Trading the Bull Flag Pattern

in today's episode I'm going to teach you how I trade the bull flag pattern with confidence and consistency this is the example of the pattern right here where we see a Quick Squeeze up in the price followed by a momentary pullback and then another leg higher now we're going to use my trades from today as a case study you can see that I'm Up 9,481 3 today trading bull Flags in addition to several other patterns that are based on trading the trend trading momentum now there are two reasons that I love teaching the bull flag pattern to beginner Traders the first is that this is a pattern that is very easy to spot on charts it's very easy to find it using stock scanners now if you trade cryptocurrency or you're trading the Futures Market you can also use scanners to find this pattern there so once you get really good at recognizing this pattern it's almost impossible to miss it it just stands out so well now the second reason I love it for beginners is because this patter pattern includes three very important prices as part of its construction there's a very obvious entry price there's a very obvious Max loss and there's a very obvious profit Target because these three points are part of the construction of the pattern it really eliminates the margin of error for a beginner Trader it's not up for negotiation what the correct entry point is it is part of the pattern the low is your max loss your first candle to make a new high is your entry and your profit Target is a retest of the high of day for the first Target and then second target is that we get continuation higher so now that you understand the basic anatomy of the bull flag let's go ahead and jump into the slide deck now this is a pattern that I do teach to beginner Traders at Warrior trading and so some of these slides are an excerpt from my classes that are part of the warrior Pro curriculum this is a great example right here of this bull flag pattern where we've got a Quick Squeeze up a momentary pullback and then that first candle makes a new high now some uh something that I hear a lot of Traders say when they look at this pattern is they'll say Ross I have a hard time understanding whether as the price is dipping it's just going to keep going lower or if it's actually going to make that next leg higher so I understand that and this is what I do to eliminate that moment of indecision and uncertainty as I'm watching the pattern developing what I am specifically looking at is the volume as it's moving higher and we'll see right here that we have high volume green candles and then what I want to see is during the pullback on the red candle that the volume is lighter what this indicates to me is that rather than seeing a huge accumulation perhaps of short sellers selling shares of the stock for a profit we're seeing light volume selling which is more akin to distribution there's a little bit of profit taking among people who are in but the total volume on that selling candle is lighter this is so important so if we look at this um example right here we'll just make it a smidge smaller and let's just say for instance that the volume on this green candle was this bar the volume on this one is this bar and then the volume on the red candles looks like this that paints a complete completely different picture of this pattern so you really can't look at this pattern in absence of volume if you don't see volume then you're not really understanding the true sentiment behind this move so what I want to see when I'm looking at this pattern is high volume on the green candles light volume on the red candles and then as we make the next leg higher I want to see volume increasing even higher so that you could actually draw a trend line here if you wanted to of seeing how volume is increasing as we move higher and higher and higher in fact I've got a great example from a trade that I got just yesterday on sngx where as the price pushed higher we can see the volume was was moving right along with it so let's pull up sngx for one second here I'm going to show you this on the F minute chart this is from yesterday and this is going to be right in this area here so this is a stock I traded yesterday and I ended up uh peaking at a just under $188,000 of profit on this uh on the day yesterday we got that first move up right and then relatively light volume pullback a little higher than I'd prefer and what's interesting here is that this breakout candle occurred on lighter volume and notice how it came all the way back down lower so higher volume on this selling candle it it sort of dips down here and then once it breaks through the new high which I didn't really expect it to do because of the high volume here but once it broke through that new high a a fresh new round of buyers came in we then had lighter volume on this selloff here and even higher volume as we made the next leg higher once we saw this volume here Peak again it just is communicating how much sentiment how much strength there is in this stock and again I'm trading stocks but you can apply this pattern to any Financial Market you can do cryptocurrency currency pairs Forex you could do Futures it it doesn't matter matter because this is a universal language and what's happening here as the price is moving up is there's so first of all there's there's a news Catalyst on this stock that was driving the momentum so we had breaking news and that breaking news is what got Traders excited in the first place so like the chicken or the egg what kind of happens first the stock spikes up or you have breaking news you have breaking news first it's it's pretty obvious in this scenario you've got breaking news and then that results in that first candle popping up but after that first candle pops up now it's up to traders to decide do we like this and is it going to go higher or is it going to roll over and that's where we watch that volume so the profile and the pattern in the volume will show us whether people are dumping the stock and shorting it heavily or we just have a little bit of profit taking but not too much we have the balance is more to the buy side when the balance is more to the buy side the price is going to keep going up because ultimately stock move as a result of an imbalance between what supply and demand so let's take just a quick moment here to talk about the type of stocks that I like to apply this pattern to this is a pattern that is fantastic and I love trading it but you will notice that all of my examples are going to be on lower price stocks you're going to see each one of these examples are on stocks between generally $2 and $20 and you're going to see some really clean examples here and of course the live trade from today are also on one of these lower PRC stocks so I have discovered that I make the most money when stocks go up at least number one 10% on the day so if a stock isn't up at least 10% I'm not going to trade it at all I've also learned that I make the most money when the stock has five times relative volume that means the volume today is five times higher than average that's the result typically of a news catalyst so having having a news catalyst is what brings in that momentum and number four I have found that I do best on stocks price between 2 and 20 and I think this is true of a lot of retail traders that lower price stocks are easier to trade because they're more affordable and because they're more affordable more people trade them if more people trade them you have higher relative volume if you have higher relative Volume Plus you have a limited level of uh Supply that's where you'll have this big imbalance so these all create or are indicative of demand and down here for Supply we have float which is the number of shares available to trade and I prefer to trade stocks with a float of under 20 million shares but there's no such thing really as a float that's too low because the lower the float the less the supply the higher the float the more the supply so it's true that when I was trading GameStop back in 2021 the float was like 40 million shares it's a little higher than my cut off but there was so much demand fueled of course by Reddit and social media that that we were able to overcome the fact that the float was a little higher but on a day-to-day basis generally I'm going to prefer stocks with lower floats so when we look at some of these examples uh this stock for instance is uh trading with a 15 million share float right here and you get that first move up light volume pullback second move up light volume pullback and then this one is where we get essentially what I would call A parabolic Move now as a beginner Trader I really want to encourage you to to learn how to be a master of just one pattern now I know that there's a tendency for a lot of beginners to try to get good at a little bit of everything you want to get good at trading off of ascending support or trading breaks of vwap or the ABCD pattern or the micro pullback or the flat top breakout we've got all these different variations The Head and Shoulders pattern but you know what to be a successful Trader this is going to sound funny you cannot be a jack of all trades a jack of all trades is a master of none you need to be a master of one if you can be a master of just one pattern think of this if you're a master of just one pattern and let's say it's the bull flag pattern right here and you look for this pattern with this pattern you become an expert at knowing your entry point the first candle to make a new high which we're going to get into more detail in a moment you get really good at knowing your max loss you get really good at understanding your profit Target so you know this pattern like the back of your hand where to get in where to get out where to sell for profit for loss Etc and you know how to find this pattern if you can find this pattern just once a day and let's say you make an average of 15 cents per share on this pattern you get in here and let's say it's $3 and you sell at 315 you do that and you're making 15 cents a day on average now you might think well with 100 shares 15 cents a day that's only 15 bucks it's not worth it but here's the exciting thing about trading increase your share size now you're talking about 150 a day increase your share size now you're talking about 15500 a day and so right now today my average winners are about 15 cents per share and I'm trading with 10,000 shares on average now you might think that I'm just making that up and so I'm going to show you just so you know beyond a shadow of a doubt that this is actually backed up by real metrics so I'm going to go here I'm going to clear out let's see I'm going to go to let's see I'm going to compare winners versus losers and when we compare winners versus losers you're going to see that over the course of oh the last nine years of trading that I have in this software right here generate report that my average winners amount to approximately 14 cents 15 cents per share right there producing a cumulative profit of $25 million so with 14 Cent average winners and $1,400 average winners rounding up just slightly you can see I'm trading with approximately $10,000 shares now my losers on this side $12 million in losses which gives me a net profit of about 12 million 13 million and you can see my average loss here is about 18 cents a share average dollar loss about $1,500 I'm a Trader who trades with a slightly negative or slightly inverted profit to loss ratio and I'm able to do that and still be a profitable Trader because of what accuracy so if you look at my accuracy what you will notice is that I'm right about 68 and a half% of the time 68.5% of the time and that's over the course of 25 26,000 trades okay so I want to encourage you to be good at just one strategy because even if you're only pulling 15 cents a share out of the market each day but you are doing that consistently that's the difference between success and failure now as always as you're learning a new strategy from me or you're learning a new strategy from anyone else I encourage you to practice these strategies in a simulator because trading is risky my results are not typical you shouldn't assume that you'll be able to hit the ground running and suddenly print $1,500 a day I've been doing this for a long time and it took me all that time to build up the track record and that creates the self-confidence to trade with 10,000 shares it doesn't happen overnight and you know what some of you guys are going to look at the trades from today and the trades from the last few days in fact in the last three days I'm up about $32,000 in gross profit $28,000 net just in three days it's a pretty it's been a pretty hot week in the market uh there's there's no doubt about that but I want you to know that although the market is hot right now and it would have been awesome if you had started learning these patterns a year ago so you could be capitalizing on today's hot Market the next best time to start learning is right now so the fact that you're digging into this type of episode you're studying and you're trying to learn about the markets that's good on you so I'm I'm happy that you're here and tuned in I hope you hit the thumbs up for this channel uh And subscribe to the channel too if you'd like so now let's go back here to this example so what I'm going to do is I'm going to back this up a little bit and I'm going to show you we're going to start at the very beginning actually we'll just go back to the very beginning and what I'm going to do is I'm going to kind of simulate what it would look like to trade this pattern in real time so the first thing that's going to happen is we're going to get a scanner alert so a scanner alert right hereo audio alert that's going to tell us that we've got a stock that's moving up and that's going to tell us a few things about the stock it's going to tell us the price it's going to tell us the float it's going to tell us the relative volume the percentage change today and it's going to give a few other data points I'm going to take this information and immediately just looking at this information I'm already going to know that the price is good the float's good the relative volume good is good and the percentage change is good because I've scripted this scanner to only look for these types of stocks so this is the software that I'm using in my trading every single day I'll put it on the screen share so you can see so we'll back this up so this is what these alerts look like right here so these are the alerts and this is the top of the scan so this morning for instance when I took uh some of my first trades these were based uh simply off of the scanner so I get a scanner alert and next you know I'm jumping right in so let's see I've got a live trade that we're going to go over here from this morning which I think you're going to really enjoy this was at about 7:51 a.m. so we're going to pull this down here let's see jump forward a little bit okay let's see so we're gonna I'm going to show you this in just a second but the way that I found this stock which we're looking at vvpr was that vvpr at that moment was the number one leading percent percentage gainer in the entire US Stock Market at that time it was up 105% priced at $523 10 million shares of volume already with a 1.31 million share float that was the level of Supply So based on and I know my video is cutting off some of that but based on um what I saw on my scanner just there I knew that this was the type of stock that I was interested in so the next step is step one so we'll just do step one step one is find the stock okay we find that using the scanners now step two chart so I'm going to do ta for technical analysis so when the stock hits the scanner it's hitting the scanner because the stock is squeezing up the reason it is like that is because this scanner is searching for stocks that are making new highs right now so each time the stock makes a a new high a new high a new high a new high a new high it actually triggers a new alert where it'll update the change of percent the volume and everything that's happened just in the last few seconds as the price is moving higher so the price continues to move higher like this which makes it very easy to find the stock finding the stock step one it's on the scanners now as it's squeezing up right here some Traders will just jump in they'll just jump in in the middle of the move and some short sellers will start shorting in the middle of the move but what I I want to train you to do is to watch this starting to move and I want you to be calm cool and Collective the stock is coming into your sights but you're not going to just Chase it you know the right place to buy you're waiting for that first pullback you're waiting for the formation of the bull flag so the bull flag forms when we get that first candle that begins to pull back and it's usually created by at least two candles of pullback so one red candle and a second red candle as we said previously we want to see if the pullback volume is lighter relative to the buying volume right so if this was these were our volume bars down here higher volume buying lighter volume selling and then what we're looking for here is the stock is made a big move up it's now pulling back just for a moment and now the question is which way is it going to go so in this moment you fall into the role of trying to predict the future and in fact the traders who predict the future future the best will be the ones who make the most money and as it turns out I'm able to predict the future with 68.5% accuracy at least as far as predicting it like 10 minutes in the future goes which is better than nothing it's $12 million better than nothing so what I do here is I check the volume profile I look at the shape of these individual Candles now let's just say for instance we had a candle right here that had a giant topping tail if you've watched my episodes on how to read Candlestick charts you would know that large topping Tails like this are weak they show weakness because what it tells us is that although the price moved up sellers brought it back down a candle is formed by Four Points the open and the close create the body and the top and the bottom of the candle wicks are created by the high and the low so open close high and low for a green candle that goes up for a red candle that goes down the open is high and the close is low but um the other two points are the same so this would for a candle going down so if I see a candle like that with a large topping tail that's going to make me a bit indecisive on taking this trade but as long as I don't see that and as long as the volume profile checks out and as long as this stock closely meets these criteria here then this probably more important than anything else is what's going to give me the confidence that this is the type of stock that has the potential to move higher now I look for the first candle to make a new high so a new high is relative to the high of the previous candle so the high of that previous candle is right there so the first candle to make a new high is breaking it's the second it breaks this point right here that is the moment of Entry that is to the penny so let's say that is $3 your entry there is $3 to the penny and let's say the low down here is $ 290 that's the low of this pullback that is your max loss now we do a simple calculation how much are you risking 10 cents per share okay so if you took a 100 shares on this you're risking $10 that's fine your profit Target should be that you can make at least what you're risking so $20 is is the first Target uh $10 is the first Target 20 is the second so 310 and then 320 330 would give us uh a 1 to 1: one 2: 1 3:1 risk reward ratio is it moves higher all right so then that's where right here we look for the next candle to push higher now as part of uh learning how to read Candlestick charts it is important to be aware of potential areas of resistance that could be created on the daily chart so when we look at the daily chart sngx for instance came up to this purple line which is the 200 exponential moving average the 200 EMA exponential and the 200 SMA simple moving average are uh two moving averages to keep a close eye on on the daily chart most stocks will experience some degree of resistance as they approach that 200 moving average uh this is a stock that was below it got way above it and that's fine let's see there was another one today that came up to it uh right here this came up to this resistance level and was not able to break it so you know it to be really good at reading one pattern and trading it profitably you do have to have some foundation in the basics of technical analysis on multiple time frames an ability to read Candlestick charts on the daily chart an ability to read and and visualize ascending and descending and horizontal resistance levels gaps and windows that form on the charts so please if you haven't already checked out some of my long form episodes where I analyze how to read Candlestick charts make sure you check those out I can link them at the end of today's episode so uh so now let's go ah ahead and actually before we jump into the live trading archive I'm going to pull up um let's see a example from my classes now these are the classes that I teach um are students at Warrior trading so let me see I want to find a good one for you here um all right so so let's just look at this for example so here we have a stock that right here is making a new high now when I say a new High I mean the stock is hitting high of day the highest price it has ever been at on today's date so as the stock is hitting the new highs that's when it's going to be triggering scanner alerts that's how it's going to come to our attention that it's moving higher and these scanners are uh used by a lot of retail Traders so this is a tool that we use to find volatility so as the stock is moving up it's hitting these scanner alerts but right here it's moving higher it's moving higher as you can see but it's not pulling back now a more seasoned Trader like myself who has more experience may feel comfortable taking a trade maybe around $4 here this could be visualized as a micro pullback then pushes higher but remember that's one of the more advanced setups and although it can work very well when you trade it well it's better to get good at trading simple setups and master that before you move on to more complex setups so we wait for that first flag which ends up forming right here and you'll see here that we have a pretty nice amount of volume on the upside 1 2 3 4 five green candles in a row so no doubt the total buying volume exceeds the selling volume that we have on these two candles although this candle is a little higher in total volume than I'd prefer fortunately the volume from the previous candles is still significantly higher and the volume does pull back on these two candles as we come into this area of pullback you'll notice that we come to this gray moving average this gray moving average is the nine exponential moving average so I use this on all my time frames 5 minute 1 minute daily I am primarily trading off of the one minute or the 5 minute chart I choose one or the other so if I'm taking a 5 minute pattern then this is a pattern forming on the five minute chart I'm using the five minute but if I see the same pattern forming on a one minute chart I'm just as happy to take it on a one minute time frame as well I I'm really I have no preference but I'll tell you that I'm Trading on the one minute more often and the live example from today will be on the one minute because when something is moving really fast usually to participate in the beginning of that move you have to be on the one minute chart okay so uh so this ends up giving us this small candle here and the low is set at about about 418 and the high of this candle is set at 424 this candle becomes what I would call a trigger the high is your entry the low is your max loss and your profit Target is a retest to the high so I'm in this at about 424 my stop is about 418 which means I'm risking 6 cents per share I've got six cents of risk my profit Target should be between 6 and 12 cents at a minimum if you're scalp trading which is taking quick profits then 6 cents is fine if you're looking for a little bit of a bigger winner 12 to 18 cents would be better 2 to 1 3 to1 and in fact on this one we've got room back up to about it looks like uh 435 so it is about 11 cents almost 2 to 1 for the first profit Target which is high of day and then once this hits a new high it's going to be back on the scanners it's hitting new scanner alerts for other traders who maybe missed this first pullback if this makes a really nice move up then it may form a second pullback here for yet again another leg higher and we often see that this is a nice example of that first leg up light volume pull back another move higher we have a bunch of examples here I'm not going to show all of them but um another nice example here nice move up light pullback and the move higher now let me play this for you I'm going to go into the slideshow so this is going to animate what it looks like uh as we're about to take this trade so the price is moving up and we're hearing scanner alerts ding ding ding ding ding ding ding ding so we pull up the stock we do our technical analysis we check the daily chart we make sure that the price is not near the 200 EMA we quickly check to see what the news catalyst is we confirm that the stock does fit within our criteria of percentage change relative volume price and float and then we're beginning to look for a possible entry so one of the things that you'll learn is that a lot of these stocks will trade with respect to half dollars and whole so this might be five this is $450 and this is four very very common that we see that so it might come up to a whole dollar such as let's say four and then pull back to around 450 maybe a little lower all right so we come down here and now right here we're beginning to base out in fact the reversal is already starting but in order to get confirmation we need the first candle to make a new high so this could be our trigger candle but if the next candle makes a new low we're not buying there's no trade here for a beginner Trader there's no trade all right so now we're waiting and what happens oops sorry there we go big green candle that's what we like to see now of course this is an animation so we're able to make it look really nice or however we want I suppose but this is what we look for that first leg up light pullback and then another move higher the reason that we're even getting this pullback in the first place is because there's no such thing as a stock that goes straight up all stocks you know even the most parabolic move in these waves right they have moments of pullback and when they're experiencing this pullback it's because some Traders are taking profit some Traders are perhaps shorting and they're just a little nervous and then as it makes the second leg up a new round of Traders are coming in and saying well I can now establish a level of risk based on the low of this last pullback that's my stop so we dipped Now we move back up as long as we hold that low I'm in good shape for a move higher and then it'll dip again as long as we hold that low once again we're in good shape for a move higher and that's how we end up trading these so light volume red candle that's great this is great this is a this is a really nice one where we have as you can see increasing volume as the price goes up that's fantastic this is bordering on what I would call parabolic parabolic is when the price starts to really kind of scream like it really starts to squeeze up very quickly now this is a good example of what to avoid so here the stock squeezes up and it hits our scanners so boom boom boom we're getting the audio alert we see the stock just went from $2 to $3 350 so it's up like 75% on the day but look at the volume the distribution of volume is predominantly on the cell side and it is kind of surprising because this is a stock that has news of a partnership with Volkswagen seems like it could be a great headline but nonetheless sellers were much stronger than buyers on this example here's another example same thing light volume buying high volume selling when you see that you're not wanting to buy the first candle to make a new high because it's just going to immediately get rejected if it even can make a new high now in both of these examples we don't actually get a candle that makes a new high oops let's see back here so we don't get a candle that makes a new high here it just sells off so there's really no entry anyways but in any case it's just helpful because it's possible that you could have a candle that does make a new high for a second and if you weren't looking at this volume well you could get trapped now one of the things that I also try to uh always follow as a rule of thumb is that the pullback should not be more than 25% of this initial move so if this goes you know from a dollar to $2 it can pull back to $1.75 but I don't want to see it pull back more than that 50% is a hard cut if it goes back more than 50% we're now tipping to the downside but I prefer to be consolidating in the top 20% 25% for this pattern so that's the top 25% of the range of that last leg this is another example of higher volume selling right here so in this example here we've got that nice move up and then this pullback is definitely in the top of this range right here okay so the 50% mark would be like down here it's holding at the 70% Mark that's fine that's a good spot to be considering an entry right in this area the volume profile is also supporting high volume buying light volume selling and this is a stock that went from $ 350 to nearly $10 a share so this is a huge percentage move I mean there's there's no question that this is the type of stock that you C could do potentially very well on and you don't need to trade every single pattern that appears you can get to that point in time but just to begin just to get started proof of concept is can you get good at one pattern if you can get good at one pattern you know that's enough to I I suppose uh survive until you can Thrive just to kind of keep your head above water okay so let's back out of this for one second and I'm going to pull up the live trading archive from today and I'm going to show you this bull flag which I traded so so as we saw today I ended up trading a number of different stocks uh the one that I made the most on was LGB I'll show you some trades on that also had some trades on GX Nas atns vbpr and then my Biggest Loser was VPX and sadly that was my last trade of the day so I was up about just under 15,000 had that final trade and I said all right you know what it's time to walk away so that was my last trade of the day but at the beginning of the day when this recording um takes place uh I was trading vvpr so vvpr as you can see right here has um just made a pretty nice move to the upside so let's see the current time is about 750 yeah so um okay so so what we have here is we had this pop right here so we had this little move here and let's see I'm trying to remember might have to jump forward just a smidge okay so we end up squeezing higher right so right now this stock is squeezing up we've got 1 2 3 four five green candles in a row now now I'm looking at this for potential break through 550 that's the level that I'm watching and in fact although this is a um a bull flag that's forming right here on the one minute on the five minute the flag has already started to break out it's a little hard to tell but it's already started to break out so we we actually have what we would call multi-timeframe alignment multi-timeframe alignment is when you have both a one minute time frame and a 5 minute time frame both giving you the same signal which in this case is to buy so I'll just kind of show you what that could look like here for a second let me pause this real quick uh so you can see I took a starter here but we'll um I'm in 5,000 shares so far but we'll we'll we'll come back to that in just a second so let's look at multi-time Frame Alignment and we'll do it we'll do it right here uh we'll do it on this side actually okay so on multi-time Frame Alignment what we have happening on this chart here is uh we already had a the five minute marker is getting a little weak we already had the five minute that made that gave us a bull flag pattern right here pulled back pulled back and has begun to resolve right here all right so sorry I'm going to just do this in blue just because my uh that marker just is dying so the the blue is uh for candles going up okay so we just had this candle begin to move up here and this is the five minute chart so so that's the 5 minute now in the one minute what we're seeing if we zoom into these two candles is we had basically a little bit of a dip here and then we have five green candles in a row one two 3 four five so I'm looking for a bull flag right here where we get this dip and then we squeeze up here and move higher and so this is occurring in inside this candle and that's okay this is a strong 5minute bull flag pattern that is currently breaking out and Traders who focus on the bull flag on the five minute are still holding so and they may even be adding traders who focus on the one minute are looking at this pattern and saying this looks good and the five minute is reaffirming the pattern so this is something that I definitely want to focus on okay so now let's go back here so what I end up doing on this this is going to be an example where the trade as I I execute the bull flag a little differently here from how a beginner should execute it and I'm going to kind of differentiate what's different about the way I execute the trade versus what a beginner should do so a beginner is going to see the stock squeezing up and is going to wait for confirmation now I have a track record that creates intuition and my intuition at times will tell me not to wait for confirmation but to get in early getting in early means you're going to have lower accuracy because you don't have confirmation confirmation comes in the form of the first candle actually making a new high that's confirmation right there but I'm going to pay a price of $3 a share for confirmation if I get in down at 292 I don't have confirmation but I'm getting in at a lower price so if I end up being right I'll make a little bit more money for taking that higher risk and if I'm wrong well I'll stop out and take a loss so my accuracy is going to be lower when I take higher risk trades but when they work the rewards can also be greater so what I end up doing on this is I see the stock has just given us this nice move higher we've got four green candles in a row and unfortunately we have a little bit of a topping tail pattern right there which I don't love but because the stock is our number one leading percentage Gainer it has so much volume I really think that it's going to go through 550 and work so as it starts to pull back it drops about 10 cents off the high about 15 cents from a high of 545 down to about 528 and I take a starter of 2500 shares at 529 so what I'm doing here is I'm actually accumulating on this pullback I'm buying a starter position it goes a little lower and I double adding at 527 so now as it comes a bit bit lower I'm thinking that my stop on this generally is going to be about well 15 cents my profit Target is 15 cents that's a 1:1 ratio so 15 cents is kind of my stop on this which means I'm going to have to get out if this drops down to like about $512 but right now as it's sitting right now although I'm slightly red on the stock I'm okay with holding because it hasn't hit my Max loss and I'm still waiting for that first one minute candle to make a new high which would be the proper resolution of the bull flag I'm just in early okay so we have a low right here of about 522 we can see the price and this is the level two window so this is actually showing us um the market depth is showing the buyers on the left the sellers on the right we are seeing that there's more sellers on this right now at the moment so I have put my hand over the buy button I'm kind of you know I'm sort of like all right how am I going to manage this I'm I'm down 500 bucks on it I'm starting to get close to thinking I made the wrong decision and I'm going to have to stop out we now have our second red candle forming but let's pause this for a second and observe the volume so what do we note about the volume high volume on the move up light volume on the move down okay now what we also notice right down here is that this is forming a little bit of a bottoming tail a bottoming tail occurs when the price sells off and then comes right back up so a bottoming tail tail is actually a bullish pattern I like to see bottoming Tails so I'm totally okay with seeing a bottoming tail now the candle hasn't closed yet but we'll see what happens so I've now added a little bit more to my position and my average is $527 okay let's pause this for a second all right so we're going to pause this here so right now you can see we're getting very close to getting confirmation confirmation will be the second this green candle break the high of the previous candle now I'd have to put my mouse over that candle to see what the actual price is but I'm going to guess it's about 30 it's about $55.30 so I'm in at 527 I'm in 3 cents early 3 cents early um I don't know if it was really worth it to take an early entry on this for three cents um but in any case I'm in at a 3C Better Price than a Trader who's following this pattern and paying for conf so paying for confirmation means you're waiting for that first candle to make a new high so I end up putting an order out at 35 which is just under 10 cents of profit for uh 3/4 of the position thinking that if it pops back up I'll probably want to unwind a little bit of it because I wasn't expecting it to dip down as much as it did now as you see here it immediately goes up to 540 and now we're getting that confirmation and we're breaking through the high and we see volume coming back in right so this is the pattern pattern that so many Traders are watching this pattern would have worked just as well if ID waited and gotten in at 530 and then sold at 535 or 540 I'm still holding a piece here average right now is $527 and we're at 560 on the offer 557 on the offer right so this ends up being a pretty decent trade now as always when you when you first take a trade like this you do carry the risk that you could get stopped out so you have to know what your max loss is before you take the trade how much are you willing to lose by understanding that you're going to be in a better position and that's one of the reasons I don't encourage a beginner Trader to try to anticipate a trade by getting in early because you haven't had the low set it's still actively making new lows which means your stop becomes a little bit arbitrary and that's harder for beginners to enforce because it's not black and white it's a lot easier when it can just be black and white very simple as long as it stays Above This level I'm going to hold if it breaks it I'm going to sell so for a beginner Trader this pattern is an entry at the first candle that makes a new high with a stop at the low profit targets is a squeeze through the high for a more advanced Trader you may decide to start to anticipate that this is going to happen by getting in while other people are selling but again your accuracy is going to be lower most likely than waiting for confirmation because there will be a number of times where you get in down here it just keeps going lower and so then you look back at that chart and you're like I bought right here and then it just kept going lower and lower and lower and lower why did I buy there well you were trying to anticipate that first candle making new high I get it but you know just be aware that your accuracy won't be as good as someone who's waiting for confirmation and most beginner Traders can't afford to have any they can't afford to have poor accuracy because you're already dealing with the fact that you haven't yet built your your own sort of degree of educated intuition that can guide you about when to get in when to get out so for most beginners you really have to kind of follow um the more hard set rule of the strategy and that's fine that's look that's that's where you start and that's where I started too and then once you get some conviction and confidence you can start to get you know a little bit more aggressive so back to this uh trade here so the reason I put the order the sale order out at 536 or so 537 there was two reasons number one uh I was only up $1,000 on the day at the time that I took this trade so I was beginning to realize that this trade had the potential if it dropped down here to 15 to put me back to break even on the day and I was starting to think that I need to be a little bit more defensive and protect the gains that I have and not not do that until I've got a little bit of a bigger cushion on the day now at this point right now with a much bigger cushion on the day I probably wouldn't would have put that profit Target out if I took the trade right now I would just hold it set my stop and if it works then that's great and if it doesn't work I would take the loss but because it was a little earlier in the day and you know when I first took that dip I kind of thought it was going to bounce right back up to 550 I thought like instantly we were going to go back to 550 so the fact that it hesitated just a little longer that also made me a little cautious so anyways I you know I put out the profit Target I just kind of I just put it out there real quick I just sort of threw the order out there and sent it and anyways my my shares got picked up it ends up uh you know I don't know if a market maker saw my shares and wanted them or how that worked exactly but my shares were up there at 35 ended up getting picked up and that pulled that took some risk off the table for me and then I was able to hold the rest as it squeezed higher so let's watch what happens at that first candle to make a new high now by the way when I'm trading I'm live streaming so although I'm giving the uh my commentary and saying why I like the setup everyone can also see that I'm already in they they're not waiting for that first cand to make a new high necessarily they see that I'm already in at 527 and I add it at 524 I'm saying it and my p&l is is streaming so by the way those of you guys that would like to check out a two-e trial and trade side by side with me and during the two-e trial use our platform day trade Dash which has the scanners the charts the news feed my chat room my broadcast everything else by all means check it out there's a link for the twoe trial that'll be posted in the top of the comments and it'll be linked in the description for you guys I also have um some links to uh PDFs that you guys can download if you want to download a collection of my PDFs on the micro pullback strategy and also my small account uh trading strategy you can download those you can print them out and you can use use them as a resource as your developing your own strategy or you know what I would challenge you to do is try trading my strategy as I've laid it out with the rules and everything in a simulator for 3 weeks for a month just to see where it gets you because what you'll be doing is you'll be learning a strategy that is currently being traded by me successfully is that a guarantee it's going to work for you no it's not it's not a guarantee because I don't know your personal skill set I don't know if you'll have the discipline to follow the rules but I think it's a good starting point right start with a set of rules that someone else is using and is actually working for them and if you're curious at uh my audited broker statements those are over on the website sometimes people are uh curious about how much I have really made trading and that's on the website so it's over uh $10 million of verified gains as of the last audited statement which was December uh 31st okay so anyways um so now we're going to watch what's going to happen here at 5:30 okay so at 5:30 what ends up happening is just all of a sudden it breaks that level and basically in an instance we're 530 on the offer right here 531 533 and it goes right to 540 and I was kind of honestly I was like wait did I did my shares just get picked up like I wasn't expecting that I I I didn't expect it to go instantaneously like that they were just gone so then all of a sudden it's 540 on the offer and I'm like well okay but there's a 5,000 share seller there so I put 1,300 shares on the ask to sell into strength so by the way when my orders are selling they're going to be green on the tape and the reason my sell orders are green on the tape is because I'm selling at the ask if you sell at the ask then you have to wait for someone to come and buy your shares and when they initiate the transaction their order is green showing a buy and you're the seller but they're the initiator of the transaction so the order is green on the tape green on the tape is bullish so now there's more green on the tape and I throw some more shares on the ask and I take a little more profit and I'm thinking golly this is good so there's an order at 59 and you can see here even though it's only 688 shares I'm getting a partial fill 479 shares have filled of this order and the rest I'm I'm waiting so I just wait and then it dips down so my order still sits there and I could either cancel it or wait for the price to come back up now the thing that's a little Annoying here is the way orders that are sitting on the offer um finally so there I get I got picked up the way your order can kind of get bumped off the top of the queue so there's a Quee of orders but it seems that market makers always find a way to push your order to the back of the line and that means you don't really get filled at 59 until the price goes to 60 so if you have a 1-cent spread then just selling on the bid is I mean I'll do that but when you have a bigger spread like this 3 cents 4 cents selling on the offer will give me the best price so that ends up being um a nice winner there I'm now up $1,931 and that was pretty impressive now what I want to do is I want to jump forward and show you um LG VN so all of a sudden LG VN um this kind of like out of nowhere I'm sitting at $3,700 of profit on the day and LG VN is consolidating here to around $420 Now LG VN is up uh 42% on the day the float is 3.88 million shares the price is fine it's got the 200 moving average up around $8 so it's got a good amount of room here on the daily and I started thinking all right you know I'm going to I'm going to be actively trading it I noticed on the bid 20,000 share buyer down there at uh 410 so you start seeing some bigger buyers coming out it also came to my attention that the short interest on this was really high something like 65% so I'm thinking all right we've got high short interest we're seeing some big buy orders you know let's see let's see what this thing wants to do and in this area here I kind of break away from the standard um trading of just the pullbacks to kind of pulling out all the stops using all the different strategies that I have to capitalize on what ends up being a really nice move to the upside so I'm going to fast forward this um so we're coming up here to about 425 so you see that burst of volume up to 4 25 so we've got 425 426 on the offer 427 428 435 okay so now we're starting to move a little faster we're up 50% on the day the next logical Target on this is 450 the psychological resistance of the half dollar so I end up putting an order at about 451 and I'm looking to take a trade right up here for the break of the half dollar now what sometimes happens on these when I do a breakout trade like this this isn't waiting for a pullback this is buying kind of in the middle of a move so I got in right here at 46 I'm looking for the break of 50 but I'm noticing that there's a seller at 50 is it going to break it thins out and then it doesn't break new orders at 69 there we go now we broke so added and it almost my computer almost kind of like stalled out for a second so I added here at 61 my new average is 54 and now I'm putting profit targets out at 75 contrl p is profit Target and I put profit targets out from time to time on stocks like this so I'll put out a profit Target I'll let my shares get picked up and then I'll look for the next dip to get back in the entry on here initially is at the half dollar so buying at450 and then adding at 65 and looking to break 7585 next profit Target looking for a squeeze straight up to $5 a share so this comes back to that concept that I mentioned um a little bit earlier about how a lot of these stocks trade with a great deal of respect for half dollars and whole dollars so 450 five 5506 and so what you're going to see here is as this moves higher the next level of resistance is $6 right so we're looking for that squeeze up to six so right now we've got five 85 on the offer 590 593 but we're starting to find a little resistance up here around sorry 493 up around five right that's very common so I end up taking a little bit of profit so we get this squeeze here from 450 450 this one's really gone all right 450 we get the squeeze here from 450 up to five and now just for a moment we're getting a little pullback so we end up getting this drop right here where we we all of a sudden flush down which is a higher volume selling candle and I think all of us were a little like what just happened that was a high volume selling candle and I think what happened there ultimately was that we had a rejection off of five and there was someone that just sold a big a big chunk of shares so in this case we have a higher volume selling candle we get that drop but clearly the stock is strong so we pull it back up and all of a sudden here we go we're back through five now we're at 505 and I'm just going to actively trade this if this can hold over $5 $5 is psychological support so now what we're doing essentially is trading variations of momentum patterns bull Flags micro pullbacks and we're trading them around these levels half dollar and whole dollar so we end up ripping back up here and then dipping down for a moment can we hold five if we can hold five then boom I'm looking for a trade up to Next Level 550 so now let's look at this for the trade up to 550 we get up towards 550 and then we're going to look for a squeeze to six and as you as you watch this thing we're so right here now we're pulling away up to 524 so coming up to a little bit of resistance here we're right around 530 and this is beginning to give us um in a sense a little bit potentially of a bull flag you've got three candles green we're having a little bit of a pullback right here and let's watch what happens out of this range we're going to look for the squeeze through 550 we want to catch that breakthrough psychological resistance so I've got my order here at 558 2500 shares ready to add so I'm all flat now I'm up 6,600 on the stock and here we go adding starter looking for the break through the high in at 41 M now it dips down a little bit maybe I'm a little early we got that first candle to make a new high but the only problem is we only had one candle pullback so it's not a lot of pullback and we're very topheavy up here so I end up taking the loss I stop out I was in at 41 I'm out at 36 I lost 5 cents on that trade but I'm ready to get back in if we can you know here we go and I'm adding back at 49 I'm looking for that break through the half dollar again is it going to break adding at 50 there's 55 now watching 6570 this is the same exact thing I just did at 450 and 460 so now I've scaled in and I'm looking for the squeeze through 575 there's 577 578 so let's Zoom this forward now we've got 585 580 now we're at six we broke over six so micro pull back there and it pushes higher now we're up 115% I'm up 9,000 on the day now we're at seven okay so now we're going parabolic this thing is really pulling away fast let's back that up so we can see the squeeze to seven so what ends up happening here is right over 625 it breaks goes to 648 650 655 pulls back for a second 640 right here and now we're looking for the squeeze to seven I add 55 average looking for the break of seven we've got 690 on the offer we know we're going to have a little resistance probably around 7 so I take a little profit there at 72 but ends up going higher I mean this thing ended up being incredibly strong it goes up it's up 144% so the way I trade this essentially is I'm trading this same pattern but instead of trading it on a five minute chart instead trading it on a one minute chart I'm trading it on a 10-second chart I'm Trading micro versions of this pullback so that PDF that's Linked In the description that's my micro pullback strategy PDF it's a it's a high-speed variation of trading bull Flags but the philosophy and the theory behind it is the same you've got something that's really strong that's moving up quickly has a momentary pullback and then next leg up momentary pullback next leg up so this is this is the basis of momentum trading this is what I do every single day this is what I love I've been trading for more than a decade and listen if you found this episode interesting I hope you hit that thumbs up I hope you subscribe to the channel and I hope you do a two-e trial and really give it a give it a try watch over my shoulder for a couple weeks and see what it's like to be part of the warrior trading community so as you can see here end up being up 12,000 on this stock I don't stop there I got myself up to about 14,000 on the day before finally giving back a little profit before the end of the day and it's always important to remind yourself that every day you're doing one of two things you're giving back profit or you're leaving money on the table so I don't mind giving back a little profit and pushing it in a hot Market but if I give back too much I got to take my queue walk away and make sure I'm at least leaving with some good money in my pocket so today another solid Green Day up just under $10,000 right here 10, 94813 that's a good day and I'll be back at it trading bright and early tomorrow morning and I hope to see some of you guys in the chat room in the community for the trial okay I'll see you then thanks as always for tuning in and don't forget to hit that Thumbs Up And subscribe to the channel

in today&#39;s episode I&#39;m going to teach you how I trade the bull flag pattern with confidence and consistency this is the example of the pattern right here where we see a Quick Squeeze up in the price followed by a momentary pullback and then another leg higher now we&#39;re going to use my trades from today as a case study you can see that I&#39;m Up 9,481 3 today trading bull Flags in addition to several other patterns that are based on trading the trend trading momentum now there are two reasons that I love teaching the bull flag pattern to beginner Traders the first is that this is a pattern that is very easy to spot on charts it&#39;s very easy to find it using stock scanners now if you trade cryptocurrency or you&#39;re trading the Futures Market you can also use scanners to find this pattern there so once you get really good at recognizing this pattern it&#39;s almost impossible to miss it it just stands out so well now the second reason I love it for beginners is because this patter pattern includes three very important prices as part of its construction there&#39;s a very obvious entry price there&#39;s a very obvious Max loss and there&#39;s a very obvious profit Target because these three points are part of the construction of the pattern it really eliminates the margin of error for a beginner Trader it&#39;s not up for negotiation what the correct entry point is it is part of the pattern the low is your max loss your first candle to make a new high is your entry and your profit Target is a retest of the high of day for the first Target and then second target is that we get continuation higher so now that you understand the basic anatomy of the bull flag let&#39;s go ahead and jump into the slide deck now this is a pattern that I do teach to beginner Traders at Warrior trading and so some of these slides are an excerpt from my classes that are part of the warrior Pro curriculum this is a great example right here of this bull flag pattern where we&#39;ve got a Quick Squeeze up a momentary pullback and then that first candle makes a new high now some uh something that I hear a lot of Traders say when they look at this pattern is they&#39;ll say Ross I have a hard time understanding whether as the price is dipping it&#39;s just going to keep going lower or if it&#39;s actually going to make that next leg higher so I understand that and this is what I do to eliminate that moment of indecision and uncertainty as I&#39;m watching the pattern developing what I am specifically looking at is the volume as it&#39;s moving higher and we&#39;ll see right here that we have high volume green candles and then what I want to see is during the pullback on the red candle that the volume is lighter what this indicates to me is that rather than seeing a huge accumulation perhaps of short sellers selling shares of the stock for a profit we&#39;re seeing light volume selling which is more akin to distribution there&#39;s a little bit of profit taking among people who are in but the total volume on that selling candle is lighter this is so important so if we look at this um example right here we&#39;ll just make it a smidge smaller and let&#39;s just say for instance that the volume on this green candle was this bar the volume on this one is this bar and then the volume on the red candles looks like this that paints a complete completely different picture of this pattern so you really can&#39;t look at this pattern in absence of volume if you don&#39;t see volume then you&#39;re not really understanding the true sentiment behind this move so what I want to see when I&#39;m looking at this pattern is high volume on the green candles light volume on the red candles and then as we make the next leg higher I want to see volume increasing even higher so that you could actually draw a trend line here if you wanted to of seeing how volume is increasing as we move higher and higher and higher in fact I&#39;ve got a great example from a trade that I got just yesterday on sngx where as the price pushed higher we can see the volume was was moving right along with it so let&#39;s pull up sngx for one second here I&#39;m going to show you this on the F minute chart this is from yesterday and this is going to be right in this area here so this is a stock I traded yesterday and I ended up uh peaking at a just under $188,000 of profit on this uh on the day yesterday we got that first move up right and then relatively light volume pullback a little higher than I&#39;d prefer and what&#39;s interesting here is that this breakout candle occurred on lighter volume and notice how it came all the way back down lower so higher volume on this selling candle it it sort of dips down here and then once it breaks through the new high which I didn&#39;t really expect it to do because of the high volume here but once it broke through that new high a a fresh new round of buyers came in we then had lighter volume on this selloff here and even higher volume as we made the next leg higher once we saw this volume here Peak again it just is communicating how much sentiment how much strength there is in this stock and again I&#39;m trading stocks but you can apply this pattern to any Financial Market you can do cryptocurrency currency pairs Forex you could do Futures it it doesn&#39;t matter matter because this is a universal language and what&#39;s happening here as the price is moving up is there&#39;s so first of all there&#39;s there&#39;s a news Catalyst on this stock that was driving the momentum so we had breaking news and that breaking news is what got Traders excited in the first place so like the chicken or the egg what kind of happens first the stock spikes up or you have breaking news you have breaking news first it&#39;s it&#39;s pretty obvious in this scenario you&#39;ve got breaking news and then that results in that first candle popping up but after that first candle pops up now it&#39;s up to traders to decide do we like this and is it going to go higher or is it going to roll over and that&#39;s where we watch that volume so the profile and the pattern in the volume will show us whether people are dumping the stock and shorting it heavily or we just have a little bit of profit taking but not too much we have the balance is more to the buy side when the balance is more to the buy side the price is going to keep going up because ultimately stock move as a result of an imbalance between what supply and demand so let&#39;s take just a quick moment here to talk about the type of stocks that I like to apply this pattern to this is a pattern that is fantastic and I love trading it but you will notice that all of my examples are going to be on lower price stocks you&#39;re going to see each one of these examples are on stocks between generally $2 and $20 and you&#39;re going to see some really clean examples here and of course the live trade from today are also on one of these lower PRC stocks so I have discovered that I make the most money when stocks go up at least number one 10% on the day so if a stock isn&#39;t up at least 10% I&#39;m not going to trade it at all I&#39;ve also learned that I make the most money when the stock has five times relative volume that means the volume today is five times higher than average that&#39;s the result typically of a news catalyst so having having a news catalyst is what brings in that momentum and number four I have found that I do best on stocks price between 2 and 20 and I think this is true of a lot of retail traders that lower price stocks are easier to trade because they&#39;re more affordable and because they&#39;re more affordable more people trade them if more people trade them you have higher relative volume if you have higher relative Volume Plus you have a limited level of uh Supply that&#39;s where you&#39;ll have this big imbalance so these all create or are indicative of demand and down here for Supply we have float which is the number of shares available to trade and I prefer to trade stocks with a float of under 20 million shares but there&#39;s no such thing really as a float that&#39;s too low because the lower the float the less the supply the higher the float the more the supply so it&#39;s true that when I was trading GameStop back in 2021 the float was like 40 million shares it&#39;s a little higher than my cut off but there was so much demand fueled of course by Reddit and social media that that we were able to overcome the fact that the float was a little higher but on a day-to-day basis generally I&#39;m going to prefer stocks with lower floats so when we look at some of these examples uh this stock for instance is uh trading with a 15 million share float right here and you get that first move up light volume pullback second move up light volume pullback and then this one is where we get essentially what I would call A parabolic Move now as a beginner Trader I really want to encourage you to to learn how to be a master of just one pattern now I know that there&#39;s a tendency for a lot of beginners to try to get good at a little bit of everything you want to get good at trading off of ascending support or trading breaks of vwap or the ABCD pattern or the micro pullback or the flat top breakout we&#39;ve got all these different variations The Head and Shoulders pattern but you know what to be a successful Trader this is going to sound funny you cannot be a jack of all trades a jack of all trades is a master of none you need to be a master of one if you can be a master of just one pattern think of this if you&#39;re a master of just one pattern and let&#39;s say it&#39;s the bull flag pattern right here and you look for this pattern with this pattern you become an expert at knowing your entry point the first candle to make a new high which we&#39;re going to get into more detail in a moment you get really good at knowing your max loss you get really good at understanding your profit Target so you know this pattern like the back of your hand where to get in where to get out where to sell for profit for loss Etc and you know how to find this pattern if you can find this pattern just once a day and let&#39;s say you make an average of 15 cents per share on this pattern you get in here and let&#39;s say it&#39;s $3 and you sell at 315 you do that and you&#39;re making 15 cents a day on average now you might think well with 100 shares 15 cents a day that&#39;s only 15 bucks it&#39;s not worth it but here&#39;s the exciting thing about trading increase your share size now you&#39;re talking about 150 a day increase your share size now you&#39;re talking about 15500 a day and so right now today my average winners are about 15 cents per share and I&#39;m trading with 10,000 shares on average now you might think that I&#39;m just making that up and so I&#39;m going to show you just so you know beyond a shadow of a doubt that this is actually backed up by real metrics so I&#39;m going to go here I&#39;m going to clear out let&#39;s see I&#39;m going to go to let&#39;s see I&#39;m going to compare winners versus losers and when we compare winners versus losers you&#39;re going to see that over the course of oh the last nine years of trading that I have in this software right here generate report that my average winners amount to approximately 14 cents 15 cents per share right there producing a cumulative profit of $25 million so with 14 Cent average winners and $1,400 average winners rounding up just slightly you can see I&#39;m trading with approximately $10,000 shares now my losers on this side $12 million in losses which gives me a net profit of about 12 million 13 million and you can see my average loss here is about 18 cents a share average dollar loss about $1,500 I&#39;m a Trader who trades with a slightly negative or slightly inverted profit to loss ratio and I&#39;m able to do that and still be a profitable Trader because of what accuracy so if you look at my accuracy what you will notice is that I&#39;m right about 68 and a half% of the time 68.5% of the time and that&#39;s over the course of 25 26,000 trades okay so I want to encourage you to be good at just one strategy because even if you&#39;re only pulling 15 cents a share out of the market each day but you are doing that consistently that&#39;s the difference between success and failure now as always as you&#39;re learning a new strategy from me or you&#39;re learning a new strategy from anyone else I encourage you to practice these strategies in a simulator because trading is risky my results are not typical you shouldn&#39;t assume that you&#39;ll be able to hit the ground running and suddenly print $1,500 a day I&#39;ve been doing this for a long time and it took me all that time to build up the track record and that creates the self-confidence to trade with 10,000 shares it doesn&#39;t happen overnight and you know what some of you guys are going to look at the trades from today and the trades from the last few days in fact in the last three days I&#39;m up about $32,000 in gross profit $28,000 net just in three days it&#39;s a pretty it&#39;s been a pretty hot week in the market uh there&#39;s there&#39;s no doubt about that but I want you to know that although the market is hot right now and it would have been awesome if you had started learning these patterns a year ago so you could be capitalizing on today&#39;s hot Market the next best time to start learning is right now so the fact that you&#39;re digging into this type of episode you&#39;re studying and you&#39;re trying to learn about the markets that&#39;s good on you so I&#39;m I&#39;m happy that you&#39;re here and tuned in I hope you hit the thumbs up for this channel uh And subscribe to the channel too if you&#39;d like so now let&#39;s go back here to this example so what I&#39;m going to do is I&#39;m going to back this up a little bit and I&#39;m going to show you we&#39;re going to start at the very beginning actually we&#39;ll just go back to the very beginning and what I&#39;m going to do is I&#39;m going to kind of simulate what it would look like to trade this pattern in real time so the first thing that&#39;s going to happen is we&#39;re going to get a scanner alert so a scanner alert right hereo audio alert that&#39;s going to tell us that we&#39;ve got a stock that&#39;s moving up and that&#39;s going to tell us a few things about the stock it&#39;s going to tell us the price it&#39;s going to tell us the float it&#39;s going to tell us the relative volume the percentage change today and it&#39;s going to give a few other data points I&#39;m going to take this information and immediately just looking at this information I&#39;m already going to know that the price is good the float&#39;s good the relative volume good is good and the percentage change is good because I&#39;ve scripted this scanner to only look for these types of stocks so this is the software that I&#39;m using in my trading every single day I&#39;ll put it on the screen share so you can see so we&#39;ll back this up so this is what these alerts look like right here so these are the alerts and this is the top of the scan so this morning for instance when I took uh some of my first trades these were based uh simply off of the scanner so I get a scanner alert and next you know I&#39;m jumping right in so let&#39;s see I&#39;ve got a live trade that we&#39;re going to go over here from this morning which I think you&#39;re going to really enjoy this was at about 7:51 a.m. so we&#39;re going to pull this down here let&#39;s see jump forward a little bit okay let&#39;s see so we&#39;re gonna I&#39;m going to show you this in just a second but the way that I found this stock which we&#39;re looking at vvpr was that vvpr at that moment was the number one leading percent percentage gainer in the entire US Stock Market at that time it was up 105% priced at $523 10 million shares of volume already with a 1.31 million share float that was the level of Supply So based on and I know my video is cutting off some of that but based on um what I saw on my scanner just there I knew that this was the type of stock that I was interested in so the next step is step one so we&#39;ll just do step one step one is find the stock okay we find that using the scanners now step two chart so I&#39;m going to do ta for technical analysis so when the stock hits the scanner it&#39;s hitting the scanner because the stock is squeezing up the reason it is like that is because this scanner is searching for stocks that are making new highs right now so each time the stock makes a a new high a new high a new high a new high a new high it actually triggers a new alert where it&#39;ll update the change of percent the volume and everything that&#39;s happened just in the last few seconds as the price is moving higher so the price continues to move higher like this which makes it very easy to find the stock finding the stock step one it&#39;s on the scanners now as it&#39;s squeezing up right here some Traders will just jump in they&#39;ll just jump in in the middle of the move and some short sellers will start shorting in the middle of the move but what I I want to train you to do is to watch this starting to move and I want you to be calm cool and Collective the stock is coming into your sights but you&#39;re not going to just Chase it you know the right place to buy you&#39;re waiting for that first pullback you&#39;re waiting for the formation of the bull flag so the bull flag forms when we get that first candle that begins to pull back and it&#39;s usually created by at least two candles of pullback so one red candle and a second red candle as we said previously we want to see if the pullback volume is lighter relative to the buying volume right so if this was these were our volume bars down here higher volume buying lighter volume selling and then what we&#39;re looking for here is the stock is made a big move up it&#39;s now pulling back just for a moment and now the question is which way is it going to go so in this moment you fall into the role of trying to predict the future and in fact the traders who predict the future future the best will be the ones who make the most money and as it turns out I&#39;m able to predict the future with 68.5% accuracy at least as far as predicting it like 10 minutes in the future goes which is better than nothing it&#39;s $12 million better than nothing so what I do here is I check the volume profile I look at the shape of these individual Candles now let&#39;s just say for instance we had a candle right here that had a giant topping tail if you&#39;ve watched my episodes on how to read Candlestick charts you would know that large topping Tails like this are weak they show weakness because what it tells us is that although the price moved up sellers brought it back down a candle is formed by Four Points the open and the close create the body and the top and the bottom of the candle wicks are created by the high and the low so open close high and low for a green candle that goes up for a red candle that goes down the open is high and the close is low but um the other two points are the same so this would for a candle going down so if I see a candle like that with a large topping tail that&#39;s going to make me a bit indecisive on taking this trade but as long as I don&#39;t see that and as long as the volume profile checks out and as long as this stock closely meets these criteria here then this probably more important than anything else is what&#39;s going to give me the confidence that this is the type of stock that has the potential to move higher now I look for the first candle to make a new high so a new high is relative to the high of the previous candle so the high of that previous candle is right there so the first candle to make a new high is breaking it&#39;s the second it breaks this point right here that is the moment of Entry that is to the penny so let&#39;s say that is $3 your entry there is $3 to the penny and let&#39;s say the low down here is $ 290 that&#39;s the low of this pullback that is your max loss now we do a simple calculation how much are you risking 10 cents per share okay so if you took a 100 shares on this you&#39;re risking $10 that&#39;s fine your profit Target should be that you can make at least what you&#39;re risking so $20 is is the first Target uh $10 is the first Target 20 is the second so 310 and then 320 330 would give us uh a 1 to 1: one 2: 1 3:1 risk reward ratio is it moves higher all right so then that&#39;s where right here we look for the next candle to push higher now as part of uh learning how to read Candlestick charts it is important to be aware of potential areas of resistance that could be created on the daily chart so when we look at the daily chart sngx for instance came up to this purple line which is the 200 exponential moving average the 200 EMA exponential and the 200 SMA simple moving average are uh two moving averages to keep a close eye on on the daily chart most stocks will experience some degree of resistance as they approach that 200 moving average uh this is a stock that was below it got way above it and that&#39;s fine let&#39;s see there was another one today that came up to it uh right here this came up to this resistance level and was not able to break it so you know it to be really good at reading one pattern and trading it profitably you do have to have some foundation in the basics of technical analysis on multiple time frames an ability to read Candlestick charts on the daily chart an ability to read and and visualize ascending and descending and horizontal resistance levels gaps and windows that form on the charts so please if you haven&#39;t already checked out some of my long form episodes where I analyze how to read Candlestick charts make sure you check those out I can link them at the end of today&#39;s episode so uh so now let&#39;s go ah ahead and actually before we jump into the live trading archive I&#39;m going to pull up um let&#39;s see a example from my classes now these are the classes that I teach um are students at Warrior trading so let me see I want to find a good one for you here um all right so so let&#39;s just look at this for example so here we have a stock that right here is making a new high now when I say a new High I mean the stock is hitting high of day the highest price it has ever been at on today&#39;s date so as the stock is hitting the new highs that&#39;s when it&#39;s going to be triggering scanner alerts that&#39;s how it&#39;s going to come to our attention that it&#39;s moving higher and these scanners are uh used by a lot of retail Traders so this is a tool that we use to find volatility so as the stock is moving up it&#39;s hitting these scanner alerts but right here it&#39;s moving higher it&#39;s moving higher as you can see but it&#39;s not pulling back now a more seasoned Trader like myself who has more experience may feel comfortable taking a trade maybe around $4 here this could be visualized as a micro pullback then pushes higher but remember that&#39;s one of the more advanced setups and although it can work very well when you trade it well it&#39;s better to get good at trading simple setups and master that before you move on to more complex setups so we wait for that first flag which ends up forming right here and you&#39;ll see here that we have a pretty nice amount of volume on the upside 1 2 3 4 five green candles in a row so no doubt the total buying volume exceeds the selling volume that we have on these two candles although this candle is a little higher in total volume than I&#39;d prefer fortunately the volume from the previous candles is still significantly higher and the volume does pull back on these two candles as we come into this area of pullback you&#39;ll notice that we come to this gray moving average this gray moving average is the nine exponential moving average so I use this on all my time frames 5 minute 1 minute daily I am primarily trading off of the one minute or the 5 minute chart I choose one or the other so if I&#39;m taking a 5 minute pattern then this is a pattern forming on the five minute chart I&#39;m using the five minute but if I see the same pattern forming on a one minute chart I&#39;m just as happy to take it on a one minute time frame as well I I&#39;m really I have no preference but I&#39;ll tell you that I&#39;m Trading on the one minute more often and the live example from today will be on the one minute because when something is moving really fast usually to participate in the beginning of that move you have to be on the one minute chart okay so uh so this ends up giving us this small candle here and the low is set at about about 418 and the high of this candle is set at 424 this candle becomes what I would call a trigger the high is your entry the low is your max loss and your profit Target is a retest to the high so I&#39;m in this at about 424 my stop is about 418 which means I&#39;m risking 6 cents per share I&#39;ve got six cents of risk my profit Target should be between 6 and 12 cents at a minimum if you&#39;re scalp trading which is taking quick profits then 6 cents is fine if you&#39;re looking for a little bit of a bigger winner 12 to 18 cents would be better 2 to 1 3 to1 and in fact on this one we&#39;ve got room back up to about it looks like uh 435 so it is about 11 cents almost 2 to 1 for the first profit Target which is high of day and then once this hits a new high it&#39;s going to be back on the scanners it&#39;s hitting new scanner alerts for other traders who maybe missed this first pullback if this makes a really nice move up then it may form a second pullback here for yet again another leg higher and we often see that this is a nice example of that first leg up light volume pull back another move higher we have a bunch of examples here I&#39;m not going to show all of them but um another nice example here nice move up light pullback and the move higher now let me play this for you I&#39;m going to go into the slideshow so this is going to animate what it looks like uh as we&#39;re about to take this trade so the price is moving up and we&#39;re hearing scanner alerts ding ding ding ding ding ding ding ding so we pull up the stock we do our technical analysis we check the daily chart we make sure that the price is not near the 200 EMA we quickly check to see what the news catalyst is we confirm that the stock does fit within our criteria of percentage change relative volume price and float and then we&#39;re beginning to look for a possible entry so one of the things that you&#39;ll learn is that a lot of these stocks will trade with respect to half dollars and whole so this might be five this is $450 and this is four very very common that we see that so it might come up to a whole dollar such as let&#39;s say four and then pull back to around 450 maybe a little lower all right so we come down here and now right here we&#39;re beginning to base out in fact the reversal is already starting but in order to get confirmation we need the first candle to make a new high so this could be our trigger candle but if the next candle makes a new low we&#39;re not buying there&#39;s no trade here for a beginner Trader there&#39;s no trade all right so now we&#39;re waiting and what happens oops sorry there we go big green candle that&#39;s what we like to see now of course this is an animation so we&#39;re able to make it look really nice or however we want I suppose but this is what we look for that first leg up light pullback and then another move higher the reason that we&#39;re even getting this pullback in the first place is because there&#39;s no such thing as a stock that goes straight up all stocks you know even the most parabolic move in these waves right they have moments of pullback and when they&#39;re experiencing this pullback it&#39;s because some Traders are taking profit some Traders are perhaps shorting and they&#39;re just a little nervous and then as it makes the second leg up a new round of Traders are coming in and saying well I can now establish a level of risk based on the low of this last pullback that&#39;s my stop so we dipped Now we move back up as long as we hold that low I&#39;m in good shape for a move higher and then it&#39;ll dip again as long as we hold that low once again we&#39;re in good shape for a move higher and that&#39;s how we end up trading these so light volume red candle that&#39;s great this is great this is a this is a really nice one where we have as you can see increasing volume as the price goes up that&#39;s fantastic this is bordering on what I would call parabolic parabolic is when the price starts to really kind of scream like it really starts to squeeze up very quickly now this is a good example of what to avoid so here the stock squeezes up and it hits our scanners so boom boom boom we&#39;re getting the audio alert we see the stock just went from $2 to $3 350 so it&#39;s up like 75% on the day but look at the volume the distribution of volume is predominantly on the cell side and it is kind of surprising because this is a stock that has news of a partnership with Volkswagen seems like it could be a great headline but nonetheless sellers were much stronger than buyers on this example here&#39;s another example same thing light volume buying high volume selling when you see that you&#39;re not wanting to buy the first candle to make a new high because it&#39;s just going to immediately get rejected if it even can make a new high now in both of these examples we don&#39;t actually get a candle that makes a new high oops let&#39;s see back here so we don&#39;t get a candle that makes a new high here it just sells off so there&#39;s really no entry anyways but in any case it&#39;s just helpful because it&#39;s possible that you could have a candle that does make a new high for a second and if you weren&#39;t looking at this volume well you could get trapped now one of the things that I also try to uh always follow as a rule of thumb is that the pullback should not be more than 25% of this initial move so if this goes you know from a dollar to $2 it can pull back to $1.75 but I don&#39;t want to see it pull back more than that 50% is a hard cut if it goes back more than 50% we&#39;re now tipping to the downside but I prefer to be consolidating in the top 20% 25% for this pattern so that&#39;s the top 25% of the range of that last leg this is another example of higher volume selling right here so in this example here we&#39;ve got that nice move up and then this pullback is definitely in the top of this range right here okay so the 50% mark would be like down here it&#39;s holding at the 70% Mark that&#39;s fine that&#39;s a good spot to be considering an entry right in this area the volume profile is also supporting high volume buying light volume selling and this is a stock that went from $ 350 to nearly $10 a share so this is a huge percentage move I mean there&#39;s there&#39;s no question that this is the type of stock that you C could do potentially very well on and you don&#39;t need to trade every single pattern that appears you can get to that point in time but just to begin just to get started proof of concept is can you get good at one pattern if you can get good at one pattern you know that&#39;s enough to I I suppose uh survive until you can Thrive just to kind of keep your head above water okay so let&#39;s back out of this for one second and I&#39;m going to pull up the live trading archive from today and I&#39;m going to show you this bull flag which I traded so so as we saw today I ended up trading a number of different stocks uh the one that I made the most on was LGB I&#39;ll show you some trades on that also had some trades on GX Nas atns vbpr and then my Biggest Loser was VPX and sadly that was my last trade of the day so I was up about just under 15,000 had that final trade and I said all right you know what it&#39;s time to walk away so that was my last trade of the day but at the beginning of the day when this recording um takes place uh I was trading vvpr so vvpr as you can see right here has um just made a pretty nice move to the upside so let&#39;s see the current time is about 750 yeah so um okay so so what we have here is we had this pop right here so we had this little move here and let&#39;s see I&#39;m trying to remember might have to jump forward just a smidge okay so we end up squeezing higher right so right now this stock is squeezing up we&#39;ve got 1 2 3 four five green candles in a row now now I&#39;m looking at this for potential break through 550 that&#39;s the level that I&#39;m watching and in fact although this is a um a bull flag that&#39;s forming right here on the one minute on the five minute the flag has already started to break out it&#39;s a little hard to tell but it&#39;s already started to break out so we we actually have what we would call multi-timeframe alignment multi-timeframe alignment is when you have both a one minute time frame and a 5 minute time frame both giving you the same signal which in this case is to buy so I&#39;ll just kind of show you what that could look like here for a second let me pause this real quick uh so you can see I took a starter here but we&#39;ll um I&#39;m in 5,000 shares so far but we&#39;ll we&#39;ll we&#39;ll come back to that in just a second so let&#39;s look at multi-time Frame Alignment and we&#39;ll do it we&#39;ll do it right here uh we&#39;ll do it on this side actually okay so on multi-time Frame Alignment what we have happening on this chart here is uh we already had a the five minute marker is getting a little weak we already had the five minute that made that gave us a bull flag pattern right here pulled back pulled back and has begun to resolve right here all right so sorry I&#39;m going to just do this in blue just because my uh that marker just is dying so the the blue is uh for candles going up okay so we just had this candle begin to move up here and this is the five minute chart so so that&#39;s the 5 minute now in the one minute what we&#39;re seeing if we zoom into these two candles is we had basically a little bit of a dip here and then we have five green candles in a row one two 3 four five so I&#39;m looking for a bull flag right here where we get this dip and then we squeeze up here and move higher and so this is occurring in inside this candle and that&#39;s okay this is a strong 5minute bull flag pattern that is currently breaking out and Traders who focus on the bull flag on the five minute are still holding so and they may even be adding traders who focus on the one minute are looking at this pattern and saying this looks good and the five minute is reaffirming the pattern so this is something that I definitely want to focus on okay so now let&#39;s go back here so what I end up doing on this this is going to be an example where the trade as I I execute the bull flag a little differently here from how a beginner should execute it and I&#39;m going to kind of differentiate what&#39;s different about the way I execute the trade versus what a beginner should do so a beginner is going to see the stock squeezing up and is going to wait for confirmation now I have a track record that creates intuition and my intuition at times will tell me not to wait for confirmation but to get in early getting in early means you&#39;re going to have lower accuracy because you don&#39;t have confirmation confirmation comes in the form of the first candle actually making a new high that&#39;s confirmation right there but I&#39;m going to pay a price of $3 a share for confirmation if I get in down at 292 I don&#39;t have confirmation but I&#39;m getting in at a lower price so if I end up being right I&#39;ll make a little bit more money for taking that higher risk and if I&#39;m wrong well I&#39;ll stop out and take a loss so my accuracy is going to be lower when I take higher risk trades but when they work the rewards can also be greater so what I end up doing on this is I see the stock has just given us this nice move higher we&#39;ve got four green candles in a row and unfortunately we have a little bit of a topping tail pattern right there which I don&#39;t love but because the stock is our number one leading percentage Gainer it has so much volume I really think that it&#39;s going to go through 550 and work so as it starts to pull back it drops about 10 cents off the high about 15 cents from a high of 545 down to about 528 and I take a starter of 2500 shares at 529 so what I&#39;m doing here is I&#39;m actually accumulating on this pullback I&#39;m buying a starter position it goes a little lower and I double adding at 527 so now as it comes a bit bit lower I&#39;m thinking that my stop on this generally is going to be about well 15 cents my profit Target is 15 cents that&#39;s a 1:1 ratio so 15 cents is kind of my stop on this which means I&#39;m going to have to get out if this drops down to like about $512 but right now as it&#39;s sitting right now although I&#39;m slightly red on the stock I&#39;m okay with holding because it hasn&#39;t hit my Max loss and I&#39;m still waiting for that first one minute candle to make a new high which would be the proper resolution of the bull flag I&#39;m just in early okay so we have a low right here of about 522 we can see the price and this is the level two window so this is actually showing us um the market depth is showing the buyers on the left the sellers on the right we are seeing that there&#39;s more sellers on this right now at the moment so I have put my hand over the buy button I&#39;m kind of you know I&#39;m sort of like all right how am I going to manage this I&#39;m I&#39;m down 500 bucks on it I&#39;m starting to get close to thinking I made the wrong decision and I&#39;m going to have to stop out we now have our second red candle forming but let&#39;s pause this for a second and observe the volume so what do we note about the volume high volume on the move up light volume on the move down okay now what we also notice right down here is that this is forming a little bit of a bottoming tail a bottoming tail occurs when the price sells off and then comes right back up so a bottoming tail tail is actually a bullish pattern I like to see bottoming Tails so I&#39;m totally okay with seeing a bottoming tail now the candle hasn&#39;t closed yet but we&#39;ll see what happens so I&#39;ve now added a little bit more to my position and my average is $527 okay let&#39;s pause this for a second all right so we&#39;re going to pause this here so right now you can see we&#39;re getting very close to getting confirmation confirmation will be the second this green candle break the high of the previous candle now I&#39;d have to put my mouse over that candle to see what the actual price is but I&#39;m going to guess it&#39;s about 30 it&#39;s about $55.30 so I&#39;m in at 527 I&#39;m in 3 cents early 3 cents early um I don&#39;t know if it was really worth it to take an early entry on this for three cents um but in any case I&#39;m in at a 3C Better Price than a Trader who&#39;s following this pattern and paying for conf so paying for confirmation means you&#39;re waiting for that first candle to make a new high so I end up putting an order out at 35 which is just under 10 cents of profit for uh 3/4 of the position thinking that if it pops back up I&#39;ll probably want to unwind a little bit of it because I wasn&#39;t expecting it to dip down as much as it did now as you see here it immediately goes up to 540 and now we&#39;re getting that confirmation and we&#39;re breaking through the high and we see volume coming back in right so this is the pattern pattern that so many Traders are watching this pattern would have worked just as well if ID waited and gotten in at 530 and then sold at 535 or 540 I&#39;m still holding a piece here average right now is $527 and we&#39;re at 560 on the offer 557 on the offer right so this ends up being a pretty decent trade now as always when you when you first take a trade like this you do carry the risk that you could get stopped out so you have to know what your max loss is before you take the trade how much are you willing to lose by understanding that you&#39;re going to be in a better position and that&#39;s one of the reasons I don&#39;t encourage a beginner Trader to try to anticipate a trade by getting in early because you haven&#39;t had the low set it&#39;s still actively making new lows which means your stop becomes a little bit arbitrary and that&#39;s harder for beginners to enforce because it&#39;s not black and white it&#39;s a lot easier when it can just be black and white very simple as long as it stays Above This level I&#39;m going to hold if it breaks it I&#39;m going to sell so for a beginner Trader this pattern is an entry at the first candle that makes a new high with a stop at the low profit targets is a squeeze through the high for a more advanced Trader you may decide to start to anticipate that this is going to happen by getting in while other people are selling but again your accuracy is going to be lower most likely than waiting for confirmation because there will be a number of times where you get in down here it just keeps going lower and so then you look back at that chart and you&#39;re like I bought right here and then it just kept going lower and lower and lower and lower why did I buy there well you were trying to anticipate that first candle making new high I get it but you know just be aware that your accuracy won&#39;t be as good as someone who&#39;s waiting for confirmation and most beginner Traders can&#39;t afford to have any they can&#39;t afford to have poor accuracy because you&#39;re already dealing with the fact that you haven&#39;t yet built your your own sort of degree of educated intuition that can guide you about when to get in when to get out so for most beginners you really have to kind of follow um the more hard set rule of the strategy and that&#39;s fine that&#39;s look that&#39;s that&#39;s where you start and that&#39;s where I started too and then once you get some conviction and confidence you can start to get you know a little bit more aggressive so back to this uh trade here so the reason I put the order the sale order out at 536 or so 537 there was two reasons number one uh I was only up $1,000 on the day at the time that I took this trade so I was beginning to realize that this trade had the potential if it dropped down here to 15 to put me back to break even on the day and I was starting to think that I need to be a little bit more defensive and protect the gains that I have and not not do that until I&#39;ve got a little bit of a bigger cushion on the day now at this point right now with a much bigger cushion on the day I probably wouldn&#39;t would have put that profit Target out if I took the trade right now I would just hold it set my stop and if it works then that&#39;s great and if it doesn&#39;t work I would take the loss but because it was a little earlier in the day and you know when I first took that dip I kind of thought it was going to bounce right back up to 550 I thought like instantly we were going to go back to 550 so the fact that it hesitated just a little longer that also made me a little cautious so anyways I you know I put out the profit Target I just kind of I just put it out there real quick I just sort of threw the order out there and sent it and anyways my my shares got picked up it ends up uh you know I don&#39;t know if a market maker saw my shares and wanted them or how that worked exactly but my shares were up there at 35 ended up getting picked up and that pulled that took some risk off the table for me and then I was able to hold the rest as it squeezed higher so let&#39;s watch what happens at that first candle to make a new high now by the way when I&#39;m trading I&#39;m live streaming so although I&#39;m giving the uh my commentary and saying why I like the setup everyone can also see that I&#39;m already in they they&#39;re not waiting for that first cand to make a new high necessarily they see that I&#39;m already in at 527 and I add it at 524 I&#39;m saying it and my p&amp;l is is streaming so by the way those of you guys that would like to check out a two-e trial and trade side by side with me and during the two-e trial use our platform day trade Dash which has the scanners the charts the news feed my chat room my broadcast everything else by all means check it out there&#39;s a link for the twoe trial that&#39;ll be posted in the top of the comments and it&#39;ll be linked in the description for you guys I also have um some links to uh PDFs that you guys can download if you want to download a collection of my PDFs on the micro pullback strategy and also my small account uh trading strategy you can download those you can print them out and you can use use them as a resource as your developing your own strategy or you know what I would challenge you to do is try trading my strategy as I&#39;ve laid it out with the rules and everything in a simulator for 3 weeks for a month just to see where it gets you because what you&#39;ll be doing is you&#39;ll be learning a strategy that is currently being traded by me successfully is that a guarantee it&#39;s going to work for you no it&#39;s not it&#39;s not a guarantee because I don&#39;t know your personal skill set I don&#39;t know if you&#39;ll have the discipline to follow the rules but I think it&#39;s a good starting point right start with a set of rules that someone else is using and is actually working for them and if you&#39;re curious at uh my audited broker statements those are over on the website sometimes people are uh curious about how much I have really made trading and that&#39;s on the website so it&#39;s over uh $10 million of verified gains as of the last audited statement which was December uh 31st okay so anyways um so now we&#39;re going to watch what&#39;s going to happen here at 5:30 okay so at 5:30 what ends up happening is just all of a sudden it breaks that level and basically in an instance we&#39;re 530 on the offer right here 531 533 and it goes right to 540 and I was kind of honestly I was like wait did I did my shares just get picked up like I wasn&#39;t expecting that I I I didn&#39;t expect it to go instantaneously like that they were just gone so then all of a sudden it&#39;s 540 on the offer and I&#39;m like well okay but there&#39;s a 5,000 share seller there so I put 1,300 shares on the ask to sell into strength so by the way when my orders are selling they&#39;re going to be green on the tape and the reason my sell orders are green on the tape is because I&#39;m selling at the ask if you sell at the ask then you have to wait for someone to come and buy your shares and when they initiate the transaction their order is green showing a buy and you&#39;re the seller but they&#39;re the initiator of the transaction so the order is green on the tape green on the tape is bullish so now there&#39;s more green on the tape and I throw some more shares on the ask and I take a little more profit and I&#39;m thinking golly this is good so there&#39;s an order at 59 and you can see here even though it&#39;s only 688 shares I&#39;m getting a partial fill 479 shares have filled of this order and the rest I&#39;m I&#39;m waiting so I just wait and then it dips down so my order still sits there and I could either cancel it or wait for the price to come back up now the thing that&#39;s a little Annoying here is the way orders that are sitting on the offer um finally so there I get I got picked up the way your order can kind of get bumped off the top of the queue so there&#39;s a Quee of orders but it seems that market makers always find a way to push your order to the back of the line and that means you don&#39;t really get filled at 59 until the price goes to 60 so if you have a 1-cent spread then just selling on the bid is I mean I&#39;ll do that but when you have a bigger spread like this 3 cents 4 cents selling on the offer will give me the best price so that ends up being um a nice winner there I&#39;m now up $1,931 and that was pretty impressive now what I want to do is I want to jump forward and show you um LG VN so all of a sudden LG VN um this kind of like out of nowhere I&#39;m sitting at $3,700 of profit on the day and LG VN is consolidating here to around $420 Now LG VN is up uh 42% on the day the float is 3.88 million shares the price is fine it&#39;s got the 200 moving average up around $8 so it&#39;s got a good amount of room here on the daily and I started thinking all right you know I&#39;m going to I&#39;m going to be actively trading it I noticed on the bid 20,000 share buyer down there at uh 410 so you start seeing some bigger buyers coming out it also came to my attention that the short interest on this was really high something like 65% so I&#39;m thinking all right we&#39;ve got high short interest we&#39;re seeing some big buy orders you know let&#39;s see let&#39;s see what this thing wants to do and in this area here I kind of break away from the standard um trading of just the pullbacks to kind of pulling out all the stops using all the different strategies that I have to capitalize on what ends up being a really nice move to the upside so I&#39;m going to fast forward this um so we&#39;re coming up here to about 425 so you see that burst of volume up to 4 25 so we&#39;ve got 425 426 on the offer 427 428 435 okay so now we&#39;re starting to move a little faster we&#39;re up 50% on the day the next logical Target on this is 450 the psychological resistance of the half dollar so I end up putting an order at about 451 and I&#39;m looking to take a trade right up here for the break of the half dollar now what sometimes happens on these when I do a breakout trade like this this isn&#39;t waiting for a pullback this is buying kind of in the middle of a move so I got in right here at 46 I&#39;m looking for the break of 50 but I&#39;m noticing that there&#39;s a seller at 50 is it going to break it thins out and then it doesn&#39;t break new orders at 69 there we go now we broke so added and it almost my computer almost kind of like stalled out for a second so I added here at 61 my new average is 54 and now I&#39;m putting profit targets out at 75 contrl p is profit Target and I put profit targets out from time to time on stocks like this so I&#39;ll put out a profit Target I&#39;ll let my shares get picked up and then I&#39;ll look for the next dip to get back in the entry on here initially is at the half dollar so buying at450 and then adding at 65 and looking to break 7585 next profit Target looking for a squeeze straight up to $5 a share so this comes back to that concept that I mentioned um a little bit earlier about how a lot of these stocks trade with a great deal of respect for half dollars and whole dollars so 450 five 5506 and so what you&#39;re going to see here is as this moves higher the next level of resistance is $6 right so we&#39;re looking for that squeeze up to six so right now we&#39;ve got five 85 on the offer 590 593 but we&#39;re starting to find a little resistance up here around sorry 493 up around five right that&#39;s very common so I end up taking a little bit of profit so we get this squeeze here from 450 450 this one&#39;s really gone all right 450 we get the squeeze here from 450 up to five and now just for a moment we&#39;re getting a little pullback so we end up getting this drop right here where we we all of a sudden flush down which is a higher volume selling candle and I think all of us were a little like what just happened that was a high volume selling candle and I think what happened there ultimately was that we had a rejection off of five and there was someone that just sold a big a big chunk of shares so in this case we have a higher volume selling candle we get that drop but clearly the stock is strong so we pull it back up and all of a sudden here we go we&#39;re back through five now we&#39;re at 505 and I&#39;m just going to actively trade this if this can hold over $5 $5 is psychological support so now what we&#39;re doing essentially is trading variations of momentum patterns bull Flags micro pullbacks and we&#39;re trading them around these levels half dollar and whole dollar so we end up ripping back up here and then dipping down for a moment can we hold five if we can hold five then boom I&#39;m looking for a trade up to Next Level 550 so now let&#39;s look at this for the trade up to 550 we get up towards 550 and then we&#39;re going to look for a squeeze to six and as you as you watch this thing we&#39;re so right here now we&#39;re pulling away up to 524 so coming up to a little bit of resistance here we&#39;re right around 530 and this is beginning to give us um in a sense a little bit potentially of a bull flag you&#39;ve got three candles green we&#39;re having a little bit of a pullback right here and let&#39;s watch what happens out of this range we&#39;re going to look for the squeeze through 550 we want to catch that breakthrough psychological resistance so I&#39;ve got my order here at 558 2500 shares ready to add so I&#39;m all flat now I&#39;m up 6,600 on the stock and here we go adding starter looking for the break through the high in at 41 M now it dips down a little bit maybe I&#39;m a little early we got that first candle to make a new high but the only problem is we only had one candle pullback so it&#39;s not a lot of pullback and we&#39;re very topheavy up here so I end up taking the loss I stop out I was in at 41 I&#39;m out at 36 I lost 5 cents on that trade but I&#39;m ready to get back in if we can you know here we go and I&#39;m adding back at 49 I&#39;m looking for that break through the half dollar again is it going to break adding at 50 there&#39;s 55 now watching 6570 this is the same exact thing I just did at 450 and 460 so now I&#39;ve scaled in and I&#39;m looking for the squeeze through 575 there&#39;s 577 578 so let&#39;s Zoom this forward now we&#39;ve got 585 580 now we&#39;re at six we broke over six so micro pull back there and it pushes higher now we&#39;re up 115% I&#39;m up 9,000 on the day now we&#39;re at seven okay so now we&#39;re going parabolic this thing is really pulling away fast let&#39;s back that up so we can see the squeeze to seven so what ends up happening here is right over 625 it breaks goes to 648 650 655 pulls back for a second 640 right here and now we&#39;re looking for the squeeze to seven I add 55 average looking for the break of seven we&#39;ve got 690 on the offer we know we&#39;re going to have a little resistance probably around 7 so I take a little profit there at 72 but ends up going higher I mean this thing ended up being incredibly strong it goes up it&#39;s up 144% so the way I trade this essentially is I&#39;m trading this same pattern but instead of trading it on a five minute chart instead trading it on a one minute chart I&#39;m trading it on a 10-second chart I&#39;m Trading micro versions of this pullback so that PDF that&#39;s Linked In the description that&#39;s my micro pullback strategy PDF it&#39;s a it&#39;s a high-speed variation of trading bull Flags but the philosophy and the theory behind it is the same you&#39;ve got something that&#39;s really strong that&#39;s moving up quickly has a momentary pullback and then next leg up momentary pullback next leg up so this is this is the basis of momentum trading this is what I do every single day this is what I love I&#39;ve been trading for more than a decade and listen if you found this episode interesting I hope you hit that thumbs up I hope you subscribe to the channel and I hope you do a two-e trial and really give it a give it a try watch over my shoulder for a couple weeks and see what it&#39;s like to be part of the warrior trading community so as you can see here end up being up 12,000 on this stock I don&#39;t stop there I got myself up to about 14,000 on the day before finally giving back a little profit before the end of the day and it&#39;s always important to remind yourself that every day you&#39;re doing one of two things you&#39;re giving back profit or you&#39;re leaving money on the table so I don&#39;t mind giving back a little profit and pushing it in a hot Market but if I give back too much I got to take my queue walk away and make sure I&#39;m at least leaving with some good money in my pocket so today another solid Green Day up just under $10,000 right here 10, 94813 that&#39;s a good day and I&#39;ll be back at it trading bright and early tomorrow morning and I hope to see some of you guys in the chat room in the community for the trial okay I&#39;ll see you then thanks as always for tuning in and don&#39;t forget to hit that Thumbs Up And subscribe to the channel

Transcript for:Trading the Bull Flag Pattern

Transcript for:
Trading the Bull Flag Pattern