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What's going on guys, welcome back to the channel. Appreciate you guys tuning in Markets like a pretty crazy turn to the downside: um about midday? um towards uh, the afternoon. So I figured it's good to pop on, make a video before we start tomorrow morning in case this does cause, uh, cause a shift in momentum. um and a couple things that you should pretty much just kind of watch for. uh, going into tomorrow. So as you guys know, um, these levels you see here this blue line and this red line I mean these are the anchor v-waps from you know, pretty much the last CPI release. So the last CPI release was right here. All right. So this was like the CPI day this big gap up day in this run. So this is a CPI release this here 50 SMA that was broken pre-market like say like here. Okay, so the 50 SMA breaks upwards say right here pre-market Obviously that's a bullish signal all right. And then ultimately at Market open it creates a bull cross and so on so forth. So I got anchor V Webs pretty much tracking the volume weighted average price of this current Trend and this CPI cross move. Okay so what that means for me is then we won't see a shift in Trend until the price actually breaks this and we Trend below it. or we break it, create a lower high off of it and sell down. break it selling volume Etc break the 50 SMA create a bearish cross Etc So if we look at when CPI came out here, we'll zoom in on this day one second. All right. So we zoom in on this day. and just to make it simple right, this red line is the main V web. This blue line is a secondary one. But ultimately here's your red view app for the CPI release into it alarm into it. Long into it Long Okay, then we continue over. All right and you'll see that we don't end up getting a retracement. Uh to this V-wap Until this day here when we get a gigantic sell-off into it pretty close to it, long back into resistance, so back down into it in the deviation and long again today. So this is your hard line support volume weighted average trend and when and if the market starts to break below it, that's generally where the market can give way and sell back off. So let's build the case that we are going to go into a sell-off right? That must mean that this is a distribution top where Shares are being exchanged and distributed and eventually we would sell off. So the support that everyone sees would be like say this, this and this right Which as you can see where the V-wap is. Okay, So with that being said, we know that if we were to go below this this this successfully then we're probably going to be taking out dip buyers off these support levels. Okay so let's say this was a distribution top and if so and played out successfully and shares are being distributed and we were to break down the target downwards would be here pretty much into these prices First, Ideally we probably would see 386.35 Okay, so in the event this rolls over, market ends up trending down here. Whether it was a day or two days or whatever, this would ideally be the move that the market would probably be going for. 386.35 No excuse me. So when we look at the chart to the left, this is the moving average system. So until the blue goes below the red, we don't really consider that we get a sell signal. But there's two things that I and many others look at prior to this cross happening that could give us the early indication that we're going to end up getting a bearish cross and that would be a break of the 50. SMA. So right here at the price of 396.77 396.77 that is a 50 SMA. If this 50 SMA were to break, which it did earlier today, but ultimately If This Were to break and we start to create lower highs below this price point. which is like when I say 396.74. And that results in US breaking the anchored V-waps we're pretty much selling off. That's what you'd assume. Okay, there are times you can get false crosses. Now that sucks. But it's okay because say we get a false cross right and we cross and starts to go bearish. Then ultimately we get dip bot and come back up. That's okay because it's bound to happen and you know that you're wrong about that bearish cross or that bearish move if the price comes back up and re-breaks over the 50. SMA. So an example of this may be say tomorrow we break below this okay and then to start the day, we kind of sell down like this and then ultimately come back up grind and then we create this big reversal. It would happen as we re-break through the 50 SMA. Ultimately, that would be kind of like the defining moment of okay bears are wrong and we're back on the bull flip. All right. So in the simplest way possible, Um, you can pretty much say this: this is the volume weighted average Trend Right now, until we're below this, we will not have a big sell-off We can see pullbacks as you've been seeing pull down, pull down, pull down to this level. But until you cross below it and the 50 SMA, you don't expect new selling pressure to really enter the market. Um, you know, in shift run. That being said, we're very close to the 50 SMA right now. So overnight, if the Futures Traders Market moved the market below this price point, we're probably going to get some selling. And then ultimately, if we start to get below 395.40 which is the volume weighted average price, we're ultimately probably gonna see some selling pressure. To the downside. Now, the last little tidbit is this: this is a view app today which is actually kind of wrong. It should be like right down there. Oh, it's because I'm on a five minute chart. This is why So if I were to go to this five day one minute chart The View app that I have on the chart today is for the CPI Now on CPI days I expect that the market can have sound of a choppier grind at times. Um in this V-wap that I put on is just more or less a test and kind of like a secondary thing. um, but you know I kind of play around with it. So I don't want you guys to put too much emphasis on this one specifically, but this is a CPI release anchor and you can see we pretty much Spike up and ultimately pre-marketly break it and we pretty much just maintain below that all day resulting in a downward grind that ultimately breaks some statistical probabilities and the 10. SMA So again, if you look right here, that's the location of the 10. SMA So this is the short-term Trend This this Blue Line This is the short term Trend All right. So today we run into multiple statistical resistance probability levels. The CPI anchored V-wap is right here. so the blue line. so this is kind of how the day goes from from. CP Uh PPI Release: Excuse me So PPI Release Market spikes into pretty much the weekly deviations. daily deviations plus two deviation Etc A lot of resistance points. We cannot maintain the V web. For the PPI release. we break down pre-market and then we maintain below it and maintain below statistical probabilities. We then sell down to the next probability hold support bounce back up to the probability above, ultimately getting back below. Then this move here is a bounce off the 10 SMA So that is a short-term support. So we bounce it okay, goes back up. We come back down, break the probability, hold the 10 SMA briefly right here, pop back up, and then we break right here with the break point of the short-term trend, which then snaps us and takes us where to the 50 SMA and the anchor V webs. Okay, and you're not bearish until you successfully Trend below these or get some sort of a massive selling pressure here or a lower high below it. Etc So we run into it and instantly see a big spike up. Buyers are coming in. create a reversal. Pop Move Re-test Low slams, back up. This move goes up to the Anchor V web. Okay, so a little quick refresher of everything there. Bullish cross these lines. Here are the volume weighted average price of the bullish cross and the CPI release date. You're not bearish until we go below this level. The SMA system basically says this is your short-term Trend. As you start to break below this, you might see some short-term selling if you can get below the 50 SMA that's where you can suggest that a bigger trend is Shifting down. If you get the 10 below the 50, you've created a bearish cross. That being said, if we were to look into the chart a Little Closer and we take a horizontal line and we put it directly over the price of the 10 SMA you will see that as the Pinnacle break moment where the market sells off. Okay, now in between this system you also have different things, statistical markets probabilities which are all these lines here here right? And then you have the PPI release view app today which is this line going up and fading down. you will see ultimately we reject this high price of 403. we just Trend down Trend round Trend down. we bounce the 10 trying to hold the short-term Trend support, create a downward wedge, break the 10 and anybody that was long around this level and from the 10 SMA whatever they settle down, they stop out, we push it down and the market sells off. To retest the 50 SMA location and the anchor V web. Now along the way, there's also a couple other tactics that I'll run through very quickly and this is just going to be some Fibonacci stuff. Okay, so this is going to be some Fibonacci stuff. and I'm going to make it pretty quick. So regardless of your bias or belief or this that and the other Gap up. Here's a tactic: I use waiting for the first 30 minute candle to close when the first 30 minute candle closes. I can pull from the close of the body to the close of the previous day's body. This would give me a gap up. Max Target run of 405.60 the dip support that you would be buying off of to attempt this move. if it doesn't just break out and run. Would start here at the price of 399.18. 61 8 Retracement You will see the market pretty much stalls. We pull back and we bounce off the 10 SMA and the 61 retracement. We cannot break over the hundred percent retracement level. therefore we're not breaking out yet. The market then moves back down. We try to hold the 10 SMA and the 61 retracement again and ultimately you will see that's where the market breaks down. So there's two strategies that I would use on a gap up and a gap down situation. and there's a So this is one of them. and ultimately the long move Max Target for me would pretty much be this on the day 405 60s. Now if this Fibonacci Sequence now remember what we just did was a Fibonacci and a Fibonacci is a Fibonacci Sequence And if the sequence of events play out, then there's things that are going to happen. So let's say that we did play up to the upside: Market gaps up, blah blah blah, just runs there. Okay, cool, it's done. It achieved it achieved the goal. Okay, Market doesn't just run, it pulls back and we hit the 61 or the 50 or the 30 and then we go right and we go all the way there. Okay, Market has done that right now. There's also what if this is wrong and we're not going here and the market is going to shift back down, this would be a failed Gap up Fibonacci sequence. So for every move, there is an uh, an inverse move which might also be that kind of saying for like what? like it was a positive, positive or negative I can't remember the saying. Okay anyways, but you get the point. for every move, there's an inverse move. Okay, so everybody getting long say today their volume was used to shift the market down so their loss goes to these people right? and that goes in their pocket and vice versa. So if this upwards Fibonacci fails, there's two things that I will recommend for you guys to do. Okay to figure out the inverse destination Target of the market if the first Fibonacci you're using fails or in this case we Gap up you pull from the close of the first 30 minute candle body. Oh right. Okay, there we go. Close of the first 30 minute candle body. to the previous closing body. This is pretty much your support level. Your dip by Zone This is your failure point of that Fibonacci You would say like guaranteed failure. Okay, so there's two things you can do. You can pull a Fib from the 38.2 percent retracement of your first one so your first one's still on the screen. You can pull from here to the previous high that was set in and this would give you an expected downside Reversal: Target 161a So the same objective of trying to go up to this one Six One eight on the day when we drew the Gap up Fib it's the same thing on the downside, the inverse of that. So for the participants that were trying to go here and we're wrong, their volume is used to wash the market to here 618 or sorry One Six One Eight One Six One eight, Exact inverse. Okay, now there's another way that you can do this. You can also draw from did that one second. So again, Market opens up in the day we close in The first 30 minutes you drop it from here to here you go. Okay I want to get to go up to here and then it starts to get a little weak and going on. I Think that's going to fail? Well, if it does fail, what is a possible downside reversal Destination: Target Tactic one would be pulling from the 38.2 to the previous high and I'm going to pull this one to the side just for now so we can draw another one. So the one on the far right that is I'll change it to White. So I'll do this set all colors white so the one on the right far right that's pulling from the 38.2 failure point of the first FIB giving you a 1618 Target of 39468 which is pretty much the low. Tactic number Two: you can pull from the 61 retracement level to the previous high. So pretty much when you see the market bounce 61 61 and it's starting to get weak and you're like I think it's going to break. You can also pull a Fib from the 61 retracement level to the previous high and basically say well, since the previous or the first FIB on the day, let me let me. yeah, let me delete this one and move it over a little bit. Let's move to here. We'll make this purple. Well, I didn't do that properly. sorry, Is that purple All right? So pretty much this first FIB is for The Gap up Target of this level. All right. So we Gap up. We're trying to go to 1618. Well, it's not guaranteed moves can fail and the volume of the preceding traders in Market participants will be used for the next move and then the volume of those move. that move will be used for the next move. and so on so forth. And that's how the the stock market works because again, it's a zero-sum game. so it's pretty much just stealing money from one person accounts to another person account. So the only way to even you know do that right is to make sure the markets go up and they go down and they trade back and forth from previous volume of previous volume because if there's anybody that didn't take their trades off or whatever whatever right, it's their volume that then gets stop loss and their loss gets shifted into somebody else's account. Okay, so if the volume of the market starting out, let's just say they're trying to trade long up to 1618.
and we come to the conclusion that play is going to fail. Then the inverse of that move can be tactic One, which is pulling from the 38.2 to the previous high in tactic number Two, pulling from the 61 retracement to the previous high. So there's the two tactics I use. Now, the reason I use these two tactics is because sometimes when we do the 38.2 the market doesn't always sell down to the one six, one eight, we get close. And then there's times where it's the pull point from the 61 percent retracement to the previous high that gives a more accurate 61 or 1618. Target. So pretty much the reason I do both is because it gives me a desired Zone as opposed to just trying to be entirely perfect on the price by the penny. So ultimately, by using the wider tactic number One, pulling from the 38.2 level to the previous High creates a wider Target Okay, and pulling from the 61 to the previous High creates a um tighter Target So you'll see that the purple line is tactic number Three pulling from the 61 to the previous high that will create a 161 down Target of here and a 261 Target of here and you'll see we don't break 261. And then tactic Number One pulling from the 38.2 to the previous High creates a 161 here and a 261 all the way down there. if you ever see the market do a 38.2 break like this. So like for example, FIB if the market ever does this and goes to here, it's almost a guaranteed clapping bounce. But anyway, so that's um, that's that. Um, here's the next thing I gotta run into uh before I go because it is important. So remember how we just said this is the first FIB All right. So using tactic Number One, pulling from here 38.2 break to the previous High and so I'm going to delete the first Feb right? So let's just say again, Market opens we start to Trail over we're like, you know what? I think we're going to break down We do and I pull from 38.2 to the previous high right here. I'm now going to delete this one since it's since it failed. We're on to a new sequence. So now the new sequence would be This All right. So now that we've snapped down to the 1618, blah blah blah, we know that the now the entry level for this trend to continue would theoretically be the 618 to the 50 and this would be the failure point. So now this would be a new short entry location for the Fibonacci sequence that we now have. Because remember the Gap up one's done. We reverse, we shift down. So now we're on down and that will be the 61 and 50 retrace move of this Fibonacci sequence. And ultimately if we continue to maintain below this, then arguably into tomorrow, we're going to get 2618 which is 389. That's possible. And we know that ultimately if the market is not going to break down and it's going to go higher, then we know that the failure point of this sequence and this move would be the 38.2 So now we can start to build a game plan going into tomorrow and say okay, well let's say that this bearish move doesn't continue. We end up going up right. What is going to be the inverse of this particular sequence of events Now Okay, so the inverse of that move will now be something like this: Doing tactic number one and two would be pulling from the 38.2 And we'll do. We'll do two here. Well, I I Yeah, we'll do two. Fine, pulling from the 38.2 to the previous low, so that'll be right there. Okay, and pulling from the 61 retrace level to the previous low, which is right there. And so that's going to give us two Targets one here and one here. This one will be the 38.2 pole that creates a wider dispersion move. Okay, the pull point from the 61 creates a shorter dispersion move. So ultimately, in the event you see the market, get back over this price of let me just delete a couple things. Make sure I'm doing this correctly. I'm going to redo this myself. That's why I normally color code them because once you do too many then it gets a little confusing. Yes I Get it, people like Oh, that's too much. but when you're teaching it I Want to leave it up so you can see all of them? And of course, as one gets broken, a new one comes. You can delete the old and clean it up. but if you're trying to map moves out ahead of time, you know you kind of need these price points just to start things off. So um, we can now go like this. So let's say that this Fibonacci does end up failing. We can pull from here. Sorry, we can pull from here to the previous low so this would be one and that's a 61. Okay, I'm going to delete the old Well, no I got to do one more and then I'll delete the old one and the previous song. And so ultimately we would come up with something like that tomorrow. In the event the market gets up and through. uh yeah, this price here then we would expect we're going to jump up to here. Okay, and if the market were to get through here and we or yeah you know, vice versa, you'd expect we have a 618 move up to here. So the max inverse reversal move going into tomorrow would pretty much be like this to this for now. Okay, and a potential downside destination was like 389 or something which would be this sequence here. Well no, that's not the right one. It was a 38.2 which would say is maybe like there something like that. Yeah, so the 261 On the downside somewhere like 389. Um so so yeah, those are some Fibonacci sequences that can play out. but ultimately there's still what the anchor V web. Until we break that, there's no momentum shift down so people could be trading bearers thinking the Market's going to break down and it doesn't and ends up holding here and squeezing back up. All right. So if the market let's say just ends up holding the Anchor view app. Sorry, yeah, let's just say the market ends up holding the anchor View apps here and we don't break down right. Let's just say we end up kind of like holding this and then we come back up right. You could very well see the move right back up to like 404s, you know, like that. whatever. I just did those prices put on the chart right because that would be the inverse of the Fibonacci which I can literally do in two seconds if I'm not explaining it. So here, boom I can go boom boom like that I could just do this like that and go boom boom, boink and doink and that's pretty much good enough and that's pretty much there. So 402s 404s which put us a Zone like this would pretty much be our expected reversal flip-flop if that sequence failed. We didn't break down and we hold a V app and we tricked people and Market flipped um, vice versa That you know for now, we could see like a 389 move right? But or like a 389 390 move. And remember at the beginning of the video I was saying that if the market were to shift and we break down, then ultimately we would be targeting back to the 386 and the start point will be 388.77 Our Fibonacci was like 389 something to 390 so you can kind of start to see how that all lines up. Um, so anyways, you guys have a great night and take care I'll see you in the next video.

By Stock Chat

where the coffee is hot and so is the chat

7 thoughts on “Most important levels going into tomorrows trading session”
  1. Avataaar/Circle Created with python_avatars Keezer says:

    The fibs are so awesome, thanks for teaching us Connor.

    For me, measuring the gaps (previous day close to todays open) on a daily chart gives a pretty accurate measure of where price will go for the first run of the day. To be safe I also watch the 38.20% line for a reversal, then pull a fib from there to the closest peak/trough. I trade SPXL and SPXS as price moves up or down.

    Anyway, fibs are fun πŸŽ‰

  2. Avataaar/Circle Created with python_avatars Tammy Tamz says:

    Thank you sooooo much for sharing this early. πŸ™β€οΈ πŸ‡ΊπŸ‡Έ

  3. Avataaar/Circle Created with python_avatars Ryan says:

    Love all these videos lately! Cuts thru the noise and paints a clear picture. Thank you

  4. Avataaar/Circle Created with python_avatars Chodgey says:

    Thanks for the video bud! If you want to hear more about statistical probabilities conner has a day trading course which he should mention in his videos if he wants people to learn more!

  5. Avataaar/Circle Created with python_avatars Gabriela Liesenberg says:

    Do you have by chance a video explaining how you execute your daytrade in options?

  6. Avataaar/Circle Created with python_avatars Gabriela Liesenberg says:

    Really nice video! Thank you for sharing this information πŸ‘Œ

  7. Avataaar/Circle Created with python_avatars Joe Chan says:

    You don’t care about the Poland news?

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