What's going on guys welcome back to the channel we're gon na do a quick review on the stock bbig. I think we could be seeing a bull flag, breakout, a new bull flag, just starting the very early stages of a potential reversal. However, you want to categorize it. That is completely fine, but i would love to review that with you guys in tonight's video.

What we'll also do is use the stock iron t as an example to learn from i guarantee just a couple weeks back had recently set up and broke out in that same setup, iron t did. We are starting to see the potential beginning phases on bbig. I can almost guarantee you in the event bbig breaks out. It won't be exactly the same as iron t and they're not going to play out exactly the same, but i'll show you why i keep saying they're very similar.

So let's go back and look at iron. T the analysis and what you'll learn here on iron t is going to be a hindsight. 20 20 analysis from what you learn there you're going to use that as your foresight, guidance going forward on bbig and if, in the event, the same things that you see in iron t which we review happen on bbig, then you should garner some confidence to maybe Take a trade or follow it uh, just pretty much with more confidence all right. So with that being said, let's get into iron t now.

I have to say you won't see, or the levels on iron t have changed since it's been a couple weeks. So i'm gon na draw a couple levels on the chart and you're just gon na have to trust that at that moment in time in the market with iron t, this is how it was set up. I will draw it for you now back a few weeks. We had a setup like this okay and i'm gon na color code, these, if you're new to my channel, that's okay, just make sure you pretty much continue watching these videos and you'll get the hang of everything i'm doing and if you're older, then you know exactly What we're doing so a couple weeks back? This is the way that iron t was set up.

It had negative one deviation trend here and negative. One deviation trend here you might be saying what the hell is that since you're new to the channel, that is this yellow trend line that you see here on the screen to the right. The screen to the right is the stock bbig. These colorful lines you see on the chart are a predetermined statistical trend system that is automatically plotted on the chart, because humans again make lots of mistakes and well.

My brain doesn't know how to do this so yeah, i piggyback off a computerized algorithm that will just predetermine all of these levels. For me, i'm sorry, my brain just doesn't work that way and i need a computer to do it for me but hey when it works. Well, it works well. So with that being said, just you know kind of trust this video.

So you see, we have this predetermined, yellow trend line right there. Okay, so let's add it boom. Then we will go to the one-year day chart between 180-day four-hour time frame on td, ameritrade, snickers swim and a one year, one day time frame on td, ameritrades, think or swim. I can generally find almost all of the important levels for a stock that i truly need to focus on for the day, and i can pretty much just disregard everything else and i'll show you what i mean so now that we've changed the time frame to the One year, one day and we plot another trend line like this and we color code it.

You are now no longer confused as to how we determine the trend lines here on iron t. So, a couple weeks back, the trend system that i just showed you on iron t was set up in a way that it provided two trend lines that specifically were plotted like this. Now, if you actually just have a little fun and draw a picture, you can see that clearly, a bull flag takes place right in between the two trend lines you can see. The market goes up, it pulls back it bounces back up to test the trend.

It dips again goes back up to test the trend, pulls back and goes back up and eventually breaks out. So if you want to call that a pennant or an inverse head and shoulders which starts from here left shoulder head up right, shoulder neckline break, that's completely! Fine too they're both bullish formations, but nonetheless that pennant pattern and that inverse head and shoulders formation that start to occur channel in form in between two specific trend lines at that moment in time, which, at that moment in time on iron t just a few weeks Ago was the negative one deviation on the one year, one day and the 180 day four hour time frame, so using that same logic, fast forwarding over to the screen on the right and using bbig as an example, we now have two trend lines very similar to The way we had them on iron t except they're, broadening to the upside as uh as opposed to closing um into a pennant which we may or may not discuss too much about. So when i look at say a five-day 15-minute chart. How is this trading so far? We have come down to the trend line bounce.

We have gone below that trend line bounce a little bit bounce a little bit. Nonetheless, we we've come up and above and we have kind of pushed all the way to the top trend line. Now so aside from that, you can see, this market has broken the trend line down here and we've moved to this one. I could try to tell you the future six different ways, but nonetheless, what we're really looking for here on bbig is over the next couple days, if not maybe a week or so, we want to see if a bull flag happens in between these channels like this, That eventually holds and breaks out of the top trend line.

We will look for an inverse head and shoulders pattern in here. We will look for just a momentum break above that trend line the whole idea is it doesn't really matter what convinces you that it's bullish as long as you view it as bullish when it's breaking out, if it's breaking out what we could see as already described, Is a inverse head and shoulders formation or a bull flag formation, but whatever it actually is, doesn't matter as long as the market on bbig successfully crosses this trend line, which is called a negative one deviation trend with confirming volume we will probably see a breakout just To give you more confidence in opium, do you see this setup on bbig one? Second, you can already see there's an inverse head and shoulders pattern happening. Okay, so the move down to the lower trend line bounce back almost to the top one move down. Now, we've created a double bottom: we'll call that the head pop up back to the top trend line.

This is a resistance mark. You may not know that now, if you're new to the channel but just know it's a resistance mark, because this is a first attempt of breaking it. First attempt moves, typically, don't break so then again we have broken up to it. We will probably try to pull back off of it if we do and it drops all the way back to this trend and bounces back up.

We have created an inverse head and shoulders formation channeling in between negative one deviations on the one year day and the 180 day four hour chart and once and if the market crosses this one here, we will go into a breakout in just one day from now. We're going to have their earnings report a perfect catalyst to potentially break the market out, or maybe continue the downtrend we will see. But nonetheless, as mentioned before, you can see that currently iron t is trading just below the negative. One deviation on the four-hour chart here and if you switch to the daily, you will see that we have just dropped down here and now you might also be saying well, why is this significant here and there look at what it did in the past again we Were down at the negative one deviation, so in the past, we've already done this similar setup.

Now it doesn't look the same, but i can guarantee you that this bottom right here was probably a deviation just like i showed you right now. So, let's imagine that this is what the deviation looked like. So the market came down right, bounced back up came back down, held the support, went to the one deviation again and finally broke above with confirming volume. Okay, think about it.

We went back to the trend line, the top one broke out above it with confirming volume, and you can see we had bullish activity to follow there and after okay, if we go back and we actually look at iron t, let's say on a 90 day: five Minute chart so we can get a really close visual on what the price action looked like on that sort of day and that sort of moment in time. Let's see, let's remove all the old drawings. I said this was going to be quick and it isn't, as you can see, i like doing this stuff, i find it very intriguing trying to analyze the markets, understand the whys, the dues, the don'ts, this that and the other, and i have a lot of fun With it - and i try to bring it to your guys attention as best as i can, with as much detail as possible. So now when we take a step back and we kind of look at the way that that system traded, you can see, we came down.

We bounced to it, we pulled away from it. We tried to break above it couldn't got rejected, swung all the way down to the lower side of the channel got bottomed on it. Bounced up started trending back again tried to break out, couldn't pulled back, pushed back to it during the pre-market session, crashed and then grinded up throughout the remainder of that day's trading session, to create a wedge on the day that ends up breaking out through the negative One with what confirming volume look at the volume, ladies and gentlemen, look at the volume you have the statistical level. You know where you are significant: you're significant on a successful cross above the yellow line, with confirming volume, so you're no longer confused where you need to look for the action now.

Only thing needed is the action. Okay, you know where to look for the action now. Does the action happen? Follow the volume going back to bbig look at where we're at look at where it's been in the past down here bounce look at where we're at here: okay, so going back over to bbig 10 day 30 minute chart, you know where to look for the action. Do we get the action where's, the confirming volume we have an earnings report coming out in a couple days that could give it the action it could be a day after two days after it may not work at all, but if you guys are following bbig, if You are now going to follow bbig.

Your action level is above 438 with confirming volume. Now, if that isn't enough to get you guys, a tad bit excited, let's go a little further. Now, let's talk about price targets. If this does go rippy mcdippy, where are you going to look to? What are you going to do all right so now that we've covered that in significant depth? Let's take a look at price determination which we can't do a full breakdown on.

So i'm just going to give you guys, you know what i would do. First. Okay, so, like you see here on iron t when it breaks out, what does it do so it breaks out of these yellow lines which, if you look at the the four hour time frame, look at where the bottom one is so. This line that i've drawn here this yellow line - it was that line, but since then it's slowly moved to here so just know that this trend line was probably this one here when we switch to the daily chart or actually it's the other way around.

Excuse me, it could have been it's hard to say exactly, but i think it's the other way around you can see where the daily chart is right here. So the daily chart trend was this one and that one on the four hour, that's all the way down. Here was there blah blah blah doesn't matter, but the concept is you see where the yellow trend lines are down here and you see where the white one is right here: okay and then you see where this white one is right here, those would be the next Two solid trend lines within this script, to locate after the yellow, so applying that same concept to the right. We go to the white trend lines.

These are the next closest long-term, solid statistical trend line levels. Next up in the event, bbig crosses up through this one. So if this is going to break out successfully, we would normally target this breakout here from the 430s up to 593 to 630 and we'll cut the video there. Because again we don't even know if that's going to happen.

So if that does happen, we will then come back and give the next updated video on what you should do going forward. So with that being said guys, i appreciate you tuning in. Hopefully you guys, like this video, an in-depth run at one stock. If you guys really like it, then maybe i'll try to hammer out a few more in-depth videos on specific stocks and plays like that.

So i will see you guys. The next video.