All right. So this might take a minute to get. uh, live broadcasting here. We'll give it just a second.

I'm just going to refresh over here, so thank you for those that are just getting tuned in. We're going to get started in just a minute. This is a live broadcast and I'll be teaching how to buy the dip. All right.

So this is. Um, well. this is something that has been very topical in the last year. Everyone's talking about Buy the dip, Buy the dip.

So what does that mean? How does it work? This is a strategy ultimately of trading and investing buying dips. So what I'm going to teach you today is actually an excerpt from the Warrior Pro curriculum. Obviously, I don't need to introduce myself. You guys who are tuned in here.

You know who I am. You know I've been trading for a long time. You know, probably that I took a tiny account less than 600 bucks and have now turned it into about 9.5 million dollars in gross profit. That's gross before fees, taxes, uh, commissions, things like that.

So uh, you can check out my statements on Warriortrading.com down at the bottom if you want to see those. We do have them audited and I should always say my results are not typical. The typical result for most day traders is that they lose money. Trading is very risky and a lot of people who come into the market to trade actually find themselves simply gambling and losing money.

So be very, very cautious as you approach trading. And you should trade in a simulator before you ever put real money on the line. So with that said, um, I do want to jump in here and teach you guys this class today about dip Trading, so I do have the chat feed over on the side so I'll be able to see some questions posted um in real time as we're going through and I'll also save some time at the end to do Q A those are tuning in just on audio. I'm going to try to be very articulate so if you're just listening while you're driving or doing something else, I hope this will still be valuable for you and helpful again.

This is an excerpt from the Warrior Pro Curriculum. If you are interested in checking out our entire curriculum, go to Warriortrading.com Strategy, Warriortrading.com Strategy And there you'll see the entire curriculum, the Warrior starter, the Warrior Pro, and everything else. My goal is to teach strategy. Now that probably sounds like exactly what you've been looking for and funny enough.

Um, it's not what most people teach. Most people teach general concepts of the market, which is all fine and well and very easy to teach. Even if you're not a profitable trader which many people who teach are not actually profitable, they they teach and that's fine. They're great teachers, but they may not be profitable traders.

I'm a profitable trader and I want to teach you the strategy that I use every single day. This is primarily a momentum based strategy. Remember that a strategy is a set of rules that you use to trade the market every single day. You have to be consistent in the way you, uh, apply or implement that strategy.

Inconsistencies lead to losing trades and then lack of profitability. and ultimately, that's not going to work. so I'm just going to kind of cut right to it. And let's get into strategy.

Momentum Trading is my strategy, which means I generally am trading instruments, and we'll define that further as stocks which are shares of companies that are moving up quickly. So if something is going sideways, I'm not interested. I'm looking for things that are moving up quickly, and Dip trading is a component for me of Momentum Trading. Now, when some of the dip trades I'm going to show you are going to be inverse and it's a stock that has strong momentum, but it's actually going down and I'm going to buy that dip for the reversal coming back up.

ultimately. Um, this sort of mini class I'm going to teach you today is broken down into three styles of buying the dip. The first is buying what is, uh, really, just simply a pullback. So a stock is generally strong, but starts to pull back and you buy the pullback and then ride that momentum as it starts to curl back up through new highs.

Easier said than done. But that's the summary of buying the dip in the first style. The second is buying a panic sell-off So you have a stock that does a panic flush, it just tanks, it drops really, really hard, and it can be anywhere from five percent. Ten percent.

Twenty percent could even be fifty percent. It's just as a huge wash out flush pan excel and you buy and catch that spring right back up. You have to be careful because that's a very risky one. I'm going to show you live trading examples of each of these three types of dip trading.

The third type of dip trading is when a stock has been selling off, it's at low of day, it's very, very weak, and you're buying in anticipating that it's about to change directions. And I have an example of doing this on Norwegian Cruise Line Holdings during um, the Big Panic Cell and everything else that was going on in 2020. Obviously, Cruise lines were getting their stock prices were just terrible. they were dropping really, really hard.

But we did get some nice, um, dips off the low or bounces off the low. So that's a little bit of a different type of dip trade. But when we talk about buying the dip, those are sort of the three types that we're gonna review today. All right.

So again, buying a pullback, number one, buying a panic flush number two, and buying what's really more of a reversal, which is number three. All right. So um, I do discuss, um, dip trading both in Chapter eight of the Warrior Pro Class of Momentum Trading and Chapter nine of Reversal Trading. Both of those chapters do discuss dip trading in these various forms.

Okay, so let's go ahead and jump in. Before I do, I'm gonna put up, um, my disclaimer and do a little intro video and then we'll jump right into the class. Okay, all right, so why don't we go ahead and jump in here? Thank you by the way, for everyone who's tuning in live. I appreciate you guys, um, hitting the thumbs up and uh, hopefully you're subscribed to the channel.

Okay, so this is the curriculum right here. This is gonna be uh, what we're gonna cover today. So uh, I'm gonna full screen this. So Chapter eight Technical Long Setup Eight.

The Dip Trade. All right. So this is setup number one, which is a dip off support And so this is the the pullback type of setup. So we have a stock that's generally strong, but is experiencing a little bit of a pullback and that for me, is an opportunity to be a buyer.

So let's look at an actual chart. This is a stock as you can see here. Um, that went from about six dollars and fifty cents up to nine dollars a share. The stock was up well over fifty percent on the day.

it was a big Momentum stock. If you're curious about how I find these types of stocks, this would have been what we call a Gapper, so it was gapping up. If you haven't checked out my video on Gap trading, you should check that out as well. I'll put that link right down in the comments here Gap and Go and you guys can watch that if you haven't already.

All right. So uh, this is a stock that was gapping up. Most likely it had some type of news catalyst, which is why it was moving up pre-market at the open. So gray here is pre-market and then when it turns darker black charcoal.

that's market open at 9 30.. So of course, stocks do trade in pre-market hours. At 9 30, the bell rings and it sells off. It pulls back a little bit.

Uh, around 9 45. It kind of tries to break over the volume weighted average price, which is a technical indicator. It's not able to. It gets back below it.

It tries again around 9.50 can't do it. and then it does break it. Just before 10 am, it squeezes up to 750. but then this ends up sort of double topping at its previous high.

A day around 750 pulls back to the V web, but then off that level it ends up curling and around 10. Whatever it is, 1005, 10, 10 it starts to break out to new highs. This second arrow right here represents a possible dip trade, and this would have been a dip off support or in this case a double bottom entry. So a double bottom.

It had previously pulled back to a low of 773 on this candle. and you can see how some traders might prefer just to be a buyer over 823 which was the high of this candle here. or maybe even over the high of this candle here. Now I can get my drawing tool up here just to make it a little easier for you to see.

So um, we're looking at right in this area for those watching the screen. So here's a double bottom dip. So an entry there at 773 is pretty nice because you can manage your risk against it being a previous double bottom and then 750 is psychological support the half dollar, but then just below that is the volume, weight, average price. So you kind of have this support 1 and support 2 very close together.

So a dip at 773 a logical stop is probably around 750. You're risking right around 23 cents a share. It immediately gets back over eight and then squeezes over eight Twenty three. Now this is a spot where me being um, pretty aggressive would probably start a position down here at 773 and add at eight dollars which moves my cost bases up to probably 785.

And then I would add again at 823 which is going to move my cost basis up again. maybe do at this point about eight dollars. So if I start with 5 000, add another 5 000 at another 5 000 shares, I would have about 15 000 shares of this type of stock. At eight dollars a share, it then squeezes up to 850.

does a micro pullback and this is a scenario where in some instances I would take half off the table at around 850 for 7 500 of profit. and in other instances I would add uh at 8.50 because now it's really showing some strength. It's proving itself and so I could do anything from add another 15 000 shares and now belong 30 000 shares but with an average of 8.25 and as it goes up to nine, that could become a twenty thousand dollar winner. Or I could just add another 5 000 shares.

Cost basis is now maybe 805 808. Something like that with 20 000 as it goes up to 868.70 I'm up 10 to 15 000 on this trade. So the initial entry double Bottom dip right here. and I would have already known while it was consolidating right here, that the previous low was 773, the low of that red candle and so I would have been watching that level.

If it dips down to that level, it's a possible dip for a pop. Right back up. This is a one minute chart. One minute time frame.

A five minute chart you could have used as well. This would have been a five minute little flag pattern. Breakout Traders more often than not would be buyers over 823 which is sort of the pivot or over the actual high, which might have been like around 8 30. That's also a place where we would typically see short sellers cover at the highs.

Usually if I'm long, my stop would be if it breaks below the low of a recent move. So if you're short, your stop would be if it breaks above the high, which in this case is right there. So that's why. as it breaks through that level, we expect volume to come in.

and we do see some nice volume right there. And then this is a one minute micro pullback right under the half dollar of 850 psychological resistance. It breaks through and goes up here to 875 and breaks actually over nine dollars. So that would have been, um, a double a double bottom type of entry.

You can even see on this one. however. um, that you could have possibly taken a trade uh, right in this area as a dip off the volume weighted average price. you maybe could have done it right here.

and that didn't really do a lot. It dipped again and then it worked, so sometimes that can work. In this particular instance, I would also note that this appears right here to be a descending resistance line. so if you kind of draw it like that you can see how the stock was below.

It tapped it twice. So once it taps it twice, we would draw there and there. It ran into it here and couldn't break it. Then it got above it.

But often when they get above it, they come back down and retest it. So we could also potentially call this a dip off of ascending a descending support. These are all variations of buying a dip off support. You have ascending support, you have descending support, You have double bottoms, You have double bottoms, a half dollars, and whole dollars.

You have volume weight, average price. So we in the classes go into all of each of these variations sort of in detail with live trading archives so you can understand the differences. Now, they're very similar, but they're different. Um, sort of circumstances for when I would trade them and when I wouldn't.

Generally speaking, I'm going to be more bullish buying dips when a stock is trading above the volume weighted average price. Okay, so this right here is another. uh, double bottom. So this is a stock that you can see pre-market had a pretty big range.

This is a candle, but it's on light volume, so we would typically consider that to be an algorithm. They created that candle, not a valid candle. That was that red. So it goes sideways.

You've got this low here at 405, which is right above the whole dollar. Psychological support. Then it bounces up nicely. Now in this case, that's just a bounce off of whole dollar.

I don't I'm not really looking at that trade as much as I'm looking at this one right here. This is a dip right off 4.. this is a double bottom entry. so you've got the low.

You've got the second low right here. Double bottom off of four. And this is the type of trade where a dip trade. Sometimes you'll just get five ten cents a share.

You're buying a double bottom off support of four. It goes up to four Ten four. Sometimes you get a move all the way back to the highs whatever those were and you don't always know what it's going to do. But when I first get in, some of the things that I look for will be a big stack.

So on the level 2, I want to see a large buyer. So if there's a big buyer at four dollars which I can of course see in market depth, then that might give me the confidence to punch the buy button at 401 or 402.. if there's not a big buyer, you know I might not be certain it's going to hold so my watch to see if it actually breaks and then gets back above that level. and then consider the trade.

And sometimes I miss the trade because when I'm thinking about getting in, there's a really big sell order. You know there's a 50 000 share sell order at 405 and I'm thinking i don't know, this is a double bottom, but you know there's a big seller so I don't think I can go ahead and buy the dip here with that big seller in the way. So it's not just the chart pattern, the level two also has to support the entry. I'm not going to talk as much about level two in this particular class, so here's another really nice example of a stock that um, Uscg.

So it squeezes up from four dollars all the way up to 22 dollars a share. That is a huge move, there's no doubt about it, but it does retrace the majority of the move from 22 back down to nine dollars. So the move started early around 7 a.m pulls back, so at 8 45 volume starts to come back in and it comes back up to the volume weight, average price, and right here where we have this white arrow. There was actually a little bit of a micro pullback below V Web.

so we had the volume weight average price and there was a micro pullback just below that level. It breaks through that level, so let's say you missed the trade you sat down at. you know, just a couple minutes before 9 00 A.m You see it at the high and you're thinking, man, okay, the stock is clearly strong. Where can I be a buyer and I would say anywhere above V Web and Cl anywhere close to V Web, but above it would be good.

So in this candle, right here when it comes down and bounces right off the volume weight average price, that becomes a great dip entry. That's a dip off the psychological support of the volume weight average price. So how would you actually execute an order that quickly? So the way I would typically do it is by pressing shift one, which would be my hotkey to press the buy button. So that's a buy order for a thousand shares.

So Boom. Just like that, I can be in with a thousand shares as a starter and that's typically what I do when I'm buying a dip because sometimes these can dip lower and you have to be careful that you're not catching a falling knife. So one of the things with the catching a falling knife and buying a dip. In both instances, you're buying something that's dropping right so that you know that's what they say about catching a falling knife.

You buy something that's dropping, it's going to just keep going and you're going to get burned. You try to catch a knife that's falling, you grab it the wrong way, and you're going to get a cut. Well, okay, that that's true. But when something is dropping and this is in the world of stocks, there are levels where we will expect to see support.

Okay, so support are going to be these universally respected levels that traders all around the world see and understand. Volume weight, average price is a big one. The moving averages are also pretty big. The 200 moving average is a pretty, uh, significant one, which is the the magenta line here that was holding pretty well pre-market That one is pretty good.

Uh, but V-wap is especially good. So this is one of those areas where I know that there's enough people out there that are going to be buying around the V web and they already have orders ready to go. They're hoping the stock dips down and picks up their order and then pops right back up. So 16 volume weight average price? That presents a dip opportunity.

And that's the strongest one, Because at that time the stock is trending very nicely. Now, as we start to go into more sideways consolidation above the V app. because we're in sideways consolidation, I'm not going to be as interested in doing dip trades in general. I'd prefer to do dip trades when a stock is trending strongly, When it's moving up quickly and so what.

you can see here: your moving averages are pulling away. your Macd would be opening up. therefore, and in this area, your moving averages are pulling and squeezing back together. They're converging.

So the convergence and divergence. We want to be trading when it's moving up quickly and pulling away when it starts to get into this sideways consolidation. I'm really not interested now. This is an instance of buying dips off support and this is ascending support.

So we have a trend line right here as you can see. Oops right there and this was connected by connecting it right down here and then right down here. And so it did. A false breakout at 650 goes to 655 and then big red candle and I start thinking, okay, you're gonna have some people that are panicking out.

You know they're bailing out because they got in too high. You know they they bought for the break of 650 right here. Which you know, one minute pullback under psychological resistance. That makes sense.

I I'm not against that type of trade, but in this case it just didn't work. It reverses, they stop out. But where will we see a bounce? Where will we see some short covering. And so with these lines already connected, I was anticipating a possible dip right in this area.

And so as soon as it happened, I bought that dip and we got a nice bounce right there. Back up to 640 or so right? so it's starting to move back in the right direction again. Some of these are just a nice quick 5 10, 15, 20 cents a share off the low. Others become a starter for an ad you know up here and then an ad through the high and then a move back up towards.

you know, the next resistance level Where it's the half. Whether it's the half dollar, the whole dollar. this is another example right here. So in this example, um, this stock was very strong from 370 up to 470..

it does a micro pullback pops up, it flushes down. in fact, the low of that candle. That's a little tricky as a double bottom because I do have a line drawn there, but this was actually the low. I'm not sure if I would have taken that trade or not.

This is that false breakout and then a flush and we do see that enough that I will sometimes go ahead and take that dip trade, but it is a little riskier. Um, but then this one right here, right there. it comes back now to that level and it's hit it once. twice now.

three times. So that right there at 440 442 could have been a dip comes back up to 460.. So it's only 20 cents a share on the bounce. But that's not bad.

You know, 20 cents a share, 2 000 shares? it's 400 bucks. so you know you do that a couple times a day. That could be pretty pretty nice, but then it comes down a little bit lower, it actually breaks below its nine and it's 20. Moving averages comes down here, and at this point probably not necessarily looking at dip trading, just watching see what it does.

It curls back up and it breaks through 440.. So the previous level that was a support level here and here and here then becomes resistance here and here. So now we know that that level is pretty critical. Okay, so and again, what makes you better at trading Dips is your technical analysis.

In general, if you're going to just start trading dips, but you don't understand ascending, descending resistance, how to draw those lines correctly horizontal support lines, then you're at a disadvantage. I would also say that I think Dip trading is a riskier strategy because general Momentum trading where you're buying the first candle to make a new high, you're buying breakouts. Those are easier to see on a chart. They're more obvious and therefore a lot more traders will be trading them.

more Traders Trading: That means there's going to be more volume at those very predictable spots, so I think those are a better way to get started. Which is sort of typical Gap and go momentum trading like buying this break here over 460 and you see the nice volume that comes in. But having said that, once you master that, then Dip Trading is a really nice skill and strategy to add in because it can allow you to start trading momentum a little before that breakout. So then by the time the breakout is happening, you're already in with a good cost basis and maybe you're adding and so that can make your winners a little bit bigger.

If you're going to start with Dip trading, it may be because your broker is not as fast and so you feel like you got to be in on the dip and it makes a little easier. And that's fine. That works for some people, but I do think Dip trading is a little bit more difficult to master than Momentum Trading and your sort of standard Gap and go. All right.

So let's look at this one. so this is a bounce off the support of the volume weight average price. So I'm going to pull up a live trading video here and we're going to watch this All right. So this video.

This is like a 20 minute long video. I'm not going to run through the entire video. um, but I just want to show you the dip, especially off support. So this is a stock.

just to get context. Wafu It's up 45 on the day. It's a Nasdaq listed stock. It's got 10 million shares of volume, so we've got great volume.

The volume weight average price is at 11.85 It's currently trading at 1194 by 12. So it's very close right now to the V Web, so this is potentially right here in this area. a spot to be watching for a dip off of the support of the V Web And the question is, does it pop up off the V web? 5 cents? 10 cents? We'll find out. So right there, I took a starter of 6 000 shares.

Now I did it in three increments with the hot key filling at 1206, 12 10, and 12 11.. So I've got 6000 shares at 1208. All right. So we've got 1208 on the Ask.

And now here's the thing that's important. This stock actually broke below the psychological support of 12 and then got back above it. That's a really good sign of strength. And right underneath that 12 spot, it's got the volume weight, average price.

Typically in this scenario, I would be setting my stop at about 12, which means I'm risking 8 cents a share, less than 600 bucks. I'm risking like 480 on this trade. All right. So now that we have right now, 12 15 on the bid, in 12 17 on the ask, I'm already up 250 dollars, which is not bad for a quick little dip off support.

Now there's 12 16 on the bid and 12 19 on the ask. There's 12 19 on the bid, and now I'm up 604.93 So this is a dip off the volume weight average price using the whole dollar as a sort of second level of support. So on this trade, it's 12 19 And um, looks like I put an order at 12.50 So I'm already getting in the mindset with my hand over the buy button. Potentially to add thinking that if this does, uh, go over this level.

So I did add there at 12 22 and 12 25. So now I'm holding 9000 shares, but my cost basis moved up from 1208 to 1213. But I'm up a thousand dollars right now. The current time is 10 24 a.m Now this Five Minute Candle is going to close in one minute at 10 25 and notice how right now it's forming a bottoming tail with the bottom of that tail bouncing off the volume weight.

average price right down here. And so the first five minute candle make a new high is what we would then be looking for and back of mind. Target could be a retest of 13. All right.

So now we've got 12 31 on the bid by 12 35. So we've bounced nicely off of 12. We've got 12 35 on the bid, by 12 37 I'm up 1999 dollars on the trade, We've got 12 40 on the bid. I'm now up 2 359 dollars and notice on the bid we have a 10 000 share buyer so I could if I wanted to sell right here on the bid 9 000 shares and lock up 2 359.

All right. So let's keep watching. but also note, we still have um, 43. Uh, let's see 50 50 seconds 53 seconds until this Five Minute Candle closes.

But right now it's turning green. Okay, so that's good. So now we've got 44 by 48, 43 by 44 and a little bit of a dip. Okay, not uncommon.

We hit the half dollar just about of 1250 and we pulled back. I just added again at 12 47 and 12 48. Now I'm holding 11 000 shares. Cost Basis has moved up to 12 19..

So I'm adding now as it's going higher and this is a place where I'm looking for the break through 1250. the psychological support. We didn't get it immediately. I took half off the table at 12.43 So now I'm holding.

I've sized down to 3800 shares. I did lock up profit there and the new order to add back is at 12.51 Now I still have the 1219 average, but note that I took some profit off the table right there. I bought at 12 40 and 12 43 looking for a second attempt for the stock to break through 12.50 Cost Basis has moved up to 12.29 We just had 1250 on the ask in 12 52.. Now look at this 10.

Look at this uh chart. We have now nine seconds before this five minute candle closes. So when the five minute candle closes, we're going to look for the first five minute candle to make a new high. So now we have 12 49 on the bid by 12 54..

So by taking profit at 12 42 and 12 43, I protected myself. I took a little off the table and then I added back. so I put a little profit locked it up, added back. Now my new cost basis is 12.29 so I do have to be a little careful.

I don't want to let it go all the way back down to being a red trade, but it is starting to look a little bit better here. As this candle is about to make a new high, we have 1252 on the bid by 1256. now another trader might have just taken the whole thing off the table right there at the half dollar. and now I've added their 1261 for the five minute setup, the first five minute candle to make a new high and I was able to take some profit off the table.

At 1266 and a little bit more. At 12.59 we hit a high there of about 1276 ish 1277 but then dipped back down to 1250 back on the bid so that first candle made a new high but then pulled back. Now I'm just holding 800 shares so for the most part, book my profit on that trade and my cost basis has gone up 12 43 and I'm basically selling the rest break. Even so that began as a dip trade.

It was a dip off the volume weight, average price at 1208 and then I added into confirmation. Now getting into adding is going to be a lot riskier. It's going to be a lot more aggressive. That's not something most beginner traders are going to do if you just start with an ad, one entry, and one exit.

That's a better way to manage the trades initially. and then you start getting more comfortable and more confident, adding and taking profit and so on and so forth. So that was the bounce off the V web. Let's see, I don't remember if there's any other now, so this ends up going up to 13 here.

Do I take another trade in this area? Looks like I do, but um, this looks like maybe more of a breakout trade? Let's just see. So this right here is a little bit of a different setup. This is a typical kind of momentum setup. Buying the break of goes up to 1460..

So you know in hindsight, that entry off of 12 was phenomenal. And of course, I took most of my profit in the 1260s. And now here it's at 14.60 and you never know how high they're going to go. So it's always great to see them go that high.

but you just never know how high they're gonna go. So I kept trading it. there's 15 dollars. It kept moving higher.

So good to see that. But um, I don't think there's another. Oh, there might be some. Well, let's are there any other good dip trays in here? Um, let's see.

let's see if we got a little dip here. This looks like um, so this is a bit of a dip trade off of 12.50 uh sorry 14.50 So you can see here it's holding 14.50 that support level. So as it was proving it was holding that level, I started. uh, an entry there at 14, 62 and 65 and the stop is 14.50 which is psychological support of the half dollar.

So if this breaks over 14.75 then we're looking for a move back up over 15. I added there 1479 in 1480. So now in this case I'd be looking for the break back over 15. There's 14.85 on the ask, there's now 15 at the ask and again that start as a dip trade and right there with 9 000 shares I'm in at 1481 and you've got 1509 on the ask.

that'd be 30 cents. We'll see where how high it ends up going. Looks like it tapped that level and then kind of pulled back so didn't get a full 30 cent winner out of it, but got a winner nonetheless. So that was another, in that case, dip off of a double bottom support because it had held that level and psychological support of the half dollar.

In this case, you have an extended five-minute chart, but dip trades can still work and you just have to manage your risk on them and trade them cautiously. That was another little dip trade right there. That though was a little bit more of a panic. So that's a bit of what we're going to talk about in the second strategy.

A bit of a panic sell-off so we'll We'll save that one further in just a minute. Okay, so let's see. let's jump back in here. Um, where was my looking for my slides? Okay, I've got these ones all right, So I'm going to just pause that for a second.

All right. So that was the bounce Off V Web and then, um, this is a bounce off V whap slash double bottom. All right. So let's check out this one.

This is a different live trading archive, so in this case, um, let's see. this stock is currently trading at about 16 and 15 cents. It's up 200 on 13 million shares of volume, which is pretty good. Uh, let's see.

All right. So in this case, we have a couple things we've got going for us. We have the Um volume weight average price which is a 1579. So we've got 1579 down there.

We have Uh 1550 which was previously a resistance level, but it broke over it so that could be support if it does does break the volume weight average price and we have this ascending support line right here. So we've got a couple of different levels, all merging right around 16 and it looks right there like there's a bid at 16.. Now we've got a little bit of a spread here, so this is a little tricky because you've got to spread, but there's 1604 on the bid 16 11. there's a 10 000 share seller at 16 11.

now it's breaking 16. and watch this. We know the volume weight average price is at 15.79 so I took a starter there. I only got a partial fill.

It looks like I don't know. Oh, you know what I might have meant for 5? I don't know. That's not typical to start with 500 shares. but in any case, um, that's fine.

So I've got a starter there. Um, yeah, so I think I meant for 5 000 shares on that one. Well that's fine. It is what it is.

So back up here to the entry. So the entry is a bounce right at the volume weight average price. I press the buy button I feel it's 1568 V app is about 15.70 something so it's just below the volume weight average price. But that's fine because I can buy the dip right there and then set a stop at psychological support of 15.50 All right.

And then I'm looking for the break back over 16. We get the break over 16. watch for it and it looks like I add for the break of 16 and then as soon as we get that pop back up over so added right there for the break back over 16.. So as soon as we get the pop back up over that level, it goes right there to 1625.

So there's 1625 on the ask. that ends up being a 50 cent bounce. That's a 50 cent dip trade. So that right there is a bounce off the volume weight.

Average price. You end up having pretty close to a double bottom with this previous low and it although broke through this descent or ascending support line, it ended up closing above it. So a nice little dip. trade there on that one.

All right. So we'll pause that and go back over here. Okay, so this one is a bounce off support. All right.

So this one bounce off volume weight, average price out of a halt going down. All right. So it looks like this one's going to be a little more. a little wild.

All right. So let's see what we get here. All right. So this is, um, a stock.

It's up 75. The volume is a little bit lighter. 3.2 million shares, bigger spreads. V app is at 42 dollars and 23 cents.

All right. So we're watching, uh for a little bounce off the V-wap down here watching for resumption. Okay, so the halt time? uh, oops. by the way.

Well, I won't go into that. So anyways, we'll just continue All right. So I have a starter at 41.95 which was, uh, just below the volume weight. Average price.

This is a while it is a dip off the volume weight. average price. It's a little bit of a a dip off of sort of a panic flush because it's such a big sell-off from 47 down to 42. but in any case, so I added there for the break over 43 dollars and there's 4320 and then take half off the table as it pops back up.

There cost basis is 42.41 so we've got 42.89 on the Ask 4298 on the Ask looking for the break back through 43 Big spread on the stock and there it pops through 43 and goes all the way to 43.98 So I take some off the table as it breaks through that level and then you ask yourself is it gonna break 44 If it breaks 44, then you're looking for 45. The next halt level is at 44.40 but you have a really big spread right now so in this case was able to sell the rest. um, I think on the ask actually I'm not sure, but in any case that was a bounce off the volume weight Average price, smaller share size This is a stock that had pretty light volume and it was had pretty big spread so it's a little bit a little bit riskier. Okay, so those are a couple of examples of the first setup which is buying off support.

so double Bottom half dollar Volume Weight average Price ascending support, descending support possibly around the nine Moving average or something like that. All right. So now we're going to talk about setup number two. This one's uh, a little bit riskier.

So and again, trading is risky in general. But this is. this. is buying a stock that's literally dropping selling off hard.

Okay, so this is what you see. see that huge bottoming candle. So this stock had a high of 17.59 and dropped all the way down to under 16. So it dropped about two dollars a share to like 15.79 and then it bounced right back up to 17..

So that type of sell-off and it was on high volume. That's like a panic flush. All of a sudden, it starts dropping, people, stop, start getting stopped out, it just drops really, really hard and then it bounces right back up. Now, they don't always bounce right back up, which is why this is a risky trade.

But what we had going for us here was that the stock was already up quite a bit on the day it was, and it bounced just about right off the volume weight, average price. And then it did something similar what it did right there. Did it again right here. so this kind of panic flush and then bouncing right back up.

All right. So let's look at a couple examples of this again. Live Trading Archives. So this is something that I do a lot of for Warrior Pro students.

We have a lot of live trading archives so we can review, um, these types of trades and try to really get an understanding of you. Just watch them again and again and again. as much as you'd like. Um, just to get understanding of these setups.

History repeats itself in the market. All right. So this is a panic sell-off. So here, what you had.

Um, the stock had just dropped from 16 to 14.26 That's a two-point drop. That's a big drop, all right. So let's back that up for just one second. So it was almost halted going down, which is at 14 10..

almost looked like a halt going down. There was a seller there 1424 and then it popped up. I got in at 1421 with a thousand shares. Typically an ad on this would be 14.50 14.75 for the break back over 15 depending on how aggressive I'm feeling up for being.

It's already having trouble breaking over 1450 and now it's gone lower. This is an example and a way of catching a falling knife. I'm in a little early, fortunately though, only with a starter position and now I'm watching. So this is a stock that's about to get halted right here.

56 million shares of volume. But I'm going to show you something. A false halt. See right there.

Right there. it starts to thin out. And that's where I add for a false hall trade. That right there was in, I mean, an instant trade from 14 from 1396 up through 14.50 That was a really nice trade and it may have gone higher and you know, whatever.

But that, right. There was a really nice trade off. a false hall? All right. Um, let's look at another one here.

Okay, so this video is going to also have a false halt on Pixie. So Pixi is up 77. It looks like, um, let's see. I'm gonna start.

Well, let's watch this here for just a second. So we're up 107 right now. Had a high of looks like around 15.. So the volume weight average price is at 12.25 Uh, the high of our one minute opening range was at 12.58 So 1250 could be psychological support.

That strong sell-off right there. Bought the dip a thousand shares. 12.74 stop is probably going to be around 12.50 We've our i'm already up 10 cents on the bid from 74 to 85, but that's 1309 on the Ask I haven't added yet. Now there's 13.25 on the ask and I'm taking some profit off at 1320 for almost 50 cents a share.

So now I'm out of the trade and I'm looking for another possible dip. See that bid at 1250 there? That's what we call a bid stack. So the bid is stacked right there 12.50 So let's see if we break back up over 13.. Okay, so this is a possible place to be a buyer.

It's a little risky, but we're right at the volume weight average price. False halt right here? maybe? Okay, I've got a starter at 12 28 watching for it to pop up a little bit more. So, although so this is a little tricky here because that is not the spring off a false halt that you usually look for, but so in that case, not a great trade. But I got back in 1246 as it started to pop up and taking some profit at 1273 in that case for over 25 cents a share, which is still decent.

Not as big as it could have been if I'd held from 1228. I got a little nervous on that one. Now it's back at 12 15. so it's back down here again.

This is clearly a stock showing a lot of selling, and this is an area where I started to get a little cautious about not wanting to do too much bottom fishing in terms of trying to buy dips if it's just clearly going lower. And I think that's probably an important lesson with buying dips is not to just hold and hope that it's going to go back up because sometimes they don't All right? So right here, it's kind of at the volume weight average price right around it because it's 12.25 so if it breaks back over 1250, this could end up becoming a bottoming tail candle. Although on the five minute chart we have this higher volume red candle. It's a top and tail, so that's a little bit riskier.

1203 is the haul down and is it going to halt? It looks like it might. In this case it looks like it might. halt going down. So it did in fact halt going down.

So let's move this a little bit further forward. so this ends up being another kind of strong drop. Um, let's see, let's go a little further forward. Um, and then you know this one ends up rallying.

It goes from 11, back up to 15.. So now we're back in sort of the the bullish mode. It's above V. Wap, it's strong.

We've got now 13 million shares of volume. Our halt down is 13.06 Watch this. We're getting a little bit of a panic flush. Okay, this is a spot where I could take a dip off of this extreme level.

Starter at 13 15 2600 shares, volume weight, average price is 1281. I would expect it would bounce off that level. so I'm in at 13 15. there's 13.77 on the ask.

Now, if I wanted to go ahead and add at 13.75 for the break over 14, this could end up turning into a trade where I could size up to a pretty big position because of that starter entry on the dip. If your first entry is at 75, you might not feel as comfortable going full size. so took a little profit off the table there 13 62. and we'll see if that goes higher.

All right. So back up back down. So this is now getting into a double bottom area right in here. Sort of a double bottom right around 1292..

I'm in a little high on this one. Not sure why my entry is that high. Looks like I'll be able to get out, maybe break even, but that could have been a nice double bottom off of 13 right down there. But then it ends up breaking below the V web.

so it goes below the volume weight. average price. Does it get back above it? Actually that right? There is another double bottom right at 12.. let's back that up for just one second.

So it's about to do a double bottom right off 12. right here. I'm already in at 12 50.. So there's 12 36 on the bid.

There's 31 on the bid. So when they struggle to break back over critical resistance levels like half dollars, that's when you can get these flushes. So it flushes down to 12.. Now I have 2 000 shares on this, which is not a very big position for me, but you want to see it hold 12.

That's psychological support and it looks like it is. And then that right down there at 12 28 could be a dip and I added 12 brings my cost basis down to 12 39. So then if it comes back up to 12 39, I'm back out break. Even so, sometimes I will use the dip trade to help me manage my risk and see there it comes back up to 12 50 12 60..

it's important when you're trading dip trades to leave yourself room because sometimes you will have the right idea, but your timing will just be wrong. All right now. this one is another live example. So um, let's check this out.

All right. So this is a stock. Um, that was pretty crazy. It's up 600 percent on 11 million shares of volume.

It's uh, about to halt going down and I'm taking a starter. At 1988, I'm thinking it's going to false halt. Now this. this is the moment of truth.

Now I add another thousand shares. Okay, it falls halted just for a second. I've got 5 000 shares. Okay, I'm in 5 000 shares and I'm in at 1993.

I stepped up and I bought the dip. All right. So now we have uh, 12. Let's see.

20 and 40 cents on the Ask. We have 21 on the Ask, 21.78 on the Ask. So at 21.78 this is almost a ten thousand dollar trade. Already, Almost a ten thousand dollar dip trade.

I took half off the table at 21.78 Now that's 22. that's 24 on the Ask Right now. 24 on the Ask. I took more off the Ask at just under 23..

I'm still holding 1300 shares from 1993. 11 million shares of volume. So now let's see what this does this. This gets tricky here when you've got these types of spreads because um, you get in this going the wrong way and you can get really crushed.

There's 26 dollars on the Ask, 26 on the Ask, up 125 000 on the day, high a day was 29.61 Now starting to wonder. can I add back? There's 27 on the ass Just for a second and I went ahead and added back. that's a high a day. Trade entry was at 26.

so I added 26, added 27. There's 28 on the Ask. Halt level going up is 28 07. I'm taking five now.

I've got 5 600 shares at 26.55 I'm taking half off the table. There's 29 on the Ask dollars on the ass. So that's a dip. Trade from 19 all the way back up to 29 a share.

It's a 10 point dip. This one was pretty impressive. So now in this moment I'm holding 3 400 shares and I am down. That's 26 on the bid.

Two dollars a share down seven thousand dollars. Now I'm down twelve thousand. Look at that. look at how quickly it goes the other way.

So I'm still holding and I went ahead and added at 26 31 and 26 45.. now I'm averaged at 27.23 So down 12 000 for a moment Not panicking. I do not want to panic sell. I don't want to panic exit into a drop like that.

I want to be a buyer. So I bought the dip. Now for the break back over 28. there's 28.50 and just like that, I did a swing from down 12 000 to up 4 000.

now I'm up 8 000. now I'm up Twelve thousand dollars. What a swing in the P L Wow, are we gonna break through 29.61 Halt level is thirty dollars and five cents up Thirteen thousand Big spreads. Seems like they're sellers against the double top of Twenty nine.

I'm looking for that possible breakthrough 29 and then 30.. this is now forming a one-minute pullback here. This is probably a spot where I'll consider adding on a dip for the break through the highs. Look at all that green volume there.

I added for the break through the high at 29.61 at 29.50 was my ad looking for the break of 30 and then sizing down as it rejected rejected against that level. And that's how quickly some of these can move. So you can see how in that instance that high a day entry ended up being. you know, kind of pushing it a little bit too hard.

I just I was being too aggressive there. Now on the other hand, we could have seen this break 30 and squeeze up into another halt. but in this case, um, locked it up and I don't remember where I finished the day in profit but over a hundred thousand I believe. All right.

So let's see. Um, I'll show you one more quick one and then we're gonna look at um, the third style of buying the dip. So this was Sndx. this will be a quick one.

Um, panic flush. See how it's just dropping like that? Oops. Back that up. so you know this has just dropped from seventeen dollars to fifteen eighty six.

It's a huge sell-off, so you get traders that get stopped out, you know the stops fire and also you get this flush. I bought the dip down there a thousand shares 15.95 watching 1625, 1650 on the ask. That's a 50 cent dip trade and I'm all out. 500 bucks on the dip, stock's up 43.

Okay, so now let's talk about the third setup. So we talked about buying the kind of easy go lucky dip off of the high. so a dip bounce off support. Maybe it's off the volume, weight, average price.

Maybe it's off ascending, descending support. Uh, maybe it's off a half dollar whole dollar a moving average sometimes. Uh, we do. We will see panic sell off and they can kind of.

You can get a panic selloff. that's that bounces off support. You know that's that can certainly happen. Uh, the panic sell-off however, is characterized by the instant flash down.

That instant 50 cent drop is. that's what we're kind of honing in on there when we're talking about panic sell-off. Whereas setup number one, buying off support. Usually it's not that level of panic, it's just it holds a lot.

It pulls back and it holds support. and then that provides an entry for you know, a move back up that's more common now. Setup number three is buying the dip and this is more of a reversal scenario. So this is when we have something that's been weak.

quite weak. usually is that low of day and is now starting to turn around. So this is an example of a stock that squeezed. You know, big move from 9 to 10, up to almost 12.

Then it drops all the way down to 4.50 Where's the entry? The first Candle to Go Green. When you've got five plus consecutive red candles. For me, I manage my risk that the first candle to Go Green is my entry and my stop is at the low. All right.

So if it goes green and immediately reverses, well, I'll cut the loss. But the first candle to Go Green is the entry. So right here, 450 this bounce bounces from 450 up to 550 to 650 to 750 to 8.25 That's a 100 bounce. That's impressive.

That is seriously impressive now. Uh, it dropped from 10 down to four. So 60 drop and then a 100 bounce. Volatility is the name of the game and so manage your risk and and obviously be mindful of the fact that trading is very risky.

Here's another one. This was on game stop game stop stop. Four hundred eighty dollars. It drops all the way to a hundred and twenty dollars a share.

The first candle to Go Green is the entry right down here. I have a live trading archive of this. It bounces from 132 all the way back up to 300. That's crazy.

That's seriously insane. All right. So First Candle to Go Green. Here's another one.

Tesla, First Candle To Go Green And you get that reversal. Now it's obviously nice to not have to trade by yourself. One of the challenges with learning to trade is learning the strategy, trying to figure out a strategy that works for you, and then being part of a community. So at Warrior we've got a community of traders.

We've got our chat room, we've got the live broadcast, so you can actually listen to the trading as it's happening. You can hear me as I'm calling out what's going on in real time. And you've got students who are all helping support you and stay disciplined. Stay disciplined.

Get Green. Don't overstay your welcome. Your red. Cut the losses.

Get out. Stay focused. It's important to surround yourself with the type of people that you know you want to become. So it's been a pretty wild year.

Norwegian Cruise Line Holdings. This was last year. Let's look at this one. Um, so uh.

the entry here was the first Candle to Go Green. All right. So um. Norwegian Cruise Line Holdings.

let me update the um, let's see. All right. So this is actually a video of a video, But that's fine. All right.

So again, those who haven't already checked it out, please, um, come over to Warriortrain.com strategy. That's where you can learn about our entire Warrior Pro curriculum and the strategy that I teach you. And yeah, if you haven't hit the thumbs up, please hit that thumbs up and I hope you're subscribed to the channel All right. So doing a little kind of just um, analysis here.

this is part of a live archive for students, so let's see. so. Norwegian Cruise Line Holdings. Um, all right.

So all right. So it was halted down and it had dropped from 13 to 10 and 31 cents. That's a pretty big drop obviously. And so what I was looking for: First Candle To Go Green.

Now this gets into something that's a little complex with circuit breaker halts usually. Um, when we have these halts, what is very common is that they halt down and they open lower. In this case it halted down and was showing to open flat. So I bought the dip at 10 31 and that went then right into the first green candle so that for me already the market was kind of tipping its hand that it was going to go green just by the fact that it was looking like basically flat open and then at the open, it held that level and didn't go lower.

So now I'm in this 1031 and there's that bounce. First Candle to Go Green 1083 ends up going back up over 11 a share. so that ends up being a full, you know, almost dollar share. Bounce off the low again.

First candle to go Green. But let's look at the, um, the game stop trade because I think that's one that you guys are going to be more into and then that'll be our last one for today. All right. So let's look at Gamestop here.

All right. So this was crazy. Um, this was the biggest drop I had ever watched happen right in front of my eyes. So it's halted down.

Um, it was at a 153 dollars a share. so I think that we're gonna watch this. Um, so it resumed, but immediately just halted again. So it's it's.

kind of like a really quick resumption. Um, it's not even really worth showing you. I don't think so. Let's see.

I'll I'll show it to you since I'm already scrolling to it. So it just opened and halted down again. right there. I had my hand over the buy button but it didn't show me a false halt and I was like I'm not stepping in front of this train.

Not yet. Not yet. I'm going to get ready. I'm watching.

but I got to be a sniper on this one. I got to be really, really careful. Okay, so um, we're halted down at 126. and let's back this up.

Um, okay, so no position yet so watching for resumption? All right. So changing some of my order my custom orders just kind of like adjusting my my keys a little bit. That's typical on something like this. Okay, so this is this should resume in just a moment and it resumes.

And there's an 89 000 share seller at 120 a share. I took a starter of 200 shares. I got filled between the spread at 115.. I'm in at 115.

The low is like 113.50. here we go. Added 200 shares. 120.

that's 125. I added another 200 shares. That's 126. I added a thousand.

Now I added 1200. That's 128. 132. 10 a share right there.

So that right there is 10 776 of profit buying the dip. Now you don't see a dip trade like that every day of the week. Not at all. That was a pretty rare one.

that was a pretty special one. But dip trading is a pretty big component of my strategy. I am doing dip trades on, uh, pretty much a daily basis in various forms. dip off, ascending, support, dip off half dollar, whole dollar, et cetera, et cetera.

Okay, so we're gonna watch for resumption here now. My biggest regret on this is that I didn't hold the whole thing to back to 300. uh, of course I had no way of knowing it would go back up that high. All right.

So let's see. So it looks like, um, we're still halted, but we're going to watch resumption here in just a moment. Okay, so watching here, resumption orders at 140.. So we halted at 132.

It opens at 144. I'm up 22 000. That was the first candle to go green. Now I added right there up to 2 000 shares at 144 143.

I was looking for the break over 150 and then immediate second halt going up. So right here when it starts to go red, I panic. I'm like uh oh, this is not. This is not good because now I'm starting to size up a little heavy.

Uh, so I actually I added more right there. and now I'm sized up pretty heavy on this. 3 000 shares is pretty big. Look at that.

149, 85, 150 The adrenaline. Wow. Let's back that up for just one second. Okay, so I added for that trade through the high: 3 000 shares, 3 500 shares.

So this was a you know, 400 000 position. In that moment, it's got 26 million shares of volume. So I added right here. Cost basis: 135.40 That means if I sell the whole thing at 145, how much will I make? 35 000, 34, 000? Look at this.

there's 48 I add for the break of 50.. Now I've got almost 4 000 shares. So half a million dollar trade here and I'm taking some off. Three cents below the high.

There high is 150, There's a seller I'm taking and I'm out. I'm popping it out. and if I'd only known, so I'm all out at 50.. that was about a 45 000 forty.

About a forty five thousand dollar dip trade. Wow. And I left so much on the table. It goes to 150.

It goes to 160. It goes to 170, Goes to 180. It goes to 200. It just kept going.

This is the day I was up. 485 000. Wow. Wow, right there.

That's pretty wild. So Dip Trading uh is a important component to my strategy. I actively trade dips and I think it's important for you guys to learn them. But I also think it's important for you to understand that dip trading is not.

It's not the only strategy, it's a component of momentum trading. Again, if you haven't checked out, um, my video on Gaap trading trading the Gap and go Gap and Go Trading. I'll put that, um, right there. Um, so you can.

Um, so you can see that talks about my stock selection process. How I find strong stocks to trade again. Those you guys that want to learn more or you'd like to take one of the classes that I have, we'd love to have you join us at Warriortrading.com Strategy: There's the strategy page so check that out. and um, you know if you're all in different places in the learning curve.

So for some of you you're just going to want to jump right in. You don't want to go watch a webinar, You don't want to waste your time on on that, you want to just jump into the classes. Those that want to just jump right into classes, go check out Warriortrain.com Strategy. Those you guys that want to attend my free class which is a webinar where I basically teach you the stock selection process that I use every day, register for the webinar.

I'm happy to have you do it. but you know, if you're just looking right for the strategy, then go to the strategy page. It depends on what you're looking for right now, but I'm happy to help you. I'd love to be able to help you learn, help you gain some financial literacy.

I think the goal is if you know more about the market and you're walking away from these classes with a better understanding of how the market works, then you're doing well as always. You have to understand that trading is difficult and that most people lose money and there's no guarantee for success, so do take it slow. I always encourage students to trade in a simulator before they put real money on the line because the fact is, if you can't make money in a simulator, you shouldn't put real money online. It's just as simple as that.

Okay, so um with that, why don't we do a little bit of um Q A and I'll just see if I can answer um, some questions for some of you guys. So I'm gonna switch here. um, tune in for as long as you want. Those that want to just hang out for for some Q A? Um, I'm your guy and let's let's do it all right.

How long has my video been out of focus? Hopefully not too long? Oh, I forgot that we are on air. Okay, so let me pull this a little closer to me here. so I'll kind of go back and forth during Q A between charts and just answering questions. So I saw a couple of you post some questions.

Oops. So let me just go and catch up to those that I already missed. All right, let's see, there's that up a little bit. All right, let's see.

So James asks, hey Ross, can you talk a little bit about times where you wouldn't take the dip? Okay, um, a couple of instances. One, if it's the stock is panic flushing in response to a breaking news headline. If news has just gotten posted and that's why the stock is dropping, I'm not going to be a buyer because that's not a that's not a, um, irrational dip or just sort of the loot. the the weak hands getting shaken out that's true market reaction and algos responding to breaking news.

So breaking news I'm not going to buy the dip. That's the first scenario. The second: I'm generally going to be very cautious doing any type of dip trade below volume weighted average price. except scenarios like Gamestop or what you can see over there on the chart.

Because in that scenario on Gamestop that was at low of day and we had so much room to bounce back up to the volume weight average price. So in that case, I was okay taking the trade. But rarely do I take dip trades below view app. Rarely do I take dip trades when and pretty much never.

if it's on breaking news and it's flushing and those would be the primary instances where I would be hesitant to take a dip. Larissa In the moment, when you take a dip off of something like a rejection, how do you know it won't just form a big bear flag going down. So my bailout spot is the low. So in the case of Gme, my starter was at 115 and the low was around 113.

113.50 which was a really good dip trade in that instance. But um, so for right there that dip became the the low of that point 1 1350 became my stop. So if it flushes, it bounces up just a teeny bit. and as approaching breaking back to the low, that's where I get out because I don't want to be holding it if it's then making new lows because that's when I get caught into the habit of averaging down and it's just a bad trade at that point.

Well, it's not. It's Again, it's maybe the right idea. but my timing wasn't right and it's better just to cut the loss and then get back then just to keep holding. Because look, I could have started doing a dip on Gamestop at like 200 bucks or even 300 up here.

Way up there. it still looked like you know that was maybe the time it was going to turn around and it went a lot lower. It's a good question. Thank you for that Lisa.

Um, let's see. James got your question. So Craig, How do you know, uh, Craig do you buy after the candle closes Green? So the first candle to go green Right by the time it closes, sometimes the stock is already halted going back up, which was the case in Gamestop That requires a degree of anticipation, which requires keeping a fairly close eye on the time because we know when candles close. There's a lot of traders who wait for the first candle to go green and then buy the second candle as it makes a new high.

That's a candle over candle pattern. So first candle make a new high and I do take that trade a lot of times in momentum going up, but on dip trades, I usually like to have a better cost basis, which means I'm more likely to take a starter position around a half dollar a whole dollar if I think it's going to bounce. Now Gamestop. I honestly wasn't sure it was going to bounce there.

I d