The ONLY Technical Analysis Guide You'll Ever Need! (Beginner to Advanced)

[00:00:00] Speaker 1: Welcome to today's deep dive into the world of technical analysis. In today's episode, I'm going to teach you how to read candlestick charts so you can make accurate predictions about which direction the price is going to go in. And I'm going to use some of my trades today as a case study of the strategies and the techniques that I use personally in my own trading. I am sitting up right now $34,000 on the day. And I'm telling you, this would not be possible if I had not become a master at performing technical analysis. So for those of you who are already subscribed to the channel, welcome back. You know that we're about to jump into a full length episode. For those of you guys who are brand new, do me a favor, hit that thumbs up, subscribe to the channel for more episodes just like this, and let's go ahead and dive into the screen share. I've got a whiteboard for today, we've got a slide deck, and we have a lot to cover. However, this will be the ultimate guide to performing technical analysis the right way. Let's begin this episode with a quiz. Let's level set and see where we're all at at the very beginning of this class. I think by the end of this class, you're going to know a whole lot more about how to perform technical analysis than you do right now. So let me ask you this question. Is this right here a safe entry? Now you're probably looking at this chart and you're thinking, look, this stock clearly has been moving up. It's pulled back, it's moved up, it's pulled back, it's moved up, it's pulled back, it's moved up, it's pulled back right here, it's probably going to move up. The answer is yes, this is definitely a safe entry. Wrong. [00:01:30] Speaker ?: Wow. [00:01:30] Speaker 1: Not even close. But that's okay. That's why you're here. This failed right here. Why did it fail? It was doing so well. And then all of a sudden we finally get in and it rolls over. Well, technical analysis would tell us that there was an indicator right down here telling us and indicating this was likely to fail. The MACD, this indicator, had crossed over. That crossover is a strong indicator that the trend is beginning to reverse. So let's look at another one right here. Okay. So now the first thing you're probably noticing is the MACD has crossed over. So even though this has made a nice move up and it's on a pullback, you're probably thinking it's not going to work. And you would be correct. Although it popped up just for a moment, ultimately the trend is coming back down. Look at that MACD before you take a trade. That's one of our technical indicators. Now you're going to look at this chart. You're probably going to think, okay, MACD is open. This is easy. I'm going to be a millionaire before the end of the week. No, wrong again. MACD is open. You're right about that. But there was another problem here, which is that the volume bars were higher on the selling. So we had more selling than we had buying. Let's go back and look at that again for a second. So high volume on the buying candle, but just as high, equally high on the selling. And there was more red volume bars, which means in total, there was more selling than buying. So that overrides a positive MACD that tells us not to take the trade. Okay. We can do this. Next one. All right, here we go. We've got a MACD that's open. We've got a good volume profile. This surely is a good setup. Am I right? Buy the dip? Yes, we are right. We've got light volume selling, a positive MACD, and the entry is right here as this first candle makes a new high. Now, some of you guys are saying, Ross, I don't even understand the anatomy of candlesticks. You're at the very beginning of your learning curve, and that's no problem. I've been doing this for a long time. And my job here is to send the ladder back down to you and to help you better understand how to perform technical analysis. So you're going to understand what all of this is on these charts by the end of today's episode. Let's look at another one. All right, here we go. Looking good. Nice volume coming up. A little pullback. Another squeeze back up. MACD is open. No issue with the volume. This should work just fine. And in fact, it does. A nice squeeze higher. Now, a little bit later, it rolls over. But we're not in the trade over here. The MACD is crossed over. It's coming back down. So we're not taking that trade. We're trading it right in this area. These are the small little places that we want to trade. So when it comes to the financial markets, there are really two forms of analysis. On the one hand, you have fundamental analysis, which is what long-term value investors use to try to understand the fundamentals of a company. How much is the company worth? How much money do they make? What are their assets? What are their liabilities? You can learn all of this information in the quarterly filings that all publicly trade companies produce to shareholders through the SEC database. Now, active traders like myself, we don't really rely on fundamental analysis because in the short term, the price can get extremely disconnected from the fundamentals due to the emotions in the market of fear and greed. As active traders, our job is to capitalize on those emotions without falling victim to them ourselves. We do this by performing technical analysis. So technical analysis is the universal language of the financial markets, and it's displayed in the actual candlestick charts that we use every single day. Now, it doesn't matter if you're trading futures, Forex, if you're trading a different financial market, or you're trading the U.S. stock market like I do. This truly is a universal language that you're about to learn. Now, I didn't introduce myself yet. My name is Ross Cameron. I'm a full-time trader. I funded my first account in 2001, more than 20 years ago. So I've been doing this for a long time. In 2017, I set out on a challenge. Actually, you guys right here on YouTube challenged me. You said, Ross, I don't think you would make money if you traded in a small account. And I said, you know what? I'm going to put my money where my mouth is, and I'm going to try it. I funded an account with $583 in January of 2017. I have now grown that account to over $12.5 million in gross profit. So not only do I post my broker statements at the end of each month right here on my website, you can see them going all the way back to January 1st, 2017. I actually have a third-party independent accountants audit their report of my trading performance. And they verify that on January 1st, 2017, I started with $583 in my account. And as of December 2023, I produced $10.7 million of profit. After my 2024 year, which that audit will be available, the updated audit in Q1 of 2025, I'm at just over $12.5 million in gross profit. Now, I say this not to brag, but so you know beyond a shadow of a doubt that the person that you're learning from today, that you're going to spend time consuming information from, is credible, is qualified, and is actually putting the techniques that you're going to learn into practice every single day. I'm not an armchair quarterback just teaching general theory of the market, but not putting my money where my mouth is. I trade every day. Of course, you can see today's trades as an example of that. We will recap those trades later on in this class. But let's go ahead and start here with chapter one, which is the anatomy of candlesticks. By the way, don't let me forget to tell you, trading is risky, and my results are not typical. So please, manage your risk and practice these new strategies that you're about to learn today in a safe, simulated environment before putting real money on the line. All right. So let's get back into the anatomy of a candlestick. Candlesticks are actually the most popular type of chart that is available. There are other types of charts that some people use, but to a much lesser extent. The reason candlestick charts are so popular is because the individual shape, the individual candlestick provides more information about the price action of that stock or that financial instrument. And that information is used to help traders interpret market strength or market weakness, market sentiment. So this chart right here is a one minute chart. And what that means is that every single one of these candlesticks right down here, these are all candlesticks, represent one minute of time. So the market opens at 4 a.m. Eastern Standard Time for pre-market trading. So starting at 4 a.m., exactly on the dot, that first candle opens. So it's 4 a.m. We're going to say 4 a.m. right here. And the first candle of the day begins. It has its opening price. And that right there creates a line. So that's our first piece of information, the open. Let's just say for a moment that the price dips down for a second and then it squeezes up and then it closes right here. So now we have the close, we have the high, and we have the low. Those are the four pieces of information we have. The open and the close are connected to create the body of the candle. And the high and the low stay just as candle wicks, just as these lines right here. So this would be the first candle. Now this candle, with these four pieces of information, happened to take this shape. This is a shape that communicates sentiment. So other traders would look at this candle and draw a conclusion. What conclusion would you draw if you saw this candle on a chart? Hmm, the stock seems strong. It's moving up. It looks really good. But what if, let's say, it had taken a different shape? Let's say, for instance, that we had the open. It dipped down here for a second. It squeezed up just for a moment, goes higher, and then comes all the way back down and closes right here. Now this sends a little bit of a different signal than the previous candle we just looked at, right? This tells us that, yes, the price did squeeze up, but obviously it came all the way back down. So the individual shapes of these candles are sending signals to market participants. So a green candle opens at the bottom and closes at the top. So this is a green candle. Open at the bottom, closes at the top of the body. This is the body of the candle. These are the candle wicks, also called the shadows. So lower shadow, upper shadow, lower candle wick, upper candle wick. And a red candle opens at the top and closes at the bottom, which signifies that it's red, that the price had declined. So it is important that the color of the candle is distinguished between candles that are green and going up and candles that are red and going down. Some people who have color blindness will use colors that are easier to see, like a hollow or a solid fill. So it's one or the other, or even like a hatched fill, just to create a better, easier to distinguish. But whatever, however you do it, it is important to be able to distinguish between a green candle and a red candle because they actually mean different things based on the position of the open and the close. So when it comes to the candle body size, the size of the candle body communicates sentiment. The larger the candle body, the stronger the sentiment. So again, back here on the whiteboard, let's just say we had 4 a.m. We open. We don't drop at all. We just go straight up here and we close at the very top. So that's our big candle. It's a long body candle that's very bullish. On the other hand, let's say we open and we just go straight down, right? We open here. We close here. This is also the high. This is also the low. We opened at the high. We closed at the low. This is very bearish. This is very weak. So these are long body candles. Long body communicates strong sentiment in the market. So if we look at the stock that I traded today, just as an example, we're going to use this as a case study. We're going to keep coming back to it. If we pull up the one minute chart, this right here is a one minute chart. And there's some things on here that you may not understand yet because we haven't gotten to it, like technical indicators and some of these different lines. But what you can see here are long body candles. So see how you have those two long body candles right there? Those communicate a lot of strength in the market. In fact, we're seeing a lot more long body green candles than we are seeing long body red candles. So what that's telling us is that the sentiment and the momentum is really to the buy side. There's more buying strength than selling strength. And we can see that in the volume profile as well. The volume is actually an indicator that tells us the number of shares that traded hands during each one of these candlestick periods. So again, this is a one minute chart, which means each one of these candlesticks represents one minute of time. So from 4 a.m. to 401, 401 to 402. Now we could look at a different time frame and then each candlestick would represent a different period of time. In fact, a long term investor might instead just use a daily chart like this right here, where each one of these candlesticks represents one whole day of time, which is fine and useful. And it has its purpose even for active traders like ourselves. But when it comes to jumping in and out of positions, we're not going to use daily charts. We're going to use primarily our one minute time frame. All right. So I'll move this up here for a second. Now, what the candle wick tells us. So if the body tells us sentiment, the candle wick also communicates a message and it communicates a bit of a battle. A large upper candle wick is bearish. It's bearish because it shows that the sellers were stronger. They pulled the price back down. Right. Although we had the squeeze up. So let's say we've got the open right here. We get the squeeze up all the way to here to the high. But then the sellers came in and pulled the price all the way back down. Imagine if it came all the way to red. So that means this was the open. This was the close. This was the low. And this was the high. What is that? What kind of message does that send? That candle is like an exclamation point. And I do want to think about this in a way that each one of these individual candlesticks are like letters in the alphabet. And as they combine, they form sentences and some of the sentences are going to say, buy me right now. And some are going to say, sell me. Don't get near me. Don't touch me. The shorts are in control. So you've got to be able to read those signals, which are right here on the charts. Now, I'm telling you that I've gotten to a point where I can read them very well. No, I'm not right 100% of the time. I have my losses just like anyone else. But I'm right more often than I'm not. And it's thanks to this ability to really fully understand the language of the markets. So the large upper candle wicks are bearish. Just take note of that. They show that the sellers were stronger and pulled the price back down. So then inversely, the lower candle wicks are bullish because they show that the buyers were stronger and they pulled the price back up. So let's say, for instance, we have a stock that has been selling off. So let's just say it moved up for a little bit. And let's just pretend those are full long body candles. And then the price pulls back. And then right here, we have this candle wick. All right. See how we have that lower candle wick. What that tells us is that although the price dropped, the buyers came in and bought it back up. So this could indicate the beginning of a reversal. And maybe the next candle makes a new high, which confirms it. So the early signal right here that this may be about to change directions would in fact be this candlestick shape in this context. Context is incredibly important. In fact, charts essentially are giving us historical context. That's really what they're doing. They're not telling us with certainty what's going to happen next, but they're telling us everything that has already happened. Now, when we really understand the context of what's happened, we're going to recognize certain patterns. So being a successful trader means being pretty good at pattern recognition. We start to realize this relationship that when this happens, a bottoming tail candle like this, this green three bar candle follows these three bar candles. So you start to recognize that, okay, right now in real time, I see this and now I'm predicting that this is what's going to happen. And this is how we're actually able to see into the future. And maybe we're only doing it with 65, 70% accuracy, but that can be enough to make millions of dollars in the market. Okay, so the candle wicks do communicate indecision. They tell us that although the price dropped or spiked, there was a battle and it brought it back in. So the larger the candle wick, the bigger the battle. Now, what I want to get into now is analyzing the individual candlestick shapes. So now that you understand the anatomy of a single candlestick, the body with the candle wicks, we're going to look at the different candlestick shapes that are the most common in the market. Because the shape of the candlestick sends a signal that communicates a message about sentiment, right? So here's a candlestick chart. This is just for SNTI, a stock from a couple weeks ago. And every single one of those candles, you could read into them about the sentiment that they create. The high volume green candle, the red candle with a large topping tail up here. So some people will overcomplicate their trading by adding a lot of technical indicators. And unfortunately, by doing that, sometimes you muddy the water to the point where you can barely even see the actual candlestick themselves. You're not even seeing the candlestick because now you're just looking at all of these different indicators that are overlaid on top of it. And so I'm a big advocate of keeping it simple. I like to use level two in my trading. We'll talk about that a little bit more later in this class. But level two shows us the depth of the market. So this is showing us all of the orders that are currently live in the market for this stock. People that want to buy it and people that want to sell it. So this is very important in order for me to be able to make a prediction about which direction the stock is going to go. If I see a really big seller, that's going to be a problem if I think the stock is going to go higher. If I see a really big buyer, then that's probably supporting the stock at this level and indicates that we may go higher. So level two is very important. That's sort of looking forward. But the chart is equally important for understanding context. And the price action is what creates each one of these candlestick shapes. So if you're missing out on the candlesticks because you've had so many indicators, you're sort of losing your true, your source of truth. The data, the actual price action is the source of truth. Indicators are just complex formulas that can be used as kind of an aid to help you interpret price action. But they shouldn't be used to replace looking at the candlestick charts. So if we look at the individual candlestick shapes, there are a few that are very important. Now, you've already learned one of them so far, a long body candlestick. So long body candlesticks are exactly as they sound. A candle that has a long body. These are candles that communicate very powerful emotion in the market. Strong sentiment. Big green candles, super bullish. Big red candles, super bearish. So we've got our long body candles. Those are important. And then we have our short body candles. So short body candles communicate, obviously, less strength. But let's imagine something. What if we had a stock that started to squeeze up? You had a nice green candle like this. And it's a long body candle. Then you have another one that's a little shorter. Another one that's a little shorter. Another one that's a little shorter. Another one that's a little shorter. Another one that's a little shorter. What is the message that we're receiving? Now, of course, if you just saw one candle by itself, it's out of context. So you wouldn't have any real context. And in fact, maybe I'm getting ahead of myself because this would be considered a multi candlestick pattern. But nonetheless, these smaller body candles in the context of having just been next to large body candles or long body candles indicate that the trend is exhausting. And what's likely to happen is a reversal coming back down. And often those will be formed by long body candles. Now, what if on the flip side, the move started with small body candles, but the candles start getting bigger and bigger. Now, that indicates some real strength in the market. Now, of course, that's not going to last forever. And so how do we know when this is going to reverse? Well, we look at the actual shape of the candle. So once we start to get that topping tail candle with sort of the opening close around the same price, or maybe we get a candle that looks kind of like kind of like this with a little body and that topping tail. That's when we start to notice, OK, we're starting to have a little battle that's forming up here. So that's the place to get out before this happens. So, generally speaking, these big red candles are usually somewhat predictable. The problem is most beginner traders don't see them coming because they haven't learned to pick up on the subtle cues that they're about to happen. And so they wait for them to actually start to happen. And then you're panicked selling in the middle of the red candle when no one is buying. And so then you get a bad fill in your order. You get filled as the price is dropping and you might even take a loss on the trade or you give back profit that was unnecessary. If you had been better at picking up on these subtle hints right here that a trend shift was about to take place. So short body candles are important and they're most important when they take place or form in the context of a trending price. This is an important thing to understand. Context is critical. So if you have the price going sideways, then you're not typically going to see. A long body candle, but a short body candle when the price is already going sideways doesn't really carry as much weight. The fact that the price is going sideways already communicates that there's some indecision. There's sort of a battle between buyers and sellers or there's just indifference. No one really cares about the stock. So the small body candles don't mean much. But a small body candle means a lot if you've just had 10 long body candles in a row. So context really is important to be able to sort of read into is this significant in the current position. So now the next type of candle is called a doji candle. Now candlestick charts are Japanese. And so some of the names for some of these candlestick patterns are Japanese in origin. So the doji is a candle that opens and closes at the same price. So this is the open and it's also the close. However, it's very rare that you have a candle that looks like that. In fact, the only time you really have a candle that looks like that is if nobody is trading the stock. So just kind of like a minute passes where the price didn't change because there was no trading volume. If there's actual volume in the stock, then you're not usually going to see that. But what you might see is that it opens, the price pops up to a high, drops down to a low, and then comes back up and closes more or less at the same price. And this is called a doji. Now there's a couple different types of doji. This is a typical doji. This would be a long-legged doji. What's different between these two is that the upper and the lower candle wicks are longer. And this communicates a real battle between buyers and sellers. This is called a gravestone doji. The open and the close are the same, more or less. And it could be a small body, but it's more or less the same. And it has a larger upper candle wick and no lower candle wick. So again, context is everything. So in the context of a stock that's been squeezing up here, right? So let's just imagine the stock's been squeezing up and then this candle forms. This is indicating a reversal is coming. The price squeezed up, got pulled back down. The reversal is already starting. In fact, as the price dropped back down, the reversal began. And confirmation will be the next candle making a new low. So that's a gravestone doji. Now there's also a dragonfly doji. A dragonfly doji looks like this. So a dragonfly doji has the lower candle wick or the lower shadow, but no upper shadow. So these are the different types of dojis that we see. And typically, this is what we see the most often. And it definitely communicates a battle. So remember, if the price is going sideways, seeing dojis, not really that significant. The price going sideways already indicates indecision. The doji is a candle of indecision. It's up. It's down. It opens and closes to the same. It's a battle. But when this price is already going sideways, the battle is not surprising. It's significant when at the top of an uptrend, you see a battle. Because that's when it's like, uh-oh, the people that were really bullish on this suddenly are not in as much of control as they were before. Because now, rather than seeing another long-body green candle, we're seeing a doji form. We're seeing the whip. So some sellers are getting stronger. The long-biased traders are getting a little more cautious. And that's being communicated right on the chart. Now, the actual orders that are going through the market that create these shapes are visible on your level two data. So it's actually in your trading data right here on your time and sales, on your level two, where you can actually see each individual order that goes through that ultimately create these candlestick shapes. So the candlestick shapes, in a sense, are historical because they're documenting price action that has just occurred. And this is documenting the actual orders that are taking place, which create the candles. And it's displaying the orders that are currently on the book to buy or sell, which is potentially going to create future candles. So a combination of, so most day traders use a combination of level two and time in sales and looking back at charts. Now, the next type of candle I want to show you, we've got the long-body candle, the short-body candle, the doji candle. And now we're going to look at the hammer candle. So a hammer candle, again, I'm going to say it again, all about context. It's a hammer in the right context. So we're going to have a stock that's been selling off a little bit. And it's fine if this is a stock that's at low of day. It's also okay if this is a stock that, you know, just made a big move up but is currently on a pullback. A hammer is a candle with a small body and a large, lower candle wick. That larger, lower candle wick shows that although the price sold off, it rallied back up before the close of that candle. And this is called a hammer because we're hammering out a base. This is considered the low and potentially support. The confirmation is when the next candle opens. So if we actually get kind of really zoomed in here, and I'll just make this even bigger so we can get zoomed in on this hammer. So we've got a red candle, another red candle, and then right here we have our hammer. So the next candle, the close of this candle. So this was the open and this was the close. So typically the next candle, and actually I should draw just a little bit lower like that. Well, actually I'll leave that like that. I'm going to make this one like this. So remember that each one of these candles are one minute of price action if we're doing a one minute chart, and we are. So let's just say this is 4 a.m., this is 4.01, this is 4.02 a.m., just for example. All right. So when this candle closes at exactly 4.01, this new candle opens. And so the close and the open will generally be at about the same price, right? It's only one second. So it's possible that you could open just a smidge higher or a smidge lower, but generally this is the way it is. You have a candle that closes, and then the next candle opens at about the same price. And then it closes, and the next candle opens at about the same price as the previous close. And so in this case, it opens, it sells off down here, has the body, and then we have our lower candle wick. All right. So right here is our lower candle wick. So now this candle opens right here at about the close of the previous one. And let's just say it starts to move up. So now the candle is green. It's beginning to form, right? There's no low. It just opened right here and is moving up. Now, the high of this candle, let's just say, just for the sake of argument, the high of this candle is, I said three, but I wrote a five. So we'll just call it 550. So the high is 550. So if this candle breaks over 550, something important has happened. We have a shift in trend. We have now just had our first candle that made a new high. And that is the confirmation that this is a reversal pattern. And then the next candle is going to open and likely continue that moving up. And then the next candle opens and likely continues moving up until you have a first candle that does the trend the opposite way, where it breaks the low of this previous candle. So we often move in waves in the market. So a hammer candle is a candle with a small body and a bottoming tail, and it occurs at the bottom of a pullback. Now, it doesn't have to be a stock that's at low of day. It's okay if it's on a stock where we had, let's just say, for example, we had a nice move up three, four, five green candles. We had a little bit of a pullback. And then right here, we have a little hammer. And then boom, that's the reversal for a move back up. That would be fine. That's still a hammer candle. It's at the bottom of a little bit of a pullback. It doesn't have to be at low of day. It can just be a little dip like that. But this communicates with that lower wick. Remember what those lower wicks communicate? That buyers are coming in. Buyers are stepping in. So the places that I want you to get really focused are on these points where price is changing. So we're wanting to buy basically at these wave points. This is where we want to be buying and selling. We want to sell here. We want to buy here. We want to sell up here. If let's just say this was about to be another pullback. And then we want to buy down here for the next leg up. That's what we're trying to do. We're trying to make accurate predictions about where to buy and where to sell. So the next candlestick shape is called a shooting star. A shooting star, again, context being everything, takes place at the top of a squeeze up. A shooting star is essentially an inverted hammer. It's a small body candle, but instead of a lower wick, it's inverted. So it has an upper wick. And what this candle is telling us is that long body, nice squeeze up. And then all of a sudden we're seeing this reversal. So we've got the topping tail here and it's pushing the price back down. So now this candle closed right here. It's a small green candle. This candle opens right here and goes lower. That's your spot definitely to be out if you're not already out. Right. Then we let it pull back. We get maybe the same exact shape except inverted. And then this is where we buy right here. We're back in. And then we're looking for that move back up. So these are our important places that we're watching when we have these changes in trend. So this is an inverted hammer, but it's called a shooting star. The next candle is called a hanging man candle. Now, a hanging man candle is a bit ominous. And this also occurs at the top of an uptrend. So a hanging man is also the same shape as a dragonfly doji. So remember we said this is a gravestone doji? A hanging man doji looks like this. That's a hanging man candle. So we've got a hanging man right there. And in fact, you can even put a small body on it. And that's still valid. So this is a bearish indicator. It even though the problem here with this, it's not as bearish as a gravestone doji, but it's also not great. A gravestone doji is worse. That's worse. But the bottoming tail, while typically bullish, unfortunately, at the top of this position here, still indicates that there were sellers that came in. Now, it's good the buyers came back up, but this is a little ominous. So we have to be careful because now we've got a little bit of a battle that has come into play here. The last two candles are bullish and bearish engulfing candles. So a bearish engulfing candle would look like this. You've got the small green candle. The next one opens just a little higher. It gaps just a smidge higher and then fully engulfs it going red. So the open is slightly higher and the close is lower. It pulls back and then you get a small candle here. And then this candle opens down here. It has to gap just slightly lower and then it completely engulfs it going back up. So engulfing candles are not as common because they do require a slight gap down to fully engulf the previous candle. But it can happen and they're quite strong in sentiment, whether it's bearish or bullish depends on whether it's green or red. So now you understand these individual candlestick shapes. We've got two, four, six, eight of them. But of course, we have a couple of different doji candles as well. So each of these individual candlestick shapes form, of course, our individual letters in the alphabet, so to speak, that help form our signals in the market. So as we look at this chart right here, we can see that there's a few long body candles, right? Very big, long body candles that communicates really strong sentiment. That's something that we can get excited about. This right here, look at that top. So this is when you see it now, it's like, wow, that makes sense. So I would have sold as soon as this red doji was forming. And that would have saved me a lot because look at how far this came down following that candle. So as this was squeezing up right here, it moved higher. And then we had a little pullback right here, just a brief one. Now, that was acceptable, a small pullback, and it pushes higher. You do have a small doji right here. And in spite of that, it pushes higher. You have another small doji right here, but in spite of that, it pushes higher. But after these really big, huge, long body candles, we know that a reversal is coming. They don't just go up like this forever. So when you start getting long body candles, on the one hand, you want to ride that momentum as long as possible. But on the other hand, you've got to keep your eyes open for potential reversal indicators. And that doji is a picture-perfect one. Doji at the top of the move. This right here is a shooting, oops. That right there is a shooting star candle at the top of the move. So you've got this nice squeeze up, long body candles. Trend is starting to get a little exhausted. You've got a doji. It pushes a little higher anyways, and then squeezes up and reverses. Because it's a red candle, it indicates the reversal has actually already begun because this candle closed red. So at this point, I would be getting out as soon as we had this top and this doji is forming. So the kind of cool thing is that you can watch candlesticks forming in real time. So if I pull up a chart here, I don't know if there's anything really moving a whole heck of a lot right now. It's in after hours. But we'll just pull this up. This is a 10-second chart. So every 10 seconds, a new candle is going to open. So do you see how right now this candle is sort of changing shapes? It's changing shapes because of actual orders that are going through. So there it became a long body candle. Now, this is a 10-second chart, which I really use more as a teaching tool than actually for executing trades because the candles open and close so quickly. Sometimes I'll use this to go back and show someone like a very small pullback that I noticed in the middle of a move. But nonetheless, this is a good opportunity for you to kind of see how you can watch candlesticks as they're forming. So this is your 10-second chart. Now, if we jump back over here to the one-minute chart, right, we have a little bit of what's this candlestick shape right here? A little bit of a gravestone doji. And then what followed was a small standard doji. So you could see you got a couple long body candles here, then a little pullback, sort of gradual rise back up, a little bit of a battle. Anytime we see these topping tails, it shows that although the price squeezes up, it gets pushed back down. I do not like seeing topping tails. Sounds like a Dr. Seuss book. But I really don't. I do not like them, not one bit. It's nice to see this is rallying back up. But generally speaking, topping tails are not a good signal. It just communicates that there's too much of a struggle, as you could see sort of back here. So, but in real time, you can kind of see how these candles are moving around. So all of a sudden, it's like, okay, there's another topping tail forming. And how much time is left on this candle? Let's look at our timestamp right down here. So six, five, four, three, two, one. And you know what? So it actually, my clock might be slightly out of sync. Something that you can do, and this is actually just as a, this is totally a side note, but I'll just share it with you anyways. So you can go into your clock and if you go click on your settings, you can click right here. So it's actually been about a day since my clock last synced. So I'm going to click sync now. And it sometimes will adjust your clock just by like, even just a second. But that'll make a difference. So make sure you're syncing your clock from time to time. Anyways, okay, so that was just a good little tip in the, as a side note. All right, so now we're going to jump back out of here. Now, our hammer candlestick there, we've got a good example of that. A squeeze up, then dipping down, bottoming tail. What's the bottoming tail? It's bullish. The buyers bought it back up. So then we get a big rally. Look at those big long body candles from 660 to 760 to 860. It's amazing. But candlesticks are only significant on the right financial instruments. So when you're looking at candlesticks, you should only be looking at the right financial instruments to trade. Candlesticks form on every stock, ETF, mutual fund, currency, cryptocurrency, commodity. But the patterns that we look for are only valid when we have high relative volume. The high relative volume indicates that many traders are actively watching the stock and that the patterns that are forming are not just kind of like, you know, look, I mean, everyone has seen, you know, a grilled cheese sandwich that looks like the, you know, the Mother Teresa or Jerry Garcia, right? While you might genuinely believe that that's a message from somewhere else, it's just sort of a coincidence. You know, it just sort of happens. And so you can have patterns that form on charts that just sort of happen just through the randomness of a couple of people placed orders. And, you know, all of a sudden you've got a pattern. But do other people see that pattern? Do other people respect that pattern? And the answer is yes. When the stock is obvious, the answer is no. When it's a stock that doesn't have high relative volume. So it's very important that we're focusing on the right types of stocks to trade. And again, it doesn't have to be stocks. It could be a cryptocurrency. It could be a futures, a forex pair or a futures commodity. But if you're trading the wrong type of stocks, you're going to see charts like this. They don't make sense. And the signals, they're going to be essentially meaningless. So what I'm going to do for you guys is I'm actually going to put a link in the description where you can download a set of PDF resources. These are totally free. You can download them. And one of the ones in this suite of resources that you'll have access to is my stock selection PDF. This will share with you my five criteria for how I evaluate every single day whether or not a stock is worth trading. Now, if we look at my trades from today, you'll see that I traded how many different stocks? Two, four, six, seven. Now, I have a couple that I'm red on. No big deal. They're relatively small losses. And I have a number of stocks that I'm green pretty nicely on. All of these stocks share the five common denominators that you'll be able to learn in this stock selection PDF. It's really important. One of the best things you can do to mitigate your risk is to make sure you're trading the right type of stocks each day. Okay, so part three or chapter three, multi candlestick patterns. So think of individual candlesticks as letters of the alphabet. Combined, they form sentences. These multi candlestick patterns communicate buy and sell signals. I see them plain as day on the charts, and I want you to be able to see them just the same. So the simple and by the way, for warrior pro members, these are for my students at warrior trading. You'll learn all of my favorite candlestick patterns in detail with live trading archives. And each of these patterns will include your entry, your exit, your max risk, your profit targets, and how to find the setup in real time. So there are more than a dozen different patterns that I trade on. Well, I don't trade all of them every single day, but on basically a daily basis, I'm pulling out any one of these patterns when I see it. In fact, more important than the perfect pattern is making sure you're trading the perfect stock. But naturally, a pattern is what gives us the conviction to take the trade, because the pattern is what's stipulating this is how much we're willing to risk, and this is how much we stand to gain. So this is really the basis of trading in terms of technical analysis. So the simplest pattern is called candle over candle. What is candle over candle? Candle over candle is when you have a candle that makes a new high versus the previous candle. So I'm just going to demonstrate this for you. I'll do it right here on the whiteboard. Super simple candle. The simplest pattern that exists. You have one candle right here. And well, actually, let's do it the other way around. So we've got this candle right here, red candle. That's your first candle. And then this right here is your candle over candle. So what happened here is this candle closed. And actually, this isn't the absolute best example. So it opens here. It closes here. This candle opens around the same price and breaks the previous high. So right here, as it breaks the previous high, this is what we call a candle over candle formation. This candle broke the previous high. So inversely, candle under candle is going to happen when you have a stock that squeezes up like this. This opens at about that same price and then drops back down. Candle under candle. This is the simplest pattern. But what these patterns are communicating is the change in trend. So remember, if we look at a chart pattern, and some of them are going to be a little bit more clear than others. But we'll just pull up, I mean, we could pull this one up here. So this one is the one we were just looking at before that had these couple of dojis at the top or topping tails. So what are areas that we get interested in? The reversal points. So the highs, the lows. The highs, the lows. The highs and the lows. So CURR, the stock I traded this morning. And this one, we could look back at this. And ultimately, the places that you want to buy, if possible, are on the lows. And the places you want to sell are at the tops. So these are the areas we're paying extra close attention. What are the candlestick shapes that are forming on these dips or at these peaks that indicate that the trend is going to shift? So if we go back here, candlestick shape there, what was that? That's a shooting star. See that topping tail with the small body? That's a shooting star candlestick. And then what happened following that? Well, the price reversed. The price came back down. Now, I knew that was going to happen. It's pretty obvious when you see that candlestick shape, but not all beginner traders did. What about here? You've got a nice pullback right there and a squeeze higher. And in fact, on this stock, I took my first entry on this one. This was CURR. And I bought my first position on this at, let's see, this morning. Let me just go back to this. So this is actually my trades are out of order here. So first trade on this was at $2.61. So that was on this micro pullback that occurred. No, sorry. It was just a little bit higher. It was must have been on this pullback right here. So as this squeezed up, we got a little bit of a dip down to the bottom of those tails. And then we got this squeeze back up. So I was actually buying this dip. Now on the 10 second chart, it'd be a little bit more clear because on that 10 second chart, you'd be able to see, oh yeah, this did pull back right in that area. So right here, get zoomed in. So that right in this area, you get this little dip right here. So I like to buy these dips, these little dips right here. So I actually took a couple of trades on this. I had a trade in this area. I had trades in this area right here for the breakthrough, the high. I had trades on this pullback, this pullback. I had trades on this pullback looking for the squeeze for the high. These topping tails did give me cause for being a little bit more cautious and the price did pull back. But then we put in another rally, micro pullback and a squeeze up to 460. And then we kind of rolled back over a little bit. All right. So let's jump back onto our slide deck. So candle over candle is the simplest pattern. This is the next one that I want to teach you. This is a multi-candlestick pattern. And it's one that I use in my trading pretty much every day. Stock is squeezing up. So when a stock is squeezing up like this, I'm going to see it on my scanners. So I use these scanners right here to search the market in real time for stocks that are moving. So Fpay just hit the scanner just a moment ago. LAES was the one that hit the scanner a few minutes before that when we were looking. So as the stock is squeezing up, I'm looking for that pullback, which is going to be my first entry. So right here, this squeeze up, a nice little pullback. That takes the form for my first entry. So what we look for in this context right here is pullback, base, first candle to make a new high right there is your entry. Your max loss is the low of the pullback. Your profit target is a move back to the high of day. So we'll go back onto our slide deck here. We got the red candle forming, pulling back. And right here, we're bottoming out. We're looking for what? First candle to make a new high. So the next candle makes a new high right here. Boom, squeezes up. And that would be, I mean, of course, it's awesome when it goes all the way back to the high in one candle. Sometimes it does that. Sometimes it's a little more gradual. But nonetheless, that's the setup that we're looking for. So the squeeze up, the pullback, the first candle to make a new high. Now, I hear some of you guys saying, wait a second, Ross, what time frame do I trade this on? Should I be trading this? Look and look at your charts. You've got one minute, you've got five minutes. What is all this? So when I see a stock moving quickly, as an active day trader, I'm primarily using the one minute time frame. Yes, I have others up that I look at and I have the screen real estate space to do that. But I'm primarily executing my trades on the one minute time frame. The one minute chart. So it's the one minute chart where I'm looking for that pattern right there. Now, sometimes we'll have a stock that's moving really, really fast. And it might not even give us a proper one minute pullback. All we get is what's called a micro pullback. And that occurs on the 10 second chart. And I'm okay with trading that. And I, of course, every time when I'm trading in the morning, I'm giving you guys my live commentary. So members of Warrior Trading, you already know that. But those of you guys who haven't joined or haven't done a two week trial before, when you do a two week trial, you could listen over my shoulder while I'm trading. So you get to benefit and piggyback off all of my years of educated intuition. You get to hear that real time commentary where I'm saying, okay, this is the pullback. I'm looking for the first candle to make a new high. I'm looking for the break of five or whatever the case may be. So, oops, so we'll go back into the slide deck here. All right. So, so now next slide, we'll go through this again. That's fine. So that's that pattern. And this is the thing where right here, you have to be able to kind of make the prediction of visualizing what's going to happen next. Now, if this candle went red, we wouldn't take the trade because it didn't break the high. So in fact, this candle right here becomes a trigger candle. If the price breaks the high, it's confirming a candle over candle reversal, right? We're getting that two candle reversal pattern. So that's what we're looking for. And if we don't get it, we don't take the trade. We just keep waiting. So maybe another candle pulls back and then it goes. And then we take the trade there. So a lot of the time I'm just sitting here waiting, sort of sitting, waiting for that setup. And then as soon as I see it, boom, I strike, I jump in and I jump in with conviction. Now, the psychology behind this pattern, the reason why it works is that a rapid move up attracts traders. So we got the rapid move up in the first place right here that attracted traders, right? That got traders excited. Then you get, and that's especially true when the move is driven by a breaking news catalyst. So it's 8 a.m. We've got breaking news coming out of the company that, you know, all of a sudden, whatever the case may be, they've got some new drug they've just released or clinical trials. Now, we often like trading pharmaceutical and biotech stocks because these are stocks that can go up 200% in a single day with good news. I mean, they can even go up higher than that. It's really incredible. So for traders with relatively small accounts, that's the type of stuff that we really like to trade. And even for traders with slightly larger accounts like mine, I still like those stocks because I can get such great risk to reward ratios on them where I can get really nice winners. So the first pullback is formed by profit taking from people that were holding before the news came out and possibly some early short selling. Some early short sellers who are like, you know what? I think this is up more than it should be. I'm going to short it. But if the stock holds at least 50% of that first leg up, so that first leg up is created. So right here, we've got the first leg up boom right there. So when this pulls back, our 50% line is right down here. So it's okay if it pulls back a little bit. It's okay if it pulls back a little bit. We don't want to see it go like that. That's not good. It can pull back to about the 50% line. And then about there, I said, really like to see this thing bottoming out. So green candle and then that first candle will make a new high. Second candle pushes higher, right? Now, again, you got to make sure the open and the close are about the same, but you get the idea. So that's the spot we're looking for. Now, maybe it doesn't pull back three candles. It just pulls back two candles. That's fine. When it's ready to move higher, we'll watch the price coming up to this level. And when I see other traders buying and I see that the price is about to break this high and we're going to get that candle over candle formation, that's when I'm jumping in and pressing the buy button. That's when I'm executing the trade. Now, it doesn't matter if you trade with Webull, you trade with Thinkorswim, trade with Robinhood. It makes sense if you're using a desktop platform for executing these trades. And the reason is because you want to be able to look at your level two data and really see the stock kind of moving in real time. But nonetheless, it's as long as you're able to see it right in front of you and you've got the buttons to click that buy button, the actual broker doesn't make a huge difference. So I will typically buy the first pullback and the second pullback. So a stock squeezes up. I buy the first pullback, squeezes up, and I buy the second pullback. By the time we're getting the third pullback, I usually don't like to trade up there. I feel like it's too extended. So first and second pullback. And then I don't want to overstay my welcome. I continue to trade first and second pullback on the one minute chart. And then I'll also consider the first and second pullback on the five minute chart. Now, we'll talk more about that in a second. I don't want to get ahead of myself. All right. So let's look at this pattern. All right. So is this something that we should be buying right here? What do you think? Yay or nay? Well, the volume profile looks pretty good to me. We've got green volume bars, lighter volume red. MACD is open. So I would say this looks like a yes. And you've got that nice bottoming tail right there and the rally back up. I want you to get to the point where you can see this in real time. And you could look at this and say, this is a no brainer. If I'm not buying this, I've got to be some kind of really some kind of special stupid because this is a clear as day setup. Now, I sometimes say that to myself. I'm like, Ross, you've got to be kidding me. If you didn't just buy that, you're an idiot. This is it doesn't get simpler than that. So what I did early on is I would print out charts like this. So for those of you guys who download my PDF resources, you'll be able to have PDFs that you can just print. So print out those PDFs, put them around your desk. And I want you to surround yourself with just like you want to surround yourself with the type of people you want to become. That's good. You want to surround yourself with the type of people you want to become. They rub off on you. Surround yourself with the type of charts you want to trade. Because when you're looking around your desk and you're seeing that, then when you start to see it forming in real time, you know what you're looking at. And it's really cool when that kind of transformation happens of, I've got all these charts printed out and now I'm seeing this right here. Now, this hasn't happened yet, but I can tell. The stock meets all five criteria of stock selection. The pattern is there. It's time. It's game time. Here we go. And boom, you get the trade. What about this? Nice rally up, pullback, rally up, pullback, high volume. We're moving in the right direction. That looks like a nice setup. So we take that trade. What about this? Nice rally up, light volume, pullback. Yes, that's a nice entry. So I want you to print out these charts, put them around your desk. And in real time, as you start seeing these setups forming, test yourself. Practice in the simulator and see if you can have the courage to actually press the buy button. All right. Number four, popular charting timeframes. So that's why I didn't want to get ahead of myself before, because now we're going to show you these different timeframes. So most day traders, most active traders are going to use one minute timeframes. We use one minute timeframes because these stocks are moving so quickly that if we wait for a five minute setup, we're going to end up just completely missing it. And that's not, we don't want to miss setups. So the way I have my charts laid out is I have four charts for one stock, but each of them are a different timeframe. So I've got my one minute, I've got my five minute, I've got my daily chart, and I've got my 10 second chart. I'm primarily using this one right here. And sometimes I'll adjust these to kind of make this one smaller and, you know, to make the one minute, the biggest one since the one I'm focusing on. So on my one minute chart, this is where I'm primarily looking for trades. But if I've already gotten the first pullback and the second pullback on the one minute chart and the one minute is getting extended, I may say, all right, now I've got to wait for a five minute setup to form. So what I'm looking for there is for that same pattern to form on the five minute chart, where you've got a big green candle and then a couple of red candles. So think about this for a second. So each five minute candle like this, that contains five one minute candles. So if we actually broke it down, it probably looks something like this, right? So that five minute candle has five one minute candles that obviously opened and closed to create this shape. Now it's possible that you could have had a huge green one and then a red one and then it goes back to green. But at the end of the day, this five minute is telling us we opened here and we closed here. So now the next candle pushes higher. So again, you get five more green candles. So one, two, three, four, five. And then you finally get a red candle that forms. So now you get your red candle that forms. So you've got one, two, three, four, five. So now maybe in all of this, let's just say, let's just say for the sake of argument that actually popped up nicely here and then it pulled back right here for two candles and then it pushed higher. So we were actually able to get our first trade right there and then it squeezed up again and then it pulled back for just two candles and then it squeezed up one more time. So we actually, let's just say we already got our first pullback right here and our second pullback right here. So we've already traded twice on the one minute chart, but this is what the five minute chart is now looking like. So now it pops up here, but the five minutes a little extended, it drops back down and it pulls back. So is the, is the stock dead? Well, now in the five minute, it's pulled back for two red candles in a row, but then all of a sudden we start to rally back up here. We pull back again, let's just say. And now we get our first candle on the five minute that goes green. So sort of hide that for a second. So now all of a sudden your five minute is giving you that same pattern. So it's like this pattern that we just traded right down here. This pattern is now repeating on the five minute chart. And yes, there is a corresponding one minute pattern that's occurring inside it. But a lot of traders will trade five minute patterns. So it's kind of interesting here because you can trade the same stock multiple times, trading even the same pattern. You're just trading it on different timeframes. So how do you decide between the one minute, the five minute? How do you flip back and forth? I primarily use the one minute. In fact, I could live without the five minute. I use the one minute so much. But I don't want to completely disregard the five minute because sometimes there are nice setups that occur on the five minute chart. So if I see a five minute pattern forming and it's a nice pullback, I'll look at the chart. I'll consider it. And if the one minute isn't giving me a big red flag, I'll take the trade. But if the one minute has a negative MACD, which we'll talk about in a second, or a really high volume red candle, that could be a warning sign that's telling me don't trust it. The five minute looks good, but buried inside the five minute is a red flag. Don't trade it. So I always, pretty much always need the one minute to look good. And if the one minute doesn't look good, it pretty much negates the trade. But if the one minute looks good and the five minute looks good, then I may get another opportunity. So I usually end up trading on the one minute and then taking maybe a couple of final trades on the five minute before being done trading that stock for the day. Number five, let's talk about those technical indicators. I'm a big advocate of keeping it simple. Therefore, I only use a small handful of technical indicators on my chart. The first indicator I use on my charts are moving averages. Moving averages are a technical indicator. They're a mathematical formula that give you context. So what they do is they just tell you the average price of a stock. So over the course of a period of time. So let's just say you've got this stock right here and we're using a nine moving average. So I'll just do this. So a nine moving average right here, nine EMA, it's an exponential moving average, is going to be the right now at this candle right here. It's the average price of the last nine candles. So add all nine candles together, add all those prices, divide by nine, and boom, that's your average. So your nine EMA, exponential moving average, is always going to trail a little bit behind the price. You can't have the nine EMA be right at the current price unless, of course, the price has been just going sideways. So if the price has been moving up, then the nine EMA is going to be slightly below the price because it trails based on the average of the last nine candles. Now, the significance of the nine EMA is that it's a well-respected technical indicator. And so as the price comes down, we often expect that we'll find support at the nine EMA before making another move up. So if we have the nine EMA on our charts, then when we see it coming down, if we notice that bottoming tail corresponding with this well-respected level of support, that's going to give us additional confirmation that we should be taking this trade. So the nine EMA is an indicator that's helping support and help us basically decide whether or not this is a pattern and in a current position where we should take the trade. So I use three moving averages. I use the nine exponential moving average, and then I use the 20 exponential moving average. So the 20 is always going to be a little further down from the nine because it's averaging the last 20 candles. So it goes further back. And then I use the 200 way down here. Now, the 200 EMA, truthfully, is almost like not applicable on intraday charts, like one minute and five minute. The stock is always going to be so far above it. It doesn't matter. However, I leave it on all my time frames, but it's really significant on the daily chart. And I'll show you that in a second. So these are the three moving averages I use, the nine, the 20 and the 200. I color them where my nine is gray, my 20 is blue, and my 200 is in magenta. So these are very easy to set up on your charts. It doesn't really matter what platform you offer or you're using. All platforms will have a little area where you can add indicators. They'll sometimes be like Thinkorswim's platform on their charts shows a little picture of a little like, I don't know, beaker, like a science beaker or something. It's a chemistry lab. And you can go to the studies here and you can add a moving average. And then you just scroll down to exponential moving average. Where is it? Right down here. So you can add that to your chart. And then when you add it, you could choose your color and your time frame. So I set the length as 20 and the source as close. Now over on Daytrade Dash, which is the software that I use, FX there, just go moving average and then add exponential. And then once it's added, you can change the settings. So change the color, change the style, et cetera. All right, so the moving averages are really very simple. They're not complicated. It's easy to set up. And now it gives you context. In fact, when I look at charts without moving averages, I sometimes feel like it's kind of incredible. So let me just show you what this looks like. So we're going to turn off all the moving averages here. I'm going to turn them all off. I look at this and I feel like it's floating. I don't have context. I'm like, whoa, what? Something is wrong with this chart. And what's wrong is all of a sudden I put on that 20 EMA and it's like, oh, okay, now I get that. There's the 200 EMA. Okay, yep, I get that. There's the nine. Okay, yep. And then there's the volume weight average price, which I'm going to teach you about in just a moment. All right. So the 200 EMA is very well respected on the daily chart. Stocks below the 200 EMA, when they come up to it, almost always have resistance at that level. So 200 EMA is a level of resistance when the stock is below it. When the stock is above it, it can be a level of support. The volume weighted average price is, VWAP is the acronym. So we say VWAP, volume weighted average price. It's like a moving average, except that it includes the amount of volume that traded at these different prices. So it's a more detailed type of moving average in that sense. Now, I really like it because it actually shows us the equilibrium price of the stock over the course of the day. The exact average price over the whole day. So the VWAP is an intraday indicator. It doesn't work on daily charts. And it's factoring in all of the volume starting at 4 a.m. So it's a running average of the price. So it is showing you the exact average price of the stock. Why is that important? Well, if the stock is below that, it's bearish. If it's above it, it's bullish. And often we'll see that if the stock is above it and comes down to it, it'll hold that level as support. So we could take an entry up support potentially. We also notice that when we have a break over, a crossover, where the price was below VWAP and then suddenly crosses above it, it signals a shift in control from sellers to buyers. And likewise, or inversely, when the stock shifts from above VWAP to below, it's a shift in control from the buyers back to the sellers. So I keep the VWAP on all my charts intraday, and I find it very helpful. The next indicator is MACD. Again, this is an acronym for Moving Average Convergence Divergence Indicator. And it's an oscillating indicator right down here. It oscillates between positive and negative. And what it does is it actually is comparing the relationship of these moving averages. So moving average convergence means the moving averages are converging. They're moving together. And divergence is when they're moving apart. So when a stock is moving up quickly, the 9 EMA trails the price closer than the 20. So now these moving averages are actually moving apart. The price is moving away, and so we're having this divergence. That's when we're usually going to have the best trades. And then you'll have a point where the price starts to consolidate. And when it consolidates, the 9 EMA starts going sideways, but the 20 continues moving higher. And so now you get this convergence. So it's okay to have the oscillations of diverging, converging, moving apart, moving together. But when we notice the crossover, where the moving averages have actually come so close together right here that this signifies a cross, that indicates the front side of the move may be over. And now we're going to see a more sustained sell-off coming back down. So this is an indicator that I do use in my trading, but I only use it on the one-minute time frame. I find that the signals that it produces on the five-minute are too slow, and the signals it produces on the 10-second are too fast. So I'm only using it on the one-minute time frame. Number six, support and resistance. So in addition to technical indicators, which help us understand potential areas of support and resistance, the 9 EMA, the VWAP, I also draw support and resistance trend lines based on historical price action. This helps me understand potential future price action and areas where we might see resistance. So notice here how we have this ascending trend line. So this trend line was drawn by connecting these lows, and I just draw it, and it extends both to the left and the right. So it goes both ways. So then the price breaks below it, but then it comes back up, and now this actually, what was previously support, has now become resistance. And that is a common theme. So previous support becomes resistance. Horizontal support and resistance trend lines are the easiest to visualize and therefore the most popular and the most well-respected. And what's very interesting is that these typically occur around half dollars and whole dollars. Why is that? Well, in fact, if you looked at a chart, if you looked at the order book of a stock, what you would notice is that we'll draw lines here around half dollars and whole dollars. So we're going to do right here, we're going to do right here, and we'll do one more right up here. All right, so let's say this is 3, this is 3.50, this is 4, and this is 4.50. All right? So what we would typically see is as a stock starts squeezing up here, we squeeze up, we squeeze up, we're going to hit resistance at the whole dollar and pull back. And then we rally back up, boom, rally back up right here. We hit resistance at the half dollar, we pull back. We rally back up here, we break through that level, we come up to the whole dollar, and we pull back. Why does this happen? This happens because a lot of people put their orders right around these levels. So people put orders to take profit around half dollars and whole dollars. So if you looked at all the orders on the book, you would notice that the orders are clustered around half dollars and whole dollars, and there are fewer orders in between. So these are sell orders that are already on the book for people to take profit. So as we approach these areas with a high degree of selling, we're going to see resistance. It's going to pull back. And then if it can break through that level, if it can hold over it, then we've got the breakout. So we often see at these half dollars and whole dollars that we tap it a couple of times before breaking. That is very common. So here you could see we tap $6.50, we tap $6.50, we tap $6.50, and then finally we break $6.50. Now, this can also be in the form of daily resistance. So a double top here, just under $15, very common. So a high here. Now, when the stock comes back up, a lot of traders are looking to the left and up to ask themselves, where is nearby resistance? How high can this stock go before it runs into resistance? And so naturally, you end up looking at a candle just like this. Now, this candle was a high volume day where the stock squeezed up and sold off. Some people would say, well, if the stock is squeezing up, what about this area here? Wouldn't this be resistance? No, this would not be resistance. Because the resistance that was created here was broken on this day. Anyone who is still holding here who wanted to sell would have been able to sell on this day. So they're not going to be creating resistance as the price moves up here. All right. So this is basically a clear window on the chart where there's no resistance to the top of that candle. So this then casts sort of a shadow backwards right here, and then it moves up to the next candle. So you've got a little high there, and then you move up to the next candle. And then a little high there, and then you move up to the next candle. And a little high here, and then you move up and so forth. So this double top right here, right around half dollar. And now if it comes back up to this level again a third time, it's going to be resistance. Because now it's been tested twice. It's going to be an issue again in the future. So this is very common. Now, the way I draw trend lines on my chart is pretty straightforward. I could pull this right here from the toolbar. I could just grab a trend line like this, and I could just click it just like that. And boom, I've got a trend line on the chart. So that's how I usually do it. We can see CURR from today. So this one, I drew this trend line right at the top, the high of this candle. So that was the pre-market high. We came down, we came back up, 450, retested it, pulled back, came back up, broke through that level. Came down, retested it, previous resistance became support. And then we got to squeeze up to seven. Right up to the whole dollar. Lots of sellers up there, couldn't break that level, and it sold off. And so, you know, we ended up getting this nice squeeze, but then it pulled back and dropped back down. All right. So now ascending and descending resistance levels. These can be a little bit more abstract because different traders will draw them differently. So, and they can, this is a daily chart for Tesla. These lines can be well-respected over the course of years. So this is a descending resistance line. So when the price comes up to it, you know, you've got that very well-respected level on the chart. So this is where we see the stock holding, holding, holding, and then resistance as it comes back up right here. That is very common. So I'll just, just before we jump on to number seven, I'll just jump over here for one more second. And I'll just demonstrate drawing some trend lines for a second here. So let's do a trend line right here. Let's connect these two right there. Interesting, right? That's probably not a coincidence, right? You end up having this ascending resistance line. That's very common. So I usually connect the highs of candles, the high of candle wicks. When I'm doing an ascending support line down here, I'll connect the lows of the candle wicks. Now, sometimes you'll draw it and you'll be like, yeah, that seems valid. Other times you'll draw it and be like, hmm, well, I don't know if that is valid. That doesn't seem like too many people really cared about that level. And you realize, okay, you know, maybe I'm not, maybe I'm the only one that drew the trend line in that area. And that's why the ascending and descending lines are a little bit trickier, because another trader that drew it just slightly differently, see how dramatically it could change the line. So I try to always connect the highs of candles, but also just ask myself, does this feel valid? Trend lines that have been tested multiple times are going to gain validity just by the fact that they've been tested. And now it's given other traders the opportunity to draw what is now probably a similar trend line. Number seven, daily charts versus intraday charts. So part of my process of due diligence each day is about, is an evaluation of both daily and intraday charts for a stock. So yes, I'm a day trader. So I'm focusing primarily on intraday timeframes, but I don't want to completely disregard daily levels. So daily resistance areas. What's a good daily chart look like? The 200 EMA is such a significant area of support and resistance on daily chart. I want to see that the stock has a lot of room to squeeze up to the 200 if it's below it, or if it's above it, then that's fine. But if it's below it, it needs a lot of room to get up to it before it hits that resistance level. I also look at gaps and windows on daily charts to create areas of support and resistance, which I'll show you in a second. And I draw ascending and descending trend lines that can also create support and resistance. So this is an example of a gap on a chart. You see how the stock, all of a sudden, this day is way up here. The previous day was down here. So overnight, it jumps up like 200% or not quite that much, but nonetheless, it has this big gap. This is the result of the company putting out breaking news overnight. And by the next morning, people are already bidding the stock higher, and then it opens higher, and it continues. So this is a gap on the chart. When you have this big gap on the chart, what can happen is as the stock starts to dip back down, if it gets into this gap, where do you find support? There's kind of no support. So you can run into a little bit of a free fall coming back down, and that can create what's called gap fill, where the gap gets filled by the price action selling off. This is an example of a gap down. So this stock, you know, doing fine. The next day, it's at a dollar a share. So bad news comes out. And now in the future, as it starts to come back up, you can get gap fill going back up because there's really no resistance in this huge area. So you've got this big gap on the chart where if the price starts to come back up, you're not going to run into resistance until way back up here. Now, could you look to the left and over right here? You could, but most people are going to look at the bottom of this gap right here. Most people are going to look at that area there. Now, windows are a little bit different. A window is not created by a gap, but it's created by a large candlestick. So this large red candlestick here creates this window where now is the stock is coming back up. If we break over the high of this level here, we look to the left and we look up. And the next resistance is at 1950. So we have room from 877 all the way to 1950 with no resistance because that candle kind of sweeped down, broke it all down. And now as it comes back up, we've got a clean shot coming back up. So that is a window on the chart. And anything that happened prior to that window is negated because this broke through all of those levels. So they've already been broken. So now this is a chart where we've got a big window. And I would say there's a trigger at $8.77. If we can break that price, we've got a clear shot up to 1950. Now, in order for us to go from 877 all the way to 1950, we would need some pretty serious volume and a pretty strong catalyst. So it might not happen, but it's always better to have a chart that has no resistance than to have one that has a lot of resistance. Now, let's look at another example. Here we have a stock that had a gap. So it closed here and it opened way lower. But on this right here, it opened here and then it sold off even more. So it actually created a window. Now, it sold off more and then suddenly has good news. It opens right here at about $249 on this day with high volume. And it squeezes up first to the top of the window, which was $381. And then that began the beginning of a gap that led us up to $6.55. And this filled the gap. It broke the window and filled the gap. That is picture perfect. That's what you like to see. So on a nice daily chart, we're going to have a lot of room up to the 200 moving average, which is that magenta line. So this is fine. This is at $241. Has room to $750. No problem. If this goes to $750, we'll be thrilled. So that's no problem. But if the 200 moving average was at $3, that would be too close. $0.50 away, 10% away, 20% away, that's too close. That's not going to work. So we need that the stock can make a big move. Now, if there was ever a time the stock could break the $200, it would be on a day that it has news, that something exciting is happening. So it's not impossible that you could break the 200. And if you can break it and hold above it, then that's game time for the next leg up. And so that is something that we definitely will pay attention to. Here's another strong daily chart. In this case, we're above the 200. So we're above that level. So we're all good. It's not an issue. We're above the 200. It's all set. Now, number eight, finding strong stocks to trade. So everything we've gone over so far is about technical analysis, understanding the language of the financial markets. But in order to have technical analysis work for you, you've got to make sure you're focusing on the right stocks to trade. So as I already mentioned, in the PDF resources, you can download my five criteria for stock selection. And I'm going to break down these in summary for you here today. You should download the PDF. That way you can have it as a resource, and it also expands upon these criteria. In short, right now in this market, we need to have an imbalance between supply and demand. The imbalance between supply and demand is what allows a stock to make a big move. So every stock has a fixed level of supply. That supply is known as the float. It's the number of shares available to trade. And a float was created when the company did its initial public offering. So if we jump onto the whiteboard here, let's do a little scenario. So a company decides to do an IPO, and they decide to sell, let's just say, 10 million shares. And they price the IPO at $7 a share. So that means they raise, 7 times 10, $70 million. Now, don't forget, they're going to have to pay the underwriter, which is the bank. It could be Goldman Sachs, one of these big banks. They're going to have to pay that bank the fee for bringing their stock to the public markets. So they pay a fee. But the company gets to keep the rest of that money. That money goes onto the balance sheet of the company. And the company now takes that money and typically invests in growing the company. So something like McDonald's doing an IPO, they take that money and they go buy more land so they can build more McDonald's, expand the company. Then the company makes more money because they've got more, you know, more restaurants, right? So that's the idea. And all of the investors that bought into the company get to share in the profit. So from this point forward, there are 10 million shares available to trade. Now, let's just say, for the sake of argument, that this is a stock that IPO'd at $7 a share. And as soon as it IPO'd, it kind of went sideways for about 90 days and then starts to sell off quickly. Why would that happen? Insiders usually have a 90-day lockout period where they cannot sell shares. So after the lockout period has ended, these people sell. And when you think about people, early investors in Twitter or Facebook, they are just, at a certain point, happy to get out. They're in at such a great price. They just sell. They just get out. So you have this period of selling off. And this is true with a lot of IPOs. So it sells off. Let's say it goes down to $3.50 a share. So now a couple of things could happen here. If the company is not doing very well, they may say, you know, this is not good. Investors are not happy with our price. And because we're not performing well, we're in a position where we need to raise more money. So what will happen is the company will sell more shares. Now, they don't want to sell more shares at a lower price, but they have no choice. So they sell another 5 million shares. And they sell them at $3 a share. So now they raise 15 million. So they'd already raised 70 million on the 10 million shares. They sold another, what was it, 5 million we did? They sold another 5 million at 3 million or $3. So they raised another 15 million. So now they're at $85 million total raised. And they've sold 15 million shares on the open market. Now, people here, they're selling more shares. And they're like, well, this isn't good. Because imagine if you bought all 10 million shares, and then you find out that the company has just sold another 5 million shares. They've now diluted your ownership. You owned the whole pie. Now you own only two-thirds of the pie. Diluting the value of a company is not good. It's going to decrease the price. Now the price goes down, let's say, all the way to 50 cents a share. This is catastrophic. This is not good at all. Now, in fact, the company gets a letter from NASDAQ. And NASDAQ says, hey, we're not a penny stock exchange. You've got to get your stock price above a dollar. And you've got 90 days to do it. Or we're going to delist you and move you to the OTC market with all the other penny stocks. Now, the company files an appeal. They get an extra 90 days. And so over the period of several months, the company realizes, shoot, we're in a real situation here. Our stock is below 50 cents a share or below a dollar a share. And we need to turn things around. But we're doing everything we can, and we're not making more money. What do we do? So there's a mechanism called a stock split. Now, you may have heard of this before. Apple has historically done stock splits. So as the price has gone up, it got too expensive. At one point, it was $700 a share. So then Apple did a seven to one stock split. The next day, the stock price opened at $100 a share. And if you owned 1,000 shares here at 700, the next day, you logged in and you owned 7,000 shares at 100. So the market cap doesn't change, but the price does and the float does. So what's very common is right now, we've got a 15 million share float stock. It's at 50 cents a share. They do a 10 to one reverse split. The next day, the stock is at $5 a share. So now, all of a sudden, it's at $5 a share. Now, the chart still looks the same, but it now looks like it IPO'd at 70. So all of a sudden, everything kind of backs up. And the float went down by the ratio of the split. So if you were holding 1,000 shares of this, or sorry, if you were holding 10,000 shares of this at 50 cents, the next day you log in, it's at $5 a share. You're like, oh my gosh, I'm up, you know, a ton. But now you realize you're only holding 1,000 shares. So the float has just gone from 15 million shares divided by 10, 1.5 million shares. And then the stock is at $5. Now, what often happens is the stock will be at $5 for a period of time. And the company will put out some good news. So it goes from $5 here, and it actually spikes up maybe to 7 or 8 or 9. Gives maybe even to 10. It gives you a nice squeeze. But then eventually, it kind of comes back down, makes its way back down to 50 cents. And they have to do another reverse split. So now they do another 10 to 1 reverse split. And boom, the stock is back to a $5 stock. So it's back to $5. And the float has now gone from 1.5 million down to like 150,000 shares, just for example. And then they do another offering, and they sell more shares. So this is the cycle that we see a lot of companies go through. It sounds kind of depressing, because essentially, they make it so the stock can never reach zero. It just keeps going lower. But what is important here is that these stocks can become a target for short sellers, as GameStop did. And when short sellers get heavy, short, these types of stocks, and all of a sudden, the company does put out good news. These stocks can squeeze up 100%, 200%, 300% or more in a matter of hours, as short sellers are forced to cover. In the case of GameStop, that resulted in some short sellers losing billions of dollars. And every single day, I'm trading small cap stocks. They're squeezing up on breaking news. And they're typically stocks that have been beaten up for a long time. And so what's great about these stocks is that it's kind of like buying something off the low. I mean, they're so low that I'm buying off these lows, and then we catch this nice squeeze back up. So a critical component to these five criteria is that the level of supply is generally less than 10 million shares. Lower is better. So that's the float. That's the supply. We need that part of the equation for an imbalance between supply and demand. But where's the demand coming? The demand is that the stock is already up 30% on the day at least. Why is it up 30% on the day? It's because there's news. Breaking news. Now, if there was news, but the stock wasn't moving, it wouldn't be worth trading. The stock has to be up. If there was news and the stock is down, it's not worth trading either. So first, the stock has to be up 30%. But what happens if we're thinking about the chicken or the egg? It doesn't go up 30% and then news comes out. The first thing that happens is there's a news event. So if we actually want to really get serious about this, let's back this up for a second. So let's just put this in order. So the first thing that happens is we get the breaking news event. And if the price is between $3 and $20, then what's most likely to happen is traders like the news and all of a sudden the price starts to squeeze up. As the price squeezes up 20%, 30%, it experiences five times relative volume, which is much higher volume than is average for that stock. On high relative volume, that essentially attracts even more traders. And this is where you get these really epic moves. So if you look at CURR today, the stock that they made the most on, this had a float of 4.8 million shares. The relative volume was 157 times higher than normal. Relative volume is a measurement of the volume today relative to what's normal or average for that stock. So when a stock trades on five times higher volume, why would a stock trade on five times higher volume? It's because there's breaking news. There's a catalyst. There's something happening. So that's critical. And in fact, this traded nearly 300 million shares of volume. That's insane. It gapped up 94%. So that was the gap from the previous day's close. And it peaked at, gosh, it must have been 350% or something like that. It closed right now at 144%. And it had breaking news that was driving this move. If it weren't for the breaking news, we wouldn't have had this squeeze. So now your job is to find stocks that meet these five criteria in real time. It's not enough to see it after the fact. You've got to find it in real time. And that's where scanners come into play. So I have a development team that I hired in 2017 to build out these scanners that I still use every single day. We've been building them out and continue to expand them and they get better and better. So these scanners are actually searching the market in real time for stocks that meet my criteria for stock selection. It filters it. And in this scan, we're just looking at the top leading percentage gainers in the market. This is sort of the first filter where we just look big picture. What is moving in the market today? Generally, I like to be trading the stock that is the number one leading gainer in the entire market because that's the stock that's the most obvious. So that's what I'm always paying close attention to. So these are the scanners that you see in the background right here. And these these scanners, by the way, I used all of my his my own personal historical trading data to give me the insight about the type of stocks that I should be looking for. So if I pull up my data right here, when we talk about the five criteria, we talk about price and we'll just search for a larger set of data. So this is twelve point eight million dollars of profit right here that we're looking at. And this is my performance by price. So I know that I do the best on stocks between two and 20. I just know that. Now, generally, five and 10 is the place I make the most. But this is sort of my sweet spot. Right. So now I know that. Now, what else? What else can I learn? If I look at the volume of the stocks I trade, I could scroll down on this tab and then I can sort by how much relative volume these stocks have. So I do better on stocks with high volume. I do better on stocks that have 500 times relative volume, which is five times higher than average. So it's not just opinion that created these five criteria. It's actually derived from my historical trading data. So I think if that's important, understand, because to me, at least to me, it adds a lot of validity to what these scanners are looking for. All right. So now so your job each day is to find these types of stocks in real time. And then, of course, you've got to execute on your trading plan. So here's what I'm going to do. I'm going to give you as part of the links in the resources, a link to download a simple trading plan. This trading plan and my small account worksheet is going to walk you through not only the type of stocks I like to trade, but the strategy that I use of where to buy, where to sell. And it's also going to dictate the time of day, the share size and the strategy of how to scale in and how to start trading. My goal for you is that you're able to start practicing, following this trading plan in a safe, simulated environment. So I'm going to give you the rules. All you have to do is follow the rules. But I'm going to tell you, it takes time to build educated intuition. That's what requires you to come to the table and spend the time gaining that experience. So you could do that in a simulated environment. You could do a trading real money with one share if you're with a commission-free broker like Thinkorswim or Webull. If you're a member at Warrior Trading, of course, you can use our simulator that we make available for Warrior Pro members. But however you want to do it, I want you to practice following this plan in a safe environment. The goal is that during phase one of following this plan that you're going to download, phase one looks like this. So phase one is about gaining a lot of experience. So when you're gaining a lot of experience, you will lose money. And that is totally okay because this is just about trading as much as possible. All of the stocks are on the top 10 list of the biggest gainers. You want to pull up the level two. You want to be actively trading them. You just want to get a feel for how these stocks are moving. And then what you're going to notice is through this phase, you're going to realize, oh, now I'm starting to get the hang of like, this is how I make money. So you're going to start catching a couple of winners. Phase two is when you implement the rules of the trading plan and actually make a concerted effort to try to make money on every single trade you take. Now, I just did an interview. It was actually earlier today with a student at Warrior Trading. His name is Justin. He's our veteran penny stock trader in the community. Many of you guys know him as J-Core. So Justin, he's a trader from Minnesota, and his focus is trading penny stocks. He started with a daily goal of $5 a day back in 2022. This last year, he had his best year he's ever had, over $200,000 in trading profits. He scaled his way up. So he started with this simple goal of following the plan, $5 per day. So he was consistently making money, slow and steady. And then what did he do? So this is all SIM, and this is SIM. Until you've proven you can have 10 days where you're maintaining the metrics that I'll lay out for you that verify that you're ready to go live. So then phase three is continuing with real money with this $5 daily goal, really small size. Phase four is now scaling up your share size. So going from $5 a day daily goal to $10, to $20, to $40, to $80, to $160. Next thing you know, you've got $300, $400 daily goal. You've got $1,000 daily goal. $1,000 a day. That's $250,000 a year. Quarter million dollars. So Justin just earned his $250,000 badge, and he did it as a Warrior Pro member following this trading plan. Now, I'll tell you. I'm going to put it on the table. I'm going to give you the strategy. I'm going to give you the set of rules. But it is on you to have the discipline to follow the rules because here are the two leading causes of failure. And it's why I'm always going to tell you that trading is risky, my results aren't typical, and there's no guarantee you'll find success. The number one leading cause of failure is traders that come in and don't even have a strategy. They're shooting from the hip. They're doing a little of this, a little of that, and they lose money. That was me when I was getting started. It may be you as well. So I understand that. That's not going to be you after today's episode because now you've learned at least the outline of technical analysis, and you have the resources available to learn the outline of a strategy that I'm trading with real money every single day. Now, the second group of traders who fail, they've got the strategy, but they still fail. So why is this? And this is because they lack the discipline to follow the rules of the strategy. This one's on you. All right. So we're going to get in real tight. I'm going to give you the rules, but you have to follow them. That's it. It's as simple as that. So can you commit to me that you will be disciplined in following these rules? Now, maybe you're going to say yes, but what I'm going to do is I'm going to hold you to it. And I'm going to tell you that every single day when you're trading, I want you to look at the rules that I've laid out. These are your guardrails. Now, listen, you're not going to win the Tour de France with guardrails, with training wheels, but you need them as you're getting started so you can prevent having a big blow up mistake that ends your career. Because you know what happens to most beginner traders? I'm going to be real with you. I'm going to break it down right now. This is what happens to most beginner traders when they're getting started. They fund their account, real money. I need a new pen. They fund their account with real money, and they take a loss. They lose money. It doesn't matter if it's $10,000, if it's $50,000, $1,000. They take a loss. And what does that trigger? Immediately, it triggers emotion. Sad face, the tears are streaming down. I'm not too much of a man, despite my obvious physical advantages and physique, to admit that trading has led me to shed a couple of tears from my eye, from this area right here, that area. And it wasn't just dust. It can be very frustrating. You take a big loss, and it can be disheartening. And that feeling is so bad that it'll lead you to do anything to feel better. So if you're down $10,000, what's the best way to feel better? It's to make $10,000 right now. Make that loss go away. That's a problem, because that's going to result in emotion-seeking behavior. So now you're emotion-seeking. You're seeking to feel better. And the action you take is reckless trading. So now you're trading. Basically, we're going to draw a little football. You're doing a Hail Mary pass. So you're swinging for the fences with poor accuracy, emotionally fueled. And what's that going to do? Let's be real. It's going to result in more losses, which makes you more emotionally impulsive, which leads to more trading. And uh-oh, you see where we're going with this. This is a downward spiral. This is a fate that many traders before you have experienced. I want you to learn from those mistakes. Now, the failure here is that a lot of traders are uneducated. They come into the market with real money. They lose money. They got emotionally fueled. They don't even realize how emotional trading can be. And then they're gone before they hardly even got started. In fact, they might have actually had the chance to become successful traders had they slowed down and laid a solid foundation first. So this is how we lay a solid foundation. Even if this has already happened to you, we can break this cycle right here. And I'm going to show you how. So whether this has happened to you or not, this is how we start a positive feedback loop. We start by focusing on A plus quality stocks. These are stocks that meet all five criteria. One, two, three, four, five of stock selection. We only trade those stocks. By only trading those stocks and only doing it in a simulator. If on your first trades, you lose money. Sadness, minimal, tears, not there. Because you didn't lose real money. So you might feel a little like, man, this is a little harder than I thought. But it's not a big emotional experience. That's important. Because now you can continue to focus on trading A, quality setups. You continue to gain experience. And then you realize, oh, actually, I can have some winners. I just have to figure out a little bit better how to, you know, get in and get out. So now you start building some track record. And this is where you're now building, in the simulator, a track record of consistency. So now you're like, okay, I'm starting to build some momentum. When you build momentum, this increases your self-confidence. So now you're feeling better about yourself. And you feel confident trading more. And now you have this track record. You're like, okay, I'm ready to fund my account with real money. So now you fund the account with real money. You continue doing exactly what you're doing. You have, even if it's not a great start, you have a decent start. Because what you know is that you've got this track record of consistency. You've already proven that you know what you're doing. So even if you have a little setback, you go back to this is your source of truth. I know what I'm doing. And I can rally back up. So this is how we create a positive feedback loop. The positive feedback loop begins by focusing on high quality setups right there. I don't want to see you on this negative feedback loop that results in blowups. I want to see you on the positive feedback loop. That means you understand how to manage your risk, how to never take trades where you don't have the potential to double whatever you're risking. You risk $1,000 to make $2,000. You risk $10 to make $20. The ratio is the same. It's always two to one. Because here's the deal. If you can trade with a two to one profit to loss ratio, if you're one to one right here, your winners and losers are equal, 50% is your breakeven. If you're two to one, your breakeven is only 33%. 33% right there. If you're one to two, where your losers are twice the size of your winners, you need to be right 66% of the time in order just to breakeven. And that's not sustainable for a beginner trader. So you can set the bar lower and make it easier for you to be successful by focusing on the strongest stocks and only trading when you have the potential to double whatever you're risking. That's how you create the positive feedback loop in your trading. The three core components of profitability are accuracy, your profit to loss ratio, which your average winners compared to your average losers, and then your consistency. So the first element in risk management is trading A, quality setups, and that's how you create a positive feedback loop. Now I'll tell you guys, there is a lot to learn when it comes to trading. You have now learned and gone through the ultimate guide to technical analysis, but now you got to learn how to read level two data and how to execute your trades. So if you want to continue learning, I'm going to put some links in the description. You do two week trial over at warrior trading, watch over my shoulder for two weeks. You can use our software, our scanners, our charts, our newsfeed, the chat room, and you begin to go through some of the more advanced classes that are part of my warrior pro curriculum. So if you're ready to take the leap, we'd love to have you guys join. And hey, if you want to keep learning here on YouTube, please check out more episodes. I'll put some links to some right here that I think you'll enjoy. And I look forward to seeing you for the next one real soon. If you've enjoyed this deep dive into the world of technical analysis, please hit that thumbs up. And I hope you subscribe to the channel for more episodes about trading strategy just like this. Thank you guys as always for tuning in and reminder, trading is risky. My results aren't typical. So please manage your risk, take it slow, and I'll see you guys back here for the next upload real soon.