All right welcome back everyone today we're going to be talking about one of the top setups that i go over pretty much every pre-market, prep and very, i think i think, basically, every weekly watch list when we talk about these swing trades - and i don't know if I've ever done a video explicitly breaking it down, so today we're going to be talking about the weak, open red degree - hey everyone be sure to like share subscribe, ring that bell to be notified as soon as we drop a new video and, most importantly, if you're Looking to learn more about trading beyond these short videos, we do a lot here, how to's patterns a lot of this stuff, but definitely check out the steady trade team click the link below two webinars every single day, an archive fully searchable archive of over 3000 webinars. All with notes all with annotations, all deep linked to other webinars, it's a great great, great way to really master trading check out the steady trade team, all right. Let's talk about the week, open, ready, green and what criteria go into it. So, like i said, i talked about this setup, a lot with the big gainers of the previous day, but where we really look for it is uh for these swing trade sets.

You know quite frequently these real stocks, as we call them. You know there's always risk out there, but when you're talking like stocks with actual revenue - oh you know the actual businesses um, you know versus the penny stocks. So this this pattern can be applied depending stacks um. But to me it's more applicable to again those real stocks that people keep trying to.

You know, and you know where we talk about these short squeezes, but where people keep trying to guess the top, especially on those first red day, type scenarios. Okay and the first red day pattern is a great pattern for short sellers. If you have discipline now, what i have seen over the last couple years is a lot of people. You know again they try and guess on that first red day, especially early in the morning, and they pile in early stock, grinds back towards green and then explodes higher.

Like dave a recent ipo that we're led, then i'm going to use an example today. Dwac has been a great example for two weeks running and what's awesome about this pattern is as long as the stock closes at or around the high of the day. Okay, that's criteria number one. This is a pattern that can repeat for days and days and weeks i mean the one of my favorite examples of like the most glorious week.

Open red to green ever was jks a couple years ago would have been fall 2020 a year and a half ago i mean look at these green days. I mean i can't i won't count. What is this from september 8th and then it had it. Finally, had the first red day, uh october 21st, so six weeks, basically six weeks every day that this stock opened red, it would close near the high today and just punish shorts and funny shorts and then even look yeah.

You could say there's a couple red days, but look at these candles classic doji candles. I mean it closed red on the day, but what one percent two percent right on the day that gaps up and goes the next day, so jks is just a cl again back to fall. 2020 was just a perfect example of this. I mean look: how glorious that thing is just for six weeks.

Think about it. You traded a red to green. For six weeks. You had two losing days a couple percent.

Anybody want to try that pattern. It sound like a good way to grow your account. So anyway, let's talk about the criteria and number one: the criteria is closing at or around the high of the day, so you can see dave. This is back to friday previous day.

Where did it close? Basically, at 9 65, the high of the day was 9.82. Okay, we're talking 20 cents on a 10 stock that is at or around the high of the day, then we're also looking at breakout limits. Okay, so dave is a very cool example, because this is a recent ipo. This just started trading uh on the sixth.

So, two and a half weeks ago, roughly but again notice this close on friday, 52-week high, so criteria number two multi-week multi-month multi-year, breakouts, ideal, all-time highs and we'll see that a lot in this market now again dave's unique because it's a recent ipo. But a lot of these setups dwac was another one where it kept closing at a 52-week high, all-time high other than the crazy spike dwac. If you look back day one when it started training, it went bananas. I kind of i delete that one nutty day.

You look at the other days. It still kept closing at those 50 years. So now you've got um a hot sector stock because it is an ipo. They've got um, it's kind of a cool technology type stock.

You know, we've seen these um. You know. Banking plays consumer lending plays. These have been really hot, whether it be a firm, upstart dave uh.

You know, there's real uh, sofi, okay, so criteria, number three hot sector and what's double hot, about dave, also an ipo. So you got that close near the high of the day: big breakout hot sector, cool technology plus an ipo. So now you basically checking every box going into a friday, and this was on the weekend watch list by the way go to stocks of trade. Dot com watch list 100 free in your inbox every sunday but um.

Why did i put it on the watch? I mean listen, you can go back and i'm recording on january 24th it'd be the watch list from january 23rd and you could watch that video. We leave them up, they're all posted. If you could, you might be watching this in the summer or the fall or maybe you're watching it in 2023. There is a reason that dave was on that week, open ready, green and it's all those criteria.

I talked about and what's great about that you can be prepared come monday morning for this setup and listen talk about disconnected from the market. Ah, i mean look at the s p 500. Today i mean. Hopefully you know, hopefully when you watch this, the the stock market isn't at zero.

Hopefully we're not all living in caves. Again, you know the power's out we're we're we're back to the the stone age you know, but but right now i mean this morning. S p 500, bitcoins crashing. It is an ugly day out there and look at dave consistently repeatable setup that we broke down on friday afternoon talked about on sunday opens week, opens down in the low nines goes green at 9 and look at the high of the day of 12 and it's 10, 30 a.m.

Long way from being done, not that you're gon na get the entire move, but there's a dollar two dollars: three dollars a share of upside as of right. Now, okay, we got a long day ahead of us on this setup because it checked all of those boxes: okay, re-watch the video write down these criteria and then the great thing about this setup is listen. Nothing's guaranteed! No pattern. No setup is guaranteed.

Nothing works. 100 of the time, but what i love about these is you have a clearly defined stop, and what does that mean? Let me drop a line basically you're trading the morning lows as your stop, so i dropped that nine or drop that line at nine denoting the market lows so, let's say again, nothing's guaranteed. I want to be clear. I love this setup.

I think it's one of the best setups out there for new traders and i love the way this is disconnected from the market, but you have to have a stop. You have to have a plan, but what's great about this is let's say: dave hit 950. 960. It goes green and fails you stop out at the morning lows: you've now lost 50 cents, a share on a stock that again, as of now, had almost three bucks above that's what you want: okay, maybe you're, selling right now at 10 50..

Maybe you were too slow, it happens and you didn't sell that rip to 12. You just made a buck. A share risking 50 cents, two to one risk reward, not ideal, not always what we look for, but hey think about it. If every trade you made, you got two to one risk to reward.

That's how you grow your account. You know you you make 200, you lose 100, you make 200, you lose 100! You make 200, you lose 100! All of a sudden, your account's! Quite a bit! Bigger and you're going to have losses losing this part of trading and to me it's clearly defined. You know you have to stop out at those morning lows, especially when you see the market tanking like it is, and it gives you clearly defined trade plans and list of rewards and here's the thing. The other thing, let's think about another contingency.

What, if dave, didn't, go green? Okay? What if dave gaps down or dwack, currently gapping down it gaps down and never goes green? You stay safe. I mean you know if you're on free market prep, if you're on the steady trade advisory, my biggest goal is keeping you safe. Okay. Ninety percent of traders fail because they're trading all the time they're trading, non-ideal, setups and they're piling into stuff when there's no confirmation.

So let's say it didn't, go green, don't make a trade! You don't use a day trade if you're under the pdt and you don't lose money by taking a setup that doesn't repeat. Okay, that's what i want you to learn from this. So remember those criteria, write them down and learn. Imt is another example that mesa actually drop me.

A comment. I'd like to know: imte is flirting with reggie green at 12. january 24th. 2022.

What does imte do drop me a comment because this is on behind uh dave and behind dwac. This is another one, and i mean this chart looks exactly like jks. Let me zoom in here and show you what i'm looking at. Let me grab this anything.

Look familiar remember back in early in the video when i brought up jks. Look at this thing: 20 well, 15 green days in a row, and it's still hovering around green. On a day when it looks like we're going back to the stone. Okay, all right! That being said, check out the steady trade team link below and subscribe ring that bell to be notified as soon as we drop a new video and i'll see you next time.