welcome back to another bar by bar video today we're diving into some easy money trades that any new or novice Trader can use to build their playbook first you'll learn about a fantastic day one lowf flow trade we haven't seen this setup in a while but it appeared twice this week and they ended up being my top trades of the week so far we'll review these setups and discuss how to build a simple filter to catch these and put this setup on your radar then we'll cover another easy money Gap give go trade in Nike and make sure to stick around because we're wrapping up with a more advanced mean reversion short on a stock that shot up 50% in just 20 minutes I'll break down the mechanics of the move and show you what to look for when identifying a top you're going to learn a ton so let's get into it all right so let's jump into these lowf flow trades first one we'll review is gnln gnln announced news of a non-binding letter of intent to become the exclusive us distributor of safety strips which are test strips that detect fentanyl Tran and other drink spiking substances they're lowcost test strips that offer a reliable way for individuals to check for substances for these dangerous uh adulterants this caused the stock to Gap up 300% so you can see on the daily chart here pretty beaten down stock just stuck in the mud and then suddenly in the pre-market we get this Spike from $2 to $10 so we're up about 300% in the pre-market in addition what's really important to note are the fundamentals here we have an average volume of roughly 100,000 shares stock typically trades 100,000 shares in the pre-market it's trading 25 200% of its average daily volume just insane volume coming into this stock in addition it's a low float the float of this stock is only 845,000 shares also the float is 16% short which is what causes this squeeze this is the reason why it could continue to squeeze so we haven't seen this setup play out in a long time but I had to dust off my playbook once I saw this pattern begin to form and it's such a simple idea and a simple pattern um and we saw it again later on in the week and we'll get to that after this and I really think that this is a setup that any new Trader could add to their playbook we'll also go over how to put these on your radar via a very simple filter we get the move from $2 to $10 off the open we fail from this resistance up here at about 1050 we could highlight that and then we get a move lower breaks through this pre-market support around 880 and begins to hold below vwap so right away this is trapping shorts and I mean it is a valid short setup right we got a pop and failure into that resistance pushed below vwap broke this pre-market support and that gets shorts interested the stock pops fails from vwap it's consolidating below vwap each pop into vwap fails and then you get an opening range break to the downside that's a move that also gets shorts involved opening range break to the downside the stock doesn't follow through the downside but it continues to hold below vwap all morning into the afternoon we get a push above vwap and it seems like the stock is going to squeeze right it's a low float less than a million share float High short interest very susceptible to a short squeeze and it doesn't play out the stock fails back below vwap this is attracting even more shorts stock continues to hold below vwap tries to break down again below this like 740 support here and reclaims one way to look at this is you have short traps all day long and you have a lot of signals to go short but but in reality this stock is holding at the top half of this Gap it retraced about 40% of this pre-market move it's still holding up extremely well and it can't break down and it can't squeeze but what it's doing more than anything is sucking in shorts you can see volume starts to diminish and then around 2:00 we reclaim vwap so all day the short didn't work and now the stock is reclaiming vwap getting above this morning opening range and it's holding above vwap and you can see the volume starts to come in as shorts are getting nervous and start to cover their short positions stock pulls back into vwap and holds holds higher and begins to consolidate this is where I start my long position with the idea that the short didn't work out all day and they're going to need to cover into the close if this continues to hold up and if this stock gets Above This 1050 see a triple top the intraday high if it gets above that level every short is going to be in trouble they're all going to be in trouble and they're going to have to cover their position what short would want to hold this position overnight doesn't make sense they're completely underwater as we pull back into vwap begin to hold up consolidate Stock's getting Tighter and Tighter I initiate my long position and simply just put the stop below this recent Wick low below vwap just a few cents below there I'm expecting a short squeeze we break over that 1050 and I'm adding to my long at this point as we break to new highs I know I'm wrong on this position if we get below this breakout bar so the low of this bar is $920 I'm simply going to put my stop at $9.19 for the entire position the stock immediately pushes up to $12 and I know that if this is going to be a good squeeze that it's not just going to stop there the float is only a million shares 16% of it is short I'm sure that short interest increased even more throughout the day I'm expecting this to squeeze we're getting one of the highest volume bars of the day through that 1050 level it's the second highest volume bar of the day that is excellent confirmation that is one of my favorite checks in favor to feel confident about a breakout we get the next leg higher and begin to slow down in front of 1350 I'm selling a piece of my position about 25 5% we push up again and we start to have a lot of trouble at this, 1550 pop into it and fail put into a new high and fail and then there's just a clear seller at that ,550 I'm selling an additional 25% of my position now I have a nice profit locked in and I'm willing to see how this plays out arval is about 800 at this point and it's increasing the increasing arval also gives me confidence about this shorts are in big trouble here we get a stuff and a hard failure but we're able to hold up and continue consolidating this move traps even more shorts this is exactly what you want to see starts to curl up and make a new high I add to my position and I work out my average price just so it's below this recent low here where it failed from pulled back held got a tight consolidation pulled back again made a new high I'm adding until my average price is just below $14 I have a profit locked in I feel very comfortable in this position it failed to break out here but that's fine there's no way I could lose on this um and it just continues to consolidate we get our next leg push up towards 19 I'm taking profits on this ad and now we have this pullback back towards 1630 30 and we hold and push up now I have a new stop if we break below that pullback low I no longer want to be involved in this so set my stop slightly below this low the low is exactly, 1650 I'm going to put my stop 1649 we push up into 20 nice round psychological whole number I'm taking profits on an additional 25% of my position I'm left with 25% of the total position at this point and then into the close we get a hard down move the stock uh the company announced some dilution which caused this down move and I'm stopped out just below the 1650 and that's another lesson in of itself It's always important to use hard stops I got to ask that a lot do you use hard stops I always have a hard stop in no matter what now we'll dive into the cing which is from today August 15th so just 3 days after the gnln trade this low float pops up on my scanner gapping up about 175% pre market the news is that the company announced that it was issued a European patent for its leading ADHD drug and we get this Spike from $2 to $5.50 so very similar to gnen this is a stock where its average volume volume is only 84,000 shares in the pre-market it's trading about 900% of its average volume also the float on this stock is 845,000 shares an extremely low float so tops out at 550 pulls back about half of that move bounces off the open ultimately fails from this resistance here from the pre-market fails below vwap attracting shorts tries to push up above vwap APAP fails really hard can squeeze traps even more shorts opening range break to the downside on high volume trapping even more shorts but you can see that it ends up holding this pre-market support pushes into vwap again fails hard you guessed it trapping shorts then around 12:30 it reclaims vwap now I typically like for this move to happen closer to the close it gives shorts less time to cover their position which could really intensify that squeeze I was patient and I was really hoping that it would consolidate into the close and we would get this move into the end of the day the last hour and a half or so but it didn't play out that way instead I'm watching this extremely closely and it immediately spikes up into a limit up into that pre-market High I'm getting long into that Limit Up we have a tool on our trading platform and simply called imbalance data and it will give you an idea or well not an idea it'll tell you exactly where the stock is going to open up when trading resumes now not many Traders know about this but you should have that on your platform as well it's called imbalance data so something that I notied here is that that Spike into high of day it's not one of the highest volume bars of the day I want to see extremely high volume on that like we just reviewed in gnln we're not getting that and I see that the stock is going to open around $620 so given the fact that volume wasn't extreme on that and this isn't playing out close enough to the end of the day for me as soon as this opens I'm going to sell half of my position immediately as it opens around $6 it spikes up towards 680 I'm selling even more of my position and at this point I'm left with about 20% of my position I also don't like on the reopen that we still didn't get one of the highest volume bars of the day I want to see a volume bar that's really in the top two or three intraday volume volume bars we're not getting that so I'm going to be cautious and as I see that this stock is going to Gap up to 6 I'm putting my stop in just at the Hal price where it was halted the stock was halted $559 my stop goes one penny below that just to be safe have a nice profit locked in willing to let the other 20% go and see if it could continue its squeeze um I'm weary of that given the volume and I'm stopped out on this move still a great trade but not as good as that GN Ln due to the volume but just keep in mind that these two trades both have something in common float less than a million shares price below $10 extreme amount of volume relative to its average volume and you could create a very simple filter for this filter for stocks that are less than $10 and then sort the list by percent of average volume traded so simply current volume divided by average volume times 100 sort your list by that metric and then do some quick research figure out if the float is actually low so something really less than 10 million share float uh the lower the better like these two both less than a million and then just look for this pattern very simple trade I haven't seen this trade in quite a long time and it played out twice this week and I'm hoping we start to see them more next we'll dive into Nike so Nike large gap down on earnings and then put in like a triple bottom here so held held tried to make a new low and reclaimed and then yesterday after the close there was news that bill Amman took a stake in the company anytime you hear one of these legendary investors taking a stock taking stock in a company um it's an excellent trading Catalyst recently there was a trade in Caesar where Kyle Carl icon took a stake in Caesars uh and those are excellent intraday breaking news trades as well just a very strong catalyst so you can see Nike spiked on this 7850 to 8250 nice 20% move there um and the first thing that I noticed going into the day is this after hours and pre-market support right around 8080 so anytime I see a gap up like this and into a large gap that the stock could fill I like to look for a gap given go stock gaps it gives some back off the open so Traders and the way that you could look at that is anyone that was involved from Nike into the earnings you know they're holding a bit of a bag now the stock gaps up and naturally there's going to be some relief for those recent buyers before earnings and they might look to sell into this news you could also have institutions that are looking to sell into this news also and take ADV Vantage of that liquidity off the open and a great setup is the gap give and go so we get the Gap up it gives some back off the open as we pull back into that pre-market support the tape slows down we begin to hold I'm starting my position we get confirmation pulls back into that 8 8080 again bounces off I'm adding to my position and the stop is low of day we get a nice quick move into vwap and anytime I'm taking a mean reversion trade like this where I'm buying below vwap I'm always looking to sell 50% of my position as we retest vwap because that's an ideal place where the stock could fail from beautiful trade quick move to move trade makes sense to take profits there we pull back try to bounce and ideally this should be the lower the higher low that leads to a higher High um and we end up in so I take off 25% of my position and I'm left with 25% from an excellent price uh and I'm willing to hold that I'm in from near the lows that could potentially be low of day I'm in from really one of the best prices and I'm willing to hold that remaining piece of the position with a stop at break even um and this is an excellent exercise for anyone that has trouble holding on to their winners if you're in from an excellent price your trade is working well hold on to 20% of that just to see what could happen Nik ends up breaking higher chops around but ultimately gets Above This 8190 resistance area 82 and Trends higher into the close and I just decide to hold on to that 20% into the close um and I'm out at the end of the day so a news headline came across my screen about a large buyer of $6.50 calls and $7 calls that were expiring the day of a Trader decided to take a significant zero DTE position which triggered a gamma squeeze and sent the stock soaring almost 50% in just 20 minutes so why would a Trader buying a large amount of these calls with only a few hours to expiration cause this type of move well one market makers need to hedge quickly when a Trader buys a large amount of outof the- money zero DTE calls the market maker who sold those options needs to hedge their risk to do this the market maker buys shares of the underlying stock to offset potential losses if the stock moves higher the more out of the- money calls they sell the more shares they need to buy to stay delta neutral meaning they need to maintain a position that isn't affected by moves in the stocks price two this causes increased demand as the market makers continue to buy the underlying stock to hedge their positions The increased volume creates additional demand pushing the stock even higher three this ends up being a self-fulfilling move as a stock price Rises due to market makers buying the Delta of those out-of-the money calls increases for those new to options Delta measures how much the price of the option moves in relation to the underlying stock this means market makers need to buy even more shares to stay hedged further driving the stock price up so what are the mechanics behind the top one exhaustion of buying pressure the move could top out once the initial Surge and buying pressure from market makers subsides if the demand for shares slows down or stops the up move basically Fades two simple profit taking as stock price Rises traders who bought those out of the money zero DTE calls may start to take profits by selling the options or the underlying stock this selling pressure could counteract that up move and cause the stock to top out three market makers cause a Delta hedging reversal if the stock price Rises significantly and the Delta of the calls approaches one market makers May no longer need to buy additional shares to hedge if the stock starts to decline market makers might even sell shares to maintain a neutral position further contributing to the top and don't forget the fact that this is all happening in just a couple hours before those options expire intensifying the move making the stock even more volatile and the price swings more dramatic so on Friday the 9th I'm sitting at my desk and we get that headline of a large buyer of $6.50 calls and $7 calls that were expiring the day of Beyond immediate Spike just ripping higher starting to get extended from that 9 EMA and then I notice a little bit of a change in character we're starting to see signs of a blowoff as that volume increases and then I'm just watching this $9 level pops above nine struggles to hold above nine next candle opens around 860 pushes back above nine next candle opens 910 pushes to 920 4 so we have 3 minutes of struggle up here and then we get a hard down move below 9 and that's where I initiate my first short position stop simply at highs this is all tape reading as we fail from nine on this next candle break below I'm adding to my position we break the prior bar low and I'm adding my final lot to this position stop is high of day and we get confirmation of the blowoff we get the highest volume bar of this move by far really simple stop at this point 925 stop flush through $8 I'm covering 25% of that position I have a profit locked in and I'm going to be patient with this stock starts to consolidate pushes up and the way that I look at this is that you have shorts that are oversized from $8 and they're going to get squeezed out a little bit Above This consolidation pulls back it's still holding the 21 EMA tries to make another new high and fails and I know a few newer traders who got chopped up in this area and a much easier way to trade this is if you think that the top is in at this point due to the volume here you want to put yourself in a better position to capture this short by risking against that high and of course that comes with needing to be a little bit smaller in your trade and give it more room which you might think will make you less money but in reality it beats getting chopped up in this move any day and often times you'll end up making more money with a smaller amount of shares in a wider stop just giving it some room to breathe it's doing an extreme amount of volume shorts are getting squeezed uh it's just a much easier way to trade these if you're new following this move um we get a break below vwap and as we break below vwap I'm covering 25% an additional 25% of my position and one mistake that I made on this trade I was in from such great prices and had a profit locked in that I should have been shorting as this little uptrend breaks uh it pushed Above This consolidation failed to squeeze tried to push above again failed to squeeze and then breaks this uptrend uh this would have been an excellent place for me to add so that is how I could have done better on this trade we get the flush through vwap cover 25% left with 50% of my position um I had bids in at $7 just in case we got a quick flush down there got the flush down to $7 got filled on 25% left with 25% and then as we come back into where that move started cover 5% it's consolidating and I slowly scale out of the remaining 20% of that position for the full retracement thanks for tuning in to another bar by bar hope you learned something today so you're an active Trader not doing as well as you want not doing as well as you deserve and you just can't figure out out why you can't become profitable no matter how hard you try well let me show you why this is your competition the traders in this room this room right here is full of elite Traders some of whom are making seven and even eight figures a year in fact our top guys have made nearly 20 million each in net trading profits in a single year let's head to my office so I can share more so you're probably used to seeing videos of lavish Trader Lifestyles Trading gurus trading off of a laptop for an hour a day heck maybe even 15 minutes a day and then them relaxing on some secluded beach for the rest of the day well all I can tell you is that our Traders train like pro athletes they live and breathe the markets and are continually working on their trading skills 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