What's going on guys welcome back to the channel uh today we're going to cover roku, i'm going to walk you guys through a ton of different things on it and help. You guys understand how you could learn that a stock was going to fall 24 per share on the day and how you could have capitalized on the short side of it. So today's video is all about teaching you pretty much everything you need to know about trading in kind of one video. So, let's get into it first thing that we're going to do is we're going to start here with this chart without pre-market data, no pre-market data? No indicators, no nothing just so you can get a hang of price action all right, so we're going to look at the daily chart one year day chart.

Why do you think this big down day happened? The reason the big down day happened is because we just dropped below this low point right here. You see that low point that was like the last line of defense in regards to price action support. I will teach you guys another form of support in about a second here that hopefully blows some of your minds, probably not too many of you, because youtube most likely won't promote this video to anybody else that doesn't already know about my channel. So most of you guys already have been mind blown once so you see that this is the price action low.

So the reason we're getting a big down day today is because we tried to hold - and we just couldn't so we snapped below so here's something to always remember when a stock gaps down or gaps above a support. A lot of times you can get follow through in that direction. So what i mean is when you woke up today and you looked at roku roku had gap down below its previous support. In those cases many times you will see, follow through in the same direction and now that's only like a smidge of it.

Now let's go ahead and take a look at the pre-market chart, so we can see the pre-market trading action today on roku. So now, when you include the pre-market data, there's a little bit more of a story here for one, we kind of have like a little bearish pattern here. Once the market breaks down, we bounce up, we start to roll down, and you know arguably some might call that some sort of bearish pennant that then snaps into the open and runs all the way down here. So now, what i'm going to show? You is how you would pick two levels that the market consolidates in here, that it flags into in how you would pick this as the be all and all target for today's drop on roku.

The way that we do all of that is by using standard deviation. So now i am going to pull up a different chart. This chart includes indicators and things regarding standard deviation. We are going to use a 180 day four hour time frame in a one year, one day, time frame.

If you don't have access to some of the stuff, then you are definitely at a disadvantage. Okay, so let's redo some of this, you see where the price action lows were for the past couple days right. So that's more of the intermediate or i guess you could say, short-term support of this market. Okay, that people view in regards to price action.

So this is where most people are viewing support in the market. I myself am also viewing this dotted white line as support in the market, okay, which many people would not even know exists. We were also looking at this level in the market as support and a target for the day. If the market falls out again, we use the one year, one day and 180 days, so we're also going to come to the one year.

One day we're going to mark off this level, you might be asking: how are you coming up with these levels and using these levels? Really it's very simple: whatever levels are closest to your stock when using standard deviation just map those out and most likely, the stock will try to trade around through to and above or below any one of those ones you put on your chart so today the way That this chart really reads going back to a chart with no indicators, so the way that this really reads is the stock has dropped below long term price action support. We then fall into. What's called half deviation support. We then bounce back up to retest the price action breakdown.

So if price remains below this, we could start downtrending. We will then do a breakdown once the statistical deviation levels have fully broken. You will see then, and only then we have our big snap. Then the market, you will see eventually trends all the way out to what the levels on the downside so remember when we look at a one year.

Let me delete this a one year. One day chart on ro sorry, never mind 180 day. Four hour chart. You see this red line.

Okay, that is what's called a negative two deviation. Trendline aka target aka magnet aka support for the day. So that's the problem with many traders is they can visualize, where support's at by looking left at the stock chart and picking a previous price action level, they have a hard time figuring out, where support will be when a level gives out that you typically find by Standard deviation, or in the vice versa, when a stock breaks out traders don't know how long to hold, because they don't know where it should go too many times which many times it will be a standard deviation, just like you saw here, roku breaks. This goes down to red trending level.

If you don't have that on your chart many times you will be confused as to why maybe it bottomed where it bottomed. You will then probably look left at the chart to try to make up a justification as to why it bottomed where it bottomed it bottomed today, roku it bottomed today, because it went to what's called a negative 2 deviation. If you're looking left at the chart to find price action to justify the bottom, you're always going to struggle in the future, and that, ladies and gentlemen, is really all we have for you here today on this video hope. You guys like that hope.

You learned something new everybody take care, have a great rest of your day and, of course, we will uh we'll see in the next video.