US Tech Stocks Trading Today - Elliott Wave Strategies Looking at Long Trade Set-ups?

[Music] welcome to trading lounge and the daily us stocks for wednesday february the 2nd and starting with amazon here so with amazon we've been looking at wave 3 here with an a b and c wave here for wave four we're looking for b to c with five waves of one two three four and five now if the major trading level three here becomes the re-tested resist uh re-tested support rather then we're going to be looking to go along at that point so if we see a pattern that is nice and neat like this here if that's the 3000 then we'll be looking to go for an entry above here if we can get a better entry will be here this way we're not going to miss anything because some of the markets are looking bearish and some of them are looking bullish so such as apple is looking bullish so we've got a bit of a mixed bunch um this major trading level three here may play out a little bit uh differently in that it uh drops below the level here that's more uh common so this is the most common pattern so if this was the 3000 here then we have the arrival the reaction the first high above the level then the abc correction and then we get back up here this little pattern here is a fractal of this bigger pattern here and we can refine that entry so basically we need to you know change our hat from being an analyst to a trader in the in that regard so let's go in and have a look at this in terms of um you know how we can be long in this in this and how we can look to be short in this as well now i also want to point out that as i mentioned some stocks are bullish and some are bearish and it's kind of like you know are we you know are we are we bullish are we bearish what's going on with all of this i think that for the weaker stocks that we can stay on the bearish side and on the bullish stocks we'll just go with the bullish count because as i mentioned apple has moved quite high google's moved quite high too alphabet because it's moved up with its wave four but it's also overlapped wave one here as well so that sort of destroys its account so with apple and google we could also look to be on the long side of the market we could also be on the long side of the market with these stocks here that are uh that are looking weaker and that haven't traveled very high but if they do you know follow the other leaders to the upside well then we needed a very nice you know strong trade setup on on this 3000 we need to use the closest largest number [Music] as the trade setup because that's where all the orders start to gather around you know and if it is support well then you can just put your stops under that support you know and that's that's a sensible practical way forward so let's go in and have a look at this on the 100 tick chart so you know i can look at this as a bullish count i can count it as bullish i could look at this as wave one here with an abc for wave two and then wave one and wave two and then wave three and four and five and so on keep building to the upside and we will be looking at stocks today like that um this kind of reminds me of uh of meta platforms uh um um patton as well uh it's the same so um yeah so with the classic trading levels pattern so we've just arrived here and the arrival can be a little bit um you know sometimes the market just comes comes to here and then and then drops and when they drop they'll drop in three waves and you know then they push up through here in five waves up here and the idea is not to chase that up there unless you're scalping you know because then it will just run out of steam and it'll fold back and it'll bounce off that level um because there'll be orders there and then that will run out of steam and then it'll move down again but if it doesn't run out of steam as it moves up here that reference point high here that's critical to to go long on at this point now sometimes when the market comes up to here it doesn't have a clean cut it can sort of do all sorts of things and and it'll look like it's a high here but then i'll have its correction here and then i'll have another high up here so it's like this here i just config i just i don't um i don't make any decisions quickly or lightly i allow things to play out and roll out and then when they sort of mature then we get to recognize them you know when we're um you know we're basically going to be sheep uh as we trade here you don't want to be a black sheep in this case it's all right to be a black sheep in life it's a bit of fun but um when it comes to the markets you really want to join the herd and and mosey along so to speak so it can be a little bit tricky with the trading level pattern here but what we're going to do over the over the course here we can see that here we've got wave one and two in here right and then we can see this nice strong third wave here and there'll be sort of wave one and two in here and three in here and and little four and five going up here for just this one so i think that this one and two here we haven't seen wave three here yet in this case and then we'll have wave four here and then we'll have wave five up here for this so that would make the a wave the abc for the b wave then one two three four five here once we got those five waves then we can say to ourself well look really anything above that top there now we can go long on that but we can get a better position than that so we can bring it down to this one here and then if it comes back up on the level just in here and we see another little classic trading levels pattern in here which will be a fractal of this bigger one here where we have the arrival the reaction the first high above the level abc correction and then and then building up at that point so then we could build into there so i'm just putting it in the middle here sometimes you can't see the b wave here it's a little bit sort of tricky to get so that means we have to revert back to this one over here for that and the other idea with this too is that if we get a nice tested support on here then we can start looking to the upside so basically it's like going from one bus stop to the next you're really going from one number of the same degree to the next number of the same degree so in this case it's like three thousand to four thousand and along the way we've got the fibonacci sequence of numbers one two three five and eight so we know that the the fibonacci tool in terms of uh extensions and um retracements that frost introduced to to elliott and he started to put that together so we're just really using that as the price ratio here and it works quite well but it also is a little bit more than that as well because you know when we're working with double zeros single zeros whole numbers and even numbers and odd numbers they've all got their sort of ranking so i put way i put number one as the strongest number then five and then eight and then three so orders tend to gather around large numbers so the idea really if we were trading from three thousand to 4000 we want to basically build in at the beginning of the trend unfortunately in this case here if this turns you know sometimes we can get a nice abc pattern down to the down to the low here and have you know have wave four here and and then we can trade long at that point but the trouble with wave fours is that you know there's 11 or 12 different corrections and you know sometimes we can just end up with a you know uh you know something a bit more complicated that we know we can take on board as a as a wave y here so we have an a b c down here rather than the wave c rather than a wave three three at this point and that makes the wave four so then we you know we've got to kind of work through this so we don't get sort of trapped now we have been trading long in some of the stocks and tesla and a few others and you know we've maybe even some are still in some of them and we get basically getting out at the tops here with them and then we'll find our way back in um so sometimes you know we get the wave four here and we can build in from the low and and everything's you know fine but sometimes it's not fine and sometimes you know the market uh you know that gives us a uh you know uh something a little bit different and then we've got to solve that problem and this is the only way i know i can solve it so yes we have missed out on some of these moves here but you know we got some of them so we got to took a balanced view on it because that's all we need to do at the end of the day but anyway coming back to this here if we're going from 3 000 to 4 000 the idea is to build in the beginning of the trend so one two and three that even on the 3000 and then on the one two and three here this is where we build in our trades the beginning of the trend if we get support on number three here the top of of uh minor group one at this stage wherever you see a number three it will be minor group one it will be um subgroup one or micro group one just depending on you know what what level what degree of structure that you're working on but if we get support on number three here then we're going to be leaving the closest largest number at this point you know and this is the other thing too just while we're here is that when we're talking about 3000 we've got group 1 above that's its swing range for above and this is group two below here is its swing range from here so from 2000 down here wherever it is we've got one two and three and five and eight here so the the low of wave 80 you can see group two here supporting this market and that's exactly what it does it's you know it holds the market back to the closest largest number so when you realize that one two and three when a market is going up here is going to be you know resistances and try to pull it back to this number and this will be the support here then you'll just generally make your decisions you know above this level and below this level i mean we could put this in smaller contexts as well this is the little three here so we could look at group two here between 200 and 300 we can go 10 20 30 50 80 and we'll talk about 80 we talk about group 2 so 72 and 65 in there and above 300 we'll be looking at 10 20 and 30 there again so that would be the swing range for that particular number and when 330 here becomes the support tested support then we know the market's leaving this number and going up being pulled up to number five the 50 at that point so you know it's gone at that point so what we can do we can build trends we can build positions into this into this trend here into this move here but if this doesn't become if we don't get a classic trading levels pattern on on the 300 here and then the number two becomes the re-tested resistance well then we've got to pull our trades out at that point but if it becomes the support tested support then we could build in on that one and then trade up to number five now when you get to five you can either take money off the table or you can do nothing there will be another because it's the second strongest number there will be another pattern there as well unless it's in the third of the third of the third parabolic sort of move well then it basically won't do something there but besides that it will do something so you've got some you've got choices you know before you get there you could take money some money off the table you could buy back in uh you could just wait for the classic trading levels pattern and add more and when you come up to these levels here this is basically where you start to scale out and you take money off the table so the number eight i always call a profit taking number because when you're approaching a large number people think of eight more so than nine or eleven so i always use the example 10 so that means that you know if somebody's trading up to 10 which is a whole number because that's where the fibonacci numbers go they go 1 2 3 5 8 and then it goes back to 10 again so the power of 10 so we go 1 10 100 1000 and so on so it's just that one two three five and eight and then the cycle repeats on the power of ten so at ten people don't think of nine and eleven they think of well we're going to get out early i'll get out of eight you know so that's why eight becomes a profit-taking number and when you watch the market depth enough you can see all of that okay i've rambled on enough but um so that's that let's have a look at um alphabet now i left this here so we could just talk about it a little bit so first of all we don't need these trades here we've been stopped out on those and currently if we took some money off the table at a large number down the medium level we should have done now the thing here is that this wave four that i was looking for has overlapped wave one so we can't call this down for one and back for two and then down for three and back for four because overlapping so we could call it down for one back for two down for one and back for two at this stage so it could be another two we could be in a big bear market i mean we need to look at everything don't we so it's above the sixty one point eight percent but the sixty one point eight is not you know it's not the b end and end all the end of the world or anything so you know it could build up a bit higher here and and still come down so we need to be mindful of that of one and two and one and two uh in here but it's more likely to be an a wave a b wave and a c wave here for y of wave 4 as we looked at before and then looking for wave 1 up here so that's basically what we'll need to do at this point so i'm just going to move these out of the way for the time being and yeah we need to start looking at well we need to start looking at this uh in a bullish count now in its own little way because that's the only logical thing to do at this point so that means like well you know have we missed anything what are we going to do now and yada yada so but we don't really need to do much of anything at this point we just go well okay well that didn't work that way for so um you know have i don't feel like we've missed anything here because when we look at wave 3 and wave 4 here that means that if this is correct we'll be taking out that top so that means we'll end up probably you know way up here somewhere with this so if we look at this as as one two three four five here then we'll be looking at well wave one here somewhere and we'll look at that there's plenty of resistance around here it'll pull back in some way or another and this is where we'll get in you know and wave three is going to be longer than wave 1 and then we'll see wave 4 here and wave 5 here something like this and then we're going to see it's not going to let go of this number very easy and once again when we talk about the levels up here we've got group 1 up here so with group one here then we've got group two below so when we're at the 3000 here that's the swing range for this particular correction and when you when you think about it this is the arrival at the level this is the reaction and this is the first high above the level so then we'll get another abc correction here and then we'll be going up further at that point so we can put this wave 5 over here and then look at this as wave 1 here and wave two now i know that bob pressure says that this is this wave five is going to be the end of the world and yada yada but um and he looks i mean he's got to get it right at some point doesn't he you know so um we'll be you know we'll be mindful of that so you know i love bob's work and he's you know carried the flag he's done such a fantastic job and and i'm very grateful um but he doesn't always get it right um so um yeah anyway there we go so let's just go into the 100 ticks here and just check on that a bit so that little move that i said from the low here on this 100 ticks we need to look at this as one and two here and three and four and five so there's not a lot to do here in the market it's not going to go very far and and you know if i'm wrong and we hit the 50 60 retracement level you know we end up with three waves up there and we start to come down much deeper and we say well that's not a wave four is it we're we've come too low we've overlapped wave one and yada yada so then we you know then we'll have to turn bearish again at this point but i think that um taking a practical approach and an approach that we don't have to rush into the market because we've got bigger fish to fry you know i'm a vegan but uh i should should use something else but um anything with a face on um so yeah so anyway there we go so that's that and um now apple you can see that apple's moved up really high here so we'd always we'd been talking about this yesterday and so on about um well you know because our target to the downside was actually 160 we come low into the 61.8 percent mark and you could probably count all of this different but you know my original abc correction here is it's played out right it's okay you know we you know we may have to label all this the a wave and a b wave up here because we've still got three waves up here but i'm thinking that we'll get five and if we do get five then we need to wait for that pullback and this is where we get in because if we can note five waves here that means after correction we're going to have another five waves up so when you think about it here we're in group two here and we'll be heading up to 200 and beyond in you know one two three four and five the first high above the level so the arrival the reaction the first high above the level the abc so um yeah so let's just go in and have a look at this so yeah the abc i think we talked about that yesterday but um i've just filled in the dots here a bit more today so wave one and two here one and two one two three four five the third way fourth wave fifth wave fourth wave fifth wave and back again so i think there is at some point we may be able to i mean i know with microsoft the wave two's never come back that far so we may be able to get into a better position uh here and i'll give that some thought and we'll we'll check on that tomorrow and it would be nice to do a trade from 72 172 because we're in group two here and group two is really quite wide in this case 65 72 and 80. and there's lots of other numbers in here that are really important you know like well after 65 will be 60 68 and then we got 170 and 70 we can use that as a whole number and look at 71 72 and 73 then so one two one two three five and eight in here can come into play though they would be the next sub levels the next degree down so i'll give this some thought and we'll stay for another session i can see that it's looking a little bit sort of uh tired here but if you wanted to go along here then you can look to go along above here or you could probably even draw an angle down here on this sort of thing and trade up to well you know eight to profit taking numbers so 180 is going to be a profit taking number but also two the 178 is going to be a profit taking number and also use the levels here as well so from 170 you got one two and three here and then you got five so you may be able to add on five and then when you're talking about 178 here when you're talking about eight you always talk about group two so group two will have um 170 650 in it that will be part of uh it's group two there so 176.50 will be one level and then the 72 in there will be the one uh the seven seven twenty in there seven seven twenty so that will be then that will be that will be all of subgroup two within there and if you if you put the levels in then you'll see the market playing out uh with then then become useful it's very difficult to eyeball it okay meta platforms as well we can see here that wave 4 is also overlapping wave 1 here now i could probably jig this around and put wave one onto this low here and look at this as an a and a b and a c because i did have that count before as well and that would clear me from that so in this case i think we need to look at uh both counts here as well for this so i mean this is a bit more of a complicated count this one here it's been going on a bit longer and it's been a bit just a bit more complicated so you could count this in many different ways i mean i always go for the most simple count as like an a and a b and a c wave here but um you know it can it can certainly be counted differently so just because i count it one way don't think that it's the right way and i always try to keep things as simple as i can with with elliot rather than you know because when you start using you know i mean the x-wave the you know using an x-wave between two other patterns is something that proctor brought in and i sort of always see that as a a bit of a the the joker in a deck of cards you know so you can use it to you know do whatever you want with so to speak so um but anyway that's uh not good to have too many opinions about things like that um let's go to the tick chart so this is the count we had i had this as a triangle pattern yesterday so you know as an a b c d and e wave here for that and it's kind of okay but um this counts better as five waves up and this counts better as five waves up so i'm looking as an a and a b c for the b wave then one and two here and one and two here and then three four and five here four um for wave three then wave four then wave five so there's a bit to go here with this but what it does do when it gets to the top here that's going to be quite interesting isn't it because at this point up here this is where we can go long here we're in group 1 at that point so we could get a small position here and then build on 30 at that point otherwise we need to look at being on the short side for this now on the short side we definitely need to see three waves down like an a and a b and a c because it was going to be bullish it would just be an abc pattern so we can look to short under the abc pattern because because quite simply under three waves it's going to be you know something else you know it could be you know down for one back to two down for one back for two or could be one two three four five come it could be a variety of things for anything past three waves well then it's something else at that point um i think that i've got yes i've got five that the 5t there or whatever i put in small language there just means it's five ticks so this is 100 ticks so it's going to five ticks and i've got a bullish count counting all this in a bullish way so i might need a bit more here so this would be the bullish count here it looks a little bit messy because i had to i had to get it get it right in that trend we can have a look at that in a moment but in a nutshell wave one and two one and two and one and two now that kind of is suitable as well because this market has pushed quite nicely up here for this but as a third wave so to speak so we would still need it to go um one two here and then three up here and four here and five here so we've got a long way to go before we get this pull back but that doesn't mean that you know we can still build in on the on the 320 here and have a bit of a ride up here and check it out so between wave two and wave three here we're looking for five waves so we've got one and two here and then we've got the third wave here that will take us into into the 320 area and then from wave two to wave three here we're also looking at five waves as well so we'll just go in and explore those a little bit so we've got wave one here and two here that's pretty pretty clear and then we've got wave three here and four here and then we've got one two one two three four five here for the third wave fourth wave end of the session it's going to get a little bit ugly we might need to bring that over here somewhere and then wave five up here for that so that will push up into here and that will give us that top and then we still need this wave 4 to come into play some reaction there the arrival the reaction and the first high above the level which will be this wave 3 over here for that i'm sorry wave 5 and wave three at that point but if we were looking at the market in terms of the bearish count that this this move up this wave three here would be wave c of four so that top there would be the top of the corrective pattern anyway from wave two to wave three here i think that we can just have a quick look in there just in case folks of i'll just take it to that wave four there just in case folks of wanting to count this so i've counted it up as weight one and two here and well that would be one two three four five four one and two and three and four and five and then one two three four five four one and two and one and two and three and four and then one and two and three and four five the third wave doesn't look quite right but it fits there okay i guess and one and two and then yeah and all of that is the third so that's really these are the thirds of thirds in here all of these here so yeah anyway that's how i counted it and uh you can have a look and make up your own mind and um yeah anyway it's just it is what it is so look there's nothing really to do here because in a way we can see that the markets are sort of tripping over here a little bit you know let me just um this is facebook here so i need to get that into a thing here because i'm just looking at the volume on trading view because that particular i like doing the charting and the counting on the other platform but because it's a market maker i just don't trust their volumes so this is facebook on trading view here and we can see that this bar here today's trade here is on low volume so we can see you know it's trends have got a beginning a middle and an end so we're at the sort of end of it here so we'll just see how it goes so we don't know i don't know if it's going to roll over is way 4 or we're going to keep building as wave one but we're looking at both sides of the market and we're developing strategies to be able to move in and out of them you know so that's what we're doing moving on now to microsoft so microsoft is another one that is overlapping wave one now so i know that the whole move here is corrective because we've got three waves in the first leg here so we always knew that was the case and then we worked through this abc here then we had a beautiful five wave structure down here so we knew that well that could be the end of it at that point too we looked at that didn't we if you remember as an a and a b into c we knew that it was a bit low so it wasn't probably the case but you know we took that on board and we noted this move in here was corrective so we knew then that this had to be wave one and two here and then we're coming down for wave three now situation now is this wave four here is overlapping wave one and do we call it wave three or do we look at this now as a w x y here for wave four and we're finished here or could all of this be down here could all of this be down here just be a w and then we have this little x up here so w x y and still come down here you know so there's a this is the trouble with wave four there's a lot sort of going on uh the stochastics have moved up a little bit on this so we need to look at this in in different ways as well so let's just go to the 100 ticks here a bit of an overkill on the volume we can bring that down bring it down a bit further okay so we've been working uh with this low here so we need to we need to look at it it's possible to have it as a y and wave four is already complete at that point and then we could look at you know i'm looking at it as an a wave and a b wave and a c wave last time we spoke so going from wave b to wave c here we can see that we've got one and two here and three here and then this side because wave two was simple and sharp as an abc we we're getting this complicated scenario here and look at may overlap wave one again i don't know but we should really be looking for another move up here for uh for this to finish off but once it finishes off if we consider this the a the b and the c here then it can't come any further and it doesn't matter if it's at this stage it doesn't matter if it's a wave 4 or or even a wave b or the wave x that i just mentioned as well there you know it could be all of those but it in a way if we put in if we understand that being a top there once we get that push up there then when we get a pull back here we can go long above that top you know any any move above that we can go along and then we would need to look at it as maybe wave one and two here and then five waves up for wave one and back for wave two and then move up now i don't know if that's the case or we're going to fade down but we can't short this market really until we move through uh you know if that we can count that as a bullish move here well then we can't go short and we anyway we don't go short above large numbers unless we've got a really good reason to do so so we would need to look on the short side so we would be looking for a classic trading levels to the downside now that could also be nice and square here and just drop from that point so we keep an eye on that reference point low but it may come back above the level and we could use that again but in one way or another um we would need to look for we need that we want that number on our side we don't want to be against we don't want to be against the trend we don't want to be against the numbers you know so we would need you know we need something like that to pin that back to that because once we know that that's been tested as the resistance well that's where the stop goes you know it's as simple as that because you know that all you don't even need to look at the market depth because all the orders will be building up there um so for this microsoft uh this is the fed's comments of course but yeah um now the dust is settled we need to just allow this to play out there's nothing really to do here because you know you can get lucky but we don't want to be we don't want a 50 50 bet you know we want to be up at the sort of 80 90 area just you know to get to get our seven trades out of 10 right you know okay so let's move on so we just got to wait for microsoft and tesla is uh also the same as well we've got it as uh wave three up here or wave one and we can look at this as an a wave a b wave and a c wave here down down to finish off here and we've got a very clear one and two here and we've also got a clear one two three four and five here now this wave four came very close to its wave one up here as well so that's okay and this way four is coming quite close to its wave one here so that's its sort of um dna fingerprint behavior it is what it is it is who it is sort of thing you know that group of folks that trade this market um so yeah we also need to look at this as um a w x y here as well so then we need to understand this particular move here um and i've obviously got it as a wave 4 on that top there so i'll go and check that um but yeah we need to look at it now as well is that wave one to the upside and do we need to sort of work out how to get long over here for that or are we going to have you know another move down here you know or we're just going to come halfway down we're going to have some sort of little abc and then push up at that point so this is what we need to do we need to figure out um what's what here now with this we need to be prepared for both sides we need to stay we need to stay flexible we need to stay open-minded we need to stay with the facts according to us of course our accounts your accounts your trade setups so from the low here we can see that this this is an impulse wave here so look it can be wave a and wave b here and a wave c up here and that's what we're looking for you know we traded long up here which we and we took profit so we can get out of that we don't need that and um you know it makes quite a nice little a wave b wave and a c wave this nice strong one to this wave 4 here and we don't want it going any higher because then it's going to overlap that wave one that we've got over yonder over here to the left so that top there would be wave four but if we were looking at this as a bullish count then we would look that would be an a and a b and a c c here to wave four and that's it and we can count that one two three four five here so we and that's in three waves here and it hasn't taken out the top here so it could just sort of roll over and come on down at this point right but it also could be one and two and three at this stage with an a wave a b wave and a c wave here for wave four and then push up here for wave five and then we would have wave one up here and then we'd have back for wave two it won't come back below the level in this case i don't think but um i'll just put that a bit closer there's a lot of support going on here and we've got group one and all the rest of it so i think the wave two will be a bit of a shallow pullback um this one here pulled deeper here but there wasn't really much to support it in that space it's already created the the drama and the support here for this so so we could actually look to go long here we've only got really three waves up here so this would be a c wave here so we've got one two three four five here now we could i mean it still could be down for wave one and it could go back for wave two but it looks like a c wave because it it's with corrections as you may well may know it's not always the case but the market comes up the a wave is normally the sharpest and it's the sharpest because it takes out the stops you know some somebody's taken a group of people have taken profit or whatever the case may be and all the stops get triggered in the a wave and then the b wave rally comes in all the value buyers come in and think it's going to go up again because they bind the dip and then we get wave c that comes down but normally wave c if there's no other sellers in the market then it's more of an angle you know and the more angle it is to the the upside the stronger it's going to be so this angle here is like you know it's a pretty good sort of angle really i mean it's it's not down do you know what i mean it's going sideways so you can pretty much you know trade on that so what you could do here if you're looking to the upside is you could use group one so we've got 900 here which is a medium level then we've got one two and three which is group one here so we've had the arrival the reaction the first high above the level and then we're getting we're getting a c wave in this case so normally we would go long here then take the second high and then we can take this one here but you could also just practice refining what you're doing here there may be another low although it looks like it could be done and dusted here but if we get if in this move back up here you're also going to get a little classic trading levels pattern in here so if you wanted to watch that just for the experience and then that will just push up straight up to five at that point so you might want to do a short term trade up here or you might want to build in for a long term trade you know you might want to trade up here and take some of the money off the table and then try to get back in over here and i'll try to do that you know so because traders are doing different things aren't they i mean some are going in for the trends some are scalpers some are you know also some are just trading for the day or a couple of days everybody's doing different things and everybody's using different amounts of money and all those sorts of things and if you gave everybody the same trades they would all come out with different results because they would put different um different bets on bet sizes you know their money management everybody will be different but when you take a trade like this then you just go to the last low and you look put stop at the last low so if i took this trade here then all i need to do is just copy that and then that last low wherever it is here then i put the stop there i can get quite close to it but also with the stops as well any long stops need to end in a number 2 or so 992 or six so nine nine two six because when you're thinking about um when you're thinking about one to ten so if we look at we just look at this for a moment i might be able to do this here just put this on i'll just explain it's the video it's going to make the video longer but who cares so this is that's 10. so we've got one two three five well one two three four five six seven eight nine ten so the thing is is that we know one is the strongest number so if we're starting from zero here we can call that one and we can also call the top here one as well because we would be just using the power of ten but between the two ones the next strongest number is five so when you think about it if you're putting a stop in the market i always go for should i put it above five or below five that's always my first decision right so if we're going to go above five well then we think to ourselves well what's between ten and five here so we know that eight is the next strongest number in all of that so we're thinking well okay if we're going to go above the five i know that 10 1 is the strongest number i won't put a stop at one i won't put stops on on on whole numbers or so then i go to 8. so well

i don't want to put it at 10 because that's strongest number so i don't want to put it at 9 because i'll get stopped out likely so then all the orders are going to build up at number 8 aren't they so that means that i i'll put it above five but below eight i won't put it on eight i'm gonna have to go below so i can put it at seven and i can tell you you'll get pretty good results at seven but i can also tell you you're gonna get much better results if you go to six and then when you go to six if you think about it from nine to six then you can also look at ten points within here and do the same thing again at that point so if i'm going long i will look will i be above five or below five so if i go above five i'll be at six and and they'll be below six a lot of the times i do go at seven depending on where the stock is trading at such you know if it's a stock that's you know 25 uh and some cents then it doesn't matter then i'll go for the six but you know if it's uh if it's a sort of a penny stock uh then i'll go for the six kind of thing you know so then i'll go under five and i won't put it at four because it's too close to five and i know that three here after number eight three is the next strongest number so then i've got to go to two so most of my stops on the long side will be at six or two so you'll get better results at that okay and on the short side i won't go into that now but it'll be four and seven okay so let's cruise along here for this so this is square so we counted down here and i felt that this was the low down here but at the same time i thought well g p the other markets are doing a wave 4 rally maybe we're in the wave 4 rally and and i've got this wrong here it's not like we had a really strong you know significant low below here on this one here maybe this is an a wave and a b wave and then the c wave up here for this so any move above this little move here because i can count this really as one and two here and probably one two three in here and four here i've probably even used this as a top then we've got that spike so i don't like spike so anyway we're coming into group one here so what i'm thinking is that if we get a support if we get a set up on 130 then we're going to be going long from that point then we'll build long so if it doesn't fail at that point then this is where we'll start to build in again on this you may be long already and that's fine um so we can stay long if the number two here becomes in group one becomes the retested resistance like with the classic trading levels pattern at 120 then you need to get out at that point so this to the stop shouldn't just be at a at a price point it also really needs when you get close to it you need to you know if i was going to get out i wouldn't just get out because i hit 120 or went below 120 i would need the first low below the level to get out and then um you know then then uh get out from under that under that point or go short at that point you know it doesn't matter if you're not long your mouth will be short most of the time but yeah so i wait for the setup to get to get out of my position as well because it could just dip down here and then go off again you know so that number two i know that if that becomes the re-tested resistance then it's going to be pulled down to the closest largest number at that point so yeah anyway that's helpful okay we just want to have a quick look at the banks uh not spending too much time on those uh so we look at morgan's so with morgan's here uh just get in here let's just get i don't have the price there sorry about that and i don't have the date so i'm going to put the date up there so we were looking for morgan's being wave one here with an abc for wave two here and having a low in place and the stochastics are also suggesting the same thing as well we've got the move up through here it's sort of edging up on lower volume but what we need here as i mentioned before we want a classic trading levels pattern on the 150 so that's what we're looking for so we've got the arrival we've got the reaction well now we need the first high above the level so we need that first high above the level anywhere up there will do and when it pulls back to that point then that high will be that that high here will become the the entry point for this wherever that may be okay that's what we need because we need that to be breached over here otherwise it will just create the first high be pulled back and then have a second lower high and then move down again that said we have been looking to be long in uh bac here so we did go along here and then i put the stop really close is that that's the first of feb oh yeah because it's here and i'm we're in the second day over here sorry australia it makes it a bit difficult so yeah we put the stop really close you may have been stopped out obviously here um yeah probably have actually so i'm just going to remove that anyway it's just wasn't that important but um anyway we'll look at the back we'll get into the banks we'll get to them and goldman's we're looking at as well so goldmans can have a low in as well i just didn't want to take the low off this as a wave 2 here and this was our basically our target area for this move down but i was never that keen on this because this was not a lazy wave c here it's very sharp and a gaps in it's more like a wave three so um yeah it's bouncing back quite strong the stochastics suggest a buy so anyway i'll let it just develop and we'll get some other pullback in here for these as well and then we can build upon the 400 we'll try to get i think at the end of the day what we can do if it is going to be bullish then there's going to be some move up here somewhere where we'll be able to get some pullback into here and we can look at what we've got at that point within here but normally what i'll try to do in these cases because it's you know it's a bit dangerous you know going along in here i mean the money's in the turn and all the rest of it it takes a bit of intestinal fortitude to to move in um but in the bigger picture for the trend we'll try to get a position below the 400 and we'll try to build in above the 400 so on the 400 we'll be going 10 20 and 30 in here to build into here so that's what we'll do at that point i should point out too for um members that if you're looking to buy on lows and sell at tops then the switch method that the daily switch method which is sort of in with the robo method is definitely worth checking out because it's got a very high degree of success and that would have got you long just on the top of this bar here with a stop under here and then a stop here uh and then a stop under this one for the end of the day unless you want it to run you can switch to weekly chart at that point but um and the same at the top here on the short side so the switch method is a really good setup to um trade long alrighty this is a long video so apologies about that but anyway i enjoyed myself so that's part of the process cool cheers you

2022-02-03 12:23

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