How to QUICKLY Scan & Trade QULLAMAGGIE PERFECT High ADR% Setups!

in seven clicks can I identify quala Maggi star five star setups that have high ADR percentages and also impressive relative strength rankings here we go

I'm just going to count the clicks click number one click number two click number three click number four click number five click number six and then finally

click number seven so this is then going to display results of stocks that have very high average daily range percentages impressive relative strength and we're looking for the stock to have made a big move pulling into moving

averages and then starting to build some form of flag type pattern and variations of that so here you go side by side right here the moving average is the 21 SMA so we can see the stock has pulled in starting to bounce if I want to put

this in a watch list I just click here then I can put it into various watch list ping that straight into tc2000 trading view whatever is your preferred trading platform aot stocks made a huge move here okay this is maybe one that I

want to be watching ping it into a watch list just like that I've got psse okay stocks made a big move here about $3 half up to $10 building could be some form of flag Daris box there same with clean spark here okay stocks made a nice

move here look at the volume coming through as well starting to base okay these are ones that I want to be having in my watch list how to quickly scan for quala Maggi High average daily range

percentage setups with relative shm so I was just taking you through there how quickly and easy it is to scan for these type of setups using my custom built stock screener what I'm going to do in

the rest of this video is explain to you and teach you what is a perfect setup why does a high ADR percentage matter so much and what is the importance of relative strength Market Smith are

today's video sponsor there is a discount to trial available in the comments below if you are interested okay this video is going to be split into four main parts and we've already done part number one okay how to quickly scan for five star setups I was just

showing you how to do that on my custom stock screen however you may not know what is a five-star setup what does it look like what's the importance of a high 20-day average daily range percentage why does relative strength matter don't worry next three parts of

the video are going to explain it so we're going to do setup pattern recognition I'm going to explain why High ADR percentage matters and why relative strength matters let's just get straight into some charts so we're going to be going through some charts in

chronological order pretty much from 1980 up to the present day so I can illustrate these points so here we go we've got Foot Locker on the top and lined up below we've got the S&P 500 now there's four breakout setups on this

chart each of them I think are pretty good some are a little bit better than the others and if you don't know why these are good breakout setups hopefully by the end of the video you will so we take a look at Foot Locker here okay it's in a nice uptrend there's some blue dots down here what does this mean this

is the relative strength line not the RSI relative strength line it's a free tool search my name and trading view you'll find it I like stocks with these blue dots 52e highs in this instance here versus the S&P 500 it's

configurable you can change in the settings if you're trading stocks say in different indexes but you can see we've lined these up like this let's just talk about breakout number one okay you've been watching a couple of YouTube videos and you're like wow I heard that Daris

boxes Flags ascending triangles penants wedges they're they're really good to trade right I want a stock with relative strength I want a stock with volume and you can see it sets up here perfectly like perfectly but before it closes

below it's 21 day MAA it only goes up 133% and the S&P 500 in that period goes up about 7 and a half% and you're kind of thinking what when I when I buy a flag when I buy a pennant a wedge isn't

it supposed to go up 50% 100% 150 250 why did this stock only go up 13% and then over here it happens again right it sets up really nicely gets really tight on the 50 the volume dries up for it closes blow it's 21 there goes

up 13 12% okay not bad but here the S&P in the same time's gone up 92% why is the stock pretty much in both cases only gone up 4% more than the indexes in the same time period it's all

to do with the character of the stock and the average daily range percentage this is why we want to look for stocks with high ADR percentages on a 20day basis so this is all going to start

making sense so here's Nvidia I bought Nvidia early this year on this bar here as it was coming through let me go and get my laser pointer there we go okay on this day here now nvidia's 20day ADR percentage at this point here where I call this a trigger bar so those of you

who watch channel will know trigger bar is gap down ver by shake out demand okay so it's putting in this trigger bar sitting on the 1021 day EMA okay the key is down here you can see the 52 we highs in video huge earnings huge sales I'm

going to talk about fundamentals in the final slide of this presentation they are important as much as you may not want to think they're important and fundamentals are important obviously heavily involved in AI as well so the

ADR percentage it's not massive now we'll get on to what is massive a little bit later on in the video it's 2.84% relative to the NASDAQ 100 which is a pretty applicable index if you ask me

the 20-day ADR percentage of the NASDAQ was 1.19% so Nvidia is twice that of the applic the applicable index being the NASDAQ 100 now why is that important here's the hypothesize here's the

reasoning behind it if the NASDAQ goes up 10% so let's say the nasdaq's the nasdaq's 20-day ADR percentage is a percent okay and the stocks 20day ADR percentage is 2% so it's twice that of

the applicable index well if the index goes up 10% % it's reasonable to expect and conclude the stock could go up twice that of the index so if the index goes up 10% the stock could go up 20% if the

ADR 20day ADR percentage is say three times or four times that of the index the stock in that instance there could go up 30 40% if the index goes up 10% makes sense but it doesn't tend to be

linear in nature it tends to be exponential in nature so this point here nvidia's first close below the 21 Day EMA 56% whereas a NASDAQ 100 goes up 15% what do you want to be involved in

Nvidia or the index here's one this is airm this a little bit more recent now I was targeting it through here cup and handle type pattern nice high ADR of 7.42% I bulled this one up because it gapped up slightly I canceled it I shouldn't have done that okay that was a

mistake on my part for canceling it because but anyway the principle Remains the Same on this day here okay when you get the ShakeOut to M out of the 10day AMA inside bar coming through 52 we Highs are there the 20-day average daily

range percentage of a firm is 7.42 okay the index is not even 1% the spies is 0 .93 so remember what we were just saying there okay in terms of a

firm is basically it's over seven times eight times quicker than the index so if the index could go up 10% it's reasonable to expect this stock here could go up 70 or 80% and again remember

it doesn't tend to be linear in nature it tends to be exponential in nature so firm is currently up 76% while the spies is up around about 32% this is the

importance of ADR focusing on high on high average daily range percentage stocks I was just showing you in the screen and you can configure that you can change it do all sorts of weird and wonderful things with it to dial it in and focus on the type of stocks you want

to focus on but this is the power of ADR percentages High ADR percentages okay their moves can be absolutely leveraged to that of the indexes so let's play

this forward so now what now what I'm going to do I got a qu a couple of quotes from quala Maggi and I got a couple of a couple of charts as well just to dial it in and start helping you with your pattern recognition because

there's no point you screening for socks if you don't know what you're screen screening for You' got to know what does a high quality setup look like before you even start screening for it okay otherwise you got like you you've got keys to a car but you don't know how to drive the car you need to know how to

drive the car okay so here we go this is a sevenstar setup on a fstar scale what does that mean okay it means it's absolutely ridiculous it's one of the best setups you will ever see if you don't know why this is a fantastic setup

okay you are going to know by the end of this video hopefully look at the stock look at the move that the stock has made staying above the 10day EMA so the character of the stock I want to add this the character of the stock is so so

so important you do not want a stock that goes from A to B and chops around all over the place there's no point there's no point cuz from a trade management standpoint it's going to be awful so this stock here it goes from $2

to about $950 and it doesn't want to close below it 10day EMA you don't want a stock that's doing this dropping around all over the place because in your trade management you're probably going to be riding one or more key

moving averages so if the character of the stock is such that it just chops around all over the place it's going to be a nightmare to manage so we want to see prebase nice smooth Trends to the upside like that then in the base what are we looking for well we're looking

for a stock that respects its key moving averages preferably it holds either the 10day or the 21 Day if it's a much bigger base maybe the 50 is going to be there which is the purple line on my chart but you see how it bounces off the

10 bounces off the 10 shake out to mantel to the 21 and then tight tight tight tight tight the volume dries up so big big move go sideways builds a tight range look how tight it gets breaks out

and boom memorize this so that is the setup there okay this is what happened afterwards so this is why I'm doing the charts like this so you can pause the video you can dial it in and just it's pattern recognition like so much of

trading is being patient like 99.9% of the trading you're not actually trading you are just sitting patiently waiting for the stock to get in a buyable position as per your criteria but you got to know what am I looking for what

is the pattern recognition so it's about having these kind of stocks on your radar and then just waiting for them to set up as per your criteria hopefully you have criteria so this one right here quote perfect breakout right here here

six-star setup on a five-star scale what does that mean it means it's a ridiculously good setup it's off the scale it's crazy good it's really really good plus the ADR percentage of the stock here was like 12 a half% I think I think you're going to see this one a

little bit later when we get into some of the 2020 ones okay so positive earnings reaction okay huge move up here pulls in what moving averages is the stock holding 10day here 21 here 21 here

21 here tight low volume inside bar I call these trigger bars okay that's before this is after then the stock Goes Up 2 26% for it closes below it's 10 day MAA Do Not Mess those ones up so

remember that I was talking about with pr2s the move pre- base is really important we don't want stocks that chop around all over the place we want smooth movers why from a trade management standpoint going to be so so so much

easier AMD I think I've got five perfect setups so this one here this is a six-star setup on a five-star scale you've got to memorize this you don't get many of these look how tight it is

bounces perfectly off the 20day which is the blue line but I use the 21-day EMA then gets really really tight so those of you who have watched channel for a little while will recognize this bar and go at in the middle of the base gap down

reversal bar gap down reverse bar the pr close here gaps down opens here pushes up and then starts tightening around the 10day EMA inside bar look how the volume drives up interesting go back to Nova

novax 1021 inside bar volume dries up interesting what does that mean there is sweet fa in terms of Supply coming through this is a very very very good setup especially if it's showing a lot of relative strength and has a high

20-day average daily range percentage so that's the setup there that's what happens afterwards this one here kodx or Cod kodx um I was trying to kodex I was thinking about the camera company codx

is a ticker of this one here we go this is a six-star setup on a festar scale this a quote from K Magi makes a big move it gets Tighter and Tighter build tyos goes from surfing the 10day moving average to surfing the 20-day moving

average so see here how it's surfing the 10day I use EMAs on my charts so here this is the 10day okay see how it's surfing the 10day and then the 21 catches up and it starts bouncing off

the 21 has a range that gets Tighter and Tighter has a really narrow range day before the breakout inside bar low volume sitting around what moving average interesting right this is the

repeatable nature this is the deliberate practice point of studying stocks like this it breaks out on higher volume that's the perfect setup so when you're doing your scanning what do you think

you're looking for makes sense codax here you go now this stock here goes up 588 in five sessions I'm not saying you're going to top top ticket but by the end of the session kodak's here I am actually going to show you this one and

show you the ADR percentage of of this stock here and then it will start making sense like why is this stock able to go up 588 in five sessions whereas an apple and Amazon and Microsoft has no chance

it's to do with the character of stock it's to do with the ADR percentage so moves like this are not going to happen in a stock that has an ADR percentage of 2% it's not it's it's just not going to

happen like it it may happen but there is a my my minute possibility they are much likely going to have high ADR percentages Celsius here this is the final perfect setup then we'll get into

a couple of my so makes a big move surfs on the 10 and 21 10 and 20 moving averages start building higher lows off the 20day takes out this tight range this is a nice five-star High tight flag

so see how it's trending up here note that the stock is not it's not chopping look at look at my cursor okay look at this it's not doing that it's not chopping around all over the place it's just trending nicely about the moving

averages bounce off the 10 holds around the 20 holds around the 20 nearly back to back well it is back to back inside bars and look how the volume drives up and there's a 52 we high in the base see this on the relative strength Line This

is subtle but it's so important there's a 52 we high on the relative strength line free to all in trading view search my name you will find it so RS 52 week high in the base signals what extreme

strength so not every setup is created equal what do we want we want leading stocks of the day ideally they have triple digit earnings triple digit sales massive of estimates involved in new areas of of kind of growth and

Innovation like artificial intelligence then they're building Flags wedges penants ascending triangles all of that good stuff okay they're hitting 52 we highs they have really high ADR percentages relative to the major

indexes ideally two times well more than two times three times four times five times six times that of the major indexes if you keep in your head that the major indexes if you combine the spies and the cues the average is around

about a percent a percent and a quarter if you keep that figure in your head so for me I'm looking for stocks that ideally have minimum ADR percentages of 3 4% the real juicy ones are more likely

to have kind of 5 6 8 potentially 10% and greater obviously the higher the ADR percentage the kind of rarer it uh it gets so let's go through a couple okay when I say a couple how many have I got

for you I know around about 40 around about 40 or so okay so what I'm going to do is I'm going to take you on a little journey here so by the end of this video I really want you to get a couple of things from this okay I really want you

to understand what is a ridiculously good setup now I'm primarily here in this in the next kind of 40 slides or so but I'm going to take you through setups from the 1980s to the present day I'm

mainly going to focus on flags variations of flags ascending triangles and stuff like that okay I'm not going to go kind of like here's a cup and handle here's a vcp here's where here's a p most of them are going to be Flags

sending triangles penants okay pretty much darst boxes as well okay so let's start here this is C tick a c Kirby Corporation in 1981 and we've got it loaded up or lined up above the Dow

Jones and Industrial Average this stock here okay before it closes BLS 21 day goes up 42% the Dow Jones during that time goes up 4% okay interesting what was this stock doing so let's just talk about relative strength okay because

it's a term it gets kind of thrown around relative stocks got relative most people don't even know what it means okay this is what relative strength means so you can see here the relative strength line is in a nice uptrend it's hitting 52 we Ka that's really really

really good but let's now take a look at the price action so this is the price action of the stock relative to the price action of the major indexes and we're just going to use the Dow Jes for this purpose here okay back in the 1980s

so here we go Kirby Corporation see this uptrend here look at this time from this will be January 19th to like 1st of December look at this period in time here what is the stock doing it's

trending above all key moving averages really nicely on volume hitting 52 week highes in the latter part of that Trend what is the applicable major index doing it's in a downtrend it's doing the

opposite it's basically below all key moving averages other than the 200 day making lower low lower high lower low this is relative strength the index is making lower lows and lower highs while

the stock is trending up the stock here is saying I'm a really really strong stock if you know what you're looking for you know this is a really strong stock and then what are we looking for this is a really nice rally pre- base

remember it's not chopping around all over the place and it's showing ridiculous relative strength then we're looking for a base now for the purpose of this video most of them are going to be variations of Flags Okay so what does

it build it builds a flag with low volatility holding above the 10day volume dries up 52 we highs in the base remember when I was just shouting at you a couple of minutes ago I think it was on the Celsius chart where Celsius hits

a 52 we high in the base as that it's an extreme sign of relative strength Okay C scker CeX is doing this in 1990 it's it's a Timeless principle relative strength is timeless High ADR

percentages is timeless these repeatable chart patterns are Timeless as you're going to find out and then for me whenever I'm like stopping this on 95% of these are going to be trigger bars around one or more key moving averages

if you don't know what trigger bars are go and watch the blueprint video on the channel now the 20-day ADR percentage of kex here is 3.81% relative to the index is about twice that so it's reasonable

to conclude that well if the Dow Jones Goes Up 10% this stock here could go up 20% but again when you have a stock that has a high ADR percentage in displaying fantastic relative strength it can go up

much more than that okay it's not necessarily linear it's just a way to kind of think about it and why how the ADR is important now we go to HOV this

is in the 19 1986 so here we have the Dow Jones now the 20-day average daily range percentage of the Dow Jones is 1.31% with HOV the 20-day ADR percentage

is 4.8% now I'm not saying you would have top ticked this but in 13 sessions the stock has gone up 62% the Dow Jones has gone up 3.65% look at the relative strength look

at the trend prebase look how it's set up what are it's really really I cannot stress this enough okay do things on a really specific basis get so specific

you're like nerding out on it right you have to go you don't want to go horizontal in terms of like your knowledge and your skill you want to go vertical you really really want to study

the stocks in such a deliberate manner to go okay how on Earth did this stock and 100 stocks and a thousand stocks go from point A to point B what are the things I'm noticing how do they set up

before they break out of the base what do they tend to do in the base what do they do pre-b what do you see here nice rally not chopping around all over the place 52 we highs again good volume coming through tightness in price in the

base low volume what is tightness in price and low volume tell you it tells you there's not much Supply there's not much selling pressure then look at the tightness that happened before the breakout this links back to the well

it's a Timeless principle but one that Toby Kel talks about as well of contraction and expansion often times in the vast vast majority of cases before you see expansion so that can be

expansion and price to the upside expansion and price the downside you will see contraction it's the minini point right volatility contraction pattern volatility contracts invariably

before volatility expands contraction expansion so you'll commonly see this tightness in price before breakout and then pay attention to around what moving

averages where do you see it this one here this is e this is epac 1988 what do we see we see a really nice uptrend are these chart panss I know you've only seen about three of them so are they

looking familiar in some way ways are you noticing common characteristics look at the rally pre- Bas it's not chopping around it rides its 10day EMA look at the 52 e High look at the spikes of

volume look at the tightness on a relative basis of the price action and then it puts in what I call a trigger bar often times that is a tight low volume inside bar around one or more key moving averages for these kind of setups the most important two moving averages

are going to be the 10day EMA the black line and the 21 Day EMA the Blue Line you can see it then happens over here as well so you can see the ADR percentage 2.4 4% now it's around about the same as the Dow jams now why have I included

this cuz aren't you I thought you just going to talk about high ADR percentage stocks see this stock here see the relative strength okay look at what the Dow is below its 200 it's below its 100 it's just like chopping around here

maybe it's basing but just chopping around it's not going anywhere it's in a long-term downtrend it's below it's 200 but yet this stock here with around the same ADR percentage this is the relative strength point so this is why you want

to link multiple things because even though the stock doesn't have the highest ADR percentage it's showing impeccable very strong relative strength versus an applicable major index being

the Dow Jones next one here bit quicker stock here lnn 20day ADR percentage here at this breakout tight low volume inside bar sitting on one moving average 10 day M interesting are you starting to see

common characteristics in terms of a flag a Daris box type panel here 3.98% relative to the Dow Jones of 1.49% 1 a half% 1988 note the rally

pre-b base it's not chopping around all over the place it's staying above all the moving averages then as it starts the base bounce off the 10 holds around the 10 inside bar where does it then

start setting up this one here sh YF 1991 so this stock here note the rally prebase note what the basing pattern looks like what are the common characteristics you see in terms of the

bases is it resembling a flag a Daris blocks a pennant a wedge a cup and handle what do you see what do you see time and time and time again before these stocks then break out and go on

huge runs so you need to study things there's four parts to every single trade identify control mitigate optimize it's really those four parts now there's a lot of subsections that go into it but you really want to focus your studies on

those how do I identify a very high quality setup now there's a lot of things that go into that how do I initially control the risk create asymmetric reversible trades how do I mitigate the risk how do I then try and

ride intermediate time Trends really really key this one hit much quicker stock 5.41% 20day ADR as it's building here and then what bar you notice happen before the breakout tight low volume

inside bar sitting on the 10day EMA interesting next one here 1993 so what do we see BBY stock makes a good move up here going from this will be split adjusted for but from around about a

dollar to do 40ish do30 something like that look at the volume coming through on a couple of these bars 52 we High pre-based good then look at the tightness and then you get a tight bar

sitting on the 10day EMA ADR 20day ADR 3% that of the Dow Jones is 0.61% it's about 5 five times quicker than the major index at this time here now before

the stock closes below its 21-day EMA here it goes up 72% and the Dow Jones didn't go anywhere it's flat a that was a dramatic pause wasn't it a so big move here so sometimes what

what can kind of spark this big move is a cast it could be they've just blown earnings out of the water raised estimates a ward of a government contract FDA approval for a new revolutionary drug if it's a biotch or

something like that okay so this here something happens there's a catalyst something happens here to spark this stock into life it goes from that's probably going to be about $3 up to $7 or so it's a double hit and then it

starts basing and then as you see this base so before this stock then goes up around about 100% in 10 bars 10 sessions you want to know how on Earth did that

stock go up 100% in 10 sessions what did it do and then go look at 100 other ones that go up 100% in 10 sessions do you see any commonalities that is what you're studying

okay it's not what some guy on CNBC or financial media it what what are the stocks doing how do they move what do they do how do they set up what are the kind of nuances that you notice you want

to do this in such a deliberate manner you want to go so deep in terms of your knowledge base in terms of studying the action of stocks specifically what do they do how do they move then maybe is

there a reason for why they're moving potentially it's a catalyst like blowing earnings out the water or something like that then where is a stop finding sport 10day 21 day in price tight pretty much low volume inside bar sitting on the 10

to 21 day EMA now I talk about here I'm not going to go too much into it but four parts of a trade right identify control mitigate optimize for me if a stock gets extended from the 10day I will go lower the bar Lower the bar

Lower the bar with all or part of my position with a stop loss so here big Supply shoot price is trying to go up sell is bringing it back down potentially indicating a change of trend

lower the bar Lower the bar Lower the bar okay it's not always 1020 one are going to be best okay you want to have a toolkit for how you're thinking through these problems this one here axdx in

1996 stock here moving up now a bit of a bigger base so you start getting the 50 days it's holding above it tightening building the higher lows and then here the 20-day ADR percentage is 3.88%

before the stock then goes up 265 in 12 sessions again I'm not saying you're going to top ticket but I'm just trying to illustrate the point that if you can focus on strong relative strength stocks that have high ADR centages and are

Contracting like this it's so so so a key expansion this is all expansion will follow a period of contraction that's my belief this one here eBay back in 1998

so look at the move prebase look at the volume coming through look at the 52e highs it tightens tight pretty much low volume inside bar on what moving average the 10day EMA before eBay closes below

it's 21-day EMA now we're getting some of the juice coming through okay before it closes below its 21-day EMA it goes up

175% 20-day ADR percentage was 9 and 1/4% the S&P was 1.8% at that time the S&P during that time goes up 9% whereas

the stock goes up 175% I know where I want to be this one here dish this is in1 1999 so this is more of a cup and handle type B okay so here's the cup here's the handle but kind of some Daris box action going on in the handle note

the 52e highs as the stock is building out its handle Cy Daris box and then here it goes up 85% in 17 bars remember what I said if it starts getting low the bar low the bar Lower the bar the ADR 4

1/2% 20day ADR and the spies at that time about 1 a 12% okay really really important stay focused on the higher ADR percentage stocks1 1999 again so the stock makes a

big look at the volume see how sticking out Something's Happened Here someone with a lot of cash is buying a lot do we know there reasons why maybe you can go and find a cataly maybe it's earnings this here do look to be earnings but

maybe there's an obvious Catalyst or maybe there's no apparent Catalyst but you see this change of character coming through and then the stock starts basing 10day 10day 10day shake out demand ta tight tight tight tight tight look how the volume drives up this is what

accumulation this is what absorption of Supply looks like for it closes blurs 21 day ma 156% 20-day ADR percentage here 6.3% so what I like doing is I like looking for the stocks that have higher

ADR percentages and then I'm looking for optimal bases Flags vcps when Star whatever it may be right but then I'm looking for certain candlesticks to occur around certain moving averages most commonly that's going to be the 10

then 20 one day and then I'm looking for variations of what I call trigger bars gap down reverse bars shake out Dem man house and then when I'm planning the trade out I'm trying to keep the initial risk relative to the 20-day ADR

percentage of the stock favorable I like it to be less than it so it's a good metric to gauge initial risk up now if the stock has a 20day ADR percentage of 20% I'm going to have a 20% initial stop loss anything over 5% I've really got to

justify and think like this is a ridiculously ridiculously good setup quom here before the stock goes up 99% and 15 bars and again I'm not saying you're going to top ticket but I'm trying to illustrate the point of

relative strength and high 20-day ADR percent 6.16% relative to the spies 1 and a qu% okay spies goes up about 4% qualcom here goes up 199 where do you want to be where do you want to be note

what happens prebase look at the rally look at the 52 car look at the volume look at the tightness in Price look at the bounce off the 10 off the 10 off the 10 off the 10 off the 10 look how the volume drives up low volume tight inside

bar before you start getting the breakout this one here this is this is s so you see here pre- earnings someone's maybe someone knows something maybe no maybe maybe not we can't go ask still on

one but it moves up here starts building a flag type pattern in here volume generally dries up and then it's pretty much a tight low volume inside bar but not quite the low volume but a tight

inside bar off the 10day MAA 20-day ADR 3.79% versus the spies 1.82% in that time before the stock closes blow it's 21 day EMA goes up 66% the spies down 5%

focus on leadership when this stock here is setting up the spies is still below its 200 day moving average nhtc so if you look at this stock here it has a 20-day ADR percent

is of 5.44% note the tightness and price that you seeing in generally the low volume before the stock expands to the upside look at the bouts of volume coming through in here in here this is a pretty good setup in here look at the bouts of volume coming through on this

rally look at the 52 are there common things that you're noticing here this one here this is clf so look at the index it's it's just not really going anywhere like it's kind of sideways to down in this period but what C left and

okay powered up here pull back in gap down reverse bar off the 10 and then tight tight tight tight tight into the 10 the volume dries up tightness in price low relative volume in a stock showing relative strength around key moving averages indicates a little

Supply coming to the market stock then goes up 43% for it closes below 21 whereas the S&P goes up 7 and a half% in that time period where I want to be travel zoo nice high ADR here we go nice

high ADR 20day ADR percentage 8.79% for it closes convin very convincing clear change of character here okay clear clear clear change of character a lot of Supply opens on the high goes out on the

low volume pops change character Run Run for the exis 8.79% when this stock here look at the tightness in price holds the 50 little bounce off the 50 here gap down reverse bar off the 50 tight TI

tight TI tight volume dries up tightness and price low relative volume very much Supply coming to the market Stock's been showing relative sh look at the 52 we highs and then it breaks out through the high of this little low pivot on the

earnings and the S&P 500 is on its lows so the S&P 500 literally puts in its low here as a stock starts breaking out focus on the leadership stocks this

stock here goes up 113% while during the same time period the S&P goes up about 2 and 3/4% bl DP so this is 2006 so okay

reaction pretty good reaction coming through to the earnings holds the 21 starts basing tightness in price low volume and then this stock here powers out look at the ADR 3.82% relative to

the Spy 0.78% Celsius 2009 so the index basically just going sideways not really going anywhere or is Celsius builds a base in here really nice B this is a

ridiculously good setup in here really really really good builds another base see how holds the 21 breaks out here poers High goes up 27% in 15 bars I'm not saying you're going to top ticket

but you need to understand in a very deliberate manner what does a stock do before it goes up 250% in 15 sessions what does it do study a 100 of them and you'll probably identify similar

characteristics good you want to build setups around that 20day R percentage 7% spies 1.79% big big big difference GV G

cvgi that's my dyslexia paying up there so look how the stock moves up here stays above all the key moving averages pulls in bounce off the 21 tight tight tight look how the volume dries up 20day

adrs centes 8.71% versus the spies on the same day of 1.46% quicker stocks it's really good bzh be a hom look at the uptrend see how

it's staying above the moving averages pulls in flag Daris box type pattern bounce off the 21 tight tight tight tight tight stock goes up 54% in five bars I'm not saying you're going to top ticket but I'm trying to illustrate the

importance of looking for highly R percentage stocks stocks displaying a lot of relative shm constructive basing type patterns periods of contraction because then expansion invariably

follows next one here mvmi so this one here stock in a nice uptrend now a bit of a bigger base bounce off the 50 off the 50 off the 50 off the 50 tight low

volume inside bar 20day ADR percentage is 8.38% so why I quite like these tight low volume inside bars in these optimal bases sitting around one or more key moving averages is I can try and create

a very asymmetric Reser World Trade so on a stock like this it's got an ADR percentage of like 8% if it puts in this tight low volume inside bar maybe my initial stop loss could be 2% 3%

something like that maybe four maybe up to like 4% so therefore I'm half initial stop loss half the 20day 8r percentage of the stock can look very very appealing really appealing so this stock

here before it closes below its 10day EMA convincingly up here 93% Market S&P 4% Market's gone nowhere CPE 20day ADR percentage 6 78% look at

the tightness what moving average are you seeing the tightness on before this stock starts breaking out okay so you want to think about things from okay where is the best place to be entering when you've gone and studied 100 thousand of these kind of stocks and

setups you then want to go right okay I Now understand what these stocks are doing I understand it's a chart pattern or chart patterns that resemble these

you decide what they are for me it's kind of flags penants wedges vcp right those kind of things and then you want to go okay now I know that what moving averages do I want to use as a reference point they're not magical it's just a

reference point the deliberate practice of things where you go okay it's a reference point around here when I start to see this basing pattern high percentage stock good good volume coming through nice rally volumes then drying

up RS line looks solid what am I expecting to see around certain moving averages I'm expecting it to hold around the 10 hold around the 20 hold around the 50 show that institutions large operators are supporting the stock where

I'd like to see them supporting the stock and then before it breaks out what am I looking for how do I then create an asymmetric resusable trade around that how do I try and risk a dollar to make a

proverbial 5 10 15 20 $25 so 10 times my initial risk 15 times 20 times my initial risk that's then the point of like these trigger bars right where they get really really tight

relative to the ADR percentage and sometimes as well you get gap down RSE bars and shake out to mantels that can provide favorable R versible trade sometimes you don't always get these really tight bars sometimes you got to look for alternative alternative entries

but I'm showing you here a lot there'll be a couple later on gap down vers a couple shake out Dem man but I'm really diing it in trying to show you trigger bars really tight low volume inside bars sitting on one or more key moving

averages this stock here nice move here look at the volume this is key okay look for spikes in volume with positive price appreciation could be on the earnings okay could it may be on the earnings maybe it's a catalyst maybe something

happens but this and then a constructive base this is saying lots and lots of people are interested then it's that basian mentality you update your decision- making process as new information becomes available every single day all I am ever trying to do

plan and prepare as best I can for the next session then just execute my train plan during the session rinse repeat for the next session just do that stay very very focused so here 20day 0r percentage

of 8.16% now because of the tightness of the stock it may mean that my initial stop loss targeting it I invariably use a buy stop limit order with the stop loss attached they targeting it through the high stop underneath the low maybe the initial stop loss here is 4% half

the 20day ADR percentage and the stop for it closes below it's 10day EA 157% spies in that time 20day ADR was

0.88% and it goes nowhere goes up 0.69% ha funny number b i o l this one here look at what's happening prebase something has happened here go find out what it is something has happened here

for the stock to be up whatever it is up during this time period and then you're looking for constructive bases stock to find support of action in certain areas pulls back down to the 21 this is a gap down reversal bar gap down open on the

low push up subtle sign sh and then here looks to be just about a low volume inside bar 20 to ADR 7 and 1/4% spies not even 1% where do you want to

be do a couple more CLS so this one here is a high tight flag so you can see the stock goes up 111% back down what moving averages are you looking for as a reference point to see support of action why on those moving averages cuz you've

seen it a thousand one times before 21 day gap down reversal bar tightness holds around you actually get a nice trigger bar in here as it puts in a high low tight little low volume inside trigger bar not quite an inside bar but

this one over here tight low volume inside bar contraction and then what follows contraction is expansion before it close below it's 10day goes up 56% in

16 bars ADR 7 and a qu% spies 0.7% imgn this one here this probably is a biotech stock so it maybe like FDA approval for a drug or something like that but then what does the stock do it

bases builds his flag type pattern low volume inside bar 10 amaa said that a few times haven't I and look at the indexes the index look terrible so while the index is down here just lower low lower high lower low looks terrible the

Stock's just holding up here just building a bait this is relative Str didn't just happen on US Stocks you see this on all stocks across all markets so here is a UK stock Pantheon res sources

okay so it moves up here look at the volume look at the 52 cars and then we got the ukx being the fo2 100 below here so as it puts in this low volume inside bar on the 21-day EMA look at the index

okay still below its 200 still below it one it's in longer term downtrend right whereas leading stocks will lead leading stocks will lead low volume tight inside bar there's then another really good

entry bar right here as well before this then closes below it's 21-day EMA goes up 339 for me in terms of optimizing profits I like to use the 10 Daya 21 day EMA is trailing stops for part of the

position but if I think a stock starts getting extended from the 10day as I was explained to earlier I will move my stock loss on all part of the position it depends to lower the day lower the day lower the day lower the day lower

the day and choke it off like that if I want to do that this one hit Pacific bio biosciences of California so look at the volume coming through in the positive price

appreciation pulls in 21 21 21 Titans on the 21 and then you see the move 20 to ADR percentage s and a quarter percent versus the spies 0.88% so you really want these higher ADR stocks that are

acting like this and then basing constructively and then doing certain things in terms of setting up contraction in price is really key I like to look for trigger bars or check out Dem M House Gap down reversal bars

for entries around one of more key moving averages this is AG so here you actually have all three candlesticks I look for this one right here gap down reverse bar PRI Clos here gaps down opens here two bars later shake out Dem

man next bar here tight low volume inside bar trigger bar action on the 10day EMA volume dries up look at the 52 recards 20-day ADR percentage 6.99%

20day ADR percentage of the Spy 0.89% so you really want to understand the character of the stock as well so something that's really really good to see is when you load up a chart of the stock not only does it have everything we've been talking about but you load it

up and you go look at previous breakouts because that will give you a feel for okay if this Stock's going to break out and run how far may it go okay the best indication I think of how a Stock's going to act in the future how did it

act in the past so I love to load up a chart and I see this okay wow nice uptrend bases goes nice uptrend bases goes nice uptrend bases goes that for me is really good because I think the previous behavior of the stock will give

me the best indication not what someone says on CNBC or someone says on social media the Stock's own action will give me the best indication of how it may act in the future really really key cgc

canopy growth CP so sometimes you can have a stock where over here it would had a really high ADR percentage but you can see that the index have been pretty terrible right the index not really going anywhere so it's just putting a bit of weight on the stock so sometimes

you can get a stock that's displaying a lot of relative strength but because the base increases the 20-day ADR percentage can come down now it's still twice over

twice that of the s&p500 0.92 versus 2 versus 2.23 but sometimes you can get these much longer bases where the volatility starts to dry up because of the base duration so it's just something you want to be aware of this stock here

if we get this kind of clear change character and at the end of the day that 74% like where do you want it and the index hasn't gone anywhere so it's just something to be aware about you can have a really high ADR stock but then because

of the base duration and that kind of volatility decreasing it can then seem like it's a lower ADR percentage stock this is where you want to pull up the previous behavior of the stock and go how may the stock might may move what is

potentially reasonable Cali biosciences 20D ADR 7.87% 2017 lots of good trades then in that year look at the volume coming through could have been an FDA approval because it's a biotech and then look at the tightness and price

tightness price low volume absorption of Supply there not much Supply that is coming through 7.87% versus an S&P 500 208r percentage

of .5% it is many many multiples of the

of .5% it is many many multiples of the S&P 500 it's really really good to see ACB another cannabis stock like cgc a couple of charts ago so powerful move up

here see how it stays above the moving averages gap down reversal bar around the 10 shake out to Martel off the 21 pulls in higher low tight tight TI tight tight look how the volume drives up

20-day ADR percentage of 8.31% so this is the point then of like looking for these what I call trigger bars tight low volume inside bars invariably why because the risk initial risk versus the 20day 80r percentages can be very very

favorable now I'm not saying you're going to top tick this and sell it at$ 13.92% I'm not saying that but I'm showing you the power in seven sessions the stock goes up over 100% while the index has gone up a percent where do you

want to be AMD name you're probably familiar with 2018 20day ADR percentage nice 4.7 7% so this can be a real sweet spot when you get these more like tml

type stocks so these kind of classic O'Neal uh stocks that have big earnings coming through so triple digit earnings triple digit sales really good estim loads of liquidity for institutions

involved in a new area of the market as well or kind of like a growthy type area so semiconductors AI all of that stuff right but this here builds a really nice flag type pattern support on the 10 on

the 10 on the 10 then the 21 this is a gap down reversal bar type Candlestick then this is a pretty good bar that follows also 52 we highs in the base the Stock's very strong but the 20day ADR

percentage is 4.77% relative to the S&P 500 that this time 0.

68% AMD is if if the index is going to go up 10% AMD could go up many many many multiples of that because of the ADR Point here so you can sometimes find a real sweet spot you get like a tml type

stock so more of the O'Neal type stock but it has a nice ADR percentage like 3 4 5 6% that there can look very very interesting indeed

Tesla so similar point that I made on um on on C on cgc that sometimes because the base dation increases to an extent the volatility starts to contract so the ADR percentage starts to come down

relative to what it would have been previously as well but you also want to understand the character of the stock Tesla when it breaks out and wants to run it can run and run hard right 20 to 80r percentage of the spies 0.55% Tesla

2 and a/ qu% Tesla is nearly five times quicker than the market so if the market goes up 10 % it's reasonable to expect Tesla could go 40 50% but again it tends to be much more kind of exponential in

nature instead of instead of um instead of linear in nature Tesla for a closest blow 10day 136% don't mess up the big ones this one here this is codx we looked at this one a little bit a little

bit earlier on so this one here goes up over 500% in the space of four sessions 20day ADR percentage 22.9 22.9 this is ridiculous low volume High

inside bar on the 10day EMA and look look look what the market did this is going into Co C look what the market did look what this stock did low the bar low the bar low the bar is an affected day okay stock goes up 300% bases 10day

10day 10day 10day 10day 21 day tight low volume inside bar look how the volume drives up look at the 52 highs in the base these ones here this is Extreme extremely high ADR when you start

getting like above 10 you're getting very high when you start getting like 1520 it is very very high on a relative basis versus the major indexes novx we looked at this one earlier I think the quote was this is a six-star setup on a

f star scale so the stock makes a powerful move here look at the volume look at the 52 cars pulls in bounce off the 10 bounce off the 21 21 21 21 low volume inside bar see that sitting on

the 1021 and then before it closes below 21 226 per. not bad right look at the strength it was showing versus the S&P 500 look at the two sessions certainly the bar before look

at the session the S&P 500 had had and look at the stock how it just held up held it 21 gap down reversal but Extreme strength gme wouldn't be a video about

high ADI without gme right so Jan 2021 before it breaks out of this like textbook kind of like BCP couple andle type Bas really tight low volume bar sitting on the 10day the 20-day ADR

percentage is 9.48% the S&P 500 is around about a per. this stock goes up, 1600% so what we could add here as well is if you have a high ADR percentage stock displaying fantastic relative

strength versus the market great trend optimal basing type pattern and it has a really high short interest gme then we can really really be talking and potentially get a really powerful short scree here that could be

a little cherry on top as well the stock has a very high very high short interest 25% 30% 35% 40% something like that I would consider very high anything over 30% I'd consider very very high indeed

so again just little little things to be noticing okay and as I said lower the bar Lower the bar Lower the bar if you think it STS getting extended that's what I do l EDS so this one here may 2021 stock Powers up here look at the

volume coming through someone knows something someone's doing something here pulls down bounce off to 21 higher low low volume inside bar 20day ADR percentage is massive cannot stress as

nothing 31% it's huge so this is why a stock with a ADR percentage of the 31% can go up 281 in nine sessions in nine sessions and then you get supply shoot Supply shoot Supply shoot you don't want

to wait till closes below the 21 day here lower the bar low the bar Lower the bar all part of the stop loss that's what I would do S&P in that region there goes up less than a% okay this is the

power of focusing on these higher ADR percentage stocks got three more slides for you okay this is September 2022 so biotch related stock again biotch when they have these Gap UPS usually FDA approval or something like that okay so

Gap up huge volume coming through flag type pattern pulls into the 10day EMA the volume dries up from memory this is inside bar as well I can't quite see cuz of the vertical line but think it's an inside bar and then look at the 20-day

ADR percentage of the stop 9.4 9% relative to the S&P which is in the context of a downtrend here 1.83% so see how the S&P is trending down the stock

is doing the opposite S&P trending down stock doing the opposite focus on the leaders Kappa this one here 2022 into 2023 stock makes a big move here there's a shed ton of Insider buying going on by

CEO CFO I think the president of the company uh multiple directors as well during this time period pulls in bounce off the 10day EMA pull in again bounce off the 10day high low 20day ad

percentage 18.63% S&P at that time there a little bit more volatile you can see the S&P action around about 2% now before it closes Bel 21 the goes up 427 S&P during

that same time goes up 3% focus on the leaders focus on stocks that have really high adrs certainly if they done action like this like get it dialed in really like Focus your kind of screening and

your routines around okay how do I try and identify what are the strongest stocks in the market and ideally they are displaying some of the characteristics and talking to you about in this video so this one here this is the final slide I hope you've enjoyed it but I do just want to finish with this

here talking about fundamentals I want to read a couple of qu magy quotes out to you as well so momentum relative strength plus fundamentals so we've been talking a lot about kind of momentum basing type patterns relative strength

highr we want to bring the fundamentals in as well a little bit okay so the best ones being the setups are those that show relative strength that can't go lower even if they overall even if the market overall of the indexes are

showing weakness and going lower and these things stocks can't go lower they may even be building higher lows I like to trade the stocks with the biggest earnings they tend to make the biggest moves in my stock screener that custom

built stocks scen you can see the earnings and sales data as well you just click on the flex charts tab but the only thing you really need to focus on is the momentum because all of the big earnings winners are going to have momentum you're going to catch them if

you just focus on momentum if you're going to get big moves in the stock there needs to be a reason for it to go up every stock can go up a short amount of time on some random stuff but there needs to be something usually earnings

or un or expected earnings is the Big Driver for long-term moves so this here is Monster Beverage it's nearly as perfect a base you will see on the monthly chart in the context of a bare Market 52 we highs there's another quote

here if you're not paying attention to Rel relative strength well I guess you don't know what you're doing I'd agree with that see the 52 we highs in the base what did I tell you earlier 52 we highs in the base is an extreme sign of

strength so you have a stock here that's building a constructed base multiple ShakeOut demand house tightening around the monthly 10 EMA tight low volume inside bar on the monthly chart before

the expansion really key now what happened here with monster beverage is you can see the EPS growth so the earnings to sales and the net profit margins growth 2023 earnings on a yearly

basis were up 75% sales were up 20% net profit margins accelerated from 3.3 to 5.4% 2004 yearly EPS so earnings went up

4 214% sales went up 63% net profit margins doubled from 5.4% to 11.3% overd doubled 2005 EPS grew 195% sales grew

93% and net profit margins again accelerated from 11.3% to 18% this stock here went up 80 8,942 in 35 months is every stock going

to do that no but this is the thing about finding really rare special occasions stocks displaying out outstanding relative strength have this type of growth in terms of their earnings their sales the net profit

margins the relative strength is there the base is there the high Rel the high ADR percentage is there and then piecing it all together like these are the like holy grow type situations to try and find so I'll wrap that video up there

guys I hope you guys have really enjoyed that learn a little bit about the importance of focusing on higher on higher ADR percentage stocks High relative strength stocks thinking a little bit about the fundamentals the common chart patterns that you see the

common characteristics that you can see pre-b base in the Base Post base as well so thinking about trades from four main areas number one how do you identify high quality set up number two how do you initially control the risk create asymmetric risk vers W trading

opportunities number three how do you mitigate the risk how do you free roll their trait and then number four is how do you optimize the profits if the stock is going to make a big move from point A to point B how can you try and be that what are repeatable selling rules and

selling guidelines that you can use to help optimize profit so I really hope you've enjoyed that video thank you very much for watching and I look forward to seeing you in a future video