That's I think the the

bigger, you know, objective here is if I

can get away with a risk of 1 to 3% or 3

to 4% in on any setup, I'm in the

driver's seat and I can dictate the

action because I can dictate I know how

how much I'm going to lose if this were

to come back in and fail on me. Yep.

Perfect. The next way is kind of a step

up. So here you've you've been maybe

accumulating versus lows and like Ry

said, you can combine different ways to

trade a range to build out your

position. This might be you you've

recognized that the range is pretty

mature. It looks ready to break out. It

it does one last pullback, then pushes

higher towards that base. You can

anticipate that breakout and enter

setting your stop at the higher low. So

here you would set your stop uh with

this one, you'd set your stop at the low

of the range as you accumulate here.

here. You're setting your stop pretty

tightly at that higher low, anticipating

the breakout. And this could be kind of

your second buy after maybe you've been

accumulating your lows. Um, then the

third one is a little bit different.

We've been forming a range here and then

we get a shakeout below the clear low

that we've we've been accumulating

against maybe your stopped out. But this

shakeout provides an opportunity if we

quickly reclaim this range low to enter

while managing your stop at this key low

here as we reclaim. And this might

happen at an oops reversal which is

something we'll talk about later. Uh but

basically you've got a clearly defined

range right here. We get a shakeout

lower and then a reclaim of that range

low. You enter there and then you can

even enter again at the true range

breakout um you know as we rebreak out

and reconfirm. But this is kind of my

favorite personally where we've got a

range and it stops everybody out and

then that often leads to rapid movement

to the upside if we rec reclaim that

range low and you can set your stop

really uh tightly at that key low where

it reversed up from as it reclaimed that

level. Lastly, uh this one of the one of

the hardest things if you just go back

to to do is let's say you know you're

you're trading versus this level and you

accumulate, you accumulate, you get

stopped out right here, right? That's

what we spoke about in in the previous

slide. And the fact that you get stopped

out, it becomes infinitely hard to buy

it back right here. It's the most

uncomfortable thing that you could

possibly do because the stock that you

were watching, voided your thesis and

said that, you know, now wasn't the

right time. And it's, you know, buying

it back right here is one of the hardest

things. And it mostly comes with

experience, a lot of experience and a

lot of seeing this situation, right?

Something made the stock really, really

special in this range right here, right?

and the fact that it undercut and took

out a bunch of stops but then reclaimed

it uh you know whatever that was special

about it uh is is likely still special

if it reclaims that area once again.

It's one of the hardest things to get

you know uh around it. It's it's tough,

but watch for these situations, right?

When you get stopped out of a trade,

continue to track it. And if it starts

working thereafter, it may just be that

you were a little early to whatever, you

know, thought whatever you thought that

made that name super special. It's still

special when it reclaims that level,

right? It's just that it took you out

and it you you get a little bit sour or

you you start to, you know, move on to

the next stock or you stop paying

attention. And many times, you know, me

personally as well, I miss a lot of

really good-looking stocks where I had

the right idea, I had the right, you

know, uh I was looking at the right

stock, but what happened was I got

stopped out of it and now I don't want

to buy it back, right? Um, so that's

something you have to keep in mind is,

you know, whatever made it special over

here and when you were tracking it,

there's nothing that's changed other

than that, you know, it stopped you out

and now you have to, you know, figure

out a way to buy it back. So, yep. And

then the last way is just the standard

range breakout, which is kind of more

what we've been talking about where

we've been forming a range for a few

days. You've got a clear buy point.

Maybe this is the high of a day, high of

the previous day. Maybe this is an

inside day right here. We break out

through that high, enter right there.

Manage risk at the low of the day or the

low of the prior day, the low of the

range. And then you can even add if it

does another higher low. This is kind of

the more standard way. And I think this

one and then this one are my favorite is

the undercut by here. And then you can

even add as it breaks out through the

true breakout. But this is just kind of

conceptually what we're talking about

when we're talking about consolidation

pivots and range breakouts. Um, also

just just to kind of lay it out there,

this is where these range breakouts can

happen. You can do up the right hand

side of the base, you can have a range

after the breakout, and you can also do

it as a pulls back into a base. So, this

is there's many different places ranges

can form. Uh, but they're constructive

as they do. And these concepts right

here allow you to trade them while

managing risk at clear levels that we

talked about. the low the range the low

the higher low the the low as it breaks

lower as it reconfirms up and at the

higher low of the day before. So that's

kind of what I want to talk about here

with the range breakout. All right,

getting into the next entry tactic.

We've got a key pullback. And just like

the key reclaim, this can be either a

moving average um you know, it could be

an anchored VWAP um off the base high as

well or it could be, you know, a prior

consolidation pivot like like in this

example where we've got a consolidation

pivot right here and we pull back into

that area. So, there's kind of a few

different ways to trade versus a level.

And right, you kind of talked about this

um as you talked about trading the

range, but you know, as a stock pulls

in, this is just a a graphic

representing that a stock's pulling into

a key level that the market is aware of.

Maybe that's the 50 SMA, maybe that's an

anchored VWAP, maybe that's the 55 area.

You know, you could start accumulating

as we get close to that level. You're

expecting it to respect it. You're

managing risk right at these lows right

here or just below that key level. Maybe

undercuts it a little bit, but then

reclaims it and starts showing respect.

This is where you can start entering

versus that level. So, uh, think of this

as the 50 SMA here. We pull into the 50

SMA. We bounce off it once. We undercut

it. People think it's going to break

through, but then the psychology flips

as we reclaim that level. This would be

the first potential entry. Managing risk

at this low right here. We reclaim it,

pull back into the 50 SMA, show respect

for it again, reclaim higher, form a

higher low. You could enter right here

and add to your position and then

re-enter as it breaks through the range

off that level. So you'll see this quite

a bit against the 50 SMA, against the 21

EMA, against another key level against a

base pivot. You'll see this pattern

quite a bit where we respect it once,

undercut it, reclaim it, pull back into

it, and then rally from it. So this is

something that you can expect going

forward against a key level and a good

framework to think about buying versus

that level. We're not buying blindly as

a stock is pulling in and we want to

this to be a drift lower versus a sharp

drop. We're buying as it shows respect

for that level and rallies off of it.

That's what's really key here. And we

want to manage risk against these higher

lows and the key low that we bought

from. Uh Ry, anything you want to add

about uh trading versus a key level? Um

and kind of the framework that you use.

No, I see a lot of questions in the chat

on how many do days do I wait? Two,

three, one week, how, you know, what

time frame are we talking about here? I

think the the primary focus uh should be

to think of what makes this a good entry

and where you can place your stop loss.

Is it one day? Is it 3day? Is it do you

know when it's going to break out? How

do you know when it's going to break

out? All of those are unknowns and they

depend on the pattern that you're

tracking and what you're looking at. I

would just focus more with the the

visuals that we have more on the

framework of how things are happening

and how they eventually lead to a

breakout. Uh this is not about you know

you I track something it undercuts a

level I wait uh 45 seconds and 2 minutes

later I got to buy it back. There's that

that's not what we're trying to achieve

uh here. So think of you know if a stock

has undercut a level and you're watching

it then it reclaims it and then it forms

a tight formation how do I buy it back?

So more from a framework analytic

perspective and not do I wait you know 2

hours 3 hours 10 days 5 days or 1 week.

Um I think that what we're trying to you

know we can't give absolutes because

every stock is really different in how

it trades and the volatility of every

stock is different. It's more the

framework that we're after. Exactly. All

right. So, here's uh again that graphic

of it being a moving average. So, you

can think again this being the moving

average. As it pulls in, that's where

you're starting to

accumulate. And then here, this is the

pull in. You're trying to accumulate

here as the stock respects it, starts

moving off of that moving average. Your

stop loss is right below that key low or

just below the moving average. And this

is again up the right hand side of a

base. Here are some examples. This is

Nvidia from last year. This really good

textbook base. What I love about this is

it shows a characteristic that I've

really picked on recently studying

different winners. Is when a stock is in

a larger base, often it doesn't show any

respect for the moving averages, the 50

SMA, 21 EMA, but as it's getting ready

to break out and tightening from left to

right, it starts respecting those moving

averages. The 50 SMA here, the 50 SMA

again here, reclaims the 21 EMA here.

So, when you start to see a stock

respect the 50 SMA up the right hand

side of a base as it's forming a higher

low versus the base low, that's when you

really want to start paying attention

and look to accumulate the stock. And

here again, you could buy versus the 50

SMA again pulling back in. You could buy

it doesn't even pull in because it's so

it's it's showing strength here and

naturally the market was pulling in and

it was showing RS very subtle RS during

this period. Reconfirms off of that

level. That's how you kind of uh want to

do this. do this over time or as the

stock shows respect and continues

pulling in and respecting that level.

Another example here is we've got Apple

loven again forms the base low here

tries to break out pulls back into the

50 SMA. This is kind of an example of a

one-day pull back to the 50 SMA where it

respects it have your stop at that low.

If it's violated it's going to break

below the 50 SMA. It forms a tight range

and then re-breaks out. Uh, and that's

kind of uh the ideal situation where you

buy a little bit early versus a level

and then you're able to participate in

the breakout uh after it reconfirms off

of that level. One more example here is

we've got AMD. This is off the lows of a

base where we formed this kind of

gradual bottoming process. We push off

the lows, pull back in on a low volume

here against the 21 EMA. be buying

versus that level and maybe add as it

reconfirms off of that level here

through this this high right here and

then you participate in the trend way

before the base pivot. If you're waiting

for this base pivot, you're asking to be

shaken out because if you think about it

and this goes back to a tight tight and

logical stop. If you're buying on this

day right here, where are you putting

your risk? You're above you're way above

all the moving averages. There hasn't

really been much of a pause up the right

hand side. there's no real logical

technical spot to clearly say the base

breakout failed. Uh so, you know, it's

much better buying versus support here

where if it breaks this key moving

average, you know, quickly that your

entry tactic has failed versus buying up

here when a natural pullback is, you

know, expected almost and we actually

get that back into the 10 EMA. And this

would be another moving average

pullback. But this buy is much better

than buying this base pivot because

there's a tight and logical spot to

manage risk versus the moving average

versus this low of the day. And here

again, this key level would be where

you're putting your stop loss as it

pulls back into the 21 EMA. And then as

we break above that level, you can move

your stop up and and kind of stagger it

versus the 10 EMA. And we'll talk about

stop-loss management in the next

webinar. Um, so that's kind of the

moving average versus uh the pullback to

the moving average, right? anything you

want to add about buying versus a moving

average?

No, I think this is a a really good

pattern.

Um, this is AMD, right? Yeah, it's AMD.

So, this area right here that formed,

you know, if if anything, a good

exercise would be where can I define my

risk tightly, right? and have a really

logical stop-loss where the pattern or

the setup that I'm tracking is

completely violated. Um, it could be,

you know, this area right here. Um, you

know, as a formed if it takes that

upside, which it didn't, right, and it

came down, it could be this area. But if

you're tracking, you're tracking that

below the moving averages. So, likely

not the best way. uh it's starting to

form one of the the setups that we sp uh

spoke about right here on the right side

which is the launchpad. the moving

averages are converging which means that

the stock has now been sideways for 50

days or more and has built out a really

nice base. It's a 1021 and the 50 coming

together, right?

Um and over here your stop loss is

really really clear that if this

violates that pattern and if you get

involved right here, you're still in

quite early and you're anticipating an

eventual base breakout, right? And if it

fails, it fails, you likely lose 2 to

3%. Whereas if you buy right here,

you're, you know, everybody in the

market these days with uh, you know, is

watching that base breakout. It's

almost, you know, a textbook thing to be

doing to fail that initial day to try

again and fail again cuz it's shaking

out those folks or or people that are

primarily buying here, but you're also

putting yourself in a really tough spot

like Richard said because this is a

normal pullback into a moving average

and then get support right away to

continue even higher. Right? So, you

want to figure out those spots where you

can minimize your risk, those tight

areas. I'm assuming RMV Richard right

here would have been you know closer to

zero. Um so you know that from a data

perspective this really tight. And then

the second piece of information here is

AMD is still outperforming the markets

as it consolidates sideways. So we're in

a relative strength phase. And so you

have those elements, you know, combining

with the fact that when it moves above

that level, you know, it should not come

back, you know, after this particular

day, it should not come back and violate

this level right here. And it didn't do

that. It rallied to the upside as well.

So, yep. Excellent. All right. The next

concept is the same, but versus a key

level versus uh a moving average. So

this is example with MSTR from uh pretty

recent days during its nice move. Uh

during this period obviously it's in a

strong relative strength phase and it

love to form these mini bases where it

would form a consolidation pivot, pull

back to it, reclaim off of it, pull back

to it, move up, form another tight

consolidation, pull back into it. So

these pullbacks are opportunities if you

miss the breakout and almost they're

better buy points because again you can

manage risk tighter versus that level as

it reconfirms up. And this one is really

good. You've got confluence at the 21

EMA as well as this key uh consolidation

pivot. It reconfirms up and is off to

the races. And you don't need uh too

much of a a move in this one to to make

quite a bit and perform well. So, this

is a great example of a key level

pullback uh to a consolidation pivot and

a nice confluence with the 21 EMA here

as well. This is Coinbase. So, we've got

a larger base here. We've got the launch

pad set up here. We push off the launch

pad, form this tight area. This forms

the key resistance level. We have a gap

up. And this is a little bit difficult.

Uh it's it's tougher to buy gap ups from

consolidation pivots. I like straight

breakthroughs uh through them quite a

bit. But even if you miss this gap up

and don't participate, it pulls back

nicely on a decline in volume right to

that prior level. You've got an upside

reversal. This would be the entry day

managing risk at that low of the day.

The next day it holds that level once

again. Another opportunity to enter

versus that level. And then we reconfirm

up, go tight, and then start trending

really nicely. So this pullback to the

consolidation pivot allows you to get in

often with tighter risk if you missed

the breakout from the consolidation

pivot. So, even if you miss this day and

you feel like it's going to take off

without you, keep watching the stock and

watch for that pullback into the key

level where you can manage risk right at

these lows and clearly define your risk

in in a pretty volatile name that has a

lot of potential very tightly versus

this level. Uh, Ry, anything you want to

add on on these two examples, either MSR

or or coin?

No, I I think you know each of these it

it's the same concept where you know if

uh a lot of uh traders when they you

know the stock is breaking out uh they

will enter on this particular day. But

the question that you have to repeatedly

ask yourself is can I define my risk

effectively? If you can define your risk

it's worth to you know it's worth

missing this particular stock even if it

does this after the fact. You know

that's fine. you're going to have, you

know, hundreds of trades that you

eventually miss in the markets where you

have the right idea and you haven't, you

know, participated in those. But what

you know, what hurts the most is when

you buy on this particular day, it has a

normal pullback. Whereas, if you were

patient enough for it to come back to

the pivot now, you could at least define

your risk, right? You could define your

risk within 1 to 3% of this that, hey,

this should not pull back, you know,

more. I'm gonna buy it versus this

consolidation pivot level. And if it

works out, it should turn and when it

turns, I can maybe add right across

here, which is another consolidation

pivot on this particular stock. Uh and

then it can continue higher. What

happens is traders do the opposite. They

will

um miss the fact you know they will buy

on this day. they will sell right here

and then when they see it you know go up

now they don't want to participate right

about here because you know it's all

psychology based right so you're buying

in the wrong place you can't define your

risk you get stopped out now it's hard

to buy back that cycle repeats itself

again again and again mostly because

your your your primary like your first

move is the wrong one because you can't

define risk effectively right and you

can't justify you buy, you know, right

near the high of the day here and you

sell right here, you're already putting

yourself in a really bad situation. And

when you do that, it the rest of it then

you feel like, oh uh uh you know, this

market participant is against me and

they are flushing me out and they are

doing this and that. I don't know who

they are, but nobody cares about um you

know, they're not looking at your

account, by the way. So uh it all it's

all you know becomes a psychological

thing where you think everything's you

know built to be against you because

your first step is not correct. Always

ask yourself if I can't define my risk.

I don't care how good the company is. It

could be the best company in the world.

I I you know as a swing momentum trader

risk is everything. If you define that,

you scale your position size to a matter

where you know if you miss four of the

10 leaders in the next run and you catch

one properly, you will outperform and do

really really well in the market. So

always ask yourself, can I define my

risk? If I can, I'm going to

participate. If I can't, then I'm not

going to uh and I'll wait for that next

train or ticket or bus or whichever

analogy that we spoke about earlier in

the webinar. Perfect. And then here's

the example with Tesla. I think you

talked about this uh prior. This had so

many good examples of pulls back to

ranges, tightening, re-breakout,

tightening, re-breakout. And the high

the example I just want to highlight is

this key level here, this swing high is

then respected and forms a low of this

range. And what I love here is this is a

tight range. This is about four 4% here.

And it not only respects this high here,

but it also is pulling into the 21 EMA.

So again, there's confluence. That's

something we want to really focus on

here. Confluence. And what happens right

before it breaks out from this range?

Let's zoom in here. Tight inside day. So

within this tight range, it gets even

tighter after an upside reversal off

that consolidation pivot. And you could

either buy this pullback to the moving

average and as well as the confluence of

the pivot or buy through the high of

this inside day. That's kind of more how

I would purchase this is I would see

this upside reversal showing respect for

where it should show respect to tight

inside day and then buy here expecting

it to break out of the range. It does

and it's off to the races. And it formed

a similar uh range right above here and

again uh shook out and then broke out.

And we we might even see that later on.

I think I have a chart there. But that's

kind of the key here is look for a

pullback to prior support and ideally

confluence between a key level as well

as a key moving average like the 21 EMA

or 50 SMA. Oh, sorry. Here we

go. There we go. All right. Next up,

we've got the oops reversal. This is

something you really want to focus on

here. This is something I learned from

JT at Ticker Monkey. Larry Williams

developed it uh for I think the futures

market. Um, and you know, it's really,

really useful to help you define your

risk very cleanly. And the oops reversal

focus here, right here, is when we have

a gap down below the prior days low and

we rally back through that low and that

low becomes the oops reversal pivot. So,

I just want to repeat that again. We

have a gap down below the prior days low

and then this is on a daily chart. we

rally back through that low and this is

the oops reversal pivot where is is

basically the buy point for this entry

tactic and when this happens um up the

right hand side of the base. So this is

a base think of this as about four to

five weeks here. Uh this is a daily

chart and then we have a gap down

ideally to a moving average where the

low is near a moving average or a

consolidation pivot. I'm showing that

confluence in this graphic here. we

rally up back through the low and then

we're off to the races and approach that

base pivot and breakout. This is a

really useful entry tactic up the right

hand side of a base or even after a base

breakout to position in a leader while

managing risk within, you know, 2 3% uh

versus the low of the day. Um I

basically 99% of the time place my stop

at the low of the day when I'm buying

oops reversals because if we reverse

back down and break that low, I know

that the oops reversal has failed. Uh so

this is a really good entry tactic and

we'll show a bunch of examples here uh

in in just a second. So here's Nvidia in

last year. We've got an overall base

pattern. It gets choppy. It breaks below

the 21 EMA. Breaks below the 50 SMA.

Here we've got a positive expectation

breaker after this very negative bar. It

holds. This looks to be the base low.

Then we rally up, pull back again. Uh a

very negative day. We expect a gap down.

We get it. But instead of really

breaking down, Nvidia changes course and

rallies through this low. So we get a

gap down versus the prior day's low and

rally back through it. That is the buy

point right here. And let me actually

even zoom in here just to show it really

clearly. We have a slight gap down here.

So you can manage risk really tightly

actually. And we immediately rally

through and really penetrate the prior

days bar. This is the best possible

situation where we have immediate

strength off the open, rally strongly

through that low and managing risk at

the stop, you're automatically up a

bunch of risk multiples if you manage

risk at this low of the day. So again,

thinking about the negative, if you you

buy this as it breaks through this and

we reverse down and break this low,

that's where you would exit with your

stop loss. but instead here you have an

early entry point up the right hand side

of a base and you have a immediate

profit here to weather any of the

pullbacks up the righthand side. So that

is a really good example of an oops

reversal. Uh here we've got TEM. This is

a recent leader as well. This got on our

radar because of the strong gap up on

large volume. We're up the right hand

side of the base, but there's not really

a clear entry point up here. There's

this little range, this inside day where

maybe you could have entered, but there

wasn't much of a tight pivot that

formed. But we get an opportunity on

this day where we're in a relative

strength phase. It's been on our radar

because of a strong gap on on volume.

And what do we get right here? Let's

zoom

in. And let's zoom in even a little bit

more. We get a gap down and strong rally

back through that low. And this is the

pivot. This is the buy point. Managing

risk at this low the day. And

immediately you're at a profit and it

closes right near highs. And then we

continue that strong trend we've been

in. So this is a way to enter a strong

trend when there's often overall market

weakness. Maybe we get a gap down in the

general market based on a jobs number or

whatever macro uh thing is in in vogue

during that time. And the strongest

stocks will be will show will will rally

immediately because the institutions are

still looking to accumulate stock and we

rally back through that low and

immediately you're at a profit and uh

join that trend. So this is a really

powerful setup and uh definitely

something to add to your arsenal to work

your way into the strongest stocks.

Here's an example. I saw somebody

wanting a recent example. This is SQQQ

back when the market was rallying into

the 200 SMA. So SQQ is of course the

triple inverse of the QQQ. And what do

we have when the market failed right at

the 200 SMA? So it's failing at a key

level. We get an oops reversal right at

that point as QQQ approached the 200 SMA

and failed right at that level. We get

an oops reversal enter through the prior

day's low after the gap down. Manage

risk at the low of the day. we get the

best case scenario where we actually

take out the prior days high as well and

immediately you're at multiple risk

multiples and can profit either that day

or on a quick swing during a volatile

market to profit from market weakness

after the market failed at the 200 SMA.

So, there's a way to kind of use it to

short or or go uh go against the market

as well. But a really easy way to manage

risk versus this low right here. This is

again would be where your stop is if you

enter at the low of the day. Uh this is

actually an intraday chart showing that

rally off the open. And I just want to

show kind of what that looks like. We

have the gap down. We have an opening

range breakout we'll talk about a little

bit earlier. This is the prior day's

low. This orange line here. So this is

the oop reversal pivot and stop to the

low of the day would have been 1.2%. So

you're managing risk very very tightly

entering here stop right here and it

just is off to the races and again

multiple um risk multiples right away

immediately takes off and you can even

move up your stop to break even very

quickly to manage your risk even

tighter. Uh so this is um a good example

of the oops reversal and what it looks

like on an intraday intraday time frame.

Here's an example of a downside oops

reversal. So, just to get uh advanced

for you guys, we've got the key level

being this gap up low. We have a break

down and start of a down cycle here. We

respect the the 21 EMA, bounce higher,

but then the overall market continues

and and rallies down. And what do we

have here? We get a downside oops

reversal. So, instead of gapping down

and rallying higher, we have a slight

gap up above the prior day's high and

reversal back down. So this would be a

way this would be a short setup short

entry tactic where we gap up managing

risk at the high of the day short the

stock here and participate to the

decline. And there's a lot of good

examples recently of uh this entry

tactic on this day as the as the KQ and

the market failed at the 200 SMA. This

one had a gap up breakdown faltered to

the downside and continue to uh move

down and and form base lows. So, this

would be a good way to manage your risk

very tightly versus the high of the day

versus if you're doing it to the upside

versus the low of the day. So, really

interesting entry tactic definitely

worth studying and you'll start seeing

these all over. Here's another oops

reversal here. Here's an oops reversal

before the gap up. You'll start to see

these all over as you uh kind of uh you

know look look more for these oops

reversals. Uh Ry, anything you want to

add on the oops reversal uh setup

personally based on you know stuff that

you've seen? Yeah. So the reversal setup

is essentially um a failed move in the

direction right and uh one of the things

is you know from failed moves it just

momentum goes uh twofold in the opposite

direction essentially. So learn to spot,

you know, especially when a oops

reversal is in correlation with a very

key area which could be prior

resistance, prior support or recent

consolidation with the undercut and then

you get expectation you know breakers

off of that. Um it becomes a really

powerful way for you know daily or less

to execute on that time frame. So a lot

of you you know when the market opens a

lot of traders look at prior days low as

that key area for for it to be reclaimed

and then you know a lot of market forces

join and you know create that momentum

to the upside so that the market can

rally um as well. So that QQQ example

was really a really nice example of that

where momentum was created to the upside

as soon as we undercut the prior you

know we reclaim the prior days

um uh level. So yeah not much else to to

add there. This is again within the

context you have to take everything

within the context of the trend uh the

theme um the setup and the edge that you

have on the charts. So what we're

speaking about today and I see some

confusion in the chat as well is like

this is not about day trading here. This

is about you know the first three

webinars that we did taking all of that

knowledge and we're now speaking about

how do you enter those particular names

or those setups using these entry

tactics. So you can't just pull up you

know a penny stock and just say this is

the best comp you know it has a oops

reversal and it's now the best setup

that I see. But you have to take all the

knowledge that we spoke about in the

first three webinars as well. Yeah. And

the key with this particular situation

is the QQQ was approaching a key level

that it was rejected from. And then this

is a a leverage way to go short at that

at that time is trading an oops reversal

on the SQQ as the QQQ is reversing back

down from its 200 SMA. So that's that's

why we'd even be focusing on this.

Again, like R said, we want to really

emphasize this. The tactics we're

talking about today are

always with within the context of a

larger setup and edges in the market.

This is just the last layer about how

you actually enter, place your stop,

manage risk, all of that. The entry

tactic is the last piece, the last step

after you've identified a pro promising

opportunity that allows you to actually

place your order with a clear pivot

point, sell stop, all of that. All

right, so let's go ahead and pause for a

few questions. So, drop any questions

right now in the chat that you have so

far. And we've got a special uh giveaway

here. You can earn uh win a signed copy

of the Trader Handbook once it's out.

And uh basically, in order to enter this

giveaway, I'm going to ask a question

right now. So, everybody be

ready. Let's see

what's uh you'll post the question. No,

I'm gonna ask it. I'm gonna ask him just

I'm just I'm setting it up, Ry. All

right. Are you guys ready?

All right. The question

is,

what is most important about setting a

stop-loss? What are the two things that

I said were most

important with regards to a stop-loss? I

said two things at the beginning and we

covered on multiple SL

slides. What defines a good

stop-loss? There we go, John. John won

it. There you go. Tight and logical. It

must be tight and logical. Exactly. So

tight remember means it's within a few

percent. Logical means a clear failure

of that level. Uh triggers basically a

failure of the entry tactic and setup.

Perfect. And I see a lot of other people

got it as well. Uh but John shoot me a

DM on Twitter and uh we'll we'll get you

hooked up with a Freton copy. And

everybody else, you can order yours

right here. Uh let me know in the chat.

Have you ordered your Traers handbook

just yet? I want to see if there's

anybody in here just yet. I see a lot of

people answering. So awesome. Ethan got

it. Nice, Braxton. Got it. Perfect. All

right. Thank you so much. Uh, all right.

Drop any questions you have so far based

on what we've covered in the chat here.

Uh, let's see if we can answer a few.

Let me get a sip of water

here. All

right. Let me see if you any see any

questions.

Right. Should the volume ex should the

volume exceed the average volume when uh

when you see a oops reversal? I think

it's not critical. Ideally, it does. Uh

but really, it's about the price

movement. It's going to happen pretty

fast in the morning. So, it doesn't

matter too much. Uh also, because it's a

early entry, we really want to see big

big volume on the breakout. uh earlier

than that it doesn't matter too much,

but you'll see a pretty the the fastest

oops reversals are the strongest, the

ones that just penetrate that prior

day's low versus the ones that kind of

hit it, stagnate, you know, there's not

much emphasis. We want to see immediate

demand and that's with a strong price

move. Yeah. Anything that's not a base

pivot in the markets, there's no volume

requirement for consolidation pivots.

You want the volume to be higher than

previous day. The time frame I'm

speaking to right now is daily. On the

weekly, when you see a base breakout,

you know, naturally the volume will be

higher on the weekly charts or for that

week because it's a significant level in

the markets. But folks that you know I

used to wait for volume to show up and

you know over the years it's been become

quite clear based on you know just

studying what I missed trades that I

took t trades that I didn't take um that

volume if price is confirming and is way

before the base pivot you can enter that

stock as long as you can define your

risk right and then volume becomes

important you want to see big volume at

base pivots you want to see big volume

you know it's If if you're taking a

consolidation pivot and the volume's

huge, that's a huge bonus. Basically,

it's a huge plus, but it's not, you

know, a requirement for you to enter.

Yep. I see a question from Gav. Um, how

do we read high volumes during tight

areas? Is that considered a negative? If

it's very tight, I would consider it a

negative, but it's not a positive. Uh,

so I guess that is a negative. Um, but

yeah, basically, you know, we're looking

for a dry up in price volatility as well

as volume during those tight areas.

That's what the best ones look like.

It's fine if there's one day of

increased volume, especially often if

there's an upside reversal within that

tight area that will have a little bit

higher volume as it stops out people and

then reclaims that range. But in

general, we're looking for a lower

volume than average or a decline in

volume versus prior sessions. That's

that's the most ideal

situation. Um, let's see here. Uh, you

can find the three previous webinar

recordings in the playlist that we

posted earlier or if you go on the

Trader Line channel, you can find that

playlist for yourself. But we'll we'll

post that uh later on Twitter as well.

Um let's

see. How much space do you get below

stop point? I do it pretty tight. You

know.1% below the stop, maybe even

tighter than that. Um if it if it takes

out my stop, you know, say levy. That's

just part of trading. Uh Ry, how much do

you usually give uh below, you know, the

technical level to place a stop?

for me. Three, three to

four%. Oh, I think I lost your audio.

Can you hear me now? Yeah, I can hear

you now. Cool.

All right, let's see

here. What MAS work for support

confirmation? Look in the past on the

stock and see what it respected prior.

Um, a lot of the growth stocks I trade

respect the 20 21 EMA during trends. So,

that's kind of what I like to use

primarily. And then the 50 SMA also

uh what's the indicator we talked about?

Um RMV, relative measured volatility. Uh

it's a deep view proprietary indicator.

We've got a webinar completely on that

on the DV channel. Um so you can check

that out if you like to learn more.

Definitely very useful and you can

screen by it as well which is

huge. All right, I think we can keep

moving here. We'll answer a few more

questions at the end.

So here I just want to mention that you

know prior to this point we've talked

about kind of entries before the base

breakout but you can use a lot of the

same tactics that we talked about

shortly after the base breakout and we

want to be entering as close to the base

breakout as possible because that's when

you know the the potential reward is

greatest. Uh but you could trade a

consolidation pivot breakout right right

after it breaks out from the base. We

saw this with Tesla. Then it moves up

higher, pulls back to 21 EMA or moving

average for the first time. That would

be another spot to to add to your

shares. If you'd like to trade around a

core position, you could sell a little

bit into strength here, buy it back

versus the moving average, add it on the

next kind of mini base breakout. So, a

lot of the tactics we're talking about,

we're using in this area right here, but

you can 100% use them later on the base.

But we want to emphasize the reward, the

potential reward is is more worth the

risk as close to the base pivot as

possible. And ideally, you're entering

up the right hand side of the base so

you can participate in the trend from

base to base. That's kind of how I like

to operate personally. Uh but yeah, here

here's Tesla. So here are the entries up

the right hand side of the larger base.

Then we get a consolidation pivot

breakout right above that base. We get a

nice breakout and then we have another

uh mini base right here against the 21

EMA and you know that leads to another

trend. So the best stocks will have

multiple add-on points where maybe you

enter, you know, on this breakout, sell

into strength of this key reversal day,

add those shares back on, you know, this

gap and go off the 21 EMA, EMA reclaim.

Uh so this is kind of how you can think

about trading around a core position and

add on entries after the true breakout.

Uh Ry, anything you want to add on on

this before we get into the gapper

gapper entries?

No, I I think that area of um you know

this one I I traded right here. Uh it

was again a really nice spot. Uh very

tight risk, right? The stock had clear,

you know, clear upside level. Uh and the

best part of this was that the volume

died down quite a bit and we were really

focused on this. Uh one other thing I

think if you zoom in a little bit was

the fact that it had one of the you know

things that we spoke about today was the

fact that this level this level right

there was cleared out completely right

flushed then reclaimed y and then it did

the consolidation or the pivot area

eventually so let's say I was

accumulating versus a level it did that

you the V formation underneath the level

reclaim that and once it reclaimed that

you got to buy it back and then add to

that position. So whatever made this

stock special right in this area right

this is a practical application of what

I said theoretically before you have to

you know get get back into it uh because

that led to this particular run uh again

uh this area is obviously better right

uh if you chased on this day uh up here

and then you got stopped out here now

you're really you know sour on this name

and you don't want to look at it when it

does another tight consolidation But

again, it's a really tight pivot, a

really clear entry area, and I'm I'm

sure the volume would have um died down

as well. And then this could have been

your secondary, not your primary um

entry area as well. So, the frameworks

that we spoke about, these are real life

applications of the arrows that we drew

that Richard went over, but these are

playing out as we speak. uh regardless

of what the name on the top left of the

chart is, the price and the volume will

play out according to the frameworks

that were presented. Perfect. Yeah. And

I I play I played it on the base pivot

reclaim right here. I entered uh and had

a nice move here. Um yeah, perfect.

Yeah, this is such a great stock to

study. And I saw somebody say, you know,

it went from really tight here to then

breaking down to the 21 EMA. This

overall is still within a few percent.

So even though this is ridiculously

tight, this overall is still a tight

range here. So that that's why it's

still playable on the breakout here. All

right. So next up, we're going to get

more into the setups for gappers. So

these are earnings gappers, catalyst

gappers, however you want to whatever

you want to call it. And the first the

first few we're going to talk about are

more to do with trading the day of the

gap up. And we talked in the previous

session about scans and screens um to

get gappers on your radar so you'd be

able to trade day one. We'll also talk a

lot about more of that uh in the routine

section. But this is the first entry

tactic to trade a gap up. This is pretty

classic. I'm sure many of you guys

already know this. The opening range

breakout. Basically, we've got an

initial move up or even down and then we

set a mini base. This is on maybe a

fivem minute time frame, a 15-inut time

frame or even a one three minute time

frame. This can happen pretty quick. We

set a mini base and then the buy point

is through the opening range high here

setting your stop either at the higher

low or at the low of the range depending

on how much risk this is and you know

the quality of the gap and the catalyst.

But this would be the entry point or

maybe even early at the rightand side.

And we'll show some real examples. This

is just kind of the framework to think

about. But basically what you want to

remember is we've got a big gap up on

earnings, a very strong catalyst that

looks promising. Um, and then we set an

opening range and then we break through

that range and begin trending up on that

day. So, here's an example with uh a

recent example with Octa. Uh, this is

one where uh we're here. We're on a

3minut time frame. So, each of these

bars is a three-minut time frame. We

have an initial bar that moves up. We

have and let me actually zoom in

here. We have an initial bar that moves

up. We have an inside bar. So, this is

setting the opening range. This high is

the opening range uh breakout. and buy

point was right through here. And notice

how after that it respects the anchored

VWAP pretty much the rest of the day.

This is a clear thing that you want to

look for on an earnings gapper that's

going to, you know, perform and and end

uh, you know, close close really nicely

is respect for the anchored VWAP

throughout the day. We close well off of

that and after an intraday base here, we

rally into the close and this opening

range breakout. Uh, you were never

tested. This cost was never tested

again. And that's what the best ones do.

We want the stock to just go from the

opening range breakout. Uh so that is an

example there. Let me go to the next

one. Here is Tesla back in um I believe

this was on the election gap here. So

here we have an aggressive opening range

breakout through uh the 5m minute high

here. So this would be an entry. You do

get tested a little bit here but it

respects that area and often you'll see

this be respected later. But we set up

and form a bigger opening range here in

this area. It's almost a mini base here.

And this would be a breakout buy point

uh where you could manage risk versus

this higher low less than 1%. And note

how we respect the anchor VWAP and just

trend above it the rest of the day and

just you know steady accumulation.

That's what we're looking for on these

gap ups. Uh and the most successful ones

respect the anchored VWAP as well as

just trend higher uh and grind higher

the entire day after the opening range

breakout. Here if we go next we've got

uh Coinbase. This was based on the

catalyst of uh the election. Uh this is

an initial move up sets the opening

range. This would be the opening range

breakout right here uh to the low uh to

the higher low here would be about 3 and

a half%. You also line that also lines

up with the anchored VWAP. But you've

got a more of an aggressive entry here

uh at the low of the day. Manage your

risk at 2 and a half%. So again, these

are very aggressive entries for day one.

I really want to stress that you do not

need to participate on day one to profit

from trends. This is more for aggressive

traders, advanced traders who want to

get the best cost bases possible and

really focus on performance. This is

more for stage three plus traders, stage

one and two um you know can focus on

entry points after the true breakout

based on daily patterns. This is for

aggressive entries on day one. Here is

SMCI uh when they pre-announce uh their

their earnings. We've got a one minute

opening range breakout, an early entry

on the anchored VWAP reclaim, and then

also through this high would be the

opening range breakout. It trends the

rest of the day beautifully and just

took off here, trended above the moving

averages as well as the anchor VWAP the

rest of the day. Uh then here we've gots

from last year. We had the catalyst

being a new announcement. We've got

initial move up forms this mini base,

this opening range. This is the opening

range high. This would be the breakout

here, managing risk at the anchor VWAP

as well as these swing lows. And you've

got an early entry from this tight area

here. This would basically be an

undercut and rally range breakout that

we talked about here on this five-minute

time frame. This would be the early

entry and this would be the opening

range entry and it just took off here. I

think gained 20% throughout the day.

You've got an intraday base here which

also be playable. But again, these are

for much more experienced traders to

play these intraday type setups. And

we're only looking at intraday time

frames because there's something

significant happen on the daily, the big

gap up with the catalyst. We're not just

looking at this on any old day. We're

looking on the specific days where

there's a lot of potential for a big

momentum

move. Uh here is the next day one type

entry or Ry, do you want to add anything

on opening range before we gone? Yeah.

No, no, I I think you covered it well.

Uh this is the next possible intraday

base. Maybe we've had an opening range

breakout back here, but basically we're

looking for a substantial basing pattern

during the day. Uh still close to the

open because we still want the stock to

have a lot of potential. Uh but we're

basically looking for intraday base to

trade uh with a breakout. You'd set your

stop at the higher low. Um after it

breaks through that base pivot or an

early entry of the right hand side. Uh

this is uh TEM on the day of the

catalyst. I think um I don't know. I I

think it was just Nancy Pelosi buying

it, but you know that was a catalyst

that was working. Um and this is TEM. It

moves higher. Doesn't really set an

opening range early, but it sends this

nice intraday base and this clear tight

area. Again, this happens on all time

frames. these tight areas on low volume

and this would be the ideal buy point

range breakout risk to this higher low

is less than 1% and you rallied multiple

multiple risk multiples uh into the

close and also this base breakout would

also be viable managing risk versus this

higher low. So wherever we're buying

we're looking at the higher low and

ideally the low of the day to manage

risk against but we always want to keep

our risk relatively tight here.

All right, here's another example with

ELF. Uh, this during its really nice

move um in uh 2022 through through 2023

had multiple gap ups and and great

examples and great great examples to

study. Uh this is one during I think

it's May gap up where we had a really

strong move off the open and then it

just went really quiet and tight until

this range breakout here. It breaks out

uh stops to the higher low right here

would have been less than 1% risk. It

does retest it a few times, but never

really you don't really experience any

heat and really draw down at all. And

into the close, you're up about three R

uh into the close. So, this is a great

way to jump on a gapper and uh

participate in a strong trend after it's

shown really nice demand uh throughout

the day. Uh here's another example,

Bloom, where we had a decline off the

open. So, this happens sometimes

depending on the situation. And you can

see a pullback and then we tighten

overall. We basically form an intraday

base and you could enter from this tight

area. Again, we've got a tight area on

low volume. This happens on all time

frames as I mentioned and buying through

this pivot which is also an anchored

VWAP reclaim. Uh so the confluence

there, you could risk to the higher low

about

2.75%. So very low risk uh to enter a

name that went up multiple risk

multiples from that point on day one. Um

bonus, we've got the anchored VWAP

reclaim. This is another way to trade a

day one setup. Um, now I I mentioned it

a few times in here. Anchored VWAP

reclaim. So what actually is that?

Anchored VWAP is basically the anchored

volume weighted average price. A lot of

institutions use it for execution,

especially in a stock that they want to

build a position in. So when a

game-changing catalyst happens, like an

earning surprise, revenue surprise,

guidance increase. Basically,

institutions go out and say to their

traders, hey, buy me more shares. And

often execution is based on the volume

weighted average price for that day. and

they're judged how good their execution

is based on how close they buy versus

this volume weighted average price. So,

this level is a key level of

significance throughout the day. And

when we first form uh a range here and

reclaim that VWOP, that's often a really

good entry point a little bit earlier

than the opening range high here. And

throughout the day, you might have

retests of the anchored VWAP where it

gets respected, undercuts, and reclaims

at that level. But this is an example of

kind of the uh opening range base here.

The ankerv web reclaim giving you a

really nice entry in unity software uh

which is a recent example from this

year. Uh then next we've got uh QBTS uh

another recent one. You had multiple

anchor VWOP uh tests here uh undercuts

and rallies. But the one I want to focus

on here is we have an initial move

higher a pullback an undercut of the

anchor VWAP. anybody using that as their

stop was shaken out. But then it pulled

back to this level here and also

reclaimed the anchor VWAP and risk to

this higher low here was only about

2.2%. And it rallied nicely from that

point throughout the rest of the day. So

often undercuts and rallies of anchored

VWAP, the first one or the second one is

often a spot where you can manage risk

pretty tightly if you're looking to

enter on day one of a move. Uh here's

another example of uh I forget what

stock this is. This might be this might

be octa, I believe. But regardless,

you've got a breakout here. Nice move.

And then look how it respects the anchor

VWAP as it builds this base out. You get

multiple undercuts and rallies. And I

also highlight an intraday base breakout

here. This is from um a breakdown I did

for the trade lab. Um and basically

highlighting different entries that you

could use on day one. And all these

undercuts and rallies of anchor views

allow you to manage risk versus the

recent higher low right here. Uh, so

you'd enter here, set your stop right at

this point right

here. All right, so that went a little

little fast. Um, any questions

specifically about anchor VWAP? Let's

see. What's the time frame for anchor

VWAP? You basically watch it on any time

frame, but anchor it to the gap up day

candle. Uh, let's see here. Uh, are you

moving from a 1 minute to a three

minute? So, when a stock first opens,

um, I I I want to enter on a fivem

minute. That's kind of the time frame I

want to enter. But when it first opens,

I'll watch it on a one minute and then

once once we get enough time frame, I'll

watch on a fivem minute

chart. All

right. All right.

Cool. Where do you put the second VW

anchor view? I only put uh the VWAP on

the opening day here, the opening bar

here. And yeah, I prefer five minute,

but I'm only watching intraday time

frames because this is a key day to

watch it. I want to be really clear.

I've said this before, but I really want

to be clear. We're only watching this

for a potential day one entry because

there's a huge catalyst that's changing

how the stock is completely is changing

the character of the stock. And these

day one entries are different than the

ones we'll talk about later, volume,

support, range breakouts, because this

is only if you want to get involved on

day one, which is not necessary if you

want to uh you participate in a trend

after the day one entry. But this is for

aggressive advanced traders. So most

stage two traders should not be looking

at this. you should be sticking to daily

charts and looking for uh entries like

we'll talk about uh with Ry in just a

second. Volume support range breakouts

on a daily chart after the gap up. Uh so

with that, Ry, I'll hand it over to you

to cover volume

support. Yeah, volume support is one of

the entry tactics after a stock shows

the highest volume edge that we spoke

about. So essentially let's say you know

the first day the you know the stock is

now shown the highest volume ever or the

highest volume since IPO uh and we have

you know this particular day being the

day that there's a catalyst earnings

news something of an event um in the

markets. Essentially what happens is on

day two and after uh you can form a

really good expectation of where the

stock will be supported based on the

volume distribution of the day that the

stock gapped up on. It's a very basic

principle that's often overlooked. It's

just pure price and volume, supply and

demand, and how they balance each other

out and how they how it creates a really

nice zone for you to operate in with

very again minimal risk. Right? So if we

go to the next slide, I I think getting

into an example will uh make this a lot

clearer. So charts, let's say, you know,

Yeah, you can zoom in on the first one,

please. Yeah, these are daily charts.

Yeah. So, let's say, you know, we're

looking at a chart. Regardless of of uh

what company or what it is, I I I kind

of cropped that out on purpose. What I

want to look at is what happens and what

what I'm trying to describe as volume

support. So, this company gapped up on

this particular day. It saw massive

volume on that particular day. And now,

when I zoomed in, let's say on the

15-minute chart, uh or the 10-minute,

you know, whatever allows you to see

volume. support or where the stock is

being supported as it comes in or where

the volume distribution was on that day.

Um that becomes an area of interest on

the daily frame or even higher. So in

this case the stock had the highest

volume in a year. It tried to rally,

didn't work, came back in and then it

was supported when you know at this zone

that I defined was on a 10 and 15 minute

chart that if it were to get to this

level there the the supply and demand

characteristics which is price and

volume and what makes sense you know it

it should be supported here if it's a

good stock from a technical uh you know

analysis perspective. So that you know

the stock does get supported but most

importantly if I'm operating in this

zone and I want to accumulate it I know

exactly where the you know where I

should get out. I see this as an

inflection point where the stock you

know secondary buyers or buyers that

were waiting or folks that purchased

this and institutions that supported the

stock to rally on that particular day.

will come back and buy more of that

stock cuz that seems to be a level that

they were interested in on the day the

catalyst took place. Right? So the stock

then you know this rallies and and works

out quite well. But what's important

here is to understand how we can come up

with this you know uh support level

based on the day that the catalyst uh

happened. Um so if we go to the second

one Richard uh I'll cover that. So this

is another example the same, you know,

and it's another company that gapped up,

had an earnings catalyst, had the

highest volume in a year. Um, if you

guess it, that would be amazing.

But yeah, so it it came in and if you

looked at, you know, the distribution of

where it was supported intraday on that

day and where the volume support came in

or where secondary buyers came into that

area on the day the catalyst took place

on a 10 or 15 minute chart, you would

draw this particular zone out. And this

stock was constantly supported as it

came back into these areas uh and it

would bounce off of it, right? Uh, and

the the the reason I like looking at

this, it's it's the purest form of

technical analysis. It's one of the

first things that I learned. If

something is moving up on volume and

comes back in and is supported again,

right where the volume showed up, that's

secondary confirmation that whoever

bought it on this particular day is

interested in coming back and buying

even more as it comes back into that

area. Right? And that's essentially what

volume support is.

Um, someone said BB AI, but that's the

the next slide. I will be using that.

This one is CH. This was around the 30

spot on CH. Um, Richard, let's go to the

next slide where we get into a real

example of a uh a 15minute chart and how

to draw volume support. I think uh I

bought this day through the high. Uh you

you beat me. You got better costs than I

did because you accumulated versus

versus that spot right there. A level.

Yeah. Perfect.

All right, here we go. So this this is

uh how you look. So this is zoomed in on

an intraday chart. So this stock again,

it doesn't matter what company it is.

Focus on the concept. So you could you

can apply it to any company. Uh and you

don't have to ask me ever again, right?

Uh so this stock rallied up and you know

it came back in but secondary volume

came in and it was supported here and

rallied you know after hours. It tried

to gap up in the morning. This is

pre-market. hit the yellow uh comes back

in the stock is then again supported

right here in pre-market you know holds

this level it's the same level where

when it came in it could have gone even

lower right from a price perspective but

secondary volume came in to support it

to the upside right so what I did was I

simply you know I think this is a level

of interest this is where I can define

my risk really really tightly and I can

know that if a stock were to break this

particular area or zone phone, I should

be out of it because that negates, you

know, the price support that I defined

over here. The why did I why why am I

looking at you know support here and

here? The first step to all of this is

this was the highest volume in over a

year on this particular name on the

daily chart. So that's your edge. That's

the visual the visual edge that I saw

and what makes this a gapper setup. What

we're speaking of right now is the

volume support. It's an entry tactic. If

you don't have an edge to begin with and

you just go around looking for oops

reversals, you're going to lose yourself

and drive yourself nuts because oops

reversals and volume supports will be on

every single chart that you can possibly

pull up in the markets. And there's

about 12,000 tickers in the United

States. So the first step is you you

know this volume was significant on the

daily time frame. This was the highest

volume and it showed the HV edge. Once I

had the edge, you know, I can now I'm on

day two and on day two of this

particular, you know, it didn't really

do anything. It consolidated sideways. A

setup started to form, right? Day two or

later on on a gapper. And then third is

how do I enter this name so that I can

define my risk really, really well. How

quickly can I know that what I'm doing

it, you know, is going to result in a

losing trade. And how can I define my

stop loss really clearly so that I have

a thesis to either enter this name with

tight stop-loss or have a good upside

for this. So I enter this name pre you

know right around the pre-market area

accumulating on the open accumulated

more the stock then reacted to this

level and moved up. Now is every single

one going to do this right away? No. CH

took about a week and a half to two

weeks to play out versus volume support.

This particular stock did took two days

to play out. So there a lot of questions

that I get and many questions that I saw

in the chat throughout is, you know, how

long do I have to wait? That's never a

known when it comes to entry tactics.

What you're trying to do is dictate

where can I manage my risk the best so

that when I am wrong, I lose very

little. But when I am right, you know,

this stock ripped up 43% same day and I

sold it right into you know it was too

good to be true. So you just sell it and

move on. Uh but you know

edge then and you know uh a setup forms

where you know you're below the prior

day's high. You're now consolidating and

then you have an entry tactic where you

can define your risk really really well.

You enter that name. But if you don't

have the first step, a lot of traders

forget if you don't have this volume

being significant enough, none of the

rest of it matters and it would have

never been on my radar to begin with. So

that was the example that I had.

Richard, I don't know if any questions.

There's a question if you use there's

the indicator fixed range volume to help

identify this, but you're more just

looking at where the big volume comes

in. So maybe maybe talk about that. So

So yeah, there there's a scientific uh I

would say way to do it where you place

like a volume profile and it will give

you, you know, this bar is big, this bar

is small and that way to do it. I I

don't do that. I just look I like to

look at a chart and dictate, you know,

this is where price was supported.

Volume was good. You know, there's big

bars still coming in. There's a reason

that price was supported here. There's a

reason when it came in here, it was

still supported. There's a reason you

know, uh, post market when it came in,

it was still supported. There's a reason

pre-market there came in, it was still

supported. Well, if it supported this

many times, there's someone sitting

there and saying, "Give me more. Give me

more. Give me more." Especially on this

bar, there's no reason for it to stop

here. But, it did and it was supported

into the close, right? So, that's why it

makes it a significant level for me.

Yes. Can I be more scientific and say

that, oh, the highest bar was here on

that profile thing? I just haven't found

that to be a better tool than my eyes.

Uh when it comes to a 10 or 15 minute

chart, that's why I use uh I don't use

it.

Uh from Mojo says, "Our stops expect to

be hit below this level? Level seems

obvious, but with tight stops attempt is

reasonable." I think uh that's almost

the point. The level is obvious and we

actually get an undercut and rally of

that level on that day that you bought

uh you know into that level and

rebounding up from it. Um so Ry, I don't

know if you want to answer that. Uh,

additionally, yeah. So, so what I'm

trying to say is, you know, we're not

trying to nail the absolute low here.

What's what what I'm trying to say is I

can define my risk really, really well,

and I have a zone I can operate in. And

if I can operate in this zone, and if it

breaks this lower, you know, level and

goes to the downside, I know where I'm

getting out at. So, could have, it could

have done this, you know, the lower wick

could have been that low. Uh, you know,

that it would have been that low. maybe

I would have would have not been in the

trade or got stopped out. But more often

than not, again, there's no absolutes.

There's not there's not a lottery. It's

it's it's not a definitive, you know,

1,000% of the time this is going to

happen. But with, you know, this is what

I've observed with when you have the

highest volume ever IPO in a year, more

often than not, it will define a clear

level of support and which is what we

call volume support on that name.

Perfect.

All right. So, next up we've got the

high volume close. Ryder, you want to

start this one?

Yeah. So, the high volume close is a,

you know, it it's it's now quite popular

in terms of entry tactics. So,

essentially, you know, we're looking for

the high volume edge. That's the first

step. So, that's this first bar. And

that close becomes of significance

uh as an entry tactic. I don't like it

to be my primary, you know, my first way

to to enter a stock that's, you know,

shown the highest volume edge. Uh it's

one of the second or third ways I like

to enter a name so that I can, you know,

still define my risk quite well. So the

entry is essentially at the close of the

the high volume day or the highest

volume, you know, where the catalyst

happened. the day that it moves above

it, you could place your stop uh you

know, right under underneath the the low

of that prior day. And that's what

people call HVC. Uh again, I for me,

it's not one of my primary entry tactics

when it comes to gappers. It's one of

the ones that I will use if there's

nothing else the stock is giving me. So,

uh I like the whole number support. I

like the volume support uh to play out

and those entries I found to be much

better than the HBC. But if all else

fails and I still you know can't find an

entry and I see momentum in that name

and the market cycle you know still

quite young uh the group is good

everything else is checking out then yes

I will take an entry at the uh the high

volume close which is the close of this

particular day and it becomes a key

area. This is a daily chart by for

everybody. Yeah. Yeah, this is again on

the on the daily chart uh when it comes

to this. So these are these are setups

what we're talking about now are setups

that happen after the high volume gap up

day. So after you identify this, you can

scan for this really easily. We've got

scans in DPU to find these days. These

are all setups that you can use after

the fact to participate in the trend and

momentum moves that these gappers often

are the start of. Um, and then here

we've got an example where we actually

fail the HVC, which can happen.

Obviously, want to manage your risk

tightly and it forms more of a a range

here under HVC and we've got kind of a

delayed HVC uh rally here, breakout

through uh and then this time it works.

So, that's another way that you can do

it. Managing your risk right at the low

of the day here within a few percent.

Um, Ryan, anything you want to add uh

before we move on from from this slide?

No, I think it's good. So, this is an

example. This is a Tesla uh back in

2019. This is a classic one. We had the

HV1 and then the next day we went

through that close. This is the HVC

entry right here and actually had

another HV1. So, extremely powerful.

Tells you that that setup is likely

going to work. And from that point on,

we participated in a trend. This

actually went parabolic into the 2020

correction. So this is a great example

of HVC here and uh really big volume on

HV1 the first day and then even bigger

volume the next day. Uh this is an

example with Docuine. It actually gave

you two two days to uh to try the the

HVC here uh through these pivots and

this led to a nice move into the end of

2019 and then obviously this was a big

winner in 2020 as well and this kind of

started from a nice I think 40% move

from the HVC entry. Next up, we've got

ELF. And I wanted to put this chart on

just to show the power of the HVC. And

uh you know, there's so many

coincidences where a stock will will put

in a huge volume move, gap up on

earnings, uh trend a while, and then

pull back right to the HVC. And if you

you mark up every HVC on the ELF chart,

uh every single time almost it retested,

it bounced there and kept on moving. So,

um, definitely a really good example to

study here, uh, with ELF during its

trend in 2022 through 2023. Uh, here

we've got ASU um, and Ry, I want to hear

your thoughts on this chart, but here

we've got, uh, the HVE on the

partnership announcement as well as

earnings. And the next day, it doesn't

quite give an entry. I think it pulls

back into the HVC and moves higher. But

after that, it forms a range right

against there and finds support right at

that area and sets up a nice range and

then rallies. And then later on we get a

continuation another HVE on another

partnership announcement forms a tight

range and then this breakout from this

HVC led to a nice move and this

obviously formed high tight flags and

and went crazy last year as well. But

Ryan, anything you want to add on on

this example or any of the prior

ones? Yeah. So the biggest thing here is

like you identify that the stock has now

had a significant move u on volume which

makes it special. Uh you'll notice as

you track a lot of these HVs that when

they happen around that, you know, $5

mark and the seven and a half, those are

the most powerful ones and in terms of

how they act and some of them, you know,

you'll be very early to pick them up cuz

people start talking about them in the

teens, but they're, you know, something

has drastically happened uh at the lower

price range, especially the 7.5 and the

five. Um I think you know with the with

respect to

as higher position sizing here was you

know easier to do than it was over here

if you missed that initial day right

it's tough to get this particular entry

spot where it comes back in and then

does an expectation breaker cuz you're

expecting it to undercut uh the HVC or

go sideways or lower but then it you

know rallies up above the prior days

high unless you caught this type of type

of move or you were antic anticipating a

pullback. I think this, you know, was an

easier entry area when it came to uh

this particular stock. Again, um making

progress in the market is all about

defining risk. If you missed it here,

it's fine. If I position size higher uh

and better over here, I could still

capture the move uh on this particular

name. And if I miss this one, I'm still

tracking it to see if this can give me

another move or a really uh nice risk uh

reward area for me to enter that name.

So, uh the key the key here is, you

know, when these things happen, you

focus in on them because there's a

reason, you know, volume is showing up,

people are participating, and there's

an, you know, the catalyst that Richard

highlighted is significant enough for

this one. It went crazy like even after

this particular gap it kept going. So,

yep. Perfect. We've got one more

example. This is uh root and this

actually uses the high as the pivot

because this is kind of a variation that

might be worth mentioning. Ry, if you

want to discuss that.

Yeah, this one's the same thing again.

Yeah, you got to know the catalyst that

that is happening here. This one will

force you like these this particular

momentum name forces you to use the HVC.

uh maybe the volume support has u may

have been closer to you know a little

bit lower. It doesn't give you that. So

what I tend to do is when you know when

these happen and I know that volume

significant enough and something's

happened in that name for me to track. I

boxed it in. You know I look at the

closest whole number as a potential

entry area. I look at the volume support

zone. I'll draw those out on that

particular day and I'll draw the HBC and

the high of the day. And then depending

on that next day and the action that we

are where we are in the market cycle uh

is momentum just starting to pick up and

is risk appetite for you know for these

type of names high in the markets then

according to the situation and where we

are in the market cycle that also

dictates which entry tactic you're

picking right in a market where

breakouts are failing and strength is

being faded it's hard to go and buy HVC

because you know that you're going to

get burned on that. In a in a market

where pullbacks are working, volume

support and whole number entry areas

work a lot better than uh than trying to

you know get into things that are uh

moving above prior days highs. Uh but

this one in this case like you know

exactly what Richard said this is a

prior significant area. There's a you

can call this a base but I think you

know whatever happened here this is not

a base. this is just a company that was

rotten uh and something happened here

where it came out of the woods and now

you know something's completely reset

this chart right so that makes it you

know a lot of folks that were maybe you

know shorts that were caught or whatever

the case might be caused this momentum

uh to the upside but what I want to

emphasize is a lot of traders say hey

these gap ups don't work uh and that's

usually a mechanism of we're late in the

market cycle we we'll have a whole

webinar on market cycle in this series,

everything and you know, every entry

tactic that you're taking will somehow

or some way tie into where we are in the

market cycle, right? If if we're late in

the market cycle and we're seeing gap

ups in a in an earnings season, those

gap ups usually fade because risk

appetite's already, you know, the last

30 days we were in an upcycle. there's

no more risk appetite that you know

there's no more uh exposure that you

know big firms want to take on at these

multiples when we've been trending for

the past 30 days whereas when we hit a

earnings cycle and the the market cycle

is just starting to pick up you'll see a

lot of gappers go up you know gap up and

go 30%. So, we'll get into the depths of

it, but what what I'm trying to get at

is the entry tactic that you pick h will

always work best when you correlate it

with the market cycle as well. So, that

will be a topic of discussion in future

webinars. Perfect.

All right. The next entry tactic we're

going to talk about um is basically the

consolidation pivot entry tactic, the

range breakout that we talked about up

the right hand side of a base, but after

a big gap. So often a stock might pause

for a little bit and set up a nice

range. And that's kind of my ideal way

actually to trade these gappers is we

have a nice move up, it consolidates

tightly, shows support, tightens, forms

a clear pivot, and then entering as it

breaks through that pivot, managing risk

right at that low of the day is kind of

my ideal way to trade um the these

gappers. Uh here's an example with ALAB.

We had a nice gapper here. It pulled

back pretty hard. I set a pivot right

here. I added on this. They already had

a position uh but you know I added on

this day pushed higher and then even

after it moved higher after this range

it set up another range breakout right

in this area. Two tight days R&V going

to zero right before this really nice

reconfirmation. So it can be subtle but

often after a gap up here there'll be a

pause a range that forms a pullback and

then it rallies and reconfirms higher

and really starts that trend after that

gap uh gap move. Uh here's Reddit. I

added on this one as well. or had a

position before this gap gap up showing

a lot of strength here. Pull back,

gradual pullback. This is the clear

pivot added on this day and then even

after it pushed up, it tightened up

again against the 10 EMA and reconfirmed

higher. Um, and you know, you'll see

constructive gaps do this is move up,

tighten, move up, tighten uh as they

continue to trend above all the moving

averages. Here's an example with Tesla

back in 2013. Actually, this was uh a

catalyst based on their first ever

reported quarterly profit. And this was

gapping out of a I think 2-year base.

So, a massive consolidation,

game-changing catalyst, big gap up, and

you might expect it to go immediately.

But instead, it pulls back hard. Uh

breaks all the hearts of people who

bought on this day. And then what does

it do? It sets up a nice tight range

against the 10 EMA. Clear line of

resistance here. This is the post gap up

range breakout by here. And then I think

this went up 200 250% in a matter of a

few months. So a really nice historical

example here and a good example of a

gamechanging catalyst as well, which is

always what we look for with uh the

gapper setup. Again, we're not look

trading any old gap. We're trying to

trade a gap that changes the way

institutions are valuing a company or

see future earnings growth or revenue

growth. and uh you know proving to the

market that it can be profitable is that

type of gamechanging catalyst that we're

trying to focus in on. Um this example

of Tesla uh later we already talked

about this actually but this is a

example from the trader handbook the

model book chapter. So, if you want a

sneak preview of the chapter 12 of the

model book uh of of the handbook, this

is one and this kind of breaks down um

this HV1 which I already talked about

the HVC right here, but also several

range breakout opportunities after that

gap up. Uh so, that's a good example

there. Um Ry, anything you want to add

on post gap up ranges um or any of these

examples? I can I can go back and cycle

through any of them.

No, I think uh that was good. All right.

So, getting a little bit into trade

execution, you know, we've talked a lot

about entry tactics. We've, you know,

identified a bunch of pivots, um,

different ways to enter a stock, but how

do we actually get ready to execute a

trade? Uh, this is kind of my personal

process here that I lay out. Uh, first,

of course, we're focusing on promising

setups and leading themes, showing many

edges. Again, we want to be really

clear. We're only looking for entry

tactics in a promising stock in an

overall strong setup. Uh then I like to

narrow down my focus list to one to four

stocks based on the readiness and

quality. So how tight are they? Are they

part of a leading theme? Is the market

cycle right? Um you know are they

showing uh are they primed with an

inside day or upside reversal? Uh all

those different qualities are something

I take into account. Uh and these are

some other things. Theme, relative

strength, tightness of the setup, uh

number of edges. And then what I like to

do if this is kind of pre-market um and

you don't see this bar, this is kind of

the the current bar. If this is

pre-market, I like to set an alert in

DFW below the pivot about 0.5% below the

pivot. So as the stock approaches that

pivot, I'm basically notified and I have

time to analyze the setup a little bit

more and you know do last final checks

to see if I want to take the trade or

not. So setting that early alert I think

is really critical. Um, then I always

check um, you know, do I have the

capability to add a position, check my

risk management. Um, can I set a tight

and logical stop-loss? Uh, then I prep

my order as it's approaching the pivot

after I'm notified by uh, this early

alert and then I enter if everything

looks good and it breaks through that

pivot. So, that's kind of my standard

process for trade execution. Um, setting

my stop right after I place my order or

often, you know, in IBR, I can actually

place my stop right with my buy order.

So, I do that right away. And usually my

stop 90 97.5% of the time is at the low

of the day right here. Uh is kind of how

I like to trade these these range

breakouts. Uh Ry, anything you want to

add on trade execution or kind of your

process for uh for for thinking about

actually entering a trade?

No, I I think um you know you have to

take everything in context. Um there's a

time frame and you know a situation

where these will work uh and you know

the the the risk appetite of the market

will dictate much of uh what happens

when you place a trade right so we'll

get into the depths of how do we um what

we covered today is the framework side

of things and how to think of a pattern

that forms after you see an edge a setup

form which which is a base or

consolidation and then how do you enter

that name and where do you place your

stop-loss uh within that entry tactic?

So I I know a lot of folks in the

comments are very eager to get to the

next topics that we will cover in future

webinars, but look at these as building

blocks towards that. And then we'll get

into, you know, when is the best time to

get into the markets? When is the best

time to step out? How do we build a

framework around, you know, when are

when is our exposure supposed to be 80%

or higher or when it's supposed to be

10% or lower, right? So we we'll get

into many many many of these things that

will all you know over the next 10 uh

webinars everything will tie together

but look at this as a building block

towards that and by the end of the 10 I

think you'll have a full system uh which

is why you know we're saying at the you

know these 10 webinars and the book will

allow you to build a full trading

system. Yep. And we've got a surprise

giveaway for everybody watching. If you

scan and tweet out a message, which is

basically you're you're attending these

webinars and recommend it to others. So,

if you found this helpful, go ahead and

do this. Uh I'll be DMing everybody who

does that today uh with a $50 gift card

to Trader Lion as you'll be able to use

that on any master class. And I'll be

choosing one person who does that today.

Uh they'll they'll be selected to win a

Trader Line master class of their

choice, whether that's with Oliver Kell,

Stan Weinstein, uh whatever master class

you'd like. You can go ahead and enter

to win by scanning this. And I just want

to emphasize what Ry said. Um each of

the webinars, the purpose of these

webinars is to go along and uh

complement the book because each chapter

of the book is designed to cover one

aspect of building a trading system.

We've talked about laying the foundation

uh analyzing price and volume. We've

talked about uh mindset psychology,

identifying your stage. We've talked

about edges and setups in the previous

webinar. This one the focus is on entry

tactics which builds up on the edges

incentives webinar and in the future

we're going to cover risk management

sell rules post trade analysis writing

trading rules um you know building a

model book finding new edges the the

book and also these webinars are

designed to help you build a full

trading system and hopefully it's been

very valuable to to you guys and

hopefully you guys show up to each

webinar and and find a lot of value in

it uh so we can speed up your learning

curves. Um, so that is uh the QR code.

Definitely scan that and uh you know

help support this resource that we're

building and we we'd be incredibly

appreciative and I'll be DMing you guys,

everybody who participates a $50 gift

card. Um, so this is the end. We'll

pause for a little bit of questions. Uh,

but first I want to say, you know, if

you found this video helpful, this

webinar helpful, uh, and are enjoying

this overall series, definitely go ahead

and order your copy of the traders

handbook. We had a few people who

ordered two, so that's awesome. That's

even better. Uh but basically everything

we talk about in these webinars is

expanded upon and gives more examples in

the book itself. And chapter 12 of this

handbook is a full 200 plus page

annotated model book of the biggest

winners. So all the concepts that we're

talking about edges, setups, entry

tactics, you can you know look and

analyze examples for yourself by

studying the greatest winners of all

time. And we've made that really easy by

including it in the book in chapter 12.

So, if you enjoy this webinar,

definitely go ahead and order your copy.

Um, and uh, with that, let's see if

there's any key questions. Uh, Ry,

anything else you want to mention about

the book or or this these webinar

series? Who is going to be voicing the

audio book was one of the questions?

Yeah, we're still deciding. We're still

deciding. Yeah.

Um, no, I don't see any questions. Um, I

think, you know, the most important is

make sure you join the next one. It's a

series. If you haven't watched the

previous ones, we'll link them in the

chat and also the description of this

video. Uh if you guys have questions

after the fact and you're watching this,

you know, after we finished, we're more

than happy to answer those. Uh do share

this with anyone that you think uh can

benefit from it. I think, you know, now

is the best time to learn with the

current market conditions. We're

officially in that bare market from a

technical definition perspective, which

is, you know, gives you ample time to

build a full system. Look at your

previous runs. what you've done in terms

of trading uh post trade analysis. Look

at your edges, entry tactics, setups, um

and all of that it you know the while

the market figures it out. So this kind

of environment doesn't uh really benefit

or you know provide an edge to longs or

shorts cuz the volatility is going to be

insane. So that's even more of a reason

to double down on just studying what

you've done uh you know in the past and

also adding more to your game so that

you can get infinitely better. Yeah.

Perfect. And there will be a digital

copy. I think you can order the Kindle

copy right now. Uh so if you go ahead

and scan this QR code, you can order the

the hard copy as well as Kindle and also

the audiobook as well. Um I actually

like to buy the audiobook version and a

hard copy. And I like to read it while I

I know this is crazy. I like to read it

while listening to audiobook, but that's

just me. Uh it helps me uh you know,

learn faster. So definitely go ahead and

order that if you haven't already. And

uh with that, I think we can end today.

So thank you guys all for tuning in.

really appreciate you guys spending some

of your Saturday here with us. Hopefully

it's been helpful to you guys. Um I I

have a ton of fun doing these and it's

great to to see all your guys great

questions and thoughts and feedback. Uh

so definitely appreciate it. If you're

watching this um in the future the

recording um if you have any questions,

leave it in the comment section. Um and

with that, I think we can pretty much

end it. So thank you guys all for for

your time and and your attention.

Definitely appreciate it.

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How to Trade Breakouts - Simple and Effective Entry Tactics for Performance