Chart Breakout Setup

all right guys this is gonna be part one I just got absolutely whooped on Clash Royale that's sick anyways so part one this is gonna be um setting up the charts breakout setup you know what indicators you need time frames that you're gonna look at and yeah just kind of reviewing the setup so number one before we go over anything any indicators anything like that when you're looking for a setup make sure that it doesn't say biotech it better just not be a biotech so biotechs are going to be Healthcare biotechnology so if it's in this sector just don't trade it don't ask why actually well I'll tell you why because they just gap down left and right I don't know why they do it um but they do let's try to find a biotech really quick it's just up a million percent and shot a biotech that's not there's a biotech so you see how these are just like gapping it just gaps all over the place they're usually really small caps through this [ __ ] so don't trade biotechs all right now that that's over let's go let's see so indicators what indicators do you need well you don't really need all that many um it's pretty simple I just use the 10 20 50 and 200 simple moving average on the daily chart which this is where I mainly look for setups and then I have volume that's pretty much all you need you don't really need any indicators here on the five minute or the hourly or the one minute I do have some so I have the 9 20 and 65 EMA on the hourly which I use pretty similarly to how I use the 10 20 50 and 200 on here one minute um I could probably delete that I don't even use it five minute um I use this for entries so that stays on the right like let's say I'm working on a setup starts to break out then I'm boom I'm here looking for an entry but we'll go over that in a different video for now let's go over the setup so add these indicators 10 20 50 200 simple moving average on the daily chart look for setups on the daily chart that's it don't look for them on uh the weekly the monthly the hour the five minute the one minute and the dailies are gonna be the best so just go with that you can start to change up time frames as you get better at this and you should be better at this by the time that this Series has ended but for now just keep it simple just go with the daily chart and pay attention to volume so for the setup let's go ahead and let's put this over there so for the setup I'm going to use carbana for example typically I wouldn't trade a stock that's below the 200 SMA on the daily chart um because that just means that it's relatively weak once it starts to go above the 200 and the 200 starts inclining that's a good indication that this is a strong stock uh yeah that's pretty much so that's how you're going to use that 200 200 is just going to be your overall trend if it's declining and it's below the 200 it's probably a weak stock if it's above the 200 and the 200s inclining it's probably a strong stock so that's definitely something to look for um down here you'll if you've already watched some of my videos you'll see that there's a setup right here and I did trade this one it was below the 200. I'll show you guys when I trade them like that but for now let's just go over the stronger setup right here so there are there's one set up here there's one set up here um but the bigger picture setup right the bigger one that we're looking at that made probably the bigger move uh or like easier to trade easier to identify easier to spot easier to catch whatever right this is the one that you probably would have been focused on so the stock has enough volume right step one so make sure that it has enough volume you don't want to see a really really thin stock uh let me try to find that really quick so if we look at the five minute here you can see these candles are pretty liquid right they're all forming properly and N is probably thinner so this is a thinner looking stock now this is like okay for smaller accounts but the breakout follow through isn't going to be as good on this one breakup Fallout 3 was good but let's just say avoid stocks that look like this on the one minute where they have like no volume for some candles um sometimes it's okay like it really does depend on how small or big your account is like if you have a pretty small account like you're fine just make sure it's got a decent amount of volume and it isn't like if you click on the one minute there aren't too many of these gaps like something like this would be okay for a much smaller account for me I'm not [ __ ] buying that because let's say I buy like 12K shares like you're gonna see me buy this it's going to go up a bunch it's just not liquid enough for me to trade let's go over the setup so the setup is very very simple stock has enough volume step one um it's a decent price you don't want to see a stock that's like five cents like come on be real um and then ADR should be above five percent there are times when I when I'll trade lower adrs like Nvidia for example you guys know my biggest trade it only made in like 11 move on this breakout 12 move in three days and it only has a 3.79 ADR so typically that's something I would avoid but the options chain is pretty good on it and it had good risk reward so what we want to see above five percent ADR or why we want to see above five percent ADR which stands for average daily range is because that usually gives us a better risk to reward but when trading options like you know that can be adjusted a little bit on some of the larger caps I'll go over that in what part like three maybe part four uh it really just depends but yeah for now so the setup I'm going to show you guys quite a few examples and then I'm going to show you why I have these moving averages on how I look at the volume kind of how I analyze the stock so it's really simple it's really not that difficult it's going to take you a little bit to get used to it but just watch this video over and over and over and just continue to watch my videos and you will figure it out so stock makes a 300 move right in about a month we know that that is probably good so it's going up on high volume and it's just like made a big move so what happens after a big move like this well the soccer is going to go sideways it's going to consolidate and it's going to build a range if there isn't a price range like if just go sideways a little bit and then just continue to back up like whatever ignore it but when it builds a nice range like this you have to pay attention to it because you're waiting for the breakout and this is how you're going to make a lot of money this one you can see up sideways up sideways up sideways but if you look at like a bigger picture it's just up and then sideways again so you can kind of ignore this if you really want to but yeah you'll see that let's see make sure the webcam is not nowhere and then let's make sure let's go how does that look that looks pretty good okay so like I said before 50 times 300 move in like a month and then after it makes that move so it comes above the 200 SMA um typically you want to see the moving averages already in order like you'd want to see it setting up like this like 10 20 50 200 all of them are inclining and they're all in order um this is kind of a setup right there but this was day before earnings so you're not going to trade that I'm getting too ahead of myself anyways big move up stock goes sideways and as it goes sideways you want to see how it holds along the 10 and the 20 moving average and in this case you can see that the 10 and the 20 it holds it perfectly so it comes back to the 10 holds a 10 for like two days comes down then almost goes to the 20 then bounces back up right above the 10 Again bounces back down to the 20 then breaks out so if we were to just look at the setup right here you can see that this 20 is almost drawing that bottom line for you and it's building these higher lows so that's really important you want to see these higher lows being built because if the stock is like if you get you know a setup like this or it's just channeling down or something like that that's not as good as if it's coming to a pinch like this where it's building higher lows and lower highs so that is going to be the better setup and it just means that this is getting bought up so like institutions funds Banks whatever the [ __ ] you want to call it like who cares who's buying it all you have to know is people are just buying this up and it's not going lower so it's likely to continue hard now what we have big move up goes sideways and then as it's going sideways you're going to notice that this volume starts to decline so over the days the volume is just getting lower and lower and lower and the stock is getting Tighter and Tighter and Tighter so it's tightening up and then it builds these higher lows then you typically will see a few of these narrow or you know thin candles right before a breakout so you'll see a candle like this candle like this um even this one's decent and then you know next day ended up being breakout day typically before a breakout what you'll see is a negative so a red candle like a red day or a thin candle um but realistically all you're looking for is you want to see this and then you want to see the price go like that so you want to see the price build this flag looking thing right and then you want to see it come to a pinch and the tighter it gets the better that's a little strange sounding but um anyways if we look at Nvidia so Nvidia market leader at the time um a liter of the tech sector and Tech was a leading sector at the time like I said you know as we get more advanced or as we get further in this series we'll get more advanced but what we have here is a big move up so for the past six months I'd say yeah past six months this stock was really strong and made a 200 move it was leading the tech sector and then it had good earnings here so it gapped up and when this gapped up what happens the price pulls back to the moving average it pulls to the 10 right here holds the 10 builds these higher lows you know it gets it just keeps going higher and then it gets this you know somewhat thin candles right here breaks out so this one I don't think I traded this one I don't remember uh I really don't think I did but then it made a little move up pulled right back to the 10 and this day it pulled to the 20. now what's interesting about this setup and why this was like the best setup and why I made so much money off this I made 8 500 on options like that's [ __ ] huge but you can see that this 20 SMA like this is almost drawing your bottom line for you it's holding the 20 so good like it's absolutely insane I hope you guys see that right yeah you can see that so it's holding the 20 like insanely good this 20 is basically drawing [ __ ] I just like kicked my whole desk the 20 is basically drawing this bottom line for you and if I were to draw a line it's like it's just overlapping on that 20. so when you hear people talking about like oh trend lines like your trend line is going to be different than the next person's like dude who gives a [ __ ] the way that you identify if this is breaking out of the trend line is you look at the volume now let's look at breakout day so breakout Day volume's High before breakout day this stock is you know building lower highs and higher lows it's coming to this pinch so no matter I could put this line down here it doesn't matter I can still identify what's going on here I can still identify that this price is holding the moving averages properly it's tightening up and the volume's dying out after it makes this big move right pretty simple pretty simple concept so then boom it breaks out and that's when I bought it um I'll go over like entries and everything all that later right now is just the basics of the setup and why we have these moving averages how to use them whatever and I'll also I'll post the link to my layout uh so you'll get all these scanners you'll get the risk calculator all these indicators will already be on you'll have you know the monthly weekly one day and then the one hour five minute one minute your alert console so the layout will be the exact same as mine I'll post the link to this you have to sign up for tc2000 I'll put the link to sign up too it's like I think it's like 40 bucks a month if you can't afford that like realistically you probably shouldn't be trading 40 bucks a month is like what that's like a little over a dollar a day you could probably just stand in the street and ask for money if you really needed to but yeah if you can't afford tc2000 you probably shouldn't be trading um I'll just say that you don't really need a ton of money to start like you can start with a few thousand dollars you should be able to afford tc2000 if you have a few thousand dollars uh but yeah like I said anyways so good setup right big move up stock goes sideways as it goes sideways volume is declining and then it holds these moving averages perfectly and then it tightens up and we get this really thin uh red day right before it breaks out so that's a good example right there let's see what was another one did Zoom have any setups pretty sure Zoom had a setup before okay zoom's got to set up towards the top um this was you know in the covet days so this is obviously right like you guys can tell why it's important to focus on strong stocks that are leading and not only are they leading but they're in a leading sector so Zoom when this was um leading at the time why was it leading because everyone's using it during covet like it was just money was flowing into this and how do you trade this you wait for a setup this is a setup right here at the top uh that was probably breakout day might have been a little harder to identify but you can see here that it makes this big move up so it makes this like 115 move at the time the ADR was much higher than three percent um but yeah it makes this big move up so it makes 125 move in about 1.4 months go sideways builds this tight range and it makes these higher lows right along the 10 SMA and then it has these narrow candles right before it breaks out volumes really well how do you know it broke out well because volume is big on breakout day and then it ends up just continuing higher for a little bit and it comes right back down to the 10 and the 20. and you can see it holds right there you can see it holds um the 20 for a few days before eventually going lower which I'll tell you guys exactly when to exit these how to exit them how to enter you know everything but for now like I said this part is literally just so that you can identify the setup as a setup right there breaks out right there sometimes they're harder to identify okay here's a good setup this was right when is this can this get any slower like realistically okay this was right right when Zoom started picking up so most people probably had no idea that this was picking up but maybe the usage of Zoom started to pick up for some reason people are investing into this and what you'll see here is it makes a 30 move so thirty percent that works that's fine um as long as it's you know a relatively big move up and it goes sideways and it holds this moving average so it held the 10 right there on the penny like directly on the penny right there and then breaks out so it has this thin day [ __ ] so honestly you could have even got away with that being breakout day but you can see that this you know makes a big move up goes sideways as it goes sideways this volume dies out and then the candles start to get thin and it it's pulls right back to the 10. um you know next day bounces off the 10 right there on the penny and that would be technically breakout day right there and you would have been in it since for quite a while actually you'd have been in it until there but as you can see right you're looking for this that's it stock goes up goes sideways builds higher lows and or higher lows and lower highs I don't know why I just like reverse that very very simple concept but sometimes it is very hard to identify so for now just like go through as many charts as you can look back try to identify those see how they hold up on the 10 and the 20. and that's pretty much all you need to do like carvana or actually really quick so carvana this was declining right this was it took an absolute turret it was down 99 and then out of nowhere it got this bounce so out of nowhere I got this bounce right all the moving averages we're declining uh the 10 and 20 started to Incline but these were declining you know this is overall kind of shitty you just have to understand like the context of the setup but I mean it's still kind of shitty so then what happens it makes a 81 move in two days and then it comes up here sets up right above the 50. so it holds the 50 pretty well as you can see and it does make higher lows ever so slightly candles start to tighten up then it breaks out on high volume so up sideways as it goes sideways volume dies out breaks out high volume and this ends up making a you know fairly decent sized move from breakout that's a 166 percent in six days I believe that got me multiple thousands of percent as well uh that got me 3 700 but I I traded that and then I was out here took an hourly setup and then that anyways you can see setups are pretty much everywhere it just really comes down to the context of it you know which ones are going to be better than others but for now how many times do I got to say it focus on the setup learn the setup first there are variations to the setup not every time will it be one that holds the moving average so you can see right here there's a setup right there um which you know ended up breaking out here and going up a little bit then setting up right here again so that was the most recent one if you guys look at this we have a 37 move in just a few days candles are getting thin you know it pulls down to the 10 bounces off the 10 holds the 10 perfectly then we have this um attempted breakout day I don't I think I may have bought it or tried to buy it this day and I ended up getting stopped out uh but then the next day we ended up getting this I alerted it on Twitter for free for you guys and this was like 600 700 something like that uh in just a single day so that was a good trade right there you can see like that's a seven to one wrist reward in one day that's that's really good you just have to understand which setups to choose um and yeah not all the times will they be the best looking setups uh that perform the best it really is about the context of it which is why I'm gonna make that whole different like section on understanding the context of the setup and understanding where the market is at the period of or at the time and then understanding like sector rotation how to find leading sectors and then how to find leading stocks in those sectors but Nvidia absolutely perfect example right I hope you guys really really take a look at this one because that is a beautiful looking setup it's leading sector leading stock in a leading sector with a beautiful setup can it get better than that not really it really really can't damn I've been recording for 20 minutes already okay let's see what else what else can I go over for you guys um what are some other Tesla has had some setups uh AI not exactly NN this was a recent one I traded so you'll see here that this makes you know a fairly decent move this is a 75 move goes sideways um and then it comes down hits the 20 a penny away it's a penny away from the 20 right pulls back right to the 20 bounces up grabs the 10 holds the 10 keeps holding the 10 is above the 10 for a little then bounces off the 20 Again by the penny and it makes these higher lows so it just does not want to go lower it just literally like it doesn't want to go lower a single bit and then as it's going sideways you can't really tell until I like zoom out but you can see that the volume is slightly declining here and it didn't really tighten up all that much as I would have liked it to but breakout just had huge volume right off the rip so I did take it and I did make money on this I mean like a few thousand bucks pretty simple right let's see what else can I go over what are some other setups um hmm I think as far as setups go [ __ ] I keep doing that I think as far as setups go that would be about it maybe some that are setting up recently now these are a little more complex okay Groupon's starting to set up so it's recently made over the past three months it's made of 350 move it's now above the 200 um all moving averages are inclining and they're in order so now I'm just really waiting for this to tighten up the volume on it it's a little weird looking it's a little bit thin um not the like most liquid stock so it's really not the best but it's definitely a candidate right now let's see what else what is something else that I traded it was carbana I know I've traded Tesla mainly our release on that I can't even think right now all right that was a different type of setup aehr there's been some setups here uh kind of variations okay Indo that's something that we need to go over this was actually dollar value probably one of my biggest trades so this comes down to the context of it but this is a really good setup so you guys remember GameStop this is about the GameStop size move this went up 1700 after Breakout that's why the context is extremely important so this looks like you know a kind of [ __ ] setup honestly like but it makes a 250 move in like two days and it pulls back right to the 10 and 20. holds a 20 and it tightens up and the volume this is just such a thin stock it was very a liquid or not very liquid it had some to it but it's just a very thin stock um it's been holding up it's been doing you know fairly decent and then it broke out on high volume and it made these higher lows it didn't want to go lower how the moving averages pretty well and it just made these lower highs like it just came to quite the perfect pinch here and it was in a good sector and then it ended up going up 1700 percent so that's why context is extremely important like that might not be the best setup but sure as I got you some good gains right can't complain about that um let's see what else CTI this recently had a good setup so this is in the energy sector which right now has been I'd say the leader it's been pretty good but as you can see it just goes straight up so you're waiting for the stock to make the move like you're not sitting here trying to predict stocks or anything like that like try to do that and tell me how far you get you just react to What Happens so this goes up 100 in one month then what happens where does it go what moving averages does it pull to you can see this whole time gets extended pulls back to the 10 a little comes away a little bit pulls back to the 10 perfectly gaps up and it's still extended then it pulls back to the 10 right here pulls down to the 20 holds the 20 Titans up builds higher lows and these candles you know start to get relatively thin at the thinnest but volumes dying out as this price is going sideways next day breaks out high volume and then it continues up and now it looks like it's starting to set up again almost it's pulling to the 10. might be the end here but that is pretty good I see another setup right here again pretty big move up like 60 in a few days go sideways holds these moving averages to 10 and 20 and just doesn't want to go lower tightens up a bit and then breaks out on high volume so as it's going sideways the volume uh is not really declining kind of it's not the best setup example but you guys get the point so stock goes up makes you know a pretty big move on big volume in a short period of time and it goes sideways then it pulls to the moving averages and it tightens up and it breaks out and let's see is there anything else yeah I mean realistically the best one to study recently is going to be Nvidia it is a lower ADR like I said so ideally it's not something that I would prefer to take but the options chain was very liquid on it so worked out worked out in our favor um yeah but like I said you know that bottom line is basically drawn for you by the 20. it's just perfect and it gets really tight before breaking out so let's see all right before we end this video let's go over the checklist again so the stock has enough volume it makes a big move up then it goes sideways and as it's going sideways you want to see it pull to these moving averages the 10 and 20. if not if okay can I speak English it can go just to the 10. that's fine it'll take off again whatever totally fine but it can pull to the 10 it can pull to the 10 and 20 or just the 10 and then as it's going sideways you know this volume is declining and then you want to see it build these higher lows and then start to tighten up and that's pretty much it um yeah and then avoid biotechs like I said at the start of this all right so next video is going to be like let's see I got this huge notes thing next video will probably be how to actually trade these um so now that you know like what setup to look for it'll be how to actually trade them so how much money to put into each trade where to put your stop losses how to take profits um and then after that I'll show you guys how to like trade them with options rather than shares and then after that I'll show you guys how to actually find these setups so how to use the scanners or even make your own scanner on whatever you prefer to use and then um market conditions sector rotations making sure that you're selecting the right setup so even though it is a good looking setup it could be in a bad sector which makes the setup bad there's you know different things and then bad setups can be good if they're in the right sector so it really just depends on a lot of things it's all about the context but yeah hopefully you guys understand you know what a good looking setup is and you can identify them maybe go type in some charts and just type in a random ticker you can go to let's say AMD or Tesla and go back and look for setups I see I don't really see many here I see one I see two one back here so I'll get that really quick yeah just go back in your chart and um go look at the setups the more practice you have the easier it'll be so this makes a 45 move in a month pulls to the 10 and 20 holds it and builds these higher lows gets really tight see that really tight day right before it breaks out that's perfect volume's declining as well next day breaks out on big volume big strong breakout closes near the high Perfect all right so let's see that was about 30 minute video God damn I will see you guys in part two all right

all right guys this is gonna be part one I just got absolutely whooped on Clash Royale that&#39;s sick anyways so part one this is gonna be um setting up the charts breakout setup you know what indicators you need time frames that you&#39;re gonna look at and yeah just kind of reviewing the setup so number one before we go over anything any indicators anything like that when you&#39;re looking for a setup make sure that it doesn&#39;t say biotech it better just not be a biotech so biotechs are going to be Healthcare biotechnology so if it&#39;s in this sector just don&#39;t trade it don&#39;t ask why actually well I&#39;ll tell you why because they just gap down left and right I don&#39;t know why they do it um but they do let&#39;s try to find a biotech really quick it&#39;s just up a million percent and shot a biotech that&#39;s not there&#39;s a biotech so you see how these are just like gapping it just gaps all over the place they&#39;re usually really small caps through this [ __ ] so don&#39;t trade biotechs all right now that that&#39;s over let&#39;s go let&#39;s see so indicators what indicators do you need well you don&#39;t really need all that many um it&#39;s pretty simple I just use the 10 20 50 and 200 simple moving average on the daily chart which this is where I mainly look for setups and then I have volume that&#39;s pretty much all you need you don&#39;t really need any indicators here on the five minute or the hourly or the one minute I do have some so I have the 9 20 and 65 EMA on the hourly which I use pretty similarly to how I use the 10 20 50 and 200 on here one minute um I could probably delete that I don&#39;t even use it five minute um I use this for entries so that stays on the right like let&#39;s say I&#39;m working on a setup starts to break out then I&#39;m boom I&#39;m here looking for an entry but we&#39;ll go over that in a different video for now let&#39;s go over the setup so add these indicators 10 20 50 200 simple moving average on the daily chart look for setups on the daily chart that&#39;s it don&#39;t look for them on uh the weekly the monthly the hour the five minute the one minute and the dailies are gonna be the best so just go with that you can start to change up time frames as you get better at this and you should be better at this by the time that this Series has ended but for now just keep it simple just go with the daily chart and pay attention to volume so for the setup let&#39;s go ahead and let&#39;s put this over there so for the setup I&#39;m going to use carbana for example typically I wouldn&#39;t trade a stock that&#39;s below the 200 SMA on the daily chart um because that just means that it&#39;s relatively weak once it starts to go above the 200 and the 200 starts inclining that&#39;s a good indication that this is a strong stock uh yeah that&#39;s pretty much so that&#39;s how you&#39;re going to use that 200 200 is just going to be your overall trend if it&#39;s declining and it&#39;s below the 200 it&#39;s probably a weak stock if it&#39;s above the 200 and the 200s inclining it&#39;s probably a strong stock so that&#39;s definitely something to look for um down here you&#39;ll if you&#39;ve already watched some of my videos you&#39;ll see that there&#39;s a setup right here and I did trade this one it was below the 200. I&#39;ll show you guys when I trade them like that but for now let&#39;s just go over the stronger setup right here so there are there&#39;s one set up here there&#39;s one set up here um but the bigger picture setup right the bigger one that we&#39;re looking at that made probably the bigger move uh or like easier to trade easier to identify easier to spot easier to catch whatever right this is the one that you probably would have been focused on so the stock has enough volume right step one so make sure that it has enough volume you don&#39;t want to see a really really thin stock uh let me try to find that really quick so if we look at the five minute here you can see these candles are pretty liquid right they&#39;re all forming properly and N is probably thinner so this is a thinner looking stock now this is like okay for smaller accounts but the breakout follow through isn&#39;t going to be as good on this one breakup Fallout 3 was good but let&#39;s just say avoid stocks that look like this on the one minute where they have like no volume for some candles um sometimes it&#39;s okay like it really does depend on how small or big your account is like if you have a pretty small account like you&#39;re fine just make sure it&#39;s got a decent amount of volume and it isn&#39;t like if you click on the one minute there aren&#39;t too many of these gaps like something like this would be okay for a much smaller account for me I&#39;m not [ __ ] buying that because let&#39;s say I buy like 12K shares like you&#39;re gonna see me buy this it&#39;s going to go up a bunch it&#39;s just not liquid enough for me to trade let&#39;s go over the setup so the setup is very very simple stock has enough volume step one um it&#39;s a decent price you don&#39;t want to see a stock that&#39;s like five cents like come on be real um and then ADR should be above five percent there are times when I when I&#39;ll trade lower adrs like Nvidia for example you guys know my biggest trade it only made in like 11 move on this breakout 12 move in three days and it only has a 3.79 ADR so typically that&#39;s something I would avoid but the options chain is pretty good on it and it had good risk reward so what we want to see above five percent ADR or why we want to see above five percent ADR which stands for average daily range is because that usually gives us a better risk to reward but when trading options like you know that can be adjusted a little bit on some of the larger caps I&#39;ll go over that in what part like three maybe part four uh it really just depends but yeah for now so the setup I&#39;m going to show you guys quite a few examples and then I&#39;m going to show you why I have these moving averages on how I look at the volume kind of how I analyze the stock so it&#39;s really simple it&#39;s really not that difficult it&#39;s going to take you a little bit to get used to it but just watch this video over and over and over and just continue to watch my videos and you will figure it out so stock makes a 300 move right in about a month we know that that is probably good so it&#39;s going up on high volume and it&#39;s just like made a big move so what happens after a big move like this well the soccer is going to go sideways it&#39;s going to consolidate and it&#39;s going to build a range if there isn&#39;t a price range like if just go sideways a little bit and then just continue to back up like whatever ignore it but when it builds a nice range like this you have to pay attention to it because you&#39;re waiting for the breakout and this is how you&#39;re going to make a lot of money this one you can see up sideways up sideways up sideways but if you look at like a bigger picture it&#39;s just up and then sideways again so you can kind of ignore this if you really want to but yeah you&#39;ll see that let&#39;s see make sure the webcam is not nowhere and then let&#39;s make sure let&#39;s go how does that look that looks pretty good okay so like I said before 50 times 300 move in like a month and then after it makes that move so it comes above the 200 SMA um typically you want to see the moving averages already in order like you&#39;d want to see it setting up like this like 10 20 50 200 all of them are inclining and they&#39;re all in order um this is kind of a setup right there but this was day before earnings so you&#39;re not going to trade that I&#39;m getting too ahead of myself anyways big move up stock goes sideways and as it goes sideways you want to see how it holds along the 10 and the 20 moving average and in this case you can see that the 10 and the 20 it holds it perfectly so it comes back to the 10 holds a 10 for like two days comes down then almost goes to the 20 then bounces back up right above the 10 Again bounces back down to the 20 then breaks out so if we were to just look at the setup right here you can see that this 20 is almost drawing that bottom line for you and it&#39;s building these higher lows so that&#39;s really important you want to see these higher lows being built because if the stock is like if you get you know a setup like this or it&#39;s just channeling down or something like that that&#39;s not as good as if it&#39;s coming to a pinch like this where it&#39;s building higher lows and lower highs so that is going to be the better setup and it just means that this is getting bought up so like institutions funds Banks whatever the [ __ ] you want to call it like who cares who&#39;s buying it all you have to know is people are just buying this up and it&#39;s not going lower so it&#39;s likely to continue hard now what we have big move up goes sideways and then as it&#39;s going sideways you&#39;re going to notice that this volume starts to decline so over the days the volume is just getting lower and lower and lower and the stock is getting Tighter and Tighter and Tighter so it&#39;s tightening up and then it builds these higher lows then you typically will see a few of these narrow or you know thin candles right before a breakout so you&#39;ll see a candle like this candle like this um even this one&#39;s decent and then you know next day ended up being breakout day typically before a breakout what you&#39;ll see is a negative so a red candle like a red day or a thin candle um but realistically all you&#39;re looking for is you want to see this and then you want to see the price go like that so you want to see the price build this flag looking thing right and then you want to see it come to a pinch and the tighter it gets the better that&#39;s a little strange sounding but um anyways if we look at Nvidia so Nvidia market leader at the time um a liter of the tech sector and Tech was a leading sector at the time like I said you know as we get more advanced or as we get further in this series we&#39;ll get more advanced but what we have here is a big move up so for the past six months I&#39;d say yeah past six months this stock was really strong and made a 200 move it was leading the tech sector and then it had good earnings here so it gapped up and when this gapped up what happens the price pulls back to the moving average it pulls to the 10 right here holds the 10 builds these higher lows you know it gets it just keeps going higher and then it gets this you know somewhat thin candles right here breaks out so this one I don&#39;t think I traded this one I don&#39;t remember uh I really don&#39;t think I did but then it made a little move up pulled right back to the 10 and this day it pulled to the 20. now what&#39;s interesting about this setup and why this was like the best setup and why I made so much money off this I made 8 500 on options like that&#39;s [ __ ] huge but you can see that this 20 SMA like this is almost drawing your bottom line for you it&#39;s holding the 20 so good like it&#39;s absolutely insane I hope you guys see that right yeah you can see that so it&#39;s holding the 20 like insanely good this 20 is basically drawing [ __ ] I just like kicked my whole desk the 20 is basically drawing this bottom line for you and if I were to draw a line it&#39;s like it&#39;s just overlapping on that 20. so when you hear people talking about like oh trend lines like your trend line is going to be different than the next person&#39;s like dude who gives a [ __ ] the way that you identify if this is breaking out of the trend line is you look at the volume now let&#39;s look at breakout day so breakout Day volume&#39;s High before breakout day this stock is you know building lower highs and higher lows it&#39;s coming to this pinch so no matter I could put this line down here it doesn&#39;t matter I can still identify what&#39;s going on here I can still identify that this price is holding the moving averages properly it&#39;s tightening up and the volume&#39;s dying out after it makes this big move right pretty simple pretty simple concept so then boom it breaks out and that&#39;s when I bought it um I&#39;ll go over like entries and everything all that later right now is just the basics of the setup and why we have these moving averages how to use them whatever and I&#39;ll also I&#39;ll post the link to my layout uh so you&#39;ll get all these scanners you&#39;ll get the risk calculator all these indicators will already be on you&#39;ll have you know the monthly weekly one day and then the one hour five minute one minute your alert console so the layout will be the exact same as mine I&#39;ll post the link to this you have to sign up for tc2000 I&#39;ll put the link to sign up too it&#39;s like I think it&#39;s like 40 bucks a month if you can&#39;t afford that like realistically you probably shouldn&#39;t be trading 40 bucks a month is like what that&#39;s like a little over a dollar a day you could probably just stand in the street and ask for money if you really needed to but yeah if you can&#39;t afford tc2000 you probably shouldn&#39;t be trading um I&#39;ll just say that you don&#39;t really need a ton of money to start like you can start with a few thousand dollars you should be able to afford tc2000 if you have a few thousand dollars uh but yeah like I said anyways so good setup right big move up stock goes sideways as it goes sideways volume is declining and then it holds these moving averages perfectly and then it tightens up and we get this really thin uh red day right before it breaks out so that&#39;s a good example right there let&#39;s see what was another one did Zoom have any setups pretty sure Zoom had a setup before okay zoom&#39;s got to set up towards the top um this was you know in the covet days so this is obviously right like you guys can tell why it&#39;s important to focus on strong stocks that are leading and not only are they leading but they&#39;re in a leading sector so Zoom when this was um leading at the time why was it leading because everyone&#39;s using it during covet like it was just money was flowing into this and how do you trade this you wait for a setup this is a setup right here at the top uh that was probably breakout day might have been a little harder to identify but you can see here that it makes this big move up so it makes this like 115 move at the time the ADR was much higher than three percent um but yeah it makes this big move up so it makes 125 move in about 1.4 months go sideways builds this tight range and it makes these higher lows right along the 10 SMA and then it has these narrow candles right before it breaks out volumes really well how do you know it broke out well because volume is big on breakout day and then it ends up just continuing higher for a little bit and it comes right back down to the 10 and the 20. and you can see it holds right there you can see it holds um the 20 for a few days before eventually going lower which I&#39;ll tell you guys exactly when to exit these how to exit them how to enter you know everything but for now like I said this part is literally just so that you can identify the setup as a setup right there breaks out right there sometimes they&#39;re harder to identify okay here&#39;s a good setup this was right when is this can this get any slower like realistically okay this was right right when Zoom started picking up so most people probably had no idea that this was picking up but maybe the usage of Zoom started to pick up for some reason people are investing into this and what you&#39;ll see here is it makes a 30 move so thirty percent that works that&#39;s fine um as long as it&#39;s you know a relatively big move up and it goes sideways and it holds this moving average so it held the 10 right there on the penny like directly on the penny right there and then breaks out so it has this thin day [ __ ] so honestly you could have even got away with that being breakout day but you can see that this you know makes a big move up goes sideways as it goes sideways this volume dies out and then the candles start to get thin and it it&#39;s pulls right back to the 10. um you know next day bounces off the 10 right there on the penny and that would be technically breakout day right there and you would have been in it since for quite a while actually you&#39;d have been in it until there but as you can see right you&#39;re looking for this that&#39;s it stock goes up goes sideways builds higher lows and or higher lows and lower highs I don&#39;t know why I just like reverse that very very simple concept but sometimes it is very hard to identify so for now just like go through as many charts as you can look back try to identify those see how they hold up on the 10 and the 20. and that&#39;s pretty much all you need to do like carvana or actually really quick so carvana this was declining right this was it took an absolute turret it was down 99 and then out of nowhere it got this bounce so out of nowhere I got this bounce right all the moving averages we&#39;re declining uh the 10 and 20 started to Incline but these were declining you know this is overall kind of shitty you just have to understand like the context of the setup but I mean it&#39;s still kind of shitty so then what happens it makes a 81 move in two days and then it comes up here sets up right above the 50. so it holds the 50 pretty well as you can see and it does make higher lows ever so slightly candles start to tighten up then it breaks out on high volume so up sideways as it goes sideways volume dies out breaks out high volume and this ends up making a you know fairly decent sized move from breakout that&#39;s a 166 percent in six days I believe that got me multiple thousands of percent as well uh that got me 3 700 but I I traded that and then I was out here took an hourly setup and then that anyways you can see setups are pretty much everywhere it just really comes down to the context of it you know which ones are going to be better than others but for now how many times do I got to say it focus on the setup learn the setup first there are variations to the setup not every time will it be one that holds the moving average so you can see right here there&#39;s a setup right there um which you know ended up breaking out here and going up a little bit then setting up right here again so that was the most recent one if you guys look at this we have a 37 move in just a few days candles are getting thin you know it pulls down to the 10 bounces off the 10 holds the 10 perfectly then we have this um attempted breakout day I don&#39;t I think I may have bought it or tried to buy it this day and I ended up getting stopped out uh but then the next day we ended up getting this I alerted it on Twitter for free for you guys and this was like 600 700 something like that uh in just a single day so that was a good trade right there you can see like that&#39;s a seven to one wrist reward in one day that&#39;s that&#39;s really good you just have to understand which setups to choose um and yeah not all the times will they be the best looking setups uh that perform the best it really is about the context of it which is why I&#39;m gonna make that whole different like section on understanding the context of the setup and understanding where the market is at the period of or at the time and then understanding like sector rotation how to find leading sectors and then how to find leading stocks in those sectors but Nvidia absolutely perfect example right I hope you guys really really take a look at this one because that is a beautiful looking setup it&#39;s leading sector leading stock in a leading sector with a beautiful setup can it get better than that not really it really really can&#39;t damn I&#39;ve been recording for 20 minutes already okay let&#39;s see what else what else can I go over for you guys um what are some other Tesla has had some setups uh AI not exactly NN this was a recent one I traded so you&#39;ll see here that this makes you know a fairly decent move this is a 75 move goes sideways um and then it comes down hits the 20 a penny away it&#39;s a penny away from the 20 right pulls back right to the 20 bounces up grabs the 10 holds the 10 keeps holding the 10 is above the 10 for a little then bounces off the 20 Again by the penny and it makes these higher lows so it just does not want to go lower it just literally like it doesn&#39;t want to go lower a single bit and then as it&#39;s going sideways you can&#39;t really tell until I like zoom out but you can see that the volume is slightly declining here and it didn&#39;t really tighten up all that much as I would have liked it to but breakout just had huge volume right off the rip so I did take it and I did make money on this I mean like a few thousand bucks pretty simple right let&#39;s see what else can I go over what are some other setups um hmm I think as far as setups go [ __ ] I keep doing that I think as far as setups go that would be about it maybe some that are setting up recently now these are a little more complex okay Groupon&#39;s starting to set up so it&#39;s recently made over the past three months it&#39;s made of 350 move it&#39;s now above the 200 um all moving averages are inclining and they&#39;re in order so now I&#39;m just really waiting for this to tighten up the volume on it it&#39;s a little weird looking it&#39;s a little bit thin um not the like most liquid stock so it&#39;s really not the best but it&#39;s definitely a candidate right now let&#39;s see what else what is something else that I traded it was carbana I know I&#39;ve traded Tesla mainly our release on that I can&#39;t even think right now all right that was a different type of setup aehr there&#39;s been some setups here uh kind of variations okay Indo that&#39;s something that we need to go over this was actually dollar value probably one of my biggest trades so this comes down to the context of it but this is a really good setup so you guys remember GameStop this is about the GameStop size move this went up 1700 after Breakout that&#39;s why the context is extremely important so this looks like you know a kind of [ __ ] setup honestly like but it makes a 250 move in like two days and it pulls back right to the 10 and 20. holds a 20 and it tightens up and the volume this is just such a thin stock it was very a liquid or not very liquid it had some to it but it&#39;s just a very thin stock um it&#39;s been holding up it&#39;s been doing you know fairly decent and then it broke out on high volume and it made these higher lows it didn&#39;t want to go lower how the moving averages pretty well and it just made these lower highs like it just came to quite the perfect pinch here and it was in a good sector and then it ended up going up 1700 percent so that&#39;s why context is extremely important like that might not be the best setup but sure as I got you some good gains right can&#39;t complain about that um let&#39;s see what else CTI this recently had a good setup so this is in the energy sector which right now has been I&#39;d say the leader it&#39;s been pretty good but as you can see it just goes straight up so you&#39;re waiting for the stock to make the move like you&#39;re not sitting here trying to predict stocks or anything like that like try to do that and tell me how far you get you just react to What Happens so this goes up 100 in one month then what happens where does it go what moving averages does it pull to you can see this whole time gets extended pulls back to the 10 a little comes away a little bit pulls back to the 10 perfectly gaps up and it&#39;s still extended then it pulls back to the 10 right here pulls down to the 20 holds the 20 Titans up builds higher lows and these candles you know start to get relatively thin at the thinnest but volumes dying out as this price is going sideways next day breaks out high volume and then it continues up and now it looks like it&#39;s starting to set up again almost it&#39;s pulling to the 10. might be the end here but that is pretty good I see another setup right here again pretty big move up like 60 in a few days go sideways holds these moving averages to 10 and 20 and just doesn&#39;t want to go lower tightens up a bit and then breaks out on high volume so as it&#39;s going sideways the volume uh is not really declining kind of it&#39;s not the best setup example but you guys get the point so stock goes up makes you know a pretty big move on big volume in a short period of time and it goes sideways then it pulls to the moving averages and it tightens up and it breaks out and let&#39;s see is there anything else yeah I mean realistically the best one to study recently is going to be Nvidia it is a lower ADR like I said so ideally it&#39;s not something that I would prefer to take but the options chain was very liquid on it so worked out worked out in our favor um yeah but like I said you know that bottom line is basically drawn for you by the 20. it&#39;s just perfect and it gets really tight before breaking out so let&#39;s see all right before we end this video let&#39;s go over the checklist again so the stock has enough volume it makes a big move up then it goes sideways and as it&#39;s going sideways you want to see it pull to these moving averages the 10 and 20. if not if okay can I speak English it can go just to the 10. that&#39;s fine it&#39;ll take off again whatever totally fine but it can pull to the 10 it can pull to the 10 and 20 or just the 10 and then as it&#39;s going sideways you know this volume is declining and then you want to see it build these higher lows and then start to tighten up and that&#39;s pretty much it um yeah and then avoid biotechs like I said at the start of this all right so next video is going to be like let&#39;s see I got this huge notes thing next video will probably be how to actually trade these um so now that you know like what setup to look for it&#39;ll be how to actually trade them so how much money to put into each trade where to put your stop losses how to take profits um and then after that I&#39;ll show you guys how to like trade them with options rather than shares and then after that I&#39;ll show you guys how to actually find these setups so how to use the scanners or even make your own scanner on whatever you prefer to use and then um market conditions sector rotations making sure that you&#39;re selecting the right setup so even though it is a good looking setup it could be in a bad sector which makes the setup bad there&#39;s you know different things and then bad setups can be good if they&#39;re in the right sector so it really just depends on a lot of things it&#39;s all about the context but yeah hopefully you guys understand you know what a good looking setup is and you can identify them maybe go type in some charts and just type in a random ticker you can go to let&#39;s say AMD or Tesla and go back and look for setups I see I don&#39;t really see many here I see one I see two one back here so I&#39;ll get that really quick yeah just go back in your chart and um go look at the setups the more practice you have the easier it&#39;ll be so this makes a 45 move in a month pulls to the 10 and 20 holds it and builds these higher lows gets really tight see that really tight day right before it breaks out that&#39;s perfect volume&#39;s declining as well next day breaks out on big volume big strong breakout closes near the high Perfect all right so let&#39;s see that was about 30 minute video God damn I will see you guys in part two all right

Transcript for:Chart Breakout Setup

Transcript for:
Chart Breakout Setup