All right. So I want to talk for a few minutes about the fundamental concepts of day trading and how they relate to my favorite trading strategy. So first of all, what are we looking for When we're day trading? We're looking for stocks that are going to move quickly in the direction that we anticipate so we can lock in quick profits with big percentage gains. I Mean that's the ideal scenario.

So how do we find that sort of setup? What? I look for each day in the morning I scan for the Gabor's stocks that are gapping up or down from news overnight. Those are almost always going to be trading on above-average volume when they open, so typically they're gonna set up for some really big moves and they're not all gonna move, but usually within that list of Gabor's we have a few big movers, so those are the stocks that I'm instantly gonna focus on in the morning in the afternoon, I'll focus on the big percentage gainers of the morning and see if they set up for an afternoon breakout or break down. and I'll also focus on any breaking news that that breaks out in the middle of the day because that can send a stock you know, into heavy volume. So the setups that I look for: I'm gonna start with Gap errs, then big percentage movers, and then news and PR Okay, so I know that that's I'm looking for stocks there within those categories.

Okay, so I can scan for the gap err, it's a big percentage movers and I can scan for news, but how do I find an entry, especially on something that's gapping up 20% or more? Okay, so this is where the chart patterns come into play. So for the Gap errs, trading trading really in the first hour to two hours of the day, I'm gonna look to get in on the first pullback. What I really want to see is a nice bull flag formation. So we've got s GMO here and this is a really nice pattern and they're not always gonna be picture perfect.

so I'll go over a few others. but let's start with this one because it is a really nice pattern. Okay, so we've got the gap up so instantly this is gonna be something that I watched on my scanner. you know? I've only got a few items on here and I'm gonna sort by the heaviest volume and this was gapping with pretty heavy volume first thing.

All right? So I'm not going to chase it right out of the gate. so I'm gonna give it a few minutes to just sort of figure out what's happening. So we get a few candles here, moving up very quickly and then we start to get a little bit of pullback. We get that that doji here and then we get two red candles and we're back on the V web.

So this is where I'm gonna think. Okay, we've got heavy volume on the ramp-up Heavy volume here here and here, lighter volume on the sell off so this to me indicates profit-taking versus shorts piling in. Now if you see the the selling volume here much heavier than the buying volume then that's going to indicate that this is gonna go down. So volume is also very key in determining how this chart pattern is gonna play out.

So what I do when I'm entering a bull flag. What I usually am going to do is enter when a green candle breaks the high of the previous red candle. Now in this particular setup, we're right on the view app support so this also has a really nice support right here. but that's not always gonna happen sometimes.

we're gonna get this pullback and we'll still be way above the view app. but in this case we're right here at the view app. So I'm gonna buy on this green candle here as it breaks the high of the red candle. So the high was 1620.

so an entry here would be 1621. It needs to break the high. That's your entry now. Immediately my stop.

It's the low of the red candle. It's still this is a trigger candle. This is the candle that I entered on and as the candle I'm going to use is my egg. I'm gonna stop out at 1606 1605 if the Lowe breaks now because this is the way I enter and this is the way a lot of traders enter breaking the high of the previous candle or breaking the low of the previous candle.

This is also a critical area where anyone that did decide to short this coming down here, it's gonna say okay if this green candle breaks the high of the previous one, I'm out and then you start getting some short cover. So what you'd like to see ideally is these green candles here to be higher volume than the red candles during the pullback. Now in this case, we don't have that. We do, however, have steady upward momentum.

so we come up to the high of the day and we break it now. at this point once I'm once, I'm a few minutes into a position and I have profit. I'm gonna adjust my stop I may sell some of my shares as I'm in profit and start scaling out, but I'm gonna adjust my stop now my stop If I'm gonna trade with a tight stop I'm gonna sell when this green candle when a red candle breaks the low of the previous green candle. So I would sell right here.

And the low of this candle is 1665. so 1664. That's the exit. so right there you've got over 40 cents of profit right in that movement.

And these are trays that are very, very consistent. and I'm gonna go in and I'm gonna hit them hard. These are these are traits that I want to take Five Ten thousand, fifteen thousand shares because more often than not, the bull flag is gonna break in the direction of the trend. especially when you have this nice volume pattern.

You've got big volume on the ramp up, light volume on the pullback, or down and support. I've got a relatively tight stop on this. you know, fifteen cents. that's pretty tight.

so I'm gonna risk 1,500 bucks on this. My target for this is gonna be a not only high hitting high of day, it's going to be breaking to new highs and that's exactly what we got. So this could have been a really nice trade. Now, as the day progresses and you move forward in the trade or as the stock is moving forward in the day, the bull flags are not always as powerful I like to get in on the first or the second bull flag.

Now, this doesn't really have a second bull flag, not before noon time. really. We get some pullback, but it's not. It's not exactly the the perfect flag pattern, so I'm not sure that I would have really seen the best entry on this.

I Mean you do have some patterns here, but now we're getting into different timeframes so we're just gonna focus on what I think works best which is trading the bull flags trading the first flag of the day in the first hour of trading. Okay, so that's Sgm. Oh, that was a really solid trade. That's one I would go really heavy on and try to get a nice, nice quick profit.

And I'm gonna focus this on the one minute chart when we're trading in the first half hour in the first hours a day. I'm gonna focus on the one minute chart. Yes, I have the five minute chart here, but my focus is the one minute chart. Okay, so let's take a look at another one.

Let's see. See now I Want to zoom ahead to Friday Okay, so this is a flag that's not quite as pretty, which is why it's good to look over these because they're not always gonna be picture-perfect Okay, so on this one, our first candle here is we've got a red candle, so instantly we know we've got profit-taking We pop-up and then we get some sell-off. And the sell-off here on this candle is actually pretty pretty heavy compared to the buying. So this to me, even though it's a gap, or even though it's a nice setup, this would make me very hesitant on this first flag to get in.

And this green candle here does not break the high of the previous candle. Because this red candle is so big, this one can't break that high. so this one I would keep watching. but I wouldn't enter it here.

Okay, so you let it play out again. we get a little bit of a pop. A little bit of pullback right now. this this isn't just not setting up quite yet.

Okay, so I'm gonna keep this on watch. and what I'm gonna look for is ultimately a new break, a break to new highs. So this my trendline resistance here is right like that. But then we've got draw this trendline here.

This is resistance on the morning and then we've got support on the morning. So what I'm gonna look for ultimately is a potential entry off good support. So as we start getting closer to the Vo app and we start getting above Aviva the View app, we can see that we're testing the new highs. So we come up here the highest.

Thirteen Thirty and forty nine here. Hi! here is Thirteen Fifty one. So we're starting to test the new highs and what we ultimately want to look for is heavy volume to come in. So I want to trade like this when we don't have the really clear flag pattern.

What I would instead wait for is I would wait to see new highs on heavy buying volume and high on this is thirteen seventy high on this is fourteen. So this is where I would start to look. We've got now. We do have some heavy volume here, but we're not hitting new highs I Want to see 1371 print so not 1370 I need to see 71 I need to see a new high of de print.

Now this is the type of flag pattern now with a bull flag. We get that, the nice pop, a little bit of pullback and then we go again. So on a bull flag we can buy on the resistance of the flag trendline so that would be that would be buying. Basically, when this trendline here is broken, this didn't form a good setup because we had heavier volume here on the sell side.

So what we instead focus on is okay. this is still on our Gapper list, so we'll do the flat top. That's where I'm going to look for a potential volume to come in. so if we draw our trendline down just a little bit I Know that the the break of the trendline is significant.

but what I really want to see is a new high of De 1371 that print and that's my entry. It's a new high of De. we've got this ascending support. It's a little bit of an ascending wedge here.

that's your entry and you can see clearly. A lot of other people are watching this because Boom! look at that follow-through. So this is what I'm talking about. Trading stocks that are trading on heavy volume.

A lot of traders are watching it. a lot of professional traders that know what they're doing and this is where the buying comes in. So if you can get to know these chart patterns, you can start to join in on some of these big moves. and again, this is one that I would trade heavy it with a heavy position.

but I would be a little bit more conservative because my stop is gonna be a little further away. So the flat top. It's a good setup. It's not quite as good as a tight bull flag the way we saw in SG Mo, but this is also a really good setup.

Okay, so let's look at a few others. Okay Fran this was a gap around Friday Got the nice bull flag here. Okay, so we've got our trendline, that's support. So first thing we got in the morning we get this nice pop alright and we start to get a little bit of sell-off.

But look, the volume is light. It's not heavy volume the way we saw it. Not see how we got this head these heavier volume bars. This is not as pretty looking.

Fran This looks nice. We're still green on the day we haven't. We haven't broken the open price. Okay, so we got a little bit of pullback.

It's light volume. This is nice and clean. This is orderly. This green candle here breaking the high of the previous candle.

The high was 20 98. 2099. That's the entry heavy volume. Coming in, you can see that you can see other people are watching.

This heavy volume comes in and you blast up to almost 20 150. Again, my exit indicator is a red candle breaking the low of the previous green candle. That's gonna be right here Now the low of this candle was 21 30. So 21 29 is that 30 breaks.

That's my exit. So even if that's only 30 cents on this particular setup, in most cases, I'm gonna sell into profit. So I'm gonna take profit along the way and I'm gonna bail in my final position when that level of support breaks. Now this is using a one-minute stop because I'm using the one.

Well, this is actually a two-minute chart. but what I would typically use is a one-minute chart. I'm using two minute on this so I can scroll back a little bit further. But but let's so let's say okay, this is a two minute stop.

Now if you want to be more aggressive in your position, you can start using a 5-minute stop and you won't stop until a candle breaks the low of the 5-minute candle. The problem with that is that you have to go a little bit lighter because you've got a bigger range on the 5-minute chart. These 5-minute candles have big range, so taking five thousand shares it's gonna be too much swing. So this I'm gonna go in heavy and I'm gonna probably jump right out.

Most of my trades are quick so this right here is a really good one. And this is the type of setup that I look for again and again and again. So each morning I'm going to call these out in the chat room. I'm gonna say that I'm looking at the gap errs is the Gap errs I'm looking at we've got Fran we've got C now we've got s GMO and I'm just gonna watch all of them I usually keep three or four on a separate chart and I just watch them really closely and as soon as I start to see that flag pattern I'm gonna go in I'm gonna go in heavy and I'm gonna let you guys know you're gonna know in the chatroom that I'm watching this I'm watching it closely and this is the entry I'm looking for, so hopefully that helps send me a message if you have any questions.