0:00 foreign
0:03 [Music]
0:04 welcome back to the treyland podcast I'm
0:07 your host Richard moglen joining me
0:08 today is one of my favorite traders to
0:09 talk to Brian Shannon who is very
0:12 experienced he's also the founder of
0:14 alphatrends.net and he just released a
0:17 new excellent trading book all about
0:19 anchor V web which is really our Focus
0:21 today so Brian thank you so much for
0:23 coming on and uh yeah great to have you
0:25 back on the podcast I've been looking
0:27 forward to this one Richard uh you've
0:28 always got great questions and really do
0:30 a great job researching the subject
0:32 before so yeah let's do it yeah perfect
0:36 and uh to Dive Right In I think it'd be
0:39 good to you know hear about your history
0:41 with v-wap and anchored V web
0:44 um how you first you know uh became
0:46 aware of that indicator and how you've
0:48 kind of adopted it and kind of centered
0:49 your strategy a little bit uh
0:51 surrounding that so I'd love to just
0:52 kind of hear about you know that
0:53 backstory and and how you've you know
0:56 developed Mastery of it okay so I I
0:58 first became aware of the V web in 2003
1:01 I was using a software called so 20
1:03 years ago
1:04 um real Tech and Realtek had this uh V
1:08 web for one day which is what it was
1:10 traditionally designed to do but I
1:12 realized after using it for a little
1:13 while that I could do it you know if I
1:15 change the time frame it would allow me
1:17 to look at you know five days or 30 days
1:19 or 18 days and I started kind of
1:22 experimenting I actually started
1:24 experimenting with a I had a uh a trend
1:26 tool just like any software you see or
1:28 uh normal Trend tool where you draw you
1:31 know lows or highs and or whatever it is
1:34 you're trying to draw a straight line
1:35 with well they had a v-wap trend line
1:38 it's like what the heck is this so I
1:40 drew it kind of like horizontally and I
1:43 noticed it would move up and down and
1:45 what it was doing was actually showing
1:47 that last point was the actual view app
1:50 for the beginning so I I started to
1:53 notice that and see that you know there
1:56 was support and resistance there and I
1:58 couldn't figure out why so then I
1:59 started using the the other tool on the
2:02 chart and realizing that hey there's
2:04 some value here when I look at it from
2:05 earnings reports or from two days ago or
2:08 from this big move so you know fast
2:11 forward I think about 2008 I wrote an
2:13 article for
2:15 uh tradingmarkets.com called uh chase
2:18 the gap or wait for v-wap and that's one
2:21 that I've you know still a strategy I
2:23 use today that you know a stock gaps up
2:25 and you look at it you know do we chase
2:28 the stock what do we do it's so hard to
2:30 know when to get involved in that stock
2:32 so I just let it settle down a little
2:33 bit if it gets back above the daily V
2:35 web and it's not too far extended by
2:37 there with a stop below the low of the
2:39 day that got a lot of attention 2015
2:43 tc2000 uh got a hold me and said hey
2:46 would you like to use our software we
2:47 like what you're doing and this sort of
2:49 thing I said if you can build a
2:51 point-and-click anchor tool I'm yours
2:54 done about two weeks later said Brian we
2:56 got it we're going to call it the
2:58 anchored V web by Alpha Trends and you
3:00 know there it is today I've been you
3:02 know posting charts about it for the
3:04 last 17 years and now we've got uh you
3:07 know so many other platforms tradingview
3:09 has it
3:11 um
3:12 uh Trend Strider has it
3:15 um each each trade charts I think has it
3:18 Fidelity charts so it's really becoming
3:20 more of a mainstream uh technical tool I
3:23 didn't invent it I've just kind of you
3:25 know help Shine the light on it
3:27 yeah perfect and you know take it a step
3:29 back for people who aren't familiar with
3:31 it at all uh what is V web and anchor V
3:34 web or AV web stand for I kind of give
3:36 it away there
3:37 um but what does that stand for and also
3:39 how how would you go about calculating
3:41 it
3:42 okay so the v-wap itself the volume
3:44 weighted average price
3:46 it was invented in two I'm sorry 1988 as
3:50 a tool uh for institutions to to
3:53 Benchmark their executions that a broker
3:56 would do for them so what it is is
3:58 basically the dollar cost average of
4:00 every single trade during that day so
4:03 every share one share one vote it's not
4:06 you know weighted by time it's the
4:08 actual you know truth in price so it
4:11 says you know if the stock traded
4:13 between 24 and 26 uh and closes at 20 it
4:16 closed at 25 well maybe most the volume
4:19 occurred you know near the high of the
4:20 day so the V web for the day is 25 and a
4:23 half and if you got a execution better
4:26 than 25 and a half it means that you did
4:29 better than the average participant and
4:31 it's kind of been known as uh the price
4:33 on naive Trader could expect to get
4:36 that's what the original authors
4:38 basically said
4:40 um a few years after that I believe it
4:41 was 1993 Paul Levine who has deceased
4:45 since then he's a math who started you
4:48 know tinkering with this and he kind of
4:50 invented the anchored v-wap as far as I
4:52 can tell that's he's you know I dug far
4:54 and wide to find what the history was
4:57 um so he in you know kind of invented it
4:59 and then his work kind of died off a
5:01 little bit and I like I said picked up
5:03 after that so the anchoring part is
5:06 simply as you suggest as uh mentioned
5:08 it's you know the traditional view app
5:10 is for one day and one day only the
5:13 anchored view app says from this
5:16 earnings report eight days ago from the
5:18 beginning of the year or whatever
5:19 Catalyst or event you want to measure
5:22 the the true price the true average
5:25 price that allows you to set it to that
5:28 point and then it tells you from there
5:30 who's in control buyers or sellers are
5:33 they gaining control are they losing
5:34 control are we oscillating above and
5:36 below that view of that anchored V web
5:38 so now it's you know become uh instead
5:42 of just an execution tool which is still
5:44 used very heavily as in fact it's the
5:47 most common uh input into the algorithms
5:51 according to
5:53 um Ken Griffin which Ken Griffin Citadel
5:56 is the um I know you know this is the
5:58 largest uh market-making firm in the
6:01 world and Ken Griffin you know told this
6:03 to Congress a couple years ago with a
6:06 GameStop thing and said you know we do
6:08 35 of all business in the market every
6:12 35 percent of all orders touch our hands
6:15 the majority of those are done with uh
6:18 the anchored view with it with a volume
6:20 weighted average price order and he went
6:21 on to say it's not just for one day it
6:23 could be a week it could be a month and
6:26 you know that was a real important thing
6:28 I mean that's when it really made so
6:30 much sense to me in that trial I mean or
6:33 that hearing whatever it was
6:35 um and here's the guy you know he made
6:37 more money than anyone in the hedge fund
6:39 business last year he took in 4.1
6:42 billion dollars in one year highest
6:44 earner ever you gotta listen when a guy
6:46 like that talks and says this is what
6:48 we're doing so now it's you know a huge
6:51 piece of algorithmic orders and what it
6:55 allows us to do is look at it and say
6:57 you know where are those buyers or
6:59 sellers stepping up defending price
7:01 levels and it's a level of interest to
7:03 you know look at the stock a little bit
7:05 closer and see if there's evidence there
7:07 for to suggest maybe it's a trade or not
7:10 yeah perfect and
7:12 um I I've I've talked with you of course
7:14 about this before previously uh you one
7:18 aspect that really stuck out to me
7:20 previously is you talk about how it
7:21 combines price volume and time all
7:24 together takes all those into account
7:26 um and there's a few different ways to
7:27 calculate the price component of uh the
7:29 anchor V web there's like open high low
7:31 close divide by three what what's kind
7:33 of the actual method that you use for
7:35 for the for the different time frames to
7:37 to calculate uh that's a great question
7:39 I get it all the time and I actually
7:41 wish that these trading softwares
7:43 wouldn't allow anything other than open
7:45 high low close divided by four that's
7:48 you know so so the V web is every single
7:51 transaction is what were the true V web
7:54 is and in order to get the true V web
7:57 you have to use a tick chart which
7:59 averages every single trade that's just
8:01 not practical looking at tick charts
8:03 especially if you're looking for more
8:05 than a day or sometimes in the really
8:06 big ones you know for an hour or so
8:08 because there's just so much data
8:10 scrunched up in there so what we want is
8:12 we want the most inclusive data we're
8:15 not trying to look at the average from
8:17 the highest point ever we're trying to
8:20 look at this it's basically represents
8:22 the psychology the participants it is in
8:24 my mind it's the best sentiment
8:26 indicator because it's actual truth it's
8:29 not this the sentiment in you know polls
8:31 it says what do you think well I'm
8:33 bullish but you know I'm 20 short uh you
8:36 know they there's there's what people
8:38 say and then what they do with their
8:40 money and this allows us to look again
8:42 with 100 accuracy what they are actually
8:46 doing on balance it's not just the
8:49 person who you know someone argued with
8:51 me the other day saying well I anchor it
8:53 to the high because I want to know the
8:56 program that turned on at that high it's
8:58 not like someone just turned on a
9:00 program at the high it gets you know it
9:03 just shows that there's a lack of
9:04 understanding so the point is if you
9:07 have high low and close well you're
9:09 taking out the average of the open if
9:11 the open is one of the most liquid
9:13 periods of the day same with the clothes
9:15 and everything in between every share
9:17 gets an equal count it's not a Time base
9:20 it's time volume and price and that
9:23 makes it Superior to any simple or
9:24 exponential moving average but you know
9:27 there's still room for those as well as
9:30 as we'll probably delve into
9:32 yeah and that was a question I asked
9:34 people if they had any questions for you
9:35 on Twitter and there were a few that
9:37 were saying uh you know you also include
9:40 uh the five five day moving average into
9:42 your uh process also the 50 day you talk
9:45 about that in your book you know it's a
9:47 key level of interest because a lot of
9:48 Market participants have it on their
9:50 charts that's why it's significant it's
9:51 a little bit of a self-fulfilling
9:52 prophecy uh so actually let's go ahead
9:55 and touch on that uh how do you
9:56 incorporate
9:57 um those different indicators along with
9:59 anchor view app to you know bring it all
10:01 together and make the final package
10:02 which is kind of how you look at and
10:04 interpret different charts yeah you know
10:06 Richard I think that all analysis in my
10:09 mind I I never look at and say hey it's
10:12 at the view app so I have to buy I never
10:14 look at and say the earnings are strong
10:15 so I have to buy I I look at it and say
10:19 in and same thing with a 50-day moving
10:21 average or a two-thirds retracement
10:22 those are all just little breadcrumbs
10:25 that lead us into the direction to say
10:27 how does this all add up does it come
10:30 together and reveal what the crowd is
10:32 actually doing so I don't place you know
10:35 100 emphasis on anything I have you know
10:38 clearly you know the five-day moving
10:40 average for me is what I've said you
10:42 know consistently is my most important
10:45 intermediate term Trend indicator if the
10:47 five-day moving average is declining I'm
10:49 not going to buy that market or that
10:51 stock if it's advancing I'm not going to
10:54 short that stock or that market so what
10:56 we're trying to do is to understand the
10:58 psychology of what drives the
11:00 participants you know I've done this
11:02 before I ask people hey do you have how
11:04 many people in this room of a room of
11:06 100 people have a 50-day moving average
11:08 on their chart you know 99 of the people
11:11 will raise their hand and and then I'll
11:13 say well why do you have it there well
11:14 because it works well because you know I
11:16 read about it in IBD or whatever and
11:19 it's but no one could tell there's no
11:21 real reason why it works right it works
11:25 because as you alluded to just before
11:26 it's a self-fulfilling or self uh you
11:30 know self-fulfilling prophecy to a
11:31 degree that if enough people believe a
11:35 pullback to the 50-day moving average is
11:37 going to be a place where it finds
11:39 support what happens will sellers start
11:42 to slow down their sales as it gets
11:44 towards that level buyers come in off
11:46 the sidelines and say hey it's at the
11:47 50-day moving average I'm going to buy
11:49 some I'm going to look at that 50-day
11:51 moving average or that anchored view app
11:53 or that 61.8 percent retracement and say
11:56 Hey you know it pulled back to this
11:58 level and this is also the anchored V
12:00 web from 22 days ago when the company
12:03 reported earnings and I looked at those
12:06 earnings and they were great they had
12:07 big Revenue increase they had a big
12:10 earnings increase so it tells me that
12:13 who's going to buy here well most likely
12:15 fund managers growth fund managers
12:17 they're interested in this they so I I
12:20 I'm not interested so much that hey I
12:22 think it's a great company because the
12:24 revenue and earnings are good I don't
12:25 want to get my opinion in the way I'm
12:27 trying to understand the psychology of
12:29 the fundamental people the 50-day move
12:32 moving average people to Fibonacci
12:34 people the Sunspot people if that's a
12:35 thing and the volume weighted average
12:37 price so how does it all come together
12:39 it's all about psychology of that area
12:43 and then when we get to that level and
12:45 we say this is an important level you
12:47 can choose to buy there if you like I
12:49 personally don't because it might just
12:51 continue to go lower it might be a
12:53 motivated seller we just don't know
12:54 about so instead to me it's time to
12:56 drill down to Shorter term time frame
12:58 and look for the evidence so it might
13:01 have pulled back you know four days in a
13:03 row that five-day moving average is
13:05 still declining but it's touching on the
13:07 50-day moving average or the 21 or the
13:09 21 EMA it doesn't matter they're all
13:12 kind of going to be in that same general
13:13 area and tell us it's a level of
13:15 Interest so study closer and that's
13:17 where I start to stock the trade it's
13:20 not just about boom take action it's
13:22 about okay now let's drill down so I can
13:26 get the stock as it begins to Rally
13:28 again I want to latch on to that
13:30 emerging momentum I don't want to buy by
13:32 the breakout from where it was eight
13:34 days ago because it has to go ten
13:36 percent to move there and I'm chasing so
13:38 I want to catch it as it comes off that
13:40 stage one on the short term time frame
13:42 right and then I can manage my risk uh
13:44 you know very effectively and that
13:46 allows me to have much bigger share size
13:49 at the onset of the momentum
13:52 yeah perfect uh you touched on a lot of
13:55 Concepts there that I think we'll dive
13:56 deeper into and I think the best way to
13:58 talk through this is actually to bring
14:00 up some charts and you know uh look at
14:02 it live because it's such a visual thing
14:03 so if you wouldn't mind go ahead and
14:05 share your screen and maybe once you
14:08 brought that up uh the first thing is
14:10 just to kind of talk through your your
14:11 overall layout so people get get a sense
14:13 of you know what you're looking at on a
14:15 day-to-day basis uh just so if they've
14:17 got that that frame of reference yeah so
14:19 what you see here I share this on uh
14:22 Twitter a lot these these charts and I
14:23 do my videos with this so I've just got
14:26 on the left I've got a daily chart and I
14:28 have a that red right here is a 20-day
14:31 moving average that blue is a 50 and the
14:33 black is a 200-day moving average over
14:36 on the right you can see I've been
14:37 drawing here
14:39 um I've got a 30 minute time frame and
14:41 that's the five day moving average right
14:42 here that orange one so what I'm looking
14:45 at Richard is you know I've got a couple
14:48 anchor View apps too so this is Sienna
14:50 and Sienna made a high in 2022 that
14:54 might have been late 21 I don't know and
14:56 it found resistance at sorry anchor of V
14:59 web from that it found Supply right
15:01 there it found Supply found Supply found
15:04 Supply again again and again well that
15:07 orange line is also the covet anchored
15:10 view app so they're kind of coming
15:11 together in that same area now I look at
15:14 this and I say let's just kind of clear
15:15 all this stuff off let me uh the
15:17 camera's in the way
15:19 um so that dark blue line is the
15:21 year-to-date anchored V web what I can
15:24 also do is say you know are the buyers
15:25 in control from this low in October or
15:27 from this low and we're above those so I
15:30 look at this and I see you know we've
15:31 got a 20-day moving average above a
15:33 50-day moving average above a 200-day
15:36 moving average
15:37 what's important about that to me is I
15:39 know that that's in a requirement for
15:42 some institutions that they're only
15:44 allowed to buy if the 250 is above the
15:46 200. it's written into their bylaws so
15:50 now you know we've had the stage four
15:52 decline the lower highs and lower lows
15:54 that were that were very clear over here
15:56 lower highs lower lows then we had a
16:00 higher low and we had a higher high but
16:02 at that point the 200-day moving average
16:04 was still declining so I wasn't trusting
16:06 it so the 200-day moving average is
16:09 flattened out this tells me we're in
16:11 stage one three basically doing this
16:15 sets it into a stage 2-1 now I wouldn't
16:18 have purchased here when it got above
16:20 that because look at that big gap and
16:22 you know it was just a couple days ago
16:23 it was 46 and a half and you know the
16:26 people who bought there you know it was
16:28 good for a day but then it just got
16:31 crushed they reported earnings the other
16:34 day they had what's looking like a
16:36 ShakeOut to me so if you look at the
16:38 anchor from that place so what I'm
16:41 trying what we're doing here of course
16:42 is building a picture on multiple time
16:44 frames we know there was a catalyst that
16:47 Catalyst immediately got bought up
16:49 because we can see let me just get rid
16:51 of this one so we can see that's the
16:53 average the the anchored viewf from that
16:55 low and it's telling us that since that
16:58 occurred the buyers came in very quickly
17:00 and it may you know ran up here it
17:03 pulled back and made this low at 50.75.
17:07 well it got back up to that level again
17:09 and it pulled back to 51. so the higher
17:11 low tells me the buyers weren't waiting
17:14 for it to pull back to 49 again or to 50
17:16 or to 50 75 the buyer said you know we
17:19 got to get involved in this thing on the
17:21 open tomorrow morning if an app opens
17:23 lower so they defended at 51. so now
17:26 we're building we know this is the level
17:28 of Interest so I'm starting to build a
17:29 trade plan and say we've seen some
17:32 resistance in here recently so for
17:34 whatever reason there's a seller there
17:36 let's look at the anchor from this Gap
17:38 and we're above that and from this high
17:41 so that confirms that from the average
17:43 of this Gap this Gap the average
17:45 participant long is in a winning
17:48 position the average short seller is
17:50 losing money so we want to be on that
17:52 that team so now if it breaks it got a
17:56 nice A little pullback here this
17:58 afternoon tomorrow we get rid of this
18:00 data so that means this will be we'll be
18:04 averaging this out and that means as
18:06 soon as the Market opens even if the
18:08 Market opens down here that five-day
18:10 moving average is going to start to to
18:12 advance because we're getting rid of
18:14 this data so what I want to look for is
18:16 I want to buy the higher high above a
18:18 flat to Rising five-day moving average
18:21 because it's in alignment with what we
18:23 see on this longer term picture and
18:25 Sienna who knows maybe it's going to
18:28 break out and then just completely fall
18:30 apart we we don't know this is the
18:32 tricky part of stage analysis in six
18:34 months if it's up here and it's done
18:36 this we can say what a beautiful stage
18:38 you know two breakout that was but right
18:41 now we're at that part where nobody
18:43 knows what's next it's that lonely
18:45 feeling of buying right here and saying
18:48 wait a minute where's the volume I'm
18:49 going to wait for the volume I'm going
18:50 to wait for it to break Above This level
18:52 well guess what as it gets above that
18:54 level it's extended and I'm going to
18:55 sell some to you and look for the next
18:57 pullback and get long on this move so if
19:00 I want to buy here I'm going to use this
19:03 shorter term time frame to say well if
19:06 this is a new emerging uptrend on the
19:08 shorter term time frame that's
19:11 going into a larger uptrend on The Daily
19:13 time frame I could be at the very
19:16 beginning of maybe a multi-year run I
19:18 don't know but I do know this that if I
19:21 buy right here at the point where it
19:23 makes that higher high what is my point
19:27 of exit if I'm wrong you know this is
19:29 great analysis and you can say you know
19:31 and maybe it just maybe it's going to
19:32 fall apart you can say well the V web
19:34 doesn't work well whatever nothing works
19:37 all the time that's not the point
19:39 what we have to do of course is risk
19:42 management and say based on my debt the
19:45 definition of not my definition the
19:46 definition of trend higher highs and
19:48 higher lows if I buy here there's only
19:52 one place in my mind that makes sense
19:55 for a stop and that's right under here
19:57 because that is the most recent and
20:01 relevant higher low
20:03 that emerge so if we're truly going to
20:07 you know see this stock let's just you
20:10 know make it look like this and move
20:11 this over a little bit if it does
20:14 something like this and I'd buy it here
20:15 and it goes like this and maybe I sell a
20:18 third and then it does this I might get
20:21 out of another third there and probably
20:23 just the rest of it here truthfully but
20:25 if it breaks down below here well what
20:28 happened to my definition of trend it
20:30 doesn't exist so if I'm a trend Trader
20:32 why on Earth would I still hold this
20:34 stock it doesn't make any sense what my
20:36 hope instead would be is that I buy that
20:39 break right above here and I sell a
20:42 third and maybe it goes a little it
20:44 pulls back and does this maybe I'll even
20:47 buy back that third there and you know
20:49 then raise my stop under here once it
20:52 eclipses this high I'll say that's the
20:54 new high or low so then if it does this
20:56 and rallies well then again I'll raise
20:59 my stop under here and though that's the
21:02 definition of trend I'm not looking for
21:04 a price target of 62 or whatever I'm
21:06 looking for this and if the market does
21:09 that that's where I get stopped out so
21:12 if I'm in here and I'm out of the final
21:14 third here I'm out of a third at this
21:16 point that's what the market told me for
21:18 my time frame
21:20 yeah perfect you touched on a lot of
21:22 great stuff there and coming back to one
21:24 thing you said about not buying on that
21:26 that large move up previously uh you
21:28 mentioned this your book as well it's
21:30 expended a lot of energy to get to that
21:32 point already you're looking yeah for it
21:34 to set up in a large term time frame
21:36 have that consolidation that then it can
21:38 have that that rapid advance from which
21:40 if you can get a precise entry you can
21:42 immediately hopefully be at a profit and
21:45 then you've got options you can sell to
21:46 strength you can manage risk tighter at
21:49 that next relevant higher low
21:50 um all those things that as you
21:52 mentioned and uh you know exactly it's a
21:54 key theme in your book too that you talk
21:55 about the risk management aspects you
21:58 know pretty much at the end of every
21:59 chapter you know why why is that so
22:01 important it's because we want to limit
22:02 losses
22:03 um as you mentioned you mentioned
22:05 already so many times
22:06 yeah so you know here's where I wouldn't
22:08 buy this stock if it gapped lower that
22:10 day and then broke out on here there's
22:12 no way I would buy it there and and
22:14 maybe it goes and I miss a trade and you
22:17 know what I've missed a lot of them but
22:19 what I would think would happen is it
22:20 breaks higher like this then it pulls
22:22 back a little ShakeOut does this and
22:26 then I always want to see a tightening
22:28 of the range because the tighter that
22:30 range gets I know I can maybe put half
22:32 of my stop below here put the rest of my
22:34 stop there once I sell a little bit I'll
22:36 raise my stop up under here completely
22:38 and just let the market tell me whether
22:42 it's working or not I've got a third
22:44 left of isee I bought that one at 27 the
22:47 other day and this is this is where my
22:50 stops are I mean this is you know I this
22:52 is I've got one third left and because
22:55 it's extended my stop currently is at 28
22:58 uh 50 uh 28.40 per share so you know
23:02 maybe it continues to go higher but it's
23:04 had a huge run I get defensive when
23:06 they're up this much like this I want to
23:09 lock in gains I don't want to be there
23:11 um you know there was one uh so let me
23:14 just make a quick example of that cute
23:17 I was in Cube
23:19 and bought it over here it doesn't look
23:21 like much let me just change the scaling
23:23 so we can see it a little bit more
23:25 clearly
23:26 um so I you know I bought it over here
23:28 at uh 47.70 I took a third off the first
23:33 day at with a 55 cent gain then I got
23:36 stopped out of uh part yesterday at
23:40 48.59 and the reason I raised it on that
23:44 third so tight is that it broke out
23:47 and look at where it had come from look
23:49 at the last time it broke out you know
23:51 and it was extended well those breakouts
23:53 from extended levels so I sold a third
23:55 55 cents a third 89 cents and then guess
23:59 what you know and look what happened
24:00 today a gap down so I got rid of the
24:03 last third with a loss of where's my
24:06 notes
24:08 um
24:10 I know it was very small oh 54 cents so
24:13 what I do when I when I when I get
24:15 stopped out like that I go uh I'm sorry
24:17 when my stop gets hit prior to the uh
24:20 you know if it gaps through my stop my
24:23 stop was
24:24 4806 so it opened below the Gap so I
24:27 wait for the first five minutes because
24:29 oftentimes we see so this is a five
24:31 minute candle oftentimes we see it we'll
24:33 do this right but instead I say if it
24:36 breaks below the five minute load that's
24:37 where I get out so I got out at
24:40 47.17 I believe and lost 54 cents on
24:44 that but because of the prior two thirds
24:46 that I took off profitably I made 30
24:49 cents a share on average which you know
24:51 buying it at 47.70 I'd be down 90 cents
24:54 instead right now so it's not my problem
24:57 anymore it's uh you know you got to take
25:00 especially in this market you got to
25:01 take them quick it's just they just
25:03 don't hold
25:04 for sure and and coming back to v-wop um
25:08 first kind of you know just talking on a
25:10 daily basis what does it indicate to you
25:13 when a stock trends all day above that
25:16 daily view up and also on the flip side
25:18 if it's trending below that all day
25:21 um yeah I'm curious to hear your
25:22 thoughts on that yeah motivated buyer um
25:25 I mean that's the only real way that I
25:27 can you know look at it and let's just
25:29 uh get rid of some of these so let's put
25:32 this on the Spy you know today and put
25:35 never mind those two purple and blue
25:37 ones but you know we kind of did that
25:39 today we gapped up and this is what we
25:41 often see is it chops around you know
25:44 after that but then it breaks that
25:45 opening range and then it's Off to the
25:48 Races and you can see that you know
25:50 throughout the day it was higher highs
25:51 and higher lows above that volume
25:54 weighted average price so as a very
25:56 short-term Trader if I was looking to
25:59 you know get involved in this I would
26:01 either want to buy it right here or I
26:03 would want to buy after these pullbacks
26:04 acts and I you know so I even on this
26:07 chart which is one minute I would put a
26:09 v web here for instance and say okay
26:12 well we pulled back from that little
26:14 break of that range it pulled back the
26:17 buyers regained control right here so I
26:21 can enter as a day trade right there at
26:23 40. 410 90 or whatever it is and my stop
26:27 would go under here and then look at how
26:30 that v-wap held as support there so
26:33 we'll pull back down that would tell me
26:34 well I want to put my stop under there
26:36 and maybe I'll set a new anchor there
26:38 and look at how that happened how that
26:40 handoff occurred and then that touched
26:43 it over here later in the day so what
26:45 those handouts allow us to do is to say
26:48 you know I my stop is under there now
26:51 this is my new high or low once it does
26:53 this my stop goes underneath that level
26:55 and now we've got another shift in
26:58 momentum higher so as long as you know
27:00 for my short-term day trade as long as
27:02 it's above this V web I'm going to
27:04 continue to hold out till here till the
27:06 end of the day and exit very close to
27:09 the high whereas I might have purchased
27:11 it right here or maybe even purchased it
27:13 right here but that's still good you
27:15 know for a day trade for a Dollar Plus
27:18 yeah and we're talking day trading here
27:20 but the same Concepts apply on higher
27:23 time frames right uh yeah exactly yeah
27:26 and and you know sometimes people when I
27:28 show a one minute chart they're like
27:30 whoa whoa hey I'm not a day trader
27:31 that's not the point the point is with
27:34 technical analysis all of the
27:36 information works exactly the same so
27:39 when you look at for instance a gap up
27:41 like this and it goes sideways for 40
27:45 minutes today it's very similar to
27:49 um newer these guys reported earnings
27:52 um not too long ago about a month and a
27:54 half ago and what do we see we see some
27:56 choppy action around that so again do we
27:59 want to buy just because it's above the
28:01 V web well look at where it had come
28:03 from the last couple days so do we want
28:06 to buy Above the Wii app here no it's
28:07 extended but now what I like about this
28:10 stock is we have this low we have a
28:12 higher low we have a higher low we have
28:14 this level of resistance and now it's
28:17 starting to tighten up if it breaks
28:19 Above This high I can get involved with
28:21 a stop under here rather than if I buy
28:24 here where does my stop go way under
28:26 here no thanks and then I have to write
28:28 it down like this so you know maybe you
28:31 know someone with a even a longer term
28:33 time frame than me might say yeah I like
28:35 that I'm going to buy the break of this
28:36 high and then I'm going to sell some on
28:39 the breakout Above This level right so
28:43 if I buy some at 74.10 and sell some at
28:47 76.20 that allows me to say okay now
28:50 I've recognized some of my gain here and
28:53 if it rallied up in this manner where it
28:56 goes like this
29:00 uh then I would put my stop under here
29:03 and even if it came back and stopped me
29:06 out at break even I would still have a
29:09 third off up there and I would still be
29:11 profitable overall so that's that's the
29:14 way I like to do it sell a little bit on
29:15 this breakout maybe I have a third maybe
29:18 I have two thirds left my stop on the
29:20 balance will go under here and then I'll
29:21 try to be a little bit looser with that
29:23 final stop and who knows maybe it goes
29:26 on to 90 bucks a share and I've still
29:27 got a third of my you know uh last piece
29:30 there so here's the two time frames
29:32 together and there's the year-to-date
29:35 anchor so it's kind of pinching we can
29:37 talk about a pinch people love the pinch
29:40 um but you know the problem with the
29:42 Pinch A lot of times is people will
29:44 Point them out to me on Twitter and say
29:45 hey Brian look at newer it's pinching
29:48 between the V web from that Peak and
29:50 there and it's just kind of useless
29:52 there truthfully instead you know we
29:55 want you know notice how the support
29:57 became resistance flip back to support
29:59 we've now got a Rising 20-day moving
30:01 average curling under it a rising 50-day
30:04 moving average so it took some time for
30:06 buyers to regain control they're not
30:08 there a hundred percent yet but they're
30:11 in as good a position as they've as
30:13 they've been in to say if it breaks
30:15 above here with a stop you know ideally
30:17 maybe it pulls back like this and this
30:19 is where I want to buy it tomorrow but
30:21 if we look at the longer term chart
30:23 what's the potential here
30:25 's our anchor from the high the year and
30:28 a half ago is that you know that that
30:31 adds a piece of confidence that this is
30:33 an important level because it's the
30:35 average price since that high now just
30:38 regular technical analysis maybe it's
30:41 going to run up in here there's almost
30:42 no price memory in this Zone this is
30:45 where we would expect to find Supply so
30:48 maybe that's where this stock is going
30:50 it's a level of interest on the upside
30:52 where if it got up there quickly maybe
30:54 you sell some or maybe you just say hey
30:56 it's battling with that so I'm going to
30:58 set my stop real tight to lock in my
31:01 gains or if it doesn't it keeps going
31:03 like this well then great I'll continue
31:05 to raise my stop there
31:07 yeah perfect and you mentioned the
31:10 anchor view up pinch uh for people who
31:12 aren't familiar with that could you
31:13 maybe run through one more example and
31:15 talk about how you would Set uh the
31:16 anchor view office on the on the top
31:18 side as well as at the bottom yeah so
31:20 what what a pinch really is doing and
31:22 you know here I didn't draw it properly
31:25 where's so there's January and what is
31:28 what it's telling us is you know from
31:30 this point the beginning of the year the
31:33 buyers are in control they've been
31:35 defending the average price since the
31:39 beginning of the year so there's a
31:40 motivated buyer who said you know this
31:42 year we like the prospects for newer
31:45 rate we have a mutual fund that you know
31:48 wants to buy you know there's a hundred
31:50 thousand shares outstanding we want to
31:51 buy a hundred million shares outstanding
31:53 we want to buy five percent of those
31:55 we're gonna buy five million shares well
31:57 we're gonna buy on pullbacks to that V
31:59 web from the beginning of the year we're
32:01 gonna defend it there we're not going to
32:03 chase it up here in fact you know we
32:05 purchased 5 million of our shares and it
32:07 gaps up here let's sell a million shares
32:09 so that when it pulls back down we can
32:11 replace those it's just you know trading
32:13 on a bigger scale and now accumulating
32:16 in here and saying we're going to buy as
32:18 much as we can because this is the naive
32:21 price the trader for this year could get
32:23 so they're providing support at that
32:26 level there's a buyer buyer you know
32:29 group of buyers there and it also is
32:32 further giving confidence because that's
32:34 the rising 50-day moving average so like
32:36 we were saying earlier you know there
32:39 might be a group of buyers or there
32:40 might be a group of shorts that shorted
32:42 up here on that Gap up and they said
32:44 we're going to cover the 50-day moving
32:45 average we're going to short it down to
32:47 the 50-day moving average or that long
32:49 fund might say we're going to sell a
32:51 million shares down towards that 50 day
32:53 and when it gets to the 50-day we're
32:55 going to flip and put a bid in so we
32:56 don't crush the stock the short seller
32:58 is going to say we're going to start
32:59 covering the 50-day and it's a supply
33:03 and demand equation that starts
33:04 balancing out the sideline cash will say
33:07 hey it's the year-to-date V web maybe
33:10 they recognize that they're at the
33:11 50-day moving average we're going to
33:13 start to nibble and then it gets above
33:14 the 20-day moving average but it's
33:16 extended so pulls back the 20 crosses
33:19 above the 50 right in here it's holding
33:22 the 20 and the 50 and it's holding the
33:24 anchored V web from this low right in
33:26 here if I made a big mess there but
33:29 let's just clear that up so it's you
33:32 know it's at this anchor it's at the 20
33:34 and the 50-day moving average this is
33:36 you know worst case a stop would go
33:39 under here I think for somebody who's
33:40 looking to say maybe hold this for the
33:43 next month or two you can also look at
33:45 it like this is this a shoulder this is
33:47 a head and this is a shoulder and
33:49 there's going to be you know buyers as
33:52 it breaks past the neckline well maybe
33:54 I'll sell a little bit on that break to
33:56 them it pulls back and then maybe I'm
33:59 going to add to it and you know this
34:01 should hopefully bring about the bigger
34:04 move on the weekly time frame and we're
34:07 getting there by looking at the shorter
34:09 time frame uh or that 30 minute time
34:11 frame go
34:13 um
34:14 on that 30 minute time frame is where
34:16 we're making the decision so it goes
34:18 back to Trend alignment we'll identify
34:20 you know the big picture on the weekly
34:22 time frame and say that looks good you
34:24 know this was an earnings report someone
34:26 got motivated what are the motivations
34:28 of the different groups I'm not talking
34:30 about the magic of the V web as much as
34:33 some people want it to be that because
34:35 oftentimes it seems magical but it's
34:37 about why there's buyers and sellers
34:40 that congregate in that area how can we
34:43 use that information to our advantage
34:45 narrow down on this puzzle and make what
34:49 appears to be a low risk purchase and
34:51 get involved in emerging potential large
34:54 uptrend
34:56 yeah perfect and I like how you pointed
34:58 out when uh you're looking at the area
35:00 where the Confluence of the 50-day
35:01 moving averages you're talking about the
35:03 psychology of all the different
35:04 participants and why you know that might
35:06 be a level of interest for you know
35:08 multiple groups of people who trade
35:09 differently but it all kind of comes
35:11 together at that one spot and that just
35:13 increases the probabilities of you know
35:15 that level being respected obviously as
35:17 you've kind of drilled into my head a
35:19 little bit you know nothing's absolute
35:20 you don't you don't want to buy before
35:22 the strength but it did respect that
35:24 level ultimately and pull back and now
35:25 present another another potential
35:27 opportunity another higher low setup
35:29 yeah it's it's not the market right I
35:31 mean when we were two two years ago when
35:33 we're coming off the covered lows you
35:34 could buy any pullback you could buy
35:36 ahead of a breakout and you had very
35:39 good odds it was going to continue but
35:40 we're in a very selective Market where
35:42 things like you know uh
35:45 um what was the one I just uh mentioned
35:47 um you know Cube they break out and then
35:50 they just come in hard I mean if you
35:52 didn't sell you know the next morning
35:54 you're you're at a loss so you've got to
35:57 take some off the table and it's just
35:59 about knowing the environment that
36:01 you're in and hopefully being able to
36:03 identify those those situations where uh
36:06 they come together and you can
36:08 you know get the low risk opportunity
36:11 and ride them for the time frame that
36:13 you're engaged in yeah and and how have
36:15 you been handling you know the more
36:17 choppy Market
36:19 um obviously 2020 was you know
36:20 abnormally good but um are you a little
36:23 bit quicker to take profits are you
36:25 looking for short-term time frames how
36:27 are you kind of adapting to to still be
36:29 able to trade and and manage risk as you
36:31 as you go in this type of environment
36:33 well so the you know the again the a lot
36:37 of these moves have have failed to to
36:39 follow through not not all of them of
36:41 course I mean you can always look at you
36:43 know something like Nvidia that's just
36:44 been riding this beautifully higher
36:47 um and there's been some you know great
36:49 moves in there for even shorter term
36:51 Traders now maybe it's getting a little
36:53 bit heavy right but so what I what I do
36:56 Richard is I just don't have a lot of
36:58 confidence in this market yet it's
37:00 getting there maybe but I still think
37:03 we're you know could see if you had a uh
37:05 uh head fakes so I'm taking each stock
37:08 based on own merits I'm not as concerned
37:11 about the market because we've at least
37:13 you know we're at least in late stage
37:15 one maybe getting ready for a a a trend
37:20 that could hold we're just entering
37:21 earnings season so maybe that's going to
37:23 be the uh yeah or maybe that's what's
37:26 going to crush it as well so we have to
37:28 be aware of that so everything I do has
37:31 been
37:32 unfortunately almost everything I do has
37:34 been smaller share size I hate it but I
37:36 I'm just trading like a because
37:38 more things are going against me and
37:41 I've gotta you know be able to number
37:44 one get out of a little piece right away
37:47 to lower my risk that's been really
37:49 crucial for me
37:51 um so just like we saw on Cube if I
37:53 hadn't sold any I would be taking I'd be
37:55 taking a loss and I'd be really annoyed
37:57 with myself because my process is to
37:59 sell some into strength especially in
38:01 this market if we're in a you know
38:04 beautiful stage two up trending market
38:06 and everything seems to be working on
38:08 all cylinders I'm not going to be as
38:10 quick to sell that first third if I
38:12 really feel like I'm at the right entry
38:13 point I'm going to be involved with you
38:16 know larger share size I'm going to you
38:18 know Trail my stops a little bit wider
38:21 behind because I know that you know I
38:23 can account for uh you know probably
38:26 less volatility as as the uh soros's
38:29 quote that I like is volatility exit
38:32 turning points and diminishes with the
38:34 trend so if we're in a trend we don't
38:37 expect large volatility but when we're
38:39 battling it out buyers and sellers for
38:41 control you know that's what we're
38:43 seeing that's what this volatility is
38:44 about is that we're you know trying to
38:47 look at this you know uh s p on a weekly
38:50 chart and it's still a battlefield right
38:54 and it's just not certain yet we've
38:57 we're looking as good as we have that
38:59 maybe we're going to you know sustain
39:02 something but what would you know to me
39:04 what would say we're in a stage one is
39:06 getting about stage two is getting above
39:08 here but it doesn't mean I would buy
39:10 there because we just you know went one
39:13 two three four five six weeks to get
39:15 there instead I think it would break
39:17 there
39:18 and it would do this
39:20 and then I would want to get involved
39:23 right here thinking that okay this is
39:25 the higher low I'm going to see it do
39:28 this and if the market can do this and
39:30 continue to you know do what it's
39:31 supposed to or maybe a little shake out
39:33 here and there and then continue higher
39:35 that's the ideal scenario but we're
39:39 we're not quite there yet
39:42 yeah perfect
39:44 um
39:44 and getting back to if you could
39:47 actually bring up the Nvidia chart uh I
39:49 thought that might be another good
39:50 example to talk about the the handoff uh
39:54 as it's in the trend maybe go to a daily
39:55 uh can you talk about you know how you
39:57 would Place The View UPS here where you
39:58 would anchor them and also how you would
40:00 do the handoff process maybe it's not
40:02 long enough of a trend but you can do
40:03 make sure no no it is and so you know I
40:05 would anchor one to that low when would
40:07 I anchor it to that low is is the
40:09 question like well how did you know that
40:10 was the load anchor well I wouldn't have
40:12 known it I wouldn't have set that anchor
40:14 till probably you know three to four
40:16 days later because I would say hey we
40:18 had that big decline we
40:21 rallied from that and that seems to be
40:23 holding so far so I'm going to set an
40:25 anchor there how does that you know
40:27 where do the buyers take control from
40:29 that last sell-off so we see that this
40:32 is where the buyers really took control
40:34 with that we knew for a fact that from
40:38 that break above the declining 200-day
40:40 moving average which was sold into we
40:43 knew for a fact that the average
40:45 participant long from there is now in a
40:48 winning position the average short
40:49 seller is now losing money so we might
40:52 want to even just anchor one right there
40:54 from that break point and then we saw
40:56 the pullback to that and it touched
40:59 there so we could anchor one here and
41:01 look at how it touched right there and
41:03 there so I would have on this day I
41:06 would have anchored one here and I might
41:09 have said hey time to get out but we'll
41:11 I keep that one on because then it you
41:13 know but there was no trade there
41:14 because it gapped away I wouldn't have
41:16 bought at that level it would have been
41:18 a mistrade so it rallied up and then
41:20 guess what well look it pulled back to
41:22 this one again so that and then it had a
41:25 strong rally so on this day I would say
41:28 that was an important low let's anchor
41:30 to that level and now here we are we're
41:33 holding you know we're just battling the
41:36 20-day moving average and we're uh you
41:40 know still holding above the anchor from
41:41 this point so if it does this I wouldn't
41:45 sell it short mainly because it's still
41:47 above a 50-day moving average I would
41:49 think maybe though if it does this it's
41:51 going to do something like this and then
41:54 come down towards that 50 day if it gets
41:56 trapped below that 20 if it gets trapped
41:59 below that anchor over here then you
42:01 could say is this a shoulder this is a
42:03 head and this is a shoulder so in order
42:06 to really see that better though we
42:08 could look at like 130 minute time frame
42:10 and here I've got a 5 10 and 20 day
42:12 moving average so actually let's just go
42:15 to a 65 minute time frame and there you
42:18 can see it really you know again so is
42:21 this
42:22 you know a head and shoulders pattern
42:23 that's breaking down and if so this was
42:28 an important recent High you know maybe
42:30 my stop goes just above this level right
42:32 here so if it rallies up a little bit
42:35 breaks down short here with a stop there
42:39 if you're interested in shorting it I'm
42:42 personally not interested in shortening
42:44 because it has a rising 20 and a rising
42:46 50-day moving average right but I could
42:48 see it pull back maybe if it was going
42:50 to you know experience a deeper pullback
42:52 I could see it come down to that 50 day
42:54 I would be more interested in seeing how
42:56 it behaves there and then buy it as it's
43:00 breaking away from there with a stop
43:01 under here
43:03 yeah perfect and one one thing new that
43:05 I picked up for your book was uh you pay
43:08 a lot of attention to the slope of that
43:10 anchored V web so looking at that
43:11 original uh thick blue one uh you know
43:14 that's Rising quite quickly what does
43:16 that indicate to you about you know the
43:18 the strength of the buyers and and the
43:20 aggressiveness that they're that they're
43:22 exhibiting yeah they're motivated I mean
43:24 they're really motivated that's the
43:26 average price for this year now one
43:29 thing is that you know as we start
43:31 getting up in these nosebleed levels I
43:33 mean a pullback seems highly likely at
43:37 some point in here soon something that's
43:39 probably going to come very quickly too
43:40 and and you know maybe then you have
43:43 this prior resistance that might act as
43:45 support this year-to-date anchored V web
43:47 starts sneaking up like this
43:50 um I think though that you know it would
43:52 probably be you know maybe the anchor
43:54 from here right so you can see that's
43:57 where the buyers really took control
43:58 after that little pullback right there
44:00 it touched it was defended it touched it
44:03 was defended so that view app would
44:05 probably tie in a little bit better with
44:08 this and you know I'd be aware of this
44:11 though because if it continues lower I'd
44:13 say okay well there's the year to date
44:15 so again I don't want to buy the
44:17 pullback to the 50-day moving average I
44:19 don't want to buy the pullback to this
44:20 level I don't want to buy that pullback
44:22 I want to see instead that if this is
44:26 the pullback that it occurs like this
44:30 and that five-day moving average comes
44:32 bearing down on it like this and then
44:34 you know if I just extend this over a
44:37 little bit that you know price action
44:41 does uh does uh where's my tool here we
44:45 go price action does this and maybe sees
44:49 a little bit of a of a ShakeOut maybe
44:52 the five day comes down like this I
44:55 would want to be a buyer here with my
44:57 stop underneath this high or low maybe
44:59 half of it there and half of it under
45:01 this higher low and that might occur
45:03 here it might occur at the 50-day moving
45:05 average it might occur here then you
45:07 know maybe there's going to be people
45:08 saying hey well you know throw some
45:10 Fibonacci Fibonacci on there that's a
45:13 38.2 percent retracement right there of
45:16 that low to that high so there's another
45:19 you know group of people group of
45:21 traders that say I short it down to the
45:23 38.2 percent retracement then I cover
45:25 another group says hey we're long 20
45:28 million shares of this stock let's sell
45:30 it down to the 38.2 percent retracement
45:32 and then we'll flip from seller down to
45:35 buyer in that level and recover some of
45:37 our position at you know same it's the
45:39 same psychology it's always about
45:41 thinking about what motivates other
45:43 people is it the 50-day moving average
45:46 sometimes it is so I keep those on my
45:48 charts in addition to the anchored V web
45:50 the the you know so just if I can go on
45:53 a little tangent here that might answer
45:55 some questions for people is you know a
45:57 simple moving average or an exponential
45:59 moving average either one they're good
46:02 they you know there's a lot of people
46:04 that base trades around them a lot of
46:06 people will say they do it though
46:08 because it works because there's often
46:11 support there there's no magic to the
46:12 number 21 there's no magic to the number
46:14 50. so what we're looking at is just a
46:18 crowd consensus that that says it's a
46:22 reason to look at that level just like
46:25 the 38.2 percent this is a crowd
46:27 consensus the 38.2 percent is a normal
46:30 pullback without ruining the uptrend so
46:33 let's look in there under the curtains
46:37 to see is it is the is the five day
46:39 moving average still declining and is
46:41 the stock getting rejected on rallies up
46:43 there and just continues down well fine
46:45 I I don't have to own this stock there's
46:47 no reason to own it if it's just doing
46:50 this right
46:51 so
46:52 the v-wap though what it tells us is
46:56 from a certain point where the buyers
46:59 were motivated it's price memory it says
47:02 that from this point where the buyers
47:04 regain control it was defended it was
47:08 defended there was maybe maybe there's a
47:10 program that got turned on there that
47:13 said we're going to buy 8 million shares
47:15 for the next six months but if it gets
47:18 more than x away from the uh view app
47:22 from that action point we're gonna sell
47:24 some and when it gets down there we're
47:27 turning the program on we're going to
47:28 buy as much as we can we're going to try
47:30 to fill this order as best we can so
47:33 that when if as if they're expecting the
47:37 weekly time frame to you know continue
47:39 to do
47:41 something like this
47:44 and go on to new all-time highs I mean
47:46 the stock is capable of it right so they
47:49 want to buy as much as they can on that
47:52 pullback
47:54 shorter term Traders smaller Traders we
47:57 have the luxury of sitting out the
47:59 pullback we don't have to buy the dip
48:01 it's stupid don't buy the dip buy
48:03 strength after the dip that's what we
48:06 want to do
48:07 yeah perfect and one question I had for
48:09 you was it maybe you could go back to a
48:12 daily time frame for this uh when you've
48:14 got an acre V web
48:16 um maybe from the year to date if you
48:18 could do that do you take a look at how
48:20 extended above that view app we are as a
48:24 measure of you know maybe the Stock's a
48:25 little bit stretched out it might need
48:26 more of a basing period like do you use
48:29 um I don't know uh standard deviations
48:31 from that or maybe just look at it
48:32 visually but is that something you take
48:34 into account at all but you know that's
48:36 a good question a lot of people like the
48:37 standard deviation bands I prefer not to
48:40 use them simply because I do like the
48:42 simple moving averages is what I you
48:44 know cut my teeth on simple moving
48:45 averages and I still have a lot of
48:48 belief in their value and and I don't
48:50 think it's a coincidence either that you
48:52 know there's buyers at this 20-day
48:54 moving average and a little ShakeOut
48:56 below it so I'm more interested in
48:57 what's the direction of the 20-day
48:59 moving average than whether it's above
49:00 or below it then maybe it's a ShakeOut
49:02 and same with the 50-day moving average
49:04 that maybe it comes down to it and
49:06 slightly through it but then I would
49:09 expect this and recover so uh back to
49:12 your question though is I want to look
49:14 at
49:15 I look at it visually and say hey it's
49:17 pretty far extended from there I've got
49:19 to be a little careful but when I look
49:21 at the daily chart I see that there are
49:23 aggressive buyers defending not only the
49:26 20-day moving average but the anchored V
49:28 web from the buyer where the buyers
49:30 really gain control from this point I'm
49:33 sorry this point right here
49:35 and this point right here and then again
49:38 anchoring to this point saying we really
49:41 expanded away from there that's the next
49:43 level of Interest the 50-day moving
49:46 average sneaking up with it uh so it's
49:49 always just you know being aware of the
49:51 important levels on different time
49:52 frames and what type of participants
49:55 might be motivated when it's this far
49:57 extended I you know and you see this
50:00 what looks like a clear uh Head and
50:03 Shoulders pattern I'm not going to mess
50:05 with it because the primary trend is
50:07 higher but I know that there's people
50:09 out there shorting this thing and you
50:12 know the beauty might be that it breaks
50:14 down below there comes back up and
50:16 squeezes all those shorts right and I've
50:18 got to be aware of that as well
50:21 yeah perfect that definitely answers my
50:23 question and
50:25 um I know you've covered this before and
50:27 it's definitely in your book as well uh
50:28 but could you kind of give an overview
50:30 of maybe a quick guide of you know
50:33 important spots uh significant days
50:35 basically where you like to Anchor an
50:37 anchor B web uh too because that's kind
50:40 of the subjective part of it but it's
50:41 it's the art right uh it is the art yeah
50:44 so so again it's it's about psychology
50:47 what's important to the market earnings
50:49 reports are important to the market
50:51 anything that causes a big supply and
50:54 demand disruption whether it's an
50:56 earnings report on really big volume or
50:58 is just an analyst upgrade because this
51:01 analyst kicks ass or whatever it might
51:02 be but what is you know what gets people
51:05 excited what changes the supply demand
51:09 perception a lot of times it's earnings
51:12 at the end of the day stocks trade based
51:14 on earnings they're trading on fused to
51:16 treat your expectations for the company
51:18 and once in a while we get a true Supply
51:20 a surprise rather it breaks above the
51:22 anchored viewf from the IPO so here I'm
51:25 answering that with some examples of one
51:28 I like it from the IPO that you know we
51:31 had that as we spoke about on the one
51:33 minute chart for the Spy it gets up
51:35 there it has that Battleground you know
51:37 just like we saw on that one minute spy
51:39 and here we are on a daily chart and
51:42 then the buyers take control so I would
51:44 probably set one where did the buyers
51:46 take control right there and then I
51:48 would go back and say you know as a
51:50 swing Trader well it's breaking down I
51:53 don't want to be involved in that
51:54 anymore let's see as it breaks down
51:57 there now I know this was an important
51:59 high so I want to set an anchor to that
52:01 high and see how prices uh behave around
52:05 that and maybe that becomes a level of
52:08 resistance in the future which in fact
52:09 it did so as it breaks above there well
52:12 you can see on this 30 minute time frame
52:14 on on
52:16 um you know it got a little bit extended
52:18 in here and they shook people out pretty
52:20 hard this was the earnings report it was
52:23 defended defended looked like it was
52:25 defended saw ShakeOut so that's an
52:27 important low and I knew that right here
52:29 and now I'm looking at this and saying
52:32 well that
52:33 event what's the you know who's in
52:36 control buyers or Sellers from that gap
52:39 down who has control well the buyers are
52:43 back in control because that anchor V
52:45 web lines up right in here along with
52:48 the anchored V web from the earnings
52:49 report and that Mo that that low so now
52:52 I want to look at it a little bit closer
52:54 and say well we had a ShakeOut two days
52:57 ago what is the average price from there
53:00 okay so when we look at that it tells me
53:03 that today you know we gapped up we
53:06 pulled back now if we can pull back down
53:09 into here tomorrow and then the stock
53:11 starts getting going right here I want
53:13 to be a buyer right here maybe even
53:16 maybe even add some there uh
53:19 but I think this would be just a little
53:21 bit early which is fine
53:23 um and my stop initially I mean your
53:25 worst case stop I think would go under
53:27 here otherwise you know under this
53:29 cluster of of volume weighted average
53:32 price levels which is also where we see
53:34 that Rising five-day moving average so
53:36 it's got a little bit extended I mean
53:39 you look at us go right it only rallied
53:41 a point it's three percent though right
53:43 I don't want to chase it three percent I
53:45 want to buy after the pullback and it
53:47 starts to Rally again and then set half
53:50 of my stop under this V web cluster half
53:53 of my stuff under the morning low as it
53:56 climbs higher to daily R2 later in the
53:58 day I sell a third I raise my stop to
54:00 break even on the balance now I've taken
54:03 UH 60 cents on a third of it and I've
54:07 got two thirds left that now if I get
54:10 stopped out at break even I'm still
54:12 going to have an average of 20 cent gain
54:14 in case it falls I you know I don't like
54:16 crystal balls in the shop it doesn't
54:18 tell me but but I've got to be aware of
54:20 this as well so the anchor from the
54:22 recent high is that going to Halt it so
54:25 maybe that's a good place to sell that
54:28 first third right up in there pulls back
54:31 and then maybe so tomorrow's Friday
54:34 maybe it shakes out and then Monday
54:37 morning it's Up Up and Away past this
54:39 level I've got a head start on the
54:41 breakout buyers for a reason
54:44 because I know as a fact the sellers
54:48 lose control above that point from the
54:51 highest point paid if this if there were
54:54 very aggressive short sellers where do
54:57 they get into trouble they get into
54:58 trouble Above This level not above that
55:01 level because they're you know dollar
55:03 cost averaging averaging into it it's
55:06 it's you know it's assuming what the
55:09 average price for the crowd is not
55:10 assuming the average price it's
55:12 factually that's the average price from
55:14 that Peak
55:16 yeah perfect and uh this is also an
55:19 example of a breakaway Gap so maybe we
55:21 could go back a few days to uh the
55:23 actual earnings date and talk about uh
55:26 the Breakaway gaps because you break
55:27 down in the book The the four different
55:28 types of gaps and the Breakaway Gap I
55:30 think uh you know especially on earnings
55:32 reports that's something a lot of people
55:33 are interested in and are looking to
55:35 accumulate kind of Entry tactics to to
55:38 address that type of situation
55:40 well so there's three types of uh gaps
55:43 in in terms of traditional technical
55:45 analysis I'm just trying to move that
55:46 over there because the camera's in the
55:48 way again
55:49 um but in traditional technical analysis
55:52 you have three gaps one is called the
55:54 Breakaway Gap that's kind of like the
55:56 ignition that really got people excited
55:59 but it got ahead of itself so it had to
56:01 slow down and check in and do the buyers
56:05 are the buyers still interested in you
56:08 know maintaining control and it appears
56:10 as though they are because they let it
56:12 slide a little bit then they came in and
56:15 created a higher low and you know that's
56:18 the way you have to think of it is the
56:19 buyers created a higher low how did they
56:22 create that higher low well they showed
56:24 enough demand in there to stop to to
56:27 absorb the supply so it can stop going
56:30 lower and then once they get rid of that
56:33 seller it was free to go higher so if it
56:36 breaks that pattern now of this low and
56:38 this higher low well then I I don't want
56:40 to be involved because maybe it goes
56:42 down and this is a failed Gap I I don't
56:44 want to take anything for granted and
56:45 make assumptions that it's just going to
56:47 go higher because it would suck to say
56:49 hey I love their sneakers they sold a
56:52 lot of them they're making a lot of
56:53 money the positive earnings surprise the
56:55 shorts are getting squeezed but
56:56 something happens I'm not going to be
56:58 around for it so the Breakaway Gap and
57:01 then typically somewhere around halfway
57:04 between a stocks you know final move and
57:09 oftentimes it actually occurs you know
57:11 three months apart between earnings so
57:13 maybe next earnings let's just call that
57:16 three months to this point maybe in
57:19 three months they report earnings again
57:20 and it does this and then it it has this
57:23 Gap doesn't quite fill it you know all
57:25 gaps get filled people say but often you
57:28 know maybe a year and a half later as it
57:29 comes back down but this is what's known
57:32 as the measuring Gap
57:33 so the measuring Gap
57:35 occurs typically halfway through the
57:39 move so if this was the Breakaway and we
57:41 went from 21 to 20 to 36 that means that
57:45 that was 15 points so if we add 15
57:48 points to this break point that tells us
57:51 our next Gap should come up around here
57:55 that so the measuring Gap simply says
57:57 you know we typically see two moves of
58:00 about the same price uh price magnitude
58:03 and that's our you know price objective
58:06 doesn't mean it will be the the high but
58:08 if then in six months from now we saw
58:11 another earnings report and then that
58:13 one gaps up you know let's let's just
58:16 call this that earnings report three
58:18 months six months from now it might Gap
58:21 up and now it's you know with the stock
58:23 has gone from 21 to 51 it breaks to new
58:26 all-time high on that earnings let's say
58:28 well that would be a great place to sell
58:30 some because you're likely to see you
58:32 know at least a longer term time
58:35 correction it's kind of done what it's
58:37 supposed to do unless the earnings are
58:39 just you know through the roof you know
58:41 double what analysts were expecting and
58:43 that sort of thing
58:44 um and those are you know the guidelines
58:46 just like all technical analysis there's
58:48 I mean what's the magic of these three
58:50 gaps they tend to occur in this fashion
58:53 and people-based decisions around them
58:56 so they're things we need to be uh you
58:58 know to look at and consider important
59:00 in our analysis whereas you know some
59:02 people trade they'll tell you
59:04 successfully by looking at sunspots I'm
59:07 not going to laugh at that maybe they do
59:08 but I know that they're in the very
59:11 small majority minority maybe they're
59:13 one in a thousand people and maybe
59:15 they've just cracked the code and that's
59:16 great but there's not going to be
59:19 demand all the time when Mars goes
59:23 retrograde and that guy the astrologer
59:26 is buying and he Nails it because
59:29 there's only one or two out of a
59:30 thousand people looking at that but the
59:32 50a moving average 90 percent of the
59:35 people who look at charts are looking at
59:36 a 50-day moving average so we have to
59:38 look at it
59:39 yeah for sure
59:41 um and another good question that
59:43 somebody asked on Twitter which I think
59:45 is very important to talk about uh and
59:47 you you address it in the book as well
59:49 um what happens when the v-wop doesn't
59:51 work uh how do you deal with those type
59:54 of situations where it doesn't seem to
59:56 respect that level it undercuts it or or
59:58 different situations where you know it
60:00 it doesn't act as it should based on how
60:03 you're interpreting price action yeah
60:04 excellent question and actually uh
60:06 Richard you know prior to you getting
60:07 that question if you recall on the DM I
60:10 said hey feel free to trip me up and you
60:12 show somewhere it didn't work because it
60:14 was a lot of value to be learned in that
60:16 and the answer is kind of the same as
60:18 sometimes the 50-day moving average
60:20 doesn't work well what do you mean by
60:22 work it's not a magic buy Spot it's a
60:25 level of Interest so if the stock you
60:29 know doesn't get up through that level
60:30 and fails did it work is resistance if
60:34 it doesn't hold Above This V web that's
60:36 why we use stops and there's no perfect
60:40 system nothing's going to work all the
60:42 time you know like as I point out and I
60:45 showed you know numerous failed examples
60:47 in the book I wanted to be a book that
60:49 says hey guess what real life trading it
60:52 doesn't work all the time and this looks
60:54 like a beautiful buy at the touch of
60:56 this V web but the next day it got the
60:59 snot kicked out of it so how do you
61:01 handle those situations my preferred way
61:04 to handle those situations is to not buy
61:08 the touch of the v-wap right here but to
61:10 buy strength as it moves away from it
61:12 not to buy the touch right here but to
61:15 buy strength as it moves away from it
61:16 because it might be this touch then
61:18 you're down a dollar and a half you're
61:20 like well where's my risk management
61:22 so I like to buy strength after the
61:25 touch I like you know if I'm looking to
61:26 short this thing because it does this
61:28 well I would be looking to sell short
61:30 not as it touches that five-day moving
61:32 average or that V web I'd want to sell
61:34 short as it's failing right here and
61:36 then I know I have that lower high to
61:38 protect myself with so it's about
61:40 combining all the pieces of the puzzle
61:42 together and not just saying I'm gonna
61:44 buy blindly at the view app because to
61:47 me that's just foolish
61:49 yeah perfect
61:51 um and is there a certain number of
61:54 pullbacks to a v-wop that you would
61:57 consider buyable because often you know
61:59 when we're looking at just a simple
62:00 moving average the 50-day moving average
62:02 often the first one there's some basing
62:04 of respects that continues the trend is
62:06 it a similar process for for the anchor
62:08 view web I kind of look at them all just
62:11 uh independently because they're they're
62:13 they are subjective uh more subjective
62:16 than a 20-day or a 50-day and that's
62:18 what makes those popular is they're easy
62:20 they're on every charting platform
62:22 people have been trained on them they
62:24 use them
62:25 um whereas you know looking at this you
62:28 know again do I want to buy that first
62:30 test no I want to buy strength away from
62:33 it and what I often do is actually
62:36 put a view app and say well you know
62:39 what that was the high of the move right
62:41 there that was the high of this move so
62:43 I don't want to buy this tells me the
62:46 per the average from the highest point
62:49 from there and right here the average
62:51 point from there is now making money so
62:55 I want to buy here I want to buy here
62:57 and then even if I wanted to buy you
63:00 know this one I would buy at this point
63:04 right here
63:05 and so you know on and on it goes that I
63:10 want to buy I want to be aware of the
63:12 touches of those V webs but I also want
63:14 to have confirmation that the average
63:16 lung from the highest point paid is now
63:20 filling in a good spot and the average
63:22 short from the highest point paid is is
63:25 feeling pain and that gives them
63:27 motivation to go in and cover
63:29 perfect and there's another good
63:32 question and we you've definitely given
63:34 a few examples
63:35 um already but uh please ask Brian to
63:37 show a few setups where he's taken uh
63:40 that he's taken recently where he's
63:42 combined the five-day moving average and
63:44 the anchor view web to enter a trade uh
63:46 he's discussed two purchases in separate
63:48 videos with TL but I don't think he's
63:50 combined the two to show his overall
63:51 entry tactic especially in the current
63:54 environment sure um I mean I talk about
63:56 these in my weekend video too I don't
63:58 know if he's a subscriber but
64:00 um you know here here's uh this one is
64:01 brze I put this one on the other day
64:03 there's the anchor from the IPO the I I
64:07 just put those on there that the stock
64:09 came public at 65 a share that's just a
64:11 reminder to me
64:13 um but you know so the most recent
64:15 really relevant High big high was right
64:18 here so the buyers are back in control
64:20 from there they're also fighting this
64:23 200-day moving average right and that
64:25 provided resistance three times in a row
64:28 then it gapped above it on earnings so
64:31 let me switch the scaling over here so
64:34 we can see this and now we've got I'm
64:38 looking at the stock and you know it
64:40 pulled back and I was thinking maybe
64:42 this is a ShakeOut because it tested the
64:44 year-to-date V web and tested the 20-day
64:47 moving average in the 50-day moving
64:48 average and now it's still now that the
64:51 200 days in the way but over to the
64:54 shorter term time frame this is that Gap
64:57 and I set an anchor there it hasn't been
65:00 really great you know truthfully and you
65:02 could say here's an example of one where
65:04 it doesn't work because it's you know
65:06 maybe you buy here but you'd have to get
65:08 stopped out over here maybe you buy Here
65:10 you'd have to get stopped out over here
65:12 it worked there
65:14 um and we saw a gap lower so I was
65:16 thinking maybe this is a uh a ShakeOut
65:19 but I'm not you know what you didn't see
65:22 on the Twitter which I you know provide
65:23 this stuff for subscribers and that is
65:26 that what I'm actually looking for in
65:28 here is for the buyers to say they're in
65:31 control now it looked like from that Gap
65:33 lower
65:34 that was encouraging but we had a
65:37 declining five-day moving average so I'm
65:39 not a buyer yet what I want to see is in
65:42 the next couple days if this stock can
65:45 you know show that this was in fact a
65:49 just trying to move that around so if if
65:52 this you know if it
65:54 so that was three days ago so what this
65:57 tells me is
65:58 that was four days ago that was five
66:00 days ago if the stock is down here that
66:03 five-day moving average is still going
66:05 to decline for the next one two days
66:06 right because we're getting rid of this
66:08 data but next Tuesday when we get rid of
66:11 this data on the open and if the stock
66:14 is here maybe it's done this
66:17 and then it breaks a higher high above
66:21 that right here well that tells me now
66:23 we're above that level how does that tie
66:27 in with the anchored v-wap from here
66:29 well maybe you know that
66:32 gets a bunch of volume down here I think
66:34 I would probably buy some be aware of
66:36 this maybe sell a little bit expect it
66:38 to do this and pull back to the ryzen
66:41 five-day moving average add to it here
66:43 so it's it's all about you know as you
66:45 can see like when I draw on these charts
66:47 it's always not just about what happened
66:49 it's about how do I in Project forward
66:53 based on how these stocks typically
66:55 trade so on a different chart I have uh
66:59 you know you've seen this Richard I have
67:01 a uh let me just pull it up this is 20
67:04 days ago and this is 50 days ago and I
67:08 have those there to remind me how the
67:11 slope of the 50-day moving average might
67:13 change in three or four days if we're
67:15 getting rid of a big gap that might have
67:17 occurred you know 47 days or 53 days ago
67:20 just as we're doing here we're getting
67:23 rid of the data you know tomorrow from
67:26 this day and on Tuesday from this day
67:29 I'm sorry Monday because today's
67:31 Thursday it's so maybe it just needs a
67:34 little bit more time and it's going to
67:37 do this and time is fine there's there's
67:39 no hurry to get involved people who buy
67:42 the pullback or buy because it you know
67:44 because it's closing the gap or whatever
67:45 their reason is you know you're just
67:47 buying weakness
67:49 hoping I want evidence that this trend
67:53 has has flattened out and it didn't do
67:56 it you know it didn't get extended and
67:57 it breaks above it but instead it coils
68:00 up underneath it I can buy in here set
68:02 my stop at a real reasonable place maybe
68:05 half of it here and half of it there and
68:07 then sell a third as it breaks above
68:09 this high
68:11 and then you know rise raise those stops
68:14 up under here then under here and if it
68:17 breaks above that high so another third
68:20 and just continue the process and and
68:22 just try to have guidelines for every
68:26 scenario and always trying to anticipate
68:29 what could go right what could go wrong
68:31 how do I get out of this mess if it
68:33 becomes one right
68:35 yeah excellent and one question I want
68:37 to ask you is uh say there is an
68:39 anchored by pitch and it pushes through
68:42 it's it gets nice and tight nice and
68:43 contracted pushes above that pinch and
68:46 then retest the anchor V web and then
68:49 reconfirms show some strength after that
68:51 is that a potential entry spot or are
68:53 you always looking to get involved right
68:54 as it pushes through uh the the top of
68:58 that pinch yeah so we kind of did that
69:01 in maxn right so maxn was a recent one
69:04 it gapped up on earnings it did that you
69:07 know first couple days in there then it
69:09 shook out and on this day we knew we
69:11 could anchor a v web to that point
69:13 because it seemed like that was the end
69:15 of that pullback and then we came in and
69:17 saw that the buyers stepped up
69:20 each of these days it had the 20-day
69:24 moving average had a chance to catch up
69:25 to it and then you could take a look
69:28 then let's say at a 65-minute chart and
69:31 we can say from that you know was it
69:32 pinching between these and it was kind
69:35 of sloppy but again I don't want to be a
69:37 buyer here
69:39 because it just rallied from 21 and a
69:41 half to 26. it makes the higher low it
69:46 touches it and gets rejected on the open
69:48 that day the next day though it breaks
69:50 it and you can see it tested it here and
69:52 it tested it here so again I missed the
69:55 second trade I actually got stopped out
69:57 of this one and I don't own any of it I
69:59 bought it over here on this day and I
70:02 got out of my last third right here and
70:04 I never got back in what I should have
70:07 done was been looking at let's say a 15
70:09 minute time frame and say well from that
70:12 Peak and from this low you know and that
70:15 that was the problem is that it didn't
70:17 give a clean entry I guess you know if
70:19 you look closely at this day these are
70:21 30 minute 15 minute candles so if we
70:24 look at that let's see if we can look at
70:25 that on a five minute time frame
70:28 um and that was right here this Gap so
70:31 I'm if I was paying attention to it I
70:34 might have purchased here with a stop
70:36 below the low of the day as it got back
70:38 above the daily V web
70:40 um and you know then it makes these
70:43 lower highs so I'm just out of this one
70:45 but that was that that's off the top of
70:47 my head that's the best one I can think
70:48 of that uh recently did that and I did
70:52 not purchase so again the test came here
70:55 and then we saw the strength away from
70:57 it
70:58 yeah perfect
71:00 um and
71:02 you you may not have been screen sharing
71:05 yet I think this might be an interesting
71:06 concept to show with a chart in mind
71:08 um the anchor V web based on the
71:10 calculation it kind of changes the level
71:12 based on the time frame you're looking
71:14 at
71:15 um because it teaches a thousand if
71:16 you're on a daily chart uh it calculates
71:19 based on daily if you're on a five
71:20 minute based on the five minute uh could
71:22 you kind of um
71:23 re-emphasize why you always like to look
71:25 at the lowest granularity possible and
71:28 do you ever consider the level the daily
71:31 version of that view app is on that
71:34 lower time frame kind of similar to how
71:35 you look at the the five-day moving
71:37 average on a lower time frame using
71:39 different you know different
71:40 um period moving averages the
71:42 corresponding uh yeah yeah so if you I
71:45 mean if you look at a daily view app for
71:47 one day like you're not going to see any
71:49 value in it at all in order to get any
71:52 value from the daily view app you have
71:54 to look at it from a very shortest term
71:56 time frames now what I'll do is I'll set
71:59 it first thing in the morning like on a
72:01 one minute chart
72:03 and as the day goes on about 20 minutes
72:05 in I'll change to the uh two minute
72:08 chart and then I'll go over to the five
72:10 minute time frame and I'll just continue
72:13 to
72:14 um you know look at the different time
72:16 frames
72:18 so that the most accurate is going to be
72:21 found on the shortest time frame because
72:23 you have a larger denominator you have a
72:25 larger sample size if you have a sample
72:28 size of one
72:29 it doesn't change right so it's similar
72:32 to I forgot how I explained in the book
72:35 uh if you were looking at
72:37 uh I'll I'll come up with that example
72:40 later I can't think of it right now you
72:42 can tweet it out or something yeah what
72:44 was that you could tweet it out or
72:45 something if you okay yeah um or find
72:48 the page in the book and yeah that'll
72:50 make people want to go hunt it down and
72:51 buy the book buy the book by the way
72:54 um if you don't own it uh I'm just
72:57 talking to the audience there it's my
72:58 pitch Richard yeah there you go um so
73:01 you're always gonna you know the larger
73:02 the denominator the more accurate it's
73:04 going to be But as time progresses in
73:07 this you know longer time frame has a
73:10 bigger diameter
73:11 divisor rather
73:13 um they're going to compress together
73:15 just like you'll see you know a 20-day
73:19 moving average and a 22-day moving
73:21 average or in approximately the same
73:23 place because they're close to the same
73:25 denominator
73:27 um whereas on a 130 minute time frame
73:31 you know which is three candles per day
73:33 there's your daily view app on the Spy
73:37 you could say Well it pulled back to it
73:39 but there's you can't you can't make a
73:41 trade plan for a day trade based on that
73:43 you've got to get down into this area
73:45 and see that did it actually even touch
73:48 it there it looks like it on those three
73:50 candles but it didn't actually touch it
73:53 in real life right it's just because
73:55 you're only dividing by three then you
73:59 don't and actually at that point it was
74:01 only dividing by two because you were
74:02 only into the second 130 minute bar of
74:05 the day and that 150 minute bar that
74:08 might have occurred in the first five
74:09 minutes of that 130 bar so you're
74:11 averaging 130 minute divider divisor and
74:15 a five minute divisor it doesn't make
74:16 any sense you want to keep the divisor
74:18 as clean as possible similar to the math
74:21 of the five-day moving average that I
74:24 don't use it on a daily time frame
74:25 because it's only divided by five but if
74:28 I look at it on a 15 minute time frame
74:30 and I look in there well I've got 130
74:33 periods there's 130 15 minute periods
74:39 over the course of five days so it's the
74:41 true five day where it's uh for a daily
74:44 chart it's only going to be the true
74:46 five-day moving average at the close
74:49 everything else is four days plus an
74:51 hour four days plus three hours whatever
74:53 it might be four days plus six hours
74:55 until it's four days and six and a half
74:58 hours now we're at five days again
75:00 yeah yeah that that's that's helpful I
75:02 think I phrased my question a little bit
75:04 wrong can we go to a chart of onon on a
75:06 daily chart uh because what I think what
75:09 I was asking I I think it's a daily view
75:10 app instead of anchored view app so if
75:12 we go to a daily chart here
75:14 um so that's one day is that oh daily
75:16 okay yeah daily so say say you anchor it
75:19 from that earnings Gap up day then when
75:22 it's pulling back into that level uh in
75:24 the recent week do you ever look at what
75:27 that uh anchored view app level is on
75:30 the daily chart but look at the lower
75:32 time frame that same level so I don't
75:34 know what you know just under 29
75:36 uh 29.50 so basically yeah I want to get
75:40 down in there and see what's really
75:41 going on gotcha um because again at that
75:44 point your divisor is one two three four
75:47 five six seven eight nine ten over 12
75:49 13. that's day 13 where it hit it
75:52 whereas if you're looking at a 30 minute
75:54 time frame yeah
75:55 uh you know six uh 65 of these over the
76:00 course of five days so you know you're
76:02 13 days in your divisor is 250 or
76:06 whatever it might be so it's going to
76:09 give a much more accurate reading you're
76:11 always going to get your most accurate
76:12 reading on the shortest time frame
76:14 possible as as we started out the
76:16 conversation with what's the right
76:19 um uh uh formula is it open high low
76:23 close divided by four or is it just from
76:25 the high the true v-wap is only found
76:29 from tick data everything else is an
76:31 approximation so we want that divisor to
76:33 be as large as possible it can't be as
76:36 large is every single trade so instead
76:39 we say you know in the first five
76:41 minutes of the day I want to look at a
76:42 one minute chart with that spy if I'm
76:45 looking if I'm focused on the spine I
76:46 think there's an opportunity or some
76:48 style or Tesla gapped up and I want to
76:50 see how it's you know behaving with that
76:53 you know this could be the one minute uh
76:55 let's let's look at it in Tesla
76:57 um you know so here's today's uh
77:01 action in Tesla you know where did the
77:05 buyers
77:06 gain back control after that Gap that's
77:08 that article I wrote in 2008 chased the
77:11 Gap by the pullback well buy the
77:13 pullback here and now you're down a buck
77:15 in the first minute of the day and
77:16 you're feeling all anxious and you think
77:18 oh it's going to close the gap I'm
77:20 just going to puke it here or buy here
77:22 with a stop below the low of the day now
77:23 we have a strategy do you buy the you
77:26 know once it gets back above the high of
77:28 the day well how well did that work
77:29 realistically if you're a day trader and
77:31 you buy 183.50 and then it goes down to
77:34 one in seven 181.70
77:37 you're feeling like a fool in there I do
77:40 I do at least I you know I don't have
77:42 the faith that it's going to continue
77:43 but look at how you know this was
77:46 defended perfectly later in the day so
77:49 if you're looking to buy it later in the
77:51 day and you saw it bounce from there you
77:52 would either buy it here uh I'm sorry
77:55 um let me just redo that you would
77:57 either buy it on that touch
78:00 as it's breaking away I like breaking
78:03 away or you'd say wait a minute I want
78:06 confirmation that from that last time we
78:09 saw a high I don't want to buy it there
78:11 I want to buy it here
78:13 and set my stop under this level and
78:15 look at how that which was resistance
78:17 flipped to support so it pulls back and
78:20 will say okay well as it goes to this
78:22 point now my stop is there on the two
78:24 thirds I have left because I sold a
78:26 third on the breakout of the new high of
78:28 the day and ride it into the close and
78:31 either hold it overnight switch to a
78:33 longer time frame see if it's Justified
78:35 to hold it overnight or what might be
78:36 going on in here which Tesla is pretty
78:40 close to the year-to-date anchored V web
78:42 and uh you know buyers of kind of
78:45 defended that but we're also below a
78:47 50-day moving average so we're kind of
78:50 in no man's land on Tesla I think people
78:52 are you know wasting a lot of time in
78:53 here
78:54 yeah yeah thanks that that definitely
78:56 cleared up what my question so thank you
78:58 for that
78:59 um I think uh I don't have too much more
79:02 to talk about or were there any other
79:04 charts or examples that you personally
79:06 wanted to cover today to show the
79:08 audience or I mean if you can look at
79:11 you know the the principle again is that
79:13 you know the fractal nature of technical
79:15 analysis we've looked at every single
79:17 time frame here today we're from one
79:18 minute uh up to weekly and everything in
79:22 between pretty much 130 65 30 15 5
79:25 minute the thing is you know when it
79:28 comes to Trading
79:29 it I've been doing this for 32 years
79:31 1991 I started full time trading you
79:34 know even before then but you know full
79:36 time and and it's easy for me to flip
79:38 through these and make it look easy but
79:41 it comes with Decades of experience and
79:44 My Chosen time frame I'm very I have
79:48 strong conviction in what my time frame
79:49 is especially for this market now if we
79:52 enter a new bull market I'm going to try
79:54 to stretch my time frame if the market
79:55 allows me to and that's the difference
79:58 is I'm not going to say now I'm a
79:59 long-term investor my thing it will be
80:02 let's see what the market allows me to
80:05 hold it's not up to me to decide well
80:07 now I you know and I think the Market's
80:08 in a stage two uptrend so I'm going to
80:10 buy stocks and sell them in three months
80:12 that's you know that's foolish right
80:14 it's just as foolish as saying you know
80:16 my stop is 10 away the Stop and that
80:19 that's what I maybe would want to uh say
80:22 is you know the definition of trend is
80:24 always where my stop is so that if I
80:27 look at isce and I'm long at 27 well my
80:31 definition of trend is higher highs and
80:33 higher lows so my stop always goes on a
80:35 long underneath the most recent and
80:38 relevant higher low for my time frame
80:41 because if that higher low is broken so
80:44 tomorrow if if this stock
80:47 rallies like this tomorrow morning I'm
80:49 going to raise my stop under this low
80:51 because now I you know especially if it
80:53 gets back above this little v-wap right
80:56 so I know that the buyers are back in
80:58 control for my time frame this is the
81:00 most recent relevant higher low it's not
81:03 about I'm going to set it to standard
81:05 deviations away I'm not going to set it
81:06 below a moving average or the week to
81:08 date volume weighted average price or
81:10 any of that stuff it's about you know
81:13 listening to the the definition of Trend
81:15 in the market and so that even if I buy
81:18 it right here my stop is under here it's
81:21 not under the five-day moving average
81:22 it's always based on trend is you know
81:25 for my time frame and a lot of people
81:27 will get confused like because I'm
81:29 flipping back and forth between all
81:31 these time frames a question I get a lot
81:33 is well what's the most important time
81:35 frame
81:36 and my answer is truly all of them
81:38 because they create a picture it's like
81:41 asking Van Gogh what's the most
81:43 important color to paint with it's it's
81:46 not green it's not blue it's not yellow
81:48 it's it's how they mix together it's how
81:52 they work with each other it's not black
81:55 and white we're not doing black and
81:56 white art here this is full color living
81:59 breathing organism that we're dealing
82:02 with the stock market and it's the
82:04 compilation of all the hopes desires uh
82:08 and you know actions of all the
82:11 participants so if we can say what
82:13 motivates the biggest participants most
82:16 often 50-day moving averages anchored
82:20 v-waps multiple time frames great we
82:23 don't need and there's no reason that
82:25 you know I would never trash any
82:27 oscillator or indicator that you find
82:30 useful but you can draw some pretty
82:33 wacky stuff on these charts and if if it
82:36 fine if it's value to you use it you
82:38 might look at this and say you know that
82:41 anchor view app it's all in that guy's
82:43 head that you know he's he's he it's
82:45 weird I don't get it don't use it you
82:48 use the stuff that makes sense to you
82:50 there's no following one person and
82:52 saying here's what I should do because I
82:54 look up to that person because I have
82:56 this many Twitter followers or they want
82:58 a trading contest because you're never
83:00 going to be able to mimic somebody
83:01 else's trades it's about putting it all
83:03 together and finding your own style
83:06 yeah I think that's extremely well said
83:08 and I like that metaphor over there with
83:10 with painting I think you came up with a
83:11 good one there I just came up with it I
83:13 know it again that was great that was
83:14 great um for for people who do want to
83:17 dive deeper into anchor V web
83:20 um what advice do you have them about
83:22 where to get started and and you know
83:24 how to how to accelerate their learning
83:26 curve as much as possible with regards
83:28 to that indicator
83:29 I I think that you really want a tool
83:32 like tc2000 or um you know another good
83:35 one is is trading View for the simple
83:37 reason that some of the other ones that
83:39 offer it uh what what you want to do is
83:41 you want to play around with it okay you
83:44 don't want to right click type the date
83:46 and the time in and maybe get that wrong
83:48 and retype it in like you have to do on
83:50 thinkorswim
83:51 um you know people always say well
83:52 when's think or Swim gonna get it well
83:54 people have been asking for the last
83:56 seven years to get it and you know just
83:58 go get another trade you know charting
84:01 platform that has the tool but you want
84:03 to get one that says let's say you added
84:05 it there and say whoops I meant to add
84:07 it to this point where I can drag it and
84:10 drop it back or if I hit this repeat
84:12 button I can just go in click that
84:15 anchor and say I want to see how it
84:16 acted from there and from there and from
84:18 there and there and you know you can go
84:20 crazy with these obviously but if you
84:23 really study it there's value in some of
84:25 these right and and find out what the
84:28 value is to you read my book buy it on
84:32 Amazon buy it on Apple or Google books
84:35 or wherever else it's available and you
84:38 know learn the basics learn why
84:41 it's valued by institutions and why big
84:44 players trade around these levels
84:48 learn that's that psychology and then
84:51 watch it in action and decide whether it
84:53 makes sense and start anchoring from the
84:56 key points now some people will say you
84:59 know they'll they'll they'll say Brian I
85:01 entered the stock at 27 so I set an
85:04 anchor there they're like well
85:07 you're the only person who cares about
85:09 that level
85:10 that's important to you that's your in
85:13 in the whole anchor is based around
85:15 Daniel Kahneman and the anchoring bias
85:18 right what's the most important price to
85:21 me is it the close of the day no it's
85:22 where is the price right now in relation
85:25 to where I bought it so that's not
85:28 important to anyone except for you what
85:31 you want to say is
85:32 this was a big event there was a
85:35 structural shift in the supply and
85:37 demand that caused an imbalance the
85:40 buyers regained controls it made this
85:42 higher high right here so that's where
85:44 you want to buy it somewhere in there
85:45 and if that happened to be your entry
85:47 great I mean but nobody nobody cares
85:50 except you we had this little Gap lower
85:52 so that's important and it was defended
85:54 here just uh you know this morning
85:56 yesterday afternoon this morning it had
85:58 a nice bounce away and now if you're a
86:00 day trader this is important so maybe
86:02 you sold it at the end of the day
86:03 because it was fighting with that and
86:05 tomorrow if you're a day trader and you
86:07 want to get involved or even if you're a
86:09 swing Trader and you're like I
86:11 missed this one it's a little bit
86:12 extended but I want to buy it above this
86:14 this level here
86:16 um that's where the buyers take control
86:17 based on that V web and have my stop
86:20 under here
86:21 that's okay to get involved in the stock
86:23 that's you know may arguably extended on
86:26 the on the daily time frame after a five
86:28 six day move but as long as you have
86:30 your your tight stop and you know where
86:32 you're going to get out
86:34 there's nothing wrong with that but
86:36 yeah
86:38 yeah perfect
86:40 um Brian this has been fantastic I
86:42 personally learned a lot I'm sure
86:43 everybody watching did as well
86:46 um the link to this your new book will
86:48 be in in the description
86:50 um so definitely go ahead and check that
86:51 out everybody
86:52 um are there any other uh places that I
86:55 should mention uh where people can reach
86:57 out to you I'll have your Twitter down
86:58 there as well uh and your website but is
87:00 there anywhere else if people want to
87:02 learn more from you directly uh that
87:03 they should check out yeah I think
87:05 Twitter you know anything I do out there
87:07 that's not for Alpha Trend subscribers I
87:08 put on Twitter I mean I put my YouTube
87:10 thing on there so you don't really have
87:11 to go to YouTube
87:13 um Twitter's the the best place to to go
87:16 yeah excellent uh well thanks again
87:19 Brian for your time and and awesome
87:21 explanations and if you want even more
87:22 Brian uh I'll also link below uh your
87:25 presentation from the last chairline
87:27 conference uh so I thought that was a
87:29 fantastic explanation once again of like
87:30 using multiple time frames to analyze
87:32 the stock so uh go ahead and check that
87:34 out uh other than that I hope you guys
87:36 all enjoyed if you did go ahead and
87:37 leave a like down below we'd really
87:39 appreciate it and of course subscribe if
87:40 you want to see more videos just like
87:41 this one uh later on so thanks so much
87:43 and take care thanks Richard
87:52 foreign
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