Okay guys, so we're going to do a little video lesson here earlier. We're talking about the the patterns. the first pullback, second pullback pattern on cool and also on PR G N And you know we just kind of briefed over it, but it is actually really important stuff and it's something that we talk about in depth in the trading course. But just you know, let's do a little video lesson on this pattern because it is a really solid setup.

So cool Today you know, popped up out of the gates and then pull back. Now you could say right here, Well you know we got this First pop out of the gates and then the pull back. This right here is is your first pullback. so you've got a potential entry on this.

you know, right here. over 280 with a stop at the load pull back which is 254. Now this one wasn't actually on my radar this morning and it looked like it only had maybe a hundred thousand shares of volume or so through this little consolidation, so it definitely wasn't on any of my scanners. I'm not sure if other people who are looking at it, but one of the things that you need in order for a breakout to resolve in the direction that we want which is up is volume and that means we need people looking at it and trading it.

So stocks that have very light volume or aren't closely watched are usually not going to respond well. So the stocks that work best for patterns in general are going to be stocks trading on high relative volume. High relative volume means lots of people are watching it. The more eyes on these patterns, the more likely they are to resolve in the anticipated direction.

So you know if you're trading a stock, even a stock that's trading on heavy volume on a regular day like Apple or Facebook, the patterns that you see forming may not really be the result of you know, strong moves up and then consolidation. This is a strong move up and then you get a little bit of profit taking and then you get ready for the next move up. Now on a bigger stock like Facebook or Apple. These moves may be very closely tied to what's happening with the overall market.

Typically that's the case. It's not a specific stock cattle that's driving, it's what's going on with the overall market. With the small caps, it's usually a specific catalyst or a technical breakout. In the case of cool I Think there was some news on it this morning and then it was kind of a combination of that news plus the catalyst.

So that news plus the technical breakout. So what we have here is the first pop cells off, pops up a little bit and then back down. So this is not you know, a setup that really worked out. If you did take the trade here, you probably would have stopped at the first candle on the 5 minute to make a new low, which would have been right here at 66.

So you know you might take a small loss on it, but it probably would have been too bad now. I Personally wouldn't be taking entries through this period. Here we're consolidating. We're at the moving average, but I just I don't see any reason necessarily.

this is going to go one way or the other. So I let the breakout happen. I let the volume happen. We get that pop and when we get a pop like this, the stock will show up on our high a day scanner and it'll tell us the amount of volume, the float, the volume relative to what's normal.

you know. Give us these various data points that will help us understand how much potential this particular stock has. So we let the first pop happen. Now this is on the 5 minute.

sometimes. if the pop starts on the 5 minute, I'll look at the 1-minute chart and say you know what. There might be an opportunity for me to get in before we even get the 5 minute pullback because look, this went from 280 to 320 so you know there's 40 cents there. So is there an opportunity to scalp on the one-minute chart somewhere inside this 5 minute candle? You know.

Now for me: I Don't actually see a clean pullback, but I often do take entries right around the whole dollar, so there might have been a possible entry here like 298 with a stop at 294 the break of 3. I Actually didn't trade this one. This one wasn't on any of my scanners because it didn't have the float column. There was no data and all these scanners require a minimum and a maximum float.

So because this one for whatever reason just didn't have the pull the data, it didn't meet the criteria for my scanner so wasn't on my scanners. But in any case, I would often take a one-minute pullback, just a brief one-minute pull back inside a strong 5-minute candle as long as we're not too overextended. And now here you get the move up towards 320 and then you're starting to get the sideways consolidation, returning back towards this moving average. Right Here, this is the 20 exponential moving average.

Alright, and on the 5 minute, we're consolidating just above this grey moving average here. So where's the entry? Well, we look for the the flagpole, right? This is the strong move up and then one candle, two candles, three candles of sideways consolidation. and then our entry is going to be the first five-minute candle to make a new high. So the high of this green candle is 314.

That means as soon as we break over through 14, we've got our entry. and you can see here on the one-minute that there was some consolidation of one tab to tab. so through 14. So we dip back down, come back up and look at the volume that follows.

So that tells you other traders, we're watching that pattern, right? The reason there's volume is because other people bought or shorts covered they saw this as a breakout. They got in or got out. Okay, so you get that move up to 337. So right here, that's that candle there up to 337.

Now in this case, I Probably would have sold at least half my position from 314 up to 337. Adjust my stop to break-even in this case. We retest the breakout spot not uncommon to retest it on the one-minute chart. and then you've got this next entry along over 337.

All right. So you've got 337. so this is the first right here. The first one-minute pull back after the fresh breakout on the 5-minute chart.

So once again, we're back in play trading long over 337. The five-minute is just still starting to break out, so we're clean alright. And then we get that move here up to 360 which is nice. 370.

A little bit of a dip back down, retesting the breakout spot. again, not uncommon. Then a little bit of a grind sideways. Alright, so we've got the first pullback there.

The second move went up to a high of 3 seventy and then we pull back and then the high at that last candle was 354. All right. So we watch the sideways consolidation here, and we're waiting for the first five-minute candle to make a new high. Now you can see here you get that pullback.

the consolidation at the moving average, then the first candle to break over the high. here. The high was 57, so the high here was 54. So we actually broke the high right here.

Did like a little bit of false break. We went up to 54 and then we actually dropped back down to 37. That's kind of like a little bit of a scary moment because if you were in on the five-minute chart, you definitely would have been down there for a second stop. Well, I would always have my stop at the low of the pullback, which is right here, so you wouldn't have gotten stopped out, but it would have been a little, you know, a nerve wracking for a second there.

and then we pop up. We break over the high of that level, which is important and now we're breaking out again on the five-minute chart. Okay, so now up to $4 380 and up to four and notice the volume. How right through here you get this pop and then you get the second pop of volume right here.

That's the people buying the one-minute chart, right? This is now a fresh breakout on the 5-minute So people buy that one-minute candle right there. All right. now. Again, continue going sideways.

Now we're consolidating, just sort of at the four dollar spot. and then we get the break over four dollars, which people love to trade. The problem with that entry is that we didn't actually have a very good pullback on the 5-minute We didn't pull back to the moving average here and we didn't pull back for several candles. We just sort of went sideways and then popped up.

Okay, so we popped up and then we sort of are doing this grinding action. Now this is where I start to get a little nervous because we're not seeing the clean. you know, push sideways consolidation and then push sideways consolidation. We're seeing this push and then just sort of grinding a little bit higher.

Alright, now we have the first pull back, the second pullback. Now, the third pullback isn't really forming because we're just sort of grinding higher and that for me is a potential red flag and eggs indicator. All right. Exiting in the three tens, three or four times, four 20s.

I was for 2025 and we saw something very similar yesterday with GBS seven. But we'll stay on this roof right now. all right. So we sort of try to retest and you see, the volume is still increasing.

But even with this peak volume, we have a doji at the top. This candle of indecision, right the top and tail and it comes back down. and then as soon as we break below and close below this blue line, this is like lights out right here. All right now.

this is a possible short below the whole dollar for dollars with a stop at Four Ten I Always keep tight stops in my short hole dollars and this one's good because we're breaking below this 20 moving average. the first time we've actually broken below it since all the way back here and it'll be the first time we close below it. and now your new stop is just above the moving average. So look what happens.

you come over here and you start tapping that moving average and down and tapping it and down we go all the way down to 370 before we start to get back up above it. All right. So that right in there presented a decent little short on the pullback. But what's important to recognize is that you have two really good entry opportunities here.

the first pullback and the second pullback right. And obviously these are good 5-minute setups that do need to correlate with clean one-minute setups. So the clean one minute setup being Let's see being right here, right in this area, right in that area, and then again right in this area here. and then this is your possible one-minute scalp over the whole dollar or four.

But now we're starting to get a little too extended. so you know you want to understand what is a risky setup and what is a high probability setup. So you might think, well, this is just one one chart. How often do we see this happen? But see it happen all the time? So let's look at Prgm.

This has a very similar chart today. Okay, look at this. We get this spike up out of the gates. You know we don't.

We may not know what caused the move from a dollar 10 up to a dollar 60, right? And there's certainly potential to scalp the 1-minute chart inside of that move. All right. So let's look at let's start with a 1-minute chart. So the one-minute chart.

This thing spiking up and it's on our scanners. Is there an entry somewhere in here? You know in this case you had a possible entry over the half-dollar 150 and we went up to a high of 163. and then we dipped back down. Alright, I actually jumped in this at 150 for that half dollar break.

When I do this, I have a 10 cent stock. the same as when I'm long or shorted a whole dollar. So along here at 150 we get to move up to 160 sell half stop out break. even on the rest, that's fine.

Now we're going sideways, sideways, sideways at this moving average on the one-minute dipping down just a little bit, but still holding up fairly well. And now we're starting to curl up. Volume coming in on this candle and then coming in again on this candle. So the first 5-minute candle to make a new high is right here, which was over 48 and then from 48.

we went from 48 all the way up to a high of about 73. So this is the first pull back getting bought. up. The volume here indicating that lots of people are watching this stock.

We've got the first pullback. Now it's up for the second pullback. Alright, we've got that. First move up to 70.

Second move: Consolidation sideways. Ok, the one-minute is fine. What's the first 5-minute Caleb will make a new high. You'll be over 65.

So your entry is 65. Your stop is the low at 60 and now you've got an entry at 65 that you can ride all the way up towards $2 Doesn't mean you don't take profit along the way. Yeah, I always do. but this is a really good five-minute set up.

The first pull back, a second pullback, and now what's happening up here Along the third, we're getting a little too extended off of our moving average. We're seeing high volume, but not as much price action. We're starting to get that tug-of-war all right. And then that tug of war is what, often times for a strong momentum stock ends up marking the top.

and then we get that moved back down. This pattern is so similar, all right. we can look at a couple others. These are excerpts from the Trading Course My 515 page: PDF PowerPoint Okay, the first move up, sideways, consolidation, First pullback, Second pull back a little bit of momentary, and then this rolls over here.

So this is what we look for and we find this setup using our scanners. the stocks hitting new highs. We'll trade it on the one-minute going up, Then we wait for the first pullback, usually for the second entry, second entry here, and then third entry. The last trade will be through here, and a possible scalp over the whole doll.

or the half dollar if we happen to be at this area. All right. So this one is a A VE Oh, let's see another one here. This one's not quite as clear and this one's This is one that had a strong catalyst now.

and here's the difference. Also, stocks that don't have a catalyst are going to be much more likely to roll over sooner than a stock running with a really good catalyst. The really good catalyst can continue to form additional flag so you can get the third pullback, the fourth pullback, and then keep running. This was Fxcm that went from $11 to $20 a 100% move in one day.

So this one, if you're using the five-minute chart, is your guide. You've got an entry here, and entry here, and entry here. and of course, multiple entries on the one-minute chart. Here's your pop, your first pullback, and then your next move there on Zaza That was a VE Oh, another one here.

A little bit sideways. This is more of a flattop than a real clean flat top breakout. They're more of a flat top breakout than a a clean bull flag, but still, those are good. A little bit of a higher price stock and then you know you again.

some of these other ones that just sort of grind and grind. These are a little bit different. They don't give you that clean pullback so you have to recognize some stocks are going to give you really clean entry opportunities. first pullback, second pullback.

and those are the ones that you attack with sighs. The ones that are going to be a little bit tricky and they run. but they don't give you a good setup. Well, you can't You can't win them all, right? We do as much as we can.

We simply can't win them all. So you go for the ones that have the best opportunities. You learn to recognize those patterns in real time and that allows you to be more aggressive on what you would consider an A quality setup and then reduce your size on, you know, kind of subpar quality setups. All right, so hopefully that's helpful for you guys again.

this is an overview of really Bull Flags, flat top breakouts and some of the examples. and trading: the first and second pullback. The first and second pullback are almost always the strongest. You know, the first pullback for people that missed that first push, the second pullback for people that missed the second one.

The third one is where you're getting greedy and that's when it usually rolls over. And this is especially true with stocks that are running on kind of like not very good news or maybe just a technical breakout. stocks like you know in DRM or Fxcm that are running on a really strong catalyst and they have the potential to go 100 percent in one day. You'll just keep seeing this pattern.

The move, the pullback, the move, the pullback and it'll just keep happening again and again. So you want to study it. So the next time you see this pattern forming in real time, you know how to react. All right.

I Hope that's helpful. Email me if you have any questions.