Transcript for:
Trading Insights and Anchored VWAP

Welcome to the Rose Show podcast. Today I'm here with Brian Shannon. He is known as one of the best indie traders in the business. He's a CMT, founder of alpha trends.net and you revamped and brought back to life the amazing anchored VRAP. You're an author of two books, Technical Analysis Using Multiple Time Frames, and this baby, Maximum Trading Gains with Anchored VRP. It's a beautiful book, very colorful and bright. Got my little tabs up top because we take notes in this book because it's full of great information. How you doing, Brian? Doing great, Rosanna? Nice to see you again. Nice to see you again as well. It's our second time meeting for the podcast and we met in person about two years ago for this book party that you had in Manhattan. It was so nice meeting you in person. Um I love that cake you had. You had a great cake that match the book. That was cool. Yeah, it was nice to meet you and your husband as well. Thank you so much. Um now I want to start with your philosophy. You have this great term only price pays and it's actually trademarked. So, and you always say follow price. Can you break that down for everyone with exactly what you mean by only price pace? In a way, Rosanna, it's kind of me addressing my own issues in the market over the years, which was, you know, I'd find myself, like a lot of people do, you know, buying into a story about a stock, thinking that, hey, this is a great company. The stock can do nothing but go higher. And then I would buy the stock, it would go down, and I would think, well, the market's clearly wrong. Um, I'm going to, you know, so I I also say, don't buy the dip. So, I would buy the dip to the 10day moving average. then it would pull back a little bit more and I'd say, "Well, the story is still intact. It's at the 20-day moving average. I'll buy some more here." You know, don't frown down. Average down. And then it would continue lower. And then I'd be at the 50-day moving average, which was also a 38.2% retracement of something. And I'd say, "Okay, well, I'm going in really heavy now." And then the stock would continue lower. And I would end up being frustrated with a huge loss. Puke it out on a big down day. And then, you know, oftentimes the stock would then turn higher that day that, you know, the news came out and it flushed. So, what what I've come to realize over the years is that my opinion does not matter in the market. We hear it all the time. You know, I'm not the first to say that, but our opinions don't matter. Your opinion doesn't matter. My opinion doesn't matter. We're anchored to our own thought patterns and in the way that we interpret the news and that. and and I for whatever reason in the past have not been always a great fundamental investor. I'm good at seeing, you know, here's a good company with growth and, you know, in their revenues and earnings, but if it started going against me, I would believe the story more than the price action. So, it was my way of saying, listen, you got to stop doing this because this is where your biggest losers consistently come from. So, I would, you know, find a company that I like, great looking chart, I'd buy it, and then I realized, well, risk management is job number one. I got to get out of this thing immediately. I can always buy it back later. And it's gotten so much easier. You know, Rosanna, we used to have to pay commissions. I don't know if people remember that, but and we used to have to pay heavy commissions, you know, 15, 20 years ago. So, that's what I'm talking about when I when I came up with these, you know, guidelines. So, it's just a constant reminder myself and to other people, listen, the story might be good, but if the stock is going lower, just leave it alone. Let it be. Let it wait till there's evidence the buyers are regaining control. Well said. You want the buyers in control. Uh, thank you for sharing your experiences. Now, you also don't believe in buying breakouts, correct? Well, it depends on, you know, traditional breakout uh doesn't isn't always the same. Uh, in other words, um, I don't buy a breakout if the stock has already expended a lot of energy getting there. A lot of times you'll see people talking about a breakout and the stock was up 10% in the prior 3 days. So, you know, I look at the, you know, a great example just recently is General Motors. It just broke out. So, I sold some into that breakout because it was up seven or 8% from my purchase 3 or 4 days earlier. Um, so it it depends on the the questions I always tell people to remember are one, where has it come from? Has it expended much energy getting there? Are you chasing the stock? In other words, and just because a stock is up 10% doesn't in 3 days doesn't mean it can't keep going higher. But, you know, it's expended some energy. So maybe you know size down on your position a little bit because you know it's going to tempt some people to take profits up there. Uh so that's where has it come from? And then the second question is where does it have the potential to go before it's likely to find a source of supply that might become strong enough to become resistance. So a lot of people say hey there's resistance at this level $2 above the market. We don't know if it's resistance till we get there and get rejected. Until we see that happen, it's a level of interest on the upside that has the potential where enough supply will be released to become resistance. So, we want to be aware of that level. So, we look at and say that's where it has the potential to go reasonably. So, if I can frame my trade based on, okay, it has the potential to go two points higher, but the most recent higher low was three points lower. Well, I'm not going to risk three points to make two points. that doesn't make any sense. But but if I can find on an intraday basis that you know maybe we had a shakeout yesterday midday, it recovered nicely and now I'm buying the stock and I can set my stop 50 cents away underneath yesterday afternoon shakeout low and potentially make $2. Well then that's the third question is based on where has it come from? Where does it have the potential to go? Can I justify a trade based on the perceived riskreward? So my reward is potentially $2 and my risk is 50 cents. That's where I'll cut if the stock trades against me. So I in theory have a 1 to4 reward uh risk-to-reward uh you know one 50 cents of risk, $2 of uh potential reward hopefully if my analysis if the market agrees with my analysis. Yeah, you said it right. It's about riskreward and we want lower risk and higher probability trading. Um and uh this anchored VR wrap which I'm excited to get into definitely helps with that. So one last philosophical philosophical point by strength after dip and that is a really important one because we are so conditioned to buy the dip. So please unpack that for us. Sure. Well, ju just like I said, you know, the in the previous example of why I, you know, came up with only price pays is I would find a stock that I think is good. It would pull back to the 5day moving average. I would buy some. It pull continue to pull back to the 10day moving average, the 20-day moving average, and you just see these stocks continue to decline and end up losing money. Whereas, if you just wait for it to at least stabilize, stop going down at a minimum, then you say, "Okay, it's stopped going down. Let's take a closer look at this stock." and wait you know what where do I find the evidence on the shorter term time frame that the buyers are in fact gaining control then we're buying at the onset of renewed upward momentum so you know right at the beginning of the upward momentum and hopefully we have low risk there so we can look at and say again we've got a great riskreward ratio rather than if I'm buying on the way down if the stock pulls back from 50 and I buy at 48 and if it goes to 46 45 44 for where do I set my stop? What's my, you know, what was my plan here? And if you had a plan, great. But just buying a dip blindly, you're you're hoping to get lucky. And and it's and it works well if you don't mind, you know, oftent times a 20% draw down first. I'd rather be in a position of strength rather than weakness and, you know, wondering, hey, what am I doing wrong? and all the negative selft talk that goes through that and then it get you know so I I like to avoid the emotional cycle that you'll get trapped in when you start buying on the way down because it can be brutal and and you question you know whether you should even be in the market or what you're doing here and and you know what your purpose is. It's it's a it's a lonely place to be and I I don't like it. No, we don't want to be questioning our purpose um at all. And we definitely want to remove the emotions from the trade and the subjectivity. So, we could be more objective with this anchored VWrap. Quick question regarding the strength after the dip. How do you establish what is considered strength? Is it qualitative or quantitative? Is there a certain amount after the dip or does it all depend? It all depends. And it it's really in relation to uh you know the 5day moving average uh the volume weighted average price on a shorter term time frame. Um I can you know I I can always best talk when I am showing you examples of this. Okay. So looking at General Motors which I had shared uh on Twitter as it was right here at $49.5 right there. Um on that day I said you know General Motors looks good to me. It was just breaking beyond the you know some lower highs. and it had these higher lows. So, this is the anchor from the April 7th low in the market. It was, you know, above the 200 day moving average right here. And it just looked to me like it's getting ready to go. So, as it went, that's where I'd purchased. Now, right here on this day, this is what I'm talking about is is as far as, you know, not buying the breakout. A lot of people say, "Hey, it's breaking, you know, past the, you know, not the year high, but the six-month high right here." Now, is it time? and now it's time to buy. Whereas the proper buy was after it bounced off that rising 5day moving average. We had a higher high and higher low above the rising 5day moving average. So the renewed momentum was right here and my stop at that point Rosanne was right here. So I was looking at about 75 cents of risk and I thought it had the potential to get up towards this level. Uh and that's $4 away. So that's a nice, you know, math ma, you know, on math on paper that's a one to five riskreward. So, I sold some immediately that day, some more up in here just to reduce my risk. Uh, I like to go in heavy when I have a high confidence trade. And then that my next sale came on this day right here. And not at the high, but there's a strategy that I use, which is the two-minute exit. Oh, yeah. And what that means is just taking the the two-minute chart on that day, it had broken out. So if we go back to the daily time frame, it had broken past this high right here on this day. And that level, let's again clean this up. That level right here was 5329. So it was breaking past that 5329 level right about here. Uh and we've got to go back to that day. So at that point, what I did was I started using the two-minute exit. and the two-minute exit as it was breaking over here. Let's uh let's just tighten that up a little bit. Sorry for all the moving around on the chart, but I want to make sure we frame it properly. So, you you can see in here that it made this low. Then the next two minute it had a higher low. So, as that twominute bar completed and the first trade of this bar began, my stop was under there. As this bar began right here, I raised my stop under that one. As this bar right here began, I raised my stop under there. And as this bar began, that was the stop right there. So, I think I sold some at $53.78 was the price uh that I got out of uh partial. And then what you'd seen over here is my final third is right uh right underneath this higher low. So, I'm trying to see if I can maybe, you know, let this one run for a little while. And this is a 15minute time frame. And today, what I actually did is I added some back. Uh, so I purchased some more right here at 53.98 as was bouncing above the daily volume weighted average price. Realistically, I should have bought it here as it recaptured the daily VW web, but I wanted to get back involved in it because it's been holding so tight up in here. The reason I sold prior was that, you know, the last two drives like this, we saw the next day just brutal gap downs right here and right here. So, you have to be taking some out uh to take taking some off on on uh on strength um so you don't get blindsided and give you a whole profit back. But now that it's holding these gains, it tells me I can add a little bit back and hopefully it can continue to move and probably go beyond this peak. And I would take the same approach is if it gets up towards there, I will likely be selling some where to the so-called breakout buyers up in here. I see. Now, I I heard you mention the daily rewrap. So, you use the daily rewrap as well as the anchored together as like a confluence of different indicators. Yeah. So, so on General Motors, we've got this blue one, which is the year-to- date anchored VWAP, and we've got that green one, which is the anchored VWAP off of the April 7th low. And you can see that it, you know, it found buyers along there. And the year-to- date for this stock hasn't been as important, but it's something I have on all my charts. um in in the book actually you know there's the chapter about chase the gap or wait for VWAP and that's the perfect you know that's the perfect thing right here is do well today wasn't actually perfect on this but let's say it gapped up here we look for it to gap up and then we don't want to chase that gap in case it fails and I don't want to be buying right here at 5280 and then you know 10 minutes later it's at 5230 it's down 1% I'm not feeling too good about myself I don't want to I don't want to chase and I don't want to buy on the pullback back. I want to buy when I know the buyers have regained control. If it's back above the daily VWAP, it means the average person who bought up here, here, here, here, and here. This is now their average price. They're in a winning position. So now I'm on the winning team. And if I bought there, my stop would have gone below here. For my ad, I buy here and my stop goes below this. So that's just on my ad. And you can see that that is, you know, 25 cents, not even uh for that ad. I'm holding my core position, but the additional shares I'm keeping a tighter stop because I don't want to give it as much room uh for as I do the core position, which I have a much better cost basis on. Got it. Okay. So, I see you use the anchors. Well, let's let's back up for everyone. the anchor VFAP. We always ask this question where to anchor and I think a lot of people get confused on where you place anchors. Now, in the book, you break it down and I love how you have the different you have fundamental, you have the timebased, you have price-based events, and I'm noticing on these charts, and I've watched plenty of your videos recently, that you tend to anchor often on the election. That's a big one. The beginning of the year, January one or whatever the first trading day is. And then also this recent tariff news low, April 7th. Are those the three that you tend to have on most of the charts? They are. And I was going to point out this one that I've been talking about on Twitter as well, which is the, you know, the the IPO circle. Oh, yeah. So, this has gotten a ton of attention in the market because it's been super hot in terms of the way it's been trading. And this is a great example of anchoring to the IPO. Yes. So, that's a chapter in there as well. And you can see that, you know, initially had a little bit of trouble with it and then it came down, tested it and bounced perfectly. Tested it again and then we had this big move. So, that was a huge move right there off of the VWAP from the IPO. Then in here we're starting to show again the buyers maybe not perfectly but they're definitely that's the level that they are you know looking at and we want to look at it as a level of interest. So what I've been pointing out on circle is we're at this level of interest but we were below the declining 5day moving average. So I'm not ready to buy yet. So, in Sunday's video, I said, "Listen, you know, this is looks good on Monday uh to move higher. If it can make a higher high above that 5day moving average, it's going to drag the 5day moving average higher with it. And it's likely to rally up to the anchor from the all-time high. So, this is the entire life of the stock. And look at where it found supply yesterday perfectly at that anchor off. So, it went, you know, from this break higher here on Monday right up to where it was supposed to on Wednesday. And it might not look like much, but that's a move from 190 to 214. That's I mean, that's a nice move uh on this stock. And now, so the qu where where I'm bringing it is not just about the stock, Rosanna, but always anchor from an IPO IPO and you know, then highs and lows. So, this is clearly, you know, we had this big run up here and then it started to pull back. Now, you're not going to set the anchor there that day cuz you might have set it on this bar or this bar or this bar. But once it starts to back away from there, has that strong pullback, makes a lower high, then it makes a lower low, then you can point to this and say, "Okay, now I'm going to set an anchor on that. See how it behaves." we stayed stuck below it and then as it rallied up to it I suspected that it might be the place where sellers were found and that was where they were found. So highs and lows. So if we look at um let me let me try to think of another example or two um I'm just looking at well in this example right here quick question I have so you look using the rising fiveday there and then you can ride that to the resistance. So, is this considered a pinch? In the book, you talk about the pinch, how it's a confluence of anchors. Is this between two anchors? Would this be a pinch right now or is it not? Great observation. Yes. Um the the problem with it, so it's pinching between the anchor from the IPO and the high. The problem with the pinch right now is that this is 214 and this is two, you know, 184. So, we've got a 30 point range in here. So that's not what I'm really looking for in terms of a pinch that's actionable. Um, now it doesn't mean it, you know, so for a pinch to really be actionable rather than coming down like this, we want to see that it's a nice tight range. So as we compress in here and then if we break above that one, then we've got action, you know, then we've got action that is more likely to sustain. This is too wide right now. So 30 points on on this that's you know that's a 15% range which is about the average daily range anyway is 13.5. So that doesn't mean this isn't useful though Rosanna. So instead of being interested in the pinch so much, what I would want to see for the next potential upside move in this is that we continue to maybe instead of pinching between the anchor from the IPO is that we start to see the range tighten up with a 5day moving average. And then we could even look at and say what's the low of the pullback from here. So here's here's the anchor from that high right now and here's the low from that low. So maybe we're going to see that we rally up to this and then we pull back to these VWAPs and then tighten up like this. That would be ideal because then I could be a buyer here and this would be my most recent relevant higher low rather than looking for a to do a deeper pullback uh down to there. So that would really So I want to see that range compress as much as possible simply because if I buy the higher high and if I look at my definition of trend, I've got this higher high above that rising 5day moving average. This is the most recent relevant higher low. If this becomes on the breakout the new higher low that I'm interested in. Well, this is my risk right here. If instead I was using this stop, my risk would be down here more than double. So if I was going to risk, you know, $500, let's say, I could do 200 shares, you know, 250 shares here, but I could only do 125 shares here. So I've got the same amount of risk, but I've got twice the upside now because I've got that range so tightly compressed. We saw that today with Hertz HTZ that Hertz was nicely compressed um and it's it's always so it was you know breaking above this 720 level with that 5day moving average. So that was the buy above there with a stop under here and it took off right on the open. But when we look at it on two time frames you can see on the daily you know we were we were holding the April 7th anchor. We had the rising 20 and 50-day moving average and this is the month-to- date anchored VWAP that that blue line and we were compressing with a rising 5-day moving average right here. So that's to me the ideal type of scenario is we've got a really nice tight range. So with a a tight range and a buy of 720 with a stop of 695, I'm only risking 25 cents on this. If I'm going to risk 500 uh dollars, that means I can do 2,000 shares right here and only risk $500. If I had a buy at $750, well then I can only do a,000 shares and that's still a nice trade, but I'm buying at 750 and it runs to $8.25. That's $750 versus buying here at 720 2,000 shares and seeing it go up $2,000 with the same amount of risk. So, we're leveraging position size through the function of how tight our stop can be based on not just a random percentage. You know, well, I only risk 5% or 2%. Those are random percentages. What we're talking about here is what's the definition of trend? If I'm buying what I think is an important break of momentum right here, what would ruin that? Well, if we were to break higher and then it comes back in here and then breaks a lower low, well, my what I think is a continuation up here is actually a failure. Well, I don't want to be involved anymore. And that and I'm just going to go one step further because I put this trade on um Twitter three days ago. Uh docs rather uh docs that it was break, you know, getting ready to break right in here. And I put this I put this stock on as a buy right here. The next day it gapped up. So what do I do on the gap up? Well, I sell some into strength because that's just how I do it. Uh I fully expected, and here's the thing. I truly did expect, hey, we're breaking above the anchor from the beginning of the year. We're breaking above the anchor from this gap. We've got a rising 20, 50, 200 day moving average. We're above the anchor from the April 7th low. It's a nice tight compression here on the shorter term time frame. Last week we saw a shakeout in here and now that which didn't kill it made it stronger. We had a tight range bought in ahead of the breakout fortunately. And then what did I do? I used the two minute minute exit here as well yesterday. So I sold some as it broke a two-minute low right here on that bar and then I sold some more as it broke this low. And today I got stopped out of the rest down here which is good because it would have gone gone negative on me. So I fully thought and I was you know this is the type of thing I looked at the fundamentals they're good they're you know they're growing their revenues at 35%. Their estimates are great for next year. It broke this range. We can look at this as an ascending triangle if you want. You can say all the bullish stuff you want, but you've got to make, you know, take profits when you can, not when you have to, and raise your stops up because if I was still holding this, I would be down money instead of having a decent trade because, you know, sold some up $4 or so. Um, but this is where it's not always picture perfect and I have to remind myself only price pays. It doesn't matter how good the fundamentals are. It doesn't matter. It's the breakout. And imagine being the people who bought on the open this day because it got an upgrade or whatever it was. They paid $64.80 per share and now here they are 3 days later and they're down $4 a share on it. That that is that that's a you know that's 6 and a half 7% in three days buying the breakout. So I don't buy breakouts and I don't buy the weakness. So, you know, stock that I had been looking at um was uh Box Boox. I thought Box had a good looking uh chart on the weekly time frame. It was breaking out to these new all-time highs. So, again, imagine being the person who bought that breakout without a stop. What I was looking at is I missed the breakout. So, I wanted to buy it and I was I was monitoring the stock to say I want to buy this. Am I gonna buy it at the anchor on that pullback right here? Am I gonna buy it at that point just because it's at the anchored VWAP at 370 whatever it is right here? No. Because we were below the declining 5day moving average that was a pot that was a level of interest. What I wanted to see happen there was something like this and then that 5day moving average would have looked like this. Then I would be a buyer of strength right here. It didn't do that. So, I didn't buy that dip. A lot of people buy at the 20-day moving average. That was at $35.5 per share. And here it started to stabilize a little bit, but it had the declining 5day moving average. So, I didn't chase that. So, I want to see a flat and and and over here I was thinking, okay, well, maybe it does this. And then I can buy right here with my stop under this low instead. It continued lower. It rallied up to the declining 5day moving average. And that was the April 7th low uh anchor at $34 per share right in here. And it's started going sideways, but sideways isn't going up. It's still showing lower highs and it broke below that anchor. Then some people decided to buy the dip to the 30, you know, 33 and a half at the 50-day moving average. How good are those few people feeling? Then some people bought at the year-to- date anchor. And then some people bought at the 200 day moving average and they said, "See, I knew it. I bought the dip to the 200 day moving average. And you'll see those people get loud on Twitter saying, I bought the dip to the 200 day, but they won't tell you about how they bought some at the 20 and the 50 and all that. And it's still not a buy here. And in fact, the stock's probably too broken to be a buy that now we've got all this momentum down. We look at the anchor off of that peak, off of this peak, and then we do this. As you know, this is you when we saw that last touch, we do a handoff. And now we're starting to see, you know, we're stabilizing in here. Maybe there's a bounce trade that looks like this to get it up to that level. But now we've got a declining 20-day moving average. It's just a mess to me. I look at the stock and say, you know, it should have stabilized over here for a bounce if it was truly a good stock now. And and some people just get hung up on the stock, whereas I look in and say it's broken. Move on. What else is looking good? Um and and just you know that's why you you look for different opportunities in different names. Yeah, I see that. Now you mentioned the 20-day, you know, I know you use the 50-day, the 200 day. It seems that the anchored VRP gives you more information. It gives you more of a confirmation instead of just buying the bounce. A lot of people talk about buying the bounce from the 21day, let's say, you know, in market trends, we we follow that. And um but with the anchored VWrap, can you just show us an example of the difference how buying a bounce off the 21day but not using the anchored VWAP could actually harm you or we should say anchor VBA could actually help you by providing you more information because of the price volume and time. Yeah, I you know I can't think of one off the top of my head that fits that perfectly, but you hit an important point here is the difference between a simple or aial moving average. Now, I I'll I'll go on a small tangent is that I like a simple moving average versus an exponential because I can't figure out an exponential moving average in my head. A simple moving average, I know the formula. This is where we were 20 days ago. So, it's the average of these 20 days. That's what this number is. tomorrow when this becomes day 20 and tomorrow becomes day one I know that that's the calculation of the t the 21 EMA or the 20 EMA you know the closer data gets a little bit more waiting and I don't I haven't found that that really makes a big difference to me they're all just levels of interest okay so I want to see how does it behave when it hits that 20-day or 21 EMA I'm not going to buy the the bounce. Some people did and hopefully they got out. But with the declining 5-day moving average, it said we weren't ready yet. So moving averages, simple or exponential, tend to have a selfreinforcing, if not self-fulfilling prophecy because enough people say, "Hey, it's pulling back to the 20. I'm going to stop selling." Enough people on the sidelines say, "Hey, it's at the 20. It often bounces from there, so I'm going to buy." Now, what is the significance of 20 or 21 EMA? No one can tell you other than, hey, it's four weeks, but what's the significance of four weeks? I don't know. That's what the market decided is important. Same with the 50-day moving average. There's nothing magical about a 50-day moving average. If we were going to use something in that similar time frame, we ought to be using a 63-day moving average because there's 63 market days in a quarter and quarter, you know, that and and earnings are released once a quarter. So 63 days would make more sense. But for some reason, the markets decided 50 is what we're going to look at. And that's fine. That's great as long as we know the psychology of why it's important or why it can be important and why we need to, you know, it it tells us study it on a closer time frame. Just like the volume weighted average price says study it closer on a tighter on a at this point on a shorter time frame. So, as it was there, well, we had the same message. We're below the declining 5day moving average at this point just like we were at this point. But what the volume weighted average price tells us is not just some random timebased that man somehow agreed upon 20 days, 5 days, whatever. Those are good. They're good guidelines. I'm not I'm not trashing them by any means because I find them they're on my chart for a reason. Um, but the volume weighted average price tells me with 100% certainty the since this event right here, this the stock gapped up on which looks like it was earnings. You can you can barely see it there, but that means there were earnings that day. Um, so it gapped up on earnings. And who was in control from that event? Well, every single share gets one vote and says, "Here's the average price, not just based on time, but all of the time in here since that important market movement event." So, that's the event. So, we're going to get to the question that you asked me is where to anchor from. Anchor from events. So, this event some, you know, the the psychology of the stock shifted dramatically. It was just kind of languishing in here. Then the buyers got all excited and they stayed excited for about two weeks and they had the opportunity. This is why I want to look here because at this point what we wanted to see was this that we wanted to see the buyers take control there. That means that there was a big program trade that ideally meant that they were going to continue to defend that and maybe put on a program for a month or you know for till the next earnings report and say we're going to aggressively buy this stock. We're not going to chase it up here. But if it pulls back to the average price from the earnings we're going to be a buyer because it will often we'll often see that it does in fact hold as support from that event. Instead, it failed. Meaning that on this day right here, it, you know, some people of course were making money. But on balance, the average person who bought since that earnings, they were in a losing position right here. Meaning, the sellers who shorted this thing and were losing money up in here are now in a position of dominance. The buyers were losing money. They're scrambling. they're either going to defend this thing and buy enough to push it back up above that uh price and and see a shakeout or it's going to fail and it failed miserably. So, we're we're measuring from these key events um and and saying where are the buyers defending? If they showed that there there there were still buyers in here, then I would be interested in it and saying okay, now I know I can I can defend myself with a stop. Let's say I buy it right here on strength after the dip, not to buy this dip anywhere in here. But if I were to buy strength, then I would say the buyers are in control. They defended that level. And if they stop defending that level, well then my stop is going to go below that little low right in here that I've completely drawn over. So let's just kind of uh fix that. So I would say, you know, if the stock did what I would have wanted it to and expected it to if it was a strong stock is do this and my stop would be underneath here. So on that daily chart, it's very similar to what we're looking at on General Motors on this two-minute chart for my add-on piece that I bought right here. Okay, it tells me I missed that move in the morning, but the buyers defend the average price here today. So, I purchased more here with my stop under there. If it went back under here, then I'd say, you know what, the sellers li the buy the sellers are back in control for the day. I don't want this piece anymore. So, I'll move to the sidelines. And it could be a good short at that point. Um, if you're super aggressive day trader, but you've got to remember I've still got a core position from right here still. So, I don't want to short the stock necessarily because I look at it and I say if I want to short a stock, I want to short a weak stock. I'm not a super aggressive day trader who's going to do that. Maybe an aggressive day trader would, but I look at and say we're above the rising 20, 50, and 200 day moving average. We're above the year-to- date anchor, the anchor from the low anchor from the election. That's not a stock I want to short. If I want to short a stock, I want to short a stock that I'm just trying to look at my list. Do I have any here that uh uh I know I had looked at a couple that looked like shorts, but you know, we're in a bull market. We're in a bull market. Yeah. Yeah. So, you know, I want to short I want to short GM over here when it's below these declining moving averages, you know, below the 20, the 50, and the 200 day moving average. But now the bigger picture, the buyers are in control. So, you look at that weekly chart, we've got the rising 20, 30, 42 week moving average. It's looking like it's it, you know, it could have nice continuation from here. I don't want to, you know, I'm going against these major institutions if I'm shorting it on the shorter term time frame. To me, it doesn't seem like the best opportunity for a short. Got it. Now, we talk about time frames. I love how you showed us Yeah. the daily and then you break it down to these much 15 minutes. You do 30 minutes um and even shorter. So anchored VRAP works on all time frames, all asset classes. It's pretty amazing. So you showed us the fundamental events. We have the IPO, the April, the tariff news, the election, the beginning of the year. So on a shorter time frame, where do you prefer to anchor? You did you show us the gap. So let me see. So So we we we've got um fundamental like you said. So fundamental would be like we saw in uh box you know earnings. So we want to especially if it has a reaction. So we want to measure you know look at the huge volume. So that was on earnings. So we want to measure you know uh fundamental events like earnings. Um we want to anchor from uh FDA reports from the Federal Reserve. Um things like that. So events that cause a market shift. Then we want to measure from important psychological levels like the anchor from the low uh from the April 7th low. It was important in box. It held his support here and here and it tried to hold here. It was important for the spy. It held here. It was important for the XLK. Well, like XLK. It was important for Apple several times. So those are you know big events in the market. We want to measure from highs as well. So from this high where did the buyers gain control after this pullback? So we saw that the you know this was the high and we didn't know that was the high. We I didn't set that anchor till it undercut the year-to- date low here on the spy and then we saw that sellers were there and then sellers were kind of there. It defended that level. So that when we got back above this purple anchor from what was the previous all-time high, it said the average person in here is now making money. The average short seller on the way down is now losing money and the anchor from the low was defended here. So the buyers took control. So what I'm trying to point out here is that important highs and lows are always something to anchor from. Whether you're on a 30 minute time, a daily time frame like we just saw, or if we're looking at the anchor from uh May 23rd, I was looking, you know, I think that the next time if if we start to pull back like this, Rosanna, I think we're likely to see a pullback to this anchor and then it either gets a bounce from there and continues to move higher or it does this and maybe we get a little bit deeper pullback. But this will be an important level of interest. I know that. I I just know that it's it's the way that these things move. Um, so important highs and lows. And if we break down like I just showed here, like if if let's just say today's the high for whatever reason. I'm not calling that, but if it breaks down like that, well, over here as it starts breaking below that fiveday moving average, I will set an anchor here. And that anchor will look like this. And I would look at it and say, "Hey, it rallied up to the anchor from the high. It's getting rejected. It's most likely going to break this level. Maybe I'll do a day trade short down here because then perhaps it's going to pull back to the anchor off of this important low and it could pull back down towards there. So it's going from level to level in a way. Um so that's you know a 15minute time frame. Now if we look at here we've got the daily time frame. We had today we got back above the daily VWAP here. broke down and held yesterday's volume weighted average price got back above it. So you know the prior day's VWAP we gapped up yesterday afternoon as we got back above the daily VWAP after this consolidation the buyers regained control and the stock you know and the spy went straight higher highs and higher lows right into the close of the day and we had a nice compression here. So if if we're talking about again buying as it compresses and and in this case, you know, that was the 3-day VWAP. So here we it was pinching between the 3-day and the 2-day, but the pinch got tighter here. We had this higher low. Similar like if we're looking at circle and we want to see the higher low with the 5day moving average, not the anchor from the IPO we were talking about. We'll use this and say, I want to be a buyer here with a stop under there because if it breaks that, well, we're getting towards the end of the day. it probably pulls back deeper and as a day trade I'm not interested anymore as we buy as it breaks back above the daily VWAP after touching the two-day which is also a strategy in the book buying here with a stop under there we had a little shakeout and then it rallied raise your stop to here now what are we doing we're showing nice pattern of higher highs and higher lows running into again you know new all-time high territory so I I'm not sure I directly answered your question but if we really want to get nittygritty in here. And if we think that, okay, that was the high of the day and I'm Joe super scalper here. I want to look at that and say that's the high of the day and where would where would I want to sell? Do I want to sell in here? No, not really. But if it pinches between these and then breaks down, maybe it's going to go touch the anchor for the day. So then I could say from this renewed momentum campaign versus this momentum campaign we had Aid would B to C. So I would short here as a day trade and I would say worst case stop up here. Ideally I want to short it right here as a day trade because it's against the primary trend. And I would set my stop probably right here. As it breaks down a little bit further, I'd lower it to this level or even this lower high. And as it comes down to the daily VWAP, I would most likely cover the entire thing for a point and a half gain. Or I would cover 75% of it. And then if it does this, I would cover the rest there. Or if it does this, then I would start lowering my stop under these. As as it breaks this low, I would lower my stop to there. If it rallied up and then broke down again, I would lower my stop to there and just let it bleed out into the day and then close the day trade. Love it. You really make it look so easy, I have to say. Um, it seems like the best indicator. I just everything just makes sense. And it's interesting how you had it maybe go down on July 15th, which is what statistically is shown to be a pullback time for this time of year. Um, and it did make sense on the chart. What are some common mistakes that you see traders make when they're anchoring these VR wraps? And is it subjective? That's a follow-up question as well. That could two, let's say you take two different traders, okay, and one decides to anchor to a certain event or a couple events and another chooses to anchor to something else. Will they come up with different results? So, is that actually a mistake and where they anchor that would cause that? Yeah. I mean, so someone told me once, you know, I like your work on, it was a wellrespected guy. Um, I won't name his name. He said, you know, Brian, I I like the work on the anchors, but I think that it would probably work best with not obvious levels. And I said, "Okay, well, give me an example. Like, what do you have in mind?" And I followed up with him like a year later and said, "Hey, you know," so I just his first name was John. I said, "John, um, you know, I thought about that. Have you have you looked into it further? He goes, "No, but just like I said, non-obvious levels." Well, a non-obvious level would be uh you know this day there. We're just choosing a day right here that that's or or this day. There's just there's no re the what we want is the obvious levels and that's the beauty of it. The market turned right here. The the buyers, you know, the buyers regain momentum on this day. We want to measure this momentum campaign. The market moves in in pieces. It doesn't move just higher. It moves in pieces. It pulls back. Moves higher, pulls back. Moves higher and pulls back. So, we want to look at those and say, "What's my time frame?" If I'm a swing trader, I want to be involved in this as long as the buyers remain in control. So, the obvious places are the correct one because that's where the market has the most psychology. So the anchoring of it is you know Daniel Conorman's work with uh the anchoring with the you know the the heruristics one of them being the anchoring bias the recency bias uh and all those um so the anchoring bias is we're you know we are attached basically to what is important to us. Now it was that's not really in the market that's what it is. So when if I bought it at 600 what do you think my anchor is? you know, my anchor is 600 because that's how I measure success or failure in the market. If I buy it at 600, it goes to 598, I don't feel good and I'm losing money. If it I buy it at 600 and it goes to 605, I'm feeling like I'm pretty smart. I did the right thing and that's my anchor point. Well, your anchor so a common mistake as you were saying was what what do people do? And you know, people will say, "Brian, I bought at this price right here, so I set an anchor to that." And I'll say, "Well, you know, it's it's pretty weird that it's actually holding support there." But I'll say, "You're the only person, you and a couple other people, you're the only person who cares about that point. The rest of the market doesn't care. The market cares about since the buyers regained control after this pullback over here. We had a pattern of lower highs and lower lows that was replaced with a pattern of higher highs and higher lows. This is the spot where the buyers gained control. So it's important to the market. It's important to you know all these people versus your anchor is important to you who bought right here. So that's a mistake is that people will do that. Other people will make the mistake, Rosanna, of doing this. And it's a shame that you can kind of do this on your software. They'll set an anchor and they'll go like this. They'll go, "Oh, well, Brian, hey, did you see the anchor from that day? Did you notice how it touched perfectly right there?" And like, "Well, it's only important because you went and you were, you know, you were curve fitting here. You were looking at it and saying like this, so where does it touch?" That's not a repeatable process. We want something that is repeatable. We want to say after the profit taking occurred and the buyers took control, how are pe how are the buyers going to respond from that moving forward? And if we're on a shorter term time frame, how do we look at it in that shorter term time frame? And maybe we look at it and say the other day as the market pulled back from this high, we're saying, "Okay, well, the buyers regained control. I'm going to buy right here because yesterday the buyers regained control, but I didn't want to chase that gap." And this is what we were just talking about on that shorter term time frame where, you know, we had yesterday's gap and it recovered off of. So, the buyers regained control from the high. It gapped up though, so you don't want to chase the gap. and instead you buy as the buyers regain control here. And you could put an anchor off that point, let's say for an aggressive day trade and say, "Okay, that's where the buyers regain control. I'm going to set my stop under there." But you want to look at from a more structural standpoint, and you don't want to look at it and just get too fine-tuned. I mean, most people should not be looking at charts. You know, the only time I really look at a one minute chart, Rosanna, is in the first 10 minutes of the day. And then after about 20 minutes, I'll go to a two-minut time frame. After an hour, the lowest time frame I'll generally go to is a five minute time frame. And I won't go lower than that after the first hour of the day. Ideally, you want to be looking at, you know, the trends on these time frames. A 15minut time frame, a 30 minute time frame. Whenever I do my videos, I always have these two time frames side by side, the daily and the 30 minute. Otherwise, you can get lost in the minutia and instead you look at it and say we're making higher lows above a rising 5day moving average. We're still good. Let's not overthink it. We we came down, we tested it, and we get cautious here because it might have done this gone trapped below the 5day moving average. And if it had, then I'd be looking at this anchor and saying it's likely to come down to there. Let's see how it behaves. This is a level of interest that might become support. So, it's the same simple concepts that I've probably said, you know, three or four of the same phrases 15 times in this conversation. And they're just simple concepts on different time frames that show volume weighted average price is from a certain point who has control. What's the supply demand equation? The buyers are in control from this point from that point. The sellers are in control from another point. That's what we need to know. And to say are they going to defend it or are they going to lose ground? because if they lose ground, it's likely to continue to pull back a little bit deeper. So, I don't want to be involved. Just like, you know, don't buy the dip in box, don't buy the dip in uh Dolingo was another one that was, you know, people want to buy the dip to the 20-day moving average to the 50-day moving average to the anchor from the 7th, from the year-to- date anchor, from the anchor from the uh election. But we still see lower highs, you know, declining five-day moving average. It's not ready yet. We keep showing these levels of interest, but just because we're interested, doesn't mean we're going to be a buyer. Exactly. It's not about us. And uh, you know, we all want to get a good deal, so we think buying the dip, we're getting a good deal. We know something others don't, but then we should wait for that confirmation. And that's what the Anchor Vback provides us. I love it. Um, you know, I love how you personify the movements. You're like, "Oh, the this is what people are thinking here and there, and you can really feel the technical analysis." I love it. You're a great teacher. I have to say, Brian, excellent educator. Thank you. Um, you're welcome. And your book is fantastic and how you break this all down. You have a great quote in there by John Opie. Art is more godlike than science. Science discovers, art creates. And you're definitely a creator. Um, these are these are great charts. I want to give you a high volatility question. Show us, let's say, TM Tem and a high volatility stock. if you could show us your anchoring on that. So, so, so here I've got on the So, I spoke about this in a webinar last night and as you said, it's a wild stock. The, you know, the stock has, I think, doubled three times and then just completely fallen apart. So, you have to look at the personality of the stock and be aware that, you know, if you're not taking profits into strength, it might feel stupid to sell some here as it goes to there, but not as stupid as it does to buy it here and then hold it all the way back down to here and hope that Pelosi says she's buying it at this point, right? So, we we can look at that and say, well, what about the Pelosi anchor? Has that been important? And is that a fundamental event as well? Well, it got such a strong reaction on volume that I consider it to be one. And I don't know if was was this the day or was that the day? I really don't remember, but I consider that, you know, it was a it's a it was a market shifting, a sentiment shifting event for this stock. So, here's the same story on uh TEM. One, you've got to be aware of the personality of the stock. It can double, but those doubles, you know, completely fall apart. Um, and then you know the 20-day moving average right now is declining. It it tried to find buyers there at the 20 moving average, but it failed. And it failed at the 50-day moving average. Now it's at the confluence of the blue year-to- date anchored VWAP, the orange anchor from the election, and green anchor off the April 7th low. So, I actually day traded this today and I did it with you can't see it, but when I when I trade these sometimes and I did with this stock, um I tra I bought the double which is te uh I like a wild one probably. Yeah. But but you know, it's it's a $20 stock. It's uh Anyway, so what did we have in here today? We got back above that fiveday moving average. The five-day moving average is flat to rising. We're above the week to date anchor and the monthto date anchor. So, I'm I'm already out of this thing and I actually didn't trade it very well. Um, I bought it over here as a reclaimed the VWAP. I sold a little up in here and then for some reason I sold the rest right here. So, I haven't I I didn't do I mean, I made money on it, but I I really wasn't very disciplined truthfully. I should have waited, you know, for this to to show me. I should have had my stop under here. Wait for it to this. Raise my stop there. as it pulls back and makes this high, raise my stop here and then bend out or looking at it saying it's at the daily VWAP. But I look at this stock in Ros and it's just it is a little bit too wild. If we look at the anchor off of the high and then from the handoff, this is you we we look at it and say we're likely to this is if it's going to continue, I would be highly uh aware of this level. It was prior resistance turned support and that's where we have the anchor from the high. So if it runs to 64ish then it's likely to do so in a way like this then rallies like that and I would be very tight with a stop because it's either going to do this and based on the personality of the stock I would think it's likely to do that or it's just going to continue to move higher which it can do because it's just that crazy. Yeah. But the key is, you know, manage the risk in there. Wow. Very nice. So, could let me let let's throw out some finit favorites if that's okay with you. You know, one that gets talked about, there's a few. You you pick which ones you could do all if you want. Hood, whatever you want. Hims, Oscar, you know, I has become very popular. We'll get into crypto after this, but you know, we'll talk about Bitcoin and ETH, but um yeah, what are your thoughts on on all of these? And Robin Hood is just a beautiful pattern of higher highs and higher lows above that rising 20-day moving average. We had a little pause here. We had a shakeout at the 5day moving average. Buyers are back in control. I mean, it I think the the default thinking is it's innocent till proven guilty. This was an important shakeout. So, as long as it's above there, it's innocent until proven guilty. A stop would go under there. Um, Oscar, I think, is a broken name. If if you look at this one and you look at the weekly chart, it's so I've spoken about this one already, but it's not the first time it's done this. This is the personal you have to you have to look at the personality of the stock when you get involved. it had and and it's it's probably we can even see it better on this daily time frame that it's had these big runs before kind of similar to TEM that it had big runs everyone got excited and then it just got the kicked out of it and here again sorry on your broadcast uh for swearing but it's annihilated right and it's back down in the range so you have to think of this is that let's anchor from what where people got excited they got excited here. This is where that move began. And for a little while, the buyers defended that level. Then we had a gap lower. And the average price for this stock since this event is way up here at 18.5. The stock's at 16. The average person is down two points on this, you know, $16 stock. That, you know, that's what is that 17 15%. So, it's broken. It's back into the range. This is going to be a complete waste of time stock I think for a while. Leave it alone. Hims is similar in that we had a a big event that you know a big fundamental event. Now it's here's the thing support broken tends to act as resistance. So, if you're long the stock, I would say tighten your stops in here because one, we're at the we're at prior support, which tends to act as resistance. Two, we're at the declining 20-day moving average. So, those tell us, you know, we we have the potential for supply up in here. Sometimes I look at line charts just to simplify it. And in there, you can really see that much more clearly that this support was resistance, has the potential to become resistance. If we look at the 15-minute time frame on the bar and say, okay, from the gap down, this is encouraging on the short term, the buyers, you know, it dipped below it briefly, but then took control here. So, you might have bought there with a stop under here. If so, take a little bit off if as it runs into this level because it was such perfect support turned resistance. Take some off. Raise your stop up under here. It rallies higher. put your stop up under here. But where does it have the potential to go before it's likely encounter source of supply that's likely to become resistance? We are there. Where have we come from? We've come from 41 to 51. So we rallied 25%. Where does it have the potential to go? We rallied 25% straight into a place that's supposed to be supply. So is the risk worth the reward for a new purchase here? Not not not the way I view things. Seems guilty until proven innocent on this one. Yeah, it's definitely at an important level that you know maybe the buyers can push it up here and it does this and continues on its merry way to new highs, but it's definitely an area where you have to be paying close attention because if it fails, it might fail hard. I don't know how strong that news was le losing their partnership with whoever it was um and how instrumental that's going to be to what Yeah. Yeah. What what they do. Wow. What about the quantum names? It seems to be uh you know aerospace is big. Rocket Lab you have as you have ion I kind of like rigetony here. Riotone rigetony is, you know, it's it's breaking this supply right here, right? We had, you know, that for a month we were stuck under that. We've got a rising 20 and 50-day moving average year-to- date anchor anchor from the low. If we take a look at the anchor from the high right here, oops, we're back above that. So, that is looking good to me. Very nice. We've we've got a good short position in this stock as well. So, and this is the type of stock that can really get going when it goes. So, I've got my eye on that one. Um, as you said, O andQ, um, this one's more of a this one's more of a grinder. So, the personality of this one is is not really one that I like as much, but it's making clear higher lows. So, you know, next time it if it breaks this, I think your stop goes up under here. Um, and then you've got uh QBTS is looking interesting to me. That that one could get going here. That's a big runner, that one when it gets going. Yeah. And and here's the thing. So, you know, similar to the fiveday moving average, this is where we were 20 days ago. Tomorrow, this will be 20 days ago. Meaning, this 20-day moving average is going to look like this tomorrow. And then this day on on Friday, it's or Monday, it's going to look like this. So, we're going to have a rising 20-day moving average. So, if it if it just consolidates a day or two in here and continues to tighten up, maybe it does something like this, comes down in the month today, tightens up, I would love it above here with a worst case stop under here and then raise it up under a higher low that might occur there. So, QBTS is a nice one. So, let's quick question. So, break it down for people looking at this chart. Beautiful chart. I love your confluence of anchors over there. Now you have rising I think that's a 50-day you're So you're waiting for a rising 20day and then to be above that anchor up top there on the right. Uh yeah. So if we put an anchor here off the high. Yeah. Right. We're having a little trouble with that. It it honestly though you look at this and say okay how important is that VWAP? because it's giving us mixed messages in here. And I don't want to buy it here because again, where had it come from? It just ran from 13 1.5 to 17. So, it just had a, you know, big run. So, let it pull back. Let it consolidate a little bit. Build energy. And as that happens, the 20-day moving average will no longer be declining. I've I've got that same situp in in A that I've been talking about. App loving app loving not it's not loving it as shareholders lately. I know from the high from the high of 420 you know it broke down. You put an anchor off that where did we find supply? Where did we find supply? What's the direction of the 20-day moving average? We're getting rid of this data to tomorrow, Monday, Tuesday, Wednesday, Thursday, you know, maybe mid next week. This stock can calm down a little bit, but it's finding supply right at the anchor from the high. So, and it's, you know, it's pretty squirly in here. Would you have bought it here? I mean, I didn't buy it here yesterday because it just ran. I don't want to I don't want to chase it from 345 to 360. So if this stock can calm down a little bit in a few days by mid next week, this might be a strong setup as well. Uh but some of these stocks seem to be kind of having a little bit of trouble. AAB is in the kind of the the same type of, you know, it tried to break out today and this perfect example of not buying breakouts, right? It broke out past this range. It had been in this tight range for the last month, month and a half. People who bought the breakout in there today just got destroyed just like the breakout on this day and the breakout on that day. But what do those breakouts have in common this and this they were they had already made a big percentage move 90 to 100 88 to 102. So we want to see these things settle down maybe trade a couple inside days and then they can go fulfill it. But you know they they're too wild. They've got to calm down. Yeah. And and uh you said I think you said drones. I think Archer is setting. Oh yeah. And Joby Archer. Archer's Yeah, Archer's getting close. So there's the anchor from the high. I'd love to see Archer do this. Go make a new high. Oh, make a new high here. People will chase it. Uhhuh. Because it would have been up from, you know, 9 and a half to through to 11. So 15%. then pull back and then the big move begins. Because if I buy here, my stop has to go under there. Yeah. If it rallies up, it's extended, people chase it, they flush it, and then I buy here on strength with my stop under here, well, then I can buy, you know, maybe three times as much of this one. And like you said, Joby is I think a little bit more extended. So this one it's I think you've missed the move in Joby if you're not in it. Um otherwise you've got to wait for the next pullback and buy strength like this. Buy here with a stop there. That's a good idea. And as Rocket Lab Rocket Lab may be a little extended as well, but okay. Let's go AS. Yeah. And and AS is probably the better one because it's pulling back. But I'm not going to buy the dip here. you know that it's it's it's trying to find buyers along the 20-day moving average, but it's not finding the buyers there, right? I mean, just because we're in this zone, if we look at it, the buyers, you know, we ideally what we saw yesterday was a shakeout. So, if that was a shakeout below the 20 and we do the same thing, we put an anchor off of this high. Yeah, that's I was going to say you put it up there. Okay. Yeah. And I would look for either you can be a buyer above this level with a worstase stop here or maybe you put half of your stop under here and half of your stop under under this level. I'd like to see it do this and then make a run for that anchor from the high. Maybe lighten up because it it might fail again. I you know docs I thought it was going to keep going. I've kind of felt like you gota you got to hold these things because it's a big name. It can continue. But my discipline tells me, thank God, to sell some. And my discipline says don't take a loss on any shares because I would be down, you know, 50 cents or more on this stock rather than booking a decent profit. Um, but as back to as I'm sorry. Uh, I'd love to see something like that. It's it's it's the right group like you said and and Rocket Lab is also getting a little bit more extended. Um yeah, so the more extended it is, it doesn't mean I wouldn't trade it, but I would trade it with smaller shares and I would put my worst case stop under under here, which was yesterday's low. And that's the week to date volume weighted average price that seems to be holding very nicely right now. A quick question, time frames. Let's say you have long-term time frames. You have a lot of people who are, you know, they believe Rocket Lab, you know, 2028, 2029 and, uh, as ESTS is going to be taking over, you know, Starlink, you know, there's all all this talk about it, you know, what are your thoughts on using the anchored VR for those people? Um, how would the benefit them? Let me answer it like this. I mean, how far back do you want to go? If you look at Intel and if you look at this anchor I have on here, it goes back to the anchor from the IPO in 1984. And do you want to hold with, you know, with that? You can see how it's been important in the general area. Wow. And it's like magic. It's sorcery. Um I mean it feels like it, right? So does that mean you want to hold No. during this decline from 70 down to 20 I you know so for Rocket Lab you look at that and say what what's the long-term anchor well if you look at the daily chart you know so here's what I had drawn out previously do you do you want to hold I mean this is a brutal decline from 32 down to 15 it got cut in half right do you want to do that or do you want to be a buyer as the buyers regain control over here and you know look at it and say okay the buyers are back in control as it regained the year-to- date anchor. You're not going to buy the low or maybe you buy the bounce off the you know right here was really the ideal purchase. So now do you say okay well maybe your long-term anchor was this was the shakeout low on April 7th. So I'm going to have my stop way down here. And there's nothing wrong with that. As long as you're mentally prepared that, you know, to be a long-term investor in a stock like this, you've got to be willing to see the stock drop 35% from 40 down to 30, 25%. And then if it does that, you know, then it's maybe going to do this. So, it comes down to that anchor off the anchor off this high, regains it, and then, you know, add to your position over here. That's the way I would look at it from a long-term investor. Absolutely. Absolutely. So, I want to ask before we get into crypto, um, because I know this anchor revap is great for all the crypto, the ATR versus the ADR, you have a great ratio that you talk about. If you could share with us how you use that. Well, so what I talk about it with the ADR versus the ATR is simply that the the average daily range is the the height for that day. Mhm. But if and let's say the stock trades between 24 and 25, but if it closed at 23 yesterday, yeah, the ATR says the a the true range is from yesterday's close to today's higher low. So what is you know the average daily range? Um so when you have a small daily range, so something like that might occur in something like gold. Yes. Where you have gaps every single day that these gaps are, you know, or or like Chinese names like uh let's say FXI where you have daily gaps that it's it's hard to what what I'm what I what I look at it is I want to know the true range. What is my real risk in this stock? And and when I see that we've got these large gaps nearly every single day that it makes it too difficult to manage risk there for me that I I feel like I don't have enough control of the risk because I'm giving up all this ability to trade because this is trading that occurs overseas overnight when I'm asleep. So the market has to gap to adjust. So I don't want to trade where I give up all that edge. So look at how big some of these gaps are. They're twice the size of the actually daily range. So I won't trade, you know, ADRs like uh this or you know or GLD or even IBIT. So let's transition as you said over to IBIT. Let's go to crypto. Uh crypto. So crypto trades 247. IBIT trades, you know, not counting mark uh you know, after hours stuff. you're you you know crypto doesn't gap but IBIT does gap so you're giving up your ability to control risk if that's not important to you that's fine but we have these large gaps in here whereas when we look at a chart of uh Bitcoin itself and I'll share that screen right now what we see is of course we've got a much smoother look that uh is that the Bitcoin chart I'm the Bitcoin chart I'm sharing there it Yes. So, so here we are in the daily chart and there and these are 4hour bars. There's no gaps in here. So, this is the true range. The daily range is much different because, you know, we're up a,000 points overnight or if we're down a,000 points overnight, you're trapped. You can't do anything versus the 24hour market. So, Bitcoin right now, it's just a pretty simple, you know, we had this high, we had a lower high, we had this low, we had a lower low, we had another lower high, then we saw a higher low, and we saw a higher high. Now, we have another higher low. Quick question, you use same type of fundamentals of of anchoring for these assets for crypto as you would equities. You use the same, correct? Yeah. So in in fact um so as you can see here that red one is from the all-time high. This was from the lower high. This was from the low that we just saw. And actually so I bought it over here and I was kind of embarrassed because I sold some here but I quickly bought it right back right there. So I'm at 100% size in my uh crypto account long because the pattern is higher highs and higher lows. Yeah. Alltime highs. and and and let me show you something really interesting on Ethereum is or was it Salana? I forgot Salana. So, if we look at Salana, this is something I pointed out on Twitter. Let me just clean this chart up. This anchor. No, it was I'm sorry. It was Ethereum. So, let me snap to scale. Uh so, this is I had pointed this out on Twitter over here on this day. uh right here. This is when it officially the first trade on Coinbase. So basically it's the anchored VW web app from the IPO for Ethereum for when most people could trade it. And what do we notice? Well, we saw buyers over in here. We saw buyers over in here as it pulled back through the anchor from the high as it pulled back the anchor from this low right here. It came down perfectly to that Brian pointed out it is and and and the funny thing is I didn't trust it. I I looked at it as a level of interest. So I didn't buy that day. I did buy however uh about two days later. So when we look at this two-hour chart, this is exactly where I bought right here at 1545 or so. And I I still have some of that. Um, I sold some over here and then as it pulled back to that low, that anchor, I again added back what I sold as it bounced from the anchor from this low. So this this low right here, which was the low from basically the IPO, that's that level at 1380. So just again, that's this level on the weekly chart, right? So when it pulled back to that, we anchor off of that low. As it started to rally away, it undercut it briefly and then as it started to bounce, then I bought more right here. And now we're at the anchor. If we look at the weekly chart, we're at a pretty important level. I think is that, you know, this was support turn resistance back to support and then resistance. I'm thinking about lightening up in Ethereum because we have the potential for supply, but Bitcoin, we don't have the potential for supply with an all-time high. So, this one won't have people looking to break even the way they will in Ethereum where we have all this prior price memory. So then you would be more bullish Bitcoin here per the chart because of the supply that you see is possible in ETH. Correct. Whereas Bitcoin, you know, everyone's a winner, right? So you're only so you're not so the point is you're not except for the shorts, which is a good thing. Um so the shorts in here are thinking, "Holy crap, this thing's getting away from me. I better cover." Which adds more demand. Oh yeah, right. And meanwhile, the hodlers, they're just going to continue to do that. Oh yeah. And the traders are looking this saying, "Yeah, maybe I'll take a little bit off to satisfy my profit, you know, urge to take some profits." I haven't done that yet. But I'm looking and saying it just made an important higher low right here on this 4hour time frame. So this is a way as far as I can see. Um don't don't tinker with it when the pattern is higher. But the the the point is that anyone who wanted to get out break even is out now. Everyone else is at new all-time highs. So we don't have that natural source of supply that comes from people who are saying like in Ethereum, well I've been holding this thing for two years now and now I can finally break even. I'm going to get out of this dog and put it into Bitcoin. I love the psychology that you add to that. That's that's that's exact that's what people think. They're like, "Oh, I've been holding it so long. I'm finally at break even. Let me get out." You know, that's what you have to see when you see the charts. You can't just see cups and handles or heads and shoulders. You have to look and say it's people. And you know, as I often point out, what is a head and shoulders pattern? It's going to look like a dirty drawing, so I'll just I'll make it wider. Um, but it's it's just a pattern, you know, where we previously had lower highs and lower lows. Now we have a higher low and a higher high. That's all a head and shoulders pattern is. It's it's a pattern of lower lows and lower highs going to higher highs and higher lows. Yeah. It's just a change of trend. Wow. How about XRP? That's one that people have been holding a long time and you know it's it's been brutal for the for the holders. It has. I mean, so I this was was this was this when Elon went on SNL? I think that was the Elon Peak when he went on SNL wearing a like a crypto outfit or something weird like that. Um, but you know, it had a huge runup at the election. That's what this orange anchor is. So that orange anchor there is from the election and that's when people started believing, okay, this is good for it. Now, we've kind of been just, you know, here's what I hoped was going to happen was we're going to pull back in there. So, my plan was I was going to sell a little bit of my Ethereum, wait for cryp uh XRP to pull back and then buy this. I think we still might see some pullback in here, maybe at at this level. But it looks great. We had a beautiful shake out here from that failed move. Now, we're getting this fast move. We're probably headed quickly to this 265ish, but I simply can't chase it here because it's just run from 220. You know, it's just run 10% here in the last day and a half. Um, but it XRP is looking great. And longer term, I think you're probably going to go see it hit those all-time highs. And uh, you know, you're it would be big trouble if it got below this low, but that is pretty unlikely, I think. And what we ought to do is put an anchor on that low right there. What's going on? Why is it not drawing? Here we go. So, you know, now we've got an anchor off of that low that you can see is maybe being defended as well on this dip. And then right over here, I didn't mean to draw another one. I've got too much stuff on this chart. Let me clean it up a little. So, new all-time highs are possible at XRP. It certainly looks that way. Well, we're in a pro crypto environment. So, you know, that's, you know, so this is the all-time high right here. So, we don't have to look further back. So, the all-time high is basically 340. And it that looks certainly reasonable. And, you know, I I crypto can do crazy things. It could go in a straight line up to there. I hope it doesn't. I hope it does this. That way, I can load up right here um after a dip. But it seems like it's headed uh that way. And that's that's a 50% move from here. Wow. If you look at it this way too, you could also put a you know volume by price and see that it's now breaking beyond this big consolidation zone. Yeah. W So crypto is looking strong here. What about the stocks attached to them like I s ETH treasury mister? Those are looking good. I think you know like Mister and coin uh I I personally am not interested in those because they are you know they're basically a proxy for Bitcoin. So I I just I just own Bitcoin. Go straight to Britcoin. Yeah. Yeah. Um, but some of the other ones, like you said, iron, they're they're making these huge moves. Miners and AI infrastructure, BITF, there's a big one today. BITC, was it? It wasn't BITC. Um, but you look at that's a bit I I don't remember what it was, but there there's one out there, and there's this one uh uh I'm embarrassed to admit I own it. G Gr Y. It's Grayson Digital Mining. It I I I'm guarantee it's a worthless scam company, but the point is it's got a great chart. It's breaking above this resistance. Most important. Um it might have been BITM. Uh no, that was uh so that that one that was the Tom uh Tom Lee one that you know that turned into an Ethereum. How about the SB bet? The SBE. Oh, SB bet. That one's I trade that one for me. Do you? I mean, that's a hell of a rally from nine to I mean, it's just doubled this month. And so, where has it come from? It's it's come uh 100%. And it's coming into the anchor. Uh, you know, the the year-to- date anchor is the blue one right there. Would you anchor from that top point up there? Yeah. Yeah, that's exactly where I was just going. We can see it better here. in from this gap. So, it's above those. Oh, look at that. It's right at the anchor from the gap right here on this day. So, I would be in protective mode with this. It's It's showing, you know, it's above that rising 5day moving average. It's got these higher lows. Now, I would use this as my higher low for at least half of this if I was in because we're up against the year-to- date anchor, the anchor off of this gap right here as we saw. That's a big one, right? Big resistance there. So it has the potential to become resistance. It's touched, it's probed it so far and we have, you know, some momentum away from this low. So I would say, you know, if I owned it at a good price, I would feel stupid if I didn't sell some if it broke below here because if it broke below there, it might come down to 15 and and and that would be, you know, that's that's a big pullback. That's three points on an $18 stock. That's 20%. So, if it did that, I would be more interested in and and this is me as a trader. Uh I would be more interested in seeing it do something like this. And then I would, you know, if I sold here, I'd like to buy it back maybe right here with a stop under there. Yeah, it's uh ETH Treasury, so hot right now, I guess. And that's Yeah, that's exactly what uh the the other one uh BMR that was. Yeah, that one. Tom Lee's Ethereum Treasury. Wow. Yeah, that had a big big run there. But, you know, like you always say, it's about risk management, right? So, this is this this is why you've got to, you know, raise those stops up underneath the important higher lows and be willing to get out because if you don't do it quick, they're going to they're going to steal a lot of that away from you. And I know if I own the stock, let's say even at $13 a share, I would feel like a complete jackass if it came back to my break even. Oh gosh. Gosh. To see it go to 20 and then come all the way back down and not take any profits. That's that's tough. Yeah, you got to take some. And you know can't you know some too too many people are obsessed with catching the high or giving up some of the upside for rather than saying okay let's be disciplined here. this type of move is not normal for it to double in just 10 days. So, let's make sure we protect this if it goes all the way back down. And and too many people do that. They you know, look at look at the perfect example of GameStop. You know, this is and and here's the thing. This is when GameStop announced they were doing their Bitcoin treasury, right? That was they gapped down from 30 to 20. Yeah. Wow. These are hot ones right now, but you got to take your breath. Well, they don't stay hot. And that's Yeah, exactly. They could turn into into this. And you know, you own a stock at 30 and opens at, you know, 20 the next day. Man, that takes a lot of a lot of my enthusiasm for the the month away from me. Absolutely. So, this has been great. Wow. You really are a master teacher. I have to say this has been a great lesson in the anchored VRP. uh seems to be the most valuable indicator out there. So just to wrap up, you use a little fundamentals. I saw you mentioned market surge and how you use the revenues and the earnings per year, the growth. You use the rising 5day, 20, 50-day. Um, however, the most important are these anchored V- wraps that you anchor to all these different events and then you get the confluence of anchors and then a pinch. Can we can you find us a pinch? I just love those pinches. If we could just see a pinch. Well, yeah. Let me see if I can just kind of scroll through and see something. Um, because those are exciting because then you watch and then they can break either way. So, you know, was Herz pinching? No. Um, I I think the the example of circle is the best one I can think of offhand. But again, what we want to see in a pinch is a tighter constriction of range. The the wide range here is saying it's not as useful. But if we were to see it then do this and energy build between the rising fiveday moving average higher lows. Let me see maybe there's something on a real shortterm and then other traders can call it consolidation phase. Is that sort of like a tightening up and consolidation similar? That's exactly what it is. So yesterday uh again we saw the spy gap up and it pulled back below the VWAP. came down to the conjunction of the two, three and four day VWAP in there and it bounced from that zone. It made these higher lows and then it broke beyond that pinch. So here was a pinch but again the the pinch was really defined by that two-day VWAP down here at 621 and a half and 62275. But from a day trade perspective with an hour and a half left in a day, you you were better served. And I don't say that just because it worked, but I would have been looking and saying, "Okay, if I'm going to buy here, my stop's there because I've got the clock ticking. I only have an hour left in the day. So, I want to keep a tighter stop because if it breaks this, then it's likely to either stall out or continue lower. I don't want to lose the extra money. And it's the end of the day. I looked at this as a day trade anyway, so I just want to close it out. Wow. What would you say your average riskreward is using the anchored VWAP? Now that you've mastered it, would you say you've lowered like what would be a good ratio on average? Um, you know, so in my in my closed out trades, it's probably about 1 to two and a half. Wow. But it's it's so that so it depends on the time frame as well. So you know shorter term when I'm really micro trading I might be higher ones because I can especially if there's more time left in the day. So for instance if you were to buy right here above the daily VWAP after it touched the two-day VWAP. That's your initial uh stop right there of let's just call that 620. So that's 85 cents. And here we are at six, you know, at 627. Let's say you closed it out right here at 627 and a quarter. Then you've got uh, you know, you've got three and a half points versus your what I say 60 cents. So now you're at 5:1 so far. And who knows, maybe it continues to go or, you know, now your stop are you going to raise your stop up under these higher lows. Very nice. And that is spy. We're in a bull market. It's exciting times. It is. It's more fun when they're going up, isn't it? Oh, absolutely. And this has been absolutely so much fun. Uh you're a excellent teacher and uh thank you so much for your time, Brian. Please share with everyone how they can follow you. I know you have this like really cheap, like insanely cheap subscription on Alex. It's like $10 a month. tell everyone about that. Yeah, it's so I I do daily videos there and talk about the the ETFs. I talk about, you know, uh the the trades, you know, some of the trades like uh I alerted them to that uh exit right here in real time on uh that X for 10 for $10 a month. Um told them about the uh exits in uh DOCS uh to make that a profitable trade. I I'll put, you know, so I put Docs on Twitter and I said, "Worst stop goes under here." And then I said, "Make the trade your own." Um, but subscribers know that we sold some here, some here, and the rest there. Anyone else who's just following on Twitter, you know, if they're still holding, they're down. So, I I teach how to manage the risk in some of these trades, as well as, you know, just daily updates and education and uh monthly webinar and that sort of thing. Awesome. It's a great It's a great deal. Absolutely. Alpha trends.net. That's your great website. Um, so this has been awesome. So, we'll have to meet up again and hopefully it's still a bull market. It should be. Okay. So, thank you so much, Brian. Thank you, Rosanna.