10 Steps to Trading Trend Days (How to CRUSH It)

catching a huge trending move can make your whole month and sometimes even your whole year but how do you know a trend is likely coming and how do you enter this trend early and maximize your profits during such a move you'll find out in this video we are proprietary trading firm in New York City with numerous highly successful Traders almost all of whom started their trading careers with SMB we hope you find this channel to be a terrific place to learn and grow as a Trader [Music] foreign part of being on the desk is the

feedback the discussions that we have about different specific trading situations that arise through each month for some Traders these special situation trades can become a huge boost to their p l almost like a bonus offered by the market for those that know how to prepare and identify for it here we're sharing an inside look at a discussion we had about Trend days in it we cover 10 key points one identify a catalyst that surprises the market two utilize technicals to assess the potential of a trade three utilize filters and and ETFs to find what's leading

the market four Market internals five execute and manage trades in a trend day six risk accordingly seven maximize the trade with the info that's provided eight stay with it we're going to talk specifically about the afternoon pulling trade nine identify trending price action early in the day and ten where to play stops during a trend day we went through and created chapters for each of these 10 things below so feel free to skip around and use this like a resource towards building out your own special situation Playbook we've tried to lay this out in a

way where we kind of break down our idea of setting up a trend day um with an example which would have been last Wednesday or last Thursday um the CPI print and the PPI print um and look at it from how we deconstruct a new Catalyst to be able to decipher whether this is something to look into for a trend day um and then from a technical standpoint what would we look for out of a stock to see that it's going to be a trend um and then what can we decide from the Catalyst to

understand what specific stocks to trade um and then sort of moving a little forward would be what trades are we looking for how does this set up what is our execution strategy and what are the patterns that we're going to sort of use to build into the trade as it develops throughout the day and then finally just at the end some examples of execution is how we see them um and sort of breaking them down overall just from top level um we look for a large macro Catalyst I think the bigger the Catalyst for us

would mean the more surprise it is to the market so the more the market has not priced the Catalyst in um would give us a bigger reaction um in a in a trend that we would be looking to take advantage of so specifics obviously 11 10. the construct of this year's Market regime has been the way around inflation how I how high will interest rates go you know that's the projection that we have seen everybody taking is when does it stop and there's been a lot of uncertainty around that and then I think finally the

CPI print came out and showed that you know inflation uh raising interest rates has done its job and this is kind of the first data point that said inflation's come down um job growth unemployment's gone up like we've we've got these as kind of a line in the sand that says finally it's done something maybe we don't need to go that much higher and I think that for us was just a trigger point that then turned a lot of the uncertainty and said okay we've got some concrete data points that are in our favor and

maybe that is a specific scenario where funds want to put some risk on um because it's such a change to the sentiment we were expecting funds to sort of be aggressive that day and Chase um and it is the big money that we're looking for um it is the ability to find the big money in stocks cattle as stocks across the board so that they create those cleaner patterns they're less sort of algorithmically driven um and they just make it a little bit easier for us to sort of follow Trend um without getting chopped out

or unnecessarily reacting to something that's not really there so from our standpoint just finding that really big macro Catalyst that is a complete change to the sentiment is sort of the first go-to and I think that's obviously the market level we can project that down into just individual stocks which is if their stock com if a stock Catalyst comes out in the future how well does it change uh the sort of sentiment shift of the stock and what big money are going to do with it um so that'll be our top level starting point in

terms of tickets for this specific Catalyst obviously every catalyst is going to be different as I've said um but just our understanding of this Catalyst was okay so start market indices are all of a sudden in play we're in a situation where saucepies cues now small caps are all pretty beaten down and maybe there's an opportunity to get some good risk reward for the big big funds um so first Port of Call if you look at market indices second we've got then the high beta stocks they're going to be a little bit cleaner sort of

less prices that they touch and maybe we have some cleaner levels that they'll respect so we can look at finding those High beta stocks that trade a multiple Market uh every day and sort of gravitate towards them as a cleaner way of trading um spying cues and then just some other opportunities would be um given that the change in sentiment was the upside and we're in we've been in quite a depressed situation let's find those stocks that are potentially have a really high short float and that we can see those exponential moves maybe as momentum

Traders dive into them then we get the big funds and then we get those that short covering squeeze um in this case just the treasury bonds TLT would be our use and just how interest rates rise TLT would go down and vice versa in this case if interest rates are coming off then we'd look for bond yields to push higher so that would be another example of something we could trade US dollar given the strength in the US dollar just if money's coming off the sidelines and actually being put back into the market maybe it's

an opportunity to because short the US dollar and then the other side of this is if we're going to hedge against the US dollar maybe Gold's a good um thing to trade as also just if investors don't want to go full risk on and they want to put money to work but maybe not in the most risky assets of the market then maybe gold is also a good um product to trade with that in mind so yeah based on the 1110 Catalyst they these were our sort of go-to ideas out of the gate of just

what we could trade that day then just looking a little bit forward on what the technicals would be when we first pull up one of those products what is it that we look for on a chart um and you know I've highlighted in green stocks with room to Trend I think that's the biggest thing is where does it sit on a daily chart where does it sit on a 60 Minute chart most importantly is there um to move is there are we breaking ranges is there space above if we're going long um where there aren't

necessarily going to be resistance level where there are sellers sitting out because our goal would be to find stocks where um one side Supply or demand is just drastically in control it gives us just a little bit more room um and a little bit more bias in that sense um to really build a bigger position in that Trend and just let it move so that was our sort of Top Line based on technicals but then there are other obviously another other few things which we would take less um seriously which would just be severely oversold

stocks that are going to bounce um stocks with some clear levels to trade off of maybe break in recess maybe we break you know a range and come back and retest a sort of nine ten out of 10 level um that we can defend pretty clearly um volume we'd want yeah clear directional volume and size predominantly done on the offer not the bid um I think the best for me the best way looking at these trades is they're not necessarily overextending but they are just grinding all day um and with that just that grind is

holding EMAs um the most important thing is to you know see the bigger picture here and not necessarily trade the one minute chart and trade the five minute chart and just manage it off a five minute position and for me that would mean making sure the trend is intact on that five minute chart so if I personally look at 9 and 20 EMA just make sure there's um a lot of Divergence between the two and maybe they converge later on in the afternoon when we get a big consolidation but most of the time the nine

is above the 20 and the stronger the trend the more we respect the nine um you know if we're going to respect the 20 but most of the time we respect the 20 at least um throughout the day unless we get a pullback to view up and maybe squeeze through but then get back above and continue holding them so that's what we look for from an EMA's perspective a following perspective and then finally just the tick you know we've noticed these Market strength if we're looking blanket-wide at the market um we have strong thousand plus

ticks steady sentiment not seeing many texts below zero not especially not below 500 and just steady strength throughout the day um is what we'd look to see on a technical level yeah this is really great first of all um but I just I just had a couple questions because you touched on some key points that I think um are probably worth like getting into more but like you talked about like the reasons the market would go up when you were talking about the fundamentals right and you mentioned the big players um which is which is

absolutely true like you know we want to be looking for that um and and you also mentioned when you're talking about searching for the types of stocks like there's High beta you also mentioned the highly shorted stocks um so like given all that if I if I were to say like there are two there are two main reasons why the market can rip hard for one or two days I'm not talking about a quarter or a month um but I'm talking about that you know we're trying to capture a trend day right so if we're

even just talking about one day if I were to ask you like what are the two reasons it can rip I mean you already mentioned one which is um you know the the big players are positioning uh they're actually buying individual names what would what would be another reason why we could rip probably just a lot of people offsides um yeah yeah a lot of people shorting and having to unwind big positions right and in that case if that's if that's one of the reasons um you're probably going to see those highly shorted stocks squeezing

and so like what one of the things that I notice is that with these Trend days sometimes you know each Trend day will have like a different nature right you have your Catalyst and now you're looking at the whole market and you're kind of saying you're kind of asking yourself okay you know is is this the the Beaten Down junk stuff that's that's leading today or is it high beta or is it relative strength that's leading today and sometimes that can can highlight something about the day because one of the things that I remember is

like I think on day two it was all the junk that ran really hard and by junk I just mean the beating down stuff the arc stuff um like the shopifies and stuff like that and uh and a lot of times that's kind of an indication of a short squeeze or even even a bear Market rally um as opposed to Quality names you know getting bit up and bit up and bit up um I'm not saying this was fair market rally because everything went up um but uh but I think that's a really important factor

because the day before the CPI came out if you looked at the put call ratio it was extremely high and I don't know if you remember but we sold into the close that day on pretty light volume on a very high put call ratio so people were positioning short and they were buying puts into this print whether that was you know hedging going on or people were actually bearish you know it doesn't really matter but but I think sometimes a little bit of color like that can add fuel to the fire when you're when you're

planning that that next day perfect that's something I will add and certainly keep abreast of as we go forward here if you want to learn three real world setups that our professional Traders use including the simple but highly effective setup that we teach all of our new Traders and the setup that turned one of our Traders into a seven figure big money earner check out the free online trading Workshop that we're currently running this is a hundred percent free intensive Workshop where you're going to learn more in a couple of hours than from years of

online education so don't miss it Eric are you taking inventory of these things as the morning progresses and looking for a trade in the afternoon or is this something that you're already thinking about before you're coming into as far as the as far as what so like the beating down names are you scanning the markets for like what what is leading um yes and I do that every day but especially on a day like this so I have a filter um in fact our whole team has it and it's super simple you guys can build

it very easily um and it just it takes all the sector ETFs and even different asset classes like TLT the dollar gold stuff you've mentioned and it will show the percentage above or below the opening print and then it will also show the arval and so I can rank this and then I have it color coded so I can just see it really easily but you can rank it by arval to see like which asset classes in which sectors are in play and then you can also rank it by above or below opening print and

how much and that that can tell you what's leading for the day at least since the open right because the Big Money Can't they're not really executing in the pre-market as much so you know it's really useful on Gap Downs Gap UPS stuff like that to see okay like what's getting bought since the open and so for for example um I'm pretty sure on day two of this trade that you're talking about Arc was like right at the top of that list and so when I see that I'm gonna then go through and I'm gonna

check out you know the shopifies of the world and and um pltr and like all that kind of stuff um does that make sense yeah that's that's very interesting you know and it just makes it so much easier and I find myself cycling through and probably wasting a lot of time when I can just look at one filter and it can tell me all the information I need I see you having the tick there but are you using the advanced decline line at all it's a good point I personally don't because I do not get

it through Dash Trader which is the software I use um okay um but I know a lot okay yeah so I think that you could probably get it on trading view um or a thinker swim account you could open up one quick but this has been really helpful for Trend days because basically what it does is it gives you a line and it shows the number of advancing stocks minus the number of declining stocks and just from taking a look at this every day I have it up with my market internals um you just get

to know it when you're looking at it every day and what you'll notice is that on Trend days uh you know like we saw with the cooler CPI it was pinned above 2000 and I just know from watching this every day that that's very very rare um and it was actually pinned at like 2700 which I don't think I've ever seen um so that was a huge indication to me like on a day like today of the advanced decline we gapped up so it'll open up at like 1500 um so there's 1500 more advancing stocks

than declining stocks right and then it kind of just moves around and now we're at like 700 and for most choppy days it'll look something like this but on a trend day when big money is you know buying stocks you'll just see it above 2000 and you'll see it holding above 2000 and you'll say to yourself well you know just from looking at this every day this is a rare occurrence it's not budging it's stuck up here so that is another indicator of really strong strive yeah and it's kind of breadth right I mean it's

Market wide you're seeing that that's huge what what he's saying is huge it's really really huge even on days where there's no catalyst like what he's saying is huge just having it up looking at it understanding what's going on yeah because every day has its own character to it and nature and so sometimes it's just as valuable to understand what not to do as understand what to do and obviously we have a huge Catalyst here and we're talking about like a very big opportunity so we're very focused on you know what to do here and

in the signs of it but as we're trading you know throughout the days and the weeks you know there are a lot of days where you know things might look really strong or things might look really weak and there are characteristics of the market internals whether it be the tech or the advanced decline or the the vold reading which is the volume flowing into the up stocks in the down stocks that are indicative of a trend day and it doesn't mean if you're getting these things you're going to get a trend day but like pretty

much you know the all Trend days have these characteristics right so you're not really going to get one without them and so um so if you're if you have an inclination that it might be a trend day but but these internals are are really not confirming that um it's gonna you know you the odds are are not in your favor and so um so I mean Justin just touched on one of them which is a really powerful one and I think you know there's there's more like you could you can go further into the internals

and find more that will highlight the likelihood of a trend day or not yeah and I just think I know this is based on special situations and Trend days but what Garrett is saying is like so key that you could have a bias and think for whatever reason that the market is going to Trend today it's going to trade up you know the pattern in the morning looks really strong and then you take a look at the tick the advanced decline of old ratio and they're saying something totally different and that could just keep you

out of so much trouble um and it's really powerful when you have an indicator that's telling you not to trade and telling you that your bias is or your thesis is probably wrong while we're on the subject I don't want to bog us down too much but I just think this is so important um and you guys touched on this really well here you're talking about the tick right because not only did you talk about the very strong thousand ticks but you talked about the negative ticks being shallow and I think that a lot of

times people are focusing like too much on the upticks uh you know say in a strong market and not enough on the downticks right like they want to see you know really positive ticks or or to see weakness you know you really want to see a a really negative take but but look I mean on a really strong day with strong breath a super negative take is a screaming by and on a really weak day with weak breath a really positive take is often a screaming short right so um just because you get like it

one outlier tick it doesn't mean the whole Market's gonna shift right it might it might be a stop run it might be um you know everyone just for a moment like getting on that side right and so one of the things to to kind of expand on what you already said about the tick if you are seeing what you're talking what exactly what you're talking about which is the ticks are holding above zero and you're getting a lot of strong ticks and they're not really trading below negative 500 like that's all great but I would

add to that like watch the low ticks like look at your tick mark the bottom of the range like there's there might be three four five ticks that got down to say negative 600. and that seems to be like the outlier tick to the downside so every time the tick now comes down to that point watch price and ask yourself is this that is this holding support still is it at a high or low has anything changed with the trend or the price action and if those if those really negative ticks keep getting bought like

immediately then that's just gonna continually confirm to you that you are in a strong market and things are are acting as they should if this is going to be a trend day yep that's awesome since we're um talking about the tick and price action relating to the tick I'm just going to jump in with one more thing um something really interesting to look at is for example we had um a news Catalyst and the market was very volatile I'm having trouble remembering which day it was exactly but you know we were down like three percent

on the day or something like that and we got a negative 1500 tick and like that is super rare and then we you know the market kind of exhausted and it bounced and it went from negative 1500 to a thousand and on that bounce um the Spy moved up two points so that's a pretty big move but later on in the day we got back towards that low and we were seeing negative 1200 ticks um and then the tick went from negative 1200 back to positive 700 and the market was only able to balance like

20 cents um and that change in the price action I've told me that the selling pressure was even stronger um and that like allowed me to put on a short so it's like little nuances like that yeah really fine details eh really fine details on a trend day like these those you know those ticks should be able to be bought so sometimes that's just a great way to like Justin just pointed out a way to put on a trade you know tactically if you're you know you have all your information and your thesis and everything's

lining up and then that that can be a really great tactic in order to um you know to add to your positions or or whatever whatever you're trying to do when so when we have a day when a certain sector is in play and say the market is not uh overly in play would you have less weight in the ticker that's a that's a that's such an interesting question and that's really really great question um so what you just described as a rotational day so you know you have you might have one sector that's getting

bought you might have others that are getting sold and typically on a day like that the market is going to be like I mentioned earlier you know every day has its own sort of nature to it like its own character and and typically a rotational day is going to be a range day it's going to be a day where you know if we sell down into support maybe we bounce off support if we rally up into resistance maybe we come in um it's going to be less clean all day in One Direction typically and you

know you can go and look at all the sectors to see that kind of rotational day but you can also look at the tick and see that it is just generally not trending like you for this trendy you just described um the fact that the tick is generally holding above zero for this trend day which is a great observation but you could also look at the tick on a rotational day and the tick is going to be wide and above zero and below zero and above zero and Below Zero and it's going to be messy

and so that in and of itself is going to give you the information that you know we might be having one of these rotational kind of days or an inside day or a range day and you know I might want to change my perspective to fading extremes or not looking for a trend or or just not not trading the market and that's that might show up in the advanced decline as well like you might see that the advanced decline is just inside 500 on either side which is very benign right like positive 300 like who

cares and the vold reading the ratio of volume flowing into the up stocks versus the down stocks is going to be like a 1.3 to 1 or something again like something very benign and so when you look at the internals like sometimes you just see all these benign readings and that right there just tells you that we're kind of having like a nothing day right and so like like we talked about earlier like if I somehow think that we're gonna have a trend day today um if I start seeing that stuff in the internals like

I'm gonna have to really check myself and make sure that other things are lining up like so well because you know the odds are against me so so yeah like to answer your question I would still be looking at the tick um and I'd be gleaning information from it but that information might just be like what you said you know there's there's one sector that's in play the rest of the markets not we're having a rotational day and I'm gonna have to adjust like to that I'm always looking at you know the tick you know

I might not so maybe to answer that even more clearly like on a day like that yeah like I'm not gonna be analyzing like every tick you know what I mean like I'm not gonna be I'm not gonna be trying to like execute off of you know high and low ticks because the type of day is it's not it's just not as clear the tick Advanced Decline and the Vault ratio those are three things that never leave my screen they're just like they're permanently and like if you're looking up a tick and it's like today

it's between negative 600 and 600 um The Vault ratio which gives you a ratio of volume flowing into up stocks versus down stocks based on the prior close like it's a one like that's just going to tell me that today is a neutral day and I shouldn't be thinking about you know if we break highs we're going to Trend or if we crack lows we're going to try I'm sure it could happen but it's just telling you that the odds of that are highly unlikely three things that are to really focus on to give you

strong to give you a better understanding of just Market internals and then just increase your odds of making a better trade right and before we move on to the next slide I think you chose the wrong people to do this stuff and we have so uh just one more thing like I know that when we mentioned you know the price action in regards to like the tick just one thing is that you said like oh it's very specific it's and that's that's the only reason why it has Edge because it's so specific and there other

people aren't looking at this stuff that's what gets it Edge right so it's just something to think about thanks guys I appreciate that um I'm definitely gonna add that all in to carry on here so execution strategy obviously there's I think three different execution strategies that we're taught uh at s b and these would be those three um just based on what we're looking for like scalping will present a little a lot of good opportunities but it's not necessarily the way you want to go in a in a market Trend eh um move to move

similar I think there are some really good Mark movement move opportunities but again it's not necessarily the way we want to trade this and the way we want to trade this would more be a sort of trade to hold managing it on those larger time frames not the one minute chart so that we're not just affected on crazy candles or so and so forth and reacting to that and just essentially being able to build bigger positions uh increasing your upside keeping your downside the same um and just being able to see different patterns as they

evolve and just slowly add into a position and hold a call to the end of the day um most of the time I say this um with beta breath but these Trend days if there really is the strength of the market that we want to see they will close high of day and we want to be able to hold as much of a position into that as possible um there are times where they fail and I think we have to be aware of that so that we still capture some profit and don't leave it on

the table if we get a you know the odd fade at the end of the day or profit taking or so and so forth um but most of the time our goal would be filtrate the whole positions take profit using most to move a percentage of it but really hold a core for most the day and manage this on a five minute 15 minute chart any feedback on that that's great I mean I I like how you identified like what is good for you right like there might be a Trader that just crushes move to

move trades every time they identify a trend day because that's what they do right it's not that they're the the those trades aren't there but I agree with you you know that's I think this is a this is why we're trying to find a massive Trend day this is a trade to hold so I think that's great I mean Jeff and I were talking about this the other day and we were just kind of laughing about how and I don't mean to understate the execution of it because it is very important and it and it

is not always easy because you have to find places to buy uh with good risk reward and you have to you know continue continually assess the situation and and be able to hold so I'm not downplaying this at all but but Jeff and I were just kind of laughing that it's like 99 of of this Playbook is identifying this trend day in the first place right because now we know what to do which is which is hold um yeah exactly so I just think that like you know the more energy that we all put into

identifying the trend day and being able to continually identify it and so as the day as the morning moves on and as the day moves on all of these checks are adding to our thesis um the the easier the the execution part will will become um so you know I think you're I think you nailed it but I just that that's what I that's what I think no that I think that's a great point though uh 90 of this is actually identifying the trend day and then there is finding those little pockets to sort of

and you know it's not it's not all um it's not all in the pre-market right like it's it's at the open it's in the morning it's after 10 15 10 30. um it's it's the midday and then it's like where we are at two o'clock there are all these checkpoints where and you're looking at like how these low ticks you're getting bought and and how the price action's holding up and and um I think throughout the day like sometime there's there's certain trades that can be made based on these checks falling in your favor right

so you have you have your pre-market idea because there's a catalyst there's volume you know everything everything lines up to be a potential Trend day and then maybe the open confirms right so you're getting long um and then there are some pullbacks you know on some deep deeper ticks that get immediately bought so you're so you're liking that right we're holding above the opening range you know there's ways to to buy that and then and then we get a run in the morning and then you know midday happens and things start to slow down and

maybe we get you know a deeper pull in like on lower volume that doesn't really violate any like uptrend levels and so now there's like another trade decision and so you're looking at you know okay the internals are still holding up like the the advanced decline is still 10 to positive 2 000 like all of these you know we have wide breadth like the high betas going like the beating down stocks are going um you know I might want to add on this pull in to position into the clothes and and so um it is

a trade to hold but for for me at least there are sometimes there are like many uh points of of execution like within that if that makes sense so let me ask you this question then because I think this is something I I'm trying to understand myself obviously you have three pretty strong indicators to identify a market treat the whole day right at a market Trend day what about individual stocks is that do you how do you look at that in thinking hey this is odds are this is a trend day in my favor the

question is about individual stock yeah so looking at Market Trend days we obviously have to take the you know vast decline line uh so on so forth which really sort of give us a key into the overall market and the strength in the market and which leads us to the decision that I'm leaning towards a trade to hold we have the Catalyst within ranges so how do we extrapolate that and really project that onto an individual stock that has a catalyst it's breaking a range and how do we get some extra checks in our favor

or how would you look at it as thinking I think this I want to be in this for a trade to hold is there anything further than just it's amazing Catalyst sectors are sort of strength strengthen its favor it's breaking out of ranges the oval's there um is there anything else that you would look at to be able to make that decision that's such an awesome question and I mean we could do our we could we could do an entire meeting about that question um but yeah I mean an individual name with a with a

catalyst and high volume is going to have it should have independent order flow right so in a way like it should be way stronger than the market but the market environment matters to these breakout trades and the group matters like the sector that it's in and I think you just mentioned that right so I'm still going to be looking at the market on that day because you know we have the overall environment like are we in a bear Market where breakouts aren't even working period or are we in a bull market where breakouts are working

right and then you have the current state of the market right like um like is is today strong or not are we just maybe we're having maybe we're having signs of a downtrend day in the overall Market where I have in my morning prep like two really good short ideas and two really good long ideas well I'm probably gonna lean towards looking at those short ideas if if I'm seeing that the overall Market is lining up for like a downtrend day um so it it does help to have that that wind at your back I

think and to be able to identify it but but it's much more of like a Nuance to the to the trade when you're you know when I'm trading like a in stock with independent order flow um does that Justin do you agree with that does that make sense yeah definitely I mean I think you hit the nail on the head I don't have much to add there let me ask um is it good enough to not necessarily have the market at your back but not going against you if that makes sense so if you have

the independent order flow if you have the breaking ranges everything's checking the box for you this could be a trend date to the upside and the Market's just as you've said just sideways not really much going on we're not espec you know we're not weak I I is that something that we can say great the market hasn't really there's no real factor in the market here my trade to hold is is you know the probabilities obviously aren't as high as the Market's trending up but it's not going against you which is a somewhat check in

your favor yeah yeah I mean if we're in an overall environment where breakouts are working and if we're in a strong Market where breakouts are working and breakouts are working on normal days then absolutely that's enough um you know just because the Market's having a quiet day doesn't mean that something with a huge Catalyst can't run I mean that's absolutely enough right and sometimes even these catalysts will go against the market because they have such independent overflow right so like you know assessing the Catalyst and and the arval and how independent is this of the

market is a um question in and of itself I think for these for these individual trades but you know for me it's a bonus if you've got the the market with you uh but the overall environment like really matters right like in and that could just be like the kind of week we're having right like what if what if like CPI just just happened we just got a huge move now we're getting some follow-through and we feel like we're in a bullish environment right now just because the Market's having an inside day say we saw

you know stock a breakout and run and then Stock B break out and run the next day on a catalyst and now we're having like an inside day and we have another stock C with a catalyst well the pattern here is that like these breakouts are are working so so I'm not gonna care you know that the Market's having an inside day I'd love it to be having an uptrend day but but it's not going to sway me really from looking at so it is actually yeah it's it's more not necessarily what the market is

doing that particular day but more Market environment in what is the bigger picture here of the market yeah lovely thank you don't answer that okay moving on um yeah so these are the trades that we'd look for just again this is more independent price action patterns uh that we're looking to get involved so first firstly this will be a move down to Key Sport uh so this is a trade where we have a 9 out of 10 level uh that's how that's how nine nine out of ten or ten out of ten level in that

sense that this is a huge daily level we think there is going to be support or resistance here if we're going short um and it's going to be somewhere that institutions are going to look to defend it's a good price it it coincides with our overall thesis of the day um for this maybe we'd look if we open higher we'd look for some profit taking early on and just sort of to pull into that key support and this would be one area that we would be interested in buying um for us entry is going to

be as close to the level as possible trigger is going to be a change in the tape either a bit better somebody willing there to step there or maybe a false breakdown and we get a lower high uh trigger against the level and the better steps up from the lower high and you can you can risk against the lower high so I've put scalp you know we've kind of broken this down into how would we look at each of these trade from a scalping perspective from a move to move perspective and from a trait to

whole perspective I think ideally if we were again building this trade the whole thesis our game plan would be we're buying that level we've got our trigger we're going to sell 25 into the top of the range and then we're going to hold the rest of the trade to hold risk below that would be our first sort of pattern here is that an individual stock or what yeah this is so sorry all of these uh charts are patterns from day one and day two of them that's AMD this is AMD yeah sorry yeah that was

that was like an A plus level I thought yeah yeah I thought that was a great stock to go to on that day I thought the the daily range had tightened there was a failed breakdown and then a reclaim and then a breakout of that that key that upper level that you have on your chart was was huge I thought and and I think just finding any way to position yourself for a break of that especially on a day like this was um was like a great idea so that's that's awesome yeah so I think

we're going to use a few of these I think amd's shown a lot now but um so firstly I moved down to key support nine out of ten level that'd be one way to get involved here um this just be the backs were open so I think this was snow on the day two um you got the first move down but you didn't really have a really key support level to buy into which didn't give us confidence buying against the initial Trend so wait for this if it's a shallow pull in and we get that

push back through opening print then we get scalp wise you know we'd buy that push through opening print and we'd get out when the tape stops move to move we'd maybe get a move into a level um and then trade to hold risk below love there and we're looking just up to hold this um through as we go here so entry would be uh as close to opening print as possible uh trigger would be a clear reversal clear volume kicking in from the lows uh clear changing character and ideally looking to take uh 25 of

the move to move and this is the rest of 75 just hold and build into that bigger trade to hold position all right this is a good example of how um you know you could be looking at that ETF filter and you see Arc is the strongest thing and you see that a lot of the beaten down stuff is running and that can give you more if you like this level if you're kind of already looking at snow like maybe that maybe that gives you a little confidence that charts daily charts like this are going

today and um you know for me and you know I'd love to hear what Justin thinks but like I see if I really really really want to buy this based on obviously like the market following through and then I'm now I'm looking at like this group and sucks similar or running so I'm like I want to be long snow if I'm watching it early enough like I really love that view app reclaim in the opening range like we have a dip it's very very shallow and then it gets back above you know whatever price that

is and then it it breaks out and then pulls right back to the opening range which you know happens a lot in the overall Market on Trend days and just it's just a really great spot to I think like watch The Tick watch the tape um and just you know take a stab that it's gonna hold um and that's that's great what is Justin is that how how would you execute this yeah so there's two trades there's the back through open um which they just outlined and then there's the pull into V web and then

it continues right I actually think well for me and my trading I think the better trade is the pull into v-wap um it holds that high and then it you know it it pushes off I don't know I guess that's like 9 46 or something like that yeah I really like that trade because the risk reward is really really defined and um that's an elite risk reward trade because you know exactly where you're wrong which is the low of that Wick below B web whereas my only issue is with the back through open um that's

more of like a time stop and it's just more of a momentum trade um for me that's a trade that has to go right away or I'm cutting size um whereas the pull into view app and then the continuation off B web like okay it pulls into view app there's a turd you know exactly where you're wrong like if it fails B web again takes out that low like you're wrong and um you know it's just a better trade for me because the risk is the risk is defined yeah um yeah I mean that's my

thought there no that's um that's useful we I I Do cover that um a bit later on but I think especially in this case this looks like yeah such a good opportunity to get involved as you said we clear this reward below that work I mean it's exponentially greater than the backs are open traitor well yeah that's just hindsight though so okay so back to Ripon uh this would be the consolidation of our view up so this is just a pattern I've noticed um over the last year or so we get this initial um cell

it's almost like we're going to get the back through open but then it offer steps down holds we reject we go back to the lows and we kind of consolidate and then eventually we push back above view up we come back we retest view up and then it's sort of a great trigger to get long um for me uh and then look for that either push back to the highs um if we're in within a range but most of the time breaking out of highs and and really pushing um would be that pattern so again

entry would be as close to that sort of consolidation above view up or that reads break and retest that level um if we trigger would be a false breakdown of it lower high against the level for me um risk below the level risk below the the sort of false breakdown Wicks um and then again you've got the scalp move to move but ideally take 25 probably at the high and then hold the rest of the trade to hold and build that bigger position um opening range Breakout we just get that opening range we sink in

um that initial battle between buyers and sellers eventually you know in this case the buyers win and we're looking to take that momentum Drive higher um we get that really clear volume change um just at view up here and then the push through so if we can take a position here scalp 25 again in momentum and then maybe leave our trade to hold on risk below here risk below this sort of changing character here once we get above view up um and look for that larger Trend that would be another way to get involved um

then we get the break and retest this is the sort of opening range breaking retest here on the video we get that clear consolidation above that opening range level we see it we first break a few times um and so again look for false breakdown low high against the level uh risk below the false breakdown and look to take 25 out into the hive day and then hold the rest for that bigger trend then we have the for me this is um if we get that real strength off the open um this is kind of

a pattern that I would look for which is morning continuation it's around that 10 10 30 10 45 time and we get that clear um sort of 20 30 minutes sideways consolidation um it looks really clean you know it's outside of ranges volumes there and the bid's just not willing to let the price drop so we just kind of go sideways as people accumulate it and then we get that drive higher um for me that's I would call that the morning continuation first consolidation just it's a it's a shorter consolidation that we're looking for once

the Stock's broken ranges and we're just holding higher um obviously EMAs are trending everything looks great we're above v-wop there's no real levels above that could act as resistance trying to take a position as close to the bottom of that consolidation as possible we are wrong below that consolidation taking 25 out of momentum and then holding um for a bigger trade to hold move then we get that midday View who would be what retracement uh for me this is we get that sort of morning push higher and then around 11 o'clock um we get it's

either a period where we've overextended and we're going to pull back and the bid doesn't want to step up higher and there aren't necessarily A funds willing to pay those high prices so we do pull back the view up it can be a shout it could be a deep pool and it can be in Shallow pulling uh we're looking for light volume uh for me my favorite would be the sort of false breakdown it looks like we're going to sell and then we get back above we get that clear lower high against the level and

that's a you know you're taking that long risk below um false breakdown again 25 into half day holding the rest for the sort of bigger picture Trend here but this view what retracement is something I'd look for if we're not getting the next trade which for me is the second consolidation which is this bid just willing to step up higher at EMAs it's willing to just climb um the second consolidation it's a hour plus two hours three hours it can be all sorts um it's a lengthy consolidation volume is spending time sort of a higher

above you well willing to step up um you're looking to buy maybe the uptrend of that wrist below the lower low on the five minutes chart um or by the break and retest if we get um if we get that if we get a wedge forming or a sort of invert or inclining wedge into a level and we get a break and recess that level once we break and volume kicks in um so that would be a push into the close that we'd be looking for or later into the afternoon um but that's just a

lot of energy is built up into that consolidation um and then we get the break out of it and we get a nice big move one thing that that I'm thinking about here is I'm watching this and I I've really I mean I've got a paid full of notes based on the conversation already um a lot of them centered around the identification of the trend day and then the variations of of things that you can look for and I loved what Garrett said about like essentially you're starting your default is this is not a trend

day but how how are you proven wrong and how quickly can you be proven wrong in that right like I thought that was just so interesting what I'd love to see and I know this is not my playbook so it's Justin and and Garrett your show what would be super interesting though is an Alec a risk allocation with each of these trades right you know which trade is best how much would you be willing to risk if you stop according to each vote right and then score them depending on the quality of the trend day

because you can get some of these even on non you you know not Market Trend days but an individual stock right and what would your allocation look like for that what would your allocation look like for if it is a trend day in the market what would it you know like you could get into really specific and nuanced approaches but and you and I'm not saying to do that it you know on your first go but thinking about where this could go and how you could know okay in this situation all right we're trending with

these checks you know the Vol is this right valdi is this and and the add is this and and the tick is this okay these are the things that I'll do in that situation here's the risk allocation right here's the risk allocation early on when I don't really know but I'm worth I'm it's I'm willing to put it on because I know even if I'm risking 20 of my stop in this it's really like a five to one risk reward probably if it is a trend day right so like thinking through that might be my

own looking at dates because I think it would be they're not going to be right and the expectation isn't that you get it right but it's not a guidepost for did I put on the right amount of risk for the trade and the right amount of risk is going to change as your experience changes yeah but it's just a starting point right and and we want to start somewhere so that would be my only comment and I'm sorry for jumping in I'm really excited to hear kind of more into this discussion but uh you know

Tom you posted something in the chat and like you know if you're trading your strategy this is the death of your strategy it's a trending day right so you know identifying this as much as possible is probably pretty important too and so your feedback will be good as we work through it but I have to say like I'm loving the conversation it's not about right and wrong it's about us learning and um and I think that's that's kind of happening at least for me here um and uh and I just I I would love to

see some risk allocations according to certain strategies yeah yeah that would be so cool I don't care if it starts at like five percent of my daily stop you know but just start somewhere and I think in with all of our strategies we should start somewhere and know that we're wherever we start we're probably wrong right um you know we can grow from there so I think that's definitely something I need to Jeff to be honest um based on each of these strategies to build in a risk profile and be willing because I know this

is for me personally this is one of my a plus setups And Trades like I love Trend days the upside well that's You Know M yesterday was that's my bread and butter and I know I need to figure out ways to make money good money in those trades and make an exponential multiple of what I'm making in a you know average trade I mean reversion trade you know scalp or something like I I definitely need to work on that so I will build that out just like one one way I think not enough people talk

about this you're saying like you want to be bigger on on Trend days um and that's really great I think one exercise that could really help you is a visualization exercises where um you say okay this is a uh second control consolidation afternoon continuation trade whatever it is um and you visualize what the entry where the entry is where the stop is how much size you're going to take and what I think the most important part is like what does that feel like when it goes against you that way you could really accept the risk

and that's the most important part when we're thinking about Trend days and making an exponential amount of money than you do on a regular day well okay that's going to require a lot more risk and you have to accept that risk yeah um and that's where like that visualization exercise could really really help and Justin do you have any specific like resources that you've used for visualization exercises or is it just you literally take a couple breaths sit at your desk and think through the feelings of that trade yeah I work with Dr s on

this and that's that's really all it is like you visualize yourself sitting at your desk taking the trade what the p l is going to feel like when um I think like sure we could we could always visualize what it looks like what it's the momentum is ripping in your favor right but what does it feel like when it's sluggish when it's taking a while to work when it's going against you a little bit what does it feel like when you know you think it should work right now but maybe it's taking a little longer

because the market doesn't care what you want um what does that feel like so like you gotta really go into detail with it um but just for me even for some people yeah even for some people just to jump in I've noticed like one of the hardest things to do in a trend day is to not take profits yeah right because you're like oh I'm up so much this trade's working so well I should take some off and it's like no no your only thought should be this is a trend day how do I get

bigger before the close yeah it should be risk on risk on and then if you have the opportunity even more risk on and that might be something you need to visualize just as much of seeing your p l you know having the trade work right away because you identified it and then not taking it off not going into that defensive mindset right so it's almost like I I you know that the reason why I'm saying that Justin and not to cut off and not to Discount what you said because I think what you said is

absolutely correct that that is the biggest problem most Traders have but I saw a couple Traders put up their biggest day in CPI day like by a long shot simply by doing the visualization exercise to not take it off too quickly right yeah definitely goes both ways it goes both ways right so if you're going to do one side of it make sure you're doing the other side of it too um but it is super interesting and and I love that that comment of just like yeah you feel what it's going to feel like because

otherwise you're going to feel what it's going to feel like it's gonna freak you out so yeah it's good to do that and like it's just a great way to fully accept the risk that you think you want to put on yeah I was so I was trading an M trade yesterday and there was so many instances that I was like I want to take this off but I just got into the mindset of if I take this off I'm doing myself a disservice like this is an opportunity and I know if we're playing the

game of math and the probabilities and as we add up over time this is something that I have to hold I cannot take this off because I destroy the whole framework of why this works um and so I just put orders in and just said these this is where I think it should go and this is where my stuff is and I can monitor my stuff along the way but I'm not gonna hook here I'm not going to try and take anything off I'm just going to let it sit and admittedly I didn't have huge

size but that was just trying how I was think thinking through the process yeah that's great and sometimes it just helps me like if I have the urge to take profits I kind of just say to myself like this is what it looks like when it works perfectly so why would I take off profits now yeah this is what it looks like when it works great yeah this is that's a great Point Jeff um I mean this is something I'm working on now you know too just just making sure that I'm risking more on days

like this when I identify it and I think I think maybe something to to consider is that sometimes you're going to identify a trend day like super early on and sometimes you're going to identify a trend a at 1 30 P.M and that's okay right there's different types of days there's different flows of information and um we all like to think that you know if we're going to close if we're going to open at the lows and close at the highs like of course like well I just want to buy the first minute and and

just hold all day um and that would have the best risk reward but that's not always true like we are sometimes we don't have enough information on the first minute I think this CPI day was was very special because we could we could have a lot to go on very very early on and some things I don't that we have yet to even cover in that respect but you know for me I think a big part of it becomes like okay like when in this trade did I identify the trend day and then how did

I act after that right so it's like you don't have to get the first minute you don't have to get the first pullback it's all about like for me like what defines okay now now it's a trade to hold now I'm playing for the trend day and because because only then can you really do this stuff that we're talking about which is like not sell and and risk more and all this kind of stuff and so you know some sometimes I think you know perhaps perhaps a catalyst isn't as blatant um but there's a Tailwind

in the market and we've and we broke out and the volumes there in the in the breath is there and the price action's there and you know we're sitting there at like 1 30 2 o'clock with a great setup intraday and you're saying to yourself damn like this is this is a trend day like we're we're gonna close at the highs and sometimes like that's you know that that can be the trade um and and that's kind of like an intraday you know move intraday swing but you're still playing with this concept of a trend

day like at that point um and then you know on a day like CPI you know you can find all these places to add and and to kind of I guess add to like the charts that you've been putting together here which I I think are really great and all these patterns are really good um but I think maybe one thing to consider too like when trading these individual names especially like the high beta names that tend to follow the market closely um I think there's something to be said for watching the market like watching

the cues or watching spy and and seeing that pullback or seeing that setup that you want and then seeing like which which ones of these like high beta names or or whatever you want to look at like which ones are offering great risk reward at this place where I think the the whole Market is a buy you know like where can I get the best risk reward it might be in Netflix it might be in you know Tesla it might be Nvidia or AMD but you know maybe you noticed that one of these is like

particularly strong and it's not pulling back that much but it's really tight and so you're so not only can you say to yourself this is really tight so I you know I could my Stop's gonna be close but also this is showing relative strength so they'll move you know if this works might be much bigger than than some other stock and so so you know when trading a trend day it's not just all about like the individual patterns of the individual names but you can kind of add okay like how are these patterns like relative

you know to the setup in the market if that makes sense so when you guys are so if you're taking a trade uh middle of the day are you basing risk off um say the the full day like are you looking at okay this is a trend day um I'm going to base risks off the low day or am I going to base my risk um you know off a higher low it's going to be higher low um it's gonna be a tick it's going to be some previous level like I'm not going to risk

all the way back down to the low a day I'm I might actually do that move maybe I'll do that move with options um just so that it's a little bit less volatile around the the entry price um yeah because I I'm thinking like uh especially on a day like where we had such a big Catalyst on that CPI normally you would get some follow-through into the next day so if and obviously we're talking about intraday and that kind of Swing trading but could there be a possibility to frame a trade uh in the middle

of the day where you're risking off the low a day and looking to swing this into the next day yeah I think it just it just all depends on the risk reward profile right like if you think this is a you know two week swing then and this move is just starting and that's how you're going to express the trade then trading it against low days you know could make a lot of sense um but also Andrew you know the thing that's interesting here and I'm not going to speak for for Gary and Justin is

if I see a trend day I want to be thinking what are all the trades that I could make right it's like saying in the low float the back side's in right what are all the different ways I can get paid that make take the pressure off of the Buy and Hold right or the or the ship or the short and sit tight or whatever you want to call it right like like that's what that's where I think the real opportunity comes in is yes if you're right and and you get the right timing and

you get everything right it's awesome right but like if not what are all the different ways I can get paid in this right can I hold a core against the low of the day and then can I take all these three or four other trades that pop up can I you know take a move to move trade or scalp trade in something while also trading this other thing this other way right like that's the beauty of a trend days we have a product like we have something that should be happening and if that one thing

does happen we have so many opportunities within that right so there is that element of like I'm gonna buy it and stop slow of day and that that's very valid right I think there's so much validity in that idea it's just what you do next with that opportunity that will dictate is that something where you need to hold it for two or three days or something where you can make just as much intraday on day one and then on day two and then you're selling your core on day three yeah right and so like think

about that that's like the padding stats sort of training right like you have if you're right on the idea you're really going to get paid not because you're you bought at the right time you're selling at the right time but because you're being super opportunistic within the entire train that makes sense I also think this is where like continually identifying the trend day like I can't emphasize that enough right it's not just like a 931 thing where you're like all right it's a trend day and then you know and then you're just glued to the

tape it's like you know you're continually assessing that aspect of the trade and so when we're above view app and we've made a move and the breadth is the way it is and all the stocks are trading in unison all the sectors are trading in unison there's an elevated volume we have our catalyst everything's acting like a trend day Something's Gonna Have to dramatically change for that for price to just completely roll over and trade back to the lows and like a lot of the times I'll look back on these Trend days and I'll be

like God you know I like I didn't even take any heat like on these trades you know like I barely I barely Drew down today I could have been risking so much more and there's a serious wind at your back when you're trading these days and in a way it should kind of feel that way um so when you're kind of looking at that midday pull-in um and if that's if that is something you want to buy like kind of going back like to your question I mean I think there are ways to to to

to get some Edge in that trade between looking at the tape and looking at the tick in previous price levels and areas where you don't think it should trade below um but in order for price to really start to roll over like the tick is going to have to change like it's gonna have to start shifting and trending and holding below zero and and you know that's not that's not really what happens on a trend day right and if it does happen there's usually maybe like one moment where that happens and it might it might

last for 10 minutes and if that move doesn't take out any meaningful price levels like as soon as tick reclaims and and it looks like that selling is over like I mean a lot of the times and this definitely happened on the CPI day like a lot of the times that's it like the selling's over and so it's it becomes like a valid place to to consider uh you know an ad or a spot to execute um maybe you have to try a couple times um but on a day like this for me like it's

worth it's worth it it's worth getting in there and like getting my hands dirty versus just any old day where i'm you know trying to trying to buy something like a million times like it's a different it's a different mindset yeah I find though that that is the hardest trade on these days is finding the spots to add yeah yeah I think I think it's it can I think it takes a lot of patience like that midday trade sometimes um for me at least like I have to tell myself okay like you know we're trading

on a little bit of a higher time frame now so you know I've got to be a little bit more patient I have to be looser I have to be willing to you know and then every once in a while you you might find like a really great spot right like it doesn't always happen but like what if what if there's what if price develops sort of a midday like support level enough time goes by it's been holding it it comes back into it it dips below uh on a really low tick and just immediately

gets bought up and reclaims on a on a higher volume bar right like now you're looking at the tape realizing you know I'm trading the cues I might only be you know 10 20 cents from this Wick but I'm seeing like a lot of edge in this spot because not only am I at a support level but it just actually flushed it and reclaimed and there's volume coming into the upside and that was a super low tick and there's a lot of things about this they're telling me that like on a trend day like this

should be protected somewhat you know and if you're wrong then then you're wrong like you know hit out or whatever but I think that shop chart that Harry has up identifies exactly what you're talking about if you look this one no the one that you have up on the slide so right where you have the arrow I think that's exactly what happened in shop um we broke below and then we had some volume come in it we bid right back up and had some volume come back in so like that looks like a great spot

where you would think about adding there at one o'clock yeah that's great yeah Garrett was this so this was Apple this is actually the trade I took on this day on CPI day and we kind of got that and this is kind of where I got along after we saw this and then we saw this again and then yeah this is what I was thinking was okay this is a good level to defend now I love you all this is kind of where we want to sit it might take all day but and then we

got that into close yeah that had such a great movement of the clothes yeah and the imbalance same balance was pretty high on that that's right yeah um so yeah that oh they're the kind of the ideas and then these were just the examples of just how we would think about trading this um and I can go through them real quick but yeah you know AMD this is MD like you get that move down in sport look at that turn 25 out at the highest continue you know add a bit more into that burning range

breakout cut to move to move um and then sort of midday you get that false breakdown to view up through the EMAs get back above hold on volume and then sort of another good point to add take a little bit more out into the highs and then essentially hold for that longer move and then you get that break and retest The Hive day um they add in there and then I wanted to close really um so that would be day one day two again we get push down into uh yesterday's sport level really good level

we're gonna change the character um can get log there risk below um cut 25 of the move then we get the break in retests of the opening range interview up about a bit more there take a bit more out on that extension and then sort of hold the rest we get that Vivo retracement uh we don't make we struggle to make it lower low um compared to the 1045 low uh get along a bit more there then we get the break and retest The Hive day and a bit more there and kind of look until

for me the sort of break of the trend would be a new five minute low below the 20ma which is how I looking at this as a my failure point or my exit point if you like of the whole position of this trade to hold um so in this case I'd have got I got out at three o'clock since you want to make it made a new low below that 20 EMA and then on the short side this was just one that we had up uh that I just had um same thing but short side

you get first move up into resistance short of it there take a bit of profit 25 add on the breakdown opening range breakout then you get the break in retest which is also V1 retracement it's a good Confluence of the two levels um short there take a bit out then you get the first consolidation against the EMAs everything looks great trending then you get the second consolidation sort of an hour plus consolidation still trending and then you're eventually um get out once you get that new hi um on a five uh on a five minute

chart about the 20ma that's how I would trade it do you guys have a slide of a chart of like the cues for instance on the CPI day while you're doing that I just want to touch on something that Andrew mentioned before regarding like could you buy the poll in with a stop at low of day um that reminded me of something that I used to do and that's where a situation for me where I'd feel like I don't make enough money in the morning and I'm clawing or reaching for setups in the afternoon to

make up for that um and one way around that is asking yourself is this trade comparable to the trades that I took in the morning meaning like is this trade better or worse um and if the trade is worse what you can't do is risk up that afternoon trade more than you did in the morning um and I think that's where you kind of have to accept defeat to some extent and go take a walk um you know you kind of have to constantly be asking yourself if I took this trade um what would I

tag it in Trader view or is this A playbook trade for me um and if it's not then you can't put on like more than five percent of your stop right does that make sense definitely yeah that's that's exactly why I asked the question because I see a lot of times on these days I I look back and I go wow man I missed so much of that move all right compensate and and now I'm risking too much and then it goes a little bit lower than I think it should and I'm like stuck in

between yeah that's a really dangerous game to play you don't want to play that game at all you just want to accept the fact that hey um you know there was a great opportunity this morning I didn't trade it well enough I'm gonna go back and review and and really study these setups uh and that's going to be like my revenge yeah it can't be I'm gonna buy this pullback and risk to low of day um because number one like did you study that is that a trade that you've made in the past and had

success with and if it's not then like you know you can't risk more than like one two percent of your stop on that yeah that's a great point and just to be clear I'm not risking the low a day on a trend day like that like at two o'clock right because I'm so sorry to cut you you don't care yeah you don't want it to come back to that price that I would when I when you asked like would it be valid ever to to risk a low day the only reason I said yes was

because there are there are swing trades where maybe that's how you would execute it you'd be buying against Little J hoping to hold for multiple days and I know people who do this including myself occasionally that where it's a real trait but we're talking about a trend day right we're not talking about a trend month so uh for me I'm not I'm not risking to load a day there that's that's just there's not enough risk reward I I'm expecting it to hold I mean it should go higher we we think it's going to close at

the highs right so that's why we're putting this trade on that that trade is not going to work way before it gets the low day yeah this is Keith um do you have the uh could you just show like day one and with the pre-market yep it's the pre-market here oh gee just one day one sorry yeah just day one pre-market and if there's any way to like sort of I don't know if you can shade where the where the regular trading hours starts or not but if not that's yeah no no it is it's

really faint I apologize um so can you see are you able to see the difference in that yeah yeah you can see with the volume all right so I just want to I just want to highlight a couple like price action things that happened here early on that are very indicative of a print of a trend day and then also like when you have when you have news that hits in the pre-market and I mean I know everyone was expecting this economic number but obviously the fact that it that it was um you know weaker

than expected we was the Catalyst right so at 8 30 we get that that big move and sometimes you know if you're looking at an individual stock this might be the earnings announcement or you know but there might be breaking news in today I think I think you can kind of just think about this um is that when that news hits and you get the volume and that candle like there's a there's a reaction High right and that's at if you could put your cursor up there um right there right and if this is gonna

be a trend day I think that this should really be taking out this reaction high like pretty early on at least in the morning session right like if it doesn't then we need to kind of ask ourselves why um and so if it's going to be a trend day like I I personally I want to see it take out this reaction high and this did it right away so I've so so now you know the Market's opening and I'm already thinking okay like that's a check like the market hasn't even opened and now we're holding

above the reaction High and The Market opens and we kind of mess around a little bit and like what do we do we pull right back into that reaction high level and hold and I don't know what the tick looked like right there but that's what I'd be watching and then boom we get bought right back up that's another check in my favor for Trend day this is like the price action of a trend day that I'm liking like when I'm seeing this it gets bought right back up and it takes out the opening range

and it's a small opening range if what is this a 15 minute five minute chart yeah so it was like I guess 20 minutes or something um and it takes out that opening range and if you put a line now kind of up at the top of the bodies of the candles where it took out and you could even just put it where the bodies are like down a little bit see where yeah like right there takes out that opening range um trades higher and then comes right back in pulls in again and I don't

know what the tick looked like right there but I'd be watching it and boom we get bought up again and we hold the opening range and now I'm thinking like God like you know Garrett like if you don't think it's a trend date yet like you're gonna you're gonna miss the whole damn thing because that's the price action that like I I love to see that I mean on the upside on the downside I mean if there's no specific news even I think sometimes like look just looking at that overnight High overnight low in order

to look for a trend day like we should be taking out the overnight low right like if we haven't done that by two o'clock um you know I don't know like I mean I guess the Futures Traders you know we're you know that whatever they thought in the pre-market you know hasn't changed um and so I'm looking at the overnight low the overnight high or or even even more importantly the reaction low the reaction high and then I'm looking at that opening range and I want that to hold and those are two checks that I

think that you can get like pretty early on in the day um because obviously with this kind of stuff like the earlier the better and so if I'm watching the overall market and I see these things in combination with everything else you guys talked about and we talked about then you know maybe going in and looking at some of those High beta names or or trading the cues you know that's that's probably like one of the ways I would I'd be approaching it yeah that's great that makes a lot of sense I mean yeah I

would have been it's funny isn't it I would have been probably scared by that but then once you see that rebid this for me would then be a great point so actually the way you're talking about it's making me think maybe I can just hold a little bit longer and not necessarily be so skittish when I see things like that yeah and I mean you know there's there's obviously like a lot of nuance to the tape and it's it's never it doesn't always like feel easy I mean in hindsight I mean we're just Monday morning

quarterbacking here but like uh even if you're not taking those trades I think that just you know what I'm really talking about is the information because you're trying to like stack up information to say like is it a trendy I think so is it a trend day probably is it a trend date like yeah I think I really think so okay is it a trend day like well I've never seen anything more probable than this you know like and so it you're you're confidence based on the information grows and like the quicker and more correctly

that can grow then the more Edge you're able to kind of capture you know and use your trading skills to then like capitalize on this right because you might have unbelievable trading skills but like if you're not identifying that early on like it doesn't really matter because you're not even looking to like do those things that you're that you're capable of doing because you're unsure and so I'm just talking about getting information quickly right so maybe your trade comes a little bit later you know I don't know but um but I think just I just

I think just that information you know it can be really can be really good because we just started holding levels like immediately on this day and like and again like keep like I try to keep in my mind I'm like well if this is a trend day we should be opening at the lows and closing at the highs so with that said if I'm seeing this kind of price action early on I'm thinking okay well you know we should still be pretty close to the lows you know it might be hard to visualize how we're

going to go much higher from here given you know what just happened but um but but the evidence is here so we should probably find our way higher let me um let me ask this regards to stop and adjusting and moving I'll stop as this happens so if I guess let me just go through how I think and then correct me while I'm wrong but I would think if I'm in here then my stuff is low of day once this gets put in and we sort of see this little high my stop is probably here

and then I think once we're up here my Stop's probably coming under here under view up and then I think once we're seeing sort of this consolidation and the breakout again I think I'm moving my stop up to here would you agree with that this is hard stop as you know because if this rolls over and makes a new low below here I I personally wouldn't want to see that and I'm wondering how you would just sort of use a a moving stop there I like those stops a lot okay good yeah I think I

think on a trade to hold I think those are great stops for those trades you know like it depends it depends if you're talking about one sort of trade to hold position I think or if you're talking about like individual ads with like tighter risk um so can I use an example uh it's an individual stock but it's the same kind of context which is yesterday on M and so I was along this and ultimately I stopped out I there was a held offer here and I took most of my position here and then once

we pull back here I had my heart stopped down here and of I mean in hindsight we obviously then got this was the key level we then got this and the closed half day but I struggled to hold my remaining core after the market was fading after you know we got this move from a held offer I thought I was warranted to have my heart stop on the remaining quarter of my position once I saw that held offer here what what would you guys think in this situation and I was thinking this last core is

a trait to hold what was your trade like where did this setup yeah so this is uh I mean this was a gap above ranges um correct and saying what was the key that was a key level I think it was down here um essentially it was the app and go trade to hold um race guidance breaking you know Catalyst um for me I was long in here added into this viewport retracement uh got a bit longer when we saw that and then started cutting here cut a bit here on this initial move um added

cut added a bit more cut and then I that last position which was the trade to hold into the close and maybe I was thinking we could get 23 based on that being a 280r move I just didn't want to see it back below this level essentially was my thought on that initial trade I think um and I mean I really want to hear what Justin has to say on this but but I'll just first you need to say what I'm thinking I think if I were buying like if I were buying that Breakout um

I would have a tighter stop yeah like you know what I mean like because to me that's a it's a momentum trade like I want to see it go higher you know I might even be scaling into that and then yeah like I don't like I'll I'll be raising my stop somewhere pretty tight but if I'm involved in a trade to hold that's that's not gonna be my stop like I don't see that price as as a meaningful swing in the market like yeah like price did hold there for a while so like if you're

basing your trade-off of that you know and making that momentum trade then it makes sense to me but like if you're you know if you're long from the morning and and you think it's going to close at the highs uh and and therefore it's a bit of a higher time frame trade I don't I don't think there's any real like swing there to kind of like lean against if that makes sense you know and it's it's above view app and you have to expect things to be able to kind of pull back to view app

and you know if anything I would put it below that previous swing there if anything that's you know where where you can kind of see how it like took out the highs and then kind of came back and retested and now it's going higher um yeah like that that level somewhere in there what do you think Justin um well I have two big thoughts here one thought is um the EMAs are working really well as they should on the trend day uh it's holding the 20 20 well you said you use the 20 20 21

something um so when it breaks there and maybe even more importantly it can't get above we're looking at a five minute so it can't get above 20 to 70 for 50 minutes I can ignore that because I think it's gonna go to 23 like I have to sell I mean I have to sell a lot of it maybe like half of it there um and then that break below the 20 after that offers there for an hour that's enough for me to just take the whole thing off okay that's good to know because I think

in hindsight I look back and I said based on my rules I should have cut the position there the the yeah three quarters here once I saw oh that's great then it was just the remaining quarter that sort of trade the whole lot that I was like this has failed to me so I should have been cutting it instead I have my stop here but then I was just wanted to ask like on that trade the whole lot is that even a warranted stop is that a warranty stop or is no something you know I

think you managed it really well I'm glad that you sold up at that 22.70 and I'm glad you cut it when it closed below the 20 EMA for the first time all day yeah um but with that I do this all the time as well like I want to keep uh like in fact have a trade that's working really really well I want to keep like 20 of it just to see what happens um but your stop on it was wrong in my opinion if you're gonna have that 20 that you're gonna hold all day

yeah um my reason to sell that would be if it starts holding below v-wap like that's usually oh wow okay the reason to sell that okay last little lot yeah that's a great point I agree with that 100 do you you so I yeah okay so I guess I came up with these rules for myself which is this kind of 20 EMA break because I just thought so many times once that happens or once the pullback is here then maybe the best price I feel like I'm getting here is gonna be that by the end

of the day and really to hold through that just to get you know the difference here of 20 cents 25 cents is it worth it it's my thought something something else to think about is if you're playing well you know the last hour in the first hour of the day or technically the most active right where the most volumes being done um something that I like to think about is that 2270 offer like that is actually a good short setup for anyone that wants to short this right and then they get confirmation of that so

something that I would actually think about is coming into the end of the day like if we hold V web and get momentum through 22.70 there's gonna be there should be some shorts that are going to get blown out which is going to offer a good momentum trade so I like to think about the psychology of the people on the other side of the trade and like how that might yeah yeah so you're an active Trader not doing as well as you want not doing as well as you deserve and you just can't figure out

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