The Slingshot Pullback Pattern - How To Trade Pullbacks

Conversely, ARM, this was one of my better trades of of last year. Started

low, you know, you had the first day and everyone's I don't know what was this about 60 70 bucks probably at the time.

Gaps up, runs all day, pushes a little high. I think it pushed about 120 or

high. I think it pushed about 120 or something. Came in and but it really

something. Came in and but it really started, you know, trading in this like 115 to $118 range. And day two, it, you know, it started low and then pushed right ahead. All the only thing that you

right ahead. All the only thing that you need to know is is price. I obviously

financials and uh earnings move a stock but you know that's reflected in the price unless you have some insider information which I don't pretend to have. In the financial markets you have

have. In the financial markets you have two simultaneous auctions running. you

have a buyer auction, you know, what are they willing to start, you know, bidding at or feel comfortable trading at? And

there's also a sellers auction. What do

the sellers start, you know, feeling comfortable? What are they willing to

comfortable? What are they willing to sell at? So, the the slingshot, the way

sell at? So, the the slingshot, the way I defined it, uh, was I was essentially looking for a crossover the 4 ems. I tried a lot of moving averages over to kind of define it because I wanted an objective criteria to say I could I

could scan for it. And really by switching my moving average, you know, it told me that price has just climbed back over the the average price of the, you know, the highest price of the last four days. And that seemed to align very

four days. And that seemed to align very very well with the resumption of of the of the trend. This shook is my really my gap setup, you know, with a stock that uh really takes off. And I guess my other thing, it's probably my most

controversial thing because I personally didn't used to believe this, but moving averages are are overrated. the price is supported at these congestion points and not just because a 50-day moving average is there. You know, think of the market

is there. You know, think of the market as kind of an auction process. Do the

buyers or do the sellers have control?

Where are they likely to sell or continue buying or buying continue selling? You know, and that's kind of

selling? You know, and that's kind of just how my my process has evolved.

All right, welcome back everybody. It's

my pleasure to introduce the next speaker of the Trail Line uh conference, uh Scotland. He'll be discussing how he

uh Scotland. He'll be discussing how he interprets charts, identifies pivots, and how he trades them as well. Really

been looking forward to this uh and excited to to hear uh you know his take on things. I think it'll revolutionize

on things. I think it'll revolutionize how a lot of you look at charts. So,

Scotland, thank you so much for for being here and excited to dive in.

Well, that's a kind introduction, Richard. I don't know if it'll

Richard. I don't know if it'll revolutionize uh things, but uh this is really I guess my way of kind of leveling up. Um, we've obviously I've

leveling up. Um, we've obviously I've done this before and we've talked about some other setups, but over the last few years I've kind of worked on performance optimization and uh, this is kind of um,

my my thought process and and kind of where we're at or where I've gotten to since that point. Um, you know, you you probably have heard me if you follow me on Twitter. probably talk about icorus

on Twitter. probably talk about icorus levels and atlas you know levels and I'm going to get into that and and how I get you know came up with uh you know those kind of observations and what it can

mean for my trading as well as you know hopefully other other people's as well.

So let's see if this uh goes. So my

presentation Icarus to Atlas those are my two Greek characters. Obviously

Icarus is uh um you know flew too close to the sun and melted some candle wings and Atlas held up the world. So those

are the kind of the visual um images that I I have uh you know in my mind when I when I'm when I'm trading. Um so

with that we have our legal disclaimer.

It's not financial advice and uh you're welcome to read that but uh essentially I'm not making any representations or giving trading advice here.

Um okay a little bit about me. Um I I got became very interested in trading when I was was in college. Um, it was the internet.com era. Uh, I saw, you

know, these, I guess, news program 60 minutes maybe on day trading. I thought

that sounded like the coolest thing ever. You know, if when you're working

ever. You know, if when you're working in a a coffee shop or some other lowpaying job, you know, when you're hearing people making thousands of dollars in a few minutes, that sounds that sounds pretty good, right? Um, so

that was kind of the the my I guess the I guess the awareness of what uh what uh the people were trading. Yeah. What what

what what is happening here.

Um you know it all sounded very scary but then you know there were some people in my dorm that were you know I don't know if they were trading but they were investing and you know they kind of you know showed some of that that stuff. So

I'm like oh you know people you don't have to be uh you know in your 40s to to do this. you can you can be a you know

do this. you can you can be a you know 19 20-year-old kid and then do this uh as well. So then I, you know, I really

as well. So then I, you know, I really became in interested in that and started um get involved. You know, Yahoo chat was the I guess the original Fin Twits back in the day. Um message boards and

just kind of you know there weren't a lot of resources but I would frequently study in the business school and I read it whatever you know financial book whether it was Peter Lynch or William O'Neal or you know any anything

available I was reading you know that every you know every day I try to to learn as much as I could. Um at the same time I became placing trades and I was primarily like a breakout trader. You

know I guess what you know people would call like a low float trader you know finding a new high and it would almost always gap up the day after you bought it. So it was very very easy uh to make

it. So it was very very easy uh to make money in that environment.

Obviously things changed but uh at at that time it was it was it was a very forgiving period to learn probably you know similar to you know some 2021 2020

and frankly even last year. um you know very easy periods that that you can trade and so I you know I came interested and I had thought about well you know what's the next step is this

something that I I can do as a a career um lo and behold uh I took an interview with a marketmaking uh company they they uh they traded stock options on this

CBOE uh got the job and uh spent a year there part of it is I couldn't trade my own account there and so I got to keep a lot of the uh the gains as the dot um

burst. But uh you know really saw how

burst. But uh you know really saw how that uh environment was changing and uh you know people were getting laid off.

The market went into a bare market and trading volumes dried up and it just you know eventually they cut the program and you know kind of you know picking everything

up uh from you know ground zero again.

And when I started trading a couple years later I went to grad school first but uh you know picked up the uh some trades and the breakout trades no longer worked. to the extent that they, you

worked. to the extent that they, you know, used to. So, and I realized I didn't really have a a great system. And

so, the next uh I guess couple decades and I'm still doing is, you know, just getting better and better. And I I keep a you know, hope on that trajectory.

I've had some some great years. Um and

that's kind of really, you know, what have I learned from that and how do I I build on that and um you know, a little bit uh tried all the things, found out what didn't work for me, found out what

did work for me. um my I guess if I have a philosophy on the market it's it's you know and I've gone down so many like false you know I guess false idols if we're going to search for uh you know

you you you the the perma bear uh arguments all sound very interesting and stuff the commodities the Jim Rogers or you know whoever these guys are Peter Schiff right you know they're the gold bugs and they like oh we're out of debt

but you know that didn't make much money you know these tech companies that are quote unquote unprofitable seem to do pretty damn well right um you So I I eventually, you know, I've gotten to the

position or, you know, kind of my philosophy now is a price. All the all the only thing that you need to know is is price. I obviously financials and uh

is price. I obviously financials and uh earnings move a stock, but you know, that's reflected in the price unless you have some insider information, which I don't pretend to have. So I'd rather

just follow the big guys and uh then try to uh find it before they do. um you

know, you can be sitting on a uh the next gold mine, but you know, the average person isn't going to be able to hold that trade or, you know, go through a base or whatever. So, um my my trading

style uh from that is okay, how do I get in the the you know, the lowest risk point, you know, when a stock I want to be in a stock just as it's going to be going up. I don't want to be sitting in

going up. I don't want to be sitting in positions, you know, for a long time.

Um, and I want to, you know, try to ride the the the trend of it's going.

Sometimes I'll I'll hold stocks, um, you know, over a year. I've still holding Spotify. That was my first trade of the

Spotify. That was my first trade of the I don't know, was it last year? You

know, I bought it at 190 something and, you know, it's more than a year later, more than six year and six months later or so. Still holding it. Um, but, you

or so. Still holding it. Um, but, you know, and I I can have trades that, you know, last not very long at all. Um and

it's just kind of like where where's the information or where's the opportunity of that particular trade. So that's kind of how I I've uh um a little bit about

background and kind of where what sets the stage. Um obviously um I've I've

the stage. Um obviously um I've I've talked about a lot and we've you know chatted previously about uh kind of my favorite setups and these are the setups and I I guess I have to lay a little bit of an

introduction for them before I can move beyond them. And um so my my favorite

beyond them. And um so my my favorite setups is you know this one called the slingshot and another called the fish hook. Uh a slingshot is essentially a

hook. Uh a slingshot is essentially a pullback setup. Uh you know the the

pullback setup. Uh you know the the problem I was always having right is you buy a breakout and immediately you get faded and you get stopped out right or you're you're there's slippage because

everybody's watching the same breakout and you know particularly in a lower float stock everybody knows if it's you know if it's going to go through $50, right? you're going to get filled at 51

right? you're going to get filled at 51 just because everyone you you want to make sure it's up there. You hit the market order and get everyone else's orders do and it immediately back fills and stops you out and uh um so I didn't

like that very much. Um so I thought okay you know all these stocks eventually pull back but how do I know that they're going to pull back you know so first you start looking at well what is a move you know may the obvious one

that most people tried is well look at a moving average but I the problem with the moving average is that I found that it uh it doesn't offer much much support stocks would you know tend to slice

right through it or you know just keep going or you you know how do you know if you you buy you think you're going to buy at the 10day moving average and then it winds up pulling to the 21-day moving average and going up it doesn't help you a lot, right? Because you've you've

missed that. So eventually what I came

missed that. So eventually what I came back with is a a method of I you know kind of basically showing you I've heard people say I think you probably have said it before by the strength after the

weakness and so how do I quantify that?

And so that that was a slingshot. Um and

I'll I'll get a little bit more into the exactly what it is you know better but just kind of give a introduction to it.

Um the other one is a fish hook and um fish hook is my really my gap setup, you know, with a stock that uh uh really takes off. Um you know, maybe a lot of

takes off. Um you know, maybe a lot of your uh viewers have heard of the term EP before uh episodic pivot. That's a a term that uh stock B uh I learned from.

I used to be, you know, a member of that. And you know, it's these these

that. And you know, it's these these seismic changes in a in a company that leads to these massive massive moves over time. The problem is once you hear

over time. The problem is once you hear this term, you know, you know, episodic coded, it's you think everything, you know, you get all these false positives.

You think everything is an episodic ped because it's gapped up. And so, you know, I would chase them and, you know, more often than not, these would it would fade on me the next day or, you

know, or that day. And so I needed to figure out how could I get into a one of these positions without losing you know you know taking a you know you don't

want to if a stock's gapping up $10 you don't want to wait to $10 of of risk to put that on. So there's got to be a better way. So I'd worked out you know

better way. So I'd worked out you know kind of trial and error finding what is the best process and how do I I can define that.

So, and I just want to mention I think the the um the fish hook was the focus of the previous presentation you did the conference. Definitely recommend it.

conference. Definitely recommend it.

We'll have it linked in the comments.

You also talk about developing a setup and going deeper into that process. So,

if you find this useful, highly highly recommend that. That was one of my

recommend that. That was one of my absolute favorite presentations uh from that year. So, yeah, sorry to jump in

that year. So, yeah, sorry to jump in there, but no. Uh yeah.

Yeah. Well, well, thank you for that. I

mean, I think, you know, developing a a setup, whether it's a slingshot, fish hook, or something, you know, that, you know, you come out with, I think that process is is in incredibly valuable and, you know, um, but I I I'm not going

to read redo that that uh presentation obviously here, but I I do think it's important to kind of see where, um, you know, as a foundation. So, this the slingshot, the way I defined it, uh, was I was essentially looking for a

crossover of the 4 EM with the highs.

Um, I tried a lot of moving averages over to kind of define it because I wanted an objective criteria to say I could I could scan for it. And really by switching my moving average and I don't know why I decided to do that, I guess

uh to the highs, you know, it told me that prices just climbed back over the the average price of the, you know, the highest price of the last four days. And

that seemed to align very very well with a um with a resumption of of the of the trend. um you know so you can see in

trend. um you know so you can see in this stock um on on the on this this particular chart you know you had this big powerful move pulls back goes up pulls back you know you had a gap down

and probably the people that were you know chasing the stock because it was probably powerful um got stopped out here on this gap down tightens up you know it's not giving anything back but then it resumes a trend and you can see

it just launches from that that that point um so that's really you know where you want to go because you can take such a low risk you know, I mean, the the bars are obviously very very narrow at

this stage. Um, but if you're, you know,

this stage. Um, but if you're, you know, trading up in here, they get pretty wide. And if you if you wait to here for

wide. And if you if you wait to here for the breakout, you know, maybe your here's your breakout bar, the very next day, it's, you know, you put you under pressure. You know, does it work? Um, do

pressure. You know, does it work? Um, do

you stay in it? I don't know. Um, but I know that if I'm here, I don't have to take that, you know, that doesn't factor into the, you know, that decision there.

It's it's an easy, uh, easy hold. Hey

everyone, just want to jump in here real quick and let you know that this episode is brought to you by DFW, which is the platform I use every single day to find new trading ideas, monitor existing positions, identify new leading themes,

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And with that, let's get back to the interview. Um, and for those of you

interview. Um, and for those of you watching, uh, you guys should know what chart this is. Um, if if you know, drop it in the comments below. But if you studied some great gaps, and I'll give,

uh, I'll give a hint in the, uh, 2019 range, let us know in the chat, and I, I'll give the answer in just a minute.

But this is a great chart to study and a really good example of the slingshot.

And Scotland, there's actually a slingshot uh, closer to the first gap.

Uh, do you want to point that one as well, just to give another example?

Sure. Right. We had we probably had a a slingshot right in here, too. you can

pull that off that um and you notice on the bottom of the screen it says there's an E obviously that meant that this was an earnings gap um and obviously you want to be tracking earnings gas because

that's they launch you know most stocks you know need a catalyst and earnings more often than not are this this big catalyst you know it's a reaction to earnings I you know whether it earns you

know how many billions of dollars or 100 million it doesn't matter you as as long as the market is reacting positive to that earnings and moving you know stock on these type of bars is you want to be following that. Um, the other thing I'd

following that. Um, the other thing I'd actually note on this chart and this maybe we'll get into this kind of later is do you do you notice like we we here we got this close on this this day one

right how the price set up right in that that same range and then it's slingshoted off of that you know I think that's that becomes significant um you

know as we'll see a little bit later I mean it tells us that there's demand at that that price and particularly we've just blown through the the slingshot tells us we've just blown through supply and it becomes, you know, a pretty easy

uh run after that point. So here here's another um example um of a of a slingshot. And I guess I want to draw,

slingshot. And I guess I want to draw, you know, kind of a distinction because people think, well, any any way time that you are over the 4:00 a.m. or the

highs like right here, it's a slingshot.

And that's not that was never my intent with this this setup. Um

the that's to me that's just a normal, you know, breakout. And it's, you know, you want to it's a pullback setup. So

here where you have in this Verona far, you know, pharmaceutical, you know, you kind of, you know, looks like an earnings gap, pulls back, you know, bounces pretty high off this this prior support level, which happens to coincide

with the 65 EMA. Uh, then you have a you have a slingshot here. So you have the the weakness, then you have the strength, and then the resumption of of the trend. To me, this is at this this

the trend. To me, this is at this this top level where it should, you know, would technically be over the 4 EMAs, that's not a slingshot. There's no

there's no pullback. It's just a, you know, straight up breakout eye at that.

So that's all I just wanted to show the distinction on on this one.

Um, all right. So here here's the formula. A

all right. So here here's the formula. A

lot of people will ask, you know, what what is the the formula? Um, you guys have a I guess a Yeah, in debut they or they've already

got it codified. There's a lot of people that have uh coded it or whatever, but here was the original uh original code and um I guess I this was do you guys

know who Marson uh Parker is? He's a

market wizard, but he actually helped me with the code. He wrote it up like in a second. A great guy. Uh but uh so

second. A great guy. Uh but uh so essentially what we're we're saying is like price is higher uh that and in TC2000 which is what I use um than the

you know the the uh moving average of the four and it's below and this is one at least I coded on my chart it's below the last four days. So what the point is that we're just looking for a new signal because once you're over that 4 AMA

you're going to stay over that 4 AMA.

you know, you want to you want a fresh signal and and not the uh and not the uh just because it's over a 4 AMA. And

there's nothing special about a you know, about that. A lot of questions that I'll get is, well, how do I scan for this? And TC3000 makes it, you know,

for this? And TC3000 makes it, you know, super easy where you can just create a uh column and you can filter, just sort it. So that that's typically if I'm

it. So that that's typically if I'm looking for a setup and you know particularly if you you've you've had a strong move or a pullback kind of in the the broad market you want to see what's what's pushing out. So it's just a very

very easy way to to look for that and then you got to do the uh kind of the you can do it on the hourly weekly because obviously set a slingshot's going to start you know it's going to start on a one minute then go to 10 five

right and all the way up until it it all the way goes but you can kind of follow along and and see how it plays out.

I love sortable col columns. I use them, you know, all the time.

Um, and you kind of see just, you know, for example, when I put the slide together, it's sorted by the, you know, some of these are actually going to be slingshots and some are not, but you have to, uh, to go through kind of

manually. So, examples of what I would

manually. So, examples of what I would call a slingshot is pi. And I'm just curious because I I it looks like it would have been a uh you know I guess up

a little bit uh or went up to about 114 today in the slide, you know, but you know that would be a pullback um after some after some strength and then some new strength. So I, you know, I think

new strength. So I, you know, I think that's a decent enough signal in this this environment. And I'm trying to find

this environment. And I'm trying to find like new signals here. Just kind of just going through as opposed to the Hall of Fame list cuz we don't have the luxury of going through Hall of Fame and, you know, every time. But certainly we want

to be looking at at some of those. Um,

you you probably remember this one. I

think this is kind of one of the first slides. I you know, when we we talked

slides. I you know, when we we talked the last time that I showed as a great example. Um, and at that time I had the

example. Um, and at that time I had the white dashes that signify the 4 EMA crossover, but you had the the tightness and then the price expansion off from that point, you know, and because I

mean, you know, look how tight the those candles become at at that at that point, you know. So, it was obviously you're

you know. So, it was obviously you're not taking as as much risk as if you were going to be, you know, if you buy the breakout, you're buying what right here, you know, to me that's a yeah,

higher higher risk trade. Same thing

with AMAT, you know, same type of, you know, thing. And you can see like once

know, thing. And you can see like once you get a a slingshot, you know, you can ride these for, you know, you know, long periods and, you know, because you've get injured so so nicely.

So, in a sense, that's kind of the the slingshot. Um here here's one more that

slingshot. Um here here's one more that recent one and this is kind of a name um that I I certainly traded here. Um you

know, it it triggered obviously it was above but it didn't close. But if you're buying that that stock and I I you know I was taking a position in in this this range um you know just because it

doesn't hold your slingshot doesn't mean you you sell it. You know you want to make sure it honors that that stop. Um

you know so this wound up being a uh incredibly good one um builder. Okay, then I just put an

um builder. Okay, then I just put an ask. You guys, would you think this is a

ask. You guys, would you think this is a slingshot?

The triggers, right?

But see, I to me this is not, you know, there's no there's no strength. It's not

just because it goes over. This is just a, you know, some junk in the base. So,

just because you're over this, you know, this 4 EMA or in a, you know, downtrend, to me, that's not what this setup was ever meant to uh, you know, to take place. Same thing with like this, you

place. Same thing with like this, you know, although, you know, to me this is just a rangebound, you know, you know, example. It's but it's above all the,

example. It's but it's above all the, you know, key moving averages, but to me that this is insignificant. It's just

just noise.

This one will get probably getting a little bit closer. You know, I I think you could probably make an argument that, you know, at least you touched off the tops and then pulled back. Um, you

had some strength from March. Um, you

know, is this a great slingshot? No, but

if I was interested in the stock, this is probably not a bad spot to to take that risk, right? We'll go down to the uh the fish

right? We'll go down to the uh the fish hook then.

And as I was alluded to earlier, this my my problem was how do I how do I trade EPS? Um you know, stocks up and you

EPS? Um you know, stocks up and you know, I'm convinced that I'm going to make I just be able to ride it and it's the next uh Facebook or Amazon or one of these stocks that you can just, you

know, just keep going up. Uh the problem is I buy high and wind up selling low and that's not a very good way to make money, right? Because they start fading

money, right? Because they start fading on you and you uh you get stopped out.

Um so how do we know that the momentum behind that initial move that was so powerful is is real and not just a you know one two day move.

Um so my my concept was well if a stock essentially could retake you know where it kind of closed on day one uh then there it you know seemed to show that

there was enough there was some more buying or you know uh interest demand demand yeah there's interest that people you know there's going to be initial there's always going to be this initial profit take you know somebody's been in

a stock and all of a sudden it's up you know the 20 30%. Some people are going to be like, "Oh, this they're going to use that exit." But then when the real big money comes in, that's when they start buying. They're not they're not

start buying. They're not they're not taking profits there if it's if it's like the next big thing. Um, so that's, you know, really what I'm was trying to capture. And, you know, so this would be

capture. And, you know, so this would be an example of something that, you know, it was common. I thought, oh my gosh, KBH gaps up, knew how you knew there's going to be a new trend, you know, and then it kind of makes a push and then it

immediately, you know, phase on you, right? So, this is going to be something

right? So, this is going to be something you're like, you know, and a lot of people, you can lose a lot of money very quickly by chasing these type of, you know, gap ups. Um, conversely, ARM, this

was one of my better trades of of last year. Um, you know, you can see it it it

year. Um, you know, you can see it it it started low, you know, you had the first day and everyone's, you know, I don't know what was this about 60 70 bucks probably at the time. Gaps up, runs all

day, you know, pushes a little higher. I

think it pushed about 120 or something came in and but it really started you know trading in this like15 to $118 range and on day two it you know it started low and then pushed right ahead

and then you know I'm buying that you know at that that level and it's you know it just kept going. Um, similar

with uh Reddits, you know, that was a a great one where by on day five, you know, it wasn't right away, but you know, it you know, you had the initial profit take and it comes back and then they pushed right through that that key

level and then that was really off to the races at that point.

Here's a recent one just from a couple days ago. Um,

days ago. Um, you know, what is it? I don't even know.

AVAV. um you know had a massive earnings thing new high you know initially checks down and then off to the races another 40 points or so I I don't know what it's

doing today but uh it it was a couple very impressive day.

Um, one thing I would always caution is, uh, check the news. Just, you know, because buyouts are not EPS. You're not

going you're going to they're not going to move from that point. Uh, typically,

um, so just make sure it's earnings or some type of catalyst. Maybe it's a new contract drug related if there's an FDA announcement or something and depending on the type of stock. But uh that was

you know kind of where um we left it at you know the last time we talked and there's obviously I got your uh um you know the kind of interview and the last trading uh lion seminar we that we did.

So you can learn some more information on those specific you know setups.

But so my next chapter was well how do we how do we go from there? Because I

mean those setups objectively worked very well for me, but they were they weren't, you know, sometimes you you were still looking at the um trade

journals and stuff. I'm like, well, why am I buying here? That's where it broke up on the daily, but is there is there a way I can enter tighter? Um sell it faster if it's not working against, you

know, if it's working against me um you know, type of thing. And so I started going through and then I I had this kind of epiphany. I went to a charity auction

of epiphany. I went to a charity auction and it, you know, was like they they do.

They had this nice dinner that they were auctioning off. I mean, it was a dinner

auctioning off. I mean, it was a dinner for 12. They had, you know, they're

for 12. They had, you know, they're selling it up. They're, you know, they've got all the wine, the food, and uh um they they they bring in the the opening bit. They said, "Okay, it's a

opening bit. They said, "Okay, it's a $2,000 value." Okay. and they open at

$2,000 value." Okay. and they open at 2,000, but nobody's bidding, right? And

so they start tracking it down. It goes,

okay, 1,700, 1,600, 1500, and 1,500. You

start getting you get start getting into some bids and then you go 1,600, you know, and then it starts going higher again and it shoots right through that original opening of of 2,000 and keeps

going and maybe they sell it for, you know, 3,000 at the end. And I thought that was that was so interesting why that nobody was willing to take that open but then you know everybody got interested after you know they they took

it they took it down.

Um and you know I started thinking about isn't that what we see every day in the in you know the financial markets particularly so many stocks gap up in the morning you gap down and you know but really the the difference between

like you know the charity auction where you have just one one dinner in the financial markets you have two simultaneous auctions running. You have

a buyer auction, right? You know, what are they willing to to to start, you know, bidding at or feel comfortable trading at? And there's also a sellers

trading at? And there's also a sellers auction. What do the sellers start, you

auction. What do the sellers start, you know, feeling comfortable? What are they willing to sell at? And they've got a lot of supply and there's, you know, and buyers have a lot of demand. It's not

just, you know, the one dinner that, uh, they're auctioning, you're auctioning off.

So, you know, on that example, if if price starts too high, there's no bid.

So price drive drops down to a comfort zone, right? You know, that $1,500 and

zone, right? You know, that $1,500 and then people start feeling, oh, that that seems kind of reasonable. That's, you

know, and they start being able to trade in that that environment. One bid, two, then another way, somebody else joins in in that that level. And, you know, price starts going higher than the original, then it, you know, goes up to it, starts

stalling, right? It goes up to the next

stalling, right? It goes up to the next level where you're going to find, you know, it starts stalling out, you know, going once, going twice, and then maybe a big comes in, but maybe it doesn't.

But and that's where the the the trade happens. But if it goes through that,

happens. But if it goes through that, somebody gets FOMO and then they start just you know bidding whenever they you know maybe the uh um the spouse is yelling and the guy the husband's here start bidding like we want to we really

want this and you know and somebody else is bidding at the other table. So they

all start you know trying to up themselves and the process eventually keeps going till there's no more bids and you you have a I guess a trade.

Similarly you know you you see the same thing in the the sellers auction right?

a price starts too low, there's there's no sellers and then you'll see this in the market in the opening, right? The

price spikes down in the open, there's no bid and then eventually there's no more nobody follows that price down and so the buyers step up and then it price snaps back very quickly. Um you know, so

you know once it stalls then then you know that once it's clear that it's not going to you know the sellers are gone you kind of uh you get panic or you can get that that type of action. But

conversely, if you know people if starts, you know, you know, selling below that that starting price and there's still demand, you know, people start, you know, loading up their sales, they're like, "Oh, we're not going to

get back to that higher price where we would want to sell it or we have to sell it now." And, you know, the price the

it now." And, you know, the price the process still goes until, you know, really the supply is exhausted and that can that can drop, you know, we see it all the time. It it drops very quickly sometimes.

So the I guess the initial question is who you know on every particular day or even on on time frame is who who controls the auction you know is it is it a buyer's auction is it a sellers

auction and sometimes it flips back and forth throughout the day.

Um you know really we have three three options. You either have a balanced

options. You either have a balanced option where it's kind of just going sideways, you know, buyer or you have a buyer auction where they just keep bidding, you know, until they feel comfortable and you can or you have a

sellers auction price goes down. So

there's really those only three options.

Um, and so to reintroduce, you know, Icarus and uh, you know, in this this auction con, I would notice that there was a lot of these these uh candles that

just have a lot of tails on it. You

know, I've sure you've, you know, heard Oliver Kell talk about his wick play.

Um, you know, and I I'm thinking, okay, well, why why does the wick play work, right? We have this price goes above,

right? We have this price goes above, you know, it creates a wick because it trades back below, right? And you see these long tails and some people are like, well, that's just there's m tons of demand if it doesn't hold right away.

May that may be true. It may not be true. But a you know if you have these

true. But a you know if you have these these wicks there are areas where the you know the sellers are really in control if they push it down and and you know it's going to melt the wax and

those candlesticks and you're going to price is going to go down. Conversely,

you have uh Atlas who is going to hold your your price up and it might shake it a little bit. might make you nervous, but uh you know it's going to step in and uh demand's going to be there and

you're going to push the the uh the price uh back upwards.

So how do I you know going to take this auction concept and optimize our performance? How do we get better?

performance? How do we get better?

Right? So one of the things that I started doing and um is using I journal I use a trade journal like I used personally use trading view or trader

view um and you can tag your charts but the best part about it was before I you started using this journal you know I would just take a picture on the daily you know time frame or whatever and and

say all that's pretty good but then once you if you can look at you know it on multiple time frames at the same time um you start noticing things uh you know So

I you can you know maybe you have it I personally had have it set up as a daily, a 10-minute, an hourly and a weekly. You know kind of see how all

weekly. You know kind of see how all those time frames does it does this make sense on multiple time frames. Is there

if it makes sense on this on the daily was there a better entry I could have had or you know or am I trading against like the weekly as a you know as a whole is that's kind of the the primary you

know trend. So I started looking at that

know trend. So I started looking at that what are the the ways that you know I I can do better. Um, and some of the observations were um, and this is the first one. You'll notice that most of

first one. You'll notice that most of the charts I post, uh, I'm starting using the 10-minute chart. And it's not because I'm, you know, thinking I'm in a day trade here. It's, I just feel like it shows that auction process the best,

right? You'll see that those price

right? You'll see that those price spikes and whether it's going to hold and or whether it's one of these, you know, initial short-term pops or shortterm, you know, sell-offs that you

particularly, you'll see most common in the the morning of a day. you know,

there's there's, you know, times when you'll see a a late day flash or, you know, a late day spike, but you want to, you know, I feel like the 10-minute shows whether it's going to build up there or or if it's just a spike. So,

that's kind of my my go-to.

Um, the other observation that I've had is you see these wicks on a candle. Um,

and maybe you want to find a, you know, I can find an example or I've got them, but they all form in the first 10 minutes or 20 minutes of the trading

day. Yet more often than not, so to me,

day. Yet more often than not, so to me, what are we what is what does that tell us? You know, is it really do we really

us? You know, is it really do we really need to put our stops at LOD or HO or buy stops at high day, you know, day? Is

that really where we're going to be buying if it has to take out the high or does that not mean anything at all? You

know, is it that we're just going to find a bid at, you know, and fuse that auction? You know, they're going to

auction? You know, they're going to they're going to flush the price. But do

you really need, you know, then if they start most common, you know, is trading at 2,000, do you really need to go back to 1500 to know that it's not going to work? If it goes to, you know, 2500, you

work? If it goes to, you know, 2500, you know, I I don't I don't think you do. I

think you can you can tighten that up.

Um, so wicks or on daily, I don't think they matter for support or resistance when they form quickly. In other words, that quick spike or quick flush, there's really not there's really not an auction

taking place at those those levels.

it's, you know, just they're just price exploration. It's not the real price.

exploration. It's not the real price.

Um, you know, I've heard this the phrase that, um, you know, time at price is more important than volume at price. Um,

you know, in other words, if if a stock it's trading um all day at a certain level, that's significant. That's where

people feel comfortable trading and it's going to price might get away from it, but it's often going to retest that one in what direction or or the other. Um so

that that's kind of the things that you know we'll we'll look for. Uh is is if a stock is actually going up is it just a quick you know spike that's going to eras in and then crash or is it something that's going to build above

that level and you know and and you know because shows that there's real demand at that level.

Um you like I said price forms consolidation levels right we have a buyer auction we have a balance market and we have a sellers auction. So, a lot of the trading day and most of the markets, they're relatively balanced,

right? There's a price that it most

right? There's a price that it most stocks feel kind of comfortable that they're they're willing to trade at those those consolidation levels and you see price clusters. Um, and then if a

price will bounce between price clusters, then it'll either be accepted or rejected. Um, and I I kind of to me

or rejected. Um, and I I kind of to me the concept is kind of ladders, right?

You have different rungs on the ladders.

If you look at a lot of the charts that I that I post, I'll have lines at one level and you'll see it bounce to the the level above or fall to the level below.

And these kind of consolidation levels where they can be in play for months or even years. So they can be just, you

even years. So they can be just, you know, so you just leave them on the charts and, you know, it's it's funny where if you have like a a pivot and a stock might be have gone away from that

for, you know, a quarter or even longer and then they have an earnings miss and sure enough in in after hours or something, it's going to it retests that price almost to the penny and then it'll find that that demand level and it's

it's interesting. Um, you know, along

it's interesting. Um, you know, along that way. Um, and I guess my other

that way. Um, and I guess my other thing, it's probably my most controversial thing because I I personally didn't used to believe this, but moving averages are are overrated.

Uh, the price is supported at at these congestion points and not just because a 50-day moving averages there. If there's

no price support on the chart, the 50-day moving average is just going to get sliced through like butter. You

know, just because it's it's a moving average, it does it's a kind of an imaginary line of the thing. It doesn't

mean that an auction actually takes place kind of, you know, at at those those levels. There certainly are valid,

those levels. There certainly are valid, you know, functions for moving average that I use. You know, they're great for using to sort trends and and that sort of thing, but if I'm buying into a moving average, you know, you're asking

for trouble unless there's, you know, some type of uh, you know, real support at that level.

Is um, are the pivots and, you know, how you're interpreting things? Is it

similar to the Darvis box type theory with the the boxes and going above and below a certain level? Yeah. Okay, cool.

Yeah, I think that's a great Yeah. I

mean, so for people that that don't know, I mean, usually typically use a like as pivot on like a weekly charts, but you know, they kind of pivot high,

pivot low. Um I guess we have now the

pivot low. Um I guess we have now the advantage and you know he was using uh the newspaper charts and everything that they didn't have the I guess the tools

that we have that we can really zoom in on on where those those precise levels um take place. Um, so when I was saying

take place. Um, so when I was saying that the uh um we we get these price spikes. If you notice, I think I think

spikes. If you notice, I think I think this is Roku, but you have the the price start up and the very first thing in the market, you see a a a spike, right? And

there's no build above that spike. So I

had this 8190 is as a a pivot level um you know, just based on other um you know, action that had been going on in that you know, in this particular stock.

But, you know, then what it spikes above, but then it can't really build above that, right? So, what does that tell us? We've got to attempt to push

tell us? We've got to attempt to push over, but then seller, you know, so the sellers are saying, "Hey, we're going to sell anything in here." It gets in this thing. They all feel comfortable selling

thing. They all feel comfortable selling and there's so much, you know, supply that it's going to be really hard to, you know, to cover for for buyers. So,

you know, it tells us sellers are in control of this particular auction and then until it tightens up here on that 80 $80 level, right? And throughout the day it trades above that and then all of a sudden now we're we're comfortable

again now. Oh, now they're now buyers

again now. Oh, now they're now buyers are still taking a little demand but then they spiked it up again. And this

has been weird about the the market lately is we'll see a lot of these spikes in the in the morning in this type of action and then they they fade it, you know, and then it tries to make another run later in the day. Um kind of

conditions of a typical what you see in a chop type environment. Um where you don't just trend all day, but it's the type of thing. But I guess the point I'm showing with this this chart is these

spikes happen most common in the the first 10 minutes of of a of a trading day or 20 minutes. You know, it's very common to see uh um price fall or spike

and then find a real trading range that's later um you know throughout the day like you know along this $80 level.

Here's another example is cut off the candle like so when I when I draw these pivot levels um I I don't find significance with me you know these

these price spikes. So I draw my I I cut off the wicks you know on them. Um

you know and I guess it's if a price is able to build above it then it's then it then you have demand. If it's if it's not then the sellers are still in

control. Um, you know, so I guess that's

control. Um, you know, so I guess that's kind of really where um, you know, we look at I look at the market every day kind of are you able to

build above a level or is you getting rejected at at that particular uh, price level.

Let's go another Okay, I figured out like let's talk kind of like throughout a you know all of these things on a on a on a chart.

Um, so you know, let's go back to Roblox. push. Let's see. Would have on a

Roblox. push. Let's see. Would have on a So, here's what we're looking at on a daily. And now you're going to like, oh

daily. And now you're going to like, oh my god, there's a thousand lines on this this chart, right? Um, yeah, but you can toggle that on and off on on the daily.

U, but really what I'm looking for throughout the day is is it is it uh growing or contracting on the on the uh is throughout the trading day. So, you

know, we have this this initial price spike here and there's a congestion and it it show and it pushes above that, right? So it tells us look there's

right? So it tells us look there's demand above this this price congestion and then it's supported right it revisits it where it we found it before pushes above revisits it puts you know

supported and then here's the first price spike that gets rejected right we it kind of just steady contra you know normal price action once you get a price you know test in this obviously looks

like it was first thing in the morning they they gapped it up and uh you know they found sellers until the next day they gapped it down but also found demand at that that same same level. But

then, you know, it keeps kind of growing out, you know, and you can see as it just kind of trades between the ladder.

So, we know that we had a rejection point right here from right, you know, from this previous, I guess, Icorus level right?

And when so when you can build above that prior level where it was it was rejected that tells us that's a pretty good that that may be a place you you're

interested in taking risk or or uh um or taking profits if you've already got the you know the position or you want to monitor it. So it it pushes back and

monitor it. So it it pushes back and then again you know the same level that you know where it was Icarus was flying is now becomes resistance becomes supports or support becomes resistance.

uh and that you know obviously it works both ways but you get this kind of uh demand area that had previously been supply and it becomes an area where you know people are going to support it. So,

and it's supported again. So, you know, we know that there's still demand. They

test it. Then they test it again here.

This this level where it kind of pulled back into until, you know, you get up to here, you know, where you you get the $100 uh, you know, level. They gap it up and then

know, level. They gap it up and then they play games. They played games up.

They played games this down. you know,

these kind of $100 levels tend to be these these price points that are uh um a lot of games get played at there, you know, because it's a big round number.

It tends to track price. It tends to track trading and then so moves above that a lot of times get faded and but it so just expect gains in into the $100

level, I guess. Um and so then let's talk a little bit about how uh we get distribution now. So after we've got

distribution now. So after we've got this this you know these rejections one two above 100 the sellers start taking control you know you suppose you could draw like kind of a you hit a congestion

point um in in this area and then once it starts taking down we're first the first thing we got to do it's it's going to go to that that next level or that next rung

on the ladder where price was supported and you know undercuts it but then you know they the buyers try to step in but once it takes out that low again you you it's just signal to everybody that the

sellers are in firm control here that there are the the demand that came in here and here and here and here is is no more. They're not buyers aren't willing

more. They're not buyers aren't willing to pay that anymore. So, it's going to go down and find you know the next level where uh buyers are willing to step in.

um the more congestion. So we had a lot of congestion you know between you know 82 84 85 the more you know the more trading that happens in a thing the more likely

prices to either stop that or um buyers to step in more trading activity is going to going to take place. So for

this particular example, it was but enough sufficient to find some demand here and they bid it back up and yet again they they re they retest that higher that higher uh that higher pivot.

Okay, they looks like they poke through but Icarus uh starts to to play his games and you know then you get the uh the supply and it keep it flushes down.

Um so I don't know if that that makes sense or we're you know, I mean, Ionic, um, and the one that's trading had some some pretty big

wicks. And so, what I think is you

wicks. And so, what I think is you interesting to do is whenever you see wicks is to zoom in and see how those wicks are getting formed. Um, you know,

like this is in, you know, a stock that these price spikes in here are not indicative of a stock that's that really is going to build and be make a healthy move higher initially, right? It it

tells me that, you know, that there's just a a people are willing to sell it just as aggressively as they are willing to buy it on the open. Um, you know, where this type of action that it's shown more of recently is much

healthier, right? It's, you know, you

healthier, right? It's, you know, you get consolidation above this these these levels. It's not just spike one minute

levels. It's not just spike one minute spike for 10 minutes and then and then crash. Um, so, you know, resistance

crash. Um, so, you know, resistance becomes a support and then price is going to move, you know, a ladder. So, I

think where price tends to spike is where I'm very interested, right?

Because price can move very quickly. You

know, for example, this 4140 level. Um,

you've seen these that when you previously get above it, you get these these quick spikes for a couple bucks.

And I think that's, you know, something if I'm looking to take a position, that's that's something I'm I'm kind of interested in is how, you know, how fast uh they can move through that. Um

but if you've gotten other other stocks like this Aqua, right? You know, we had these big pushes and you know, we had these kind of real big candles. Um they

they tried to push up and we we've got the these these fades out of there which is kind of similar to Aquo as it was trading. You'd have these price spikes

trading. You'd have these price spikes and it shows that, you know, demand is not overcoming supply because you've got these these wicks that are forming. um

you know you can see on the the 16th for example right was first five minutes 10 minutes of the day you know you spikes up and then you know can't push beyond that

so to me if you see that type of stuff I start getting nervous and uh um you know particularly on a like a a longer you know term you know chart I mean the daily if you're if you're building up

you know playing this on the daily and you're looking at this level if you want to see it start building up there even as a swing trader because it's if you can build above that that level. It it

tells you that there's demand and you know the the bigger the level the bigger the more times it's been rejected and all of a sudden it's above that that has significance.

Um here's a comment open. Um I think this is from Friday, right? So we have a kind of the price rejection like it kind

of pushes up and then immediately gets rejected but then the the rejection got rejected so to speak, right? because

buyers came in just as heavy pushes above to the next pivot level and they retest it and you know they start you know although we had a so a level here

where we had spike we've got demand here so I'm curious to say you know once we get above this where it previously wicked is it builds above you know we it's it tells us the stock is actually

you know strong now strong and um and it's you know poised to make a a good move higher and just to use this as an example If you go back to that one, what type of

price action would um say, okay, it's building above that level just to be really clear with folks.

Sure. So, we wait we poke let's just talk about this 389. This is where I have this this pivot, right? It got it poked up in the first thing got rejected. Poked up um got rejected, you

rejected. Poked up um got rejected, you know, so it's really struggling with this level. So, I want to see it build

this level. So, I want to see it build above, right? And so here it goes above

above, right? And so here it goes above and maybe you're looking at taking the position here against but you know that if it gets faded you you can you can stop out pretty quickly you know because I don't need to take it all the way down

to 382 to know that's not going to work.

I can, you know, I can do it just for, you know, a couple a couple bucks. You

know, maybe if I take a brief grief undercut of that line, maybe my my line's not, you know, exact to the the penny, but it's I know it's generally in that range. So, I'll give it a little

that range. So, I'll give it a little bit of room, but once it it starts building up, you know, it doesn't reject it. You know, it build it's price is

it. You know, it build it's price is filling out in this range, right? It's

building a new trading range and that means it's, you know, it's it's going to test higher. Um and frankly I think it

test higher. Um and frankly I think it looked like it tested 406 or 407 today.

Um you know where we are are filling out. So we've got we've got the demand

out. So we've got we've got the demand that's sufficient to not get rejected like it did you know throughout here here you know so and and that happens really on all time frames if if you look

at it. I I I kind of like to watch the

at it. I I I kind of like to watch the the action as it actually, you know, fills out during the the trading day and, you know, try to narrow it um so I can get my stops or my entries as as

close or as tight as as possible.

So, just to uh say what I'm what I'm seeing a rejection is where basically the next bar we fall over or even that same bar we we wick we we a wick and we

fall right back below it. Yeah. Perfect.

Yeah. Yeah. I mean it, you know, it's uh it's supply, it's demand, and it just tells us that there's uh more supply. I

mean, I guess we'd call it a fake breakout, right? You know, um and what

breakout, right? You know, um and what happens with fake a breakout that fails like more often you see it go a lot of times go the other direction. So that's

the type of thing you know your your kaya is in but you know that you know the breakout is not necessarily the the high of the day or or the um you know I

guess the the on the daily that you know a lot of people will draw their lines at or they'll they'll say you know you can a lot of some of these stocks you can get in significantly um you know cheaper

than uh than where uh they're they're printing five day pivot or something like that.

Yeah, something like that. So here's a kind of an example the price letter and here's how you know I I feel like it looks like I'm just day trading here but I I really assure you I'm not. Um this

was you know in this uh February time when things were getting choppy in bed even even in that you know TM breaks down you know then it kind of shows that it it starts building above like so we

got this price support here but I'm not taking the position per se until it actually is showing that it's able to you know overcome this this spike or or

this this uh this area of uh price but once it breaks through you know I'm looking at okay so where would the next rung on the ladder be it's, you know, the level the level where a gap, you

know, opens is generally a level that you want to look you want to look at.

Um, so you give it, you know, to that level and sure enough it it, you know, it went up that, you know, 10% move and the market's falling and is it wasn't it wasn't terrible. Um then you know then

wasn't terrible. Um then you know then it become kinds of phase. It's showing

that now you know the all this demand or all that sorry the all the supply is sufficient to it's you know it's not going to be able to close that gap that supply that causes gap is still there

and so you're you're pushing down. So

you know I'm forced to I think I probably just raised my stop along the way trimmed a bit and then you know cut it out. But you know that's kind of the

it out. But you know that's kind of the concepts that I'm I'm looking you know throughout the market. uh to you like the the con take away is you know if these kind of um congestion areas where

you have a clean lot you know a clean line you can draw that you know the the trend has changed once you've can you know can break out of that but um you know it's not so that's not a bad you

know spot um I'm not necessarily a day trader or swing trade I mean here's here's Spotify I mean and a lot of people will say well I I'm I want to hold stocks for

positions or h so how does this help me Right. So, Spotify, this is a stock I

Right. So, Spotify, this is a stock I think I I mentioned. I bought it at 97 or so. So, how how does this, you know, this kind of these this concept

uh, you know, help? Um, and I've got the question, well, this is the weekly chart of Spotify, and obviously this this past year, we had it sliced, you know, some pretty heavy significant, you know,

pullback moves. um you know went from

pullback moves. um you know went from 660 to you know just uh about 480 or so and you know slicing through the 50-day moving average slicing through the 65

moving average and it and if you use the moving average you would have lost this position right you know because you're selling either here or here or you know maybe you ride the first one out but

then you're certainly selling it again right here but what I'm looking at is okay where where is a significant level of of demand And and if you look where did this you know price launch for it's

got this base right here and you're going to retest this is the rung on the ladder that I'm concerned that I want to see you know I want to see hold not the the moving average that you know really

isn't much in the way of actual support.

Uh it's this area where all this trade was feel comfortable enough to get enough demand to launch it you know into the 700s or 600s before it its recent move.

So, you know, you look at where did that that you know, kind of that pivot happened like we're holding here. It

might have and this is that that day where we had that big reversal, but it it might have opened right below, but it immediately, you know, has that demand.

Um, so I'm able to keep that position.

Now, if I would have lo it would have built started building below this land, I would have probably sold the I would have sold the position if it, you know, were fading down, you know, beyond that.

Um, but so that that's I guess the an example that I'm still holding this position, but why or how I use these and why I'm still able to to to stay in this position even though it slides through

all your your 50-day moving average or 60 moving average or whatever you know they're you know kind of um you know I guess levels yeah level or trend follow you

know trend followers you know we typically use that that as a rule and they'd be out um and but to me this this important level was never violated.

Um, you know, core, I know we we talked a little bit, I kind of preluded this is one of my my bigger trades this uh this year, but um I I actually pull it off.

So, if you study IPOs, you recognize that kind of this level of where an IPO bases at or where they're able to hold has a lot of significance. So an

undercut of that level and you get your kind of your your hourly you know this is a significant pivot level wherever you know and they were obviously holding it throughout you know that that initial

pullback um this is a stock that you should be interested in because you know any stock that's going to take this type of move off the you know the IPO and then we had you know is something that shows us that there's demand here.

There's there's power here. um it's

something you want to try to find a way in um if it's going to have a resumption of that that that power. Um and so when it retook this that IPO price, you know,

where the level you would I guess it would technically be an hourly slingshot on the hourly, but that's where, you know, I'm looking at getting in this this position and then we have these kind of this levels. This is what it

looks like. You know, let's go back to

looks like. You know, let's go back to the the daily.

Okay. Right. So on the daily like it looks like we've got we're got all these wicks here, right? So it's we're having a little bit of a battle, but I guess this would be what uh Oliver Kell would call like a wedge pop, right? You know,

you've got a downtrend and then it's it's but it was showing that we this one day it's showing we have enough demand and it's showing that still that there's

still supply in there. So um by um really we're watching for that to to to where where it's throughout. So, as I mentioned, I bought it kind of on this

hourly slingshot where it re resumed. We

get the gap and then it looks like, you know, maybe it's going to fade. So, I I took a little bit off. You know, I bought more than took it off and then would have regained that level. I'm

putting it back on. And then, you know, that at that point just watching this level. So, we you know, where it was

level. So, we you know, where it was kind of wicking on that um on that uh daily chart.

Yeah. You know, we're really really interested, you know. So even though it's, you know, we're were here, I feel like I'm okay enough in my my position.

You know, I took the block of the here and, you know, kind of here. And while

we're revisiting it, you know, the fact it gets picked up here, you know, multiple days in a row tells us we've got, you know, that that atlas level or that that support. So as it starts going

and then then the gap up above, you know, above that kind of level where it was wicking tells us it's really really in in ready. It's ready to go. And it

and I know it it did throughout, you know, kind of all of May. Um here I I we we had earnings coming up so I I sold covered calls on the I think about half

of the position. Um I got a really lucky buying I bought those in and then I on the you know because it got a little volatile after or immediately after earnings. Um but it what I saw was this

earnings. Um but it what I saw was this there was like 58 59 and it started you know kind of bouncing off that level. So

I I um I bought my uh calls in and then uh as it felt like it was you know recapturing levels but I added on the position and then regrettably I sold it

into 100. So there we are. Uh but it was

into 100. So there we are. Uh but it was a it was a nice little trade. um you

know kind of the these um some and we had I think this hood did this kind of the same thing where you had kind of a a uh what I'd call a hidden fish hook you know in the sense that you had this

earnings pivot but it really didn't you know it was kind of it it didn't gap but it was still like a very le heavily significant level on earnings day and and that's kind of where I was looking at okay here's where most of the trading

on that day one happened if it's going to push above that I'm going to I I'm gonna add it. And obviously I had a lot of gains to be able to, you know, to to to support that. So I was able to to uh

you know, put on a pretty sizable position at that point.

Um and then, you know, I guess I I look at the fish hooks now kind of the same way where I'm looking at the these kind of these these levels, right? So I used to probably be buying, you know, right

here. This first day close or maybe the

here. This first day close or maybe the first day closes right here.

Now you can see that there's a really heavy consolidation area. So you're able to buy it, you know, just just in here.

And then, you know, I saw that in this particular one, it faded in and I wrongfully sold out. And then I corrected my mistake and, you know, and then wound up taking it from, you know,

11 and selling out 13, 14, 15, you know, 18 and then I guess looks like 1590 or so. Uh but that's that's the type of

so. Uh but that's that's the type of thing like you know so where you're if you're buying on these these pivot breaks you have so much less you know kind of

exposure risk right and you can take it uh just off that $10 level as opposed to or I think I probably did 10 you know 50 and then add it back in 11 but as opposed to if I'm looking at a break of

13 to 10 you know that that you it kind of makes a game changer in the sense of how many more shares you're able to get or how tight your stop is and and all those sort of fun things that go along

with it. So, you know, I guess along

with it. So, you know, I guess along with, you know, really anything is, you know, you make make trades, track them, uh how to, you know, I always look, you know, is there a better way to get into

my trades? I I try a lot of things. Some

my trades? I I try a lot of things. Some

of them work, some of them don't. If

they work, I, you know, just kind of get it a little bit better and uh trade a little bit. Uh, you know, uh I'm always

little bit. Uh, you know, uh I'm always asking myself, how can I get a better entry or how can I held that trade better? um you know is there is what is

better? um you know is there is what is the right environment for a particular uh trade.

So I guess I've got questions and I asked I asked people what kind of qu questions that they they wanted to uh to hear. Um so I guess I would uh you know

hear. Um so I guess I would uh you know if you're interested I'll kind of go through that because I think maybe other people might have similar questions.

Um so this this poster asks I'd like to know how you size in some of your trades. I think you posted here that you

trades. I think you posted here that you have 40% of your position in pelletare.

How do you size into that? How much risk and how do you define your risk? You

know, percentage loss of total equity or something else. Um I guess the the first

something else. Um I guess the the first thought is all risk is not the same, you know. So factors I consider is the

know. So factors I consider is the distance to a stop. So I'm yeah my first my first cut is like you know I I don't want to take more than 1% uh of my you

know portfolio on any particular trade.

Um so what where that you know if and taking a a uh a look at a rug of a ladder if it's a tight rung then I can I can take more shares without taking you

know necessarily more more risk but if it's a stock that trades wide and loose you know then I might have to I I'll have to take smaller you know positions.

Um the liquidity of the stock is also something that I I you know a stock like pelletar or you know Apple type you know the kind of these bigger names they trade in penny increments for the most

part and you know it's not like you know some of these other stocks like what is it the flavor of the day CRCL right where that's trading 70 cent spreads type of thing um it's you you know you

can get a bigger position if it's that trades tighter um you know what is a common you know I guess are one day, you know, and the price of the stock doesn't matter. Like I mean people are a lot of

matter. Like I mean people are a lot of you know impressed if you you say you got a 50% position of stock but if you're buying Netflix you know you really aren't putting that much you know you can put your entire account in

Netflix and not take that much much risk just because it's a very high h highra stock you know but if you did it in a $5 stock you know that's insane you know where you know one day you know 20%

moves are so common in a in a $5 stock but in a $500 stock how often do you see you know those type of moves it's just it's just rare. So you're looking at that, the price of the stock, the volatility, and then, you know, can you

do you have gains to build into a position? A lot of times I like to, you

position? A lot of times I like to, you know, if I'm building into a position, you know, I'm not taking, you know, per se all all my my risk at at once.

Okay. So, another one is um how do I balance trading leaders with some wild ones? Um and so because I we I will

ones? Um and so because I we I will occasionally trade stocks that are, you know, I guess quote unquote wild ones.

um looking just by sorting by the higher ADR you know names average daily range and then I just set alerts and you know I don't you'll capture occasionally you know some of these stocks but I not it's

not my bread and butter I might take one out of 10 of these type of stocks but just by you know a lot of times I do follow these pivots really well um you know so just by setting alerts and

seeing how you know how what is it uh what is it doing in relation you know to that is it climbing or or not and then you you know, so that's something that, you know, you know, I'll uh um just

track and I set alerts at every one of these pivot levels and you know, just kind of see it. So, you know, if in these type of stocks, you get bigger moves, so you take you know, fewer

shares and then, you know, once it spikes a uh spikes, you know, you set your stop to uh even or better. So,

that's how I would trade uh kind of the wild wild statics um stocks. I mean, you know, and they all have personalities. I

think Aqu started off as kind of a wild one. It maybe became more more

one. It maybe became more more commonplace. Um but you know stocks will

commonplace. Um but you know stocks will go through phases as liquidity comes in.

How do I scan? Um, a lot of times I've got a short list of of of stocks that you know that anything that has an EP

type move or along the way I'm putting on my short list and I just set the the alerts you know is go go through it every day update those and if the alarms go off and they trigger then that's uh

something I'm looking at not necessarily to take a position but I want to know if the market generally is getting stronger or weaker. you know, if I'm if stocks

or weaker. you know, if I'm if stocks are dropping below pivots, I know it's getting weaker. They're going above,

getting weaker. They're going above, then I know it's it's getting stronger.

So, um I'll also, you know, go through IPOs. I want to start tracking those. Um

IPOs. I want to start tracking those. Um

you know, I mean, obviously, we've had some of the best moves this year has been in like uh CRWV and CRCL. And those

are stocks that uh you know, just by tracking IPOs and seeing that they're going stronger. Um H&G is a new one that

going stronger. Um H&G is a new one that just made a new high as an IPO. I've got

that. Hopefully it's still up during this presentation. Um but uh uh you know

this presentation. Um but uh uh you know those are the type of ones that I want to be tracking those and having the alerts and those are something that I always want to have my you know kind of

on my attention.

Do I keep a a database of past research?

And yeah, I used to use OneNote. Um, is

I was going through, you know, charts.

Um, I I'm a visual person, so I like to keep the, you know, the annotations. Um,

you would annotate whether I'm buying, whether I'm selling. Um, go bar by bar.

And then you have to be honest with yourself how you would, you know, really trade it. If it's a, you know, if it's a

trade it. If it's a, you know, if it's a breakout, but then it it it reverses on you. What if you really kept that

you. What if you really kept that position? You know, what if you rebought

position? You know, what if you rebought it? You have to ask yourself how would

it? You have to ask yourself how would have I found this pos you know particular stock coming out of a you know move is it what scan do I have and what part of my process would have let me caught this this stock. So I think

that's kind of the best way you can get uh you know I guess trading experience under your belt you know without going through real money uh if it just kind of you know trading these stocks mentally as you're you're doing your your

homework and and studying these these great moves. Um, now Trading View makes

great moves. Um, now Trading View makes it, you know, even easier for me to do that because I can you look at my own, you know, stocks and I can I can do it

by uh um I can, you know, and multiple time frames at the at the same, you know, time gives me a chart of four at uh at once, which is great.

Um, have I found flow? And uh this this is a a fun topic because at points this year I think I I have at points but it's fragile you know you know just you you

can feel like you're executing you know very well in the market but then you make one mistake or you know you just and it can get you a little bit off

tilter or kilter a little bit. So, you

know, finding it, you know, it's it's not like if you're in flow, you keep it for the year and and and handle that.

It's, you know, there are certainly moments where I feel like I've read the market really well. There's certain

moments where I feel like I'm not reading the market, you know, particularly well. Um, you know, I guess

particularly well. Um, you know, I guess the question is not don't, you know, how do you prevent yourself from giving too much back during those those periods where, you know, things aren't are a

little bit more difficult. um you know and in how you make sure you don't uh uh tilt.

You put out a good tweet. Um I don't know what exactly you said about it, but uh and it was a little bit ago, but you were like sometimes as a trader you feel like a market wizard and then sometimes you have imposttor syndrome and that's

such a great you know that puts it all together. You

know when when we're trading well and the setups are working all that we we can feel on top of the world but then when we're correction buys aren't following through it could feel completely opposite. So, I think this

completely opposite. So, I think this goes along along well with this this question.

Yeah. And I I I think that's kind of what I was was thinking it as is, you know, we we've had moments this this year where things have seemed to all go line up and it's been pretty easy and you feel, you know, you try to remind

yourself that you're not that smart when things are all working. Just it's the markets, right? And you're not that dumb

markets, right? And you're not that dumb when things are, you know, aren't working unless you, you know, kind of keep trying to force things. Um, you

know, so it's kind of that that balance.

I mean, you know, it's it's easy to feel smart if you know, you've got the uh your your uh equity curve at a high and um you know, you just got to remind yourself to kind of, you know, it's the

process and there's, you know, not every tree is going to be a winner and even if you hit 10 in a row, you know, that's not that's not sustainable. So, I guess, you know, trying to keep balanced and but you certainly want to try to read

the, you know, try to get to the flow because it's really amazing when you're in that that kind of feeling where you feel like, you know, you're hitting your your your buys where you want to hit them and and that type of thing. So,

so other questions for from you, Ralph, Richard, or if you Yeah, for sure. I I've got a I've got a bunch here. So, um first just to kind of

bunch here. So, um first just to kind of bring it all in perspective, um and this is my observation. Please correct me if if you have a different slight interpretation, but uh the levels, the

pivots, it's kind of an added layer on your existing slingshot and fish hook setups to try to refine a little bit the entry, get a get a tighter spot where you can manage risk, all that. Is is

that is that fair to say?

That's uh that's correct. It's it's a you know, I'm not trading them in isolation. It's you know, we're finding

isolation. It's you know, we're finding what is the uh kind of the trades I normally would be taking, but how do we get a little bit better, right? you

know, so that's kind of like kind of how I I'm I'm looking at it.

Yeah, exactly. And um I think that that's a really good point what you just said. You're not just looking at a level

said. You're not just looking at a level in isolation. You're considering the

in isolation. You're considering the overall context, the daily chart, whether it's a new IPO has potential based on other other factors. We're not

just looking on a 10-minute chart and trying to trade a pattern out of nowhere. Um I had a question. What

nowhere. Um I had a question. What

creates um more significance around a level? Is it more wicks down into that

level? Is it more wicks down into that or wicks into it?

Yeah, sure. The more the more you know like if

sure. The more the more you know like if let's for example let's say like a big base um you know maybe you know the more like like look at Reddit last year or you know coming into this year right it

it was really kept getting rejected I think about the 160 level or so right or maybe my lows are off but you know it was just bouncing you know off of that

all you know sustainable. So the more times it's, you know, showing that there's a supply level or or wicking there. And when it finally clears that,

there. And when it finally clears that, you're going to have a lot of it's it is significant and it's going to move very quickly. And, you know, I think Reddit

quickly. And, you know, I think Reddit moved to I don't know what did it top out 240 230 but you know it we moved really quickly through that. I mean I remember you know

through that. I mean I remember you know I I loaded up at that point. Um, and

then I, you know, I don't know. I think

I sold in the T20s because it had earnings coming up, which turned out to be a pretty good move. But, uh, um, that was re, you know, just, you knew it was just going to rip once it finally cleared off of that that excess of

supply. Um, you know, and conversely,

supply. Um, you know, and conversely, like, you know, stocks will fall through, you know, if they fall through a base, you know, they they f very quickly once that last uh, you know, buy point or, you know, demand point is has

been cleared out.

Yeah. And then um I think you mentioned this a little bit, but I'd be interested to hear a little bit more detail. When a

stock is in a range between two levels and it's been wicking into the top level and then we get a gap, you know, often, you know, there's the great setup, an inside day or whatever, and then we get

a gap. Um h how do you interpret that

a gap. Um h how do you interpret that based on the pivots? Like what would be good behavior for it? Just like pulling back into the top the top level and respecting it. What are you looking for

respecting it. What are you looking for in in that situation? There there's two things that you know you you would expect or I guess three things that you expect to see. You know the one of the

most common right is that it gaps up above that and then it fades all the way back down. That's that's it's a nicer

back down. That's that's it's a nicer level and it's pretty common. It's also

you know possible when a stock you know just is ready to go and it never looks back and so you're looking at that gap move. It's also, you know, one of the

move. It's also, you know, one of the more common things and what I'd look for is not the first 10 minutes, but by, you know, it a lot of times it'll retest that pivot on that, you know, you may

the second 10 minutes of the day. And if

it holds at that point, that's where I like to take the risk on the retest of the pivot and it shows that, yeah, we're ready to go above, right? We've ret back tested or backfilled that already and now we're ready. You're in ready to

launch. Um, so but if you if you're

launch. Um, so but if you if you're buying that gap up on the the daily and it comes in a dollar or so because, you know, it's it's it needs to backfill that, you know, then you're under

pressure already. So, you know, are

pressure already. So, you know, are there times where I might miss miss a trade at that level because it's just a gap and go? Sure. But more often than not, it's going to at least try to backfill a little bit on that. And if it

proves that it's ready to hold on the back fill and then and have demand, that's you're getting, you know, basically uh your cake and eating it, too. you know, you've gotten the stock

too. you know, you've gotten the stock that shows that it's ready and and you're getting a much better entry than just buying the gap gap open. Yeah, I

think that's really helpful because I think a lot of people um they're they're scared of buying gaps because they don't have a process to manage risk on it and just buying blindly off the open, you

know, might might work sometimes, but you know, that that process that you just mentioned it testing it, proving itself a little bit, manage risk versus, you know, that level that pulled back to

that might be a better way to go. Um

Sure. for for the names that just go, is it often more that there's a catalyst behind the move or you know you know because sometimes they just go there sometimes they just go right I mean they just demand is built up forever and you

know the market tends to look for sometimes it looks for catalysts that to explain what there's just demand you know um you know so I think that but the other thing is like you know I'm

assessing you know if it's if a stock is gapping up for example or even gapping down like you know is if it's is it gapping into another, you know, l run on the ladder to pivot, right? So, if it's gapping up, you know, I I might be

looking at, okay, well, you know, this is a level where it's it's above one pivot, but, you know, maybe I'm taking taking some, you know, profit off of that table. Or conversely, if a stock

that table. Or conversely, if a stock gaps down, but it's gapping into another, you know, I might take a I might be buying a gap down because I know I can play it against the that other rug in the ladder where everyone else is panicking out or getting stopped

out. But, you know, you got to play it

out. But, you know, you got to play it by ear to kind of see how, you know, strong that uh that demand is or that is. But, it's certainly, you know,

is. But, it's certainly, you know, something that it lets you kind of zoom in and say, I'm not just blind blindly or I'm not just selling blindly. It's,

you know, is there a reason why um it might sell off here versus might, you know, like I mean, a lot of times you'll see a gap up and it gap, you know, everyone's like, "Oh, it's ready to But then you see like you look left on the

chart and you say well well you know yeah it's a gap up but you know 6 months ago it topped out here. So is this really the one where I want to be buying

you know an EP type type move or is this more a little bit more skeptical here?

Yeah. And it might be more hindsight biased but I think I I've seen it enough that it seems to be a characteristic. A

lot of the names that eventually do work and and push push higher from a range you see a gap down. And I think Cororeweave did it right before it pushed that gap. You had a gap down and then just held tight the rest of the

day. Tight, tight, tight. Uh I don't

day. Tight, tight, tight. Uh I don't know if that's something that you you notice quite a bit, but that's definitely something I that I seem to have found before they eventually go.

There's often if there's weakness off the open, maybe it's a gap, it just holds, especially if the market, you know, has a sell-off day, it pull it pushes down further, but that individual name just holds a lot tighter,

right? you find it, you know, and if it

right? you find it, you know, and if it it's typically where if you were to look left on a, you know, on a chart and, you know, kind of it consolidates and there's there's the chart will make sense because it'll it'll, you know,

show that it previously held in that area, y, you know, I mean, yeah, I mean, there's there's times when it'll find, you know, form a new trading range at at something, but more often than not, I I

find that I'm looking at that at a particular level where it seems to have just going sideways and then you you you know, you look back and couple weeks ago or a month ago, it did the same thing or it found, you know, support in that that

level, too. But, you know, moving

level, too. But, you know, moving averages move, so that's not necessarily uh uh, you know, going to line up with, you know, your 10day moving average or your 20, right? It's just where it, you

know, if you draw a horizontal line, that's where it previously held.

Yeah. And then, um, shifting to the fish hook setup, which is for everybody there, it's the gap up setup where you're you're buying the push through the high volume close or the pivot level around that level. uh in this in this

scenario. Um I was actually going to ask

scenario. Um I was actually going to ask you about if you prefer a range that build a tight intraday range that forms the end of day one and then looking to buy through that range because a lot of the times you know it shakes below that

late late day range and then goes um so yeah. Do you can you provide a little

yeah. Do you can you provide a little bit more detail about what you look for day two or or beyond? Yeah.

Yeah. I I'm looking at that that that tight um range. um the you know it's not necessarily the highest price it spiked at or even the closed you know even if it's spiked that's the you know the area

where it might spend 70% of the day you know a lot of you know in that it trade very tight in that that range and if it does trade very tight in that range that may be something that we want to you

know buy it as soon as it it runs through that range and don't worry about going you know the high or the low because you know if it breaks to that range well then the bottom of that range gives you a nice area to place your

stop. So, you're not taking,

stop. So, you're not taking, you know, dollars of risk. You're

taking, you know, you know, whatever.

Yeah. You're taking less than it, right?

depends on, you know, I was trying to, you know, say 50 cents, maybe it's 50 cents, but yeah, you know, some some of these stocks have, you know, a little bit wider wider trading ranges, but so it kind of, you know, what they

they've said is, you know, 70% of the time the stock is just in range at least, you know, and that's happens whether it's on the, you know, whatever time frame you're using. You know, it's

going to be on the weekly, 70% of the time it's going to be bases or whatever, daily, you know, or 10-minute chart and then it's on the day. But you kind of it's very rare for a stock just to trend

all day.

Yeah. Process-wise, especially for a fish hook, um where where are you setting alerts or how are you making sure to notice when a stock is, you

know, pulling below the range it set in day one or about to test the top one?

Are you just sending alerts or are you only watching two names so you can really track it? Well, what are you typically doing? Well, the first thing

typically doing? Well, the first thing is you need to be able to catch your process needs to catch those gap ups, right? And then if it gaps up, you know,

right? And then if it gaps up, you know, I'm not necessarily looking to buy the gap. So, I know I've got a whole day to

gap. So, I know I've got a whole day to figure out exactly, you know, where it is. But, you know, if you want to look

is. But, you know, if you want to look at an example here, um, let's take a look how we say Nike. Now, I'm looking at this, right? We have a nice, you

know, big gap up. Um, you know, is it the best? My hesitation on it is look

the best? My hesitation on it is look there's a lot you know this between 70 and 80 there's a lot of you know price action there's a lot of overhead so but you know there's a lot of volume here this is the biggest volume in a long time in

Nike so it's something I'm I'm interested in you know if I were going to say the high of the day or even the close of the day you know those and I' you hear a lot of people saying well once it goes over

that high you know you're buying at 75 um does that does that look great so for me I'm looking at Yeah, we went above here, but we came in, we touched, you

know, most to me from that 7253 and I probably call it 7250 is the the level that I'm most interested in seeing price trade above.

Right. And you know, once but below that, it's not really official. It's not

really in in go now. You you're seeing some, you know, I guess demand here at the gap, which is which is good. So you

you can, you know, maybe you're thinking if you want to try to cheat and take a little a bit on it against the gap, you know, that can work, but it's not a the true, you know, I guess fish hook.

Um, you know, you're really looking at something that's that we think is just ready to to launch. Um,

you know, so that's kind of real like so I mean I here so I'd have my my scanners for anything that's an EP you know I mean and I this is all based

on like a kind of a like sigma move or you know a standard deviation like how I've done it. Um I don't it's I mean okay now what's going on in this

one I you know I I have no idea but this is you know pretty interesting right? So

let's see how is it the trading you know I guess we have a little let's see how it closes but it's 1406 you know maybe and then

and then we can see that's kind of been you know an area of interest because we're stopping here you know it's got acorist right here you know keeps rejecting but when it builds above that

level it it you know it goes over you know 15 or 16 now this is this a stock I'm interested in trading probably not I mean to me it it you know a stock that

takes from, you know, how many days to go a down and a half probably isn't worth our time.

Um, but this type of bar, you know, is interesting. It's Yeah, I mean, it gets

interesting. It's Yeah, I mean, it gets my attention. That's a s, you know, I've

my attention. That's a s, you know, I've got, you know, on the bottom panel is like the standard deviation and it's a, you know, a six standard uh, move here.

So, that's that's something that's it just it stands out. Um, so I guess, you know, that's kind of what I would be in my process. And obviously it's not

my process. And obviously it's not earning season, so we're not going to see a lot of uh of that type of type of stuff.

Yeah. Do you mind actually going to szle? I don't know if you can go all the

szle? I don't know if you can go all the way back uh to the 10-minute there, but it was a good example of a range forming end of the the trading day, I think. And

then No, actually, this one pulled back more. It didn't get too tight,

more. It didn't get too tight, but this this is when I took those.

Yeah. So, here's how this is maybe I can I don't know if I can get a 10 on it, but uh Oh, I can. Okay. Now, this is a stock that, you know, has shown a lot of power, right? you know, it's it's early

power, right? you know, it's it's early in the last year gapped up kind of to 70. Um has done it again. I mean, the

70. Um has done it again. I mean, the problem with these uh stocks when you've seen that they make big moves, you kind of hide the uh the real move, right? Or

the so we it kind of runs and launches into this this level where it previously found um supply, but it was a big move.

So, but I I'm thinking, okay, here's a stock that has has shown a lot of power in the past. Um, or, you know, has that ability. So, if it clears this this

ability. So, if it clears this this level, it's it's going to be a pretty uh good chance that it's going to be could run a lot higher.

So this is, you know, kind of where I'm looking at that that 75 level, you know, where it previously had had come in and that tended to be the kind of the opening and I think it was about the

close of the the first day, but it actually gapped below it or maybe I don't know if it gapped, but it it traded below it very shortly and then immediately back up. But I was buying it

um you know through I don't know 77 78 in that level and in that you know just kind of that knowing that it's situation that the 74 level was where it

previously topped out on and it's now it's showing it went below and it there's demand above that. So it's

something I want to be in.

The problem with silo was a it was kind of a thin stock. I mean, I remember the spreads being I mean, I I I bought, you know, a fair amount, but it was, you know, kind of the amount where you're like flipping on a bid in the ask and

you're seeing some pretty uh uh they changes the numbers, but you know, wish I could have held on to it. Um but uh it kind of felt like it was, you know, the

market uh was giving kind of mixed signals but yeah. Did Did you take Dave at all that

yeah. Did Did you take Dave at all that that same day? Uh

I did not. I It's one I've been tracking. I've just never, you know,

tracking. I've just never, you know, found. Dave has been hit, uh, obviously

found. Dave has been hit, uh, obviously just a great stock this year. Um, you

know, we had had that bot. I mean, we had this kind of reconsolidated here um and reversed and and ripped. Um, but,

uh, yeah. Um, did not take that one unfortunately.

Yeah. Um, LEU on the gap up um wicked wicked down. Well, it didn't wicked

wicked down. Well, it didn't wicked down, but like uh the original gap up down a little bit above 100 right there.

I remember off the morning it like dropped immediately, found support. Um,

so yeah, you're kind of uh you opened right where the top pivot was near 11483 and then it immediately dropped and pulled back. Yeah. I don't know if you

pulled back. Yeah. I don't know if you can go back. Yeah, I'm pretty sure I remember that right.

Yeah. So, I mean, how I guess how you would draw it, right? You know, it it b you know, so I would draw like a pivot line on the the bottom of support and kind of where you know, you know, it spiked up but then it wicked it wicked

below. So, I'd be looking at like you

below. So, I'd be looking at like you said, uh, you know, that 114 80, you know, 115. Maybe maybe you hit it, you

know, 115. Maybe maybe you hit it, you know, if the tie at 118. I mean,

I've traded this one in the past. I did

on the, you know, back early in this year. I did not try touching this one

year. I did not try touching this one because I know it's a wild it's it's wild. Um, but, you know, again, it's

wild. Um, but, you know, again, it's been a people who did did very very well. You know, you hit that kind of

well. You know, you hit that kind of that 100% move. Uh,

yeah. Uh any others that come to mind as good examples of drawing pivots, ranges, high low, or uh I think we've shown a lot, but up to you if there's another good example. Yeah, certainly. Let's do

good example. Yeah, certainly. Let's do

Yeah, let's do kind of an IPO level because I think this is one is is interesting.

Um so we had, you know, kind of a this IPO is like, you know, there's always one that runs when nobody's, you know, really watching it. And so this is the

one that, you know, came in, you know, and they're gapped high. And you know, for me, if I get an IPO or a stock that starts like with this type of move, you know, that's interesting, right? I mean,

that tells us that there's a lot of demand in this one. So, this is something we really want to be starting tracking, you know, pretty closely. Um,

I uh, you know, and where did it find support? Like right around this kind of

support? Like right around this kind of 100 level and you know, then in in here 111 or whatever. that's so it um comes in finds you know so we gap up and right

the stock is either going to collapse at this point you know as they they ran it really high and the fact that it didn't the fact that it was finding support really at this gap close was very

interesting you know to me um but then you know so then if I'm drawing up the pivot line you know we had the levels where it it kind of just you know it always struggled above this this point

is kind of put a support you know level as Well, and then it kind of but it's struggling, right? So then it, you know, kind of has

right? So then it, you know, kind of has a one last flush and then undercuts that uh what is that uh about, you know, comes in about I think probably just above 100 and then it starts getting

tight again. And that's really strange

tight again. And that's really strange when a a stock that you know had get you know done this type of this move gets tight, right? Right. I mean, it's,

tight, right? Right. I mean, it's, you know, you don't necessarily see it on the uh on the daily, but you know, if you got on the smaller time frames, like

when you're trading like this type of, you know, tight action, when you have a a stock that had really almost, you know, doubled, you know, from the open, that's something that you really want to

get in. And so I'm like I'm like, so

get in. And so I'm like I'm like, so this is my my top buy. I'm looking I'm like really gearing and it it goes up then pulls back and then pushes that through and then I'm like ready to buy this thing. I'm like you know I got to

this thing. I'm like you know I got to leave in five minutes to my kids uh eighth grade graduation here. So I

didn't buy it there but uh um you know it did just launch from that point. You

know it came in through uh you know 125 set again and ripped again. Um I did it you know it did have a few day trades on this one you know where it took out the new high like I bought it right here you

know when it took out this high. Um, and

then I I did buy it through a hundred or or I guess through 200 the first time and then, you know, just took a, you know, $10 move on it. But listen,

if if you bought it at that original spot that you were watching, where would your stop have been just to show an example?

Oh, great. Yeah, cuz I I if you notice, I had the green fish bar there too or slingshot bar there.

All right. So, I buying here I would have been at 108, right? you know buying 111 stop at 108

right? you know buying 111 stop at 108 right at you know kind of the after that you can say it better right here right so you know this is the kind of right you first thing in the morning spikes up

and then it test checks down right it holds that kind of the low and then pushes back through that you know that first uh that 111 you know level um so you know you can have a really

tight stop on that and um particularly for this type of stock it would have been very good and I'm dreading it how much money uh I missed because of Yeah.

Yeah. Yeah. No, but the IPOs have been great. I know. I know you'd like to

great. I know. I know you'd like to focus on them when you're in Vogue. Um,

yeah. Hinge has been good. Um, by the way, I just want to mention for folks, CRWV also had that initial strong move the first few days. I think it pulled back one day and then pushed pushed

strongly, you know, almost uh, right? Exactly. Yeah. So, and this is

right? Exactly. Yeah. So, and this is something that you should be looking at, you know, anytime like an IPO makes a a strong move. You're not trying to get

strong move. You're not trying to get that first one, two, three day move, you know, because there's so much, you know, price dynamics that need to to work them way out uh before that happens. But it

just tells you like this you really should be watching closely. I mean, I I think ETOR is one I'm I'm kind of watching closely. um you know it looks

watching closely. um you know it looks like it's forming a base but you know this the the move between um you know 60 to went up to like 80. I mean it tells us that there's some power here right?

Um you know it still hasn't I think it needs to really start building above this you know kind of level where it's been growing a lot of wicks before it's really ready to go but it's certainly something um you know I think I own a

bit of it but I you know I'd like to get bigger into this name.

Yep. And did did you have something you want to show on on Hinge? That's another

recent IPO.

Oh yeah, sure. Hinge is uh something you you know we had the the recovery obviously but anytime an IPO um takes out it's kind of that initial what that

initial high level.

It tells you that it's really in motion and that's you know something that you really want to be at least looking at.

The the struggle on a lot of these IPO names is they don't necessarily trade a lot of volume at at the front so they can kind of kind of be whippy. Um, but

you know, this is one that I I did buy um, you know, as it kind of made that new high and um, you know, I guess I can check, but I I had a um, a trim order today. We'll see if it got hit or not. I

today. We'll see if it got hit or not. I

think it was a I hit it somewhere in the 52s. So, maybe it's a good guess. Maybe

52s. So, maybe it's a good guess. Maybe

I still own all of it. Maybe I don't.

Um, but that's, you know, and then the other thing I'm I'm noticing about this this hinge is when it tried to pull back and, you know, throw an arrow right

here. Um, you see how it held that that

here. Um, you see how it held that that very that that IPO day like that tells you that, you know, there's demand there.

Um, so that was like another kind of a confirmation signal for me that I want to be, you know, in this name and in in it uh uh for a bigger move.

It was Did you I picked this up on the slingshot or uh elsewhere?

I picked it through the new the new high new high. um slingshot. I was watching

new high. um slingshot. I was watching it and honestly it just didn't seem to have enough volume or you know stuff and like IPOs can be very whippy if you don't um you know have it. I mean know I

know there was another one was a chime um you know and I was watching okay you got a slingshot here but even like you know like I mean it would have been a great move today. I mean, I I saw it here and

move today. I mean, I I saw it here and that it was had the alert on it and stuff, but I'm like, I don't know. It

just doesn't feel as is as robust as, you know, some of the other ones just because, you know, one sell order and and an IPO can can can sync it pretty quickly. So, you got to make sure that

quickly. So, you got to make sure that there's actually demand, not just manipulating the price action. Um, so,

but obviously you So, I got a window here where I'm basically put every IPO on it and, you know, kind of see how they they develop and they fill out. So,

anything that you know has uh shown some strength or something is something I'm going to I want to track.

Yep. Excellent. Um this has been fantastic. Any last um key points that

fantastic. Any last um key points that you want to make about the pivots um or using them in combination with your other two setups? Any last key takeaways

that you want to make sure everybody watching kind of walks away with today?

Sure. I mean, I I just think, you know, looking at your t your charts on multiple time frames um and seeing how they address, you know, the levels, I think there's a lot of information that can be um derived from that. I think

that's, you know, that's something that I I felt is up my game a little bit than just uh um you know, taking the kind of this the simpler, more simple approach

of you know, that I I had been using. Um

but I think it's you know think of the market as kind of an auction process is you know do the buyers or do the sellers have control and you know where are they going to where they where are they

likely to sell or continue buying or buying continue selling you know and that's kind of just how my my process has evolved you know if I'm happy to address questions is you know I'm on

Twitter um you know it's it's been a great community there and it's been you know it's been fun fun seeing you grow actually you know you know how how long have you started this you know and you've uh

interviewed some of the best uh you know minds in this and yeah I mean my my first trades were in late 2018 took the class in 2019 and then started interviewing um in 2019 I

think uh Leif uh Sera was one of the first um but yeah no and yeah yeah and I I've learned a ton from you on Twitter so it's cool to see this refinement that you're making and again

if you enjoyed this I really would suggest watching um Scotland's first presentation on developing a setup and we go into a lot more detail of the the fish hook there too. So um you know this

was fantastic. Thank you again for your

was fantastic. Thank you again for your time. Uh and hopefully everyone watching

time. Uh and hopefully everyone watching got at least a few key takeaways and uh yeah, thanks again Scotland. I

appreciate your time.

Absolutely. Thank you Richard.

Awesome. Well we'll be right back with the next speaker. So stay tuned and uh make sure uh to check out Scotland's Twitter and uh we'll be right back with the next presenter. Stay tuned.