How to Judge Pattern Behavior

what's up guys even ducks here and today we're gonna talk about moment in ships the two stocks we want to talk about you and Artie and B for past week and a half and this is a really hot patterns for this couple of days they are they have the similar patterns and what once you recognize the weakness you can make a decent money on a downside and you can also make money on the upside as well and let's start with RT and B as last video I talked about the momentum decent momentum and when you try to short this heavy heavy voluntary stock it's hard to judge when it's the momentum is going to shift so buy the stuff habits every single morning it's going to have a squeeze so when the stock repeats itself two times on the third times most likely to do the same thing again especially for consistently couple days so I'm Paul gets 21st if you see a morning spike come back down morning spike came back down now on the third day okay typically when you see the tooth to that that did the same thing and the third day expects it to almost three dollars so for this kind of momentum when the stock repeats is to morning spikes and to morning squeezes at the same time third day try not to short his before the market opened it's a potential tip buy because stock is likely to behave once it would behave what she's going to do early on so same thing the fourth time so when stock repeats the same move over and over again then you have to adapt it to the stock as well once the morning spiked every single morning spiked felled pretty hardcore so this one failed as well so to trade to be able to trade August 21st but to August 25th just try to attack to the momentum so August first morning spike ok second morning spike August 23rd morning spike so I typically participate in the third day when he tried to do the same thing again again and again so I know it's going to morning's fight because it did twice hi odds of winning so I did bad shorted started behaves very similar for past couple days now after the third time I'm down shorting or buying and I'm going to keep watch the patterns if to see if the momentum switch or not Orlov or a pattern behaves differently so on the fourth day more inspect did not change and I know spec doesn't hold so sure little again and that's where the well you know what the stock is going to behave like just you can take a little advantage on the downside or the upside as well so now on the fifth day the stock is morning spiking in the morning so you know the stock doesn't it never holds this morning spike so shorting to morning spike came back down again so this is this is something you can't actually pay attention to when trading those kind of momentum stocks watch the previous two days how they behave and it's most likely to do the same thing on the third day so two examples on 21st 22nd 23rd least a third example and you replace the 30 day example into the first one so 23rd will be the first first example 24th will be the second example and 25th it's going to repeat what today for the past two days so easy predictable patterns but try to try to keep keep keep close eye and watch the previous two days and on the 25th you can use this third example replace to the first attempt oh so morning spike fail okay and you had a huge gap down in the pre-market same thing stuck like the stock sorry morning spike if it spikes now when it opens morning spike fail again and predict the patterns you know stock neighborhoodies morning spike second day when the stock is spiking in the pre-market I do count as a morning spike so if the stock already more than inspecting a pre market once the market opens it doesn't need to have a morning spec anymore because already more inspecting the pre market so pre market spikes replace the morning spike that's what I typically do so shorting the morning spike again and because you know the stuff doesn't hold morning specs you can just take that one on advantage and shorting into me resistance over and over again and for our tmb you can make you a lot of money on a downside and on upside because you know what exactly the stocks going to behave for for a couple of days and down lnu same thing very hot patterns for past couple days yeah you get all did a big morning spike to a 250 come back down morning spike again come back down so this is a little bit different than our tmb now if you draw a horizontal line right here you can clear clear see where the support is and where the resistance is the support is that one ninety one ninety to one hundred two ish the resistance is around 250 ish when the stock behaves twice in two days it's typically going to behave in a third day but on the third day the stock did not morning spike he in turn turned around you know about 10:30 and tried to spike again now to the little bit difference is on the August 30th typically the afternoon and the stock did not fade for in the afternoon I actually tried to bounce it back to almost to the main resistance level and you can clear see one that 184 is the clear dip so on the first day in clearly a whole 184 185 as a dip as well so for L on you when the stock behaves twice for two days and the third day it's going to behave the same thing but what happens if the stock panicked and most people will believe the stock will do the same thing and what what do you think what what they would do they would dip by the dip and hoping for a delayed spike that's why exactly Ella I mean dude did I get thirty first it dipped down to 180 because you always try to buy before the support area so if you to support is 118:25 185 the support is 185 try to buy a 180 that's why I Holly dipped to 190 and respected to mean resistance level now I didn't short this spike because I hate to be resistant is it mean the resistance level because I don't want it to form a cup of handle on me which is a super bowl a sign and you never know how much shorts are stuck in this you so put this trigger will be very very dangerous for me and not comfortable pulling this trigger because the the squeeze was not far enough and in my teens you might can squeeze further to break 250 and do like a couple handle squeeze above three dollars so when the stock squeeze it to the same resistance level for previous couple days especially now under it at the same resistance so if the resistance is to for 250 and squeeze it to 250 I wouldn't short there because it's too much of short squeeze but if the stock for pretty couple days is 250 bye-bye squeeze that you 2:30 you know people are shorting this before the main resistance area and the squeeze was not that strong didn't test at the top of the resistance level so if it's under it I'm pretty comfortable too short little bit underneath of resistance but if they are the same exactly level typically I won't take a short so that's just my personal personal method I don't like to take bigger risk so as you can see August 31st went up to 250 and dip down to 193 so the same thing landed on the same support level so when people try to dip by and when the when the clearly support failure will cause a morning panic so for RT and B is 11 you start typically behaves 3 days so the one day you can take advantage on its a third day first time behave second time behave so you know what the stock is going to do in the third day RT and B as well so take a little advantage August 23rd take advantage on its 25th yeah and you can take the advantage on August 22 31st so for I think on Tuesday when it starts to stock market opens you know when when the support brakes become a solid resistance so 183 will become will become the resistance for a allowing you and you will go down further maybe to the 150 to test this button on Tuesday that's just my thoughts it's another pattern but it's actually a pattern let the patterns show yourself and take a little advantage after the path after the stock shows you what kind of pattern if it is then you can take advantage from there it just in stock market history always repeated you repeated by itself so and people thinking a still think in the same way if the stop it like repeat twice it's always going it's not always but I will say 70% of its chance you were going to repeat in the next day or you know next month so that's why when stock has so many failed spike you know hit before in the history that's why stock doesn't hold spikes that very well because people see the history so keep that in mind and next one is next one I'm going to talk about the RO is very very simple strategy stock had a bad news I think it's the they're issuing 100 meeting shares at 275 and the stock tanked all the way to 210 bounced you first thing the stock market nothing goes straight up nothing goes straight down if you go straight up it's going to be have a pullback if it goes straight down it's going to have a bounce and when dr is bounced because dr o has went straight down so he bounced to almost 280 and i picked an entry at 280 because I do want to risk a round number two short into the mini resistance area if you look at a one-month chart to minute the entire mean resistance is around to $3.00 so surely in three dollars very good risk reward I'm risking 20 cents to make potentially 50 cents or 60 cents once it takes out that three years level and this this three area becomes a huge resistance I don't think you can one I don't think stock can break one month resistance in one day so that's just typically how stock behaves and I picked the entry at 280 sure the interior covered most of it to 60-ish and on the next day he actually was a great short again because the stock is holding at 270 level so basically if you short here you're risking 30 cents to make a potential 3050 actually 50 cents so that bad risk reward solid resistance showing that it's shorting into resistance is always a good strategy and for this kind of multi month actually multi weeks Motorbooks resistance typically it's hard to break that in what in one intraday so keep that in mind and those are the two patterns I need to go over with maybe next couple weeks we'll have those patterns will happen again and make sure take advantage on the third day when the stock keeps repeating repeats its own pattern so there it's very predictable and just make sure position yours size charactery never never go too big it's never worth it to go broke on one sucks so same thing as dris if you typically this is not for low flow stocks it's a little bit for mid-cap so if stock has a bad news bounced right back to motive month or a multi-year more two weeks resistance and it's a pretty solid risk reward strategy most of the time okay I would say 75% of the chance that start pulls back after the big bounces so that's the lesson for for today and I will see you guys next week

Channel: Steven Dux

Views: 173,307

Keywords: penny stock millionaire, learn to trade, trading penny stocks for beginners, financial education, trading penny stocks, penny stock trading, penny stocks for beginners, penny stocks, day trading, stock market, investing, technical analysis, finance, how to trade, millionaire, swing trading, stocks to buy, how to invest, stock market for beginners, investing for beginners, trader, how to buy penny stocks, stock trading, how to trade penny stocks, Steven Dux, Dux, Xiuxian Du

Id: LSQAbJ6PGZU

Length: 17min 55sec (1075 seconds)

Published: Sat Sep 02 2017