So you see a bull flag, it looks great, you want to buy the stock, so you pull the trigger. It jumps 20 cents. You're in the green happy go lucky you sell for a profit and then it runs another dollar per share without you and you feel like an idiot. Well, we've all been.

There don't be too hard on yourself in this video. I'm going to show you one of the tools or indicators or tricks that really helped change my trading around and pretty much made me the best that i am today and i've been able to very accurately pick price targets, bounce points and resistance points hours before they Even happen so in this video, i'm gon na show you the tools that i'm using and exactly how you go about setting this up stay tuned now before i show you guys how to set this tool up. I want to show you a video that i posted this morning about a stock, and then i want to show you what actually happened to the stock see the biggest thing in the market and the biggest thing with videos is everyone's like, oh hindsight, 2020. Obviously, it's resistance.

Obviously, it's support well in this video i'm going to show you me making price predictions before it happens and then show you how well those price predictions happened afterwards, ebon actually mines, dogecoin, so dogecoin's been killing it obviously over the past day or so. So a lot of people are gearing up on ebon today, so let's go maybe best case scenario for right now that i see best case scenario would be ebon. Moving from this 448 price, all the way up into the 488 or 486 to 5.15 range. The reason i mentioned that price point is: if we look at the screen on the right, the nearest or closest trending um.

I guess you could say resistance or trend. Point is at starting at 486, then, after that the next closest is at five or it's actually 517 - maybe a little higher. So this creates sort of a target zone. So i'll highlight this from this red line to this red line up here.

That would kind of be your target profit zone where you want to go right, so not that it's going to get there, but in the best case scenario, that's where we could see the markets going to today because remember anything over this blue line is overbought. So whenever we go over the blue line, we would most likely look to target into sort of that green area. So for now we're going to be looking for at most on ebon targets of 486 to 520.. So here we have the stock chart.

Ebon pulled up in real time. This is the same exact stock. They were talking about pre-market today. Now, at the time of the analysis, it was pre-market and it was about 8 45 am today: ebon tops at 5.18 cents at about 10 45 a.m.

That's almost two hours after our analysis that the stock reaches our price target. So, to put that in perspective, we're able to pick accurate price targets off by one penny, two hours ahead of time so hope you guys are excited now we're going to jump into setting these tools up. So you guys can use the same approach in your day-to-day analysis, so the platform we're going to be working on is td, ameritrade's, thinkorswim trading platform. Now on td ameritrade, it's called standard deviation.

That's we're going to be working with on your platform. If you don't have td ameritrade, it's probably going to be something different and it's normally called regression channel. So again, if you're not using tdr ameritrade, you have some other broker, try looking up regression channel as that's most likely what it's called on your platform, all right, guys now we're going to go ahead and actually add this tool to your chart. Now, if you're a beginner and you're just getting used to the platform of think or swim again, just follow every step in this video and you shouldn't have any issues setting up what you need to have set up.

Okay, so the first step is pulling up a stock chart on your platform. Doesn't matter what stock any stock will work. You just got to pull up a stock chart from there you're going to go up to this beaker icon. Once you click it, it should open up a page like this from here.

You want to go to the search bar type in the word standard. Once you type in standard. The first option presented is said: standard dev, channel you're going to want to add this three separate times so click it highlight it hit, add selected, add selected, add selected. There's a reason we're doing this three times which i'll get to in just a second now you're going to want to go into the bottom two and edit them a little bit so double click.

It that's going to bring up this next window. What you're going to want to do to this first category, where it says deviations you're going to want to change that to 1? Okay, now you're gon na go to the next one, open it and you're gon na change this to three. I personally like to change the colors over of these trends, but you don't have to for simplistic purposes in this video we're not going to change the color we're just going to go ahead and hit apply once you hit apply. You should be presented with a bunch of lines like this.

This is the standard deviation channel. The simplest way i can explain it is this channel is giving you the expected or potential fluctuation of a stock. So there is one more setting that you have to change on thinkorswim, or else it can kind of scrunch your charts and make everything look really weird. So your charts might look really weird and now that you've applied that this is what should help fix that if, in the event you're experiencing that issue, go to the top of your screen.

Go to the gear icon from here you're going to want to go to price access and you're going to want to uncheck the fit study so watch what happens after i click fit studies and then click apply. You see how the chart kind of changed over a little bit. Generally speaking, it gives you a better appearance, it's easier to use when you go to that that price access and click uncheck fit studies, and then what should happen is your screen should try to enlarge a little bit. So that's the way i use it when you're trying to work with this channel and you click fit studies again it scrunches everything makes it hard to work with.

I find it way easier to go to the gear icon there and then uncheck the fit studies um. You know thing whatever you want to call it, so we're not going to be going into how you use this channel in every single scenario. But what we're going to do is give you the basic foundation of how you should use the channel and then from there. Everything should start to click and i'm sure you'll probably be able to pick it up on your own after using it for a couple weeks or months.

So the way that i'm explaining this channel is going to be very simple, very elementary you're going to have to work on it way more than just watching this video once to fully get the hang of it, because there's so much to know, of course, but to Put it simply the way that this channel and the way that this tool and this study works is when the stock is trading above the top line? It's supposed to go back down when the stock is trading below this line. It's supposed to go back up, so something you could probably relate to is when a stock is exploding and it's going up and everybody's talking about it, don't buy it because it's probably well overbought over the three deviation mark and it's gon na get sold back into This is normally why people lose when buying a stock, that's going up because they waited too long and instead of buying it in the low risk area, they waited until they felt comfortable or that it's really going and they wait till the stock explodes. And then they end up buying it in the high zone and then it gets sold into shortly. Thereafter again, like i said, whenever the stock is trading above the top line, it's supposed to come back down whenever the stock is trading below the bottom line.

It's really supposed to go back up. Each one of these lines represents something different and they all have a meaning and a purpose, but the easiest way for me to explain it in the easiest way and the highest probability chance you have of winning while using this is, if you just stick to this Anytime, a stock is above the top line, don't buy it. You'll get you'll you'll, take a loss and instead of buying it either sell it short, and when the stocks are trading below this, this level down here, don't sell them, buy it and you'll most likely win. Then, from there you'll learn how to use all the rest of these levels when and why so.

The two time frames you're most likely going to want to use while running the system are going to be the one year. One day chart in the 180 day four hour chart. These are the two most common time frames. I use the market in stocks, respect the trend lines on these time frames like crazy day in and day out, and what i'm trying to get across to you is these levels that you're being presented on the one year day chart in the 180 day chart on These bigger trends are usually the really good buy points, the ones where you buy in the stock bounces, and then it keeps going it doesn't bounce and then stop and the reason i say that is because you're buying off the long term trend you're starting to buy With smart money here we're taking a look at the stock creg.

This is a one minute time frame, so this is only showing what the stock did on the current day. So you can clearly see the same concept applies, whether it's a one year day chart or if it's a one minute chart when the stock gets near and above that top line it sells down, and when the stock is trading in the lower lines it gets bought Up okay, so this is what we're trying to teach you. This is a standard deviation channel. The channel gives you a good representation and guide to follow as it's telling you what the range of the move could be.

So when the stock is trading down here at 7 30, you could say to yourself an at most target on the day would be 8.50. Anything above 850 is dumb to even try for so when you see a stock trading the next time and it's blown up and it's sitting next to this top line, you'll go it's too high risk to buy here shouldn't be buying. Now, what i'm going to show you is a picture from google. That's going to help really tie all of this together and that's where we're going to finish this video all right guys.

So here's that picture on google! I was talking about bringing up and putting side by side in comparison to your stock chart, so believe it or not. What's here in this picture on, google is the same exact thing: that's here on your stock chart. The reason i brought this picture up on google is because what we want to look at are these percentages in here. Okay, so you see how it says: 99.7 and the arrows go to the three and the negative three.

What that picture on google is telling you is that most data is going to exist within this negative 3 to 3 by 99.7 percent of the time so convert that into stock talk, and that means that 99. Let me draw that 99.7 percent of the time stocks are going to stay in between these lines. So when a stock is trading near that line, there's a 99.7 chance, it's going to go down and when a stock is trading down on this line, which again is negative three, which is again here, there's a 99.7 percent chance that the stock is going to go Back up, you can even go as far as the next one, so this one here is 2 and then this one here is negative 2. and the data says that 95 is going to exist within side, the negative 2 to positive 2..

So therefore, 95 of the time, the stock's price action is going to be in between this negative, two to or sorry positive, two to negative two. So what i'm trying to show you is, there is a standard deviation or a standard fluctuation in stocks like to follow that, depending on the time frame that you're using that standard fluctuation can become greater or smaller, usually going to want to use the one year day. Chart in the 180 day chart because the standard deviation or standard fluctuation amongst those two time frames tend to provide extremely reliable, buy points. Where are those buy points? Those buy points are each one of these lines every single time.

I hope you guys liked the video. I hope you learned something new if you guys are still kind of uncertain on what it is. You just learned in this video make sure to leave some comments in the section below. I always look at them.

I'll answer the ones that are relevant and if i need to make another video covering this topic, maybe a little bit more in depth. I will definitely do so so with that being said, thanks again for tuning in i'll see you guys on the next video take care.