What's going on, guys! welcome back to the channel. Appreciate you tuning in. Figured I would hop on, do a little recap of today's Uh Market before heading into the weekend. Um, so let's just jump into it.

So of course, as usual, we're going to start here on the Open High Low Close chart no pre-market no after hours and we're going to use the 50 SMA on that time frame as the over under Bullish Bearish Trend identifier if you may. So what we have here going into this morning, the 50 SMA is priced at 447.89 Now mind you, when you're using an Open High Low Closed chart, it doesn't show you pre-market or after hours trading activity. Therefore, when you're using an Open High Low Close chart like we have here, you're going to be presented with a lot more gaps because again, the gaps are created from pre-market and after hours. So if you're not showing that trading activity on the chart, then it just calculates from Market close to the market open.

Okay, now part of the problem, not really a problem, but part of what will happen if you use an Open High Low Closed chart is you won't be able to see the pre-market and after hours data. and many times you still need to look at pre-market and after hours data. But if you use pre-market and after hours data, then the 50 SMA will not be priced at the proper location in which we want to use. So again, we always have a pre-market chart up and on the screen, but the price levels that we want to use.

in trade around are derived from the 30-minute open High Low Closed chart on the Spy or SPX. That's it. That's what you use this for. You don't use it for equities, you don't use it for other stocks.

You simply use an Open High Low Close chart no pre-market no after hours on a 30 minute time frame and the 50 SMA will be your over under bullish bearish trend. Then of course we still have our pre-market chart. And really a lot of the reason why we have the pre-market chart is because for example, you see how the 50 SMA is priced here and the logic is if the 50 SMA breaks down, we should be bearish. If you only look at this chart, you essentially don't know what's going on pre-market and after hours.

So if you're only looking at this chart to get your 50 SMA price point that you want to use as you're over under, you'll notice that the Market opens up and it's below the 50 SMA. So at what point did it actually break down the 50 SMA Because it didn't do it at a market open, it was already below. It must have happened pre-market So ideally what you do is you use the Open High Low Close chart 50 SMA over Under Bullish Bearish. And what we do during the pre-market after hour sessions is we always map off with the horizontal price point line where that 50 SMA is at.

Now if you pay attention to the chart on the right, there will be a purple line that that appears right there. It's actually blue. All right. There we go.

So you see that blue line that I just added to the Chart. Okay, that is in reference to where the 50 SMA is at. So the 50 SMA is priced here when using the Open High Low Close Chart. All right, that gives us the price of 4 47.89 You can see it breaks it down.

That breakdown happens during pre-market where is 447.89 It is here again, 447.89 Do you notice that once you take out that level, the volatility really snaps down and that's pretty much your downtrend confirmation. All right, it's possible today. You know we could have came here to the 50 and then bounced and broke down later. But ideally it breaks down pre-market So just to recap there, we'll use this chart to get the 50 SMA Your Bullish Over Bearish under it.

During pre-market and after hours, the market may decide to break that price point. You won't know if it breaks that price point unless you're also viewing a pre-market chart. So we use the left chart to get our price points and we use the chart on the right only when it's in pre-market and after hours otherwise doesn't really matter. All right now, what we're going to do is we're going to come into this chart and we're going to take a look at what happens.

All right. So we know that 44789 is a 50 SMA Once we break below that, the rules are as follows: Okay, once we break below this, you are no longer Bola. So no bull. Why? Because below this is downtrend.

All right. Number two: When you break below this: if you were in a long position, you close and you go to cash, your aggressive approach is whether or not you were in a long and it breaks down, you close, then you go short, or even if you weren't in a long and it breaks down, you go short. Okay, so once you get below the 50, the rules are: you're not bullish. You either change from when you were bullish to bearish, or you just simply go to cash and wait for your next Buy Signal Okay, so again, today, we broke down the 50 SMA During pre-market that is the start of a breakdown.

You no longer are bullish again. This isn't necessarily catching a top, but it's helping you in the direction of the market overall. So we break down. we're either in cash waiting for the next Buy Signal which would be a break back over the 50 SMA And in this case, it's no longer here.

at 44789. Right now, it's at 44704.. All right. So here, cash, not bullish, or you're entering short, Those are the rules.

all right now. On top of that, there's things that we do once we get a breakdown to help give us, um, more of, uh, uh, detailed possible entries into the trend, right? So for example, we know the ones that breaks down this level. It's Bearish. Okay, that's great.

But then what do we do with the rest of all of this? Well, one thing we can do is we can use an anchor V-wap at the breakdown. So when we break down the 50 SMA we can anchor a V web on that breakdown. Okay, and are objective. When we're anchoring The View app on the breakdown is we're essentially calculating the V web of that downtrend, right? So if a downtrend starts here and the Market's going to flip and trade bearish and this price point is the signal to do so, then it's very important that we start tracking the volume weight, average price of that particular signal.

Okay, so we break down the 50 SMA here, right? Market's going to go bearish. We're going to have a cell right From there we go. Okay, how do we join in on that bearish move? Well, if this is the breakdown, that's the signal to be bearish, then we track the volume weighted average price of that. That's going to give us the volume weighted average price of the sell signal to follow.

So start the day: You had one possible entry, two possible entries, three possible entries off that level. Okay, and that would help you jump in on the trend at a very low risk opportunity. This is another tactic you can use. Say that you missed this entry and this entry in this entry.

All right. You can also anchor V webs to the high points that respect the V web. So for example, say you missed this entry here. Let me zoom in some All right.

So let's say you missed this entry here. Okay, what we'll do is we'll anchor a view app here and again. What this is going to do is give you the next expected Zone to short into so you can see if we anchor The View app to that tag again you get another entry. excuse me in this area.

Another example of that would be back here. All right. So let's say you missed this short entry but the market tanks from that. That's a good spot to Anchor if you have to a new one right and what this is going to do is provide us the next short way later on.

All right or right here here and then later in the day take this one off. That was accidental here. All right. Now you see how well we respect the view app here and it breaks down.

What we can do is we can anchor another one too like here and that's probably going to line up with these tops. Okay, so there's your next anchor and that is how you help yourself predict the kind of tops and Peaks or whatnot in particular. Trends Uh, that's one way to do it. Okay, so to kind of recap and go through the day as we watched it.

I Will do this somewhat quickly. So this is kind of how we went about analyzing today's market. All right. So it first starts from the weekly.

Now now let me rephrase that. Remember how we just said that being bullish or bearish under over the 50 SMA doesn't necessarily give you tops, but it gives you Trend and direction. There's ways to predict tops right before something like that would happen right? Knowing to be kind of short up here and expecting that, you know we're probably going to continue to break down. So one of those ways that we do that is, we use the weekly chart.

So just looking at this weekly chart, we have this. um, we have this weekly view app here. The weekly view app is priced at 452.53 Okay, so this previous previous top way back somewhere coming up here. Okay, you see this top.

This top was at 450.. let me change this time frame to like a 10 minute. All right. So right there that top that top was this rejection on the weekly scale.

So we have already known that from here we were coming into resistance and to be bearish. not long. Okay from there the market breaks down in just this last week. what did we do right? We saw the market move bullishly back up to here.

Ideally what that means is is the market is still trading below this weekly view app. So this weekly view app is creating a lower high. All right. So just this last long going up here, we know that basically the maximum move right now is two like this high.

If it were to break through I'm sure something else could happen, but until that happens, that Weekly level is sort of the resistance. All right. So when we look at the market we know it's below the weekly. Therefore, we're probably in topping areas.

So this morning when we top and roll down and break the view app, we just expect that it's just overall this weekly chart rolling over. And today it rolled over enough to re-break the short term 30 minute 50 SMA which dictates short term bullish or bearish trading activity. So essentially we use the long-term weekly to predict our longer term top. From there, we'll use our 30 minute chart to figure out where the 50 SMA is at, to know when is the trend conformationally flipping in the short term.

So is there. So again, we don't necessarily have to short tops, right? We could assume. yeah, there might be a top here, but we'll know that that top is being respected if it rolls over, breaks down and takes out the 30 SMA and we should flush the market okay. And then on top of that with today's breakdown, what's a tactic that you could use to gauge how far the market May sell off? Logically, that comes down to a Fibonacci trick, which is just measuring the gap for the day.

So by the way to do that is you. Uh, you go from the open to the day's previous close previous Ace close. So essentially just going to look like this, you measure from the open which would be the start of today, back to yesterday's close which would be here and all you're effectively doing is measuring the Gap and from there that will give you your 161 downside. Target So this morning as the market broke the 50, we went bearish.

We go. What can the targets potentially be? First go-to is going to be measuring the Gap to figure out what is the 161 extension of the overnight, um, overnight move And that would give us a move down to Four Four Five Fifteen. So Four Four Five Fifteen was our main go-to downside. Targetable, logical destination that we had today just based on the fact that we've broken down the 50? Therefore, we're bearish.

The overnight Gap suggests the market can move or have the possibility to Target something as far as way as Four Four Five, because the Gap is suggesting that. Okay, did it move lower than that? Sure. Okay, that's no problem. Okay, it's not necessarily about finding the exact pinpoint bottom and things like that.

It's just what is a logical targetable price for the day. Based off of what the market has already provided, the market has provided this big gap down. When we measure that big gap down. The Logical targetable price Based off the gap down, Is this 161 level Is the 161 level going to be the bottom for the day? Maybe.

Will it go further than that for the day? Maybe. But is that price target of 445 within the realm of possibilities based off of what the market is providing? It is because again, the overnight Gap was this when we attached Fibonacci to it. It gives you the extension to here. So whether whether or not it happens is a different story.

But what you're doing and how you're putting the Fibonacci on the chart and you measuring the gap that 161 Target is entirely accurate and entirely correct. What you've measured is legitimately giving you a Target to 445. Okay, that's how that works. Um, so so yes, today was bearish.

We broke the 50. we hit the 161 Gap Target Very awesome. Now What? I'm going to show you is the next big weekly level that I our Traders my partner Brandon We're all going to be well, maybe not all, but I'll show you the next Zone and level that we'll be watching for a long now. I'm not going to sit here and tell you that this next long spot is going to create some huge breakout, but the zone that we're going to be focusing on should provide a nice long entry.

Okay, so what we'll do is show you. Um, just like just like we did here on like the one minute. So if I go to like this one minute chart here, what we're going to do is show you the The View app continuation process. So remember how we took this view app and we anchored the breakdown and then from there we said if you anchor another one here that can give you your next levels and if you were to anchor on the V web tag then this would give you your next levels.

We're going to use that same logic just on a bigger scale. takes longer to play out, more time for it to end up getting to the level. So now what I'll show you is kind of what we're projecting for maybe the next couple days. Going the next week or so is it's kind of expected that the market is going to fall to this area low style.

We're going to change it to Green since we're looking for support here. So uh, we're using this Zone We're anchoring to this low and we're anchoring to this weekly low and that's effectively going to give us a dip long Zone here. Okay, and so let's look at it on a chart like this: Okay, so kind of expecting that the Market's just going to fall into the zone. So ideally, as long as the market does not flip into a new Buy Signal and or our current sell signal V-waps Whether it be one minutes, five minutes, 30 minutes, as long as the market remains bearish, we don't get a new conformational Buy Signal It would appear we're going to see the market slide into this weekly zone.

Now when it gets to that Weekly Zone We're kind of expecting we're going to get a bounce out of here. now. Does that bounce go four points? Or you know, like, four dollars, Three dollars a share or whatever? Maybe. Um, I can already start to gauge what that might look like.

But the bottom line is we're in a bearish sell signal. Currently the next big upcoming V-wap weekly support levels that we have start here. So this is going to be the next big Zone that we start to really look for along and we're talking about a long we're not looking for like one of these, right? We're not looking for that Now we're looking for a potential one two day turnaround maybe a a a a hold in here Gap up the next day sort of situation. Now it's possible that these this Zone doesn't hold right.

It's possible that it bounces and then re-rolls and breaks down later. But it's just kind of the assumption that after this big sell-off if we move into that buy Zone there should be at least some respect to give us a good bounce, hopefully leading to maybe a two-day move right? Something like that. Now here's the other kind of slight scenario and that would be if we do get a good bounce off this weekly. Zone Remember that you know the market is stuffed right there.

so let's say the market holds the dip here. The maximum that this Market should bounce or could balance would be all the way back to that high. Now that's probably not going to be the case and the reason being is what we should already be doing. which I am you just don't see it is.

We're already anchoring a view app here, right? We're already anchoring View apps to the highs of this move in this rejection. So the logic here is if we sell down into this level hold, that's next week. So next week we get a new candle. So next week another candle.

If we come down, hold and then say the following we start to bounce then we really wouldn't want to try to take that long. move up any further than where this new continuation B web exists Now right now that view app is all the way up at 451. But next week we're going to get a new candle. which means this is going to update down a little bit.

So if it takes two weeks down here so we sell off for next week, maybe and just kind of hesitate down here. So if it takes one two weeks, whatever, this V web up here will slowly creep down right so we could very well look at a situation where the markets just kind of kind of support down here for a week two and just kind of stay trapped in this range. That's possible. The only way that this leg rolls and really starts to break down more is first it's going to have to get to that Weekly zone.

So right, we're going to come in here and as a short-term analyst, right, we're probably going to go. Yeah, when we get there on the day, probably take a little bit of a long take, some profit, and uh, if it later comes down breaks here, then we're just going to go to our next levels down and so on so forth. Um, so maybe a little bit of a lot to take in, but hopefully that helps and uh, we'll catch you guys next week. Take care.